View Filing Data

Interchange and network fees

$ 323,508

$ 262,571

$ 199,644

Operating expenses

214,543

189,112

140,998

Other costs of services

40,314

28,798

21,934

Selling general and administrative

40,585

27,194

20,393

Depreciation and amortization

11,839

10,085

9,898

Change in fair value of contingent consideration

3,866

(218)

2,458

Total operating expenses

311,147

254,971

195,681

Change in fair value of warrant liability

12,361

7,600

3,963

Other expenses

Interest expense, net

8,498

6,936

5,900

8,487

(415)

(28)

Other income

(59)

Total other expenses

16,985

(6,521)

5,813

Provision for income taxes

(4,624)

1,079

(1,850)

337

177

243

Net (loss) income

(4,961)

902

(2,093)

Net income attributable to non-controlling interest

1,937

Net (loss) income attributable to i3 Verticals, Inc.

$ (6,898)

$ 902

$ (2,093)

Net income per share available to Class A common stockholders(1):

Basic (in USD per share)

^[1]

$ 0.08

Diluted (in USD per share)

^[1]

$ 0.08

Weighted average shares of Class A common stock outstanding(1):

Basic (shares)

^[1]

8,812,630

Diluted (shares)

^[1]

26,873,878

[1]	1.Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions. See Note 1 for a description of the Reorganization Transactions. See Note 18 for the calculation of income per common share.

Condensed Consolidated Statement of Changes in Members'/Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A	Redeemable Class A	Class P	Class B	Common Stock	Common Stock Class A	Common Stock Class B	Additional Paid-in Capital	Accumulated Members' Deficit/Retained Earnings	Accumulated Members' Deficit/Retained Earnings Class A	Accumulated Members' Deficit/Retained Earnings Redeemable Class A	Noncontrolling Interest
Members' Equity, beginning at Sep. 30, 2015	$ (17,611)					$ 300	$ 7,753			$ (25,664)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred return on Class A Units and Redeemable Class A Units	(764)	$ (1,080)	$ (639)				(1,080)			(764)	$ 1,080	$ (639)
Issuance of common stock	665	11,000				665	11,000
Members' Equity, ending at Sep. 30, 2016	(9,510)					965	19,765			(30,240)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity issuance costs	(68)						(68)
Net loss attributable to non-controlling interests	0
Net loss (income)	(2,093)									(2,093)
Net income (loss) attributable to i3 Verticals, Inc.	(2,093)
Preferred return on Class A Units and Redeemable Class A Units	(756)	(2,223)	$ (701)				2,223			(756)	$ (2,223)	$ (701)
Issuance of common stock	275	13,000				275	13,000
Members' Equity, ending at Sep. 30, 2017	3,146			$ 0		1,240	34,924			(33,018)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity issuance costs	(64)						$ (64)
Net loss attributable to non-controlling interests	0
Net loss (income)	902									902
Net income (loss) attributable to i3 Verticals, Inc.	902
Preferred return on Class A Units and Redeemable Class A Units		$ (2,522)
Issuance of common stock						$ 104
Purchase of common units in i3 Verticals, LLC from selling shareholder (shares)													(4,635,000)
Net loss attributable to non-controlling interests	(1,937)
Net loss (income)	(4,961)
Net income (loss) attributable to i3 Verticals, Inc.	(6,898)
Common Stock, Shares, Outstanding, ending at Sep. 30, 2018		9,112,042			17,213,806		9,112,042	17,213,806
Stockholders' Equity, ending at Sep. 30, 2018	$ 112,198						$ 1	$ 2	$ 38,562	$ 736			$ 72,897

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net (loss) income	$ (4,961)	$ 902	$ (2,093)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	11,839	10,085	9,898
Equity-based compensation	1,567	0	0
Provision for doubtful accounts	14	216	48
Amortization of deferred financing costs	1,072	453	443
Loss on disposal of assets	5	44	4
(Benefit from) provision for deferred income taxes	(682)	56	(3)
Non-cash change in fair value of warrant liability	8,487	(415)	(28)
Increase (decrease) in non-cash contingent consideration expense from original estimate	3,866	(218)	2,458
Changes in operating assets:
Accounts receivable	(2,321)	(2,432)	(1,182)
Prepaid expenses and other current assets	1,017	305	(563)
Other assets	(3,182)	9	(142)
Changes in operating liabilities:
Accounts payable	1,172	(384)	509
Accrued expenses and other current liabilities	2,040	1,515	806
Deferred revenue	(123)	388	548
Other long-term liabilities	362	40	(32)
Contingent consideration paid in excess of original estimates	(2,092)	(2,234)	(666)
Net cash provided by operating activities	18,080	8,330	10,005
Cash flows from investing activities:
Expenditures for property and equipment	(2,217)	(636)	(862)
Expenditures for capitalized software	(1,092)	(1,452)	(1,992)
Purchases of merchant portfolios and residual buyouts	(1,207)	(1,632)	0
Acquisitions of businesses, net of cash acquired	(32,362)	(44,175)	(32,277)
Acquisition of other intangibles	(1,177)	(8)	(23)
Net cash used in investing activities	(38,055)	(47,903)	(35,154)
Cash flows from financing activities:
Proceeds from revolving credit facility	27,250	56,500	55,600
Payments of revolving credit facility	(95,600)	(23,900)	(33,600)
Proceeds from notes payable to banks	24,671	0	6,500
Payments of notes payable to banks	(5,000)	(5,000)	(2,800)
Payment of notes payable to Mezzanine Lenders	(10,486)	0	0
Payment of unsecured notes payable to related and unrelated creditors	(5,489)	0	0
Payment of debt issuance costs	(266)	(254)	(876)
Proceeds from the exercise of Mezzanine Warrants and Junior Subordinated Notes Warrants	270	0	0
Proceeds from issuance of Class A common	89,506	12,500	9,000
Payments for Common Units in i3 Verticals, LLC from selling shareholder	(4,635)		0
Payment of equity issuance costs for 2017 Class A unit issuance	0	(64)	(68)
Cash paid for contingent consideration	(977)	(966)	(4,776)
Required distributions to members for tax obligations	0	(1,464)	(56)
Net cash provided by (used in) financing activities	19,244	37,352	28,924
Net (decrease) increase in cash, cash equivalents and restricted cash	(731)	(2,221)	3,775
Cash, cash equivalents and restricted cash at beginning of period	1,968	4,189	414
Cash, cash equivalents and restricted cash at end of period	1,237	1,968	4,189
Supplemental disclosure of cash flow information:
Cash paid for interest	7,881	6,288	5,386
Cash paid for income taxes	$ 483	$ 837	$ 21

Organization and Operations	12 Months Ended
Organization and Operations	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	ORGANIZATION AND OPERATIONS i3 Verticals, Inc. (the “Company”) was formed as a Delaware corporation on January 17, 2018. The Company was formed for the purpose of completing an initial public offering (“IPO”) of its Class A common stock and other related transactions in order to carry on the business of i3 Verticals, LLC and its subsidiaries. i3 Verticals, LLC was founded in 2012 and delivers seamlessly integrated payment and software solutions to small- and medium-sized businesses (“SMBs”) and organizations in strategic vertical markets. The Company’s headquarters are in Nashville, Tennessee, with operations throughout the United States. Unless the context otherwise requires, references to “we,” “us,” “our,” “i3 Verticals” and the “Company” refer to i3 Verticals, Inc. and its subsidiaries, including i3 Verticals, LLC. Initial Public Offering On June 25, 2018, the Company completed the IPO of 7,647,500 shares of its Class A common stock at a public offering price of $13.00 per share. The Company received approximately $92.5 million of net proceeds, after deducting underwriting discounts and commissions, which the Company used to purchase newly issued common units from i3 Verticals, LLC (the “Common Units”), and Common Units from a selling Common Unit holder, in each case at a price per Common Unit equal to the price per share paid by the underwriters for shares of the Company's Class A common stock in the IPO. Reorganization Transactions In connection with the IPO, the Company completed the following transactions (the “Reorganization Transactions”): •i3 Verticals, LLC amended and restated its existing limited liability company agreement to, among other things, (1) convert all existing Class A units, common units (including common units issued upon the exercise of existing warrants) and Class P units of ownership interest in i3 Verticals, LLC into either Class A voting common units of i3 Verticals, LLC (such holders of Class A voting common units referred to herein as the “Continuing Equity Owners”) or Class B non-voting common units of i3 Verticals, LLC (such holders of Class B non-voting common units referred to herein as the “Former Equity Owners”), and (2) appoint i3 Verticals, Inc. as the sole managing member of i3 Verticals, LLC upon its acquisition of Common Units in connection with the IPO; •the Company amended and restated its certificate of incorporation to provide for, among other things, Class A common stock and Class B common stock; •i3 Verticals, LLC and the Company consummated a merger among i3 Verticals, LLC, i3 Verticals, Inc. and a newly formed wholly-owned subsidiary of i3 Verticals, Inc. (“MergerSub”) whereby: (1) MergerSub merged with and into i3 Verticals, LLC, with i3 Verticals, LLC as the surviving entity; (2) Class A voting common units converted into newly issued Common Units in i3 Verticals, LLC together with an equal number of shares of Class B common stock of i3 Verticals, Inc., and (3) Class B non-voting common units converted into Class A common stock of i3 Verticals, Inc. based on a conversion ratio that provided an equitable adjustment to reflect the full value of the Class B non-voting common units; and •the Company issued shares of its Class A common stock pursuant to a voluntary private conversion of certain subordinated notes (the “Junior Subordinated Notes”) by certain related and unrelated creditors of i3 Verticals, LLC. Following the completion of the IPO and Reorganization Transactions, the Company became a holding company and its principal asset is the Common Units in i3 Verticals, LLC that it owns. i3 Verticals, Inc. operates and controls all of i3 Verticals, LLC's operations and, through i3 Verticals, LLC and its subsidiaries, conducts i3 Verticals, LLC's business. i3 Verticals, Inc. has a minority economic interest in i3 Verticals, LLC. •As of September 30, 2018, i3 Verticals, Inc. owned 34.6% of the economic interest in i3 Verticals, LLC. •As of September 30, 2018, the Continuing Equity Owners owned Common Units in i3 Verticals, LLC representing approximately 65.4% of the economic interest in i3 Verticals, LLC, shares of Class A common stock in the Company representing approximately 0.9% of the economic interest and voting power in the Company, and shares of Class B common stock in i3 Verticals, Inc., representing approximately 65.4% of the voting power in the Company. •The Continuing Equity Owners who own Common Units in i3 Verticals, LLC may redeem at each of their options (subject in certain circumstances to time-based vesting requirements) their Common Units for, at the election of i3 Verticals, LLC, cash or newly-issued shares of the Company's Class A common stock. •Combining the Class A common stock and Class B common stock, the Continuing Equity Holders hold approximately 66.3% of the economic interest and voting power in i3 Verticals, Inc. 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. As the Reorganization Transactions are considered transactions between entities under common control, the financial statements retroactively reflect the accounts of i3 Verticals, LLC for periods prior to the IPO and Reorganization Transactions.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the reporting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”).

Principles of Consolidation

These consolidated financial statements include the accounts of the Company and its subsidiary companies. All significant intercompany accounts and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

For purposes of reporting cash flows, the Company considers cash on hand, checking accounts, and savings accounts to be cash and cash equivalents. At times, the balance in these accounts may exceed federal insured limits. Cash equivalents are defined as financial instruments readily transferrable into cash with an original maturity less than 90 days.

Restricted Cash

Restricted cash represents funds held-on-deposit with processing banks pursuant to agreements to cover potential merchant losses. It is presented as long-term assets on the accompanying consolidated balance sheets since the related agreements extend beyond the next twelve months. Following the adoption of ASU 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230), the Company includes restricted cash along with the cash and cash equivalents balance for presentation in the consolidated statements of cash flows. The reconciliation between the consolidated balance sheet and the consolidated statement of cash flows is as follows:


	September 30, 2018		September 30, 2017
Cash and cash equivalents on consolidated balance sheet	$	572	$	955
Restricted cash	665		1,013
Total cash, cash equivalents and restricted cash on consolidated statement of cash flows	$	1,237	$	1,968

Accounts Receivable and Credit Policies

Accounts receivable consist primarily of uncollateralized credit card processing residual payments due from processing banks requiring payment within thirty days following the end of each month. Accounts receivable also include amounts due from the sales of the Company’s technology solutions to its customers. The carrying amount of accounts receivable is reduced by an allowance for doubtful accounts, if necessary, which reflects management’s best estimate of the amounts that will not be collected. The allowance is estimated based on management’s knowledge of its customers, historical loss experience and existing economic conditions. Accounts receivable and the allowance are written-off when, in management’s opinion, all collection efforts have been exhausted. The Company’s allowance for doubtful accounts was $205 and $211 as of September 30, 2018 and 2017, respectively; however, actual write-offs may exceed estimated amounts.

Settlement Assets and Obligations

Settlement assets and obligations result when funds are temporarily held or owed by the Company on behalf of merchants, consumers, schools, and other institutions. Timing differences, interchange expense, merchant reserves and exceptional items cause differences between the amount received from the card networks and the amount funded to counterparties. These balances arising in the settlement process are reflected as settlement assets and obligations on the accompanying consolidated balance sheets. With the exception of merchant reserves, settlement assets or settlement obligations are generally collected and paid within one to four days. As of September 30, 2018 and 2017, settlement assets and settlement obligations were both $863 and $5,196, respectively.

Inventories

Inventories consist of point-of-sale equipment to be sold to customers and are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Inventories were $930 and $454 at September 30, 2018 and 2017, respectively, and are included within prepaid expenses and other current assets on the accompanying consolidated balance sheets.

Property and Equipment

Property and equipment are stated at cost or, if acquired through a business combination or an asset acquisition, fair value at the date of acquisition. Depreciation and amortization are provided over the assets’ estimated useful lives (or, if obtained in connection with a business acquisition, over their estimated remaining useful lives) using the straight-line method, except for leasehold improvements, which are depreciated over the shorter of the estimated useful lives of the assets or the lease term.

Expenditures for maintenance and repairs are expensed when incurred. Expenditures for renewals or betterments are capitalized. Management reviews long-lived assets for impairment when events or changes in

circumstances indicate the carrying amount of an asset may not be recoverable. The Company recognizes impairment when the sum of undiscounted estimated future cash flows expected to result from the use of the asset is less than the carrying value of the asset. There were no impairment charges during the years ended September 30, 2018, 2017 and 2016.

Capitalized Software

Development costs for software to be sold or leased to customers are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. Software development costs are amortized using the greater of the straight-line method or the usage method over its estimated useful life, which is generally estimated to be three years.

Software development costs may become impaired in situations where development efforts are abandoned due to the viability of a planned project becoming doubtful or due to technological obsolescence of a planned software product. Management evaluates the remaining useful lives and carrying values of capitalized software at least annually or when events and circumstances warrant such a review, to determine whether significant events or changes in circumstances indicate that impairment in value may have occurred. To the extent estimated net realizable values, which are estimated to equal future undiscounted cash flows, exceed the carrying value, no impairment is necessary. If estimated net realizable values are less than the carrying values, an impairment charge is recorded. Impairment charges during the years ended September 30, 2018, 2017 and 2016 were nominal.

Identifiable software technology intangible assets resulting from acquisitions are amortized using the straight-line method over periods not exceeding their remaining estimated useful lives. GAAP requires that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment. Acquisition technology intangibles’ net book values are included in capitalized software, net in the accompanying consolidated balance sheets.

Acquisitions

Business acquisitions have been recorded using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The fair value of merchant relationships and non-compete assets acquired is identified using the Income Approach. The fair value of trade names acquired is identified using the Relief from Royalty Method. The fair value of deferred revenue is identified using the Adjusted Fulfillment Cost Method. After the purchase price has been allocated, goodwill is recorded to the extent the total consideration paid for the acquisition, including the acquisition date fair value of contingent consideration, if any, exceeds the sum of the fair values of the separately identifiable acquired assets and assumed liabilities. Acquisition costs for business combinations are expensed when incurred and recorded in selling general and administrative expenses in the accompanying consolidated statements of operations.

Acquisitions not meeting the accounting criteria to be accounted for as a business combination are accounted for as an asset acquisition. An asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition.

The operating results of an acquisition are included in the consolidated statements of operations from the date of such acquisition. Acquisitions completed during the year ended September 30, 2018 contributed $24,568 and $1,782 of revenue and net income, respectively, to the results in the Company's consolidated statements of operations for the year then ended.

Goodwill

In accordance with ASC 350, Intangibles—Goodwill and Other, the Company tests goodwill for impairment for each reporting unit on an annual basis, or when events or circumstances indicate the fair value of a reporting unit is below its carrying value.

The Company’s goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. The goodwill generated from the business combinations is primarily related to the value placed on the employee workforce and expected synergies. Goodwill is tested for impairment at least annually in the fourth quarter and between annual tests if there are indicators of impairment that suggest a decline in the fair value of a reporting unit. Judgment is involved in determining if an indicator or change in circumstances relating to impairment has occurred. Such changes may include, among others, a significant decline in expected future cash flows, a significant adverse change in the business climate, and unforeseen competition. No goodwill impairment charges were recognized during the years ended September 30, 2018, 2017 and 2016.

The Company has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually and may vary by reporting unit. Factors the Company considers in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of the Company’s reporting units, events or changes affecting the composition or carrying amount of the net assets of its reporting units, sustained decrease in its share price, and other relevant entity specific events. If the Company determines not to perform the qualitative assessment or if it determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying value, then the Company performs a quantitative test for that reporting unit. The fair value of each reporting unit is compared to the reporting unit’s carrying value, including goodwill. Subsequent to the adoption on January 1, 2017 of Accounting Standards Update (“ASU”) No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, if the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment equal to the excess carrying value, not to exceed the total amount of goodwill allocated to that reporting unit.

For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.”

The Company has determined that it has nine reporting units. For each of the years ended September 30, 2018, 2017 and 2016 the Company performed a quantitative assessment for each of its reporting units. The Company determined that none of the reporting units were impaired.

Intangible Assets

Intangible assets include acquired merchant relationships, residual buyouts, referral agreements, trademarks, tradenames, website development costs and non-compete agreements. Merchant relationships represent the fair value of customer relationships purchased by the Company. Residual buyouts represent the right to not have to pay a residual to an independent sales agent related to certain future transactions with the agent’s referred merchants. Referral agreements represent the right to exclusively obtain referrals from a partner for their customers' credit card processing services.

The Company amortizes definite lived identifiable intangible assets using a method that reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise utilized. The

estimated useful lives of the Company’s customer-related intangible assets approximate the expected distribution of cash flows, whether straight-line or accelerated, generated from each asset. The useful lives of contract-based intangible assets are equal to the terms of the agreement.

Management evaluates the remaining useful lives and carrying values of long-lived assets, including definite lived intangible assets, at least annually, or when events and circumstances warrant such a review, to determine whether significant events or changes in circumstances indicate that a change in the useful life or impairment in value may have occurred. There were no impairment charges during the years ended September 30, 2018, 2017 and 2016.

Income Taxes

i3 Verticals, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from i3 Verticals, LLC based on i3 Verticals, Inc.'s economic interest in i3 Verticals, LLC. i3 Verticals, LLC's members, including the Company, are liable for federal, state and local income taxes based on their share of i3 Verticals, LLC's pass-through taxable income. i3 Verticals, LLC is not a taxable entity for federal income tax purposes, but is subject to and reports entity level tax in both Tennessee and Texas. In addition, certain subsidiaries of i3 Verticals, LLC are corporations that are subject to state and federal income taxes.

The amount provided for state income taxes is based upon the amounts of current and deferred taxes payable or refundable at the date of the consolidated financial statements as a result of all events recognized in the financial statements as measured by the provisions of enacted tax laws.

Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has no uncertain tax positions that qualify for either recognition or disclosure in the consolidated financial statements.

Valuation of Contingent Consideration

On occasion, the Company may have acquisitions which include contingent consideration. Accounting for business combinations requires the Company to estimate the fair value of any contingent purchase consideration at the acquisition date. For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.” Changes in estimates regarding the fair value contingent purchase consideration are reflected as adjustments to the related liability and recognized within operating expenses in the consolidated statements of operations. Short and long-term contingent liabilities are presented within accrued expenses and other current liabilities and other long-term liabilities on the Company's consolidated balance sheets, respectively.

Classification of Financial Instruments

The Company classifies certain financial instruments issued as either equity or as liabilities. Determination of classification is based upon the underlying properties of the instrument. See specific discussion regarding the nature of instruments issued, the presentation on the consolidated financial statements and the related valuation method applied in Notes 9, 11, 12, and 13.

Revenue Recognition and Deferred Revenue

Revenue is recognized when it is realized or realizable and earned, in accordance with ASC 605, Revenue Recognition (“ASC 605”). Recognition occurs when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience.

More than 85% of the Company's gross revenue for the years ended September 30, 2018, 2017 and 2016 is derived from volume-based payment processing fees (“discount fees”) and other related fixed transaction or service fees. The remainder is comprised of sales of software licensing subscriptions, ongoing support, and other POS-related solutions the Company provides to its clients directly and through its processing bank relationships.

Discount fees represent a percentage of the dollar amount of each credit or debit transaction processed. Discount fees are recognized at the time the merchants’ transactions are processed. The Company follows the requirements of ASC 605-45 Revenue Recognition—Principal Agent Considerations, in determining its merchant processing services revenue reporting. Generally, where the Company has control over merchant pricing, merchant portability, credit risk and ultimate responsibility for the merchant relationship, revenues are reported at the time of sale on a gross basis equal to the full amount of the discount charged to the merchant. This amount includes interchange fees paid to card issuing banks and assessments paid to payment card networks pursuant to which such parties receive payments based primarily on processing volume for particular groups of merchants. Revenues generated from merchant portfolios where the Company does not have control over merchant pricing, liability for merchant losses or credit risk or rights of portability are reported net of interchange and other fees.

Revenues are also derived from a variety of fixed transaction or service fees, including authorization fees, convenience fees, statement fees, annual fees, and fees for other miscellaneous services, such as handling chargebacks. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. Revenue from the sale of equipment is recognized upon transfer of ownership and delivery to the customer, after which there are no further performance obligations.

Revenues from sales of the Company’s software licensing subscriptions are recognized when they are realized or realizable and earned. Contractual arrangements are evaluated for indications that multiple element arrangements may exist, including instances where more-than-incidental software deliverables are included. Arrangements may contain multiple elements, such as hardware, software products, maintenance, and professional installation and training services. Revenues are allocated to each element based on the selling price hierarchy. The selling price for a deliverable is based on vendor specific objective evidence of selling price, if available, third party evidence, or estimated selling price. The Company establishes estimated selling price, based on the judgment of the Company's management, considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. In arrangements with multiple elements, the Company determines allocation of the transaction price at inception of the arrangement based on the relative selling price of each unit of accounting.

In multiple element arrangements where more-than-incidental software deliverables are included, the Company applies the residual method to determine the amount of software license revenues to be recognized. Under the residual method, if fair value exists for undelivered elements in a multiple-element arrangement, such fair value of the undelivered elements is deferred with the remaining portion of the arrangement consideration recognized upon delivery of the software license or services arrangement. The Company allocates the fair value of each element of a software-related multiple-element arrangement based upon its fair value as determined by vendor specific objective evidence of selling price, with any remaining amount allocated to the software license. If evidence of the fair value cannot be established for the undelivered elements of a software arrangement, then the entire amount of revenue under the arrangement is deferred until these elements have been delivered or objective evidence can be established. These amounts, if any, are included in deferred revenue in the consolidated balance sheets. Revenues related to software licensing subscriptions, maintenance or other support services with terms greater than one month are recognized ratably over the term of the agreement.

Revenues from sales of the Company’s combined hardware and software element are recognized when they are realized or realizable and earned which has been determined to be upon the delivery of the product. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. The Company’s training, installation, and repair services are recognized as revenue as these services are performed.

Deferred revenue represents amounts billed to customers by the Company for services contracts. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the consolidated balance sheets.

Interchange and Network Fees and Other Cost of Services

Interchange and network fees consist primarily of fees that are directly related to discount fee revenue. These include interchange fees paid to issuers and assessment fees payable to card associations, which are a percentage of the processing volume the Company generates from Visa and Mastercard, as well as fees charged by card-issuing banks. Other costs of services include costs directly attributable to processing and bank sponsorship costs, which may not be based on a percentage of volume. These costs also include related costs such as residual payments to sales groups, which are based on a percentage of the net revenues generated from merchant referrals. In certain merchant processing bank relationships the Company is liable for chargebacks against a merchant equal to the volume of the transaction. Losses resulting from chargebacks against a merchant are included in other cost of services on the accompanying consolidated statement of operations. The Company evaluates its risk for such transactions and estimates its potential loss from chargebacks based primarily on historical experience and other relevant factors. The reserve for merchant losses is included within accrued expenses and other current liabilities on the accompanying consolidated balance sheets. The cost of equipment sold is also included in other cost of services. Interchange and other costs of services are recognized at the time the merchant's transactions are processed.

The Company accounts for all governmental taxes associated with revenue transactions on a net basis.

Advertising and Promotion Costs

Advertising and promotion costs are expensed as incurred. Advertising expense was $765, $654 and $413 for the years ended September 30, 2018, 2017 and 2016, respectively, and is included in selling, general and administrative expenses in the Consolidated Statements of Operations.

Equity-based Compensation

The Company accounts for grants of equity awards to employees in accordance with ASC 718, Compensation—Stock Compensation. This standard requires compensation expense to be measured based on the estimated fair value of the share-based awards on the date of grant and recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period.

Equity-based compensation was $1,567 for the year ended September 30, 2018. There was no equity-based compensation for the years ended September 30, 2017 and 2016.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the value of purchase consideration paid and identifiable assets acquired and assumed in acquisitions, goodwill and intangible asset impairment review, warrant valuation, revenue recognition for multiple element arrangements, loss reserves, assumptions used in the calculation of equity-based compensation and in the calculation of income taxes, and certain tax assets and liabilities as well as the related valuation allowances. Actual results could differ from those estimates.

Below is a summary of the Company’s critical accounting estimates for which the nature of management’s assumptions are material due to the levels of subjectivity and judgment necessary to account for highly uncertain

matters or the susceptibility of such matters to change, and for which the impact of the estimates and assumptions on financial condition or operating performance is material.

Contingent Consideration in Acquisitions

On occasion, the Company may have acquisitions that include contingent consideration. Accounting for business combinations requires the Company to estimate the fair value of any contingent purchase consideration at the acquisition date. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation.

The contingent consideration is revalued each period until it is settled. Management reviews the historical and projected performance of each acquisition with contingent consideration and uses an income probability method to revalue the contingent consideration. The revaluation requires management to make certain assumptions and represent management's best estimate at the valuation date. The probabilities are determined based on a management review of the expected likelihood of triggering events that would cause a change in the contingent consideration paid.

Goodwill

The Company tests goodwill for impairment using a fair value approach at least annually, absent some triggering event that would require an interim impairment assessment. Absent any impairment indicators, the Company performs its goodwill impairment testing as of July 1 each year.

Significant estimates and assumptions are used in the Company’s goodwill impairment review and include the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units and determining the fair value of each reporting unit. The Company’s assessment of qualitative factors involves significant judgments about expected future business performance and general market conditions. In a quantitative assessment, the fair value of each reporting unit is determined based on a combination of techniques, including the present value of future cash flows, applicable multiples of competitors and multiples from sales of like businesses, and requires management to make estimates and assumptions regarding discount rates, growth rates and the Company's future long-term business plans. Changes in any of these estimates or assumptions could materially affect the determination of fair value and the associated goodwill impairment charge for each reporting unit.

Warrant Valuation

As of September 30, 2017, there were in the aggregate 1,423,688 of warrants (the “Mezzanine Warrants”) outstanding and exercisable to purchase common units in i3 Verticals, LLC related to the issuance of the Mezzanine Notes. The Mezzanine Warrants were mandatorily redeemable and embody a conditional obligation to redeem the instrument by a transfer of assets. The Mezzanine Warrants were remeasured at each reporting date through the settlement of the instrument and changes in value were reflected in earnings.

The Company used the Black-Scholes option pricing model to determine the fair market value of the Mezzanine Warrants at each reporting period. The option pricing model required the input of highly subjective assumptions, including the estimated enterprise value of the Company, expected term of the warrants, expected volatility, risk-free interest rates and discount for lack of marketability. To determine the fair value of the Mezzanine Warrants, the Company engaged an outside consultant to prepare a valuation of the unit price at each reporting date, using information provided by management and information obtained from private and public sources.

The Company used an expected volatility based on the historical volatilities of a group of guideline companies and estimated a liquidity event in June 2018 to determine the term of the warrants. The risk-free interest rates were obtained from publicly available U.S. Treasury yield curve rates. The discount for lack of marketability, if any, was determined using the Finnerty Model.

Based on the Company’s analysis, the most highly sensitive input in the Company's option pricing model related to management’s forecasted earnings. For example, if management’s forecasted earnings increased, the Company would have recorded additional losses from the change in fair value of warrant liability. Conversely, if management’s forecasted earnings decreased, the Company would have recorded a gain from change in fair value of warrant liability. Other inputs such as expected volatility and the risk free interest rate had a less material impact of the valuation of the warrant liability.

The change in fair value of the warrant liabilities was an increase of $8,487 and a reduction of $415 and $28 for the years ended September 30, 2018, 2017 and 2016, respectively.

The fair market value of the warrants was $767 as of September 30, 2017. On June 25, 2018, in conjunction with the Reorganization Transactions described in Note 1, all existing Mezzanine Warrants were exercised for common units in i3 Verticals, LLC. See Note 9 for additional discussion of the Mezzanine Warrants.

Recently Issued Accounting Pronouncements

In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2021. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820). The amendments in ASU 2018-13 provide clarification and modify the disclosure requirements on fair value measurement in Topic 820, Fair Value Measurement. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2021. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements.

In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718). The amendments in ASU 2018-07 expand the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of ASU No. 2014-09 (defined below). The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements.

In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting (Topic 718). The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim

period. The Company has adopted this standard as of April 1, 2018. There was no impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). The amendments in ASU 2016-18 require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The Company has adopted this standard as of July 1, 2018 and has included restricted cash along with the cash and cash equivalents balance for presentation on the consolidated statement of cash flows. The reconciliation between the consolidated balance sheet and the consolidated statements of cash flows is disclosed in the restricted cash section of this footnote.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230). The update clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The Company has adopted this standard as of July 1, 2018. There was no impact on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). The update requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the statement of operations. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether a benefit reduces taxes payable in the current period. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2018. The Company has early adopted this standard as of July 1, 2018. There was no impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU amends the existing guidance by recognizing all leases, including operating leases, with a term longer than twelve months on the balance sheet and disclosing key information about the lease arrangements. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2020. The update requires modified retrospective transition, with the option to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment and elect various practical expedients. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASU No. 2014-09”). The ASU supersedes the revenue recognition requirements in ASC 605. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized, based upon the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount

that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard, as amended, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The amendment allows companies to use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company has formed a project team and is currently assessing the impact of the adoption of this principle on the Company’s consolidated financial statements.

Credit Risk and Other Concentrations	12 Months Ended
Credit Risk and Other Concentrations	Sep. 30, 2018
Risks and Uncertainties [Abstract]
Credit Risk and Other Concentrations	CREDIT RISK AND OTHER CONCENTRATIONS The Company places its cash with high credit quality financial institutions which provide Federal Deposit Insurance Corporation insurance. The Company performs periodic evaluations of the relative credit standing of these institutions and does not expect any losses related to such concentrations. The Company’s revenues are earned by processing transactions for merchant businesses and other institutions under contract with the Company. The Company utilizes the funds settlement services of primarily six processing banks, from which most accounts receivable are remitted monthly. No single merchant accounted for more than 1.0% of the Company's revenue during the years ended September 30, 2018, 2017 and 2016. The Company believes that the loss of any single merchant would not have a material adverse effect on the Company's financial condition or results of operations. The Company uses third party payment processors, three of which facilitate more than 10% of our processing revenues for the years ended September 30, 2018, 2017, and 2016.

Acquisitions

12 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

During the years ended September 30, 2018, 2017 and 2016 the Company acquired the following intangible assets and businesses:

Residual Buyouts

From time to time, the Company acquires future commission streams from sales agents in exchange for an upfront cash payment. This results in an increase in overall gross processing volume to the Company. The residual buyouts are treated as asset acquisitions, resulting in recording a residual buyout intangible asset at cost on the date of acquisition. These assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are expected to be utilized over their estimated useful lives.

During the years ended September 30, 2018 and 2017, the Company purchased $1,567 and $476, respectively, in residual buyouts using a combination of cash on hand and borrowings on the Company's revolving line of credit. The acquired residual buyout intangible assets have an estimated amortization period of two years.

Merchant Relationships Portfolio Purchase

Effective March 31, 2017, the Company acquired a payment portfolio in an asset acquisition. The acquisition was completed to expand the Company’s merchant base. Total purchase consideration was $1,156, including $56 in acquisition-related costs, which was funded using a combination of cash on hand and long-term debt. The purchase consideration of the acquired assets was allocated based on the relative fair values to the merchant relationships intangible asset. The acquired merchant relationships intangible asset has an estimated amortization period of fifteen years.

Referral Agreements

From time to time, the Company enters into referral agreements with agent banks or other organizations (“referral partner”). Under these agreements, the referral partner exclusively refers its customers to the Company for credit card processing services. Total consideration paid for these agreements in the year ended September 30, 2018 was $815, all of which was settled with cash on hand. Because the Company pays an up-front fee to compensate the referral partner, the amount is treated as an asset acquisition in which the Company has acquired an intangible stream of referrals. This asset is amortized over a straight-line period. The weighted-average amortization period for all intangibles acquired is five years.

2016 Business Combinations

During the year ended September 30, 2016, the Company completed the acquisitions of four businesses, including Axia Payments, LLC, and three additional unrelated businesses which were considered individually immaterial but collectively material.

Axia Payments, LLC

Effective April 1, 2016, the Company acquired certain assets of Axia Payments, LLC (“Axia”), a privately-held company engaged in business similar to the Company. The acquisition was completed to increase the Company's revenue and merchant base and to provide another strategic processing partner. Net purchase consideration was $28,565, which includes $665 of common units issued to the seller and cash payment which was funded using proceeds from the issuance of long-term debt.

The goodwill associated with the acquisition is deductible for tax purposes. The acquired merchant relationships intangible asset has an estimated amortization period of fifteen years. The non-compete agreement and trade name have an amortization period of three years. The weighted-average amortization period for all intangibles acquired is fourteen years.

Acquisition-related costs for Axia were $646 and were expensed as incurred.

Other 2016 Business Combinations

The Company completed the acquisitions of the three other businesses to expand the Company’s revenue within the integrated point-of-sale market and to provide additional service to the Company’s customers. Total purchase consideration for the three acquisitions was $5,857, including $4,377 in cash and revolving line of credit proceeds and $1,480 of contingent cash consideration.

The goodwill associated with the acquisitions of the three other businesses is tax-deductible. The weighted-average amortization period for all intangibles acquired is fourteen years. Acquisition-related costs for the three other businesses amounted to approximately $201 and were expensed as incurred.

Certain provisions in the purchase agreement for one of the three other businesses provided for additional consideration of up to $3,250, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreement, through December 2018. The Company determined the acquisition date fair value of the liability for the contingent consideration based on a discounted cash flow analysis. In each subsequent reporting period, the Company reassesses its current estimates of performance relative to the targets and adjusts the contingent liability to its fair value through earnings. See additional disclosures in Note 11.

Summary of 2016 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2016 were as follows:


	Axia		Other		Total
Cash and cash equivalents	$	—	$	4	$	4
Inventories	—		104		104
Property and equipment	—		67		67
Capitalized software	10		378		388
Acquired merchant relationships	15,100		1,833		16,933
Non-compete agreements	20		98		118
Trade name	1,300		95		1,395
Goodwill	12,089		3,776		15,865
Other assets	46		59		105
Total assets acquired	28,565		6,414		34,979

Deferred revenue, current	—		557		557
Net assets acquired	$	28,565	$	5,857	$	34,422

2017 Business Combinations

During the year ended September 30, 2017, the Company completed the acquisitions of three businesses, including Fairway Payments, LLC, and two additional unrelated businesses which were considered individually immaterial but collectively material.

Fairway Payments, LLC

Effective August 1, 2017, the Company acquired certain assets and assumed certain liabilities of Fairway Payments, LLC (“Fairway”), a privately-held company engaged in business similar to the Company. The acquisition was completed to add independent software vendor distribution partners, to increase the Company's presence in the healthcare and non-profit verticals and to provide another vendor for the Company's payment processing services. Net purchase consideration was $39,275, which includes $275 of common units issued to the seller and cash payment which was funded using proceeds from the issuance of long-term debt and from proceeds from the issuance of Class A units in i3 Verticals, LLC.

The goodwill associated with the acquisition is not deductible for tax purposes. The acquired relationships contracts intangible asset has an estimated amortization period of fifteen years. The non-compete agreement and trade name have an amortization period of three years. The weighted-average amortization period for all intangibles acquired is fifteen years.

Acquisition-related costs for Fairway were $284 and were expensed as incurred.

Fairway had a defined benefit pension plan (“Fairway Defined Benefit Plan”). The Fairway Defined Benefit Plan was frozen as of the date of acquisition and, per the terms of the agreement, the funding obligation of the plan is the sole responsibility of the selling party. Accordingly, the Company has not recorded a liability for the Fairway Defined Benefit Plan.

Other 2017 Business Combinations

The Company completed the acquisitions of the two other businesses to expand the Company’s merchant base and to provide additional service to the Company’s customers. Total purchase consideration for the two

acquisitions was $6,396, including $5,175 in cash and revolving line of credit proceeds and $1,221 of contingent cash consideration.

The goodwill associated with the acquisitions of the two other businesses is tax-deductible. The weighted-average amortization period for all intangibles acquired is fifteen years. Acquisition-related costs for the two other businesses amounted to approximately $184 and were expensed as incurred.

Certain provisions in the purchase agreement for one of the two other businesses provided for additional consideration of up to $4,700, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreement, through December 2019. The Company determined the acquisition date fair value of the liability for the contingent consideration based on a discounted cash flow analysis. In each subsequent reporting period, the Company reassesses its current estimates of performance relative to the targets and adjusts the contingent liability to its fair value through earnings. See additional disclosures in Note 11.

Summary of 2017 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2017 were as follows:


	Fairway		Other		Total
Accounts receivable	$	—	$	30	$	30
Inventories	—		15		15
Prepaid expenses and other current assets	226		—		226
Property and equipment	5		57		62
Acquired merchant relationships	19,200		2,160		21,360
Non-compete agreements	40		40		80
Trade name	500		—		500
Goodwill	19,309		4,152		23,461
Total assets acquired	39,280		6,454		45,734

Deferred rent	5		—		5
Deferred revenue, current	—		58		58
Net assets acquired	$	39,275	$	6,396	$	45,671

2018 Business Combinations

During the year ended September 30, 2018, the Company completed the acquisitions of four businesses, including San Diego Cash Register Company, Inc., and three additional unrelated businesses which were considered individually immaterial but collectively material.

Purchase of San Diego Cash Register Company, Inc.

On October 31, 2017, the Company closed an agreement to purchase all of the outstanding stock of San Diego Cash Register Company, Inc. (“SDCR, Inc.”). The acquisition was completed to expand the Company's revenue within the integrated POS market. Total purchase consideration was $20,834, which includes $104 of common units in i3 Verticals, LLC issued to the seller. The acquisition was funded using $20,000 in proceeds from

the issuance of long-term debt from the Senior Secured Credit Facility (as defined in Note 9) and $730 of contingent cash consideration.

The goodwill associated with the acquisition is not deductible for tax purposes. The acquired merchant relationships intangible asset has an estimated amortization period of twelve years. The non-compete agreement and trade name have an amortization period of two and five years, respectively. The weighted-average amortization period for all intangibles acquired is eleven years.

Acquisition-related costs for SDCR, Inc. were $293 and were expensed as incurred.

Certain provisions in the purchase agreement provide for additional consideration of up to $2,400, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreement, through October 2019. The Company determined the acquisition date fair value of the liability for the contingent consideration based on a discounted cash flow analysis. In each subsequent reporting period the Company reassesses its current estimates of performance relative to the targets and adjusts the contingent liability to its fair value through earnings. See additional disclosures in Note 11.

Other 2018 Business Combinations

The Company completed the acquisitions of the three other businesses to expand the Company's merchant base. Total purchase consideration for the three acquisitions was $15,604, including $13,700 in cash and revolving line of credit proceeds, $550 of restricted Class A common stock and $1,354 of contingent cash consideration. The purchase price allocations assigned for certain of these acquisitions are preliminary.

The goodwill associated with the acquisitions of the three other businesses is deductible for tax purposes. The acquired merchant relationships intangible assets have estimated amortization periods of between twelve and fifteen years. The exclusivity agreement acquired has an estimated amortization period of ten years. The non-compete agreements and trade name have weighted-average amortization periods of five years. The weighted-average amortization period for all intangibles acquired is twelve years.

Acquisition-related costs for the three other businesses amounted to approximately $233 and were expensed as incurred.

Certain provisions in the purchase agreements for the three other businesses provide for additional consideration of up to $11,800, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreements, through no later than January 2020. The Company determined the acquisition date fair values of the liabilities for the contingent consideration based on discounted cash flow analyses. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. See additional disclosures in Note 11.

Summary of 2018 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2018 were as follows:


	SDCR, Inc.		Other		Total
Cash and cash equivalents	$	1,338	$	—	$	1,338
Accounts receivable	1,008		—		1,008
Settlement assets	—		350		350
Related party receivable	773		—		773
Inventories	1,318		—		1,318
Prepaid expenses and other current assets	1,176		8		1,184
Property and equipment	69		58		127
Capitalized software	—		200		200
Acquired merchant relationships	5,500		5,100		10,600
Exclusivity Agreements	—		100		100
Non-compete agreements	40		1,440		1,480
Trade name	1,340		200		1,540
Goodwill	16,523		8,914		25,437
Other assets	—		4		4
Total assets acquired	29,085		16,374		45,459

Accounts payable	1,342		—		1,342
Accrued expenses and other current liabilities	3,123		431		3,554
Settlement obligations	—		350		350
Deferred revenue, current	2,029		190		2,219
Other long-term liabilities	1,757		—		1,757
Net assets acquired	$	20,834	$	15,403	$	36,237

Pro Forma Results of Operations for 2018 Business Combinations

The following unaudited supplemental pro forma results of operations have been prepared as though each of the acquired businesses in the year ended September 30, 2018 had occurred on October 1, 2016. Pro forma adjustments were made to reflect the impact of depreciation and amortization, changes to executive compensation and the revised debt load, all in accordance with ASC 805. This supplemental pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisitions been made on these dates, or of results of operations that may occur in the future.


	Year ended September 30,
	2018		2017
Revenue	$	355,015	$	314,172
Net income (loss)	$	(4,501)	$	5,217

Property and Equipment, Net

12 Months Ended

Sep. 30, 2018

Property and Equipment, Net

PROPERTY AND EQUIPMENT, NET

A summary of the Company's property and equipment as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Computer equipment and software	2 to 3 years	$	636	$	484
Furniture and fixtures	2 to 7 years	1,299		719
Terminals	2 to 3 years	588		991
Office equipment	2 to 5 years	107		87
Automobiles	3 years	114		56
Leasehold improvements	2 to 7 years	1,506		429
Accumulated depreciation		(1,292)		(1,346)
Property and equipment, net		$	2,958	$	1,420

Depreciation expense for the years ended September 30, 2018, 2017 and 2016 amounted to $802, $875 and $648, respectively.

Capitalized Software, Net

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Capitalized Software, Net

CAPITALIZED SOFTWARE, NET

A summary of the Company's capitalized software as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Software development costs	1 to 3 years	$	6,021	$	4,846
Development in progress		389		1,125
Accumulated amortization		(3,038)		(2,193)
Capitalized software, net		$	3,372	$	3,778

The Company capitalized software development costs (including acquisitions) totaling $1,292 and $1,452 during the years ended September 30, 2018 and 2017, respectively. Amortization expense for capitalized software development costs amounted to $1,696, $1,541 and $1,223 during the years ended September 30, 2018, 2017 and 2016, respectively.

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:


	Merchant Services		Proprietary Software and Payments		Other		Total
Balance at September 30, 2016 (net of accumulated impairment losses of $11,458, $0 and $0, respectively)	$	26,553	$	8,503	$	—	$	35,056
Goodwill attributable to 2017 acquisitions	22,620		841		—		23,461
Balance at September 30, 2017	49,173		9,344		—		58,517
Goodwill attributable to 2018 acquisitions	20,493		4,944		—		25,437
Balance at September 30, 2018	$	69,666	$	14,288	$	—	$	83,954

Intangible assets consisted of the following as of September 30, 2018:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	94,791	$	(34,086)	$	60,705	15 years – accelerated or straight-line
Non-compete agreements	1,890		(561)		1,329		2 to 5 years – straight-line
Website development costs	18		(14)		4		3 years – straight-line
Trade names	3,717		(1,850)		1,867		2 to 5 years – straight-line
Residual buyouts	2,043		(773)		1,270		2 years – straight-line
Referral and exclusivity agreements	915		(99)		816		1 to 10 years – straight-line
Total finite-lived intangible assets	103,374		(37,383)		65,991

Indefinite-lived intangible assets:
Trademarks	32		—		32
Total identifiable intangible assets	$	103,406	$	(37,383)	$	66,023

Intangible assets consisted of the following as of September 30, 2017:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	84,191	$	(26,855)	$	57,336	15 years – accelerated or straight-line
Non-compete agreements	446		(276)		170		2 to 3 years – straight-line
Website development costs	46		(33)		13		3 years – straight-line
Trade names	2,202		(922)		1,280		2 to 5 years – straight-line
Residual buyouts	476		(44)		432		2 years – straight-line
Total finite-lived intangible assets	87,361		(28,130)		59,231

Indefinite-lived intangible assets:
Trademarks	28		—		28
Total identifiable intangible assets	87,389		(28,130)		59,259

Amortization expense for intangible assets amounted to $9,341, $7,669 and $8,027 during the years ended September 30, 2018, 2017 and 2016, respectively.

Based on gross carrying amounts at September 30, 2018, the Company's estimate of future amortization expense for intangible assets are presented in the table below.


2019	$	8,715
2020	7,039
2021	6,051
2022	5,712
2023	4,908
Thereafter	33,566
	$	65,991

Accrued Expenses and Other Liabilities

12 Months Ended

Sep. 30, 2018

Accrued Expenses and Other Liabilities

ACCRUED EXPENSES AND OTHER LIABILITIES

A summary of the Company's accrued expenses and other current liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued wages, bonuses, commissions and vacation	$	1,975	$	1,298
Accrued interest	75		529
Accrued contingent consideration --- current portion	3,813		2,229
Tax receivable agreement liability --- current portion	25		—
Accrued tax liabilities	836		42
Customer deposits	1,333		—
Other current liabilities	3,481		2,608
Accrued expenses and other current liabilities	$	11,538	$	6,706

A summary of the Company's long-term liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued contingent consideration --- long-term portion	$	2,186	$	1,111
Warrant liabilities	—		767
Tax receivable agreement liability --- long-term	791		—
Deferred tax liability --- long-term	1,100		—
Other long-term liabilities	649		187
Total other long-term liabilities	$	4,726	$	2,065

Long-Term Debt, Net

12 Months Ended

Sep. 30, 2018

Long-Term Debt, Net

LONG-TERM DEBT, NET

A summary of long-term debt, net as of September 30, 2018 and September 30, 2017 is as follows:


	Maturity	2018		2017
Notes payable to Mezzanine Lenders	November 29, 2020	$	—	$	10,500
Unsecured notes payable to related and unrelated creditors	February 14, 2019	—		16,108
Term loans to bank under the 2016 Senior Secured Credit Facility	April 29, 2020	—		14,000
Revolving lines of credit to banks under the 2016 Senior Secured Credit Facility	April 29, 2020	—		71,600
Term loans to bank under the Senior Secured Credit Facility	October 30, 2022	35,000		—
Revolving lines of credit to banks under the Senior Secured Credit Facility	October 30, 2022	3,250		—
Debt issuance costs, net		(1,474)		(1,372)
Total long-term debt, net of issuance costs		36,776		110,836
Less current portion of long-term debt		(5,000)		(4,000)
Long-term debt, net of current portion		$	31,776	$	106,836

Term loans payable to banks and revolving lines of credit payable to banks

In April and July 2016, the Company amended its existing syndicated credit facility (the “2016 Senior Secured Credit Facility”) with certain banks. The 2016 Senior Secured Credit Facility consisted of term loans in the principal amount of $19,000 and an $80,000 revolving line of credit. The 2016 Senior Secured Credit Facility accrued interest, payable monthly, at the prime rate plus a margin of 0.50% to 2.00% (1.50% as of September 30, 2017) or at the 30-day LIBOR rate plus a margin of 3.50% to 5.00% (4.50% as of September 30, 2017), in each case depending on the Company's ratio of consolidated debt-to-EBITDA, as defined in the agreement. Additionally, the 2016 Senior Secured Credit Facility required the Company to pay unused commitment fees of up to 0.30% (0.30% as of September 30, 2017) on any undrawn amounts under the revolving line of credit. Through the April and July 2016 amendments, the maturity date of the 2016 Senior Secured Credit Facility was extended to April 29, 2020. The amendments were accounted for as a modification under the guidance at ASC 470-50, Debt — Modifications and Extinguishments (“ASC 470-50”). Principal payments of $1,000 were due on the last day of each calendar quarter until the maturity date, when all outstanding principal and accrued and unpaid interest was due. At September 30, 2017, there was $8,400 available for borrowing under the revolving line of credit.

The 2016 Senior Secured Credit Facility was amended in July 2017 to enable the purchase of Fairway and to amend certain covenant requirements.

The 2016 Senior Secured Credit Facility was secured by substantially all assets of the Company. The lenders under the 2016 Senior Secured Credit Facility held senior rights to collateral and principal repayment over all other creditors.

The provisions of the 2016 Senior Secured Credit Facility placed certain restrictions and limitations upon the Company. These included, among others, restrictions on liens, investments, indebtedness, fundamental changes and dispositions; maintenance of certain financial ratios; and certain non-financial covenants pertaining to the activities of the Company during the period covered. The Company was in compliance with such covenants as of September 30, 2017. In addition, the 2016 Senior Secured Credit Facility restricted the Company's ability to make dividends or other distributions to the holders of the Company's equity. The Company was permitted to (i) make distributions to the holders of the Company's equity in order to pay taxes incurred by owners of equity in i3 Verticals, LLC by reason of such ownership, (ii) move intercompany cash between subsidiaries that were joined to the 2016 Senior Secured Credit Facility, (iii) repurchase equity from employees, directors, officers or consultants after an initial public offering of the Company's equity in an aggregate total not to exceed $1.50 million per year,

and (iv) make other dividends or distributions in an aggregate amount not to exceed 5% of the net cash proceeds received from any additional common equity issuance after an initial public offering. The Company was also permitted to make noncash dividends in the form of additional equity issuances. All other forms of dividends or distributions were prohibited under the 2016 Senior Secured Credit Facility.

The 2016 Senior Secured Credit Facility was modified on October 30, 2017 and replaced by a new credit agreement (the “Senior Secured Credit Facility”), as discussed below.

Senior Secured Credit Facility

On October 30, 2017, the Company replaced its existing credit facility with the Senior Secured Credit Facility. The Company concluded that the Senior Secured Credit Facility should be accounted for as a debt modification based on the guidance in ASC 470-50. The Senior Secured Credit Facility consists of term loans in the original principal amount of $40,000 and a $110,000 revolving line of credit. The Senior Secured Credit Facility accrues interest, payable monthly, at the prime rate plus a margin of 0.50% to 2.00% (0.50% as of September 30, 2018) or at the 30-day LIBOR rate plus a margin of 2.75% to 4.00% (2.75% as of September 30, 2018), in each case depending on the ratio of consolidated debt-to-EBITDA, as defined in the agreement. Additionally, the Senior Secured Credit Facility requires the Company to pay unused commitment fees of up to 0.15% to 0.30% (0.15% as of September 30, 2018) on any undrawn amounts under the revolving line of credit. The maturity date of the Senior Secured Credit Facility is October 30, 2022. Principal payments of $1,250 are due on the last day of each calendar quarter until the maturity date, when all outstanding principal and accrued and unpaid interest are due. At September 30, 2018, there was $106,750 available for borrowing under the revolving line of credit.

The Senior Secured Credit Facility is secured by substantially all assets of the Company. The lenders under the Senior Secured Credit Facility hold senior rights to collateral and principal repayment over all other creditors.

The provisions of the Senior Secured Credit Facility place certain restrictions and limitations upon the Company. These include, among others, restrictions on liens, investments, indebtedness, fundamental changes and dispositions; maintenance of certain financial ratios; and certain non-financial covenants pertaining to the activities of the Company during the period covered. The Company was in compliance with such covenants as of September 30, 2018. In addition, the Senior Secured Credit Facility restricts the Company's ability to make dividends or other distributions to the holders of the Company's equity. The Company is permitted to (i) make cash distributions to the holders of the Company's equity in order to pay taxes incurred by owners of equity in i3 Verticals, LLC, by reason of such ownership, (ii) move intercompany cash between subsidiaries that are joined to the Senior Secured Credit Facility, (iii) repurchase equity from employees, directors, officers or consultants after the Reorganization Transactions in an aggregate amount not to exceed $1,500 per year, and (iv) make other dividends or distributions in an aggregate amount not to exceed 5% of the net cash proceeds received from any additional common equity issuance after the IPO. The Company is also permitted to make non-cash dividends in the form of additional equity issuances. All other forms of dividends or distributions are prohibited under the Senior Secured Credit Facility.

Notes to Mezzanine Lenders

During 2013, the Company issued notes payable in the aggregate principal amount of $10,500 (the “Mezzanine Notes”) to three creditors. The Mezzanine Notes accrued interest at a fixed rate of 12.0%, payable monthly, and initially were due to mature in February 2018. In April 2016, the Mezzanine Notes were amended and restated and the maturity dates were extended to November 29, 2020, when all outstanding principal and accrued and unpaid interest was due. The amendment was accounted for as a modification under the guidance at ASC 470-50. The Mezzanine Notes were secured by substantially all assets of the Company in accordance with the terms of a security agreement and were subordinate to the Senior Secured Credit Facility.

The provisions of the Mezzanine Notes placed certain restrictions and limitations upon the Company. These included restrictions on additional borrowings, capital expenditures, maintenance of certain financial ratios, and certain non-financial covenants pertaining to the activities of the Company during the period covered. The

Company was in compliance with such covenants as of September 30, 2017. The Mezzanine Lenders participated in the July 2017 Class A unit offerings (see Note 13).

In June 2018, all of the outstanding aggregate principal balance and accrued interest on the Mezzanine Notes was repaid with proceeds from the Company’s IPO. As part of the extinguishment of the Mezzanine Notes, $78 of unamortized debt issuance costs were written off.

Mezzanine Warrants

In connection with the issuance of the Mezzanine Notes, the Company granted the Mezzanine Warrants to purchase 1,423,688 common units in i3 Verticals, LLC. The Mezzanine Warrants were determined to have no material value as of the grant date. The intrinsic value of the Mezzanine Warrants was $767 as of September 30, 2017, and they had an exercise price of $0.01. On June 25, 2018, in conjunction with the Reorganization Transactions described in Note 1, all existing Mezzanine Warrants were exercised for common units in i3 Verticals, LLC. The intrinsic value of the Mezzanine Warrants at that date was $9,241. The change in the fair market value of the warrants for the year ended September 30, 2018 is reflected within the consolidated statement of operations.

Unsecured notes payable to related and unrelated creditors

During 2014, the Company issued the Junior Subordinated Notes in the aggregate principal amount of $17,608 to unrelated and related creditors. The Junior Subordinated Notes accrued interest, payable monthly, at a fixed rate of 10.0% and were due to mature on February 14, 2019, when all outstanding principal and accrued and unpaid interest was due. However, the unsecured notes were subordinate to the Mezzanine Notes and the Senior Secured Credit Facility, which both had maturities beyond the Junior Subordinated Notes, and the provisions of the Mezzanine Notes and Senior Secured Credit Facility did not permit the payment of any subordinated debt prior to its maturity. Should the Junior Subordinated Notes have reached maturity and the terms of the Mezzanine Notes and Senior Secured Credit Facility remained in place, the term of the Junior Subordinated Notes would have been extended until after the maturity of the Mezzanine Notes and Senior Secured Credit Facility, in accordance with the terms of the Junior Subordinated Notes.

In connection with the issuance of the Junior Subordinated Notes, the Company granted detachable warrants (“Junior Subordinated Notes Warrants”) to purchase 1,433,920 common units in i3 Verticals, LLC. Management determined that the warrants had no material value as of the grant date, and none of the proceeds from the notes was attributed to the warrants. The warrants are accounted for as equity. See additional disclosures in Note 13.

In July 2017, $500 of the Junior Subordinated Notes were retired and exchanged for 148 Class A units of the Company. The fair value of the Class A units issued approximated the carrying amount of the Junior Subordinated Notes, so no extinguishment gain or loss was recognized. See additional disclosures in Note 13 and Note 15.

At September 30, 2017, $16,108 of the Junior Subordinated Notes remained outstanding.

In June 2018, in connection with the Company's IPO and as part of the Reorganization Transactions, $8,054 of the Junior Subordinated Notes were converted to newly issued shares of the Company's Class A common stock, as described in Note 1, and the remaining $8,054 of the Junior Subordinated Notes was repaid with proceeds from the Company's IPO. As part of the extinguishment of the Junior Subordinated Notes, $43 of unamortized debt issuance costs were written off.

Debt issuance costs

During the years ended September 30, 2018 and 2017, the Company incurred debt issuance costs totaling $1,170 and $254, respectively, in connection with the issuance of long-term debt. The debt issuance costs are being amortized over the related term of the debt using the straight-line method and are presented net against long-term debt in the consolidated balance sheets. As part of the April 2016 amendment to the 2016 Senior Secured Credit Facility, the Company expensed a nominal amount of unamortized debt issuance costs related to

the exit of a participating bank from the 2016 Senior Secured Credit Facility. The amortization of deferred debt issuance costs is included in interest expense and amounted to approximately $1,072, $453 and $443 during the years ended September 30, 2018, 2017 and 2016, respectively.

Income Taxes

12 Months Ended

Sep. 30, 2018

Income Taxes

INCOME TAXES

As of September 30, 2018 and 2017, the Company had accrued no interest and no penalties related to uncertain tax positions. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense.


	Year ended September 30,
	2018		2017		2016
Current:
Federal tax expense	$	668	$	—	$	—
State tax expense	351		121		246
Deferred
Federal tax (benefit)	(685)		—		—
State tax expense (benefit)	3		56		(3)
Income tax expense	$	337	$	177	$	243

A reconciliation of income tax expense from operations computed at the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year ended September 30,
	2018						2017						2016
Expected U.S. federal income taxes at statutory rate	$	(1,139)	24.6	%	$	370	34.3	%	$	(629)	34.0	%
Partnership income not taxed at federal level	294		(6.4)	%	(1,352)		(125.3)	%	(3,103)		167.7	%
Valuation allowance	965		(20.9)	%	914		84.7	%	3,679		(198.9)	%
State and local income taxes, net of federal benefit	295		(6.4)	%	177		16.4	%	244		(13.2)	%
Nondeductible expenses	398		(8.6)	%	67		6.2	%	47		(2.5)	%
Federal tax rate change	(471)		10.2	%	—		—	%	—		—	%
Other	(5)		0.1	%	1		0.1	%	5		(0.3)	%
Income tax expense	$	337	(7.3)	%	$	177	16.4	%	$	243	(13.1)	%

Deferred income taxes are provided for the temporary differences between the financial reporting basis and tax basis of the Company’s assets and liabilities. Net deferred taxes as of September 30, 2018 and 2017 were as follows:


	September 30,
	2018		2017
Deferred tax assets:
Investment in partnership	$	21,958	$	—
Stock-based compensation	186		—
Tax Receivable Agreement	193		—
Deferred revenue	571		—
Accrued expenses	29		3
Intangible assets	—		68
Net operating loss carryforwards	103		94
Other	33		10
Gross deferred tax assets	23,073		175
Valuation allowance	(21,360)		(93)

Deferred tax liabilities:
Intangible assets	$	(1,656)	$	—
Other	(5)		(4)
Net deferred tax asset	$	52	$	78

Federal and state net operating loss carryforwards for the Company were $27,061 as of September 30, 2018 and will expire between years 2027 and 2038. The net operating loss carryforwards are included in Other assets within the Consolidated Balance Sheets. The use of these federal and state net operating losses is limited to the future taxable income of separate legal entities. Based on expectations of future taxable income, management believes that it is more likely than not that the results of operations for certain separate legal entities will not

generate sufficient taxable income to realize portions of these net operating loss benefits. As a result, a valuation allowance has been provided for the loss carryforwards for these specific legal entities.

On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. The new legislation contains several key tax provisions, including the reduction of the federal corporate income tax rate to 21% effective January 1, 2018, as well as a variety of other changes, including limitation of the tax deductibility of interest expense, acceleration of expensing of certain business assets and reductions in the amount of executive pay that could qualify as a tax deduction. The Company is assessing the impact of the enacted tax law on its business and its consolidated financial statements and recorded a provisional discrete tax benefit related to the re-measurement of its deferred tax assets and liabilities at SDCR, Inc. of $471 for the reduced federal tax rates during the year ended September 30, 2018.

Tax Receivable Agreement

On June 25, 2018, the Company entered into a Tax Receivable Agreement with i3 Verticals, LLC and each of the Continuing Equity Owners (the “Tax Receivable Agreement”) that provides for the payment by the Company to the Continuing Equity Owners of 85% of the amount of certain tax benefits, if any, that it actually realizes, or in some circumstances, is deemed to realize in its tax reporting, as a result of (i) future redemptions funded by the Company or exchanges, or deemed exchanges in certain circumstances, of Common Units of i3 Verticals, LLC for Class A common stock of i3 Verticals, Inc. or cash, and (ii) certain additional tax benefits attributable to payments made under the Tax Receivable Agreement. These tax benefit payments are not conditioned upon one or more of the Continuing Equity Owners maintaining a continued ownership interest in i3 Verticals, LLC. If a Continuing Equity Owner transfers Common Units but does not assign to the transferee of such units its rights under the Tax Receivable Agreement, such Continuing Equity Owner generally will continue to be entitled to receive payments under the Tax Receivable Agreement arising in respect of a subsequent exchange of such Common Units. In general, the Continuing Equity Owners’ rights under the Tax Receivable Agreement may not be assigned, sold, pledged or otherwise alienated to any person, other than certain permitted transferees, without (a) the Company's prior written consent, which should not be unreasonably withheld, conditioned or delayed, and (b) such persons becoming a party to the Tax Receivable Agreement and agreeing to succeed to the applicable Continuing Equity Owner’s interest therein. The Company expects to benefit from the remaining 15% of the tax benefits, if any, that the Company may realize.

During the year ended September 30, 2018, in conjunction with the Company's IPO, i3 Verticals, Inc. purchased Class B common stock from a Continuing Equity Owner for $4,635. This transaction triggered an increase in the tax basis of the Company's Common Units in i3 Verticals, LLC subject to the provisions of the Tax Receivable Agreement. The Company recognized a deferred tax asset in the amount of $960 and a corresponding liability of $816, representing 85% of the tax benefits due to the Continuing Equity Owners related to exchanges in the year ended September 30, 2018.

Fair Value Measurements

12 Months Ended

Sep. 30, 2018

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The Company applies the provisions of ASC 820, Fair Value Measurement, which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability as of the measurement date. A three-tier, fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The three levels are:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets.

The carrying value of the Company’s financial instruments, including cash and cash equivalents, restricted cash, settlement assets and obligations, accounts receivable, other assets, accounts payable, and accrued expenses, approximated their fair values as of September 30, 2018 and 2017, because of the relatively short maturity dates on these instruments. The carrying amount of debt approximates fair value as of September 30, 2018 and 2017, because interest rates on these instruments approximate market interest rates.

The Company has no Level 1 or Level 2 financial instruments. The following tables present the changes in the Company's Level 3 financial instruments that are measured at fair value on a recurring basis.


	Mezzanine Warrants		Accrued Contingent Consideration
Balance at September 30, 2016	$	1,182	$	5,537
Change in the fair value of warrant liabilities, included in Other expenses	(415)		—
Contingent consideration accrued at time of business combination	—		1,221
Change in fair value of contingent consideration included in Operating expenses	—		(218)
Contingent consideration paid	—		(3,200)
Balance at September 30, 2017	$	767	$	3,340

Change in the fair value of warrant liabilities, included in Other expenses	8,487		—
Exercise of warrant liabilities into Common Units	(9,254)		—
Contingent consideration accrued at time of business combination	—		1,877
Change in fair value of contingent consideration included in Operating expenses	—		3,851
Contingent consideration paid	—		(3,069)
Balance at September 30, 2018	$	—	$	5,999

Approximately $3,813 and $2,229 of contingent consideration was recorded in accrued expenses and other current liabilities as of September 30, 2018 and 2017, respectively. Approximately $2,186 and $1,111 of contingent consideration was recorded in other long-term liabilities as of September 30, 2018 and 2017, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

12 Months Ended

Sep. 30, 2018

Equity-Based Compensation

EQUITY-BASED COMPENSATION

A summary of equity-based compensation expense recognized during the years ended September 30, 2018, 2017 and 2016 is as follows:


	Year ended September 30,
	2018		2017		2016
TRA non-participation compensatory shares	$	741	$	—	$	—
Stock options	826		—		—
Equity-based compensation expense	$	1,567	$	—	$	—

Amounts are included in general and administrative expense on the consolidated statements of operations. No income tax benefits were recognized related to equity-based compensation during the years ended September 30, 2018, 2017, and 2016.

TRA Non-Participation Compensatory Shares

On June 25, 2018, the Company entered into the Tax Receivable Agreement as described in Note 10. The Former Equity Owners did not participate in the Tax Receivable Agreement. Therefore, as part of the Reorganization Transactions, the Class B common units held by the Former Equity Owners were converted into shares of Class A common stock based on a conversion ratio that provided an equitable adjustment to reflect the full value of the Class B common units. For employees who are Former Equity Owners, this arrangement was a modification under ASC 718. The Company recognized stock-based compensation expense of $741 as part of the Reorganization Transactions as a result of this conversion.

Stock Options

In May 2018, the Company adopted the 2018 Equity Incentive Plan (the “2018 Plan”) under which the Company may grant up to 3,500,000 stock options and other equity-based awards to employees, directors and officers. The number of shares of Class A common stock available for issuance under the 2018 Plan includes an annual increase on the first day of each year, beginning with the 2019 calendar year, equal to 4.0% of the outstanding shares of all classes of the Company's common stock as of the last day of the immediately preceding calendar year, unless the Company’s board of directors determines prior to the last trading day of December of the immediately preceding calendar year that the increase shall be less than 4%. In connection with the IPO, the Company granted 2,045,000 stock options to its directors and certain employees. The stock options were granted with an exercise price of $13.00 per share and vest ratably over a three year period.

The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:


Expected volatility⁽¹⁾	26.2	%
Expected dividend yield⁽²⁾	—	%
Expected term⁽³⁾	6 years
Risk-free interest rate⁽⁴⁾	2.8	%

_________________

1.Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.

2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future.

3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.

4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

A summary of stock option activity for the year ended September 30, 2018 is as follows:


	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	—	$	—
Granted	2,143,500	13.13
Exercised	—	—
Forfeited	(5,000)	13.00
Outstanding at end of period	2,138,500	$	13.13

The weighted-average grant date fair value of stock options granted during the year ended September 30, 2018 was $4.17. As of September 30, 2018, there were 2,138,500 stock options outstanding, of which none were exercisable. As of September 30, 2018, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $8,100, which is expected to be recognized over a weighted-average period of 2.7 years.

Stockholders' / Members' Equity and Redeemable Class A Units

12 Months Ended

Sep. 30, 2018

Stockholders' / Members' Equity and Redeemable Class A Units

STOCKHOLDERS' / MEMBERS' EQUITY AND REDEEMABLE CLASS A UNITS

In connection with the Company’s IPO, the Company’s board of directors approved an amended and restated certificate of incorporation (the “Amended and Restated Certificate of Incorporation”), which became effective on June 25, 2018. The Amended and Restated Certificate of Incorporation authorizes the issuance of up to 150,000,000 shares of Class A common stock, up to 40,000,000 shares of Class B common stock and 10,000,000 shares of preferred stock, each having a par value of $0.0001 per share. Shares of Class A common stock have both economic and voting rights. Shares of Class B common stock have no economic rights, but do have voting rights. Holders of shares of Class A common stock and Class B common stock are entitled to one vote per share on all matters presented to stockholders generally. The Company’s board of directors has the discretion to determine the rights, preferences, privileges, and restrictions of any series of preferred stock.

On June 25, 2018, the Company completed the IPO of 7,647,500 shares of its Class A common stock. In connection with the IPO, the Company and i3 Verticals, LLC completed the Reorganization Transactions, pursuant to which all outstanding vested and non-vested Class A units, Class P units and common units were converted into new Common Units. Former Equity Owners' Common Units were converted into newly issued shares of Class A common stock. Continuing Equity Owners received newly issued shares of Class B common stock. For further descriptions of the IPO and Reorganization Transactions, see Note 1.

i3 Verticals, LLC Recapitalization

As noted above, the i3 Verticals, LLC Limited Liability Company Agreement, among other things, appointed the Company as i3 Verticals, LLC’s sole managing member and reclassified all outstanding membership interests in i3 Verticals, LLC as non-voting common units. As the sole managing member of i3 Verticals, LLC, the Company controls the management of i3 Verticals, LLC. As a result, the Company consolidates i3 Verticals, LLC’s financial results and reports a non-controlling interest related to the economic interest of i3 Verticals, LLC held by the Continuing Equity Owners.

The Amended and Restated Certificate of Incorporation and the i3 Verticals, LLC Limited Liability Company Agreement discussed above require i3 Verticals, LLC and the Company, at all times, to maintain (i) a one-to-one ratio between the number of shares of Class A common stock issued by the Company and the number of Common Units owned by the Company and (ii) a one-to-one ratio between the number of shares of Class B common stock owned by the Continuing Equity Owners and the number of Common Units owned by the Continuing Equity Owners (other than shares of the Company's Class A common stock under unvested options the Company issues, treasury stock and preferred stock (the “Excluded Common Units”)). The Company may issue shares of Class B common stock only to the extent necessary to maintain the one-to-one ratio between the

number of Common Units of i3 Verticals, LLC held by the Continuing Equity Owners (other than the Excluded Common Units) and the number of shares of Class B common stock issued to the Continuing Equity Owners. Shares of Class B common stock are transferable only together with an equal number of Common Units of i3 Verticals, LLC. Only permitted transferees of Common Units held by the Continuing Equity Owners will be permitted transferees of Class B common stock.

The Continuing Equity Owners may from time to time at each of their options (subject, in certain circumstances, to time-based vesting requirements) require i3 Verticals, LLC to redeem all or a portion of their Common Units in exchange for, at i3 Verticals, LLC’s election, newly-issued shares of our Class A common stock on a one-for-one basis or a cash payment equal to a volume weighted average market price of one share of Class A common stock for each Common Unit redeemed, in each case in accordance with the terms of the i3 Verticals, LLC Limited Liability Company Agreement; provided that, at the Company’s election, the Company may effect a direct exchange of such Class A common stock or such cash, as applicable, for such Common Units. The Continuing Equity Owners may exercise such redemption right for as long as their Common Units remain outstanding. Simultaneously with the payment of cash or shares of Class A common stock, as applicable, in connection with a redemption or exchange of Common Units pursuant to the terms of the i3 Verticals, LLC Limited Liability Company Agreement, a number of shares of the Company's Class B common stock registered in the name of the redeeming or exchanging Continuing Equity Owner will be canceled for no consideration on a one-for-one basis with the number of Common Units so redeemed or exchanged.

Redeemable Class A Units

Prior to the Company's recapitalization, as of September 30, 2017, there were 4,900,000 redeemable Class A units issued and outstanding. Upon receipt of a redemption request following the termination of employment of the current Chief Executive Officer of the Company (the redemption event), the Company was required to redeem all of the outstanding redeemable Class A units held by certain members. The redemption price of the redeemable Class A units was equal to the greater of (i) the fair value of the redeemable Class A unit or (ii) original issue price per redeemable Class A unit plus any preferred returns through the date of the redemption request.

Holders of redeemable Class A units had preferred return rights in preference to any declaration or distribution to holders of Class P units or common units, and equal to other Class A units. Preferred returns on the redeemable Class A units accrued at an amount equal to 10.0% per unit per annum of the original issue price, compounded annually, whether or not declared by the board of directors, and were cumulative. After preferential payment to the holder of redeemable Class A units and other Class A units, any additional distributions declared were distributed pro-rata to the holders of Class A units, common units and Class P units, in proportion to their respective units. Total cumulative preferred returns included within the carrying amount of the redeemable Class A units amounted to $3,376 and $2,823 as of June 25, 2018, the date of the Reorganization Transactions, and September 30, 2017, respectively.

During 2017, as obligated under the provisions of its member agreements, the Company declared distributions of approximately $131 to its redeemable Class A unit holders in connection with the members’ estimated tax liabilities.

As described in Note 1, the redeemable Class A units were converted into Common Units in i3 Verticals, LLC in connection with the Reorganization Transactions.

Class A Units, Class P Units and Common Units

Prior to the Company's recapitalization, as of September 30, 2017, the Company had authorized the issuance of Class A units, Class P units and common units. As described in Note 1, the Class A units, Class P units and Common Units were converted to Common Units in i3 Verticals, LLC in connection with the Reorganization Transactions.

Class A Units

As of September 30, 2017, there were 13,892,129 Class A units issued and outstanding.

Holders of Class A units had preferred return rights in preference to any declaration or distribution to holders of Class P units or common units. Preferred returns on the Class A units accrued at an amount equal to 10.0% per unit per annum of the original issue price, compounded annually, whether or not declared by the board of directors, and were cumulative. After preferential payment to the holder of Class A units, any additional distributions declared were distributed pro-rata to the holders of Class A units, common units and Class P units, in proportion to their respective units. Total cumulative preferred returns included within the carrying amount of the Class A units amounted to $7,627 and $5,105 as of June 25, 2018, the date of the Reorganization Transactions, and September 30, 2017, respectively.

During 2017, as obligated under the provisions of its member agreements, the Company declared distributions of approximately $625 to its Class A unit holders in connection with the members’ estimated tax liabilities.

Common Units

As of September 30, 2017, there were 1,548,722 common units issued and outstanding. Common units were generally issued in association with acquisitions.

Junior Subordinated Notes Warrants

As of September 30, 2017, there were in the aggregate 1,433,920 warrants outstanding and exercisable to purchase common units which are classified as equity instruments. The warrants were issued in connection with the issuance of the Junior Subordinated Notes (Note 9). As of September 30, 2017, the intrinsic value of the junior subordinated warrants was $0.

Warrants

Expiration

Exercise Price

Junior Subordinated Notes Warrants

1,433,920

February 14, 2024

2.095

The Junior Subordinated Notes Warrants were issued at zero value and were reflected within members’ equity within the accompanying Consolidated Balance Sheets. On June 25, 2018, in conjunction with the Reorganization Transactions described in Note 1, all existing Junior Subordinated Notes Warrants were exercised for common units in i3 Verticals, LLC.

Mezzanine Warrants

As of September 30, 2017, there were in the aggregate 1,423,688 warrants outstanding and exercisable to purchase Common Units which are classified as long-term liabilities. The warrants were issued in connection with the issuance of the Mezzanine Notes. See additional disclosures in Note 9.

Restricted Class P Units

As of September 30, 2017, there were 7,647,350 restricted Class P units issued and outstanding to certain members of the Company's Board of Directors and employees.

All Class P units were issued at a participation threshold above the valuation of the Company at the grant date. As a result, they had a nominal value, individually and in the aggregate, at the grant date. Using an option-pricing model and considering liquidation preferences of the Class P units, as well as the lack of marketability, management determined that any compensation expense related to the restricted units was immaterial to the consolidated financial statements.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Leases

The Company utilizes office space and equipment under operating leases. Rent expense under these leases amounted to $1,555 and $997 during the years ended September 30, 2018 and 2017, respectively.

A summary of approximate future minimum payments under these leases as of September 30, 2018 is as follows:


Years ending September 30:
2019	$	1,763
2020	1,637
2021	1,282
2022	1,149
2023	1,061
Thereafter	1,277
Total	$	8,169

Minimum Processing Commitments

The Company has non-exclusive agreements with several processors to provide it services related to transaction processing and transmittal, transaction authorization and data capture, and access to various reporting tools. Certain of these agreements require the Company to submit a minimum monthly number of transactions for processing. If the Company submits a number of transactions that is lower than the minimum, it is required to pay to the processor the fees it would have received if it had submitted the required minimum number of transactions. As of September 30, 2018, such minimum fee commitments were as follows:


Years ending September 30:
2019	$	2,500
2020	2,866
2021	2,757
2022	3,346
2022	3,621
Thereafter	243
Total	$	15,333

Litigation

With respect to all legal, regulatory and governmental proceedings, and in accordance with ASC 450-20, Contingencies—Loss Contingencies, the Company considers the likelihood of a negative outcome. If the Company determines the likelihood of a negative outcome with respect to any such matter is probable and the amount of the loss can be reasonably estimated, the Company records an accrual for the estimated amount of loss for the expected outcome of the matter. If the likelihood of a negative outcome with respect to material matters is reasonably possible and the Company is able to determine an estimate of the amount of possible loss or a range of loss, whether in excess of a related accrued liability or where there is no accrued liability, the Company discloses the estimate of the amount of possible loss or range of loss. However, the Company in some instances may be unable to estimate an amount of possible loss or range of loss based on the significant uncertainties involved in, or the preliminary nature of, the matter, and in these instances the Company will disclose the nature of the contingency and describe why the Company is unable to determine an estimate of possible loss or range of loss.

In addition, the Company is involved in ordinary course legal proceedings, which include all claims, lawsuits, investigations and proceedings, including unasserted claims, which are probable of being asserted, arising in the ordinary course of business and otherwise not described below. The Company has considered all such ordinary course legal proceedings in formulating its disclosures and assessments.

On June 14, 2016, Expert Auto Repair, Inc., for itself and on behalf of a class of additional plaintiffs, and Jeff Straight initiated a class action lawsuit against the Company, as alleged successor to Merchant Processing Solutions, LLC, in the Los Angeles County Superior Court of California, seeking damages, restitution and declaratory and injunctive relief (the “Expert Auto Litigation”). The plaintiffs alleged that Merchant Processing Solutions, LLC, the Company's alleged predecessor, engaged in unfair business practices in the merchant services sector including unfairly inducing merchants to obtain credit and debit card processing services and thereafter assessing them with improper fees. Subject to final court approval, the Company has entered into a settlement agreement to settle the plaintiffs’ claims for $995. On April 10, 2018, the Court granted conditional class certification and preliminary approval of the agreed settlement and scheduled the final fairness hearing and final approval of the settlement in December 2018. Notice was provided to all class members and they were given an opportunity to either file a claim, opt-out, file an objection or do nothing (in which case they would be included in the class settlement). The deadline for class members to take one of these four actions was November 8, 2018. No class member opted out or filed an objection to the settlement before that deadline. The reserved amount is reflected in accrued expenses and other current liabilities as of September 30, 2018. The amount was included in general and administrative expenses in the consolidated statement of operations for the year ended September 30, 2017.

In connection with the Expert Auto Litigation, on November 3, 2016 the Company's insurance carrier, Starr Indemnity and Liability Company, Inc. (“Starr”), filed a complaint against the Company in the United States District Court for the Middle District of Tennessee, seeking a declaration from the court that Starr's policy provided no coverage for the Expert Auto Litigation. This action was subsequently dismissed for lack of subject matter jurisdiction, prompting Starr to move the court to reconsider and on February 15, 2017 to file a complaint against the Company in the Twentieth Judicial District of the Davidson County Chancery Court of Tennessee repeating its federal court claims (although Starr has since dismissed the complaint in the Davidson County Chancery Court). Thereafter, after reconsidering its dismissal for lack of subject matter jurisdiction, the United States District Court for the Middle District of Tennessee revived Starr’s complaint, allowing Starr’s action to continue in federal court.

On April 13, 2018, the court issued an order to (i) stay discovery in the matter, (ii) allow Starr to file a motion for judgment on the pleadings by May 21, 2018 (which was filed) and (iii) require the Company to respond to such motion by June 8, 2018 (which the Company did). In the meantime, the Company filed its answer and counterclaim to Starr’s complaint and Starr then filed a motion to dismiss a portion of this counterclaim. On August 7, 2018, the court denied Starr's motion for judgment on the pleadings and also denied Starr's motion to dismiss in relation to the Company's counterclaim.

Following the denial of Starr’s motion, Starr requested the court’s permission to file a motion for leave to file a first amended complaint to allege an additional basis for denying coverage. The court granted Starr’s request to file such motion. Following the briefing by the parties, the court granted Starr’s motion and ordered it to file and serve its first amended complaint within ten days, which Starr did. In response, the Company filed its answer to Starr’s first amended complaint in which the Company again asserted its counterclaim against Starr.

Discovery is expected to get underway soon and trial is currently set for November 19, 2019.

The Company intends to continue to vigorously defend against Starr’s claims and to continue to pursue its own counterclaim.

Other

The Company's subsidiary CP-PS, LLC has certain indemnification obligations in favor of FDS Holdings, Inc. related to the acquisition of certain assets of Merchant Processing Solutions, LLC in February 2014. The Company has incurred expenses related to these indemnification obligations in prior periods and may have additional expenses in the future. However, after taking into consideration the evaluation of such matters by the Company’s legal counsel, the Company’s management believes at this time that the anticipated outcome of any existing or potential indemnification liabilities related to this matter will not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

Related Party Transactions	12 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Related parties held $6,158 of the Company’s Junior Subordinated Notes as of September 30, 2017. As described Note 9, 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 $457, $632 and $831 during the years ended September 30, 2018, 2017 and 2016, respectively. All lenders party to the Company’s 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 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 $952, $1,282 and $1,280 during the years ended September 30, 2018, 2017 and 2016, respectively. In April, 2016, the Company 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, the Company 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. The Company earned net revenues related to the Axia Tech Agreement of $53, $27 and $5 during the years ended September 30, 2018, 2017 and 2016 respectively. i3 Verticals, LLC, the Company's CEO and Clay Whitson, the Company's CFO, own 2.0%, 10.7% and 0.4%, respectively, of the outstanding equity of Axia Tech. In connection with our IPO, we entered into a Tax Receivable Agreement with certain non-controlling interest holders that provides for the payment by the Company to the Continuing Equity Owners of 85% of the amount of certain tax benefits, if any, that it actually realizes, or in some circumstances, is deemed to realize in its tax reporting, as a result of (i) future redemptions funded by the Company or exchanges, or deemed exchanges in certain circumstances, of Common Units of i3 Verticals, LLC for Class A common stock of i3 Verticals, Inc. or cash, and (ii) certain additional tax benefits attributable to payments made under the Tax Receivable Agreement. See Note 10 for further information. As of September 30, 2018, the total amount due under the Tax Receivable Agreement was $816.

Segments

12 Months Ended

Sep. 30, 2018

Segments

SEGMENTSThe Company determines its operating segments based on ASC 280, Segment Reporting, how the chief operating decision making group monitors and manages the performance of the business and the level at which financial information is reviewed. The Company’s operating segments are strategic business units that offer different products and services.

The Company's core business is delivering seamless integrated payment and software solutions to SMBs and organizations in strategic vertical markets. This is accomplished through the Merchant Services and Proprietary Software and Payments segments.

The Merchant Services segment provides comprehensive payment solutions to businesses and organizations. The Merchant Services segment includes third-party integrated payment solutions as well as traditional payment services across the Company's strategic vertical markets.

The Proprietary Software and Payments segment delivers embedded payment solutions to the Company's clients through company-owned software. Payments are delivered through both the PayFac model and the traditional merchant processing model. The Company's Proprietary Software and Payments clients are primarily in the education, property management and public sector markets.

The Other category includes corporate overhead expenses, when presenting reportable segment information.

The Company primarily uses processing margin to measure operating performance. The following is a summary of reportable segment operating performance for the years ended September 30, 2018, 2017 and 2016.


	As of and for the Year ended September 30, 2018
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	302,929	$	20,582	$	(3)	$	323,508

Operating expenses
Interchange and network fees	209,695		4,848		—		214,543
Other costs of services	38,399		1,916		(1)		40,314
Selling general and administrative	23,291		7,602		9,692		40,585
Depreciation and amortization	9,535		2,097		207		11,839
Change in fair value of contingent consideration	1,772		2,094		—		3,866
Income (loss) from operations	$	20,237	$	2,025	$	(9,901)	$	12,361

Processing margin⁽¹⁾	$	68,811	$	14,371	$	(2)	$	83,180
Total assets	$	58,342	$	7,553	$	109,247	$	175,142
Goodwill	$	69,666	$	14,288	$	—	$	83,954

__________________________

1.Processing margin is equal to revenue less interchange and network fees, less other costs of services. $13,976, $553 and $0 of residual expense, a component of other costs of services, are added back to the Merchant Services segment, Proprietary Software and Payments segment, and Other category, respectively.


	As of and for the Year ended September 30, 2017
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	248,005	$	14,582	$	(16)	$	262,571

Operating expenses
Interchange and network fees	185,141		3,971		—		189,112
Other costs of services	27,350		1,559		(111)		28,798
Selling general and administrative	13,858		7,194		6,142		27,194
Depreciation and amortization	8,029		1,938		118		10,085
Change in fair value of contingent consideration	192		(410)		—		(218)
Income (loss) from operations	$	13,435	$	330	$	(6,165)	$	7,600

Processing margin⁽¹⁾	$	47,389	$	9,423	$	(53)	$	56,759
Total assets	$	113,568	$	8,901	$	17,522	$	139,991
Goodwill	$	49,173	$	9,344	$	—	$	58,517

__________________________

1.Processing margin is equal to revenue less interchange and network fees, less other costs of services. $11,875, $371 and $(148) of residual expense, a component of other costs of services, are added back to the Merchant Services segment, Proprietary Software and Payments segment, and Other category, respectively.


	As of and for the Year ended September 30, 2016
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	187,720	$	12,018	$	(94)	$	199,644

Operating expenses
Interchange and network fees	137,801		3,175		22		140,998
Other costs of services	20,318		1,668		(52)		21,934
Selling general and administrative	8,970		6,439		4,984		20,393
Depreciation and amortization	8,233		1,556		109		9,898
Change in fair value of contingent consideration	2,371		87		—		2,458
Income (loss) from operations	$	10,027	$	(907)	$	(5,157)	$	3,963

Processing margin(1)	$	37,992	$	7,670	$	(92)	$	45,570
Total assets	$	73,652	$	7,958	$	18,672	$	100,282
Goodwill	$	26,553	$	8,503	$	—	$	35,056

__________________________

1.Processing margin is equal to revenue less interchange and network fees, less other costs of services. $8,391, $495 and $(28) of residual expense, a component of other costs of services, are added back to the Merchant Services segment, Proprietary Software and Payments segment, and Other category, respectively.

Non-Controlling Interest	12 Months Ended
Non-Controlling Interest	Sep. 30, 2018
Noncontrolling Interest [Abstract]
Non-Controlling Interests	NON-CONTROLLING INTEREST 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 September 30, 2018, i3 Verticals, Inc. owned 9,112,042 of i3 Verticals, LLC's Common Units, representing a 34.6% economic ownership interest in i3 Verticals, LLC.

Earnings Per Share

12 Months Ended

Sep. 30, 2018

Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per share of Class A common stock is computed by dividing net income available to i3 Verticals, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income available to i3 Verticals, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

Prior to the IPO, the i3 Verticals, LLC membership structure included Class A units, common units and Class P units. The Company analyzed the calculation of earnings per unit for periods prior to the IPO using the two-class method and determined that it resulted in values that would not be meaningful to the users of these consolidated financial statements. Therefore, earnings per share information has not been presented for the fiscal 2018 periods ended June 24, 2018 and the year ended September 30, 2017. The basic and diluted earnings per share for the year ended September 30, 2018 represents only the period from June 25 through September 30, 2018.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Year ended September 30, 2018
Basic net income per share:
Numerator
Net income⁽¹⁾	$	2,673
Less: Net income attributable to non-controlling interests	1,937
Net income attributable to Class A common stockholders	$	736
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Basic net income per share	$	0.08

Dilutive net income per share:
Numerator
Net income attributable to Class A common stockholders	$	736
Reallocation of net income assuming conversion of common units⁽³⁾	1,478
Net income attributable to Class A common stockholders - diluted	$	2,214
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Weighted average effect of dilutive securities	18,061,248
Weighted average shares of Class A common stock outstanding - diluted	26,873,878
Diluted net income per share	$	0.08

____________________

1.Basic and diluted earnings per Class A common stock is presented only for the period after the Company’s Reorganization Transactions. As such, net income used in the calculation represents the net income attributable to Class A common stockholders for the period from June 25 through September 30, 2018.

2.Excludes 299,412 restricted Class A common stock units.

3.The reallocation of net income assuming conversion of common units represents the tax effected net income attributable to non-controlling interest using the effective income tax rates described in Note 10 above and assuming all common units of i3 Verticals, LLC were exchanged for Class A common stock at the beginning of the year The common units of i3 Verticals, LLC held by the Continuing Equity Owners are potentially dilutive securities, and the computations of pro forma diluted net income per share assume that all common units of i3 Verticals, LLC were exchanged for shares of Class A common stock at the beginning of the year.

Shares of the Company's Class B common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented.

Significant Non-cash Transactions

12 Months Ended

Sep. 30, 2018

Significant Non-cash Transactions

SIGNIFICANT NON-CASH TRANSACTIONS

The Company engaged in the following significant non-cash investing and financing activities during the years ended September 30, 2018, 2017, and 2016:


	Year ended September 30,
	2018		2017		2016
Conversion of unsecured note payable to related party into Class A Units	$	—	$	—	$	1,000
Exchange of Junior Subordinated Notes for Class A Units	$	—	$	500	$	1,000
Common Units issued as part of acquisitions' purchase consideration (Note 4)	$	104	$	275	$	665
Restricted Class A common stock issued as part of acquisitions' purchase consideration (Note 4)	$	550	$	—	$	—
Acquisition date fair value of contingent consideration in connection with business combinations	$	2,084	$	1,221	$	1,480
Replacement of 2016 Senior Secured Credit Facility with Senior Secured Credit Facility	$	87,525	$	—	$	—
Mezzanine Notes net settled with Mezzanine Warrant exercises	$	14	$	—	$	—
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	$	2,565	$	—	$	—
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	$	9,253	$	—	$	—
Preferred return on Redeemable Class A Units	$	552	$	701	$	639
Preferred return on Class A Units	$	2,522	$	2,223	$	1,080
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	$	904	$	—	$	—
Conversion of notes payable to related and unrelated creditors to Class A common stock	$	8,054	$	—	$	—

Quarterly Information (Unaudited)

12 Months Ended

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information (Unaudited)

QUARTERLY INFORMATION (UNAUDITED)

The tables below present summarized unaudited quarterly results of operations for the years ended September 30, 2018 and 2017. Management believes that all necessary adjustments have been included in the amounts stated below for a fair presentation of the results of operations for the periods presented when read in conjunction with the consolidated financial statements for the years ended September 30, 2018 and 2017. Results of operations for a particular quarter are not necessarily indicative of results of operations for an annual period and are not predictive of future periods.


	Quarter ended
	December 31,		March 31,		June 30,		September 30,
Fiscal Year 2017:
Revenue	$	62,331	$	62,135	$	66,326	$	71,779
Income from operations	$	1,096	$	1,709	$	2,717	$	2,078
(Loss) income before income taxes	$	(497)	$	58	$	1,058	$	460
Net (loss) income attributable to i3 Verticals, Inc.	$	(417)	$	48	$	887	$	384
Fiscal Year 2018:
Revenue	$	77,221	$	77,698	$	84,536	$	84,053
Income from operations	$	3,347	$	2,596	$	2,923	$	3,495
(Loss) income before income taxes	$	(721)	$	(6,586)	$	37	$	2,646
Net (loss) income attributable to i3 Verticals, Inc.⁽¹⁾	$	(332)	$	(6,836)	$	(564)	$	834
Basic (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾					$	(0.01)	$	0.09
Diluted (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾⁽³⁾					$	(0.01)	$	0.09

____________________

4.Represents net loss of i3 Verticals, LLC for the periods prior to the Company's Reorganization Transactions.

5.Basic and diluted (loss) earnings per Class A common stock is presented only for the period after the Company’s Reorganization Transactions. As such, net loss used in the calculation for the quarter ended June 30, 2018 represents the loss for the period from June 25 through June 30, 2018.

6.Basic (loss) earnings per share excludes 299,412 restricted Class A common stock units from the calculation.

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On October 31, 2018, the Company completed the acquisitions of two unrelated businesses. The acquisitions expanded our software offerings in the public sector vertical market and provided technology that enhances our Burton Platform. Total purchase consideration included $21,000 in revolving line of credit proceeds. Certain provisions in the purchase agreements provide for additional consideration of up to $14,000, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreements, through no later than October 2020. The Company is in process of determining the acquisition date fair values of the liabilities for the contingent consideration based on discounted cash flow analyses. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. The effect of the acquisitions will be included in the consolidated statements of operations beginning November 1, 2018. The Company is still evaluating the allocation of the preliminary purchase consideration and pro forma results of operations. Acquisition-related costs to date for the businesses amounted to approximately $79 and will be expensed as incurred.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the reporting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”).
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include the accounts of the Company and its subsidiary companies. All significant intercompany accounts and transactions have been eliminated in consolidation.
Cash, Cash Equivalents and Restricted Cash	Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers cash on hand, checking accounts, and savings accounts to be cash and cash equivalents. At times, the balance in these accounts may exceed federal insured limits. Cash equivalents are defined as financial instruments readily transferrable into cash with an original maturity less than 90 days. Restricted Cash Restricted cash represents funds held-on-deposit with processing banks pursuant to agreements to cover potential merchant losses. It is presented as long-term assets on the accompanying consolidated balance sheets since the related agreements extend beyond the next twelve months. Following the adoption of ASU 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230), the Company includes restricted cash along with the cash and cash equivalents balance for presentation in the consolidated statements of cash flows.
Accounts Receivable and Credit Policies	Accounts Receivable and Credit Policies Accounts receivable consist primarily of uncollateralized credit card processing residual payments due from processing banks requiring payment within thirty days following the end of each month. Accounts receivable also include amounts due from the sales of the Company’s technology solutions to its customers. The carrying amount of accounts receivable is reduced by an allowance for doubtful accounts, if necessary, which reflects management’s best estimate of the amounts that will not be collected. The allowance is estimated based on management’s knowledge of its customers, historical loss experience and existing economic conditions. Accounts receivable and the allowance are written-off when, in management’s opinion, all collection efforts have been exhausted.
Settlement Assets and Obligations	Settlement Assets and ObligationsSettlement assets and obligations result when funds are temporarily held or owed by the Company on behalf of merchants, consumers, schools, and other institutions. Timing differences, interchange expense, merchant reserves and exceptional items cause differences between the amount received from the card networks and the amount funded to counterparties. These balances arising in the settlement process are reflected as settlement assets and obligations on the accompanying consolidated balance sheets. With the exception of merchant reserves, settlement assets or settlement obligations are generally collected and paid within one to four days.
Inventories	Inventories Inventories consist of point-of-sale equipment to be sold to customers and are stated at the lower of cost, determined on a weighted average basis, or net realizable value.
Property and Equipment	Property and Equipment Property and equipment are stated at cost or, if acquired through a business combination or an asset acquisition, fair value at the date of acquisition. Depreciation and amortization are provided over the assets’ estimated useful lives (or, if obtained in connection with a business acquisition, over their estimated remaining useful lives) using the straight-line method, except for leasehold improvements, which are depreciated over the shorter of the estimated useful lives of the assets or the lease term. Expenditures for maintenance and repairs are expensed when incurred. Expenditures for renewals or betterments are capitalized. Management reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company recognizes impairment when the sum of undiscounted estimated future cash flows expected to result from the use of the asset is less than the carrying value of the asset.
Capitalized Software	Capitalized Software Development costs for software to be sold or leased to customers are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. Software development costs are amortized using the greater of the straight-line method or the usage method over its estimated useful life, which is generally estimated to be three years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of a planned project becoming doubtful or due to technological obsolescence of a planned software product. Management evaluates the remaining useful lives and carrying values of capitalized software at least annually or when events and circumstances warrant such a review, to determine whether significant events or changes in circumstances indicate that impairment in value may have occurred. To the extent estimated net realizable values, which are estimated to equal future undiscounted cash flows, exceed the carrying value, no impairment is necessary. If estimated net realizable values are less than the carrying values, an impairment charge is recorded. Impairment charges during the years ended September 30, 2018, 2017 and 2016 were nominal. Identifiable software technology intangible assets resulting from acquisitions are amortized using the straight-line method over periods not exceeding their remaining estimated useful lives. GAAP requires that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment. Acquisition technology intangibles’ net book values are included in capitalized software, net in the accompanying consolidated balance sheets.
Acquisitions	Acquisitions Business acquisitions have been recorded using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The fair value of merchant relationships and non-compete assets acquired is identified using the Income Approach. The fair value of trade names acquired is identified using the Relief from Royalty Method. The fair value of deferred revenue is identified using the Adjusted Fulfillment Cost Method. After the purchase price has been allocated, goodwill is recorded to the extent the total consideration paid for the acquisition, including the acquisition date fair value of contingent consideration, if any, exceeds the sum of the fair values of the separately identifiable acquired assets and assumed liabilities. Acquisition costs for business combinations are expensed when incurred and recorded in selling general and administrative expenses in the accompanying consolidated statements of operations. Acquisitions not meeting the accounting criteria to be accounted for as a business combination are accounted for as an asset acquisition. An asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition. The operating results of an acquisition are included in the consolidated statements of operations from the date of such acquisition.
Goodwill	Goodwill In accordance with ASC 350, Intangibles—Goodwill and Other, the Company tests goodwill for impairment for each reporting unit on an annual basis, or when events or circumstances indicate the fair value of a reporting unit is below its carrying value. The Company’s goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. The goodwill generated from the business combinations is primarily related to the value placed on the employee workforce and expected synergies. Goodwill is tested for impairment at least annually in the fourth quarter and between annual tests if there are indicators of impairment that suggest a decline in the fair value of a reporting unit. Judgment is involved in determining if an indicator or change in circumstances relating to impairment has occurred. Such changes may include, among others, a significant decline in expected future cash flows, a significant adverse change in the business climate, and unforeseen competition. No goodwill impairment charges were recognized during the years ended September 30, 2018, 2017 and 2016. The Company has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually and may vary by reporting unit. Factors the Company considers in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of the Company’s reporting units, events or changes affecting the composition or carrying amount of the net assets of its reporting units, sustained decrease in its share price, and other relevant entity specific events. If the Company determines not to perform the qualitative assessment or if it determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying value, then the Company performs a quantitative test for that reporting unit. The fair value of each reporting unit is compared to the reporting unit’s carrying value, including goodwill. Subsequent to the adoption on January 1, 2017 of Accounting Standards Update (“ASU”) No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, if the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment equal to the excess carrying value, not to exceed the total amount of goodwill allocated to that reporting unit. For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.” The Company has determined that it has nine reporting units.
Intangible Assets	Intangible Assets Intangible assets include acquired merchant relationships, residual buyouts, referral agreements, trademarks, tradenames, website development costs and non-compete agreements. Merchant relationships represent the fair value of customer relationships purchased by the Company. Residual buyouts represent the right to not have to pay a residual to an independent sales agent related to certain future transactions with the agent’s referred merchants. Referral agreements represent the right to exclusively obtain referrals from a partner for their customers' credit card processing services. The Company amortizes definite lived identifiable intangible assets using a method that reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise utilized. The estimated useful lives of the Company’s customer-related intangible assets approximate the expected distribution of cash flows, whether straight-line or accelerated, generated from each asset. The useful lives of contract-based intangible assets are equal to the terms of the agreement. Management evaluates the remaining useful lives and carrying values of long-lived assets, including definite lived intangible assets, at least annually, or when events and circumstances warrant such a review, to determine whether significant events or changes in circumstances indicate that a change in the useful life or impairment in value may have occurred.
Income Taxes	Income Taxes i3 Verticals, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from i3 Verticals, LLC based on i3 Verticals, Inc.'s economic interest in i3 Verticals, LLC. i3 Verticals, LLC's members, including the Company, are liable for federal, state and local income taxes based on their share of i3 Verticals, LLC's pass-through taxable income. i3 Verticals, LLC is not a taxable entity for federal income tax purposes, but is subject to and reports entity level tax in both Tennessee and Texas. In addition, certain subsidiaries of i3 Verticals, LLC are corporations that are subject to state and federal income taxes. The amount provided for state income taxes is based upon the amounts of current and deferred taxes payable or refundable at the date of the consolidated financial statements as a result of all events recognized in the financial statements as measured by the provisions of enacted tax laws. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
Valuation of Contingent Consideration	Valuation of Contingent Consideration On occasion, the Company may have acquisitions which include contingent consideration. Accounting for business combinations requires the Company to estimate the fair value of any contingent purchase consideration at the acquisition date. For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.” Changes in estimates regarding the fair value contingent purchase consideration are reflected as adjustments to the related liability and recognized within operating expenses in the consolidated statements of operations. Short and long-term contingent liabilities are presented within accrued expenses and other current liabilities and other long-term liabilities on the Company's consolidated balance sheets, respectively.
Classification of Financial Instruments	Classification of Financial Instruments The Company classifies certain financial instruments issued as either equity or as liabilities. Determination of classification is based upon the underlying properties of the instrument.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue Revenue is recognized when it is realized or realizable and earned, in accordance with ASC 605, Revenue Recognition (“ASC 605”). Recognition occurs when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. More than 85% of the Company's gross revenue for the years ended September 30, 2018, 2017 and 2016 is derived from volume-based payment processing fees (“discount fees”) and other related fixed transaction or service fees. The remainder is comprised of sales of software licensing subscriptions, ongoing support, and other POS-related solutions the Company provides to its clients directly and through its processing bank relationships. Discount fees represent a percentage of the dollar amount of each credit or debit transaction processed. Discount fees are recognized at the time the merchants’ transactions are processed. The Company follows the requirements of ASC 605-45 Revenue Recognition—Principal Agent Considerations, in determining its merchant processing services revenue reporting. Generally, where the Company has control over merchant pricing, merchant portability, credit risk and ultimate responsibility for the merchant relationship, revenues are reported at the time of sale on a gross basis equal to the full amount of the discount charged to the merchant. This amount includes interchange fees paid to card issuing banks and assessments paid to payment card networks pursuant to which such parties receive payments based primarily on processing volume for particular groups of merchants. Revenues generated from merchant portfolios where the Company does not have control over merchant pricing, liability for merchant losses or credit risk or rights of portability are reported net of interchange and other fees. Revenues are also derived from a variety of fixed transaction or service fees, including authorization fees, convenience fees, statement fees, annual fees, and fees for other miscellaneous services, such as handling chargebacks. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. Revenue from the sale of equipment is recognized upon transfer of ownership and delivery to the customer, after which there are no further performance obligations. Revenues from sales of the Company’s software licensing subscriptions are recognized when they are realized or realizable and earned. Contractual arrangements are evaluated for indications that multiple element arrangements may exist, including instances where more-than-incidental software deliverables are included. Arrangements may contain multiple elements, such as hardware, software products, maintenance, and professional installation and training services. Revenues are allocated to each element based on the selling price hierarchy. The selling price for a deliverable is based on vendor specific objective evidence of selling price, if available, third party evidence, or estimated selling price. The Company establishes estimated selling price, based on the judgment of the Company's management, considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. In arrangements with multiple elements, the Company determines allocation of the transaction price at inception of the arrangement based on the relative selling price of each unit of accounting. In multiple element arrangements where more-than-incidental software deliverables are included, the Company applies the residual method to determine the amount of software license revenues to be recognized. Under the residual method, if fair value exists for undelivered elements in a multiple-element arrangement, such fair value of the undelivered elements is deferred with the remaining portion of the arrangement consideration recognized upon delivery of the software license or services arrangement. The Company allocates the fair value of each element of a software-related multiple-element arrangement based upon its fair value as determined by vendor specific objective evidence of selling price, with any remaining amount allocated to the software license. If evidence of the fair value cannot be established for the undelivered elements of a software arrangement, then the entire amount of revenue under the arrangement is deferred until these elements have been delivered or objective evidence can be established. These amounts, if any, are included in deferred revenue in the consolidated balance sheets. Revenues related to software licensing subscriptions, maintenance or other support services with terms greater than one month are recognized ratably over the term of the agreement. Revenues from sales of the Company’s combined hardware and software element are recognized when they are realized or realizable and earned which has been determined to be upon the delivery of the product. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. The Company’s training, installation, and repair services are recognized as revenue as these services are performed. Deferred revenue represents amounts billed to customers by the Company for services contracts. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the consolidated balance sheets. Interchange and Network Fees and Other Cost of Services Interchange and network fees consist primarily of fees that are directly related to discount fee revenue. These include interchange fees paid to issuers and assessment fees payable to card associations, which are a percentage of the processing volume the Company generates from Visa and Mastercard, as well as fees charged by card-issuing banks. Other costs of services include costs directly attributable to processing and bank sponsorship costs, which may not be based on a percentage of volume. These costs also include related costs such as residual payments to sales groups, which are based on a percentage of the net revenues generated from merchant referrals. In certain merchant processing bank relationships the Company is liable for chargebacks against a merchant equal to the volume of the transaction. Losses resulting from chargebacks against a merchant are included in other cost of services on the accompanying consolidated statement of operations. The Company evaluates its risk for such transactions and estimates its potential loss from chargebacks based primarily on historical experience and other relevant factors. The reserve for merchant losses is included within accrued expenses and other current liabilities on the accompanying consolidated balance sheets. The cost of equipment sold is also included in other cost of services. Interchange and other costs of services are recognized at the time the merchant's transactions are processed. The Company accounts for all governmental taxes associated with revenue transactions on a net basis.
Advertising and Promotion Cost	Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred.
Equity-based Compensation	Equity-based Compensation The Company accounts for grants of equity awards to employees in accordance with ASC 718, Compensation—Stock Compensation. This standard requires compensation expense to be measured based on the estimated fair value of the share-based awards on the date of grant and recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the value of purchase consideration paid and identifiable assets acquired and assumed in acquisitions, goodwill and intangible asset impairment review, warrant valuation, revenue recognition for multiple element arrangements, loss reserves, assumptions used in the calculation of equity-based compensation and in the calculation of income taxes, and certain tax assets and liabilities as well as the related valuation allowances. Actual results could differ from those estimates. Below is a summary of the Company’s critical accounting estimates for which the nature of management’s assumptions are material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, and for which the impact of the estimates and assumptions on financial condition or operating performance is material. Contingent Consideration in Acquisitions On occasion, the Company may have acquisitions that include contingent consideration. Accounting for business combinations requires the Company to estimate the fair value of any contingent purchase consideration at the acquisition date. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The contingent consideration is revalued each period until it is settled. Management reviews the historical and projected performance of each acquisition with contingent consideration and uses an income probability method to revalue the contingent consideration. The revaluation requires management to make certain assumptions and represent management's best estimate at the valuation date. The probabilities are determined based on a management review of the expected likelihood of triggering events that would cause a change in the contingent consideration paid. Goodwill The Company tests goodwill for impairment using a fair value approach at least annually, absent some triggering event that would require an interim impairment assessment. Absent any impairment indicators, the Company performs its goodwill impairment testing as of July 1 each year. Significant estimates and assumptions are used in the Company’s goodwill impairment review and include the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units and determining the fair value of each reporting unit. The Company’s assessment of qualitative factors involves significant judgments about expected future business performance and general market conditions. In a quantitative assessment, the fair value of each reporting unit is determined based on a combination of techniques, including the present value of future cash flows, applicable multiples of competitors and multiples from sales of like businesses, and requires management to make estimates and assumptions regarding discount rates, growth rates and the Company's future long-term business plans. Changes in any of these estimates or assumptions could materially affect the determination of fair value and the associated goodwill impairment charge for each reporting unit. Warrant Valuation As of September 30, 2017, there were in the aggregate 1,423,688 of warrants (the “Mezzanine Warrants”) outstanding and exercisable to purchase common units in i3 Verticals, LLC related to the issuance of the Mezzanine Notes. The Mezzanine Warrants were mandatorily redeemable and embody a conditional obligation to redeem the instrument by a transfer of assets. The Mezzanine Warrants were remeasured at each reporting date through the settlement of the instrument and changes in value were reflected in earnings. The Company used the Black-Scholes option pricing model to determine the fair market value of the Mezzanine Warrants at each reporting period. The option pricing model required the input of highly subjective assumptions, including the estimated enterprise value of the Company, expected term of the warrants, expected volatility, risk-free interest rates and discount for lack of marketability. To determine the fair value of the Mezzanine Warrants, the Company engaged an outside consultant to prepare a valuation of the unit price at each reporting date, using information provided by management and information obtained from private and public sources. The Company used an expected volatility based on the historical volatilities of a group of guideline companies and estimated a liquidity event in June 2018 to determine the term of the warrants. The risk-free interest rates were obtained from publicly available U.S. Treasury yield curve rates. The discount for lack of marketability, if any, was determined using the Finnerty Model. Based on the Company’s analysis, the most highly sensitive input in the Company's option pricing model related to management’s forecasted earnings. For example, if management’s forecasted earnings increased, the Company would have recorded additional losses from the change in fair value of warrant liability. Conversely, if management’s forecasted earnings decreased, the Company would have recorded a gain from change in fair value of warrant liability. Other inputs such as expected volatility and the risk free interest rate had a less material impact of the valuation of the warrant liability.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2021. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820). The amendments in ASU 2018-13 provide clarification and modify the disclosure requirements on fair value measurement in Topic 820, Fair Value Measurement. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2021. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718). The amendments in ASU 2018-07 expand the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of ASU No. 2014-09 (defined below). The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting (Topic 718). The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has adopted this standard as of April 1, 2018. There was no impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). The amendments in ASU 2016-18 require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The Company has adopted this standard as of July 1, 2018 and has included restricted cash along with the cash and cash equivalents balance for presentation on the consolidated statement of cash flows. The reconciliation between the consolidated balance sheet and the consolidated statements of cash flows is disclosed in the restricted cash section of this footnote. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230). The update clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The Company has adopted this standard as of July 1, 2018. There was no impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). The update requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the statement of operations. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether a benefit reduces taxes payable in the current period. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2018. The Company has early adopted this standard as of July 1, 2018. There was no impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU amends the existing guidance by recognizing all leases, including operating leases, with a term longer than twelve months on the balance sheet and disclosing key information about the lease arrangements. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2020. The update requires modified retrospective transition, with the option to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment and elect various practical expedients. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASU No. 2014-09”). The ASU supersedes the revenue recognition requirements in ASC 605. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized, based upon the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard, as amended, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The amendment allows companies to use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company has formed a project team and is currently assessing the impact of the adoption of this principle on the Company’s consolidated financial statements.
Fair Value Measurement	The Company applies the provisions of ASC 820, Fair Value Measurement, which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability as of the measurement date. A three-tier, fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The three levels are: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2018

Reconciliation Between Cash on the Balance Sheet and the Statement of Cash Flows

The reconciliation between the consolidated balance sheet and the consolidated statement of cash flows is as follows:


	September 30, 2018		September 30, 2017
Cash and cash equivalents on consolidated balance sheet	$	572	$	955
Restricted cash	665		1,013
Total cash, cash equivalents and restricted cash on consolidated statement of cash flows	$	1,237	$	1,968

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2018

2016 Business Combinations

Pro Forma Information

This supplemental pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisitions been made on these dates, or of results of operations that may occur in the future.


	Year ended September 30,
	2018		2017
Revenue	$	355,015	$	314,172
Net income (loss)	$	(4,501)	$	5,217

Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2016 were as follows:


	Axia		Other		Total
Cash and cash equivalents	$	—	$	4	$	4
Inventories	—		104		104
Property and equipment	—		67		67
Capitalized software	10		378		388
Acquired merchant relationships	15,100		1,833		16,933
Non-compete agreements	20		98		118
Trade name	1,300		95		1,395
Goodwill	12,089		3,776		15,865
Other assets	46		59		105
Total assets acquired	28,565		6,414		34,979

Deferred revenue, current	—		557		557
Net assets acquired	$	28,565	$	5,857	$	34,422

2017 Business Combinations

Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2017 were as follows:


	Fairway		Other		Total
Accounts receivable	$	—	$	30	$	30
Inventories	—		15		15
Prepaid expenses and other current assets	226		—		226
Property and equipment	5		57		62
Acquired merchant relationships	19,200		2,160		21,360
Non-compete agreements	40		40		80
Trade name	500		—		500
Goodwill	19,309		4,152		23,461
Total assets acquired	39,280		6,454		45,734

Deferred rent	5		—		5
Deferred revenue, current	—		58		58
Net assets acquired	$	39,275	$	6,396	$	45,671

2018 Business Combinations

Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2018 were as follows:


	SDCR, Inc.		Other		Total
Cash and cash equivalents	$	1,338	$	—	$	1,338
Accounts receivable	1,008		—		1,008
Settlement assets	—		350		350
Related party receivable	773		—		773
Inventories	1,318		—		1,318
Prepaid expenses and other current assets	1,176		8		1,184
Property and equipment	69		58		127
Capitalized software	—		200		200
Acquired merchant relationships	5,500		5,100		10,600
Exclusivity Agreements	—		100		100
Non-compete agreements	40		1,440		1,480
Trade name	1,340		200		1,540
Goodwill	16,523		8,914		25,437
Other assets	—		4		4
Total assets acquired	29,085		16,374		45,459

Accounts payable	1,342		—		1,342
Accrued expenses and other current liabilities	3,123		431		3,554
Settlement obligations	—		350		350
Deferred revenue, current	2,029		190		2,219
Other long-term liabilities	1,757		—		1,757
Net assets acquired	$	20,834	$	15,403	$	36,237

Property and Equipment, Net (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Property and Equipment

A summary of the Company's property and equipment as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Computer equipment and software	2 to 3 years	$	636	$	484
Furniture and fixtures	2 to 7 years	1,299		719
Terminals	2 to 3 years	588		991
Office equipment	2 to 5 years	107		87
Automobiles	3 years	114		56
Leasehold improvements	2 to 7 years	1,506		429
Accumulated depreciation		(1,292)		(1,346)
Property and equipment, net		$	2,958	$	1,420

Capitalized Software, Net (Tables)

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Capitalized Computer Software

A summary of the Company's capitalized software as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Software development costs	1 to 3 years	$	6,021	$	4,846
Development in progress		389		1,125
Accumulated amortization		(3,038)		(2,193)
Capitalized software, net		$	3,372	$	3,778

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill are as follows:


	Merchant Services		Proprietary Software and Payments		Other		Total
Balance at September 30, 2016 (net of accumulated impairment losses of $11,458, $0 and $0, respectively)	$	26,553	$	8,503	$	—	$	35,056
Goodwill attributable to 2017 acquisitions	22,620		841		—		23,461
Balance at September 30, 2017	49,173		9,344		—		58,517
Goodwill attributable to 2018 acquisitions	20,493		4,944		—		25,437
Balance at September 30, 2018	$	69,666	$	14,288	$	—	$	83,954

Schedule of Finite-Lived Intangible Assets

Intangible assets consisted of the following as of September 30, 2018:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	94,791	$	(34,086)	$	60,705	15 years – accelerated or straight-line
Non-compete agreements	1,890		(561)		1,329		2 to 5 years – straight-line
Website development costs	18		(14)		4		3 years – straight-line
Trade names	3,717		(1,850)		1,867		2 to 5 years – straight-line
Residual buyouts	2,043		(773)		1,270		2 years – straight-line
Referral and exclusivity agreements	915		(99)		816		1 to 10 years – straight-line
Total finite-lived intangible assets	103,374		(37,383)		65,991

Indefinite-lived intangible assets:
Trademarks	32		—		32
Total identifiable intangible assets	$	103,406	$	(37,383)	$	66,023

Intangible assets consisted of the following as of September 30, 2017:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	84,191	$	(26,855)	$	57,336	15 years – accelerated or straight-line
Non-compete agreements	446		(276)		170		2 to 3 years – straight-line
Website development costs	46		(33)		13		3 years – straight-line
Trade names	2,202		(922)		1,280		2 to 5 years – straight-line
Residual buyouts	476		(44)		432		2 years – straight-line
Total finite-lived intangible assets	87,361		(28,130)		59,231

Indefinite-lived intangible assets:
Trademarks	28		—		28
Total identifiable intangible assets	87,389		(28,130)		59,259

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consisted of the following as of September 30, 2018:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	94,791	$	(34,086)	$	60,705	15 years – accelerated or straight-line
Non-compete agreements	1,890		(561)		1,329		2 to 5 years – straight-line
Website development costs	18		(14)		4		3 years – straight-line
Trade names	3,717		(1,850)		1,867		2 to 5 years – straight-line
Residual buyouts	2,043		(773)		1,270		2 years – straight-line
Referral and exclusivity agreements	915		(99)		816		1 to 10 years – straight-line
Total finite-lived intangible assets	103,374		(37,383)		65,991

Indefinite-lived intangible assets:
Trademarks	32		—		32
Total identifiable intangible assets	$	103,406	$	(37,383)	$	66,023

Intangible assets consisted of the following as of September 30, 2017:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	84,191	$	(26,855)	$	57,336	15 years – accelerated or straight-line
Non-compete agreements	446		(276)		170		2 to 3 years – straight-line
Website development costs	46		(33)		13		3 years – straight-line
Trade names	2,202		(922)		1,280		2 to 5 years – straight-line
Residual buyouts	476		(44)		432		2 years – straight-line
Total finite-lived intangible assets	87,361		(28,130)		59,231

Indefinite-lived intangible assets:
Trademarks	28		—		28
Total identifiable intangible assets	87,389		(28,130)		59,259

Schedule of Future Amortization Expense of Finite-lived Intangible Assets

Based on gross carrying amounts at September 30, 2018, the Company's estimate of future amortization expense for intangible assets are presented in the table below.


2019	$	8,715
2020	7,039
2021	6,051
2022	5,712
2023	4,908
Thereafter	33,566
	$	65,991

Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Accrued Expenses and Other Current Liabilities

A summary of the Company's accrued expenses and other current liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued wages, bonuses, commissions and vacation	$	1,975	$	1,298
Accrued interest	75		529
Accrued contingent consideration --- current portion	3,813		2,229
Tax receivable agreement liability --- current portion	25		—
Accrued tax liabilities	836		42
Customer deposits	1,333		—
Other current liabilities	3,481		2,608
Accrued expenses and other current liabilities	$	11,538	$	6,706

Summary of Long-term Liabilities

A summary of the Company's long-term liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued contingent consideration --- long-term portion	$	2,186	$	1,111
Warrant liabilities	—		767
Tax receivable agreement liability --- long-term	791		—
Deferred tax liability --- long-term	1,100		—
Other long-term liabilities	649		187
Total other long-term liabilities	$	4,726	$	2,065

Long-Term Debt, Net (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Long-term Debt

A summary of long-term debt, net as of September 30, 2018 and September 30, 2017 is as follows:


	Maturity	2018		2017
Notes payable to Mezzanine Lenders	November 29, 2020	$	—	$	10,500
Unsecured notes payable to related and unrelated creditors	February 14, 2019	—		16,108
Term loans to bank under the 2016 Senior Secured Credit Facility	April 29, 2020	—		14,000
Revolving lines of credit to banks under the 2016 Senior Secured Credit Facility	April 29, 2020	—		71,600
Term loans to bank under the Senior Secured Credit Facility	October 30, 2022	35,000		—
Revolving lines of credit to banks under the Senior Secured Credit Facility	October 30, 2022	3,250		—
Debt issuance costs, net		(1,474)		(1,372)
Total long-term debt, net of issuance costs		36,776		110,836
Less current portion of long-term debt		(5,000)		(4,000)
Long-term debt, net of current portion		$	31,776	$	106,836

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Components of Income Tax Expense

It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense.


	Year ended September 30,
	2018		2017		2016
Current:
Federal tax expense	$	668	$	—	$	—
State tax expense	351		121		246
Deferred
Federal tax (benefit)	(685)		—		—
State tax expense (benefit)	3		56		(3)
Income tax expense	$	337	$	177	$	243

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense from operations computed at the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year ended September 30,
	2018						2017						2016
Expected U.S. federal income taxes at statutory rate	$	(1,139)	24.6	%	$	370	34.3	%	$	(629)	34.0	%
Partnership income not taxed at federal level	294		(6.4)	%	(1,352)		(125.3)	%	(3,103)		167.7	%
Valuation allowance	965		(20.9)	%	914		84.7	%	3,679		(198.9)	%
State and local income taxes, net of federal benefit	295		(6.4)	%	177		16.4	%	244		(13.2)	%
Nondeductible expenses	398		(8.6)	%	67		6.2	%	47		(2.5)	%
Federal tax rate change	(471)		10.2	%	—		—	%	—		—	%
Other	(5)		0.1	%	1		0.1	%	5		(0.3)	%
Income tax expense	$	337	(7.3)	%	$	177	16.4	%	$	243	(13.1)	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred taxes as of September 30, 2018 and 2017 were as follows:


	September 30,
	2018		2017
Deferred tax assets:
Investment in partnership	$	21,958	$	—
Stock-based compensation	186		—
Tax Receivable Agreement	193		—
Deferred revenue	571		—
Accrued expenses	29		3
Intangible assets	—		68
Net operating loss carryforwards	103		94
Other	33		10
Gross deferred tax assets	23,073		175
Valuation allowance	(21,360)		(93)

Deferred tax liabilities:
Intangible assets	$	(1,656)	$	—
Other	(5)		(4)
Net deferred tax asset	$	52	$	78

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2018

Changes in Level 3 Financial Instruments Measured on a Recurring Basis

The following tables present the changes in the Company's Level 3 financial instruments that are measured at fair value on a recurring basis.


	Mezzanine Warrants		Accrued Contingent Consideration
Balance at September 30, 2016	$	1,182	$	5,537
Change in the fair value of warrant liabilities, included in Other expenses	(415)		—
Contingent consideration accrued at time of business combination	—		1,221
Change in fair value of contingent consideration included in Operating expenses	—		(218)
Contingent consideration paid	—		(3,200)
Balance at September 30, 2017	$	767	$	3,340

Change in the fair value of warrant liabilities, included in Other expenses	8,487		—
Exercise of warrant liabilities into Common Units	(9,254)		—
Contingent consideration accrued at time of business combination	—		1,877
Change in fair value of contingent consideration included in Operating expenses	—		3,851
Contingent consideration paid	—		(3,069)
Balance at September 30, 2018	$	—	$	5,999

Equity-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Equity-Based Compensation Expense

A summary of equity-based compensation expense recognized during the years ended September 30, 2018, 2017 and 2016 is as follows:


	Year ended September 30,
	2018		2017		2016
TRA non-participation compensatory shares	$	741	$	—	$	—
Stock options	826		—		—
Equity-based compensation expense	$	1,567	$	—	$	—

Fair Value of Stock Option Awards

The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:


Expected volatility⁽¹⁾	26.2	%
Expected dividend yield⁽²⁾	—	%
Expected term⁽³⁾	6 years
Risk-free interest rate⁽⁴⁾	2.8	%

_________________

1.Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.

2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future.

3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.

4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

Summary of Stock Option Activity

A summary of stock option activity for the year ended September 30, 2018 is as follows:


	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	—	$	—
Granted	2,143,500	13.13
Exercised	—	—
Forfeited	(5,000)	13.00
Outstanding at end of period	2,138,500	$	13.13

Stockholders' / Members' Equity and Redeemable Class A Units (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Warrants

Warrants

Expiration

Exercise Price

Junior Subordinated Notes Warrants

1,433,920

February 14, 2024

2.095

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Approximate Future Minimum Rental Payments for Operating Leases

A summary of approximate future minimum payments under these leases as of September 30, 2018 is as follows:


Years ending September 30:
2019	$	1,763
2020	1,637
2021	1,282
2022	1,149
2023	1,061
Thereafter	1,277
Total	$	8,169

Minimum Fee Commitments

As of September 30, 2018, such minimum fee commitments were as follows:


Years ending September 30:
2019	$	2,500
2020	2,866
2021	2,757
2022	3,346
2022	3,621
Thereafter	243
Total	$	15,333

Segments (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Reportable Segment Performance


	As of and for the Year ended September 30, 2018
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	302,929	$	20,582	$	(3)	$	323,508

Operating expenses
Interchange and network fees	209,695		4,848		—		214,543
Other costs of services	38,399		1,916		(1)		40,314
Selling general and administrative	23,291		7,602		9,692		40,585
Depreciation and amortization	9,535		2,097		207		11,839
Change in fair value of contingent consideration	1,772		2,094		—		3,866
Income (loss) from operations	$	20,237	$	2,025	$	(9,901)	$	12,361

Processing margin⁽¹⁾	$	68,811	$	14,371	$	(2)	$	83,180
Total assets	$	58,342	$	7,553	$	109,247	$	175,142
Goodwill	$	69,666	$	14,288	$	—	$	83,954

__________________________


	As of and for the Year ended September 30, 2017
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	248,005	$	14,582	$	(16)	$	262,571

Operating expenses
Interchange and network fees	185,141		3,971		—		189,112
Other costs of services	27,350		1,559		(111)		28,798
Selling general and administrative	13,858		7,194		6,142		27,194
Depreciation and amortization	8,029		1,938		118		10,085
Change in fair value of contingent consideration	192		(410)		—		(218)
Income (loss) from operations	$	13,435	$	330	$	(6,165)	$	7,600

Processing margin⁽¹⁾	$	47,389	$	9,423	$	(53)	$	56,759
Total assets	$	113,568	$	8,901	$	17,522	$	139,991
Goodwill	$	49,173	$	9,344	$	—	$	58,517

__________________________


	As of and for the Year ended September 30, 2016
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	187,720	$	12,018	$	(94)	$	199,644

Operating expenses
Interchange and network fees	137,801		3,175		22		140,998
Other costs of services	20,318		1,668		(52)		21,934
Selling general and administrative	8,970		6,439		4,984		20,393
Depreciation and amortization	8,233		1,556		109		9,898
Change in fair value of contingent consideration	2,371		87		—		2,458
Income (loss) from operations	$	10,027	$	(907)	$	(5,157)	$	3,963

Processing margin(1)	$	37,992	$	7,670	$	(92)	$	45,570
Total assets	$	73,652	$	7,958	$	18,672	$	100,282
Goodwill	$	26,553	$	8,503	$	—	$	35,056

__________________________

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Reconciliations of the Numerators and Denominators Used to Compute Basic and Diluted Earnings Per Share

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Year ended September 30, 2018
Basic net income per share:
Numerator
Net income⁽¹⁾	$	2,673
Less: Net income attributable to non-controlling interests	1,937
Net income attributable to Class A common stockholders	$	736
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Basic net income per share	$	0.08

Dilutive net income per share:
Numerator
Net income attributable to Class A common stockholders	$	736
Reallocation of net income assuming conversion of common units⁽³⁾	1,478
Net income attributable to Class A common stockholders - diluted	$	2,214
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Weighted average effect of dilutive securities	18,061,248
Weighted average shares of Class A common stock outstanding - diluted	26,873,878
Diluted net income per share	$	0.08

____________________

2.Excludes 299,412 restricted Class A common stock units.

Significant Non-cash Transactions (Tables)

12 Months Ended

Sep. 30, 2018

Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]

Schedule of Significant Noncash Transactions

The Company engaged in the following significant non-cash investing and financing activities during the years ended September 30, 2018, 2017, and 2016:


	Year ended September 30,
	2018		2017		2016
Conversion of unsecured note payable to related party into Class A Units	$	—	$	—	$	1,000
Exchange of Junior Subordinated Notes for Class A Units	$	—	$	500	$	1,000
Common Units issued as part of acquisitions' purchase consideration (Note 4)	$	104	$	275	$	665
Restricted Class A common stock issued as part of acquisitions' purchase consideration (Note 4)	$	550	$	—	$	—
Acquisition date fair value of contingent consideration in connection with business combinations	$	2,084	$	1,221	$	1,480
Replacement of 2016 Senior Secured Credit Facility with Senior Secured Credit Facility	$	87,525	$	—	$	—
Mezzanine Notes net settled with Mezzanine Warrant exercises	$	14	$	—	$	—
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	$	2,565	$	—	$	—
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	$	9,253	$	—	$	—
Preferred return on Redeemable Class A Units	$	552	$	701	$	639
Preferred return on Class A Units	$	2,522	$	2,223	$	1,080
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	$	904	$	—	$	—
Conversion of notes payable to related and unrelated creditors to Class A common stock	$	8,054	$	—	$	—

Quarterly Information (Tables)

12 Months Ended

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information


	Quarter ended
	December 31,		March 31,		June 30,		September 30,
Fiscal Year 2017:
Revenue	$	62,331	$	62,135	$	66,326	$	71,779
Income from operations	$	1,096	$	1,709	$	2,717	$	2,078
(Loss) income before income taxes	$	(497)	$	58	$	1,058	$	460
Net (loss) income attributable to i3 Verticals, Inc.	$	(417)	$	48	$	887	$	384
Fiscal Year 2018:
Revenue	$	77,221	$	77,698	$	84,536	$	84,053
Income from operations	$	3,347	$	2,596	$	2,923	$	3,495
(Loss) income before income taxes	$	(721)	$	(6,586)	$	37	$	2,646
Net (loss) income attributable to i3 Verticals, Inc.⁽¹⁾	$	(332)	$	(6,836)	$	(564)	$	834
Basic (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾					$	(0.01)	$	0.09
Diluted (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾⁽³⁾					$	(0.01)	$	0.09

____________________

4.Represents net loss of i3 Verticals, LLC for the periods prior to the Company's Reorganization Transactions.

6.Basic (loss) earnings per share excludes 299,412 restricted Class A common stock units from the calculation.

Organization and Operations (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 25, 2018	Sep. 30, 2018
IPO
Subsidiary, Sale of Stock [Line Items]
Shares issued (shares)	7,647,500
Public offering price (in USD per share)	$ 13.00
Net proceeds from IPO	$ 92.5
i3Verticals, LLC
Subsidiary, Sale of Stock [Line Items]
Non-controlling interest, ownership interest (percent)		34.60%
Class A Common and Class B Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)		66.30%
Class B Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)		65.40%
Class A Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)		0.90%

Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2018 USD ($) reportable_unit	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Concentration Risk [Line Items]
Cash and cash equivalents on consolidated balance sheet	$ 572	$ 955
Restricted cash	665	1,013
Total cash and cash equivalents on consolidated statement of cash flows	1,237	1,968	$ 4,189	$ 414
Allowance for doubtful accounts	205	211
Settlement assets	863	5,196
Inventories	930	454
Impairment charges	0	0	0
Goodwill impairment	0	0	$ 0
Revenue from acquisitions	24,568
Net income from acquisitions	1,782
Discount fees as percent of gross revenue (percent)			85.00%
Advertising expense	765	654	$ 413
Equity-based compensation expense	$ 1,567	0	0
Number of reporting units \| reportable_unit	9
Change in fair value of warrant liability	$ 8,487	$ (415)	$ (28)
Product Concentration Risk \| Gross Revenue
Concentration Risk [Line Items]
Discount fees as percent of gross revenue (percent)	85.00%	85.00%
Unsecured Debt \| Mezzanine Warrants
Concentration Risk [Line Items]
Warrants outstanding (shares) \| shares		1,423,688
Fair market value of warrants		$ 767

Credit Risk and Other Concentrations (Details)	12 Months Ended
Credit Risk and Other Concentrations (Details)	Sep. 30, 2018 reportable_unit customer	Sep. 30, 2017 payment_processor customer	Sep. 30, 2016 payment_processor customer
Concentration Risk [Line Items]
Concentration risk (percent)			85.00%
Gross Revenue \| Supplier Concentration Risk
Concentration Risk [Line Items]
Number of third party payment processors	3	3	3
Concentration risk (percent)	10.00%	10.00%	10.00%
Gross Revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Number of customers	0	0	0
Concentration risk (percent)	1.00%	1.00%	1.00%

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Residual buyouts
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 1,567	$ 476
Estimated amortization period	2 years
Referral agreement
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 815
Estimated amortization period	5 years

Acquisitions (Details) $ in Thousands					12 Months Ended
Acquisitions (Details) $ in Thousands	Oct. 31, 2017 USD ($)	Aug. 01, 2017 USD ($)	Mar. 31, 2017 USD ($)	Apr. 01, 2016 USD ($)	Sep. 30, 2018 USD ($) business	Sep. 30, 2017 USD ($) business	Sep. 30, 2016 USD ($) reportable_unit
Business Acquisition [Line Items]
Number of Businesses Acquired \| reportable_unit							4
Common units issued to seller					$ 104	$ 275	$ 665
Cash and cash equivalents					1,338		4
Accounts receivable					1,008	30
Settlement assets					350
Related party receivable					773
Inventories					1,318	15	104
Prepaid expenses and other current assets					1,184	226
Property and equipment					127	62	67
Other assets					4		105
Goodwill					83,954	58,517	35,056
Total assets acquired					45,459	45,734	34,979
Accounts payable					1,342
Accrued expenses and other current liabilities					3,554
Settlement obligations					350
Deferred rent						5
Deferred revenue, current					2,219	58	557
Other long-term liabilities					1,757
Net assets acquired					36,237	45,671	34,422
2016 Business Combinations
Business Acquisition [Line Items]
Goodwill							15,865
Axia Payments, LLC
Business Acquisition [Line Items]
Common units issued to seller				$ 665
Total purchase consideration				28,565
Cash and cash equivalents							0
Inventories							0
Property and equipment							0
Other assets							46
Goodwill							12,089
Total assets acquired							28,565
Deferred revenue, current							0
Net assets acquired							$ 28,565
Estimated amortization period							14 years
Acquisition-related costs				$ 646
Other 2016 Business Combinations
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition							$ 4,377
Contingent cash consideration							1,480
Total purchase consideration							5,857
Cash and cash equivalents							4
Inventories							104
Property and equipment							67
Other assets							59
Goodwill							3,776
Total assets acquired							6,414
Deferred revenue, current							557
Net assets acquired							$ 5,857
Estimated amortization period							14 years
Acquisition-related costs							$ 201
Potential additional consideration							3,250
2017 Business Combinations
Business Acquisition [Line Items]
Goodwill						23,461
2018 Business Combinations
Business Acquisition [Line Items]
Goodwill					$ 25,437
Merchant Relationships Portfolio Purchase
Business Acquisition [Line Items]
Total purchase consideration			$ 1,156
Estimated amortization period			15 years
Acquisition-related costs			$ 56
Other 2018 Business Combinations
Business Acquisition [Line Items]
Number of Businesses Acquired \| business					4
Common units issued to seller					$ 550
Proceeds from issuance of long-term debt used to fund the acquisition					13,700
Contingent cash consideration					1,354
Total purchase consideration					15,604
Cash and cash equivalents					0
Accounts receivable					0
Settlement assets					350
Related party receivable					0
Inventories					0
Prepaid expenses and other current assets					8
Property and equipment					58
Other assets					4
Goodwill					8,914
Total assets acquired					16,374
Accounts payable					0
Accrued expenses and other current liabilities					431
Settlement obligations					350
Deferred revenue, current					190
Other long-term liabilities					0
Net assets acquired					$ 15,403
Estimated amortization period					12 years
Acquisition-related costs					$ 233
Potential additional consideration					11,800
Fairway Payments, LLC
Business Acquisition [Line Items]
Common units issued to seller		$ 275
Total purchase consideration		$ 39,275
Accounts receivable						0
Inventories						0
Prepaid expenses and other current assets						226
Property and equipment						5
Goodwill						19,309
Total assets acquired						39,280
Deferred rent						5
Deferred revenue, current						0
Net assets acquired						39,275
Estimated amortization period		15 years
Acquisition-related costs						$ 284
Other 2017 Business Combinations
Business Acquisition [Line Items]
Number of Businesses Acquired \| business						3
Proceeds from issuance of long-term debt used to fund the acquisition						$ 5,175
Contingent cash consideration						1,221
Total purchase consideration						6,396
Accounts receivable						30
Inventories						15
Prepaid expenses and other current assets						0
Property and equipment						57
Goodwill						4,152
Total assets acquired						6,454
Deferred rent						0
Deferred revenue, current						58
Net assets acquired						$ 6,396
Estimated amortization period						15 years
Acquisition-related costs						$ 184
Potential additional consideration						4,700
San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition	$ 20,000
Contingent cash consideration	730
Total purchase consideration	$ 20,834
Cash and cash equivalents					1,338
Accounts receivable					1,008
Settlement assets					0
Related party receivable					773
Inventories					1,318
Prepaid expenses and other current assets					1,176
Property and equipment					69
Other assets					0
Goodwill					16,523
Total assets acquired					29,085
Accounts payable					1,342
Accrued expenses and other current liabilities					3,123
Deferred revenue, current					2,029
Other long-term liabilities					1,757
Net assets acquired					20,834
Estimated amortization period	11 years
Acquisition-related costs	$ 293
Potential additional consideration	2,400
i3Verticals, LLC \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Common units issued to seller	$ 104
Exclusivity agreements
Business Acquisition [Line Items]
Intangible assets					100
Exclusivity agreements \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 100
Estimated amortization period					10 years
Exclusivity agreements \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					$ 0
Capitalized software
Business Acquisition [Line Items]
Intangible assets					200		388
Capitalized software \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							10
Capitalized software \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							378
Capitalized software \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					200
Capitalized software \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					0
Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets					10,600	21,360	16,933
Acquired merchant relationships \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							$ 15,100
Estimated amortization period							15 years
Acquired merchant relationships \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 1,833
Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					5,100
Acquired merchant relationships \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets						19,200
Estimated amortization period		15 years
Acquired merchant relationships \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets						2,160
Acquired merchant relationships \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					5,500
Estimated amortization period	12 years
Non-compete agreements
Business Acquisition [Line Items]
Intangible assets					1,480	80	118
Non-compete agreements \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							$ 20
Estimated amortization period							3 years
Non-compete agreements \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 98
Non-compete agreements \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 1,440
Estimated amortization period					5 years
Non-compete agreements \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets						40
Estimated amortization period		3 years
Non-compete agreements \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets						40
Non-compete agreements \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					$ 40
Estimated amortization period	2 years
Trade name
Business Acquisition [Line Items]
Intangible assets					1,540	500	1,395
Trade name \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							$ 1,300
Estimated amortization period							3 years
Trade name \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 95
Trade name \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 200
Estimated amortization period					5 years
Trade name \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets						500
Estimated amortization period		3 years
Trade name \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets						$ 0
Trade name \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					$ 1,340
Estimated amortization period	5 years
Minimum \| Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Estimated amortization period					12 years
Maximum \| Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Estimated amortization period					15 years

Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Business Combinations [Abstract]
Revenue	$ 355,015	$ 314,172
Net income (loss)	$ (4,501)	$ 5,217

Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ (1,292)	$ (1,346)
Property, Plant and Equipment, Net, Total	2,958	1,420
Depreciation expense	802	875	$ 648
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment	636	484
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	1,299	719
Terminals
Property, Plant and Equipment [Line Items]
Property and equipment	588	991
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	107	87
Automobiles
Property, Plant and Equipment [Line Items]
Property and equipment	$ 114	56
Estimated Useful Life	3 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,506	$ 429
Minimum \| Computer equipment and software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Terminals
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Office equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Maximum \| Computer equipment and software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Maximum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years
Maximum \| Terminals
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Maximum \| Office equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Maximum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years

Capitalized Software, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (3,038)	$ (2,193)
Capitalized software, net	3,372	3,778
Software capitalized during the period	1,292	1,452
Amortization expense	1,696	1,541	$ 1,223
Software development costs
Finite-Lived Intangible Assets [Line Items]
Capitalized software	6,021	4,846
Development in progress
Finite-Lived Intangible Assets [Line Items]
Capitalized software	$ 389	$ 1,125
Maximum \| Software development costs
Finite-Lived Intangible Assets [Line Items]
Amortization life	3 years
Minimum \| Software development costs
Finite-Lived Intangible Assets [Line Items]
Amortization life	1 year

Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Goodwill [Roll Forward]
Goodwill, beginning	$ 58,517	$ 35,056
Goodwill attributable acquisitions	25,437	23,461
Goodwill, ending	83,954	58,517
Merchant Services
Goodwill [Roll Forward]
Goodwill, beginning	49,173	26,553
Goodwill attributable acquisitions	20,493	22,620
Goodwill, ending	69,666	49,173
Accumulated impairment losses			$ 11,458
Proprietary Software and Payments
Goodwill [Roll Forward]
Goodwill, beginning	9,344	8,503
Goodwill attributable acquisitions	4,944	841
Goodwill, ending	14,288	9,344
Accumulated impairment losses			0
Other
Goodwill [Roll Forward]
Goodwill, beginning	0	0
Goodwill attributable acquisitions	0	0
Goodwill, ending	$ 0	$ 0
Accumulated impairment losses			$ 0

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 103,374	$ 87,361
Finite-lived intangible assets, accumulated amortization	(37,383)	(28,130)
Finite-lived intangible assets, carrying value	65,991	59,231
Indefinite-lived Intangible Assets		28
Total identifiable intangible assets, cost	103,406	87,389
Total identifiable intangible assets, carrying value	66,023	59,259
Amortization expense of intangible assets	9,341	7,669	$ 8,027
Trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets	32
Merchant relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	94,791	84,191
Finite-lived intangible assets, accumulated amortization	(34,086)	(26,855)
Finite-lived intangible assets, carrying value	$ 60,705	$ 57,336
Amortization life	15 years	15 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 1,890	$ 446
Finite-lived intangible assets, accumulated amortization	(561)	(276)
Finite-lived intangible assets, carrying value	$ 1,329	$ 170
Non-compete agreements \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	2 years	2 years
Non-compete agreements \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	5 years	3 years
Website development costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 18	$ 46
Finite-lived intangible assets, accumulated amortization	(14)	(33)
Finite-lived intangible assets, carrying value	$ 4	$ 13
Amortization life	3 years	3 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 3,717	$ 2,202
Finite-lived intangible assets, accumulated amortization	(1,850)	(922)
Finite-lived intangible assets, carrying value	$ 1,867	$ 1,280
Trade names \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	2 years	2 years
Trade names \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	5 years	5 years
Residual buyouts
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 2,043	$ 476
Finite-lived intangible assets, accumulated amortization	(773)	(44)
Finite-lived intangible assets, carrying value	$ 1,270	$ 432
Amortization life	2 years	2 years
Referral and exclusivity
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 915
Finite-lived intangible assets, accumulated amortization	(99)
Finite-lived intangible assets, carrying value	$ 816
Referral and exclusivity \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	1 year
Referral and exclusivity \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	10 years

Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 8,715
2020	7,039
2021	6,051
2022	5,712
2023	4,908
Thereafter	33,566
Finite-lived intangible assets, carrying value	$ 65,991	$ 59,231

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Accrued expenses and other current liabilities:
Accrued wages, bonuses, commissions and vacation	$ 1,975	$ 1,298
Accrued interest	75	529
Accrued contingent consideration - current portion	3,813	2,229
Tax receivable agreement liablility - current portion	25	0
Accrued tax liabilities	836	42
Customer deposits	1,333	0
Other current liabilities	3,481	2,608
Accrued Liabilities, Current, Total	11,538	6,706
Long-term Liabilities
Accrued contingent consideration - long-term portion	2,186	1,111
Warrant liabilities	0	767
Tax receivable agreement liability - long-term	791	0
Deferred tax liability - long-term	1,100	0
Other long-term liabilities	649	187
Total other long-term liabilities	$ 4,726	$ 2,065

Long-Term Debt, Net - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Debt issuance costs, net	$ (1,474)	$ (1,372)
Total long-term debt, net of issuance costs	36,776	110,836
Less current portion of long-term debt	(5,000)	(4,000)
Long-term debt, net of current portion	31,776	106,836
Notes Payable \| Notes payable to Mezzanine Lenders
Debt Instrument [Line Items]
Long-term debt	0	10,500
Unsecured Debt \| Unsecured notes payable to related and unrelated creditors
Debt Instrument [Line Items]
Long-term debt	0	16,108
Secured Debt \| Term loans to bank under the 2016 Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	0	14,000
Secured Debt \| Term loans to bank under the Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	35,000	0
Line of Credit \| Revolving lines of credit to banks under the 2016 Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	0	71,600
Line of Credit \| Revolving lines of credit to banks under the Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 3,250	$ 0

Long-Term Debt, Net - Additional Information (Details)		1 Months Ended			12 Months Ended
Long-Term Debt, Net - Additional Information (Details)	Jun. 30, 2018	Jun. 30, 2018 USD ($)	Jul. 31, 2017 USD ($)	Jul. 31, 2016 USD ($)	Sep. 30, 2018 USD ($) shares	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($)	Jun. 25, 2018 USD ($)	Oct. 30, 2017 USD ($)	Dec. 31, 2014	Sep. 30, 2014 USD ($)	Dec. 31, 2013 USD ($) lender
Debt Instrument [Line Items]
Debt converted to shares issued					$ 8,054,000	$ 0	$ 0
Debt issuance costs					1,170,000	254,000
Amortization of deferred debt issuance costs					1,072,000	453,000	443,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Remaining borrowing capacity						8,400,000
Unsecured Debt
Debt Instrument [Line Items]
Debt converted to shares issued					0	$ 0	$ 1,000,000
2016 Senior Secured Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity				$ 80,000,000
2016 Senior Secured Credit Facility \| Secured Debt
Debt Instrument [Line Items]
Original principal amount				19,000,000
Unused commitment fee (percent)						0.30%
Quarterly principal payment				1,000,000
Debt covenant, equity repurchase limit from employees, directors, officers or consultants				$ 1,500,000
Debt covenant, dividend or distribution limit as percent of net cash proceeds from additional common equity issuance (percent)				5.00%
2016 Senior Secured Credit Facility \| Secured Debt \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)						1.50%
2016 Senior Secured Credit Facility \| Secured Debt \| Prime Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.50%
2016 Senior Secured Credit Facility \| Secured Debt \| Prime Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				2.00%
2016 Senior Secured Credit Facility \| Secured Debt \| 30-day LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)						4.50%
2016 Senior Secured Credit Facility \| Secured Debt \| 30-day LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				3.50%
2016 Senior Secured Credit Facility \| Secured Debt \| 30-day LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				5.00%
Term loans to bank under the Senior Secured Credit Facility \| Secured Debt
Debt Instrument [Line Items]
Original principal amount									$ 40,000,000
Long-term debt					35,000,000	$ 0
Revolving lines of credit to banks under the Senior Secured Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Long-term debt					3,250,000	0
Senior Secured Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity									$ 110,000,000
Unused commitment fee (percent)	0.15%
Quarterly principal payment					1,250,000
Remaining borrowing capacity					106,750,000
Debt covenant, equity repurchase limit from employees, directors, officers or consultants					$ 1,500,000
Debt covenant, dividend or distribution limit as percent of net cash proceeds from additional common equity issuance (percent)					5.00%
Senior Secured Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Unused commitment fee (percent)					0.15%
Senior Secured Credit Facility \| Line of Credit \| Maximum
Debt Instrument [Line Items]
Unused commitment fee (percent)					0.30%
Senior Secured Credit Facility \| Line of Credit \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%
Senior Secured Credit Facility \| Line of Credit \| Prime Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					0.50%
Senior Secured Credit Facility \| Line of Credit \| Prime Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					2.00%
Senior Secured Credit Facility \| Line of Credit \| 30-day LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.75%
Senior Secured Credit Facility \| Line of Credit \| 30-day LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					2.75%
Senior Secured Credit Facility \| Line of Credit \| 30-day LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					4.00%
Notes payable to Mezzanine Lenders \| Notes Payable
Debt Instrument [Line Items]
Original principal amount												$ 10,500,000
Number of creditors \| lender												3
Stated interest rate (percent)												12.00%
Write off of unamortized debt issuance costs		$ 78,000
Warrants outstanding (shares) \| shares					1,423,688
Intrinsic value of warrants						$ 767,000		$ 9,241,000
Warrant exercise price (in USD per share) \| $ / shares						$ 0.01
Long-term debt					$ 0	$ 10,500,000
Junior Subordinated Notes \| Unsecured Debt
Debt Instrument [Line Items]
Original principal amount											$ 17,608,000
Stated interest rate (percent)										10.00%
Write off of unamortized debt issuance costs		43,000
Warrants outstanding (shares) \| shares					1,433,920
Long-term debt					$ 0	$ 16,108,000
Common Stock \| Junior Subordinated Notes \| Unsecured Debt
Debt Instrument [Line Items]
Debt converted to shares issued			$ 500,000
Class A Common Stock \| Common Stock
Debt Instrument [Line Items]
Debt converted to shares issued		$ 8,054,000

Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
Income Tax Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Current:
Federal tax expense	$ 668	$ 0	$ 0
State tax expense	351	121	246
Deferred:
Federal tax (benefit)	(685)	0	0
State tax expense (benefit)	3	56	(3)
Income tax expense	$ 337	$ 177	$ 243

Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Expected U.S. federal income taxes at statutory rate (percent)	24.60%	34.30%	34.00%
Partnership income not taxed at Partnership level (percent)	(6.40%)	(125.30%)	167.70%
Valuation allowance (percent)	(20.90%)	84.70%	(198.90%)
State and local income taxes, net of federal benefit (percent)	(6.40%)	16.40%	(13.20%)
Nondeductible expenses (percent)	(8.60%)	6.20%	(2.50%)
Federal tax rate change (percent)	10.20%	0.00%	0.00%
Other (percent)	0.10%	0.10%	(0.30%)
Income tax expense (percent)	(7.30%)	16.40%	(13.10%)
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Expected U.S. federal income taxes at statutory rate	$ (1,139)	$ 370	$ (629)
Partnership income not taxed at Partnership level	294	(1,352)	(3,103)
Valuation allowance	965	914	3,679
State and local income taxes, net of federal benefit	295	177	244
Nondeductible expenses	398	67	47
Federal tax rate change	(471)	0	0
Other	(5)	1	5
Income tax expense	$ 337	$ 177	$ 243

Deferred Tax Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets
Investment in partnership	$ 21,958	$ 0
Stock-based compensation	186	0
Tax receivable agreement	193	0
Deferred revenue	571	0
Accrued expenses	29	3
Intangible assets	0	68
Net operating loss carryforwards	103	94
Other	33	10
Gross deferred tax assets	23,073	175
Deferred Tax Assets, Valuation Allowance	(21,360)	(93)
Deferred tax liabilities
Intangible assets	(1,656)	0
Other	(5)	(4)
Net deferred tax asset	$ 52	$ 78

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Jun. 25, 2018
Class of Stock [Line Items]
Provisional discrete tax benefit related to the remeasurement of the deferred tax assets and liabilities of SDCR, Inc.		$ 471
Provision (benefit) for income taxes		337	$ 177	$ 243
Percent of tax benefits payable to continuing equity owners					85.00%
Tax benefits retained (percent)					15.00%
Purchase of common units in i3 Verticals, LLC from selling shareholder	$ 4,635
Deferred tax asset recognized	23,073	23,073	$ 175
Continuing Equity Owner \| Class B Common Stock
Class of Stock [Line Items]
Deferred tax asset recognized	960	960
Tax benefits due to Continuing Equity Owners	816	816
Noncontrolling Interest
Class of Stock [Line Items]
Purchase of common units in i3 Verticals, LLC from selling shareholder	4,635
Federal and State
Class of Stock [Line Items]
Net operating loss carryforwards	$ 27,061	$ 27,061

Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Mezzanine Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	$ 767	$ 1,182
Change in the fair value of warrant liabilities, included in Other expenses	8,487	(415)
Settlement through exercise of warrants or payment of consideration	(9,254)
Balance, ending	0	767
Accrued Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	3,340	5,537
Change in the fair value of warrant liabilities, included in Other expenses	3,851	(218)
Contingent consideration accrued at time of business combination	1,877	1,221
Settlement through exercise of warrants or payment of consideration	(3,069)	(3,200)
Balance, ending	5,999	3,340
Accrued Expenses and Other Current Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration	3,813	2,229
Other Long-term Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration	$ 2,186	$ 1,111

Equity-Based Compensation (Details) - USD ($)		3 Months Ended		12 Months Ended
Equity-Based Compensation (Details) - USD ($)	Jun. 25, 2018	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense				$ 1,567,000	$ 0	$ 0
Income tax benefits related to equity-based compensation		$ 0	$ 0	0	0
TRA Non-participation Compensatory Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 741,000			741,000	0	0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense				$ 826,000	$ 0	$ 0

Equity-Based Compensation - Additional Information (Details) - $ / shares		12 Months Ended
	Jun. 25, 2018	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted to directors and certain employees (shares)		2,143,500
Options granted, exercise price (in USD per share)		$ 13.13
2018 Equity Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (shares)		3,500,000
Additional Class A common shares added at the beginning of calendar year as percentage of common stock outstanding at end of previous year (percent)		4.00%
Directors and Certain Employees \| IPO \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted to directors and certain employees (shares)	2,045,000
Options granted, exercise price (in USD per share)	$ 13.00
Award vesting period	3 years

Equity-Based Compensation - Fair Value of Stock Option Awards (Details) - Stock Options	Jun. 25, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)	26.20%
Expected dividend yield (percent)	0.00%
Expected term	6 years
Risk-free interest rate (percent)	2.80%

Equity-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (shares)	0
Granted (shares)	2,143,500
Exercised (shares)	0
Forfeited (shares)	5,000
Outstanding at end of period (shares)	2,138,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period, weighted average exercise price (in USD per share)	$ 13.13	$ 0
Granted, weighted average exercise price (in USD per share)	13.13
Exercised, weighted average exercise price (in USD per share)	0
Forfeited, weighted average exercise price (in USD per share)	13.00
Outstanding at end of period, weighted average exercise price (in USD per share)	13.13	$ 0
Granted, weighted average grant date fair value (in USD per share)	$ 4.17
Options exercisable at end of period (shares)	0
Unrecognized compensation expense related to unvested options at end of period	$ 8,100
Period for recognition of unrecognized compensation cost	2 years 8 months 12 days

Stockholders' / Members' Equity and Redeemable Class A Units (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 25, 2018	Sep. 30, 2017	Sep. 30, 2018
Class of Stock [Line Items]
Preferred Stock authorized (shares)	10,000,000		10,000,000
Preferred Stock, par value (in USD per share)	$ 0.0001		$ 0.0001
Units issued (shares)		4,900,000	0
Units outstanding (shares)		4,900,000	0
Mezzanine Warrants
Class of Stock [Line Items]
Warrants outstanding (shares)		1,423,688
IPO
Class of Stock [Line Items]
Shares issued (shares)	7,647,500
Unsecured Debt \| Junior Subordinated Notes
Class of Stock [Line Items]
Warrants outstanding (shares)		1,433,920
Intrinsic value of warrants		$ 0
Warrant exercise price (in USD per share)		$ 2.095
Class A Common Stock
Class of Stock [Line Items]
Common Stock authorized (shares)	150,000,000		150,000,000
Common Stock, par value (in USD per share)	$ 0.0001		$ 0.0001
Units issued (shares)		13,892,129
Units outstanding (shares)		13,892,129
Cumulative preferred return	$ 7,627	$ 5,105
Distributions to unit holders		$ 625
Common Stock issued (shares)			9,112,042
Common Stock, outstanding (shares)			9,112,042
Class B Common Stock
Class of Stock [Line Items]
Common Stock authorized (shares)	40,000,000		40,000,000
Common Stock, par value (in USD per share)	$ 0.0001		$ 0.0001
Common Stock issued (shares)			17,213,806
Common Stock, outstanding (shares)			17,213,806
Redeemable Class A Units
Class of Stock [Line Items]
Units issued (shares)		4,900,000
Annual preferred return rate (percent)		10.00%
Cumulative preferred return	$ 3,376	$ 2,823
Distributions to unit holders		$ 131
Common Stock
Class of Stock [Line Items]
Common Stock issued (shares)		1,548,722
Restricted Class P Units
Class of Stock [Line Items]
Common Stock issued (shares)		7,647,350

Commitments and Contingencies -Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Operating leases for office space and equipment	$ 1,555	$ 997
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019			$ 1,763
2020			1,637
2021			1,282
2022			1,149
2023			1,061
Thereafter			1,277
Total			$ 8,169

Commitments and Contingencies - Minimum Fee Commitments (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 2,500
2020	2,866
2021	2,757
2022	3,346
2023	3,621
Thereafter	243
Total	$ 15,333

Commitments and Contingencies - Litigation (Details) $ in Thousands	Apr. 10, 2018 USD ($)
Expert Auto Litigation \| Settled Litigation \| Damages from Product Defects
Loss Contingencies [Line Items]
Legal settlement	$ 995

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Jun. 25, 2018
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net		$ 8,054	$ 0	$ 0
Percent of tax benefits payable to continuing equity owners					85.00%
Common Stock \| Class A Common Stock
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net	$ 8,054
Common Stock \| Class A Common Stock \| Affiliated Entity \| Conversion of Related Party Debt
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net	924
Unsecured Debt
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net		0	0	1,000
Notes Payable \| Affiliated Entity
Related Party Transaction [Line Items]
Notes payable, related parties		10,500	10,500
Related party interest expense		952	1,282	1,280
Junior Subordinated Notes \| Unsecured Debt \| Affiliated Entity
Related Party Transaction [Line Items]
Notes payable, related parties			6,158
Related party interest expense		457	632	831
Junior Subordinated Notes \| Unsecured Debt \| Affiliated Entity \| Repayment of Debt
Related Party Transaction [Line Items]
Debt repaid with proceeds from the Company's IPO	$ 5,234
Continuing Equity Owner \| Class B Common Stock
Related Party Transaction [Line Items]
Tax benefits due to Continuing Equity Owners		816
Axia Tech \| Affiliated Entity
Related Party Transaction [Line Items]
Net revenue from related party		$ 53	$ 27	$ 5
i3Verticals, LLC \| Affiliated Entity
Related Party Transaction [Line Items]
Ownership interest in Axia Tech (percent)		2.00%
Chief Executive Officer \| Affiliated Entity
Related Party Transaction [Line Items]
Ownership interest in Axia Tech (percent)		10.70%
Chief Financial Officer \| Affiliated Entity
Related Party Transaction [Line Items]
Ownership interest in Axia Tech (percent)		0.40%

Segments (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Segments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 84,053	$ 84,536	$ 77,698	$ 77,221	$ 71,779	$ 66,326	$ 62,135	$ 62,331	$ 323,508	$ 262,571	$ 199,644
Operating expenses
Interchange and network fees									214,543	189,112	140,998
Other costs of services									40,314	28,798	21,934
Selling general and administrative									40,585	27,194	20,393
Depreciation and amortization									11,839	10,085	9,898
Change in fair value of contingent consideration									3,866	(218)	2,458
Income from operations	3,495	$ 2,923	$ 2,596	$ 3,347	2,078	$ 2,717	$ 1,709	$ 1,096	12,361	7,600	3,963
Processing margin									83,180	56,759	45,570
Assets	175,142				139,991				175,142	139,991	100,282
Goodwill	83,954				58,517				83,954	58,517	35,056
Merchant Services
Segment Reporting Information [Line Items]
Revenue									302,929	248,005	187,720
Operating expenses
Interchange and network fees									209,695	185,141	137,801
Other costs of services									38,399	27,350	20,318
Selling general and administrative									23,291	13,858	8,970
Depreciation and amortization									9,535	8,029	8,233
Change in fair value of contingent consideration									1,772	192	2,371
Income from operations									20,237	13,435	10,027
Processing margin									68,811	47,389	37,992
Assets	58,342				113,568				58,342	113,568	73,652
Goodwill	69,666				49,173				69,666	49,173	26,553
Residual expense									13,976	11,875	8,391
Proprietary Software and Payments
Segment Reporting Information [Line Items]
Revenue									20,582	14,582	12,018
Operating expenses
Interchange and network fees									4,848	3,971	3,175
Other costs of services									1,916	1,559	1,668
Selling general and administrative									7,602	7,194	6,439
Depreciation and amortization									2,097	1,938	1,556
Change in fair value of contingent consideration									2,094	(410)	87
Income from operations									2,025	330	(907)
Processing margin									14,371	9,423	7,670
Assets	7,553				8,901				7,553	8,901	7,958
Goodwill	14,288				9,344				14,288	9,344	8,503
Residual expense									553	371	495
Other
Segment Reporting Information [Line Items]
Revenue									(3)	(16)	(94)
Operating expenses
Interchange and network fees									0	0	22
Other costs of services									(1)	(111)	(52)
Selling general and administrative									9,692	6,142	4,984
Depreciation and amortization									207	118	109
Change in fair value of contingent consideration									0	0	0
Income from operations									(9,901)	(6,165)	(5,157)
Processing margin									(2)	(53)	(92)
Assets	109,247				17,522				109,247	17,522	18,672
Goodwill	$ 0				$ 0				0	0	0
Residual expense									$ 0	$ (148)	$ (28)

Non-Controlling Interest (Details) - i3Verticals, LLC	Sep. 30, 2018 shares
Noncontrolling Interest [Line Items]
Non-controlling interest, common units (shares)	9,112,042
Non-controlling interest, ownership interest (percent)	34.60%

Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Jun. 25, 2018

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Numerator

Less: Net income attributable to non-controlling interests

$ 2,673

$ (4,961)

$ 902

$ (2,093)

1,937

Net income attributable to Class A common stockholders

736

$ 834

$ (564)

$ (6,836)

$ (332)

$ 384

$ 887

$ 48

$ (417)

$ (7,634)

$ (6,898)

$ 902

$ (2,093)

Reallocation of net income assuming conversion of common units

1,478

Net income attributable to Class A common stockholders - diluted

$ 2,214

Weighted average shares of Class A common stock outstanding (shares)

8,812,630

Weighted average effect of dilutive securities (shares)

18,061,248

Weighted average shares of Class A common stock outstanding - diluted (shares)

26,873,878

^[1]

Diluted net income per share (in USD per share)

$ 0.09

$ (0.01)

$ 0.08

^[1]

$ 0.08

$ 0.09

$ (0.01)

$ 0.08

^[1]

Class A Common Stock

Numerator

Less: Net income attributable to non-controlling interests

$ 2,673

1,937

Net income attributable to Class A common stockholders

$ 736

Weighted average shares of Class A common stock outstanding (shares)

8,812,630

Quarterly Financial Information Disclosure [Abstract]

$ 0.08

[1]	1.Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions. See Note 1 for a description of the Reorganization Transactions. See Note 18 for the calculation of income per common share.

Earnings Per Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (shares)	299,412	299,412

Significant Non-cash Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	$ 8,054	$ 0	$ 0
Equity issued as part of acquisitions' purchase consideration	104	275	665
Acquisition date fair value of contingent consideration in connection with business combinations	2,084	1,221	1,480
Replacement of 2016 Senior Secured Credit Facility with Senior Secured Credit Facility	87,525	0	0
Mezzanine Notes net settled with Mezzanine Warrant exercises	14	0	0
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	2,565	0	0
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	9,253	0	0
Preferred return on Class A Units and Redeemable Class A Units		756	764
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	904	0	0
Redeemable Class A Common Stock
Other Significant Noncash Transactions [Line Items]
Preferred return on Class A Units and Redeemable Class A Units	552	701	639
Class A Common Stock
Other Significant Noncash Transactions [Line Items]
Preferred return on Class A Units and Redeemable Class A Units	2,522	2,223	1,080
Restricted Stock
Other Significant Noncash Transactions [Line Items]
Equity issued as part of acquisitions' purchase consideration	550	0	0
Unsecured Debt
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	0	0	1,000
Junior Subordinated Notes
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	$ 0	$ 500	$ 1,000

Quarterly Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Jun. 25, 2018

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

$ 84,053

$ 84,536

$ 77,698

$ 77,221

$ 71,779

$ 66,326

$ 62,135

$ 62,331

$ 323,508

$ 262,571

$ 199,644

3,495

2,923

2,596

3,347

2,078

2,717

1,709

1,096

12,361

7,600

3,963

Net (loss) income attributable to i3 Verticals, Inc.

2,646

(6,586)

(721)

460

1,058

(497)

$ 736

$ 834

$ (564)

$ (6,836)

$ (332)

$ 384

$ 887

$ 48

$ (417)

$ (7,634)

$ (6,898)

$ 902

$ (2,093)

Basic {loss} earnings per share attributble to i3 Verticals, Inc. (in USD per share)

$ 0.09

$ (0.01)

$ 0.08

^[1]

Diluted (loss) earnings per share attributable to i3 Verticals, Inc. (in USD per share)

$ 0.08

$ 0.09

$ (0.01)

$ 0.08

^[1]

Antidilutive securities excluded from computation of earnings per share (shares)

299,412

[1]	1.Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions. See Note 1 for a description of the Reorganization Transactions. See Note 18 for the calculation of income per common share.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Subsequent Events (Details) $ in Thousands		12 Months Ended
Subsequent Events (Details) $ in Thousands	Oct. 31, 2018 USD ($) business	Sep. 30, 2016 reportable_unit
Subsequent Event [Line Items]
Number of Businesses Acquired \| reportable_unit		4
Subsequent Event
Subsequent Event [Line Items]
Number of Businesses Acquired \| business	2
Cash and proceeds from issuance of long-term debt used to fund the acquisition	$ 21,000
Contingent cash consideration	14,000
Acquisition-related costs to date	$ 79

Label	Element	Value
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	$ 788,000
EquityIssuedDuringPeriodValueWarrantsExercised	iiiv_EquityIssuedDuringPeriodValueWarrantsExercised	12,073,000
LiabilitiesUnderTaxReceivableAgreementandRelatedChangestoDeferredTaxAssetsAssociatedwithIncreasesinTaxBasis	iiiv_LiabilitiesUnderTaxReceivableAgreementandRelatedChangestoDeferredTaxAssetsAssociatedwithIncreasesinTaxBasis	144,000
Limited Liability Company (LLC) Members' Equity, Unit-based Compensation	us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation	38,000
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	9,017,000
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts	4,015,000
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	550,000
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	104,000
Noncontrolling Interest [Member]
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	60,102,000
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	15,493,000
Net Income (Loss) Attributable to Noncontrolling Interest	us-gaap_NetIncomeLossAttributableToNoncontrollingInterest	(1,937,000)
Common Stock [Member]
EquityIssuedDuringPeriodValueWarrantsExercised	iiiv_EquityIssuedDuringPeriodValueWarrantsExercised	12,218,000
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	(13,562,000)
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	104,000
Additional Paid-in Capital [Member]
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	788,000
EquityIssuedDuringPeriodValueWarrantsExercised	iiiv_EquityIssuedDuringPeriodValueWarrantsExercised	(145,000)
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	(60,102,000)
LiabilitiesUnderTaxReceivableAgreementandRelatedChangestoDeferredTaxAssetsAssociatedwithIncreasesinTaxBasis	iiiv_LiabilitiesUnderTaxReceivableAgreementandRelatedChangestoDeferredTaxAssetsAssociatedwithIncreasesinTaxBasis	144,000
Limited Liability Company (LLC) Members' Equity, Unit-based Compensation	us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation	38,000
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	804,000
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts	4,015,000
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	550,000
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	92,446,000
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(7,634,000)
Net Income (Loss) Attributable to Parent	us-gaap_NetIncomeLoss	736,000
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	43,726,000
RedeemableClassACommonMember
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	552,000
RedeemableClassACommonMember \| Retained Earnings [Member]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	552,000
Class A, Issued in Conversion [Member]
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	$ 8,054,000
Class A, Issued in Conversion [Member] \| Common Stock [Member]
Stock Issued During Period, Shares, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities	619,542
Class A, Issued in Conversion [Member] \| Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	$ 8,054,000
Class A Common, Initial Offering [Member]
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 92,447,000
Class A Common, Initial Offering [Member] \| Common Stock [Member]
Stock Issued During Period, Shares, New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	7,647,500
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 1,000
Common Class B [Member] \| Common Stock [Member]
Stock Repurchased and Retired During Period, Shares	us-gaap_StockRepurchasedAndRetiredDuringPeriodShares	383,417
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	$ 2,000
StockIssuedduringPeriodSharesReorganizationTransactions	iiiv_StockIssuedduringPeriodSharesReorganizationTransactions	17,597,223
Common Class A [Member]
IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	iiiv_IncreaseDecreaseinStockholdersEquityduetoReorganizationTransactions	$ (37,446,000)
Common Class A [Member] \| Common Stock [Member]
Stock Issued During Period, Shares, Share-based Compensation, Forfeited	us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationForfeited	7,701
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	$ (2,522,000)
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	$ 0
Stock Issued During Period, Shares, New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	27,840
StockIssuedduringPeriodSharesReorganizationTransactions	iiiv_StockIssuedduringPeriodSharesReorganizationTransactions	824,861
Common Class A [Member] \| Retained Earnings [Member]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	$ 2,522,000

DEI Document - USD ($)	12 Months Ended
DEI Document - USD ($)	Sep. 30, 2018	Dec. 05, 2018	Mar. 31, 2018
Document Information [Line Items]
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Registrant Name	i3 Verticals, Inc.
Entity Central Index Key	0001728688
Current Fiscal Year End Date	--09-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Public Float			$ 0
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		9,108,032
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		17,213,806

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Current assets
Cash and cash equivalents	$ 572	$ 955
Accounts receivable, net	12,500	8,412
Settlement assets	863	5,196
Prepaid expenses and other current assets	2,630	1,141
Total current assets	16,565	15,704
Property and equipment, net	2,958	1,420
Restricted cash	665	1,013
Capitalized software, net	3,372	3,778
Goodwill	83,954	58,517
Intangible assets, net	66,023	59,259
Other assets	1,605	300
Total assets	175,142	139,991
Current liabilities
Accounts payable	4,114	1,600
Current portion of long-term debt	5,000	4,000
Accrued expenses and other current liabilities	11,538	6,706
Settlement obligations	863	5,196
Deferred revenue	4,927	2,719
Total current liabilities	26,442	20,221
Long-term debt, less current portion and debt issuance costs, net	31,776	106,836
Other long-term liabilities	4,726	2,065
Liabilities	62,944	129,122
Commitments and contingencies (see Note 14)
Redeemable Class A units; 0 and 4,900,000 Units authorized, issued and outstanding as of June 30, 2018 and September 30, 2017, respectively		7,723
Additional paid-in-capital		36,164
Preferred Stock, Value, Issued	0
Additional paid-in-capital	38,562
Accumulated earnings (deficit)	736	(33,018)
Members' equity		3,146
Total liabilities, Redeemable Class A Units and members' / stockholders' equity (deficit)	39,301
Non-controlling interest	72,897
Members' Equity Attributable to Noncontrolling Interest		0
Total stockholders' equity	112,198
Total members' equity		3,146
Liabilities and Equity	175,142	$ 139,991
Class A Common Stock
Current liabilities
Common stock	1
Class B Common Stock
Current liabilities
Common stock	$ 2

Condensed Consolidated Balance Sheet (Unaudited) Parenthetical - $ / shares	Sep. 30, 2018	Sep. 30, 2017
Redeemable Class A Units authorized (shares)	0	4,900,000
Redeemable Class A Units issued (shares)	0	4,900,000
Redeemable Class A Units outstanding (shares)	0	4,900,000
Preferred Stock, par value (in USD per share)	$ 0.0001
Preferred Stock authorized (shares)	10,000,000
Preferred Stock issued (shares)	0
Preferred Stock outstanding (shares)	0
Class A Common Stock
Redeemable Class A Units issued (shares)		13,892,129
Redeemable Class A Units outstanding (shares)		13,892,129
Common Stock, par value (in USD per share)	$ 0.0001
Common Stock authorized (shares)	150,000,000
Common Stock issued (shares)	9,112,042
Common Stock, outstanding (shares)	9,112,042
Class B Common Stock
Common Stock, par value (in USD per share)	$ 0.0001
Common Stock authorized (shares)	40,000,000
Common Stock issued (shares)	17,213,806
Common Stock, outstanding (shares)	17,213,806

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Income Statement [Abstract]

Interchange and network fees

$ 323,508

$ 262,571

$ 199,644

Operating expenses

214,543

189,112

140,998

Other costs of services

40,314

28,798

21,934

Selling general and administrative

40,585

27,194

20,393

Depreciation and amortization

11,839

10,085

9,898

Change in fair value of contingent consideration

3,866

(218)

2,458

Total operating expenses

311,147

254,971

195,681

Change in fair value of warrant liability

12,361

7,600

3,963

Other expenses

Interest expense, net

8,498

6,936

5,900

8,487

(415)

(28)

Other income

(59)

Total other expenses

16,985

(6,521)

5,813

Provision for income taxes

(4,624)

1,079

(1,850)

337

177

243

Net (loss) income

(4,961)

902

(2,093)

Net income attributable to non-controlling interest

1,937

Net (loss) income attributable to i3 Verticals, Inc.

$ (6,898)

$ 902

$ (2,093)

Net income per share available to Class A common stockholders(1):

Basic (in USD per share)

^[1]

$ 0.08

Diluted (in USD per share)

^[1]

$ 0.08

Weighted average shares of Class A common stock outstanding(1):

Basic (shares)

^[1]

8,812,630

Diluted (shares)

^[1]

26,873,878

[1]	1.Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions. See Note 1 for a description of the Reorganization Transactions. See Note 18 for the calculation of income per common share.

Condensed Consolidated Statement of Changes in Members'/Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Class A	Redeemable Class A	Class P	Class B	Common Stock	Common Stock Class A	Common Stock Class B	Additional Paid-in Capital	Accumulated Members' Deficit/Retained Earnings	Accumulated Members' Deficit/Retained Earnings Class A	Accumulated Members' Deficit/Retained Earnings Redeemable Class A	Noncontrolling Interest
Members' Equity, beginning at Sep. 30, 2015	$ (17,611)					$ 300	$ 7,753			$ (25,664)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred return on Class A Units and Redeemable Class A Units	(764)	$ (1,080)	$ (639)				(1,080)			(764)	$ 1,080	$ (639)
Issuance of common stock	665	11,000				665	11,000
Members' Equity, ending at Sep. 30, 2016	(9,510)					965	19,765			(30,240)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity issuance costs	(68)						(68)
Net loss attributable to non-controlling interests	0
Net loss (income)	(2,093)									(2,093)
Net income (loss) attributable to i3 Verticals, Inc.	(2,093)
Preferred return on Class A Units and Redeemable Class A Units	(756)	(2,223)	$ (701)				2,223			(756)	$ (2,223)	$ (701)
Issuance of common stock	275	13,000				275	13,000
Members' Equity, ending at Sep. 30, 2017	3,146			$ 0		1,240	34,924			(33,018)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity issuance costs	(64)						$ (64)
Net loss attributable to non-controlling interests	0
Net loss (income)	902									902
Net income (loss) attributable to i3 Verticals, Inc.	902
Preferred return on Class A Units and Redeemable Class A Units		$ (2,522)
Issuance of common stock						$ 104
Purchase of common units in i3 Verticals, LLC from selling shareholder (shares)													(4,635,000)
Net loss attributable to non-controlling interests	(1,937)
Net loss (income)	(4,961)
Net income (loss) attributable to i3 Verticals, Inc.	(6,898)
Common Stock, Shares, Outstanding, ending at Sep. 30, 2018		9,112,042			17,213,806		9,112,042	17,213,806
Stockholders' Equity, ending at Sep. 30, 2018	$ 112,198						$ 1	$ 2	$ 38,562	$ 736			$ 72,897

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net (loss) income	$ (4,961)	$ 902	$ (2,093)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	11,839	10,085	9,898
Equity-based compensation	1,567	0	0
Provision for doubtful accounts	14	216	48
Amortization of deferred financing costs	1,072	453	443
Loss on disposal of assets	5	44	4
(Benefit from) provision for deferred income taxes	(682)	56	(3)
Non-cash change in fair value of warrant liability	8,487	(415)	(28)
Increase (decrease) in non-cash contingent consideration expense from original estimate	3,866	(218)	2,458
Changes in operating assets:
Accounts receivable	(2,321)	(2,432)	(1,182)
Prepaid expenses and other current assets	1,017	305	(563)
Other assets	(3,182)	9	(142)
Changes in operating liabilities:
Accounts payable	1,172	(384)	509
Accrued expenses and other current liabilities	2,040	1,515	806
Deferred revenue	(123)	388	548
Other long-term liabilities	362	40	(32)
Contingent consideration paid in excess of original estimates	(2,092)	(2,234)	(666)
Net cash provided by operating activities	18,080	8,330	10,005
Cash flows from investing activities:
Expenditures for property and equipment	(2,217)	(636)	(862)
Expenditures for capitalized software	(1,092)	(1,452)	(1,992)
Purchases of merchant portfolios and residual buyouts	(1,207)	(1,632)	0
Acquisitions of businesses, net of cash acquired	(32,362)	(44,175)	(32,277)
Acquisition of other intangibles	(1,177)	(8)	(23)
Net cash used in investing activities	(38,055)	(47,903)	(35,154)
Cash flows from financing activities:
Proceeds from revolving credit facility	27,250	56,500	55,600
Payments of revolving credit facility	(95,600)	(23,900)	(33,600)
Proceeds from notes payable to banks	24,671	0	6,500
Payments of notes payable to banks	(5,000)	(5,000)	(2,800)
Payment of notes payable to Mezzanine Lenders	(10,486)	0	0
Payment of unsecured notes payable to related and unrelated creditors	(5,489)	0	0
Payment of debt issuance costs	(266)	(254)	(876)
Proceeds from the exercise of Mezzanine Warrants and Junior Subordinated Notes Warrants	270	0	0
Proceeds from issuance of Class A common	89,506	12,500	9,000
Payments for Common Units in i3 Verticals, LLC from selling shareholder	(4,635)		0
Payment of equity issuance costs for 2017 Class A unit issuance	0	(64)	(68)
Cash paid for contingent consideration	(977)	(966)	(4,776)
Required distributions to members for tax obligations	0	(1,464)	(56)
Net cash provided by (used in) financing activities	19,244	37,352	28,924
Net (decrease) increase in cash, cash equivalents and restricted cash	(731)	(2,221)	3,775
Cash, cash equivalents and restricted cash at beginning of period	1,968	4,189	414
Cash, cash equivalents and restricted cash at end of period	1,237	1,968	4,189
Supplemental disclosure of cash flow information:
Cash paid for interest	7,881	6,288	5,386
Cash paid for income taxes	$ 483	$ 837	$ 21

Organization and Operations	12 Months Ended
Organization and Operations	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	ORGANIZATION AND OPERATIONS i3 Verticals, Inc. (the “Company”) was formed as a Delaware corporation on January 17, 2018. The Company was formed for the purpose of completing an initial public offering (“IPO”) of its Class A common stock and other related transactions in order to carry on the business of i3 Verticals, LLC and its subsidiaries. i3 Verticals, LLC was founded in 2012 and delivers seamlessly integrated payment and software solutions to small- and medium-sized businesses (“SMBs”) and organizations in strategic vertical markets. The Company’s headquarters are in Nashville, Tennessee, with operations throughout the United States. Unless the context otherwise requires, references to “we,” “us,” “our,” “i3 Verticals” and the “Company” refer to i3 Verticals, Inc. and its subsidiaries, including i3 Verticals, LLC. Initial Public Offering On June 25, 2018, the Company completed the IPO of 7,647,500 shares of its Class A common stock at a public offering price of $13.00 per share. The Company received approximately $92.5 million of net proceeds, after deducting underwriting discounts and commissions, which the Company used to purchase newly issued common units from i3 Verticals, LLC (the “Common Units”), and Common Units from a selling Common Unit holder, in each case at a price per Common Unit equal to the price per share paid by the underwriters for shares of the Company's Class A common stock in the IPO. Reorganization Transactions In connection with the IPO, the Company completed the following transactions (the “Reorganization Transactions”): •i3 Verticals, LLC amended and restated its existing limited liability company agreement to, among other things, (1) convert all existing Class A units, common units (including common units issued upon the exercise of existing warrants) and Class P units of ownership interest in i3 Verticals, LLC into either Class A voting common units of i3 Verticals, LLC (such holders of Class A voting common units referred to herein as the “Continuing Equity Owners”) or Class B non-voting common units of i3 Verticals, LLC (such holders of Class B non-voting common units referred to herein as the “Former Equity Owners”), and (2) appoint i3 Verticals, Inc. as the sole managing member of i3 Verticals, LLC upon its acquisition of Common Units in connection with the IPO; •the Company amended and restated its certificate of incorporation to provide for, among other things, Class A common stock and Class B common stock; •i3 Verticals, LLC and the Company consummated a merger among i3 Verticals, LLC, i3 Verticals, Inc. and a newly formed wholly-owned subsidiary of i3 Verticals, Inc. (“MergerSub”) whereby: (1) MergerSub merged with and into i3 Verticals, LLC, with i3 Verticals, LLC as the surviving entity; (2) Class A voting common units converted into newly issued Common Units in i3 Verticals, LLC together with an equal number of shares of Class B common stock of i3 Verticals, Inc., and (3) Class B non-voting common units converted into Class A common stock of i3 Verticals, Inc. based on a conversion ratio that provided an equitable adjustment to reflect the full value of the Class B non-voting common units; and •the Company issued shares of its Class A common stock pursuant to a voluntary private conversion of certain subordinated notes (the “Junior Subordinated Notes”) by certain related and unrelated creditors of i3 Verticals, LLC. Following the completion of the IPO and Reorganization Transactions, the Company became a holding company and its principal asset is the Common Units in i3 Verticals, LLC that it owns. i3 Verticals, Inc. operates and controls all of i3 Verticals, LLC's operations and, through i3 Verticals, LLC and its subsidiaries, conducts i3 Verticals, LLC's business. i3 Verticals, Inc. has a minority economic interest in i3 Verticals, LLC. •As of September 30, 2018, i3 Verticals, Inc. owned 34.6% of the economic interest in i3 Verticals, LLC. •As of September 30, 2018, the Continuing Equity Owners owned Common Units in i3 Verticals, LLC representing approximately 65.4% of the economic interest in i3 Verticals, LLC, shares of Class A common stock in the Company representing approximately 0.9% of the economic interest and voting power in the Company, and shares of Class B common stock in i3 Verticals, Inc., representing approximately 65.4% of the voting power in the Company. •The Continuing Equity Owners who own Common Units in i3 Verticals, LLC may redeem at each of their options (subject in certain circumstances to time-based vesting requirements) their Common Units for, at the election of i3 Verticals, LLC, cash or newly-issued shares of the Company's Class A common stock. •Combining the Class A common stock and Class B common stock, the Continuing Equity Holders hold approximately 66.3% of the economic interest and voting power in i3 Verticals, Inc. 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. As the Reorganization Transactions are considered transactions between entities under common control, the financial statements retroactively reflect the accounts of i3 Verticals, LLC for periods prior to the IPO and Reorganization Transactions.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2018

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

These consolidated financial statements include the accounts of the Company and its subsidiary companies. All significant intercompany accounts and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

Restricted Cash


	September 30, 2018		September 30, 2017
Cash and cash equivalents on consolidated balance sheet	$	572	$	955
Restricted cash	665		1,013
Total cash, cash equivalents and restricted cash on consolidated statement of cash flows	$	1,237	$	1,968

Accounts Receivable and Credit Policies

Settlement Assets and Obligations

Inventories

Property and Equipment

Capitalized Software

Acquisitions

Goodwill

For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.”

Intangible Assets

Income Taxes

Valuation of Contingent Consideration

Classification of Financial Instruments

Revenue Recognition and Deferred Revenue

Interchange and Network Fees and Other Cost of Services

The Company accounts for all governmental taxes associated with revenue transactions on a net basis.

Advertising and Promotion Costs

Equity-based Compensation

Equity-based compensation was $1,567 for the year ended September 30, 2018. There was no equity-based compensation for the years ended September 30, 2017 and 2016.

Use of Estimates

matters or the susceptibility of such matters to change, and for which the impact of the estimates and assumptions on financial condition or operating performance is material.

Contingent Consideration in Acquisitions

Goodwill

Warrant Valuation

The change in fair value of the warrant liabilities was an increase of $8,487 and a reduction of $415 and $28 for the years ended September 30, 2018, 2017 and 2016, respectively.

Recently Issued Accounting Pronouncements

period. The Company has adopted this standard as of April 1, 2018. There was no impact on the Company’s consolidated financial statements.

Credit Risk and Other Concentrations	12 Months Ended
Credit Risk and Other Concentrations	Sep. 30, 2018
Risks and Uncertainties [Abstract]
Credit Risk and Other Concentrations	CREDIT RISK AND OTHER CONCENTRATIONS The Company places its cash with high credit quality financial institutions which provide Federal Deposit Insurance Corporation insurance. The Company performs periodic evaluations of the relative credit standing of these institutions and does not expect any losses related to such concentrations. The Company’s revenues are earned by processing transactions for merchant businesses and other institutions under contract with the Company. The Company utilizes the funds settlement services of primarily six processing banks, from which most accounts receivable are remitted monthly. No single merchant accounted for more than 1.0% of the Company's revenue during the years ended September 30, 2018, 2017 and 2016. The Company believes that the loss of any single merchant would not have a material adverse effect on the Company's financial condition or results of operations. The Company uses third party payment processors, three of which facilitate more than 10% of our processing revenues for the years ended September 30, 2018, 2017, and 2016.

Acquisitions

12 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

During the years ended September 30, 2018, 2017 and 2016 the Company acquired the following intangible assets and businesses:

Residual Buyouts

Merchant Relationships Portfolio Purchase

Referral Agreements

2016 Business Combinations

Axia Payments, LLC

Acquisition-related costs for Axia were $646 and were expensed as incurred.

Other 2016 Business Combinations

Summary of 2016 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2016 were as follows:


	Axia		Other		Total
Cash and cash equivalents	$	—	$	4	$	4
Inventories	—		104		104
Property and equipment	—		67		67
Capitalized software	10		378		388
Acquired merchant relationships	15,100		1,833		16,933
Non-compete agreements	20		98		118
Trade name	1,300		95		1,395
Goodwill	12,089		3,776		15,865
Other assets	46		59		105
Total assets acquired	28,565		6,414		34,979

Deferred revenue, current	—		557		557
Net assets acquired	$	28,565	$	5,857	$	34,422

2017 Business Combinations

Fairway Payments, LLC

Acquisition-related costs for Fairway were $284 and were expensed as incurred.

Other 2017 Business Combinations

acquisitions was $6,396, including $5,175 in cash and revolving line of credit proceeds and $1,221 of contingent cash consideration.

Summary of 2017 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2017 were as follows:


	Fairway		Other		Total
Accounts receivable	$	—	$	30	$	30
Inventories	—		15		15
Prepaid expenses and other current assets	226		—		226
Property and equipment	5		57		62
Acquired merchant relationships	19,200		2,160		21,360
Non-compete agreements	40		40		80
Trade name	500		—		500
Goodwill	19,309		4,152		23,461
Total assets acquired	39,280		6,454		45,734

Deferred rent	5		—		5
Deferred revenue, current	—		58		58
Net assets acquired	$	39,275	$	6,396	$	45,671

2018 Business Combinations

Purchase of San Diego Cash Register Company, Inc.

the issuance of long-term debt from the Senior Secured Credit Facility (as defined in Note 9) and $730 of contingent cash consideration.

Acquisition-related costs for SDCR, Inc. were $293 and were expensed as incurred.

Other 2018 Business Combinations

Acquisition-related costs for the three other businesses amounted to approximately $233 and were expensed as incurred.

Summary of 2018 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2018 were as follows:


	SDCR, Inc.		Other		Total
Cash and cash equivalents	$	1,338	$	—	$	1,338
Accounts receivable	1,008		—		1,008
Settlement assets	—		350		350
Related party receivable	773		—		773
Inventories	1,318		—		1,318
Prepaid expenses and other current assets	1,176		8		1,184
Property and equipment	69		58		127
Capitalized software	—		200		200
Acquired merchant relationships	5,500		5,100		10,600
Exclusivity Agreements	—		100		100
Non-compete agreements	40		1,440		1,480
Trade name	1,340		200		1,540
Goodwill	16,523		8,914		25,437
Other assets	—		4		4
Total assets acquired	29,085		16,374		45,459

Accounts payable	1,342		—		1,342
Accrued expenses and other current liabilities	3,123		431		3,554
Settlement obligations	—		350		350
Deferred revenue, current	2,029		190		2,219
Other long-term liabilities	1,757		—		1,757
Net assets acquired	$	20,834	$	15,403	$	36,237

Pro Forma Results of Operations for 2018 Business Combinations


	Year ended September 30,
	2018		2017
Revenue	$	355,015	$	314,172
Net income (loss)	$	(4,501)	$	5,217

Property and Equipment, Net

12 Months Ended

Sep. 30, 2018

Property and Equipment, Net

PROPERTY AND EQUIPMENT, NET

A summary of the Company's property and equipment as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Computer equipment and software	2 to 3 years	$	636	$	484
Furniture and fixtures	2 to 7 years	1,299		719
Terminals	2 to 3 years	588		991
Office equipment	2 to 5 years	107		87
Automobiles	3 years	114		56
Leasehold improvements	2 to 7 years	1,506		429
Accumulated depreciation		(1,292)		(1,346)
Property and equipment, net		$	2,958	$	1,420

Depreciation expense for the years ended September 30, 2018, 2017 and 2016 amounted to $802, $875 and $648, respectively.

Capitalized Software, Net

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Capitalized Software, Net

CAPITALIZED SOFTWARE, NET

A summary of the Company's capitalized software as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Software development costs	1 to 3 years	$	6,021	$	4,846
Development in progress		389		1,125
Accumulated amortization		(3,038)		(2,193)
Capitalized software, net		$	3,372	$	3,778

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:


	Merchant Services		Proprietary Software and Payments		Other		Total
Balance at September 30, 2016 (net of accumulated impairment losses of $11,458, $0 and $0, respectively)	$	26,553	$	8,503	$	—	$	35,056
Goodwill attributable to 2017 acquisitions	22,620		841		—		23,461
Balance at September 30, 2017	49,173		9,344		—		58,517
Goodwill attributable to 2018 acquisitions	20,493		4,944		—		25,437
Balance at September 30, 2018	$	69,666	$	14,288	$	—	$	83,954

Intangible assets consisted of the following as of September 30, 2018:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	94,791	$	(34,086)	$	60,705	15 years – accelerated or straight-line
Non-compete agreements	1,890		(561)		1,329		2 to 5 years – straight-line
Website development costs	18		(14)		4		3 years – straight-line
Trade names	3,717		(1,850)		1,867		2 to 5 years – straight-line
Residual buyouts	2,043		(773)		1,270		2 years – straight-line
Referral and exclusivity agreements	915		(99)		816		1 to 10 years – straight-line
Total finite-lived intangible assets	103,374		(37,383)		65,991

Indefinite-lived intangible assets:
Trademarks	32		—		32
Total identifiable intangible assets	$	103,406	$	(37,383)	$	66,023

Intangible assets consisted of the following as of September 30, 2017:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	84,191	$	(26,855)	$	57,336	15 years – accelerated or straight-line
Non-compete agreements	446		(276)		170		2 to 3 years – straight-line
Website development costs	46		(33)		13		3 years – straight-line
Trade names	2,202		(922)		1,280		2 to 5 years – straight-line
Residual buyouts	476		(44)		432		2 years – straight-line
Total finite-lived intangible assets	87,361		(28,130)		59,231

Indefinite-lived intangible assets:
Trademarks	28		—		28
Total identifiable intangible assets	87,389		(28,130)		59,259

Amortization expense for intangible assets amounted to $9,341, $7,669 and $8,027 during the years ended September 30, 2018, 2017 and 2016, respectively.

Based on gross carrying amounts at September 30, 2018, the Company's estimate of future amortization expense for intangible assets are presented in the table below.


2019	$	8,715
2020	7,039
2021	6,051
2022	5,712
2023	4,908
Thereafter	33,566
	$	65,991

Accrued Expenses and Other Liabilities

12 Months Ended

Sep. 30, 2018

Accrued Expenses and Other Liabilities

ACCRUED EXPENSES AND OTHER LIABILITIES

A summary of the Company's accrued expenses and other current liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued wages, bonuses, commissions and vacation	$	1,975	$	1,298
Accrued interest	75		529
Accrued contingent consideration --- current portion	3,813		2,229
Tax receivable agreement liability --- current portion	25		—
Accrued tax liabilities	836		42
Customer deposits	1,333		—
Other current liabilities	3,481		2,608
Accrued expenses and other current liabilities	$	11,538	$	6,706

A summary of the Company's long-term liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued contingent consideration --- long-term portion	$	2,186	$	1,111
Warrant liabilities	—		767
Tax receivable agreement liability --- long-term	791		—
Deferred tax liability --- long-term	1,100		—
Other long-term liabilities	649		187
Total other long-term liabilities	$	4,726	$	2,065

Long-Term Debt, Net

12 Months Ended

Sep. 30, 2018

Long-Term Debt, Net

LONG-TERM DEBT, NET

A summary of long-term debt, net as of September 30, 2018 and September 30, 2017 is as follows:


	Maturity	2018		2017
Notes payable to Mezzanine Lenders	November 29, 2020	$	—	$	10,500
Unsecured notes payable to related and unrelated creditors	February 14, 2019	—		16,108
Term loans to bank under the 2016 Senior Secured Credit Facility	April 29, 2020	—		14,000
Revolving lines of credit to banks under the 2016 Senior Secured Credit Facility	April 29, 2020	—		71,600
Term loans to bank under the Senior Secured Credit Facility	October 30, 2022	35,000		—
Revolving lines of credit to banks under the Senior Secured Credit Facility	October 30, 2022	3,250		—
Debt issuance costs, net		(1,474)		(1,372)
Total long-term debt, net of issuance costs		36,776		110,836
Less current portion of long-term debt		(5,000)		(4,000)
Long-term debt, net of current portion		$	31,776	$	106,836

Term loans payable to banks and revolving lines of credit payable to banks

The 2016 Senior Secured Credit Facility was amended in July 2017 to enable the purchase of Fairway and to amend certain covenant requirements.

The 2016 Senior Secured Credit Facility was modified on October 30, 2017 and replaced by a new credit agreement (the “Senior Secured Credit Facility”), as discussed below.

Senior Secured Credit Facility

Notes to Mezzanine Lenders

Company was in compliance with such covenants as of September 30, 2017. The Mezzanine Lenders participated in the July 2017 Class A unit offerings (see Note 13).

Mezzanine Warrants

Unsecured notes payable to related and unrelated creditors

At September 30, 2017, $16,108 of the Junior Subordinated Notes remained outstanding.

Debt issuance costs

Income Taxes

12 Months Ended

Sep. 30, 2018

Income Taxes

INCOME TAXES


	Year ended September 30,
	2018		2017		2016
Current:
Federal tax expense	$	668	$	—	$	—
State tax expense	351		121		246
Deferred
Federal tax (benefit)	(685)		—		—
State tax expense (benefit)	3		56		(3)
Income tax expense	$	337	$	177	$	243

A reconciliation of income tax expense from operations computed at the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year ended September 30,
	2018						2017						2016
Expected U.S. federal income taxes at statutory rate	$	(1,139)	24.6	%	$	370	34.3	%	$	(629)	34.0	%
Partnership income not taxed at federal level	294		(6.4)	%	(1,352)		(125.3)	%	(3,103)		167.7	%
Valuation allowance	965		(20.9)	%	914		84.7	%	3,679		(198.9)	%
State and local income taxes, net of federal benefit	295		(6.4)	%	177		16.4	%	244		(13.2)	%
Nondeductible expenses	398		(8.6)	%	67		6.2	%	47		(2.5)	%
Federal tax rate change	(471)		10.2	%	—		—	%	—		—	%
Other	(5)		0.1	%	1		0.1	%	5		(0.3)	%
Income tax expense	$	337	(7.3)	%	$	177	16.4	%	$	243	(13.1)	%


	September 30,
	2018		2017
Deferred tax assets:
Investment in partnership	$	21,958	$	—
Stock-based compensation	186		—
Tax Receivable Agreement	193		—
Deferred revenue	571		—
Accrued expenses	29		3
Intangible assets	—		68
Net operating loss carryforwards	103		94
Other	33		10
Gross deferred tax assets	23,073		175
Valuation allowance	(21,360)		(93)

Deferred tax liabilities:
Intangible assets	$	(1,656)	$	—
Other	(5)		(4)
Net deferred tax asset	$	52	$	78

Tax Receivable Agreement

Fair Value Measurements

12 Months Ended

Sep. 30, 2018

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Level 1 — Quoted prices for identical instruments in active markets.

Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets.


	Mezzanine Warrants		Accrued Contingent Consideration
Balance at September 30, 2016	$	1,182	$	5,537
Change in the fair value of warrant liabilities, included in Other expenses	(415)		—
Contingent consideration accrued at time of business combination	—		1,221
Change in fair value of contingent consideration included in Operating expenses	—		(218)
Contingent consideration paid	—		(3,200)
Balance at September 30, 2017	$	767	$	3,340

Change in the fair value of warrant liabilities, included in Other expenses	8,487		—
Exercise of warrant liabilities into Common Units	(9,254)		—
Contingent consideration accrued at time of business combination	—		1,877
Change in fair value of contingent consideration included in Operating expenses	—		3,851
Contingent consideration paid	—		(3,069)
Balance at September 30, 2018	$	—	$	5,999

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity-Based Compensation

12 Months Ended

Sep. 30, 2018

Equity-Based Compensation

EQUITY-BASED COMPENSATION

A summary of equity-based compensation expense recognized during the years ended September 30, 2018, 2017 and 2016 is as follows:


	Year ended September 30,
	2018		2017		2016
TRA non-participation compensatory shares	$	741	$	—	$	—
Stock options	826		—		—
Equity-based compensation expense	$	1,567	$	—	$	—

TRA Non-Participation Compensatory Shares

Stock Options

The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:


Expected volatility⁽¹⁾	26.2	%
Expected dividend yield⁽²⁾	—	%
Expected term⁽³⁾	6 years
Risk-free interest rate⁽⁴⁾	2.8	%

_________________

1.Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.

2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future.

3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.

4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

A summary of stock option activity for the year ended September 30, 2018 is as follows:


	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	—	$	—
Granted	2,143,500	13.13
Exercised	—	—
Forfeited	(5,000)	13.00
Outstanding at end of period	2,138,500	$	13.13

Stockholders' / Members' Equity and Redeemable Class A Units

12 Months Ended

Sep. 30, 2018

Stockholders' / Members' Equity and Redeemable Class A Units

STOCKHOLDERS' / MEMBERS' EQUITY AND REDEEMABLE CLASS A UNITS

i3 Verticals, LLC Recapitalization

Redeemable Class A Units

As described in Note 1, the redeemable Class A units were converted into Common Units in i3 Verticals, LLC in connection with the Reorganization Transactions.

Class A Units, Class P Units and Common Units

Class A Units

As of September 30, 2017, there were 13,892,129 Class A units issued and outstanding.

Common Units

As of September 30, 2017, there were 1,548,722 common units issued and outstanding. Common units were generally issued in association with acquisitions.

Junior Subordinated Notes Warrants

Warrants

Expiration

Exercise Price

Junior Subordinated Notes Warrants

1,433,920

February 14, 2024

2.095

Mezzanine Warrants

Restricted Class P Units

As of September 30, 2017, there were 7,647,350 restricted Class P units issued and outstanding to certain members of the Company's Board of Directors and employees.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Leases

The Company utilizes office space and equipment under operating leases. Rent expense under these leases amounted to $1,555 and $997 during the years ended September 30, 2018 and 2017, respectively.

A summary of approximate future minimum payments under these leases as of September 30, 2018 is as follows:


Years ending September 30:
2019	$	1,763
2020	1,637
2021	1,282
2022	1,149
2023	1,061
Thereafter	1,277
Total	$	8,169

Minimum Processing Commitments


Years ending September 30:
2019	$	2,500
2020	2,866
2021	2,757
2022	3,346
2022	3,621
Thereafter	243
Total	$	15,333

Litigation

Discovery is expected to get underway soon and trial is currently set for November 19, 2019.

The Company intends to continue to vigorously defend against Starr’s claims and to continue to pursue its own counterclaim.

Other

Related Party Transactions	12 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	RELATED PARTY TRANSACTIONS Related parties held $6,158 of the Company’s Junior Subordinated Notes as of September 30, 2017. As described Note 9, 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 $457, $632 and $831 during the years ended September 30, 2018, 2017 and 2016, respectively. All lenders party to the Company’s 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 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 $952, $1,282 and $1,280 during the years ended September 30, 2018, 2017 and 2016, respectively. In April, 2016, the Company 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, the Company 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. The Company earned net revenues related to the Axia Tech Agreement of $53, $27 and $5 during the years ended September 30, 2018, 2017 and 2016 respectively. i3 Verticals, LLC, the Company's CEO and Clay Whitson, the Company's CFO, own 2.0%, 10.7% and 0.4%, respectively, of the outstanding equity of Axia Tech. In connection with our IPO, we entered into a Tax Receivable Agreement with certain non-controlling interest holders that provides for the payment by the Company to the Continuing Equity Owners of 85% of the amount of certain tax benefits, if any, that it actually realizes, or in some circumstances, is deemed to realize in its tax reporting, as a result of (i) future redemptions funded by the Company or exchanges, or deemed exchanges in certain circumstances, of Common Units of i3 Verticals, LLC for Class A common stock of i3 Verticals, Inc. or cash, and (ii) certain additional tax benefits attributable to payments made under the Tax Receivable Agreement. See Note 10 for further information. As of September 30, 2018, the total amount due under the Tax Receivable Agreement was $816.

Segments

12 Months Ended

Sep. 30, 2018

Segments

The Other category includes corporate overhead expenses, when presenting reportable segment information.


	As of and for the Year ended September 30, 2018
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	302,929	$	20,582	$	(3)	$	323,508

Operating expenses
Interchange and network fees	209,695		4,848		—		214,543
Other costs of services	38,399		1,916		(1)		40,314
Selling general and administrative	23,291		7,602		9,692		40,585
Depreciation and amortization	9,535		2,097		207		11,839
Change in fair value of contingent consideration	1,772		2,094		—		3,866
Income (loss) from operations	$	20,237	$	2,025	$	(9,901)	$	12,361

Processing margin⁽¹⁾	$	68,811	$	14,371	$	(2)	$	83,180
Total assets	$	58,342	$	7,553	$	109,247	$	175,142
Goodwill	$	69,666	$	14,288	$	—	$	83,954

__________________________


	As of and for the Year ended September 30, 2017
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	248,005	$	14,582	$	(16)	$	262,571

Operating expenses
Interchange and network fees	185,141		3,971		—		189,112
Other costs of services	27,350		1,559		(111)		28,798
Selling general and administrative	13,858		7,194		6,142		27,194
Depreciation and amortization	8,029		1,938		118		10,085
Change in fair value of contingent consideration	192		(410)		—		(218)
Income (loss) from operations	$	13,435	$	330	$	(6,165)	$	7,600

Processing margin⁽¹⁾	$	47,389	$	9,423	$	(53)	$	56,759
Total assets	$	113,568	$	8,901	$	17,522	$	139,991
Goodwill	$	49,173	$	9,344	$	—	$	58,517

__________________________


	As of and for the Year ended September 30, 2016
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	187,720	$	12,018	$	(94)	$	199,644

Operating expenses
Interchange and network fees	137,801		3,175		22		140,998
Other costs of services	20,318		1,668		(52)		21,934
Selling general and administrative	8,970		6,439		4,984		20,393
Depreciation and amortization	8,233		1,556		109		9,898
Change in fair value of contingent consideration	2,371		87		—		2,458
Income (loss) from operations	$	10,027	$	(907)	$	(5,157)	$	3,963

Processing margin(1)	$	37,992	$	7,670	$	(92)	$	45,570
Total assets	$	73,652	$	7,958	$	18,672	$	100,282
Goodwill	$	26,553	$	8,503	$	—	$	35,056

__________________________

Non-Controlling Interest	12 Months Ended
Non-Controlling Interest	Sep. 30, 2018
Noncontrolling Interest [Abstract]
Non-Controlling Interests	NON-CONTROLLING INTEREST 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 September 30, 2018, i3 Verticals, Inc. owned 9,112,042 of i3 Verticals, LLC's Common Units, representing a 34.6% economic ownership interest in i3 Verticals, LLC.

Earnings Per Share

12 Months Ended

Sep. 30, 2018

Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Year ended September 30, 2018
Basic net income per share:
Numerator
Net income⁽¹⁾	$	2,673
Less: Net income attributable to non-controlling interests	1,937
Net income attributable to Class A common stockholders	$	736
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Basic net income per share	$	0.08

Dilutive net income per share:
Numerator
Net income attributable to Class A common stockholders	$	736
Reallocation of net income assuming conversion of common units⁽³⁾	1,478
Net income attributable to Class A common stockholders - diluted	$	2,214
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Weighted average effect of dilutive securities	18,061,248
Weighted average shares of Class A common stock outstanding - diluted	26,873,878
Diluted net income per share	$	0.08

____________________

2.Excludes 299,412 restricted Class A common stock units.

Significant Non-cash Transactions

12 Months Ended

Sep. 30, 2018

Significant Non-cash Transactions

SIGNIFICANT NON-CASH TRANSACTIONS

The Company engaged in the following significant non-cash investing and financing activities during the years ended September 30, 2018, 2017, and 2016:


	Year ended September 30,
	2018		2017		2016
Conversion of unsecured note payable to related party into Class A Units	$	—	$	—	$	1,000
Exchange of Junior Subordinated Notes for Class A Units	$	—	$	500	$	1,000
Common Units issued as part of acquisitions' purchase consideration (Note 4)	$	104	$	275	$	665
Restricted Class A common stock issued as part of acquisitions' purchase consideration (Note 4)	$	550	$	—	$	—
Acquisition date fair value of contingent consideration in connection with business combinations	$	2,084	$	1,221	$	1,480
Replacement of 2016 Senior Secured Credit Facility with Senior Secured Credit Facility	$	87,525	$	—	$	—
Mezzanine Notes net settled with Mezzanine Warrant exercises	$	14	$	—	$	—
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	$	2,565	$	—	$	—
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	$	9,253	$	—	$	—
Preferred return on Redeemable Class A Units	$	552	$	701	$	639
Preferred return on Class A Units	$	2,522	$	2,223	$	1,080
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	$	904	$	—	$	—
Conversion of notes payable to related and unrelated creditors to Class A common stock	$	8,054	$	—	$	—

Quarterly Information (Unaudited)

12 Months Ended

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information (Unaudited)

QUARTERLY INFORMATION (UNAUDITED)


	Quarter ended
	December 31,		March 31,		June 30,		September 30,
Fiscal Year 2017:
Revenue	$	62,331	$	62,135	$	66,326	$	71,779
Income from operations	$	1,096	$	1,709	$	2,717	$	2,078
(Loss) income before income taxes	$	(497)	$	58	$	1,058	$	460
Net (loss) income attributable to i3 Verticals, Inc.	$	(417)	$	48	$	887	$	384
Fiscal Year 2018:
Revenue	$	77,221	$	77,698	$	84,536	$	84,053
Income from operations	$	3,347	$	2,596	$	2,923	$	3,495
(Loss) income before income taxes	$	(721)	$	(6,586)	$	37	$	2,646
Net (loss) income attributable to i3 Verticals, Inc.⁽¹⁾	$	(332)	$	(6,836)	$	(564)	$	834
Basic (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾					$	(0.01)	$	0.09
Diluted (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾⁽³⁾					$	(0.01)	$	0.09

____________________

4.Represents net loss of i3 Verticals, LLC for the periods prior to the Company's Reorganization Transactions.

6.Basic (loss) earnings per share excludes 299,412 restricted Class A common stock units from the calculation.

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On October 31, 2018, the Company completed the acquisitions of two unrelated businesses. The acquisitions expanded our software offerings in the public sector vertical market and provided technology that enhances our Burton Platform. Total purchase consideration included $21,000 in revolving line of credit proceeds. Certain provisions in the purchase agreements provide for additional consideration of up to $14,000, in the aggregate, to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreements, through no later than October 2020. The Company is in process of determining the acquisition date fair values of the liabilities for the contingent consideration based on discounted cash flow analyses. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. The effect of the acquisitions will be included in the consolidated statements of operations beginning November 1, 2018. The Company is still evaluating the allocation of the preliminary purchase consideration and pro forma results of operations. Acquisition-related costs to date for the businesses amounted to approximately $79 and will be expensed as incurred.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the reporting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”).
Principles of Consolidation	Principles of Consolidation These consolidated financial statements include the accounts of the Company and its subsidiary companies. All significant intercompany accounts and transactions have been eliminated in consolidation.
Cash, Cash Equivalents and Restricted Cash	Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers cash on hand, checking accounts, and savings accounts to be cash and cash equivalents. At times, the balance in these accounts may exceed federal insured limits. Cash equivalents are defined as financial instruments readily transferrable into cash with an original maturity less than 90 days. Restricted Cash Restricted cash represents funds held-on-deposit with processing banks pursuant to agreements to cover potential merchant losses. It is presented as long-term assets on the accompanying consolidated balance sheets since the related agreements extend beyond the next twelve months. Following the adoption of ASU 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230), the Company includes restricted cash along with the cash and cash equivalents balance for presentation in the consolidated statements of cash flows.
Accounts Receivable and Credit Policies	Accounts Receivable and Credit Policies Accounts receivable consist primarily of uncollateralized credit card processing residual payments due from processing banks requiring payment within thirty days following the end of each month. Accounts receivable also include amounts due from the sales of the Company’s technology solutions to its customers. The carrying amount of accounts receivable is reduced by an allowance for doubtful accounts, if necessary, which reflects management’s best estimate of the amounts that will not be collected. The allowance is estimated based on management’s knowledge of its customers, historical loss experience and existing economic conditions. Accounts receivable and the allowance are written-off when, in management’s opinion, all collection efforts have been exhausted.
Settlement Assets and Obligations	Settlement Assets and ObligationsSettlement assets and obligations result when funds are temporarily held or owed by the Company on behalf of merchants, consumers, schools, and other institutions. Timing differences, interchange expense, merchant reserves and exceptional items cause differences between the amount received from the card networks and the amount funded to counterparties. These balances arising in the settlement process are reflected as settlement assets and obligations on the accompanying consolidated balance sheets. With the exception of merchant reserves, settlement assets or settlement obligations are generally collected and paid within one to four days.
Inventories	Inventories Inventories consist of point-of-sale equipment to be sold to customers and are stated at the lower of cost, determined on a weighted average basis, or net realizable value.
Property and Equipment	Property and Equipment Property and equipment are stated at cost or, if acquired through a business combination or an asset acquisition, fair value at the date of acquisition. Depreciation and amortization are provided over the assets’ estimated useful lives (or, if obtained in connection with a business acquisition, over their estimated remaining useful lives) using the straight-line method, except for leasehold improvements, which are depreciated over the shorter of the estimated useful lives of the assets or the lease term. Expenditures for maintenance and repairs are expensed when incurred. Expenditures for renewals or betterments are capitalized. Management reviews long-lived assets for impairment when events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company recognizes impairment when the sum of undiscounted estimated future cash flows expected to result from the use of the asset is less than the carrying value of the asset.
Capitalized Software	Capitalized Software Development costs for software to be sold or leased to customers are capitalized once technological feasibility of the software product has been established. Costs incurred prior to establishing technological feasibility are expensed as incurred. Technological feasibility is established when the Company has completed a detailed program design and has determined that a product can be produced to meet its design specifications, including functions, features and technical performance requirements. Capitalization of costs ceases when the product is generally available to clients. Software development costs are amortized using the greater of the straight-line method or the usage method over its estimated useful life, which is generally estimated to be three years. Software development costs may become impaired in situations where development efforts are abandoned due to the viability of a planned project becoming doubtful or due to technological obsolescence of a planned software product. Management evaluates the remaining useful lives and carrying values of capitalized software at least annually or when events and circumstances warrant such a review, to determine whether significant events or changes in circumstances indicate that impairment in value may have occurred. To the extent estimated net realizable values, which are estimated to equal future undiscounted cash flows, exceed the carrying value, no impairment is necessary. If estimated net realizable values are less than the carrying values, an impairment charge is recorded. Impairment charges during the years ended September 30, 2018, 2017 and 2016 were nominal. Identifiable software technology intangible assets resulting from acquisitions are amortized using the straight-line method over periods not exceeding their remaining estimated useful lives. GAAP requires that intangible assets with estimated useful lives be amortized over their respective estimated useful lives to their residual values, and reviewed for impairment. Acquisition technology intangibles’ net book values are included in capitalized software, net in the accompanying consolidated balance sheets.
Acquisitions	Acquisitions Business acquisitions have been recorded using the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”), and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair value as of the date of acquisition. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The fair value of merchant relationships and non-compete assets acquired is identified using the Income Approach. The fair value of trade names acquired is identified using the Relief from Royalty Method. The fair value of deferred revenue is identified using the Adjusted Fulfillment Cost Method. After the purchase price has been allocated, goodwill is recorded to the extent the total consideration paid for the acquisition, including the acquisition date fair value of contingent consideration, if any, exceeds the sum of the fair values of the separately identifiable acquired assets and assumed liabilities. Acquisition costs for business combinations are expensed when incurred and recorded in selling general and administrative expenses in the accompanying consolidated statements of operations. Acquisitions not meeting the accounting criteria to be accounted for as a business combination are accounted for as an asset acquisition. An asset acquisition is recorded at its purchase price, inclusive of acquisition costs, which is allocated among the acquired assets and assumed liabilities based upon their relative fair values at the date of acquisition. The operating results of an acquisition are included in the consolidated statements of operations from the date of such acquisition.
Goodwill	Goodwill In accordance with ASC 350, Intangibles—Goodwill and Other, the Company tests goodwill for impairment for each reporting unit on an annual basis, or when events or circumstances indicate the fair value of a reporting unit is below its carrying value. The Company’s goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in business combinations. The goodwill generated from the business combinations is primarily related to the value placed on the employee workforce and expected synergies. Goodwill is tested for impairment at least annually in the fourth quarter and between annual tests if there are indicators of impairment that suggest a decline in the fair value of a reporting unit. Judgment is involved in determining if an indicator or change in circumstances relating to impairment has occurred. Such changes may include, among others, a significant decline in expected future cash flows, a significant adverse change in the business climate, and unforeseen competition. No goodwill impairment charges were recognized during the years ended September 30, 2018, 2017 and 2016. The Company has the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. The option of whether or not to perform a qualitative assessment is made annually and may vary by reporting unit. Factors the Company considers in the qualitative assessment include general macroeconomic conditions, industry and market conditions, cost factors, overall financial performance of the Company’s reporting units, events or changes affecting the composition or carrying amount of the net assets of its reporting units, sustained decrease in its share price, and other relevant entity specific events. If the Company determines not to perform the qualitative assessment or if it determines, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying value, then the Company performs a quantitative test for that reporting unit. The fair value of each reporting unit is compared to the reporting unit’s carrying value, including goodwill. Subsequent to the adoption on January 1, 2017 of Accounting Standards Update (“ASU”) No. 2017-04, Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment, if the fair value of a reporting unit is less than its carrying value, the Company recognizes an impairment equal to the excess carrying value, not to exceed the total amount of goodwill allocated to that reporting unit. For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.” The Company has determined that it has nine reporting units.
Intangible Assets	Intangible Assets Intangible assets include acquired merchant relationships, residual buyouts, referral agreements, trademarks, tradenames, website development costs and non-compete agreements. Merchant relationships represent the fair value of customer relationships purchased by the Company. Residual buyouts represent the right to not have to pay a residual to an independent sales agent related to certain future transactions with the agent’s referred merchants. Referral agreements represent the right to exclusively obtain referrals from a partner for their customers' credit card processing services. The Company amortizes definite lived identifiable intangible assets using a method that reflects the pattern in which the economic benefits of the intangible asset are expected to be consumed or otherwise utilized. The estimated useful lives of the Company’s customer-related intangible assets approximate the expected distribution of cash flows, whether straight-line or accelerated, generated from each asset. The useful lives of contract-based intangible assets are equal to the terms of the agreement. Management evaluates the remaining useful lives and carrying values of long-lived assets, including definite lived intangible assets, at least annually, or when events and circumstances warrant such a review, to determine whether significant events or changes in circumstances indicate that a change in the useful life or impairment in value may have occurred.
Income Taxes	Income Taxes i3 Verticals, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from i3 Verticals, LLC based on i3 Verticals, Inc.'s economic interest in i3 Verticals, LLC. i3 Verticals, LLC's members, including the Company, are liable for federal, state and local income taxes based on their share of i3 Verticals, LLC's pass-through taxable income. i3 Verticals, LLC is not a taxable entity for federal income tax purposes, but is subject to and reports entity level tax in both Tennessee and Texas. In addition, certain subsidiaries of i3 Verticals, LLC are corporations that are subject to state and federal income taxes. The amount provided for state income taxes is based upon the amounts of current and deferred taxes payable or refundable at the date of the consolidated financial statements as a result of all events recognized in the financial statements as measured by the provisions of enacted tax laws. Under GAAP, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.
Valuation of Contingent Consideration	Valuation of Contingent Consideration On occasion, the Company may have acquisitions which include contingent consideration. Accounting for business combinations requires the Company to estimate the fair value of any contingent purchase consideration at the acquisition date. For a discussion of the estimate methodology and the significance of various inputs, please see the subheading below titled “Use of Estimates.” Changes in estimates regarding the fair value contingent purchase consideration are reflected as adjustments to the related liability and recognized within operating expenses in the consolidated statements of operations. Short and long-term contingent liabilities are presented within accrued expenses and other current liabilities and other long-term liabilities on the Company's consolidated balance sheets, respectively.
Classification of Financial Instruments	Classification of Financial Instruments The Company classifies certain financial instruments issued as either equity or as liabilities. Determination of classification is based upon the underlying properties of the instrument.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue Revenue is recognized when it is realized or realizable and earned, in accordance with ASC 605, Revenue Recognition (“ASC 605”). Recognition occurs when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. The Company accrues for rights of refund, processing errors or penalties, or other related allowances based on historical experience. More than 85% of the Company's gross revenue for the years ended September 30, 2018, 2017 and 2016 is derived from volume-based payment processing fees (“discount fees”) and other related fixed transaction or service fees. The remainder is comprised of sales of software licensing subscriptions, ongoing support, and other POS-related solutions the Company provides to its clients directly and through its processing bank relationships. Discount fees represent a percentage of the dollar amount of each credit or debit transaction processed. Discount fees are recognized at the time the merchants’ transactions are processed. The Company follows the requirements of ASC 605-45 Revenue Recognition—Principal Agent Considerations, in determining its merchant processing services revenue reporting. Generally, where the Company has control over merchant pricing, merchant portability, credit risk and ultimate responsibility for the merchant relationship, revenues are reported at the time of sale on a gross basis equal to the full amount of the discount charged to the merchant. This amount includes interchange fees paid to card issuing banks and assessments paid to payment card networks pursuant to which such parties receive payments based primarily on processing volume for particular groups of merchants. Revenues generated from merchant portfolios where the Company does not have control over merchant pricing, liability for merchant losses or credit risk or rights of portability are reported net of interchange and other fees. Revenues are also derived from a variety of fixed transaction or service fees, including authorization fees, convenience fees, statement fees, annual fees, and fees for other miscellaneous services, such as handling chargebacks. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. Revenue from the sale of equipment is recognized upon transfer of ownership and delivery to the customer, after which there are no further performance obligations. Revenues from sales of the Company’s software licensing subscriptions are recognized when they are realized or realizable and earned. Contractual arrangements are evaluated for indications that multiple element arrangements may exist, including instances where more-than-incidental software deliverables are included. Arrangements may contain multiple elements, such as hardware, software products, maintenance, and professional installation and training services. Revenues are allocated to each element based on the selling price hierarchy. The selling price for a deliverable is based on vendor specific objective evidence of selling price, if available, third party evidence, or estimated selling price. The Company establishes estimated selling price, based on the judgment of the Company's management, considering internal factors such as margin objectives, pricing practices and controls, customer segment pricing strategies and the product life cycle. In arrangements with multiple elements, the Company determines allocation of the transaction price at inception of the arrangement based on the relative selling price of each unit of accounting. In multiple element arrangements where more-than-incidental software deliverables are included, the Company applies the residual method to determine the amount of software license revenues to be recognized. Under the residual method, if fair value exists for undelivered elements in a multiple-element arrangement, such fair value of the undelivered elements is deferred with the remaining portion of the arrangement consideration recognized upon delivery of the software license or services arrangement. The Company allocates the fair value of each element of a software-related multiple-element arrangement based upon its fair value as determined by vendor specific objective evidence of selling price, with any remaining amount allocated to the software license. If evidence of the fair value cannot be established for the undelivered elements of a software arrangement, then the entire amount of revenue under the arrangement is deferred until these elements have been delivered or objective evidence can be established. These amounts, if any, are included in deferred revenue in the consolidated balance sheets. Revenues related to software licensing subscriptions, maintenance or other support services with terms greater than one month are recognized ratably over the term of the agreement. Revenues from sales of the Company’s combined hardware and software element are recognized when they are realized or realizable and earned which has been determined to be upon the delivery of the product. Revenues derived from service fees are recognized at the time the services are performed and there are no further performance obligations. The Company’s training, installation, and repair services are recognized as revenue as these services are performed. Deferred revenue represents amounts billed to customers by the Company for services contracts. The initial prepaid contract agreement balance is deferred. The balance is then recognized as the services are provided over the contract term. Deferred revenue that is expected to be recognized as revenue within one year is recorded as short-term deferred revenue and the remaining portion is recorded as other long-term liabilities in the consolidated balance sheets. Interchange and Network Fees and Other Cost of Services Interchange and network fees consist primarily of fees that are directly related to discount fee revenue. These include interchange fees paid to issuers and assessment fees payable to card associations, which are a percentage of the processing volume the Company generates from Visa and Mastercard, as well as fees charged by card-issuing banks. Other costs of services include costs directly attributable to processing and bank sponsorship costs, which may not be based on a percentage of volume. These costs also include related costs such as residual payments to sales groups, which are based on a percentage of the net revenues generated from merchant referrals. In certain merchant processing bank relationships the Company is liable for chargebacks against a merchant equal to the volume of the transaction. Losses resulting from chargebacks against a merchant are included in other cost of services on the accompanying consolidated statement of operations. The Company evaluates its risk for such transactions and estimates its potential loss from chargebacks based primarily on historical experience and other relevant factors. The reserve for merchant losses is included within accrued expenses and other current liabilities on the accompanying consolidated balance sheets. The cost of equipment sold is also included in other cost of services. Interchange and other costs of services are recognized at the time the merchant's transactions are processed. The Company accounts for all governmental taxes associated with revenue transactions on a net basis.
Advertising and Promotion Cost	Advertising and Promotion Costs Advertising and promotion costs are expensed as incurred.
Equity-based Compensation	Equity-based Compensation The Company accounts for grants of equity awards to employees in accordance with ASC 718, Compensation—Stock Compensation. This standard requires compensation expense to be measured based on the estimated fair value of the share-based awards on the date of grant and recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the value of purchase consideration paid and identifiable assets acquired and assumed in acquisitions, goodwill and intangible asset impairment review, warrant valuation, revenue recognition for multiple element arrangements, loss reserves, assumptions used in the calculation of equity-based compensation and in the calculation of income taxes, and certain tax assets and liabilities as well as the related valuation allowances. Actual results could differ from those estimates. Below is a summary of the Company’s critical accounting estimates for which the nature of management’s assumptions are material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change, and for which the impact of the estimates and assumptions on financial condition or operating performance is material. Contingent Consideration in Acquisitions On occasion, the Company may have acquisitions that include contingent consideration. Accounting for business combinations requires the Company to estimate the fair value of any contingent purchase consideration at the acquisition date. Where relevant, the fair value of contingent consideration included in an acquisition is calculated using a Monte Carlo simulation. The contingent consideration is revalued each period until it is settled. Management reviews the historical and projected performance of each acquisition with contingent consideration and uses an income probability method to revalue the contingent consideration. The revaluation requires management to make certain assumptions and represent management's best estimate at the valuation date. The probabilities are determined based on a management review of the expected likelihood of triggering events that would cause a change in the contingent consideration paid. Goodwill The Company tests goodwill for impairment using a fair value approach at least annually, absent some triggering event that would require an interim impairment assessment. Absent any impairment indicators, the Company performs its goodwill impairment testing as of July 1 each year. Significant estimates and assumptions are used in the Company’s goodwill impairment review and include the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units and determining the fair value of each reporting unit. The Company’s assessment of qualitative factors involves significant judgments about expected future business performance and general market conditions. In a quantitative assessment, the fair value of each reporting unit is determined based on a combination of techniques, including the present value of future cash flows, applicable multiples of competitors and multiples from sales of like businesses, and requires management to make estimates and assumptions regarding discount rates, growth rates and the Company's future long-term business plans. Changes in any of these estimates or assumptions could materially affect the determination of fair value and the associated goodwill impairment charge for each reporting unit. Warrant Valuation As of September 30, 2017, there were in the aggregate 1,423,688 of warrants (the “Mezzanine Warrants”) outstanding and exercisable to purchase common units in i3 Verticals, LLC related to the issuance of the Mezzanine Notes. The Mezzanine Warrants were mandatorily redeemable and embody a conditional obligation to redeem the instrument by a transfer of assets. The Mezzanine Warrants were remeasured at each reporting date through the settlement of the instrument and changes in value were reflected in earnings. The Company used the Black-Scholes option pricing model to determine the fair market value of the Mezzanine Warrants at each reporting period. The option pricing model required the input of highly subjective assumptions, including the estimated enterprise value of the Company, expected term of the warrants, expected volatility, risk-free interest rates and discount for lack of marketability. To determine the fair value of the Mezzanine Warrants, the Company engaged an outside consultant to prepare a valuation of the unit price at each reporting date, using information provided by management and information obtained from private and public sources. The Company used an expected volatility based on the historical volatilities of a group of guideline companies and estimated a liquidity event in June 2018 to determine the term of the warrants. The risk-free interest rates were obtained from publicly available U.S. Treasury yield curve rates. The discount for lack of marketability, if any, was determined using the Finnerty Model. Based on the Company’s analysis, the most highly sensitive input in the Company's option pricing model related to management’s forecasted earnings. For example, if management’s forecasted earnings increased, the Company would have recorded additional losses from the change in fair value of warrant liability. Conversely, if management’s forecasted earnings decreased, the Company would have recorded a gain from change in fair value of warrant liability. Other inputs such as expected volatility and the risk free interest rate had a less material impact of the valuation of the warrant liability.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40). The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2021. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820). The amendments in ASU 2018-13 provide clarification and modify the disclosure requirements on fair value measurement in Topic 820, Fair Value Measurement. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2021. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting (Topic 718). The amendments in ASU 2018-07 expand the scope of Topic 718, Compensation—Stock Compensation to include share-based payments issued to nonemployees for goods or services. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2020. Early adoption is permitted, but no earlier than a company’s adoption date of ASU No. 2014-09 (defined below). The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting (Topic 718). The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company has adopted this standard as of April 1, 2018. There was no impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). The amendments in ASU 2016-18 require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The Company has adopted this standard as of July 1, 2018 and has included restricted cash along with the cash and cash equivalents balance for presentation on the consolidated statement of cash flows. The reconciliation between the consolidated balance sheet and the consolidated statements of cash flows is disclosed in the restricted cash section of this footnote. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (Topic 230). The update clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The Company has adopted this standard as of July 1, 2018. There was no impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (Topic 718). The update requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the statement of operations. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should recognize excess tax benefits, and assess the need for a valuation allowance, regardless of whether a benefit reduces taxes payable in the current period. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2018. The Company has early adopted this standard as of July 1, 2018. There was no impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU amends the existing guidance by recognizing all leases, including operating leases, with a term longer than twelve months on the balance sheet and disclosing key information about the lease arrangements. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. As a public business entity, the Company is an emerging growth company and has elected to use the extended transition period provided for such companies. As a result, the Company will not be required to adopt this ASU until October 1, 2020. The update requires modified retrospective transition, with the option to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment and elect various practical expedients. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASU No. 2014-09”). The ASU supersedes the revenue recognition requirements in ASC 605. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized, based upon the core principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires additional disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard, as amended, is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. As an emerging growth company, the Company will not be required to adopt this ASU until October 1, 2019. The amendment allows companies to use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company has formed a project team and is currently assessing the impact of the adoption of this principle on the Company’s consolidated financial statements.
Fair Value Measurement	The Company applies the provisions of ASC 820, Fair Value Measurement, which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or the price paid to transfer a liability as of the measurement date. A three-tier, fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The three levels are: Level 1 — Quoted prices for identical instruments in active markets. Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 — Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2018

Reconciliation Between Cash on the Balance Sheet and the Statement of Cash Flows

The reconciliation between the consolidated balance sheet and the consolidated statement of cash flows is as follows:


	September 30, 2018		September 30, 2017
Cash and cash equivalents on consolidated balance sheet	$	572	$	955
Restricted cash	665		1,013
Total cash, cash equivalents and restricted cash on consolidated statement of cash flows	$	1,237	$	1,968

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2018

2016 Business Combinations

Pro Forma Information


	Year ended September 30,
	2018		2017
Revenue	$	355,015	$	314,172
Net income (loss)	$	(4,501)	$	5,217

Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2016 were as follows:


	Axia		Other		Total
Cash and cash equivalents	$	—	$	4	$	4
Inventories	—		104		104
Property and equipment	—		67		67
Capitalized software	10		378		388
Acquired merchant relationships	15,100		1,833		16,933
Non-compete agreements	20		98		118
Trade name	1,300		95		1,395
Goodwill	12,089		3,776		15,865
Other assets	46		59		105
Total assets acquired	28,565		6,414		34,979

Deferred revenue, current	—		557		557
Net assets acquired	$	28,565	$	5,857	$	34,422

2017 Business Combinations

Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2017 were as follows:


	Fairway		Other		Total
Accounts receivable	$	—	$	30	$	30
Inventories	—		15		15
Prepaid expenses and other current assets	226		—		226
Property and equipment	5		57		62
Acquired merchant relationships	19,200		2,160		21,360
Non-compete agreements	40		40		80
Trade name	500		—		500
Goodwill	19,309		4,152		23,461
Total assets acquired	39,280		6,454		45,734

Deferred rent	5		—		5
Deferred revenue, current	—		58		58
Net assets acquired	$	39,275	$	6,396	$	45,671

2018 Business Combinations

Schedule of Preliminary Purchase Consideration of the Acquired Assets and Assumed Liabilities

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2018 were as follows:


	SDCR, Inc.		Other		Total
Cash and cash equivalents	$	1,338	$	—	$	1,338
Accounts receivable	1,008		—		1,008
Settlement assets	—		350		350
Related party receivable	773		—		773
Inventories	1,318		—		1,318
Prepaid expenses and other current assets	1,176		8		1,184
Property and equipment	69		58		127
Capitalized software	—		200		200
Acquired merchant relationships	5,500		5,100		10,600
Exclusivity Agreements	—		100		100
Non-compete agreements	40		1,440		1,480
Trade name	1,340		200		1,540
Goodwill	16,523		8,914		25,437
Other assets	—		4		4
Total assets acquired	29,085		16,374		45,459

Accounts payable	1,342		—		1,342
Accrued expenses and other current liabilities	3,123		431		3,554
Settlement obligations	—		350		350
Deferred revenue, current	2,029		190		2,219
Other long-term liabilities	1,757		—		1,757
Net assets acquired	$	20,834	$	15,403	$	36,237

Property and Equipment, Net (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Property and Equipment

A summary of the Company's property and equipment as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Computer equipment and software	2 to 3 years	$	636	$	484
Furniture and fixtures	2 to 7 years	1,299		719
Terminals	2 to 3 years	588		991
Office equipment	2 to 5 years	107		87
Automobiles	3 years	114		56
Leasehold improvements	2 to 7 years	1,506		429
Accumulated depreciation		(1,292)		(1,346)
Property and equipment, net		$	2,958	$	1,420

Capitalized Software, Net (Tables)

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Capitalized Computer Software

A summary of the Company's capitalized software as of September 30, 2018 and 2017 is as follows:


	Estimated Useful Life	2018		2017
Software development costs	1 to 3 years	$	6,021	$	4,846
Development in progress		389		1,125
Accumulated amortization		(3,038)		(2,193)
Capitalized software, net		$	3,372	$	3,778

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of goodwill are as follows:


	Merchant Services		Proprietary Software and Payments		Other		Total
Balance at September 30, 2016 (net of accumulated impairment losses of $11,458, $0 and $0, respectively)	$	26,553	$	8,503	$	—	$	35,056
Goodwill attributable to 2017 acquisitions	22,620		841		—		23,461
Balance at September 30, 2017	49,173		9,344		—		58,517
Goodwill attributable to 2018 acquisitions	20,493		4,944		—		25,437
Balance at September 30, 2018	$	69,666	$	14,288	$	—	$	83,954

Schedule of Finite-Lived Intangible Assets

Intangible assets consisted of the following as of September 30, 2018:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	94,791	$	(34,086)	$	60,705	15 years – accelerated or straight-line
Non-compete agreements	1,890		(561)		1,329		2 to 5 years – straight-line
Website development costs	18		(14)		4		3 years – straight-line
Trade names	3,717		(1,850)		1,867		2 to 5 years – straight-line
Residual buyouts	2,043		(773)		1,270		2 years – straight-line
Referral and exclusivity agreements	915		(99)		816		1 to 10 years – straight-line
Total finite-lived intangible assets	103,374		(37,383)		65,991

Indefinite-lived intangible assets:
Trademarks	32		—		32
Total identifiable intangible assets	$	103,406	$	(37,383)	$	66,023

Intangible assets consisted of the following as of September 30, 2017:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	84,191	$	(26,855)	$	57,336	15 years – accelerated or straight-line
Non-compete agreements	446		(276)		170		2 to 3 years – straight-line
Website development costs	46		(33)		13		3 years – straight-line
Trade names	2,202		(922)		1,280		2 to 5 years – straight-line
Residual buyouts	476		(44)		432		2 years – straight-line
Total finite-lived intangible assets	87,361		(28,130)		59,231

Indefinite-lived intangible assets:
Trademarks	28		—		28
Total identifiable intangible assets	87,389		(28,130)		59,259

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consisted of the following as of September 30, 2018:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	94,791	$	(34,086)	$	60,705	15 years – accelerated or straight-line
Non-compete agreements	1,890		(561)		1,329		2 to 5 years – straight-line
Website development costs	18		(14)		4		3 years – straight-line
Trade names	3,717		(1,850)		1,867		2 to 5 years – straight-line
Residual buyouts	2,043		(773)		1,270		2 years – straight-line
Referral and exclusivity agreements	915		(99)		816		1 to 10 years – straight-line
Total finite-lived intangible assets	103,374		(37,383)		65,991

Indefinite-lived intangible assets:
Trademarks	32		—		32
Total identifiable intangible assets	$	103,406	$	(37,383)	$	66,023

Intangible assets consisted of the following as of September 30, 2017:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	84,191	$	(26,855)	$	57,336	15 years – accelerated or straight-line
Non-compete agreements	446		(276)		170		2 to 3 years – straight-line
Website development costs	46		(33)		13		3 years – straight-line
Trade names	2,202		(922)		1,280		2 to 5 years – straight-line
Residual buyouts	476		(44)		432		2 years – straight-line
Total finite-lived intangible assets	87,361		(28,130)		59,231

Indefinite-lived intangible assets:
Trademarks	28		—		28
Total identifiable intangible assets	87,389		(28,130)		59,259

Schedule of Future Amortization Expense of Finite-lived Intangible Assets

Based on gross carrying amounts at September 30, 2018, the Company's estimate of future amortization expense for intangible assets are presented in the table below.


2019	$	8,715
2020	7,039
2021	6,051
2022	5,712
2023	4,908
Thereafter	33,566
	$	65,991

Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Accrued Expenses and Other Current Liabilities

A summary of the Company's accrued expenses and other current liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued wages, bonuses, commissions and vacation	$	1,975	$	1,298
Accrued interest	75		529
Accrued contingent consideration --- current portion	3,813		2,229
Tax receivable agreement liability --- current portion	25		—
Accrued tax liabilities	836		42
Customer deposits	1,333		—
Other current liabilities	3,481		2,608
Accrued expenses and other current liabilities	$	11,538	$	6,706

Summary of Long-term Liabilities

A summary of the Company's long-term liabilities as of September 30, 2018 and 2017 is as follows:


	2018		2017
Accrued contingent consideration --- long-term portion	$	2,186	$	1,111
Warrant liabilities	—		767
Tax receivable agreement liability --- long-term	791		—
Deferred tax liability --- long-term	1,100		—
Other long-term liabilities	649		187
Total other long-term liabilities	$	4,726	$	2,065

Long-Term Debt, Net (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Long-term Debt

A summary of long-term debt, net as of September 30, 2018 and September 30, 2017 is as follows:


	Maturity	2018		2017
Notes payable to Mezzanine Lenders	November 29, 2020	$	—	$	10,500
Unsecured notes payable to related and unrelated creditors	February 14, 2019	—		16,108
Term loans to bank under the 2016 Senior Secured Credit Facility	April 29, 2020	—		14,000
Revolving lines of credit to banks under the 2016 Senior Secured Credit Facility	April 29, 2020	—		71,600
Term loans to bank under the Senior Secured Credit Facility	October 30, 2022	35,000		—
Revolving lines of credit to banks under the Senior Secured Credit Facility	October 30, 2022	3,250		—
Debt issuance costs, net		(1,474)		(1,372)
Total long-term debt, net of issuance costs		36,776		110,836
Less current portion of long-term debt		(5,000)		(4,000)
Long-term debt, net of current portion		$	31,776	$	106,836

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Components of Income Tax Expense

It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense.


	Year ended September 30,
	2018		2017		2016
Current:
Federal tax expense	$	668	$	—	$	—
State tax expense	351		121		246
Deferred
Federal tax (benefit)	(685)		—		—
State tax expense (benefit)	3		56		(3)
Income tax expense	$	337	$	177	$	243

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax expense from operations computed at the U.S. federal statutory income tax rate to the Company’s effective income tax rate is as follows:


	Year ended September 30,
	2018						2017						2016
Expected U.S. federal income taxes at statutory rate	$	(1,139)	24.6	%	$	370	34.3	%	$	(629)	34.0	%
Partnership income not taxed at federal level	294		(6.4)	%	(1,352)		(125.3)	%	(3,103)		167.7	%
Valuation allowance	965		(20.9)	%	914		84.7	%	3,679		(198.9)	%
State and local income taxes, net of federal benefit	295		(6.4)	%	177		16.4	%	244		(13.2)	%
Nondeductible expenses	398		(8.6)	%	67		6.2	%	47		(2.5)	%
Federal tax rate change	(471)		10.2	%	—		—	%	—		—	%
Other	(5)		0.1	%	1		0.1	%	5		(0.3)	%
Income tax expense	$	337	(7.3)	%	$	177	16.4	%	$	243	(13.1)	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred taxes as of September 30, 2018 and 2017 were as follows:


	September 30,
	2018		2017
Deferred tax assets:
Investment in partnership	$	21,958	$	—
Stock-based compensation	186		—
Tax Receivable Agreement	193		—
Deferred revenue	571		—
Accrued expenses	29		3
Intangible assets	—		68
Net operating loss carryforwards	103		94
Other	33		10
Gross deferred tax assets	23,073		175
Valuation allowance	(21,360)		(93)

Deferred tax liabilities:
Intangible assets	$	(1,656)	$	—
Other	(5)		(4)
Net deferred tax asset	$	52	$	78

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2018

Changes in Level 3 Financial Instruments Measured on a Recurring Basis

The following tables present the changes in the Company's Level 3 financial instruments that are measured at fair value on a recurring basis.


	Mezzanine Warrants		Accrued Contingent Consideration
Balance at September 30, 2016	$	1,182	$	5,537
Change in the fair value of warrant liabilities, included in Other expenses	(415)		—
Contingent consideration accrued at time of business combination	—		1,221
Change in fair value of contingent consideration included in Operating expenses	—		(218)
Contingent consideration paid	—		(3,200)
Balance at September 30, 2017	$	767	$	3,340

Change in the fair value of warrant liabilities, included in Other expenses	8,487		—
Exercise of warrant liabilities into Common Units	(9,254)		—
Contingent consideration accrued at time of business combination	—		1,877
Change in fair value of contingent consideration included in Operating expenses	—		3,851
Contingent consideration paid	—		(3,069)
Balance at September 30, 2018	$	—	$	5,999

Equity-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Equity-Based Compensation Expense

A summary of equity-based compensation expense recognized during the years ended September 30, 2018, 2017 and 2016 is as follows:


	Year ended September 30,
	2018		2017		2016
TRA non-participation compensatory shares	$	741	$	—	$	—
Stock options	826		—		—
Equity-based compensation expense	$	1,567	$	—	$	—

Fair Value of Stock Option Awards

The fair value of stock option awards was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:


Expected volatility⁽¹⁾	26.2	%
Expected dividend yield⁽²⁾	—	%
Expected term⁽³⁾	6 years
Risk-free interest rate⁽⁴⁾	2.8	%

_________________

1.Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.

2.The Company has assumed a dividend yield of zero as management has no plans to declare dividends in the foreseeable future.

3.Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.

4.The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.

Summary of Stock Option Activity

A summary of stock option activity for the year ended September 30, 2018 is as follows:


	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	—	$	—
Granted	2,143,500	13.13
Exercised	—	—
Forfeited	(5,000)	13.00
Outstanding at end of period	2,138,500	$	13.13

Stockholders' / Members' Equity and Redeemable Class A Units (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Warrants

Warrants

Expiration

Exercise Price

Junior Subordinated Notes Warrants

1,433,920

February 14, 2024

2.095

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Approximate Future Minimum Rental Payments for Operating Leases

A summary of approximate future minimum payments under these leases as of September 30, 2018 is as follows:


Years ending September 30:
2019	$	1,763
2020	1,637
2021	1,282
2022	1,149
2023	1,061
Thereafter	1,277
Total	$	8,169

Minimum Fee Commitments

As of September 30, 2018, such minimum fee commitments were as follows:


Years ending September 30:
2019	$	2,500
2020	2,866
2021	2,757
2022	3,346
2022	3,621
Thereafter	243
Total	$	15,333

Segments (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Reportable Segment Performance


	As of and for the Year ended September 30, 2018
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	302,929	$	20,582	$	(3)	$	323,508

Operating expenses
Interchange and network fees	209,695		4,848		—		214,543
Other costs of services	38,399		1,916		(1)		40,314
Selling general and administrative	23,291		7,602		9,692		40,585
Depreciation and amortization	9,535		2,097		207		11,839
Change in fair value of contingent consideration	1,772		2,094		—		3,866
Income (loss) from operations	$	20,237	$	2,025	$	(9,901)	$	12,361

Processing margin⁽¹⁾	$	68,811	$	14,371	$	(2)	$	83,180
Total assets	$	58,342	$	7,553	$	109,247	$	175,142
Goodwill	$	69,666	$	14,288	$	—	$	83,954

__________________________


	As of and for the Year ended September 30, 2017
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	248,005	$	14,582	$	(16)	$	262,571

Operating expenses
Interchange and network fees	185,141		3,971		—		189,112
Other costs of services	27,350		1,559		(111)		28,798
Selling general and administrative	13,858		7,194		6,142		27,194
Depreciation and amortization	8,029		1,938		118		10,085
Change in fair value of contingent consideration	192		(410)		—		(218)
Income (loss) from operations	$	13,435	$	330	$	(6,165)	$	7,600

Processing margin⁽¹⁾	$	47,389	$	9,423	$	(53)	$	56,759
Total assets	$	113,568	$	8,901	$	17,522	$	139,991
Goodwill	$	49,173	$	9,344	$	—	$	58,517

__________________________


	As of and for the Year ended September 30, 2016
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	187,720	$	12,018	$	(94)	$	199,644

Operating expenses
Interchange and network fees	137,801		3,175		22		140,998
Other costs of services	20,318		1,668		(52)		21,934
Selling general and administrative	8,970		6,439		4,984		20,393
Depreciation and amortization	8,233		1,556		109		9,898
Change in fair value of contingent consideration	2,371		87		—		2,458
Income (loss) from operations	$	10,027	$	(907)	$	(5,157)	$	3,963

Processing margin(1)	$	37,992	$	7,670	$	(92)	$	45,570
Total assets	$	73,652	$	7,958	$	18,672	$	100,282
Goodwill	$	26,553	$	8,503	$	—	$	35,056

__________________________

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Reconciliations of the Numerators and Denominators Used to Compute Basic and Diluted Earnings Per Share

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:


	Year ended September 30, 2018
Basic net income per share:
Numerator
Net income⁽¹⁾	$	2,673
Less: Net income attributable to non-controlling interests	1,937
Net income attributable to Class A common stockholders	$	736
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Basic net income per share	$	0.08

Dilutive net income per share:
Numerator
Net income attributable to Class A common stockholders	$	736
Reallocation of net income assuming conversion of common units⁽³⁾	1,478
Net income attributable to Class A common stockholders - diluted	$	2,214
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	8,812,630
Weighted average effect of dilutive securities	18,061,248
Weighted average shares of Class A common stock outstanding - diluted	26,873,878
Diluted net income per share	$	0.08

____________________

2.Excludes 299,412 restricted Class A common stock units.

Significant Non-cash Transactions (Tables)

12 Months Ended

Sep. 30, 2018

Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]

Schedule of Significant Noncash Transactions

The Company engaged in the following significant non-cash investing and financing activities during the years ended September 30, 2018, 2017, and 2016:


	Year ended September 30,
	2018		2017		2016
Conversion of unsecured note payable to related party into Class A Units	$	—	$	—	$	1,000
Exchange of Junior Subordinated Notes for Class A Units	$	—	$	500	$	1,000
Common Units issued as part of acquisitions' purchase consideration (Note 4)	$	104	$	275	$	665
Restricted Class A common stock issued as part of acquisitions' purchase consideration (Note 4)	$	550	$	—	$	—
Acquisition date fair value of contingent consideration in connection with business combinations	$	2,084	$	1,221	$	1,480
Replacement of 2016 Senior Secured Credit Facility with Senior Secured Credit Facility	$	87,525	$	—	$	—
Mezzanine Notes net settled with Mezzanine Warrant exercises	$	14	$	—	$	—
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	$	2,565	$	—	$	—
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	$	9,253	$	—	$	—
Preferred return on Redeemable Class A Units	$	552	$	701	$	639
Preferred return on Class A Units	$	2,522	$	2,223	$	1,080
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	$	904	$	—	$	—
Conversion of notes payable to related and unrelated creditors to Class A common stock	$	8,054	$	—	$	—

Quarterly Information (Tables)

12 Months Ended

Sep. 30, 2018

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information


	Quarter ended
	December 31,		March 31,		June 30,		September 30,
Fiscal Year 2017:
Revenue	$	62,331	$	62,135	$	66,326	$	71,779
Income from operations	$	1,096	$	1,709	$	2,717	$	2,078
(Loss) income before income taxes	$	(497)	$	58	$	1,058	$	460
Net (loss) income attributable to i3 Verticals, Inc.	$	(417)	$	48	$	887	$	384
Fiscal Year 2018:
Revenue	$	77,221	$	77,698	$	84,536	$	84,053
Income from operations	$	3,347	$	2,596	$	2,923	$	3,495
(Loss) income before income taxes	$	(721)	$	(6,586)	$	37	$	2,646
Net (loss) income attributable to i3 Verticals, Inc.⁽¹⁾	$	(332)	$	(6,836)	$	(564)	$	834
Basic (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾					$	(0.01)	$	0.09
Diluted (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾⁽³⁾					$	(0.01)	$	0.09

____________________

4.Represents net loss of i3 Verticals, LLC for the periods prior to the Company's Reorganization Transactions.

6.Basic (loss) earnings per share excludes 299,412 restricted Class A common stock units from the calculation.

Organization and Operations (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 25, 2018	Sep. 30, 2018
IPO
Subsidiary, Sale of Stock [Line Items]
Shares issued (shares)	7,647,500
Public offering price (in USD per share)	$ 13.00
Net proceeds from IPO	$ 92.5
i3Verticals, LLC
Subsidiary, Sale of Stock [Line Items]
Non-controlling interest, ownership interest (percent)		34.60%
Class A Common and Class B Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)		66.30%
Class B Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)		65.40%
Class A Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)		0.90%

Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2018 USD ($) reportable_unit	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Concentration Risk [Line Items]
Cash and cash equivalents on consolidated balance sheet	$ 572	$ 955
Restricted cash	665	1,013
Total cash and cash equivalents on consolidated statement of cash flows	1,237	1,968	$ 4,189	$ 414
Allowance for doubtful accounts	205	211
Settlement assets	863	5,196
Inventories	930	454
Impairment charges	0	0	0
Goodwill impairment	0	0	$ 0
Revenue from acquisitions	24,568
Net income from acquisitions	1,782
Discount fees as percent of gross revenue (percent)			85.00%
Advertising expense	765	654	$ 413
Equity-based compensation expense	$ 1,567	0	0
Number of reporting units \| reportable_unit	9
Change in fair value of warrant liability	$ 8,487	$ (415)	$ (28)
Product Concentration Risk \| Gross Revenue
Concentration Risk [Line Items]
Discount fees as percent of gross revenue (percent)	85.00%	85.00%
Unsecured Debt \| Mezzanine Warrants
Concentration Risk [Line Items]
Warrants outstanding (shares) \| shares		1,423,688
Fair market value of warrants		$ 767

Credit Risk and Other Concentrations (Details)	12 Months Ended
Credit Risk and Other Concentrations (Details)	Sep. 30, 2018 reportable_unit customer	Sep. 30, 2017 customer payment_processor	Sep. 30, 2016 customer payment_processor
Concentration Risk [Line Items]
Concentration risk (percent)			85.00%
Gross Revenue \| Supplier Concentration Risk
Concentration Risk [Line Items]
Number of third party payment processors	3	3	3
Concentration risk (percent)	10.00%	10.00%	10.00%
Gross Revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Number of customers	0	0	0
Concentration risk (percent)	1.00%	1.00%	1.00%

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Residual buyouts
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 1,567	$ 476
Estimated amortization period	2 years
Referral agreement
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 815
Estimated amortization period	5 years

Acquisitions (Details) $ in Thousands					12 Months Ended
Acquisitions (Details) $ in Thousands	Oct. 31, 2017 USD ($)	Aug. 01, 2017 USD ($)	Mar. 31, 2017 USD ($)	Apr. 01, 2016 USD ($)	Sep. 30, 2018 USD ($) business	Sep. 30, 2017 USD ($) business	Sep. 30, 2016 USD ($) reportable_unit
Business Acquisition [Line Items]
Number of Businesses Acquired \| reportable_unit							4
Common units issued to seller					$ 104	$ 275	$ 665
Cash and cash equivalents					1,338		4
Accounts receivable					1,008	30
Settlement assets					350
Related party receivable					773
Inventories					1,318	15	104
Prepaid expenses and other current assets					1,184	226
Property and equipment					127	62	67
Other assets					4		105
Goodwill					83,954	58,517	35,056
Total assets acquired					45,459	45,734	34,979
Accounts payable					1,342
Accrued expenses and other current liabilities					3,554
Settlement obligations					350
Deferred rent						5
Deferred revenue, current					2,219	58	557
Other long-term liabilities					1,757
Net assets acquired					36,237	45,671	34,422
2016 Business Combinations
Business Acquisition [Line Items]
Goodwill							15,865
Axia Payments, LLC
Business Acquisition [Line Items]
Common units issued to seller				$ 665
Total purchase consideration				28,565
Cash and cash equivalents							0
Inventories							0
Property and equipment							0
Other assets							46
Goodwill							12,089
Total assets acquired							28,565
Deferred revenue, current							0
Net assets acquired							$ 28,565
Estimated amortization period							14 years
Acquisition-related costs				$ 646
Other 2016 Business Combinations
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition							$ 4,377
Contingent cash consideration							1,480
Total purchase consideration							5,857
Cash and cash equivalents							4
Inventories							104
Property and equipment							67
Other assets							59
Goodwill							3,776
Total assets acquired							6,414
Deferred revenue, current							557
Net assets acquired							$ 5,857
Estimated amortization period							14 years
Acquisition-related costs							$ 201
Potential additional consideration							3,250
2017 Business Combinations
Business Acquisition [Line Items]
Goodwill						23,461
2018 Business Combinations
Business Acquisition [Line Items]
Goodwill					$ 25,437
Merchant Relationships Portfolio Purchase
Business Acquisition [Line Items]
Total purchase consideration			$ 1,156
Estimated amortization period			15 years
Acquisition-related costs			$ 56
Other 2018 Business Combinations
Business Acquisition [Line Items]
Number of Businesses Acquired \| business					4
Common units issued to seller					$ 550
Proceeds from issuance of long-term debt used to fund the acquisition					13,700
Contingent cash consideration					1,354
Total purchase consideration					15,604
Cash and cash equivalents					0
Accounts receivable					0
Settlement assets					350
Related party receivable					0
Inventories					0
Prepaid expenses and other current assets					8
Property and equipment					58
Other assets					4
Goodwill					8,914
Total assets acquired					16,374
Accounts payable					0
Accrued expenses and other current liabilities					431
Settlement obligations					350
Deferred revenue, current					190
Other long-term liabilities					0
Net assets acquired					$ 15,403
Estimated amortization period					12 years
Acquisition-related costs					$ 233
Potential additional consideration					11,800
Fairway Payments, LLC
Business Acquisition [Line Items]
Common units issued to seller		$ 275
Total purchase consideration		$ 39,275
Accounts receivable						0
Inventories						0
Prepaid expenses and other current assets						226
Property and equipment						5
Goodwill						19,309
Total assets acquired						39,280
Deferred rent						5
Deferred revenue, current						0
Net assets acquired						39,275
Estimated amortization period		15 years
Acquisition-related costs						$ 284
Other 2017 Business Combinations
Business Acquisition [Line Items]
Number of Businesses Acquired \| business						3
Proceeds from issuance of long-term debt used to fund the acquisition						$ 5,175
Contingent cash consideration						1,221
Total purchase consideration						6,396
Accounts receivable						30
Inventories						15
Prepaid expenses and other current assets						0
Property and equipment						57
Goodwill						4,152
Total assets acquired						6,454
Deferred rent						0
Deferred revenue, current						58
Net assets acquired						$ 6,396
Estimated amortization period						15 years
Acquisition-related costs						$ 184
Potential additional consideration						4,700
San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition	$ 20,000
Contingent cash consideration	730
Total purchase consideration	$ 20,834
Cash and cash equivalents					1,338
Accounts receivable					1,008
Settlement assets					0
Related party receivable					773
Inventories					1,318
Prepaid expenses and other current assets					1,176
Property and equipment					69
Other assets					0
Goodwill					16,523
Total assets acquired					29,085
Accounts payable					1,342
Accrued expenses and other current liabilities					3,123
Deferred revenue, current					2,029
Other long-term liabilities					1,757
Net assets acquired					20,834
Estimated amortization period	11 years
Acquisition-related costs	$ 293
Potential additional consideration	2,400
i3Verticals, LLC \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Common units issued to seller	$ 104
Exclusivity agreements
Business Acquisition [Line Items]
Intangible assets					100
Exclusivity agreements \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 100
Estimated amortization period					10 years
Exclusivity agreements \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					$ 0
Capitalized software
Business Acquisition [Line Items]
Intangible assets					200		388
Capitalized software \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							10
Capitalized software \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							378
Capitalized software \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					200
Capitalized software \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					0
Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets					10,600	21,360	16,933
Acquired merchant relationships \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							$ 15,100
Estimated amortization period							15 years
Acquired merchant relationships \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 1,833
Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					5,100
Acquired merchant relationships \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets						19,200
Estimated amortization period		15 years
Acquired merchant relationships \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets						2,160
Acquired merchant relationships \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					5,500
Estimated amortization period	12 years
Non-compete agreements
Business Acquisition [Line Items]
Intangible assets					1,480	80	118
Non-compete agreements \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							$ 20
Estimated amortization period							3 years
Non-compete agreements \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 98
Non-compete agreements \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 1,440
Estimated amortization period					5 years
Non-compete agreements \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets						40
Estimated amortization period		3 years
Non-compete agreements \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets						40
Non-compete agreements \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					$ 40
Estimated amortization period	2 years
Trade name
Business Acquisition [Line Items]
Intangible assets					1,540	500	1,395
Trade name \| Axia Payments, LLC
Business Acquisition [Line Items]
Intangible assets							$ 1,300
Estimated amortization period							3 years
Trade name \| Other 2016 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 95
Trade name \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 200
Estimated amortization period					5 years
Trade name \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets						500
Estimated amortization period		3 years
Trade name \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets						$ 0
Trade name \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets					$ 1,340
Estimated amortization period	5 years
Minimum \| Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Estimated amortization period					12 years
Maximum \| Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Estimated amortization period					15 years

Acquisitions - Pro Forma Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Business Combinations [Abstract]
Revenue	$ 355,015	$ 314,172
Net income (loss)	$ (4,501)	$ 5,217

Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ (1,292)	$ (1,346)
Property, Plant and Equipment, Net, Total	2,958	1,420
Depreciation expense	802	875	$ 648
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment	636	484
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	1,299	719
Terminals
Property, Plant and Equipment [Line Items]
Property and equipment	588	991
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	107	87
Automobiles
Property, Plant and Equipment [Line Items]
Property and equipment	$ 114	56
Estimated Useful Life	3 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,506	$ 429
Minimum \| Computer equipment and software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Terminals
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Office equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Maximum \| Computer equipment and software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Maximum \| Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years
Maximum \| Terminals
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Maximum \| Office equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Maximum \| Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years

Capitalized Software, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (3,038)	$ (2,193)
Capitalized software, net	3,372	3,778
Software capitalized during the period	1,292	1,452
Amortization expense	1,696	1,541	$ 1,223
Software development costs
Finite-Lived Intangible Assets [Line Items]
Capitalized software	6,021	4,846
Development in progress
Finite-Lived Intangible Assets [Line Items]
Capitalized software	$ 389	$ 1,125
Maximum \| Software development costs
Finite-Lived Intangible Assets [Line Items]
Amortization life	3 years
Minimum \| Software development costs
Finite-Lived Intangible Assets [Line Items]
Amortization life	1 year

Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Goodwill [Roll Forward]
Goodwill, beginning	$ 58,517	$ 35,056
Goodwill attributable acquisitions	25,437	23,461
Goodwill, ending	83,954	58,517
Merchant Services
Goodwill [Roll Forward]
Goodwill, beginning	49,173	26,553
Goodwill attributable acquisitions	20,493	22,620
Goodwill, ending	69,666	49,173
Accumulated impairment losses			$ 11,458
Proprietary Software and Payments
Goodwill [Roll Forward]
Goodwill, beginning	9,344	8,503
Goodwill attributable acquisitions	4,944	841
Goodwill, ending	14,288	9,344
Accumulated impairment losses			0
Other
Goodwill [Roll Forward]
Goodwill, beginning	0	0
Goodwill attributable acquisitions	0	0
Goodwill, ending	$ 0	$ 0
Accumulated impairment losses			$ 0

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 103,374	$ 87,361
Finite-lived intangible assets, accumulated amortization	(37,383)	(28,130)
Finite-lived intangible assets, carrying value	65,991	59,231
Indefinite-lived Intangible Assets		28
Total identifiable intangible assets, cost	103,406	87,389
Total identifiable intangible assets, carrying value	66,023	59,259
Amortization expense of intangible assets	9,341	7,669	$ 8,027
Trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets	32
Merchant relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	94,791	84,191
Finite-lived intangible assets, accumulated amortization	(34,086)	(26,855)
Finite-lived intangible assets, carrying value	$ 60,705	$ 57,336
Amortization life	15 years	15 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 1,890	$ 446
Finite-lived intangible assets, accumulated amortization	(561)	(276)
Finite-lived intangible assets, carrying value	$ 1,329	$ 170
Non-compete agreements \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	2 years	2 years
Non-compete agreements \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	5 years	3 years
Website development costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 18	$ 46
Finite-lived intangible assets, accumulated amortization	(14)	(33)
Finite-lived intangible assets, carrying value	$ 4	$ 13
Amortization life	3 years	3 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 3,717	$ 2,202
Finite-lived intangible assets, accumulated amortization	(1,850)	(922)
Finite-lived intangible assets, carrying value	$ 1,867	$ 1,280
Trade names \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	2 years	2 years
Trade names \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	5 years	5 years
Residual buyouts
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 2,043	$ 476
Finite-lived intangible assets, accumulated amortization	(773)	(44)
Finite-lived intangible assets, carrying value	$ 1,270	$ 432
Amortization life	2 years	2 years
Referral and exclusivity
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 915
Finite-lived intangible assets, accumulated amortization	(99)
Finite-lived intangible assets, carrying value	$ 816
Referral and exclusivity \| Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization life	1 year
Referral and exclusivity \| Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization life	10 years

Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 8,715
2020	7,039
2021	6,051
2022	5,712
2023	4,908
Thereafter	33,566
Finite-lived intangible assets, carrying value	$ 65,991	$ 59,231

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Accrued expenses and other current liabilities:
Accrued wages, bonuses, commissions and vacation	$ 1,975	$ 1,298
Accrued interest	75	529
Accrued contingent consideration - current portion	3,813	2,229
Tax receivable agreement liablility - current portion	25	0
Accrued tax liabilities	836	42
Customer deposits	1,333	0
Other current liabilities	3,481	2,608
Accrued Liabilities, Current, Total	11,538	6,706
Long-term Liabilities
Accrued contingent consideration - long-term portion	2,186	1,111
Warrant liabilities	0	767
Tax receivable agreement liability - long-term	791	0
Deferred tax liability - long-term	1,100	0
Other long-term liabilities	649	187
Total other long-term liabilities	$ 4,726	$ 2,065

Long-Term Debt, Net - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Debt issuance costs, net	$ (1,474)	$ (1,372)
Total long-term debt, net of issuance costs	36,776	110,836
Less current portion of long-term debt	(5,000)	(4,000)
Long-term debt, net of current portion	31,776	106,836
Notes Payable \| Notes payable to Mezzanine Lenders
Debt Instrument [Line Items]
Long-term debt	0	10,500
Unsecured Debt \| Unsecured notes payable to related and unrelated creditors
Debt Instrument [Line Items]
Long-term debt	0	16,108
Secured Debt \| Term loans to bank under the 2016 Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	0	14,000
Secured Debt \| Term loans to bank under the Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	35,000	0
Line of Credit \| Revolving lines of credit to banks under the 2016 Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	0	71,600
Line of Credit \| Revolving lines of credit to banks under the Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 3,250	$ 0

Long-Term Debt, Net - Additional Information (Details)		1 Months Ended			12 Months Ended
Long-Term Debt, Net - Additional Information (Details)	Jun. 30, 2018	Jun. 30, 2018 USD ($)	Jul. 31, 2017 USD ($)	Jul. 31, 2016 USD ($)	Sep. 30, 2018 USD ($) shares	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2016 USD ($)	Jun. 25, 2018 USD ($)	Oct. 30, 2017 USD ($)	Dec. 31, 2014	Sep. 30, 2014 USD ($)	Dec. 31, 2013 USD ($) lender
Debt Instrument [Line Items]
Debt converted to shares issued					$ 8,054,000	$ 0	$ 0
Debt issuance costs					1,170,000	254,000
Amortization of deferred debt issuance costs					1,072,000	453,000	443,000
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Remaining borrowing capacity						8,400,000
Unsecured Debt
Debt Instrument [Line Items]
Debt converted to shares issued					0	$ 0	$ 1,000,000
2016 Senior Secured Credit Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity				$ 80,000,000
2016 Senior Secured Credit Facility \| Secured Debt
Debt Instrument [Line Items]
Original principal amount				19,000,000
Unused commitment fee (percent)						0.30%
Quarterly principal payment				1,000,000
Debt covenant, equity repurchase limit from employees, directors, officers or consultants				$ 1,500,000
Debt covenant, dividend or distribution limit as percent of net cash proceeds from additional common equity issuance (percent)				5.00%
2016 Senior Secured Credit Facility \| Secured Debt \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)						1.50%
2016 Senior Secured Credit Facility \| Secured Debt \| Prime Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				0.50%
2016 Senior Secured Credit Facility \| Secured Debt \| Prime Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				2.00%
2016 Senior Secured Credit Facility \| Secured Debt \| 30-day LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)						4.50%
2016 Senior Secured Credit Facility \| Secured Debt \| 30-day LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				3.50%
2016 Senior Secured Credit Facility \| Secured Debt \| 30-day LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)				5.00%
Term loans to bank under the Senior Secured Credit Facility \| Secured Debt
Debt Instrument [Line Items]
Original principal amount									$ 40,000,000
Long-term debt					35,000,000	$ 0
Revolving lines of credit to banks under the Senior Secured Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Long-term debt					3,250,000	0
Senior Secured Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity									$ 110,000,000
Unused commitment fee (percent)	0.15%
Quarterly principal payment					1,250,000
Remaining borrowing capacity					106,750,000
Debt covenant, equity repurchase limit from employees, directors, officers or consultants					$ 1,500,000
Debt covenant, dividend or distribution limit as percent of net cash proceeds from additional common equity issuance (percent)					5.00%
Senior Secured Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Unused commitment fee (percent)					0.15%
Senior Secured Credit Facility \| Line of Credit \| Maximum
Debt Instrument [Line Items]
Unused commitment fee (percent)					0.30%
Senior Secured Credit Facility \| Line of Credit \| Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%
Senior Secured Credit Facility \| Line of Credit \| Prime Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					0.50%
Senior Secured Credit Facility \| Line of Credit \| Prime Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					2.00%
Senior Secured Credit Facility \| Line of Credit \| 30-day LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.75%
Senior Secured Credit Facility \| Line of Credit \| 30-day LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					2.75%
Senior Secured Credit Facility \| Line of Credit \| 30-day LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					4.00%
Notes payable to Mezzanine Lenders \| Notes Payable
Debt Instrument [Line Items]
Original principal amount												$ 10,500,000
Number of creditors \| lender												3
Stated interest rate (percent)												12.00%
Write off of unamortized debt issuance costs		$ 78,000
Warrants outstanding (shares) \| shares					1,423,688
Intrinsic value of warrants						$ 767,000		$ 9,241,000
Warrant exercise price (in USD per share) \| $ / shares						$ 0.01
Long-term debt					$ 0	$ 10,500,000
Junior Subordinated Notes \| Unsecured Debt
Debt Instrument [Line Items]
Original principal amount											$ 17,608,000
Stated interest rate (percent)										10.00%
Write off of unamortized debt issuance costs		43,000
Warrants outstanding (shares) \| shares					1,433,920
Long-term debt					$ 0	$ 16,108,000
Common Stock \| Junior Subordinated Notes \| Unsecured Debt
Debt Instrument [Line Items]
Debt converted to shares issued			$ 500,000
Class A Common Stock \| Common Stock
Debt Instrument [Line Items]
Debt converted to shares issued		$ 8,054,000

Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
Income Tax Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Current:
Federal tax expense	$ 668	$ 0	$ 0
State tax expense	351	121	246
Deferred:
Federal tax (benefit)	(685)	0	0
State tax expense (benefit)	3	56	(3)
Income tax expense	$ 337	$ 177	$ 243

Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Expected U.S. federal income taxes at statutory rate (percent)	24.60%	34.30%	34.00%
Partnership income not taxed at Partnership level (percent)	(6.40%)	(125.30%)	167.70%
Valuation allowance (percent)	(20.90%)	84.70%	(198.90%)
State and local income taxes, net of federal benefit (percent)	(6.40%)	16.40%	(13.20%)
Nondeductible expenses (percent)	(8.60%)	6.20%	(2.50%)
Federal tax rate change (percent)	10.20%	0.00%	0.00%
Other (percent)	0.10%	0.10%	(0.30%)
Income tax expense (percent)	(7.30%)	16.40%	(13.10%)
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Expected U.S. federal income taxes at statutory rate	$ (1,139)	$ 370	$ (629)
Partnership income not taxed at Partnership level	294	(1,352)	(3,103)
Valuation allowance	965	914	3,679
State and local income taxes, net of federal benefit	295	177	244
Nondeductible expenses	398	67	47
Federal tax rate change	(471)	0	0
Other	(5)	1	5
Income tax expense	$ 337	$ 177	$ 243

Deferred Tax Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Deferred tax assets
Investment in partnership	$ 21,958	$ 0
Stock-based compensation	186	0
Tax receivable agreement	193	0
Deferred revenue	571	0
Accrued expenses	29	3
Intangible assets	0	68
Net operating loss carryforwards	103	94
Other	33	10
Gross deferred tax assets	23,073	175
Deferred Tax Assets, Valuation Allowance	(21,360)	(93)
Deferred tax liabilities
Intangible assets	(1,656)	0
Other	(5)	(4)
Net deferred tax asset	$ 52	$ 78

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Jun. 25, 2018
Class of Stock [Line Items]
Provisional discrete tax benefit related to the remeasurement of the deferred tax assets and liabilities of SDCR, Inc.		$ 471
Provision (benefit) for income taxes		337	$ 177	$ 243
Percent of tax benefits payable to continuing equity owners					85.00%
Tax benefits retained (percent)					15.00%
Purchase of common units in i3 Verticals, LLC from selling shareholder	$ 4,635
Deferred tax asset recognized	23,073	23,073	$ 175
Continuing Equity Owner \| Class B Common Stock
Class of Stock [Line Items]
Deferred tax asset recognized	960	960
Tax benefits due to Continuing Equity Owners	816	816
Noncontrolling Interest
Class of Stock [Line Items]
Purchase of common units in i3 Verticals, LLC from selling shareholder	4,635
Federal and State
Class of Stock [Line Items]
Net operating loss carryforwards	$ 27,061	$ 27,061

Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Mezzanine Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	$ 767	$ 1,182
Change in the fair value of warrant liabilities, included in Other expenses	8,487	(415)
Settlement through exercise of warrants or payment of consideration	(9,254)
Balance, ending	0	767
Accrued Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	3,340	5,537
Change in the fair value of warrant liabilities, included in Other expenses	3,851	(218)
Contingent consideration accrued at time of business combination	1,877	1,221
Settlement through exercise of warrants or payment of consideration	(3,069)	(3,200)
Balance, ending	5,999	3,340
Accrued Expenses and Other Current Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration	3,813	2,229
Other Long-term Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration	$ 2,186	$ 1,111

Equity-Based Compensation (Details) - USD ($)		3 Months Ended		12 Months Ended
Equity-Based Compensation (Details) - USD ($)	Jun. 25, 2018	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense				$ 1,567,000	$ 0	$ 0
Income tax benefits related to equity-based compensation		$ 0	$ 0	0	0
TRA Non-participation Compensatory Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 741,000			741,000	0	0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense				$ 826,000	$ 0	$ 0

Equity-Based Compensation - Additional Information (Details) - $ / shares		12 Months Ended
	Jun. 25, 2018	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted to directors and certain employees (shares)		2,143,500
Options granted, exercise price (in USD per share)		$ 13.13
2018 Equity Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (shares)		3,500,000
Additional Class A common shares added at the beginning of calendar year as percentage of common stock outstanding at end of previous year (percent)		4.00%
Directors and Certain Employees \| IPO \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted to directors and certain employees (shares)	2,045,000
Options granted, exercise price (in USD per share)	$ 13.00
Award vesting period	3 years

Equity-Based Compensation - Fair Value of Stock Option Awards (Details) - Stock Options	Jun. 25, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)	26.20%
Expected dividend yield (percent)	0.00%
Expected term	6 years
Risk-free interest rate (percent)	2.80%

Equity-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (shares)	0
Granted (shares)	2,143,500
Exercised (shares)	0
Forfeited (shares)	5,000
Outstanding at end of period (shares)	2,138,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period, weighted average exercise price (in USD per share)	$ 13.13	$ 0
Granted, weighted average exercise price (in USD per share)	13.13
Exercised, weighted average exercise price (in USD per share)	0
Forfeited, weighted average exercise price (in USD per share)	13.00
Outstanding at end of period, weighted average exercise price (in USD per share)	13.13	$ 0
Granted, weighted average grant date fair value (in USD per share)	$ 4.17
Options exercisable at end of period (shares)	0
Unrecognized compensation expense related to unvested options at end of period	$ 8,100
Period for recognition of unrecognized compensation cost	2 years 8 months 12 days

Stockholders' / Members' Equity and Redeemable Class A Units (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Jun. 25, 2018	Sep. 30, 2017	Sep. 30, 2018
Class of Stock [Line Items]
Preferred Stock authorized (shares)	10,000,000		10,000,000
Preferred Stock, par value (in USD per share)	$ 0.0001		$ 0.0001
Units issued (shares)		4,900,000	0
Units outstanding (shares)		4,900,000	0
Mezzanine Warrants
Class of Stock [Line Items]
Warrants outstanding (shares)		1,423,688
IPO
Class of Stock [Line Items]
Shares issued (shares)	7,647,500
Unsecured Debt \| Junior Subordinated Notes
Class of Stock [Line Items]
Warrants outstanding (shares)		1,433,920
Intrinsic value of warrants		$ 0
Warrant exercise price (in USD per share)		$ 2.095
Class A Common Stock
Class of Stock [Line Items]
Common Stock authorized (shares)	150,000,000		150,000,000
Common Stock, par value (in USD per share)	$ 0.0001		$ 0.0001
Units issued (shares)		13,892,129
Units outstanding (shares)		13,892,129
Cumulative preferred return	$ 7,627	$ 5,105
Distributions to unit holders		$ 625
Common Stock issued (shares)			9,112,042
Common Stock, outstanding (shares)			9,112,042
Class B Common Stock
Class of Stock [Line Items]
Common Stock authorized (shares)	40,000,000		40,000,000
Common Stock, par value (in USD per share)	$ 0.0001		$ 0.0001
Common Stock issued (shares)			17,213,806
Common Stock, outstanding (shares)			17,213,806
Redeemable Class A Units
Class of Stock [Line Items]
Units issued (shares)		4,900,000
Annual preferred return rate (percent)		10.00%
Cumulative preferred return	$ 3,376	$ 2,823
Distributions to unit holders		$ 131
Common Stock
Class of Stock [Line Items]
Common Stock issued (shares)		1,548,722
Restricted Class P Units
Class of Stock [Line Items]
Common Stock issued (shares)		7,647,350

Commitments and Contingencies -Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Operating leases for office space and equipment	$ 1,555	$ 997
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019			$ 1,763
2020			1,637
2021			1,282
2022			1,149
2023			1,061
Thereafter			1,277
Total			$ 8,169

Commitments and Contingencies - Minimum Fee Commitments (Details) $ in Thousands	Sep. 30, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 2,500
2020	2,866
2021	2,757
2022	3,346
2023	3,621
Thereafter	243
Total	$ 15,333

Commitments and Contingencies - Litigation (Details) $ in Thousands	Apr. 10, 2018 USD ($)
Expert Auto Litigation \| Settled Litigation \| Damages from Product Defects
Loss Contingencies [Line Items]
Legal settlement	$ 995

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Jun. 25, 2018
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net		$ 8,054	$ 0	$ 0
Percent of tax benefits payable to continuing equity owners					85.00%
Common Stock \| Class A Common Stock
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net	$ 8,054
Common Stock \| Class A Common Stock \| Affiliated Entity \| Conversion of Related Party Debt
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net	924
Unsecured Debt
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net		0	0	1,000
Notes Payable \| Affiliated Entity
Related Party Transaction [Line Items]
Notes payable, related parties		10,500	10,500
Related party interest expense		952	1,282	1,280
Junior Subordinated Notes \| Unsecured Debt \| Affiliated Entity
Related Party Transaction [Line Items]
Notes payable, related parties			6,158
Related party interest expense		457	632	831
Junior Subordinated Notes \| Unsecured Debt \| Affiliated Entity \| Repayment of Debt
Related Party Transaction [Line Items]
Debt repaid with proceeds from the Company's IPO	$ 5,234
Continuing Equity Owner \| Class B Common Stock
Related Party Transaction [Line Items]
Tax benefits due to Continuing Equity Owners		816
Axia Tech \| Affiliated Entity
Related Party Transaction [Line Items]
Net revenue from related party		$ 53	$ 27	$ 5
i3Verticals, LLC \| Affiliated Entity
Related Party Transaction [Line Items]
Ownership interest in Axia Tech (percent)		2.00%
Chief Executive Officer \| Affiliated Entity
Related Party Transaction [Line Items]
Ownership interest in Axia Tech (percent)		10.70%
Chief Financial Officer \| Affiliated Entity
Related Party Transaction [Line Items]
Ownership interest in Axia Tech (percent)		0.40%

Segments (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Segments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	$ 84,053	$ 84,536	$ 77,698	$ 77,221	$ 71,779	$ 66,326	$ 62,135	$ 62,331	$ 323,508	$ 262,571	$ 199,644
Operating expenses
Interchange and network fees									214,543	189,112	140,998
Other costs of services									40,314	28,798	21,934
Selling general and administrative									40,585	27,194	20,393
Depreciation and amortization									11,839	10,085	9,898
Change in fair value of contingent consideration									3,866	(218)	2,458
Income from operations	3,495	$ 2,923	$ 2,596	$ 3,347	2,078	$ 2,717	$ 1,709	$ 1,096	12,361	7,600	3,963
Processing margin									83,180	56,759	45,570
Assets	175,142				139,991				175,142	139,991	100,282
Goodwill	83,954				58,517				83,954	58,517	35,056
Merchant Services
Segment Reporting Information [Line Items]
Revenue									302,929	248,005	187,720
Operating expenses
Interchange and network fees									209,695	185,141	137,801
Other costs of services									38,399	27,350	20,318
Selling general and administrative									23,291	13,858	8,970
Depreciation and amortization									9,535	8,029	8,233
Change in fair value of contingent consideration									1,772	192	2,371
Income from operations									20,237	13,435	10,027
Processing margin									68,811	47,389	37,992
Assets	58,342				113,568				58,342	113,568	73,652
Goodwill	69,666				49,173				69,666	49,173	26,553
Residual expense									13,976	11,875	8,391
Proprietary Software and Payments
Segment Reporting Information [Line Items]
Revenue									20,582	14,582	12,018
Operating expenses
Interchange and network fees									4,848	3,971	3,175
Other costs of services									1,916	1,559	1,668
Selling general and administrative									7,602	7,194	6,439
Depreciation and amortization									2,097	1,938	1,556
Change in fair value of contingent consideration									2,094	(410)	87
Income from operations									2,025	330	(907)
Processing margin									14,371	9,423	7,670
Assets	7,553				8,901				7,553	8,901	7,958
Goodwill	14,288				9,344				14,288	9,344	8,503
Residual expense									553	371	495
Other
Segment Reporting Information [Line Items]
Revenue									(3)	(16)	(94)
Operating expenses
Interchange and network fees									0	0	22
Other costs of services									(1)	(111)	(52)
Selling general and administrative									9,692	6,142	4,984
Depreciation and amortization									207	118	109
Change in fair value of contingent consideration									0	0	0
Income from operations									(9,901)	(6,165)	(5,157)
Processing margin									(2)	(53)	(92)
Assets	109,247				17,522				109,247	17,522	18,672
Goodwill	$ 0				$ 0				0	0	0
Residual expense									$ 0	$ (148)	$ (28)

Non-Controlling Interest (Details) - i3Verticals, LLC	Sep. 30, 2018 shares
Noncontrolling Interest [Line Items]
Non-controlling interest, common units (shares)	9,112,042
Non-controlling interest, ownership interest (percent)	34.60%

Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Jun. 25, 2018

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Numerator

Less: Net income attributable to non-controlling interests

$ 2,673

$ (4,961)

$ 902

$ (2,093)

1,937

Net income attributable to Class A common stockholders

736

$ 834

$ (564)

$ (6,836)

$ (332)

$ 384

$ 887

$ 48

$ (417)

$ (7,634)

$ (6,898)

$ 902

$ (2,093)

Reallocation of net income assuming conversion of common units

1,478

Net income attributable to Class A common stockholders - diluted

$ 2,214

Weighted average shares of Class A common stock outstanding (shares)

8,812,630

Weighted average effect of dilutive securities (shares)

18,061,248

Weighted average shares of Class A common stock outstanding - diluted (shares)

26,873,878

^[1]

Diluted net income per share (in USD per share)

$ 0.09

$ (0.01)

$ 0.08

^[1]

$ 0.08

$ 0.09

$ (0.01)

$ 0.08

^[1]

Class A Common Stock

Numerator

Less: Net income attributable to non-controlling interests

$ 2,673

1,937

Net income attributable to Class A common stockholders

$ 736

Weighted average shares of Class A common stock outstanding (shares)

8,812,630

Quarterly Financial Information Disclosure [Abstract]

$ 0.08

[1]	1.Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions. See Note 1 for a description of the Reorganization Transactions. See Note 18 for the calculation of income per common share.

Earnings Per Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share (shares)	299,412	299,412

Significant Non-cash Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	$ 8,054	$ 0	$ 0
Equity issued as part of acquisitions' purchase consideration	104	275	665
Acquisition date fair value of contingent consideration in connection with business combinations	2,084	1,221	1,480
Replacement of 2016 Senior Secured Credit Facility with Senior Secured Credit Facility	87,525	0	0
Mezzanine Notes net settled with Mezzanine Warrant exercises	14	0	0
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	2,565	0	0
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	9,253	0	0
Preferred return on Class A Units and Redeemable Class A Units		756	764
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	904	0	0
Redeemable Class A Common Stock
Other Significant Noncash Transactions [Line Items]
Preferred return on Class A Units and Redeemable Class A Units	552	701	639
Class A Common Stock
Other Significant Noncash Transactions [Line Items]
Preferred return on Class A Units and Redeemable Class A Units	2,522	2,223	1,080
Restricted Stock
Other Significant Noncash Transactions [Line Items]
Equity issued as part of acquisitions' purchase consideration	550	0	0
Unsecured Debt
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	0	0	1,000
Junior Subordinated Notes
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	$ 0	$ 500	$ 1,000

Quarterly Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Jun. 25, 2018

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

$ 84,053

$ 84,536

$ 77,698

$ 77,221

$ 71,779

$ 66,326

$ 62,135

$ 62,331

$ 323,508

$ 262,571

$ 199,644

3,495

2,923

2,596

3,347

2,078

2,717

1,709

1,096

12,361

7,600

3,963

Net (loss) income attributable to i3 Verticals, Inc.

2,646

(6,586)

(721)

460

1,058

(497)

$ 736

$ 834

$ (564)

$ (6,836)

$ (332)

$ 384

$ 887

$ 48

$ (417)

$ (7,634)

$ (6,898)

$ 902

$ (2,093)

Basic {loss} earnings per share attributble to i3 Verticals, Inc. (in USD per share)

$ 0.09

$ (0.01)

$ 0.08

^[1]

Diluted (loss) earnings per share attributable to i3 Verticals, Inc. (in USD per share)

$ 0.08

$ 0.09

$ (0.01)

$ 0.08

^[1]

Antidilutive securities excluded from computation of earnings per share (shares)

299,412

[1]	1.Basic and diluted net income per Class A common stock are presented only for the period after the Company’s Reorganization Transactions. See Note 1 for a description of the Reorganization Transactions. See Note 18 for the calculation of income per common share.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.