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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Sep. 30, 2019	Nov. 22, 2019	Mar. 31, 2019
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-38532
Entity Registrant Name	i3 Verticals, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-4052852
Entity Address, Address Line One	40 Burton Hills Blvd.
Entity Address, Address Line Two	Suite 415
Entity Address, City or Town	Nashville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37215
City Area Code	615
Local Phone Number	465-4487
Title of 12(b) Security	Class A Common Stock, $0.0001 Par Value
Trading Symbol	IIIV
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001728688
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Public Float			$ 187.1
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy materials for its 2020 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,482,489
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		12,921,637

Consolidated Balance Sheet - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Current assets
Cash and cash equivalents	$ 1,119	$ 572
Accounts receivable, net	15,335	12,500
Settlement assets	0	863
Prepaid expenses and other current assets	4,117	2,630
Total current assets	20,571	16,565
Property and equipment, net	5,026	2,958
Restricted cash	2,081	665
Capitalized software, net	15,454	3,372
Goodwill	168,284	83,954
Intangible assets, net	107,419	66,023
Deferred tax asset	28,138	1,152
Other assets	2,329	453
Total assets	349,302	175,142
Current liabilities
Accounts payable	3,438	4,114
Current portion of long-term debt	0	5,000
Accrued expenses and other current liabilities	21,560	11,538
Settlement obligations	0	863
Deferred revenue	10,237	4,927
Total current liabilities	35,235	26,442
Long-term debt, less current portion and debt issuance costs, net	139,298	31,776
Long-term tax receivable agreement obligations	23,204	791
Other long-term liabilities	9,124	3,935
Total liabilities	206,861	62,944
Commitments and contingencies (see Note 14)
Stockholders' Equity
Preferred Stock, Value, Issued	0	0
Additional paid-in-capital	82,380	38,562
Accumulated (defecit) earnings	(2,309)	736
Total stockholders' equity	80,073	39,301
Non-controlling interest	62,368	72,897
Total equity	142,441	112,198
Liabilities and Equity	349,302	175,142
Class A Common Stock
Stockholders' Equity
Common stock	1	1
Class B Common Stock
Stockholders' Equity
Common stock	$ 1	$ 2

Consolidated Balance Sheet (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Preferred Stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred Stock authorized (shares)	10,000,000	10,000,000
Preferred Stock issued (shares)	0	0
Preferred Stock outstanding (shares)	0	0
Class A Common Stock
Common Stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common Stock authorized (shares)	150,000,000	150,000,000
Common Stock issued (shares)	14,444,115	9,112,042
Common Stock, outstanding (shares)	14,444,115	9,112,042
Class B Common Stock
Common Stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common Stock authorized (shares)	40,000,000	40,000,000
Common Stock issued (shares)	12,921,637	17,213,806
Common Stock, outstanding (shares)	12,921,637	17,213,806

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

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Income Statement [Abstract]

Revenue

$ 376,307

$ 323,508

$ 262,571

Operating expenses

Interchange and network fees

242,867

214,543

189,112

Other costs of services

44,237

40,314

28,798

Selling general and administrative

62,860

40,585

27,194

Depreciation and amortization

16,564

11,839

10,085

Change in fair value of contingent consideration

3,389

3,866

(218)

Total operating expenses

369,917

311,147

254,971

Income from operations

6,390

12,361

7,600

Other expenses

Interest expense, net

6,004

8,498

6,936

Change in fair value of warrant liability

8,487

(415)

Total other expenses

6,004

16,985

6,521

(Loss) income before income taxes

386

(4,624)

1,079

Provision for income taxes

(177)

337

177

Net (loss) income

563

(4,961)

902

Net income attributable to non-controlling interest

3,608

1,937

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

$ (3,045)

$ (6,898)

$ 902

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

Basic (in USD per share)

^[1]

$ (0.29)

$ 0.08

Diluted (in USD per share)

^[1]

$ (0.29)

$ 0.08

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

Basic (shares)

^[1]

10,490,981

8,812,630

Diluted (shares)

^[1]

10,490,981

26,873,878

[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, 2016	$ (9,510)					$ 965	$ 19,765			$ (30,240)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
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)
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Preferred return on Class A Units and Redeemable Class A Units		$ 0
Issuance of common stock	21,660								21,660
Equity based compensation recognized	6,124								6,124
Issuance of class A common stock (shares)							1,000,000
Capitalization of public offering costs	(899)								(899)
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets associated with increases in tax basis	3,959								3,959
Forfeitures of restricted Class A common stock (shares)							36,113
Distributions to non-controlling interest holders	(2,060)												(2,060)
Redemption of common units in i3 Verticals, LLC (shares)							(4,292,169)	4,292,169
Redemption of common units in i3 Verticals, LLC	$ 1							$ 1	(12,077)				12,077
Exercised (shares)	89,974						(67,218)
Exercise of equity-based awards	$ 672								672
Issuance of restricted Class A common stock under Equity Plan (shares)							(8,799)
Issuance of restricted Class A common stock under Equity Plan	225								225
Net loss attributable to non-controlling interests	(3,608)	(3,608)											3,608
Net loss (income)	563	563
Net income (loss) attributable to i3 Verticals, Inc.	(3,045)	$ (3,045)								(3,045)
Common Stock, Shares, Outstanding, ending at Sep. 30, 2019		14,444,115			12,921,637		14,444,115	12,921,637
Stockholders' Equity, ending at Sep. 30, 2019	$ 142,441						$ 1	$ 1	$ 82,380	$ (2,309)			$ 62,368

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net (loss) income	$ 563	$ (4,961)	$ 902
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	16,564	11,839	10,085
Equity-based compensation	6,124	1,567	0
Provision for doubtful accounts	30	14	216
Amortization of deferred financing costs	721	1,072	453
Debt extinguishment costs	152	0	0
Loss on disposal of assets	8	5	44
Provision for (benefit from) deferred income taxes	(586)	(682)	56
Non-cash change in fair value of warrant liability	0	8,487	(415)
Increase (decrease) in non-cash contingent consideration expense from original estimate	3,389	3,866	(218)
Changes in operating assets:
Accounts receivable	2,430	(2,321)	(2,432)
Prepaid expenses and other current assets	(817)	1,017	305
Other assets	(2,769)	(3,182)	9
Changes in operating liabilities:
Accounts payable	(1,768)	1,172	(384)
Accrued expenses and other current liabilities	1,572	2,040	1,515
Deferred revenue	2,588	(123)	388
Other long-term liabilities	(44)	362	40
Contingent consideration paid in excess of original estimates	(1,560)	(2,092)	(2,234)
Net cash provided by operating activities	26,597	18,080	8,330
Cash flows from investing activities:
Expenditures for property and equipment	(807)	(2,217)	(636)
Expenditures for capitalized software	(2,227)	(1,092)	(1,452)
Purchases of merchant portfolios and residual buyouts	(3,586)	(1,207)	(1,632)
Acquisitions of businesses, net of cash acquired	(137,036)	(32,362)	(44,175)
Acquisition of other intangibles	(72)	(1,177)	(8)
Net cash used in investing activities	(143,728)	(38,055)	(47,903)
Cash flows from financing activities:
Proceeds from revolving credit facility	188,491	27,250	56,500
Payments of revolving credit facility	(51,867)	(95,600)	(23,900)
Proceeds from notes payable to banks	0	24,671	0
Payments of notes payable to banks	(35,000)	(5,000)	(5,000)
Payment of notes payable to Mezzanine Lenders	0	(10,486)	0
Payment of unsecured notes payable to related and unrelated creditors	0	(5,489)	0
Payment of debt issuance costs	(168)	(266)	(254)
Proceeds from the exercise of Mezzanine Warrants and Junior Subordinated Notes Warrants	0	270	0
Proceeds from issuance of Class A common	111,687	0	12,500
Proceeds from issuance of Class A common stock sold in initial public offering, net of underwriting discounts and offering costs	0	89,506	0
Payments for Common Units in i3 Verticals, LLC from selling shareholders	(90,027)	(4,635)	0
Payment of equity issuance costs for Class A unit issuance	0	0	(64)
Cash paid for contingent consideration	(2,634)	(977)	(966)
Required distributions to members for tax obligations	(2,060)	0	(1,464)
Proceeds from stock option exercises	672	0	0
Net cash provided by (used in) financing activities	119,094	19,244	37,352
Net (decrease) increase in cash, cash equivalents and restricted cash	1,963	(731)	(2,221)
Cash, cash equivalents and restricted cash at beginning of period	1,237	1,968	4,189
Cash, cash equivalents and restricted cash at end of period	3,200	1,237	1,968
Supplemental disclosure of cash flow information:
Cash paid for interest	4,911	7,881	6,288
Cash paid for income taxes	1,420	$ 483	$ 837
Class A
Cash flows from operating activities:
Net (loss) income	$ 563

Organization and Operations	12 Months Ended
Organization and Operations	Sep. 30, 2019
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. Public Offering On June 10, 2019, the Company completed a secondary public offering (the “June 2019 Secondary Public Offering”) of 5,165,527 shares of its Class A common stock, at a public offering price of $22.75 per share, which included a full exercise of the underwriters' option to purchase 673,764 additional shares of Class A Common Stock from the Company. The Company received approximately $111,640 of net proceeds, after deducting underwriting discounts and commissions, but before offering expenses. The Company used the net proceeds to purchase (1) 1,000,000 Common Units directly from i3 Verticals, LLC, and (2) 4,165,527 Common Units (including 673,764 Common Units due to the exercise of the underwriters' option to purchase additional shares in full) and an equivalent number of Class B common stock (which shares were then canceled) from certain Continuing Equity Owners, in each case at a price per Common Unit equal to the price per share paid by the underwriters for shares of our Class A common stock in the offering. i3 Verticals, LLC received $20,870 in net proceeds from the sale of Common Units to the Company, which it used to repay outstanding indebtedness. •As of September 30, 2019, i3 Verticals, Inc. owned 52.8% of the economic interest in i3 Verticals, LLC. •As of September 30, 2019, the Continuing Equity Owners owned Common Units in i3 Verticals, LLC representing approximately 47.2% of the economic interest in i3 Verticals, LLC, shares of Class A common stock in the Company representing approximately 1.0% of the economic interest and voting power in the Company, and shares of Class B common stock in i3 Verticals, Inc., representing approximately 47.2% 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 48.2% 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, 2019

Accounting Policies [Abstract]

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 Accounting Standards Update (“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, 2019		September 30, 2018
Cash and cash equivalents on consolidated balance sheet	$	1,119	$	572
Restricted cash	2,081		665
Total cash, cash equivalents and restricted cash on consolidated statement of cash flows	$	3,200	$	1,237

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 $232 and $205 as of September 30, 2019 and 2018, 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, 2019, the Company had no remaining settlement assets or settlement obligations. As of September 30, 2018, settlement assets and settlement obligations were both $863.

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 $1,294 and $930 at September 30, 2019 and 2018, 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, 2019, 2018 and 2017.

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, 2019, 2018 and 2017 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 material 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, 2019 contributed $27,820 and $2,229 of revenue and net loss, 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 in the fourth quarter, 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. 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, 2019, 2018 and 2017.

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 estimation methodology, the qualitative factors considered when performing a qualitative assessment 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, 2019, 2018 and 2017 the Company performed a quantitative assessment for each of its reporting units. The Company determined that none of the reporting units were impaired and fair values of all of its reporting units substantially exceeded their carrying values at the assessment date.

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.

During the first quarter of fiscal year 2019, management determined it was appropriate to change the amortization rate of our merchant contract intangible assets to reflect the expected distribution of future cash flows. This change was applied prospectively beginning on October 1, 2018 and resulted in $1,290 in additional amortization expense recorded in the year ended September 30, 2019.

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, 2019, 2018 and 2017.

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.

The majority of the Company's gross revenue for the years ended September 30, 2019, 2018 and 2017 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 $1,443, $765 and $654 for the years ended September 30, 2019, 2018 and 2017, 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 $6,124 and $1,567 for the years ended September 30, 2019 and 2018, respectively. There was no equity-based compensation for the year ended September 30, 2017.

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.

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 No. 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 No. 2018-15 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 smaller reporting company and has elected to use the extended transition period provided for such companies. As a result, the Company is not required to adopt this ASU No. 2018-15 until October 1, 2021. Early adoption is permitted, including adoption in an interim period. The Company elected to early adopt this standard using the prospective method as of October 1, 2018. There was no impact on the Company’s consolidated financial statements for the adoption of ASU No. 2018-15.

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 No. 2018-13 provide clarification and modify the disclosure requirements on fair value measurement in Topic 820, Fair Value Measurement. The amendments in this ASU No. 2018-13 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 smaller reporting 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 No. 2018-13 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 No. 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 No. 2018-07 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. As a public business entity, the Company is an emerging growth company and smaller reporting company and has elected to use the extended transition period provided for such companies. As a result, the Company is not required to adopt this ASU No. 2018-07 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 electing to early adopt this standard as of October 1, 2019. There will be no impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in ASU No. 2016-13 require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The amendments in this ASU No. 2016-13 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 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As a public

business entity, the Company is an emerging growth company and a smaller reporting 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 No. 2016-13 until October 1, 2023. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU No. 2016-02 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 smaller reporting 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 No. 2016-02 until October 1, 2021. 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which narrows aspects of the guidance issued in the amendments in ASU 2016-02, and ASU 2018-11, Leases—Targeted Improvements (Topic 842), by allowing lessees and lessors to recognize and measure existing leases at the beginning of the period of adoption without modifying the comparative period financial statements (which therefore will remain under prior GAAP, Topic 840, Leases). In December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors, which clarifies or simplifies certain narrows aspects of the guidance issued in the amendments in ASU 2016-02 for lessors. Since the Company has not yet adopted ASU 2016-02, the effective date and transition requirements will be the same as the effective date and transition requirements in ASU 2016-02. In March 2019, the FASB issued ASU 2019-01, Codification Improvements, which clarifies certain aspects of the guidance issued in the amendments in ASU 2016-02. The amendments in this ASU No. 2016-02 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. The Company is currently evaluating the impact of the adoption of these principles on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The FASB issued updates and clarifications to ASU 2014-09, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Gross versus Net) issued in March 2016, ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing issued in April 2016 and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients issued in May 2016. ASU 2014-09 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 and smaller reporting company, the Company will not be required to adopt this ASU No. 2014-09 until October 1, 2019. The amendment allows companies to use either a full retrospective or a modified retrospective approach, through a cumulative adjustment, to adopt this ASU No. 2014-09.

The Company has performed a review of the requirements of the new revenue standard and has monitored the activity of the FASB and the transition resource group as it relates to specific interpretive guidance. The Company has assessed the effects of the new revenue standard in a multi-phase approach. In the first phase, the team reviewed revenue sources and evaluated revenue populations by type to determine the appropriate portfolios that will result in materially consistent conclusions as if each revenue type was evaluated on a contract-by-contract basis under the new standard, applying the five-step model of the new standard to each contract category and comparing the results to current accounting practices. In the second phase, the Company quantified the potential effects, assessed additional contract categories and principal agent considerations, revised

accounting policies and considered the effects on related disclosures and/or internal control over financial reporting. The third phase, which will complete the adoption and implementation of the new revenue standard, includes quantifying the cumulative-effect adjustment (including tax effects).

The new standard will change the timing of certain revenue and expenses to be recognized under various arrangement types. In addition, it could increase the administrative burden on the Company’s operations to properly account for customer contracts and provide the more expansive required disclosures. More judgment and estimates will be required when applying the requirements of the new standard than are required under existing GAAP, such as estimating the amount of variable consideration to include in transaction price and estimating expected periods of benefit for certain costs. Through management's review of individual contracts and historical revenue recognition patters in comparison to the provisions under ASU 2014-09, the Company expects the timing of revenue to be recognized under ASU 2014-09 for each of the Company’s revenue categories, including discount fees, software licensing subscriptions, ongoing support, and other POS-related solutions, will be similar to the timing of revenue recognized under current accounting practices. The Company will evaluate, on an ongoing basis, costs to obtain contracts with customers, as well as certain implementation and set-up costs, and, in some cases, may be required to amortize these costs over longer periods than they were historically amortized. Finally, the new standard requires additional disclosures regarding revenues and related capitalized contract costs, if any.

The Company is adopting the new revenue standard using a modified retrospective basis on October 1, 2019. The Company has calculated that the adoption will result in a $1,821 cumulative increase to retained earnings, due to capitalized costs to obtain contracts with customers being amortized over the expected life of the customer rather than the life of the specific contract.

The Company currently expects the most significant ongoing impact of adopting the new revenue standard in fiscal year 2020 to be driven by changes in principal versus agent considerations, with the majority of the change overall in total net revenue attributable to reflecting the Company's interchange and network fees on a net basis prospectively, as opposed to its gross presentation of $242,867 in the year ended September 30, 2019. The Company does not expect the adoption of the new revenue standard to have a material impact on net income. The Company will include additional disclosures of the amount by which each consolidated financial statement line item is affected during fiscal year 2020, as compared to the guidance that was in effect before the change, and an explanation of the reasons for any significant changes.

Credit Risk and Other Concentrations	12 Months Ended
Credit Risk and Other Concentrations	Sep. 30, 2019
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, 2019, 2018 and 2017. 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, 2019, 2018, and 2017.

Acquisitions

12 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

During the years ended September 30, 2019, 2018 and 2017 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, 2019, 2018 and 2017, the Company purchased $3,585, $1,567 and $476, respectively, in residual buyouts using a combination of cash on hand and borrowings on the Company's revolving credit facility. The acquired residual buyout intangible assets have weighted average estimated amortization periods of seven and two years, respectively.

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 years ended September 30, 2019 and 2018 was $0 and $815, respectively, 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.

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 other businesses to expand the Company’s merchant base and to provide additional service to the Company’s customers. Total purchase consideration for the other acquisitions was $6,396, including $5,175 in cash and revolving credit facility proceeds and $1,221 of contingent cash consideration.

The goodwill associated with the acquisitions of the other businesses is tax-deductible. The weighted-average amortization period for all intangibles acquired is fifteen years. Acquisition-related costs for the 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 businesses, including San Diego Cash Register Company, Inc., and 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 2017 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.

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 other businesses to expand the Company's merchant base. Total purchase consideration for the other acquisitions was $15,604, including $13,700 in cash and revolving credit facility proceeds, $550 of restricted Class A common stock and $1,354 of contingent cash consideration.

The goodwill associated with the acquisitions of the other businesses is deductible for tax purposes. The acquired merchant relationships intangible assets have estimated amortization periods of between twelve and 15 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 other businesses amounted to approximately $233 and were expensed as incurred.

Certain provisions in the purchase agreements for the 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

2019 Business Combinations

During the year ended September 30, 2019, the Company completed the acquisitions of unrelated businesses, including Pace Payment Systems, Inc.

Purchase of Pace Payment Systems, Inc.

On May 31, 2019, i3-Holdings Sub, Inc. acquired all of the stock of Pace Payment Systems, Inc. (“Pace”) via a reverse triangular merger involving Pace and a special acquisition subsidiary of i3-Holdings Sub, Inc. The Company acquired Pace to expand its software offerings, primarily in the public sector and education verticals. The total purchase consideration was $56,053, including $52,492 in cash consideration, funded by proceeds from the Company's revolving credit facility, $3,336 of contingent consideration and $225 of restricted shares of Class A common stock in i3 Verticals. Certain of the purchase price allocations assigned for this acquisition are preliminary.

The goodwill associated with the acquisition is not 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 estimated amortization periods of three and five years, respectively. The weighted-average estimated amortization period of all intangibles acquired is fifteen years. The acquired capitalized software has an estimated amortization period of seven years. The acquisition also included deferred tax assets related to net

operating losses and Section 163(j) carryforwards and deferred tax liabilities related to intangibles, which are presented as a total net deferred tax asset as of September 30, 2019.

Acquisition-related costs for Pace amounted to approximately $444 and were expensed as incurred.

Certain provisions in the merger agreement provide for additional consideration of up to $20,000 in the aggregate, to be paid based upon achievement of specified financial performance targets, as defined in the purchase agreement, in the 24 months from January 1, 2020 through December 31, 2021. 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 will reassess the current estimates of performance relative to the targets and adjust the contingent liability to its fair value through earnings. See additional disclosures in Note 11.

Other 2019 Business Combinations

The Company completed the acquisitions of other businesses to expand the Company’s software offerings in the public sector vertical market, provide technology that enhances the Company’s Burton Platform and expand the Company's merchant base. Total purchase consideration was $98,770, including $89,074 in revolving credit facility proceeds and $9,696 of contingent consideration. Certain of the purchase price allocations assigned for these acquisitions are preliminary.

For some of these business acquired, the goodwill associated with the acquisitions is deductible for tax purposes, and goodwill associated with the acquisitions of others of the businesses is not deductible for tax purposes. The acquired merchant relationships intangible assets have estimated amortization periods of between thirteen and twenty years. The non-compete agreement and trade names have weighted-average amortization periods of three and five years, respectively. The weighted-average amortization period for all intangibles acquired is sixteen years. The acquired capitalized software has an estimated amortization period of six years.

Acquisition-related costs for these businesses amounted to approximately $1,179 and were expensed as incurred.

Certain provisions in the purchase agreements provide for additional consideration of up to $34,900, 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 September 2021. The Company determined the acquisition date fair values of the liabilities for the contingent consideration based on probability forecasts and 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 2019 Business Combinations

The fair values assigned to certain assets and liabilities assumed, as of the acquisition dates, during the year ended September 30, 2019 were as follows:


	Pace		Other		Total
Cash and cash equivalents	$	108	$	4,453	$	4,561
Accounts receivable	545		4,732		5,277
Settlement assets	—		18		18
Related party receivable	—		—		—
Inventories	45		61		106
Prepaid expenses and other current assets	59		505		564
Property and equipment	527		1,929		2,456
Capitalized software	3,400		9,440		12,840
Acquired merchant relationships	13,400		34,480		47,880
Exclusivity Agreements	—		—		—
Non-compete agreements	60		150		210
Trade name	500		1,540		2,040
Goodwill	36,522		47,777		84,299
Other assets	1,689		2		1,691
Total assets acquired	56,855		105,087		161,942

Accounts payable	722		369		1,091
Accrued expenses and other current liabilities	56		2,108		2,164
Settlement obligations	—		18		18
Deferred revenue, current	24		2,698		2,722
Other long-term liabilities	—		1,124		1,124
Net assets acquired	$	56,053	$	98,770	$	154,823

Pro Forma Results of Operations for 2019 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, 2019 had occurred on October 1, 2017. 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,
	2019		2018
Revenue	$	418,815	$	394,373
Net income (loss)	$	(4,483)	$	(16,166)

Property and Equipment, Net

12 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

PROPERTY AND EQUIPMENT, NET

A summary of the Company's property and equipment as of September 30, 2019 and 2018 is as follows:


	Estimated Useful Life	2019		2018
Computer equipment and software	2 to 7 years	$	1,990	$	636
Furniture and fixtures	2 to 7 years	1,639		1,299
Terminals	2 to 3 years	429		588
Office equipment	2 to 5 years	940		107
Automobiles	3 years	307		114
Leasehold improvements	2 to 7 years	1,665		1,506
Accumulated depreciation		(1,944)		(1,292)
Property and equipment, net		$	5,026	$	2,958

Depreciation expense for the years ended September 30, 2019, 2018 and 2017 amounted to $1,195, $802 and $875, respectively.

Capitalized Software, Net

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Capitalized Software, Net

CAPITALIZED SOFTWARE, NET

A summary of the Company's capitalized software as of September 30, 2019 and 2018 is as follows:


	Estimated Useful Life	2019		2018
Software development costs	1 to 7 years	$	20,347	$	6,021
Development in progress		833		389
Accumulated amortization		(5,726)		(3,038)
Capitalized software, net		$	15,454	$	3,372

The Company capitalized software development costs (including acquisitions) totaling $15,067 and $1,292 during the years ended September 30, 2019 and 2018, respectively. Amortization expense for capitalized software development costs amounted to $2,977, $1,696 and $1,541 during the years ended September 30, 2019, 2018 and 2017, respectively.

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2019

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, 2017 (net of accumulated impairment losses of $11,458, $0 and $0, respectively)	$	49,173	$	9,344	$	—	$	58,517
Goodwill attributable to acquisition activity during the year ended September 30, 2018	20,493		4,944		—		25,437
Balance at September 30, 2018	69,666		14,288		—		83,954
Goodwill attributable to acquisition activity during the year ended September 30, 2019	38,806		45,524		—		84,330
Balance at September 30, 2019	$	108,472	$	59,812	$	—	$	168,284

Intangible assets consisted of the following as of September 30, 2019:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	142,671	$	(43,579)	$	99,092	12 to 20 years – accelerated or straight-line
Non-compete agreements	1,770		(619)		1,151		2 to 5 years – straight-line
Website development costs	77		(22)		55		3 years – straight-line
Trade names	4,292		(1,307)		2,985		3 to 7 years – straight-line
Residual buyouts	5,346		(1,882)		3,464		2 to 8 years – straight-line
Referral and exclusivity agreements	900		(264)		636		5 to 10 years – straight-line
Total finite-lived intangible assets	155,056		(47,673)		107,383

Indefinite-lived intangible assets:
Trademarks	36		—		36
Total identifiable intangible assets	$	155,092	$	(47,673)	$	107,419

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

Amortization expense for intangible assets amounted to $12,394, $9,341 and $7,669 during the years ended September 30, 2019, 2018 and 2017, respectively.

Based on gross carrying amounts at September 30, 2019, the Company's estimate of future amortization expense for intangible assets are presented in this table as follows for each fiscal year ending September 30:


2020	$	12,098
2021	10,546
2022	9,401
2023	8,355
2024	7,766
Thereafter	59,217
	$	107,383

Accrued Expenses and Other Liabilities

12 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

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, 2019 and 2018 is as follows:


	2019		2018
Accrued wages, bonuses, commissions and vacation	$	4,256	$	1,975
Accrued interest	254		75
Accrued contingent consideration --- current portion	10,223		3,813
Tax receivable agreement liability --- current portion	24		25
Accrued tax liabilities	50		836
Customer deposits	1,968		1,333
Other current liabilities	4,785		3,481
Accrued expenses and other current liabilities	$	21,560	$	11,538

A summary of the Company's long-term liabilities as of September 30, 2019 and 2018 is as follows:


	2019		2018
Accrued contingent consideration --- long-term portion	$	8,003	$	2,186
Deferred tax liability --- long-term	516		1,100
Other long-term liabilities	605		649
Total other long-term liabilities	$	9,124	$	3,935

Long-Term Debt, Net

12 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt, Net

LONG-TERM DEBT, NET

A summary of long-term debt, net as of September 30, 2019 and September 30, 2018 is as follows:


	Maturity	2019		2018
Term loans to bank under the 2017 Senior Secured Credit Facility	October 30, 2022	$	—	$	35,000
Revolving lines of credit to banks under the 2017 Senior Secured Credit Facility	October 30, 2022	—		3,250
Revolving lines of credit to banks under the Senior Secured Credit Facility	May 9, 2024	141,144		—
Debt issuance costs, net		(1,846)		(1,474)
Total long-term debt, net of issuance costs		139,298		36,776
Less current portion of long-term debt		—		(5,000)
Long-term debt, less current portion		$	139,298	$	31,776

Senior Secured Credit Facility

On May 9, 2019, the Company replaced its existing 2017 Senior Secured Credit Facility (defined below) with a new credit agreement (the “Senior Secured Credit Facility”). The Company concluded that the replacement of the 2017 Senior Secured Credit Facility should be accounted for as a debt modification based on the guidance in ASC 470-50. In connection with the replacement of the 2017 Senior Secured Credit Facility, the Company recorded a debt extinguishment charge of $152 for the write-off of deferred financing costs, which was recorded in interest expense in the consolidated statements of operations. The Senior Secured Credit Facility consists of a $300,000 revolving credit facility, together with an option to increase the revolving credit facility and/or obtain incremental term loans in an additional principal amount of up to $50,000 in the aggregate (subject to the receipt of additional commitments for any such incremental loan amounts). The Senior Secured Credit Facility accrues interest at LIBOR (based upon an interest period of one, two, three or six months or, under some circumstances, up to twelve months) plus an applicable margin of 2.25% to 3.25% (3.25% as of September 30, 2019), or the base rate (defined as the highest of (x) the Bank of America prime rate, (y) the federal funds rate plus 0.50% and (z) LIBOR plus 1.00%), plus an applicable margin of 0.25% to 1.25% (1.25% as of September 30, 2019), in each case depending upon the consolidated total leverage ratio, as defined in the agreement. Interest is payable at the end of the selected interest period, but no less frequently than quarterly. Additionally, the Senior Secured Credit Facility requires the Company to pay unused commitment fees of 0.15% to 0.30% (0.30% as of September 30, 2019) on any undrawn amounts under the revolving credit facility and letter of credit fees of up to 3.25% on the maximum amount available to be drawn under each letter of credit issued under the agreement. The maturity date of the Senior Secured Credit Facility is May 9, 2024. As of September 30, 2019, there was $158,856 available for borrowing under the revolving credit facility.

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, 2019. 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 in an aggregate amount not to exceed $3,000 per year, (iv) make certain payments in connection with the Tax Receivable Agreement, and (v) 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. The Company is also permitted to make non-cash dividends in the form of additional equity issuances. Each subsidiary may make ratable distributions to persons that own equity interests in such subsidiary. All other forms of dividends or distributions are prohibited under the Senior Secured Credit Facility.

2017 Senior Secured Credit Facility

On October 30, 2017, the Company replaced its then-existing credit facility with the 2017 Senior Secured Credit Facility (the “2017 Senior Secured Credit Facility”). The 2017 Senior Secured Credit Facility consisted of term loans in the original principal amount of $40,000 and a $110,000 revolving line of credit. The 2017 Senior Secured Credit Facility accrued interest, payable monthly, at the prime rate plus a margin of 0.50% to 2.00% or at the 30-day LIBOR rate plus a margin of 2.75% to 4.00%, in each case depending on the ratio of consolidated debt-to-EBITDA, as defined in the agreement. Additionally, the 2017 Senior Secured Credit Facility required the Company to pay unused commitment fees of up to 0.15% to 0.30% on any undrawn amounts under the revolving line of credit. The maturity date of the 2017 Senior Secured Credit Facility is October 30, 2022. Principal payments of $1,250 were due on the last day of each calendar quarter until the maturity date, when all outstanding principal and accrued and unpaid interest were due.

The 2017 Senior Secured Credit Facility was secured by substantially all assets of the Company. The lenders under the 2017 Senior Secured Credit Facility held senior rights to collateral and principal repayment over all other creditors.

As previously mentioned, on May 9, 2019, the Company replaced its existing 2017 Senior Secured Credit Facility with 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

During 2013, the Company issued notes payable in the aggregate principal amount of $10,500 (the “Mezzanine Notes”) to three creditors. 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.

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 were 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.

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, 2019 and 2018, the Company incurred debt issuance costs totaling $1,245 and $1,170, 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, which is not materially different than the effective interest rate method, and are presented net against long-term debt in the consolidated balance sheets. The amortization of deferred debt issuance costs is included in interest expense and amounted to approximately $721, $1,072 and $453 during the years ended September 30, 2019, 2018 and 2017, respectively.

Income Taxes

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXESi3 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.

As of September 30, 2019 and 2018, 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,
	2019		2018		2017
Current:
Federal tax expense	$	220	$	668	$	—
State tax expense	189		351		121
Deferred
Federal tax (benefit)	(487)		(685)		—
State tax expense (benefit)	(99)		3		56
Income tax expense	$	(177)	$	337	$	177

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,
	2019						2018						2017
Expected U.S. federal income taxes at statutory rate	$	81	21.0	%	$	(1,139)	24.6	%	$	370	34.3	%
Partnership income not taxed at federal level	(1,007)		(260.9)	%	294		(6.4)	%	(1,352)		(125.3)	%
Valuation allowance	251		65.0	%	965		(20.9)	%	914		84.7	%
State and local income taxes, net of federal benefit	104		26.9	%	295		(6.4)	%	177		16.4	%
Nondeductible expenses	393		101.8	%	398		(8.6)	%	67		6.2	%
Federal tax rate change	—		—	%	(471)		10.2	%	—		—	%
Other	1		0.3	%	(5)		0.1	%	1		0.1	%
Income tax (benefit) expense	$	(177)	(45.9)	%	$	337	(7.3)	%	$	177	16.4	%

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 spanning multiple jurisdictions as of September 30, 2019 and 2018 were as follows:


	September 30,
	2019		2018 (revised)
Deferred tax assets:
Investment in partnership⁽¹⁾	$	40,880	$	14,443
Stock-based compensation	811		186
Tax Receivable Agreement	—		193
Deferred revenue	564		571
Accrued expenses	110		29
Net operating loss carryforwards⁽¹⁾	6,360		1,775
Section 163j carryforward	2,006		—
Other	42		33
Gross deferred tax assets	50,773		17,230
Valuation allowance⁽¹⁾	(16,609)		(15,517)

Deferred tax liabilities:
Intangible assets	$	(6,257)	$	(1,656)
Other	(285)		(5)
Net deferred tax asset	$	27,622	$	52

_________________

1.During the preparation of the Company’s 2019 financial statements, management determined that immaterial adjustments were necessary to correct certain 2018 amounts in the table above as follows. The deferred tax asset related to the Company’s investment in partnership was decreased by $7,515 with an equal decrease in the valuation allowance. Additionally, the amount associated with net operating loss carryforwards was increased by $1,672 with a corresponding increase in the valuation allowance. These adjustments had no effect on the Company’s consolidated financial position, results of operations or cash flows for any period presented herein.

Federal and state net operating loss carryforwards for the Company were $70,970 as of September 30, 2019 and will begin to expire in 2024. 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 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 SEC staff issued Staff Accounting Bulletin No. 118, which allowed the Company to record provisional amounts during a measurement period not to extend beyond one year after the enactment date. As of December 22, 2018, the Company completed its accounting for all of the enactment-date income tax effects of the Tax Cuts and Jobs Act. The Company made no material adjustments to the provisional amounts recorded.

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, 2019

Fair Value Disclosures [Abstract]

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, 2019 and 2018, because of the relatively short maturity dates on these instruments. The carrying amount of debt approximates fair value as of September 30, 2019 and 2018, 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, 2017	$	767	$	3,340
Exercise of warrant liabilities into Common Units	8,487		—
Change in the fair value of warrant liabilities, included in Other expenses	(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

Contingent consideration accrued at time of business combination	—		13,032
Change in fair value of contingent consideration included in Operating expenses	—		3,389
Contingent consideration paid	—		(4,194)
Balance at September 30, 2019	$	—	$	18,226

Approximately $10,223 and $3,813 of contingent consideration was recorded in accrued expenses and other current liabilities as of September 30, 2019 and 2018, respectively. Approximately $8,003 and $2,186 of contingent consideration was recorded in other long-term liabilities as of September 30, 2019 and 2018, respectively.

- Definition

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.

+ References + Details

Equity-Based Compensation

12 Months Ended

Sep. 30, 2019

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

Equity-Based Compensation

EQUITY-BASED COMPENSATION

A summary of equity-based compensation expense recognized during the years ended September 30, 2019, 2018 and 2017 is as follows:


	Year ended September 30,
	2019		2018		2017
TRA non-participation compensatory shares	$	—	$	741	$	—
Stock options	6,124		826		—
Equity-based compensation expense	$	6,124	$	1,567	$	—

Amounts are included in general and administrative expense on the consolidated statements of operations. Income tax benefits of 160 were recognized related to equity-based compensation during the year ended September 30, 2019. No income tax benefits were recognized related to equity-based compensation during the years ended September 30, 2018, and 2017.

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%. As of September 30, 2019, there were 4,552,873 options available to grant under the 2018 Plan.

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 during the year ended September 30, 2019 and from June 20, 2018 through September 30, 2018 was determined on the grant date using the Black-Scholes valuation model based on the following weighted-average assumptions:


	September 30, 2019		September 30, 2018
Expected volatility⁽¹⁾	26.7	%	26.2	%
Expected dividend yield⁽²⁾	—	%	—	%
Expected term⁽³⁾	6 years		6 years
Risk-free interest rate⁽⁴⁾	2.5	%	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, 2019 is as follows:


	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	2,138,500	$	13.13
Granted	2,432,916	22.50
Exercised	(89,974)	13.06
Forfeited	(240,747)	16.20
Outstanding at end of period	4,240,695	$	18.33

The weighted-average grant date fair value of stock options granted during the year ended September 30, 2019 was $7.06. As of September 30, 2019, there were 4,240,695 stock options outstanding, of which 611,592 were exercisable. As of September 30, 2019, total unrecognized compensation expense related to unvested stock options, including an estimate for pre-vesting forfeitures, was $17,770, which is expected to be recognized over a weighted-average period of 2.3 years. The Company's policy is to account for forfeitures of stock-based compensation awards as the occur. The total fair value of stock options that vested during the year ended September 30, 2019 was $2,925.

Stockholders' / Members' Equity and Redeemable Class A Units

12 Months Ended

Sep. 30, 2019

Equity [Abstract]

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, 2019

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 $2,302, $1,555 and $997 during the years ended September 30, 2019, 2018 and 2017, respectively.

A summary of approximate future minimum payments under these leases as of September 30, 2019 is as follows:


Years ending September 30:
2020	$	2,581
2021	2,150
2022	1,900
2023	1,721
2024	1,205
Thereafter	940
Total	$	10,497

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, 2019, such minimum fee commitments were as follows:


Years ending September 30:
2020	$	3,733
2021	1,457
2022	2,046
2023	2,646
2024	243
Thereafter	—
Total	$	10,125

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. After taking into consideration the evaluation of such legal matters by the Company's legal counsel, the Company's management believes at this time such matters will not have a material impact on the Company's consolidated balance sheet, results of operations or cash flows.

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, 2019
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 and $632 during the years ended September 30, 2018 and 2017, 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 and $1,282 during the years ended September 30, 2018 and 2017, 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 $81, $53 and $27 during the years ended September 30, 2019, 2018 and 2017 respectively. i3 Verticals, LLC, the Company's CEO and Clay Whitson, the Company's CFO, own 2.0%, 10.6% 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, 2019, the total amount due under the Tax Receivable Agreement was $23,229.

Segments

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segments

SEGMENTS

The 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 payment facilitator 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, 2019, 2018 and 2017.


	As of and for the Year ended September 30, 2019
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	336,800	$	39,507	$	—	$	376,307

Operating expenses
Interchange and network fees	236,170		6,697		—		242,867
Other costs of services	41,309		2,928		—		44,237
Selling general and administrative	25,150		19,184		18,526		62,860
Depreciation and amortization	11,788		4,223		553		16,564
Change in fair value of contingent consideration	51		3,338		—		3,389
Income (loss) from operations	$	22,332	$	3,137	$	(19,079)	$	6,390

Processing margin⁽¹⁾	$	76,343	$	30,523	$	—	$	106,866
Total assets	$	203,326	$	112,514	$	33,462	$	349,302
Goodwill	$	108,472	$	59,812	$	—	$	168,284

__________________________

1.Processing margin is equal to revenue less interchange and network fees, less other costs of services, $17,022, $641 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, 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	$	141,977	$	28,339	$	4,826	$	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.

Non-Controlling Interest	12 Months Ended
Non-Controlling Interest	Sep. 30, 2019
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, 2019, and 2018, respectively, i3 Verticals, Inc. owned 14,444,115 and 9,112,042 of i3 Verticals, LLC's Common Units, representing a 52.8% and 34.6% economic ownership interest in i3 Verticals, LLC.

Earnings Per Share

12 Months Ended

Sep. 30, 2019

Earnings Per Share [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 for the year ended September 30, 2018 represents only the period from June 25, 2018 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,
	2019		2018
Basic net (loss) income per share:
Numerator
Net income⁽¹⁾	$	563	$	2,673
Less: Net income attributable to non-controlling interests	3,608		1,937
Net (loss) income attributable to Class A common stockholders	$	(3,045)	$	736
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	10,490,981		8,812,630
Basic net (loss) income per share⁽³⁾	$	(0.29)	$	0.08

Dilutive net (loss) income per share⁽³⁾:
Numerator
Net (loss) income attributable to Class A common stockholders			$	736
Reallocation of net income assuming conversion of common units⁽⁴⁾			1,464
Net income attributable to Class A common stockholders - diluted			$	2,200
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 for the year ended September 30, 2018 represents the net income attributable to Class A common stockholders for the period from June 25, 2018 through September 30, 2018.

2.Excludes 282,801 and 299,412 restricted Class A common stock units for the years ended September 30, 2019 and 2018, respectively.

3.For the year ended September 30, 2019, all potentially dilutive securities were anti-dilutive, so diluted net loss per share was equivalent to basic net loss per share. The following securities were excluded from the weighted average effect of dilutive securities in the computation of diluted earnings per share of Class A common stock:

a.15,856,855 shares of weighted average Class B common stock for the year ended September 30, 2019, along with the reallocation of net income assuming conversion of these shares, were excluded because the effect would have been anti-dilutive,

b.626,500 stock options for the year ended September 30, 2019, were excluded because the exercise price of these stock options exceeded the average market price of our Class A common stock during the period (“out-of-the-money”) and the effect of including them would have been anti-dilutive, and

c.1,009,858 shares for the year ended September 30, 2019, resulting from estimated stock option exercises as calculated by the treasury stock method, and 282,801 restricted Class A common units for the year ended September 30, 2019 were excluded because the effect of including them would have been anti-dilutive.

4.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, 2019

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

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, 2019, 2018, and 2017:


	Year ended September 30,
	2019		2018		2017
Exchange of Junior Subordinated Notes for Class A Units	$	—	$	—	$	500
Common Units issued as part of acquisitions' purchase consideration (Note 4)	$	—	$	104	$	275
Restricted Class A common stock issued as part of acquisitions' purchase consideration (Note 4)	$	225	$	550	$	—
Acquisition date fair value of contingent consideration in connection with business combinations	$	13,032	$	2,084	$	1,221
Replacement of the 2016 Senior Secured Credit Facility with the 2017 Senior Secured Credit Facility	$	—	$	87,525	$	—
Replacement of the 2017 Senior Secured Credit Facility with the Senior Secured Credit Facility	$	100,229	$	—	$	—
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
Preferred return on Class A Units	$	—	$	2,522	$	2,223
Debt issuance costs financed with proceeds from the 2017 Senior Secured Credit Facility	$	—	$	904	$	—
Debt issuance costs and accrued interest financed with proceeds from the 2019 Senior Secured Credit Facility	$	1,271	$	—	$	—
Conversion of notes payable to related and unrelated creditors to Class A common stock	$	—	$	8,054	$	—

Quarterly Information (Unaudited)

12 Months Ended

Sep. 30, 2019

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, 2019 and 2018. 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, 2019 and 2018. 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 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⁾⁽³⁾					$	(0.01)	$	0.09
Diluted (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾⁽⁴⁾					$	(0.01)	$	0.09
Fiscal Year 2019:
Revenue	$	84,868	$	85,394	$	97,483	$	108,562
Income (loss) from operations	$	3,530	$	(203)	$	1,194	$	1,869
Income (loss) before income taxes	$	2,616	$	(1,358)	$	(724)	$	(148)
Net income (loss) attributable to i3 Verticals, Inc.	$	178	$	(1,102)	$	(1,191)	$	(930)
Basic earnings (loss) per share attributable to i3 Verticals, Inc.⁽³⁾	$	0.02	$	(0.12)	$	(0.12)	$	(0.07)
Diluted earnings (loss) per share attributable to i3 Verticals, Inc.⁽⁵⁾	$	0.02	$	(0.12)	$	(0.12)	$	(0.07)

____________________

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

2.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.

3.Basic (loss) earnings per share excludes 279,273 and 299,412 restricted Class A common units from the calculation for the quarters ended June 30, 2018, and September 20, 2018, respectively, and 295,405, 277,758, 285,433 and 271,881 restricted Class A common stock units from the calculation for the quarters ended December 31, 2018, March 31, 2019, June 30, 2019, and September 30, 2019, respectively.

4.For the quarters ended June 30, 2018, and September 30, 2018, the following securities were excluded from the weighted average effect of dilutive securities in the computation of diluted earnings per share of Class A common stock:

a.17,213,806 shares of weighted average Class B common stock for the quarters ended June 30, 2018 and September 30, 2018, along with the reallocation of net income assuming conversion of these shares, were excluded from the calculation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive, and

b.377,537 and 565,840 shares for the quarters ended June 30, 2018, and September 30, 2018, respectively, resulting from estimated stock option exercises as calculated by the treasury stock method, and 279,273 and 299,412 restricted Class A common units for the quarters ended June 30, 2018, and September 30, 2018, respectively, were excluded because the effect of including them would have been anti-dilutive.

5.For the quarters ended December 31, 2018, and March 31, June 30, and September 30, 2019, the following securities were excluded from the weighted average effect of dilutive securities in the computation of diluted earnings per share of Class A common stock:

a.17,213,806, 17,112,164, 16,184,026 and 12,921,637 shares of weighted average Class B common stock for the quarters ended December 31, 2018, and March 31, June 30, and September 30, 2019, respectively, along with the reallocation of net income assuming conversion of these shares, were excluded from the calculation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive,

b.754,750, 30,500, 443,000 and 446,000 stock options for the quarters ended December 31, 2018, and March 31, June 30, and September 30, 2019, respectively, were excluded because the exercise price of these stock options exceeded the average market price of our Class A common stock during the period (“out-of-the-money”) and the effect of including them would have been anti-dilutive, and

c.1,012,916, 1,188,987 and 1,131,760 shares for the quarters ended March 31, June 30, and September 30, 2019, respectively, resulting from estimated stock option exercises as calculated by the treasury stock method, and 277,758, 285,433 and 271,881 restricted Class A common units for the quarters ended March 31, June 30, and September 30, 2019, respectively, were excluded because the effect of including them would have been anti-dilutive.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
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 Accounting Standards Update (“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 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 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
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 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
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, 2019, 2018 and 2017 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 material 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
Goodwill	In accordance with ASC 350, Intangibles—Goodwill and Other, the Company tests goodwill for impairment for each reporting unit on an annual basis in the fourth quarter, 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. 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, 2019, 2018 and 2017. 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 estimation methodology, the qualitative factors considered when performing a qualitative assessment 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
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. During the first quarter of fiscal year 2019, management determined it was appropriate to change the amortization rate of our merchant contract intangible assets to reflect the expected distribution of future cash flows. This change was applied prospectively beginning on October 1, 2018 and resulted in $1,290 in additional amortization expense recorded in the year ended September 30, 2019. 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, 2019, 2018 and 2017.
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	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
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. The majority of the Company's gross revenue for the years ended September 30, 2019, 2018 and 2017 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 Advertising and promotion costs are expensed as incurred.
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	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.
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 No. 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 No. 2018-15 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 smaller reporting company and has elected to use the extended transition period provided for such companies. As a result, the Company is not required to adopt this ASU No. 2018-15 until October 1, 2021. Early adoption is permitted, including adoption in an interim period. The Company elected to early adopt this standard using the prospective method as of October 1, 2018. There was no impact on the Company’s consolidated financial statements for the adoption of ASU No. 2018-15. 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 No. 2018-13 provide clarification and modify the disclosure requirements on fair value measurement in Topic 820, Fair Value Measurement. The amendments in this ASU No. 2018-13 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 smaller reporting 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 No. 2018-13 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 No. 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 No. 2018-07 are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. As a public business entity, the Company is an emerging growth company and smaller reporting company and has elected to use the extended transition period provided for such companies. As a result, the Company is not required to adopt this ASU No. 2018-07 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 electing to early adopt this standard as of October 1, 2019. There will be no impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326). The amendments in ASU No. 2016-13 require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The amendments in this ASU No. 2016-13 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 for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. As a public business entity, the Company is an emerging growth company and a smaller reporting 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 No. 2016-13 until October 1, 2023. The Company is currently evaluating the impact of the adoption of this principle on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). This ASU No. 2016-02 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 smaller reporting 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 No. 2016-02 until October 1, 2021. 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. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which narrows aspects of the guidance issued in the amendments in ASU 2016-02, and ASU 2018-11, Leases—Targeted Improvements (Topic 842), by allowing lessees and lessors to recognize and measure existing leases at the beginning of the period of adoption without modifying the comparative period financial statements (which therefore will remain under prior GAAP, Topic 840, Leases). In December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors, which clarifies or simplifies certain narrows aspects of the guidance issued in the amendments in ASU 2016-02 for lessors. Since the Company has not yet adopted ASU 2016-02, the effective date and transition requirements will be the same as the effective date and transition requirements in ASU 2016-02. In March 2019, the FASB issued ASU 2019-01, Codification Improvements, which clarifies certain aspects of the guidance issued in the amendments in ASU 2016-02. The amendments in this ASU No. 2016-02 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. The Company is currently evaluating the impact of the adoption of these principles on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The FASB issued updates and clarifications to ASU 2014-09, including ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Gross versus Net) issued in March 2016, ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing issued in April 2016 and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients issued in May 2016. ASU 2014-09 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 and smaller reporting company, the Company will not be required to adopt this ASU No. 2014-09 until October 1, 2019. The amendment allows companies to use either a full retrospective or a modified retrospective approach, through a cumulative adjustment, to adopt this ASU No. 2014-09. The Company has performed a review of the requirements of the new revenue standard and has monitored the activity of the FASB and the transition resource group as it relates to specific interpretive guidance. The Company has assessed the effects of the new revenue standard in a multi-phase approach. In the first phase, the team reviewed revenue sources and evaluated revenue populations by type to determine the appropriate portfolios that will result in materially consistent conclusions as if each revenue type was evaluated on a contract-by-contract basis under the new standard, applying the five-step model of the new standard to each contract category and comparing the results to current accounting practices. In the second phase, the Company quantified the potential effects, assessed additional contract categories and principal agent considerations, revised accounting policies and considered the effects on related disclosures and/or internal control over financial reporting. The third phase, which will complete the adoption and implementation of the new revenue standard, includes quantifying the cumulative-effect adjustment (including tax effects). The new standard will change the timing of certain revenue and expenses to be recognized under various arrangement types. In addition, it could increase the administrative burden on the Company’s operations to properly account for customer contracts and provide the more expansive required disclosures. More judgment and estimates will be required when applying the requirements of the new standard than are required under existing GAAP, such as estimating the amount of variable consideration to include in transaction price and estimating expected periods of benefit for certain costs. Through management's review of individual contracts and historical revenue recognition patters in comparison to the provisions under ASU 2014-09, the Company expects the timing of revenue to be recognized under ASU 2014-09 for each of the Company’s revenue categories, including discount fees, software licensing subscriptions, ongoing support, and other POS-related solutions, will be similar to the timing of revenue recognized under current accounting practices. The Company will evaluate, on an ongoing basis, costs to obtain contracts with customers, as well as certain implementation and set-up costs, and, in some cases, may be required to amortize these costs over longer periods than they were historically amortized. Finally, the new standard requires additional disclosures regarding revenues and related capitalized contract costs, if any. The Company is adopting the new revenue standard using a modified retrospective basis on October 1, 2019. The Company has calculated that the adoption will result in a $1,821 cumulative increase to retained earnings, due to capitalized costs to obtain contracts with customers being amortized over the expected life of the customer rather than the life of the specific contract. The Company currently expects the most significant ongoing impact of adopting the new revenue standard in fiscal year 2020 to be driven by changes in principal versus agent considerations, with the majority of the change overall in total net revenue attributable to reflecting the Company's interchange and network fees on a net basis prospectively, as opposed to its gross presentation of $242,867 in the year ended September 30, 2019. The Company does not expect the adoption of the new revenue standard to have a material impact on net income. The Company will include additional disclosures of the amount by which each consolidated financial statement line item is affected during fiscal year 2020, as compared to the guidance that was in effect before the change, and an explanation of the reasons for any significant changes.
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, 2019

Accounting Policies [Abstract]

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, 2019		September 30, 2018
Cash and cash equivalents on consolidated balance sheet	$	1,119	$	572
Restricted cash	2,081		665
Total cash, cash equivalents and restricted cash on consolidated statement of cash flows	$	3,200	$	1,237

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2019

Business Acquisition [Line Items]

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,
	2019		2018
Revenue	$	418,815	$	394,373
Net income (loss)	$	(4,483)	$	(16,166)

2016 Business Combinations

Business Acquisition [Line Items]

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

2017 Business Combinations

Business Acquisition [Line Items]

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

2018 Business Combinations

Business Acquisition [Line Items]

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, 2019 were as follows:


	Pace		Other		Total
Cash and cash equivalents	$	108	$	4,453	$	4,561
Accounts receivable	545		4,732		5,277
Settlement assets	—		18		18
Related party receivable	—		—		—
Inventories	45		61		106
Prepaid expenses and other current assets	59		505		564
Property and equipment	527		1,929		2,456
Capitalized software	3,400		9,440		12,840
Acquired merchant relationships	13,400		34,480		47,880
Exclusivity Agreements	—		—		—
Non-compete agreements	60		150		210
Trade name	500		1,540		2,040
Goodwill	36,522		47,777		84,299
Other assets	1,689		2		1,691
Total assets acquired	56,855		105,087		161,942

Accounts payable	722		369		1,091
Accrued expenses and other current liabilities	56		2,108		2,164
Settlement obligations	—		18		18
Deferred revenue, current	24		2,698		2,722
Other long-term liabilities	—		1,124		1,124
Net assets acquired	$	56,053	$	98,770	$	154,823

Property and Equipment, Net (Tables)

12 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

A summary of the Company's property and equipment as of September 30, 2019 and 2018 is as follows:


	Estimated Useful Life	2019		2018
Computer equipment and software	2 to 7 years	$	1,990	$	636
Furniture and fixtures	2 to 7 years	1,639		1,299
Terminals	2 to 3 years	429		588
Office equipment	2 to 5 years	940		107
Automobiles	3 years	307		114
Leasehold improvements	2 to 7 years	1,665		1,506
Accumulated depreciation		(1,944)		(1,292)
Property and equipment, net		$	5,026	$	2,958

Capitalized Software, Net (Tables)

12 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Capitalized Computer Software

A summary of the Company's capitalized software as of September 30, 2019 and 2018 is as follows:


	Estimated Useful Life	2019		2018
Software development costs	1 to 7 years	$	20,347	$	6,021
Development in progress		833		389
Accumulated amortization		(5,726)		(3,038)
Capitalized software, net		$	15,454	$	3,372

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2019

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, 2017 (net of accumulated impairment losses of $11,458, $0 and $0, respectively)	$	49,173	$	9,344	$	—	$	58,517
Goodwill attributable to acquisition activity during the year ended September 30, 2018	20,493		4,944		—		25,437
Balance at September 30, 2018	69,666		14,288		—		83,954
Goodwill attributable to acquisition activity during the year ended September 30, 2019	38,806		45,524		—		84,330
Balance at September 30, 2019	$	108,472	$	59,812	$	—	$	168,284

Schedule of Finite-Lived Intangible Assets

Intangible assets consisted of the following as of September 30, 2019:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	142,671	$	(43,579)	$	99,092	12 to 20 years – accelerated or straight-line
Non-compete agreements	1,770		(619)		1,151		2 to 5 years – straight-line
Website development costs	77		(22)		55		3 years – straight-line
Trade names	4,292		(1,307)		2,985		3 to 7 years – straight-line
Residual buyouts	5,346		(1,882)		3,464		2 to 8 years – straight-line
Referral and exclusivity agreements	900		(264)		636		5 to 10 years – straight-line
Total finite-lived intangible assets	155,056		(47,673)		107,383

Indefinite-lived intangible assets:
Trademarks	36		—		36
Total identifiable intangible assets	$	155,092	$	(47,673)	$	107,419

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

Schedule of Indefinite-Lived Intangible Assets

Intangible assets consisted of the following as of September 30, 2019:


	Cost		Accumulated Amortization		Carrying Value		Amortization Life and Method
Finite-lived intangible assets:
Merchant relationships	$	142,671	$	(43,579)	$	99,092	12 to 20 years – accelerated or straight-line
Non-compete agreements	1,770		(619)		1,151		2 to 5 years – straight-line
Website development costs	77		(22)		55		3 years – straight-line
Trade names	4,292		(1,307)		2,985		3 to 7 years – straight-line
Residual buyouts	5,346		(1,882)		3,464		2 to 8 years – straight-line
Referral and exclusivity agreements	900		(264)		636		5 to 10 years – straight-line
Total finite-lived intangible assets	155,056		(47,673)		107,383

Indefinite-lived intangible assets:
Trademarks	36		—		36
Total identifiable intangible assets	$	155,092	$	(47,673)	$	107,419

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

Schedule of Future Amortization Expense of Finite-lived Intangible Assets


2020	$	12,098
2021	10,546
2022	9,401
2023	8,355
2024	7,766
Thereafter	59,217
	$	107,383

Accrued Expenses and Other Liabilities (Tables)

12 Months Ended

Sep. 30, 2019

Payables and Accruals [Abstract]

Summary of Accrued Expenses and Other Current Liabilities

A summary of the Company's accrued expenses and other current liabilities as of September 30, 2019 and 2018 is as follows:


	2019		2018
Accrued wages, bonuses, commissions and vacation	$	4,256	$	1,975
Accrued interest	254		75
Accrued contingent consideration --- current portion	10,223		3,813
Tax receivable agreement liability --- current portion	24		25
Accrued tax liabilities	50		836
Customer deposits	1,968		1,333
Other current liabilities	4,785		3,481
Accrued expenses and other current liabilities	$	21,560	$	11,538

Summary of Long-term Liabilities

A summary of the Company's long-term liabilities as of September 30, 2019 and 2018 is as follows:


	2019		2018
Accrued contingent consideration --- long-term portion	$	8,003	$	2,186
Deferred tax liability --- long-term	516		1,100
Other long-term liabilities	605		649
Total other long-term liabilities	$	9,124	$	3,935

Long-Term Debt, Net (Tables)

12 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Summary of Long-term Debt

A summary of long-term debt, net as of September 30, 2019 and September 30, 2018 is as follows:


	Maturity	2019		2018
Term loans to bank under the 2017 Senior Secured Credit Facility	October 30, 2022	$	—	$	35,000
Revolving lines of credit to banks under the 2017 Senior Secured Credit Facility	October 30, 2022	—		3,250
Revolving lines of credit to banks under the Senior Secured Credit Facility	May 9, 2024	141,144		—
Debt issuance costs, net		(1,846)		(1,474)
Total long-term debt, net of issuance costs		139,298		36,776
Less current portion of long-term debt		—		(5,000)
Long-term debt, less current portion		$	139,298	$	31,776

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

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,
	2019		2018		2017
Current:
Federal tax expense	$	220	$	668	$	—
State tax expense	189		351		121
Deferred
Federal tax (benefit)	(487)		(685)		—
State tax expense (benefit)	(99)		3		56
Income tax expense	$	(177)	$	337	$	177

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,
	2019						2018						2017
Expected U.S. federal income taxes at statutory rate	$	81	21.0	%	$	(1,139)	24.6	%	$	370	34.3	%
Partnership income not taxed at federal level	(1,007)		(260.9)	%	294		(6.4)	%	(1,352)		(125.3)	%
Valuation allowance	251		65.0	%	965		(20.9)	%	914		84.7	%
State and local income taxes, net of federal benefit	104		26.9	%	295		(6.4)	%	177		16.4	%
Nondeductible expenses	393		101.8	%	398		(8.6)	%	67		6.2	%
Federal tax rate change	—		—	%	(471)		10.2	%	—		—	%
Other	1		0.3	%	(5)		0.1	%	1		0.1	%
Income tax (benefit) expense	$	(177)	(45.9)	%	$	337	(7.3)	%	$	177	16.4	%

Schedule of Deferred Tax Assets and Liabilities

Net deferred taxes spanning multiple jurisdictions as of September 30, 2019 and 2018 were as follows:


	September 30,
	2019		2018 (revised)
Deferred tax assets:
Investment in partnership⁽¹⁾	$	40,880	$	14,443
Stock-based compensation	811		186
Tax Receivable Agreement	—		193
Deferred revenue	564		571
Accrued expenses	110		29
Net operating loss carryforwards⁽¹⁾	6,360		1,775
Section 163j carryforward	2,006		—
Other	42		33
Gross deferred tax assets	50,773		17,230
Valuation allowance⁽¹⁾	(16,609)		(15,517)

Deferred tax liabilities:
Intangible assets	$	(6,257)	$	(1,656)
Other	(285)		(5)
Net deferred tax asset	$	27,622	$	52

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

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, 2017	$	767	$	3,340
Exercise of warrant liabilities into Common Units	8,487		—
Change in the fair value of warrant liabilities, included in Other expenses	(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

Contingent consideration accrued at time of business combination	—		13,032
Change in fair value of contingent consideration included in Operating expenses	—		3,389
Contingent consideration paid	—		(4,194)
Balance at September 30, 2019	$	—	$	18,226

Equity-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2019

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, 2019, 2018 and 2017 is as follows:


	Year ended September 30,
	2019		2018		2017
TRA non-participation compensatory shares	$	—	$	741	$	—
Stock options	6,124		826		—
Equity-based compensation expense	$	6,124	$	1,567	$	—

Fair Value of Stock Option Awards


	September 30, 2019		September 30, 2018
Expected volatility⁽¹⁾	26.7	%	26.2	%
Expected dividend yield⁽²⁾	—	%	—	%
Expected term⁽³⁾	6 years		6 years
Risk-free interest rate⁽⁴⁾	2.5	%	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, 2019 is as follows:


	Stock Options	Weighted Average Exercise Price
Outstanding at beginning of period	2,138,500	$	13.13
Granted	2,432,916	22.50
Exercised	(89,974)	13.06
Forfeited	(240,747)	16.20
Outstanding at end of period	4,240,695	$	18.33

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

12 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Warrants

Warrants

Expiration

Exercise Price

Junior Subordinated Notes Warrants

1,433,920

February 14, 2024

2.095

- Definition

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.

+ References + Details

Commitments and Contingencies (Tables)

12 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Approximate Future Minimum Rental Payments for Operating Leases

A summary of approximate future minimum payments under these leases as of September 30, 2019 is as follows:


Years ending September 30:
2020	$	2,581
2021	2,150
2022	1,900
2023	1,721
2024	1,205
Thereafter	940
Total	$	10,497

Minimum Fee Commitments

As of September 30, 2019, such minimum fee commitments were as follows:


Years ending September 30:
2020	$	3,733
2021	1,457
2022	2,046
2023	2,646
2024	243
Thereafter	—
Total	$	10,125

Segments (Tables)

12 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Summary of Reportable Segment Performance


	As of and for the Year ended September 30, 2019
	Merchant Services		Proprietary Software and Payments		Other		Total
Revenue	$	336,800	$	39,507	$	—	$	376,307

Operating expenses
Interchange and network fees	236,170		6,697		—		242,867
Other costs of services	41,309		2,928		—		44,237
Selling general and administrative	25,150		19,184		18,526		62,860
Depreciation and amortization	11,788		4,223		553		16,564
Change in fair value of contingent consideration	51		3,338		—		3,389
Income (loss) from operations	$	22,332	$	3,137	$	(19,079)	$	6,390

Processing margin⁽¹⁾	$	76,343	$	30,523	$	—	$	106,866
Total assets	$	203,326	$	112,514	$	33,462	$	349,302
Goodwill	$	108,472	$	59,812	$	—	$	168,284

__________________________


	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	$	141,977	$	28,339	$	4,826	$	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

__________________________

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

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,
	2019		2018
Basic net (loss) income per share:
Numerator
Net income⁽¹⁾	$	563	$	2,673
Less: Net income attributable to non-controlling interests	3,608		1,937
Net (loss) income attributable to Class A common stockholders	$	(3,045)	$	736
Denominator
Weighted average shares of Class A common stock outstanding⁽²⁾	10,490,981		8,812,630
Basic net (loss) income per share⁽³⁾	$	(0.29)	$	0.08

Dilutive net (loss) income per share⁽³⁾:
Numerator
Net (loss) income attributable to Class A common stockholders			$	736
Reallocation of net income assuming conversion of common units⁽⁴⁾			1,464
Net income attributable to Class A common stockholders - diluted			$	2,200
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 282,801 and 299,412 restricted Class A common stock units for the years ended September 30, 2019 and 2018, respectively.

Significant Non-cash Transactions (Tables)

12 Months Ended

Sep. 30, 2019

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, 2019, 2018, and 2017:


	Year ended September 30,
	2019		2018		2017
Exchange of Junior Subordinated Notes for Class A Units	$	—	$	—	$	500
Common Units issued as part of acquisitions' purchase consideration (Note 4)	$	—	$	104	$	275
Restricted Class A common stock issued as part of acquisitions' purchase consideration (Note 4)	$	225	$	550	$	—
Acquisition date fair value of contingent consideration in connection with business combinations	$	13,032	$	2,084	$	1,221
Replacement of the 2016 Senior Secured Credit Facility with the 2017 Senior Secured Credit Facility	$	—	$	87,525	$	—
Replacement of the 2017 Senior Secured Credit Facility with the Senior Secured Credit Facility	$	100,229	$	—	$	—
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
Preferred return on Class A Units	$	—	$	2,522	$	2,223
Debt issuance costs financed with proceeds from the 2017 Senior Secured Credit Facility	$	—	$	904	$	—
Debt issuance costs and accrued interest financed with proceeds from the 2019 Senior Secured Credit Facility	$	1,271	$	—	$	—
Conversion of notes payable to related and unrelated creditors to Class A common stock	$	—	$	8,054	$	—

Quarterly Information (Tables)

12 Months Ended

Sep. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information


	Quarter ended
	December 31,		March 31,		June 30,		September 30,
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⁾⁽³⁾					$	(0.01)	$	0.09
Diluted (loss) earnings per share attributable to i3 Verticals, Inc.⁽²⁾⁽⁴⁾					$	(0.01)	$	0.09
Fiscal Year 2019:
Revenue	$	84,868	$	85,394	$	97,483	$	108,562
Income (loss) from operations	$	3,530	$	(203)	$	1,194	$	1,869
Income (loss) before income taxes	$	2,616	$	(1,358)	$	(724)	$	(148)
Net income (loss) attributable to i3 Verticals, Inc.	$	178	$	(1,102)	$	(1,191)	$	(930)
Basic earnings (loss) per share attributable to i3 Verticals, Inc.⁽³⁾	$	0.02	$	(0.12)	$	(0.12)	$	(0.07)
Diluted earnings (loss) per share attributable to i3 Verticals, Inc.⁽⁵⁾	$	0.02	$	(0.12)	$	(0.12)	$	(0.07)

____________________

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

Organization and Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 10, 2019	Jun. 25, 2018	Sep. 30, 2019	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 public offering		$ 92,500
i3Verticals, LLC
Subsidiary, Sale of Stock [Line Items]
Non-controlling interest, ownership interest (percent)			52.80%	34.60%
i3Verticals, LLC
Subsidiary, Sale of Stock [Line Items]
Net proceeds from public offering	$ 20,870
Common units, purchased (in units)	1,000,000
Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)				48.20%
Common units, purchased (in units)	4,165,527
Class B Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)				47.20%
Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Shares issued (shares)	5,165,527
Public offering price (in USD per share)	$ 22.75
Net proceeds from public offering	$ 111,640
Underwriters exercised option to purchase additional shares (in shares)	673,764
Class A Common Stock \| Continuing Equity Owner
Subsidiary, Sale of Stock [Line Items]
Shareholders ownership interest (percent)				1.00%

Summary of Significant Accounting Policies (Details) $ in Thousands		12 Months Ended
	Oct. 01, 2019 USD ($)	Sep. 30, 2019 USD ($) reportable_unit	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Concentration Risk [Line Items]
Cash and cash equivalents on consolidated balance sheet		$ 1,119	$ 572
Restricted cash		2,081	665
Total cash and cash equivalents on consolidated statement of cash flows		3,200	1,237	$ 1,968	$ 4,189
Allowance for doubtful accounts		232	205
Settlement assets		0	863
Inventories			1,294	930
Impairment charges		0	0	0
Goodwill impairment		0	0	0
Amortization expense of intangible assets		12,394	9,341	$ 7,669
Revenue from acquisitions		27,820
Net income from acquisitions		(2,229)
Discount fees as percent of gross revenue (percent)				85.00%
Advertising expense		1,443	765	$ 654
Equity-based compensation expense		$ 6,124	1,567	0
Number of reporting units \| reportable_unit		9
Change in fair value of warrant liability		$ 0	$ 8,487	$ (415)
Forecast
Concentration Risk [Line Items]
Cumulative increase to retained earnings	$ 1,821
Intangible Assets, Amortization Period
Concentration Risk [Line Items]
Amortization expense of intangible assets		$ 1,290
Product Concentration Risk \| Gross Revenue
Concentration Risk [Line Items]
Discount fees as percent of gross revenue (percent)				85.00%

Credit Risk and Other Concentrations (Details)	12 Months Ended
Credit Risk and Other Concentrations (Details)	Sep. 30, 2019 customer	Sep. 30, 2019 reportable_unit	Sep. 30, 2019 payment_processor	Sep. 30, 2019	Sep. 30, 2018 customer payment_processor	Sep. 30, 2017 customer payment_processor
Concentration Risk [Line Items]
Number of third party payment processors \| payment_processor			6
Concentration risk (percent)						85.00%
Gross Revenue \| Supplier Concentration Risk
Concentration Risk [Line Items]
Number of third party payment processors		3	3		3	3
Concentration risk (percent)				10.00%	10.00%	10.00%
Gross Revenue \| Customer Concentration Risk
Concentration Risk [Line Items]
Number of customers \| customer	0				0	0
Concentration risk (percent)				1.00%	1.00%	1.00%

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Residual buyouts
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 3,585	$ 1,567	$ 476
Estimated amortization period	7 years	7 years	2 years
Referral agreement
Finite-Lived Intangible Assets [Line Items]
Intangible assets acquired	$ 0	$ 815
Estimated amortization period	5 years

Acquisitions (Details)					12 Months Ended
Acquisitions (Details)	May 31, 2019 USD ($)	Oct. 31, 2017 USD ($)	Aug. 01, 2017 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2019 USD ($) business	Sep. 30, 2018 USD ($) business	Sep. 30, 2017 USD ($) reportable_unit
Business Acquisition [Line Items]
Number of Businesses Acquired \| reportable_unit							4
Common units issued to seller					$ 0	$ 104,000	$ 275,000
Cash and cash equivalents					4,561,000
Accounts receivable					5,277,000
Settlement assets					18,000
Related party receivable					0
Inventories					106,000
Prepaid expenses and other current assets					564,000
Property and equipment					2,456,000
Other assets					1,691,000
Goodwill					168,284,000	83,954,000	58,517,000
Total assets acquired					161,942,000
Accounts payable					1,091,000
Accrued expenses and other current liabilities					2,164,000
Settlement obligations					18,000
Deferred revenue, current					2,722,000
Other long-term liabilities					1,124,000
Net assets acquired					154,823,000
Equity issued as part of acquisitions' purchase consideration					$ 0	104,000	$ 275,000
Axia Payments, LLC
Business Acquisition [Line Items]
Estimated amortization period							14 years
Other 2016 Business Combinations
Business Acquisition [Line Items]
Total purchase consideration							$ 3
Estimated amortization period							14 years
2017 Business Combinations
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition							$ 2
Accounts receivable							30,000
Inventories							15,000
Prepaid expenses and other current assets							226,000
Property and equipment							62,000
Goodwill							23,461,000
Total assets acquired							45,734,000
Deferred rent							5,000
Deferred revenue, current							58,000
Net assets acquired							45,671,000
2018 Business Combinations
Business Acquisition [Line Items]
Cash and cash equivalents						1,338,000
Accounts receivable						1,008,000
Settlement assets						350,000
Related party receivable						773,000
Inventories						1,318,000
Property and equipment						127,000
Other assets						4,000
Goodwill						25,437,000
Total assets acquired						45,459,000
Accounts payable						1,342,000
Accrued expenses and other current liabilities						3,554,000
Settlement obligations						350,000
Deferred revenue, current						2,219,000
Other long-term liabilities						1,757,000
Net assets acquired						36,237,000
Merchant Relationships Portfolio Purchase
Business Acquisition [Line Items]
Total purchase consideration				$ 1,156,000
Estimated amortization period				15 years
Acquisition-related costs				$ 56,000
Other 2018 Business Combinations
Business Acquisition [Line Items]
Number of Businesses Acquired \| business					4
Common units issued to seller						550,000
Proceeds from issuance of long-term debt used to fund the acquisition						13,700,000
Contingent cash consideration						1,354,000
Total purchase consideration						15,604,000
Cash and cash equivalents						0
Accounts receivable						0
Settlement assets						350,000
Related party receivable						0
Inventories						0
Property and equipment						58,000
Other assets						4,000
Goodwill						8,914,000
Total assets acquired						16,374,000
Accounts payable						0
Accrued expenses and other current liabilities						431,000
Settlement obligations						350,000
Deferred revenue, current						190,000
Other long-term liabilities						0
Net assets acquired						$ 15,403,000
Estimated amortization period						12 years
Equity issued as part of acquisitions' purchase consideration						$ 550,000
Fairway Payments, LLC
Business Acquisition [Line Items]
Common units issued to seller			$ 275,000
Total purchase consideration			$ 39,275,000
Accounts receivable							0
Inventories							0
Prepaid expenses and other current assets							226,000
Property and equipment							5,000
Goodwill							19,309,000
Total assets acquired							39,280,000
Deferred rent							5,000
Deferred revenue, current							0
Net assets acquired							39,275,000
Estimated amortization period			15 years
Acquisition-related costs							284,000
Equity issued as part of acquisitions' purchase consideration			$ 275,000
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							5,175,000
Contingent cash consideration							1,221,000
Total purchase consideration							6,396,000
Accounts receivable							30,000
Inventories							15,000
Prepaid expenses and other current assets							0
Property and equipment							57,000
Goodwill							4,152,000
Total assets acquired							6,454,000
Deferred rent							0
Deferred revenue, current							58,000
Net assets acquired							6,396,000
Estimated amortization period						15 years
Acquisition-related costs						$ 233,000	184,000
Potential additional consideration						11,800,000	$ 4,700,000
San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition		$ 20,000,000
Contingent cash consideration		730,000				730,000
Total purchase consideration		$ 20,834,000
Cash and cash equivalents						1,338,000
Accounts receivable						1,008,000
Settlement assets						0
Related party receivable						773,000
Inventories						1,318,000
Property and equipment						69,000
Other assets						0
Goodwill						16,523,000
Total assets acquired						29,085,000
Accounts payable						1,342,000
Accrued expenses and other current liabilities						3,123,000
Settlement obligations						0
Deferred revenue, current						2,029,000
Other long-term liabilities						1,757,000
Net assets acquired						20,834,000
Estimated amortization period		11 years
Acquisition-related costs		$ 293,000
Potential additional consideration		2,400,000
Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Common units issued to seller	$ 56,053,000
Proceeds from issuance of long-term debt used to fund the acquisition	52,492,000
Contingent cash consideration	$ 3,336,000
Cash and cash equivalents					$ 108,000
Accounts receivable					545,000
Settlement assets					0
Related party receivable					0
Inventories					45,000
Prepaid expenses and other current assets					59,000
Property and equipment					527,000
Other assets					1,689,000
Goodwill					36,522,000
Total assets acquired					56,855,000
Accounts payable					722,000
Accrued expenses and other current liabilities					56,000
Settlement obligations					0
Deferred revenue, current					24,000
Other long-term liabilities					0
Net assets acquired					56,053,000
Estimated amortization period	15 years
Acquisition-related costs	$ 444,000
Potential additional consideration	20,000,000
Equity issued as part of acquisitions' purchase consideration	56,053,000
Other 2019 Business Combinations
Business Acquisition [Line Items]
Proceeds from issuance of long-term debt used to fund the acquisition					89,074,000
Contingent cash consideration					9,696,000
Total purchase consideration					98,770,000
Cash and cash equivalents					4,453,000
Accounts receivable					4,732,000
Settlement assets					18,000
Related party receivable					0
Inventories					61,000
Prepaid expenses and other current assets					505,000
Property and equipment					1,929,000
Other assets					2,000
Goodwill					47,777,000
Total assets acquired					105,087,000
Accounts payable					369,000
Accrued expenses and other current liabilities					2,108,000
Settlement obligations					18,000
Deferred revenue, current					2,698,000
Other long-term liabilities					1,124,000
Net assets acquired					98,770,000
Acquisition-related costs					1,179,000
Potential additional consideration					34,900,000
2019 Business Combinations
Business Acquisition [Line Items]
Goodwill					84,299,000
Class A Common Stock \| Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Common units issued to seller	225,000
Equity issued as part of acquisitions' purchase consideration	$ 225,000
i3Verticals, LLC \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Common units issued to seller		104,000
Equity issued as part of acquisitions' purchase consideration		$ 104,000
Exclusivity agreements
Business Acquisition [Line Items]
Intangible assets					0
Exclusivity agreements \| 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						100,000
Exclusivity agreements \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						$ 100,000
Estimated amortization period						10 years
Exclusivity agreements \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets						$ 0
Exclusivity agreements \| Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Intangible assets					0
Exclusivity agreements \| Other 2019 Business Combinations
Business Acquisition [Line Items]
Intangible assets					0
Capitalized software
Business Acquisition [Line Items]
Intangible assets					12,840,000
Capitalized software \| 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						200,000
Capitalized software \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						200,000
Capitalized software \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets						0
Capitalized software \| Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Intangible assets					3,400,000
Estimated amortization period	7 years
Capitalized software \| Other 2019 Business Combinations
Business Acquisition [Line Items]
Intangible assets					9,440,000
Acquired merchant relationships
Business Acquisition [Line Items]
Intangible assets					47,880,000
Acquired merchant relationships \| Axia Payments, LLC
Business Acquisition [Line Items]
Estimated amortization period							15 years
Acquired merchant relationships \| 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 21,360,000
Acquired merchant relationships \| 2018 Business Combinations
Business Acquisition [Line Items]
Prepaid expenses and other current assets						1,184,000
Intangible assets						10,600,000
Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Prepaid expenses and other current assets						8,000
Intangible assets						5,100,000
Acquired merchant relationships \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets							19,200,000
Estimated amortization period			15 years
Acquired merchant relationships \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 2,160,000
Acquired merchant relationships \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Prepaid expenses and other current assets						1,176,000
Intangible assets						5,500,000
Estimated amortization period		12 years
Acquired merchant relationships \| Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Intangible assets					13,400,000
Estimated amortization period	15 years
Acquired merchant relationships \| Other 2019 Business Combinations
Business Acquisition [Line Items]
Intangible assets					34,480,000
Non-compete agreements
Business Acquisition [Line Items]
Intangible assets					210,000
Non-compete agreements \| Axia Payments, LLC
Business Acquisition [Line Items]
Estimated amortization period							3 years
Non-compete agreements \| 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 80,000
Non-compete agreements \| 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						1,480,000
Non-compete agreements \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						$ 1,440,000
Estimated amortization period						5 years
Non-compete agreements \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets							40,000
Estimated amortization period			3 years
Non-compete agreements \| Other 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 40,000
Non-compete agreements \| San Diego Cash Register Company, Inc.
Business Acquisition [Line Items]
Intangible assets						$ 40,000
Estimated amortization period		2 years
Non-compete agreements \| Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Intangible assets					60,000
Estimated amortization period	3 years
Non-compete agreements \| Other 2019 Business Combinations
Business Acquisition [Line Items]
Intangible assets					150,000
Trade name
Business Acquisition [Line Items]
Intangible assets					2,040,000
Trade name \| Axia Payments, LLC
Business Acquisition [Line Items]
Estimated amortization period							3 years
Trade name \| 2017 Business Combinations
Business Acquisition [Line Items]
Intangible assets							$ 500,000
Trade name \| 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						1,540,000
Trade name \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Intangible assets						$ 200,000
Estimated amortization period						5 years
Trade name \| Fairway Payments, LLC
Business Acquisition [Line Items]
Intangible assets							500,000
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						$ 1,340,000
Estimated amortization period		5 years
Trade name \| Pace Payment Systems, Inc.
Business Acquisition [Line Items]
Intangible assets					500,000
Estimated amortization period	5 years
Trade name \| Other 2019 Business Combinations
Business Acquisition [Line Items]
Intangible assets					$ 1,540,000
Minimum \| Acquired merchant relationships \| Other 2018 Business Combinations
Business Acquisition [Line Items]
Estimated amortization period						12 years
Minimum \| Acquired merchant relationships \| San Diego Cash Register Company, Inc.
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, 2019	Sep. 30, 2018
Business Combinations [Abstract]
Revenue	$ 418,815	$ 394,373
Net income (loss)	$ (4,483)	$ (16,166)

Property and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Accumulated depreciation	$ (1,944)	$ (1,292)
Property, Plant and Equipment, Net, Total	5,026	2,958
Depreciation expense	1,195	802	$ 875
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment	1,990	636
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	1,639	1,299
Terminals
Property, Plant and Equipment [Line Items]
Property and equipment	429	588
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	940	107
Automobiles
Property, Plant and Equipment [Line Items]
Property and equipment	$ 307	114
Estimated Useful Life	3 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,665	$ 1,506
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, 2019	Sep. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ (5,726)	$ (3,038)
Capitalized software, net	15,454	3,372
Software capitalized during the period	15,067	1,292
Amortization expense	2,977	1,696	$ 1,541
Software development costs
Finite-Lived Intangible Assets [Line Items]
Capitalized software	20,347	6,021
Development in progress
Finite-Lived Intangible Assets [Line Items]
Capitalized software	$ 833	$ 389
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, 2019	Sep. 30, 2018	Sep. 30, 2017
Goodwill [Roll Forward]
Goodwill, beginning	$ 83,954	$ 58,517
Goodwill attributable to acquisitions	84,330	25,437
Goodwill, ending	168,284	83,954
Merchant Services
Goodwill [Roll Forward]
Goodwill, beginning	69,666	49,173
Goodwill attributable to acquisitions	38,806	20,493
Goodwill, ending	108,472	69,666
Accumulated impairment losses			$ 11,458
Proprietary Software and Payments
Goodwill [Roll Forward]
Goodwill, beginning	14,288	9,344
Goodwill attributable to acquisitions	45,524	4,944
Goodwill, ending	59,812	14,288
Accumulated impairment losses			0
Other
Goodwill [Roll Forward]
Goodwill, beginning	0	0
Goodwill attributable to 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, 2019	Sep. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 155,056	$ 103,374
Finite-lived intangible assets, accumulated amortization	(47,673)	(37,383)
Finite-lived intangible assets, carrying value	107,383	65,991
Indefinite-lived Intangible Assets		32
Total identifiable intangible assets, cost	155,092	103,406
Total identifiable intangible assets, carrying value	107,419	66,023
Amortization expense of intangible assets	12,394	9,341	$ 7,669
Trademarks
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets	36
Merchant relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	142,671	94,791
Finite-lived intangible assets, accumulated amortization	(43,579)	(34,086)
Finite-lived intangible assets, carrying value	$ 99,092	$ 60,705
Amortization life	15 years	15 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 1,770	$ 1,890
Finite-lived intangible assets, accumulated amortization	(619)	(561)
Finite-lived intangible assets, carrying value	$ 1,151	$ 1,329
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	$ 77	$ 18
Finite-lived intangible assets, accumulated amortization	(22)	(14)
Finite-lived intangible assets, carrying value	$ 55	$ 4
Amortization life	3 years	3 years
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 4,292	$ 3,717
Finite-lived intangible assets, accumulated amortization	(1,307)	(1,850)
Finite-lived intangible assets, carrying value	$ 2,985	$ 1,867
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	$ 5,346	$ 2,043
Finite-lived intangible assets, accumulated amortization	(1,882)	(773)
Finite-lived intangible assets, carrying value	$ 3,464	$ 1,270
Amortization life	2 years	2 years
Referral and exclusivity
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, cost	$ 900	$ 915
Finite-lived intangible assets, accumulated amortization	(264)	(99)
Finite-lived intangible assets, carrying value	$ 636	$ 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, 2019	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 12,098
2020	10,546
2021	9,401
2022	8,355
2023	7,766
Thereafter	59,217
Finite-lived intangible assets, carrying value	$ 107,383	$ 65,991

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Accrued expenses and other current liabilities:
Accrued wages, bonuses, commissions and vacation	$ 4,256	$ 1,975
Accrued interest	254	75
Accrued contingent consideration - current portion	10,223	3,813
Tax receivable agreement liablility - current portion	24	25
Accrued tax liabilities	50	836
Customer deposits	1,968	1,333
Other current liabilities	4,785	3,481
Accrued Liabilities, Current, Total	21,560	11,538
Long-term Liabilities
Accrued contingent consideration - long-term portion	8,003	2,186
Deferred tax liability - long-term	516	1,100
Other long-term liabilities	605	649
Total other long-term liabilities	$ 9,124	$ 3,935

Long-Term Debt, Net - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018
Debt Instrument [Line Items]
Debt issuance costs, net	$ (1,846)	$ (1,474)
Total long-term debt, net of issuance costs	139,298	36,776
Less current portion of long-term debt	0	(5,000)
Long-term debt, less current portion	139,298	31,776
Secured Debt \| Term loans to bank under the Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	0	35,000
Line of Credit \| Revolving Lines of Credit under the 2017 Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	0	3,250
Line of Credit \| Revolving Lines of Credit under the 2019 Senior Secured Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 141,144	$ 0

Long-Term Debt, Net - Additional Information (Details) - USD ($)		1 Months Ended			12 Months Ended
	May 09, 2019	Jun. 30, 2018	Jul. 31, 2017	Jun. 30, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Jun. 25, 2018	Oct. 30, 2017	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Debt converted to shares issued					$ 0	$ 8,054,000	$ 0
Debt extinguishment costs					(152,000)	0	0
Debt issuance costs					1,245,000	1,170,000
Amortization of deferred debt issuance costs					$ 721,000	1,072,000	453,000
2019 Senior Secured Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity	$ 300,000,000
Line if Credit, Optional Addition to Borrowing Capacity	50,000,000
Unused commitment fee (percent)					0.30%
Remaining borrowing capacity					$ 158,856,000
Debt covenant, equity repurchase limit from employees, directors, officers or consultants	$ 3,000,000
2019 Senior Secured Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Unused commitment fee (percent)	0.15%
2019 Senior Secured Credit Facility \| Line of Credit \| Maximum
Debt Instrument [Line Items]
Unused commitment fee (percent)	0.30%
2019 Senior Secured Credit Facility \| Line of Credit \| One, Two, Three or Six-Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)					3.25%
2019 Senior Secured Credit Facility \| Line of Credit \| One, Two, Three or Six-Month LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.25%
2019 Senior Secured Credit Facility \| Line of Credit \| One, Two, Three or Six-Month LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	3.25%
2019 Senior Secured Credit Facility \| Line of Credit \| Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%
2019 Senior Secured Credit Facility \| Line of Credit \| LIBOR Plus 1%
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.00%				1.25%
2019 Senior Secured Credit Facility \| Line of Credit \| LIBOR Plus 1% \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.25%
2019 Senior Secured Credit Facility \| Line of Credit \| LIBOR Plus 1% \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.25%
2019 Senior Secured Credit Facility \| Line of Credit \| Letter of Credit \| Maximum
Debt Instrument [Line Items]
Unused commitment fee (percent)	3.25%
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					$ 0	$ 35,000,000
Senior Secured Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Revolving line of credit borrowing capacity									$ 110,000,000
Quarterly principal payment					$ 1,250,000
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 \| 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 \| 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
Stated interest rate (percent)											12.00%
Write off of unamortized debt issuance costs		$ 78,000
Warrants outstanding (shares)						1,423,688
Intrinsic value of warrants							$ 767,000	$ 9,241,000
Warrant exercise price (in USD per share)							$ 0.01
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)										1,433,920
Debt repaid with proceeds from the Company's IPO		8,054,000
Common Stock \| Junior Subordinated Notes \| Unsecured Debt
Debt Instrument [Line Items]
Debt converted to shares issued			$ 500,000
Debt Conversion, Converted Instrument, Shares Issued			148,000
Debt extinguishment costs				$ 0
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, 2019	Sep. 30, 2018	Sep. 30, 2017
Current:
Federal tax expense	$ 220	$ 668	$ 0
State tax expense	189	351	121
Deferred:
Federal tax (benefit)	(487)	(685)	0
State tax expense (benefit)	(99)	3	56
Income tax (benefit) expense	$ (177)	$ 337	$ 177

Income Tax Expense Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Expected U.S. federal income taxes at statutory rate (percent)	21.00%	24.60%	34.30%
Partnership income not taxed at Partnership level (percent)	(260.90%)	(6.40%)	(125.30%)
Valuation allowance (percent)	65.00%	(20.90%)	84.70%
State and local income taxes, net of federal benefit (percent)	26.90%	(6.40%)	16.40%
Nondeductible expenses (percent)	101.80%	(8.60%)	6.20%
Federal tax rate change (percent)	0.00%	10.20%	0.00%
Other (percent)	0.30%	0.10%	0.10%
Income tax expense (percent)	(45.90%)	(7.30%)	16.40%
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Expected U.S. federal income taxes at statutory rate	$ 81	$ (1,139)	$ 370
Partnership income not taxed at Partnership level	1,007	(294)	1,352
Valuation allowance	(251)	(965)	(914)
State and local income taxes, net of federal benefit	104	295	177
Nondeductible expenses	393	398	67
Federal tax rate change	0	(471)	0
Other	1	(5)	1
Income tax (benefit) expense	$ (177)	$ 337	$ 177

Deferred Tax Assets (Details) - USD ($) $ in Thousands	12 Months Ended
Deferred Tax Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2019
Deferred tax assets
Investment in partnership	$ 14,443	$ 40,880
Stock-based compensation	186	811
Tax receivable agreement	193	0
Deferred revenue	571	564
Accrued expenses	29	110
Net operating loss carryforwards	1,775	6,360
Section 163j carryforward	0	2,006
Other	33	42
Gross deferred tax assets	17,230	50,773
Valuation Allowance	(15,517)	(16,609)
Deferred tax liabilities
Intangible assets	(1,656)	(6,257)
Other	(5)	(285)
Net deferred tax asset	52	$ 27,622
Decrease to Investment in Partnership
Valuation Allowance [Line Items]
Immaterial adjustment to prior year amount	7,515
Decrease to Valuation Allowance
Valuation Allowance [Line Items]
Immaterial adjustment to prior year amount	7,515
Increase to Net Operating Loss Carryforwards
Valuation Allowance [Line Items]
Immaterial adjustment to prior year amount	1,672
Increase to Valuation Allowance
Valuation Allowance [Line Items]
Immaterial adjustment to prior year amount	$ 1,672

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017	Jun. 25, 2018
Class of Stock [Line Items]
Provision (benefit) for income taxes		$ (177)	$ 337	$ 177
Percent of tax benefits payable to continuing equity owners	85.00%		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	17,230	$ 50,773	$ 17,230
Expected Period of Payout to Conitinuing Equity Owners		24 years
Accrued interest related to uncertain tax positions	0	$ 0	0
Accrued penalties related to uncertain tax positions	0	0	0
Minimum
Class of Stock [Line Items]
Expected Payments to Continuing Equity Owners under the Tax Receivable Agreement		0
Maximum
Class of Stock [Line Items]
Expected Payments to Continuing Equity Owners under the Tax Receivable Agreement		2,103
Continuing Equity Owner \| Class B Common Stock
Class of Stock [Line Items]
Deferred tax asset recognized	960	26,736	960
Increase in deferred tax assets		25,776
Tax benefits due to Continuing Equity Owners	816	23,229	$ 816
Increase in Tax Receivable Agreement liabilities		22,413
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		$ 70,970

Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Mezzanine Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	$ 0	$ 767
Change in the fair value of warrant liabilities, included in Other expenses		8,487
Settlement through exercise of warrants or payment of consideration		(9,254)
Balance, ending	0	0
Accrued Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning	5,999	3,340
Change in the fair value of warrant liabilities, included in Other expenses	3,389	3,851
Contingent consideration accrued at time of business combination	13,032	1,877
Settlement through exercise of warrants or payment of consideration	(4,194)	(3,069)
Balance, ending	$ 18,226	5,999
Accrued Expenses and Other Current Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration		10,223	$ 3,813
Other Long-term Liabilities
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Contingent consideration		$ 8,003	$ 2,186

Equity-Based Compensation (Details) - USD ($)		3 Months Ended	12 Months Ended
Equity-Based Compensation (Details) - USD ($)	Jun. 25, 2018	Jun. 30, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense			$ 6,124,000	$ 1,567,000	$ 0
Income tax benefits related to equity-based compensation		$ 0	160	0	0
TRA Non-participation Compensatory Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 741,000		0	741,000	0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense			$ 6,124,000	$ 826,000	$ 0

Equity-Based Compensation - Additional Information (Details) - $ / shares		12 Months Ended
	Jun. 25, 2018	Sep. 30, 2019	May 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted to directors and certain employees (shares)		2,432,916
Options granted, exercise price (in USD per share)		$ 22.50
2018 Equity Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant under the plan (shares)		4,552,873	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)		12 Months Ended
	Jun. 25, 2018	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility (percent)		26.70%
Expected dividend yield (percent)		0.00%
Risk-free interest rate (percent)		2.50%
Stock Options
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	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, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period (shares)	2,138,500
Granted (shares)	2,432,916
Exercised (shares)	(89,974)
Forfeited (shares)	(240,747)
Outstanding at end of period (shares)	4,240,695
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)	$ 18.33	$ 13.13
Granted, weighted average exercise price (in USD per share)	22.50
Exercised, weighted average exercise price (in USD per share)	13.06
Forfeited, weighted average exercise price (in USD per share)	16.20
Outstanding at end of period, weighted average exercise price (in USD per share)	18.33	$ 13.13
Granted, weighted average grant date fair value (in USD per share)	$ 7.06
Options exercisable at end of period (shares)	611,592
Unrecognized compensation expense related to unvested options at end of period	$ 17,770
Period for recognition of unrecognized compensation cost	2 years 3 months 18 days

Stockholders' / Members' Equity and Redeemable Class A Units (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Jun. 10, 2019	Jun. 25, 2018	Sep. 30, 2017	Sep. 30, 2019	Sep. 30, 2018
Class of Stock [Line Items]
Preferred Stock authorized (shares)		10,000,000		10,000,000	10,000,000
Preferred Stock, par value (in USD per share)		$ 0.0001		$ 0.0001	$ 0.0001
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	150,000,000
Common Stock, par value (in USD per share)		$ 0.0001		$ 0.0001	$ 0.0001
Shares issued (shares)	5,165,527
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)				14,444,115	9,112,042
Common Stock, outstanding (shares)				14,444,115	9,112,042
Class B Common Stock
Class of Stock [Line Items]
Common Stock authorized (shares)		40,000,000		40,000,000	40,000,000
Common Stock, par value (in USD per share)		$ 0.0001		$ 0.0001	$ 0.0001
Common Stock issued (shares)				12,921,637	17,213,806
Common Stock, outstanding (shares)				12,921,637	17,213,806
Redeemable Class A Units
Class of Stock [Line Items]
Units issued (shares)			4,900,000
Units outstanding (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
Common Stock, outstanding (shares)			1,548,722
Restricted Class P Units
Class of Stock [Line Items]
Common Stock issued (shares)			7,647,350
Common Stock, outstanding (shares)			7,647,350

Commitments and Contingencies -Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Operating leases for office space and equipment	$ 2,302	$ 1,555	$ 997
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2020	2,581
2021	2,150
2022	1,900
2023	1,721
2024	1,205
Thereafter	940
Total	$ 10,497

Commitments and Contingencies - Minimum Fee Commitments (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2020	$ 3,733
2021	1,457
2022	2,046
2023	2,646
2024	243
Thereafter	0
Total	$ 10,125

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Related Party Transaction [Line Items]
Sale of Class A common stock in initial public offering, net		$ 0	$ 8,054	$ 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
Notes Payable \| Affiliated Entity
Related Party Transaction [Line Items]
Notes payable, related parties			$ 10,500	10,500
Related party interest expense			952	1,282
Junior Subordinated Notes \| Unsecured Debt \| Affiliated Entity
Related Party Transaction [Line Items]
Notes payable, related parties				6,158
Related party interest expense			457	632
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		23,229	816
Axia Tech \| Affiliated Entity
Related Party Transaction [Line Items]
Net revenue from related party		$ 81	$ 53	$ 27
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)			10.60%
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, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Revenue	$ 108,562	$ 97,483	$ 85,394	$ 84,868	$ 84,053	$ 84,536	$ 77,698	$ 77,221	$ 376,307	$ 323,508	$ 262,571
Operating expenses
Interchange and network fees									242,867	214,543	189,112
Other costs of services									44,237	40,314	28,798
Selling general and administrative									62,860	40,585	27,194
Depreciation and amortization									16,564	11,839	10,085
Change in fair value of contingent consideration									3,389	3,866	(218)
Income from operations	1,869	$ 1,194	$ (203)	$ 3,530	3,495	$ 2,923	$ 2,596	$ 3,347	6,390	12,361	7,600
Processing margin									106,866	83,180	56,759
Assets	349,302				175,142				349,302	175,142	139,991
Goodwill	168,284				83,954				168,284	83,954	58,517
Merchant Services
Segment Reporting Information [Line Items]
Revenue									336,800	302,929	248,005
Operating expenses
Interchange and network fees									236,170	209,695	185,141
Other costs of services									41,309	38,399	27,350
Selling general and administrative									25,150	23,291	13,858
Depreciation and amortization									11,788	9,535	8,029
Change in fair value of contingent consideration									51	1,772	192
Income from operations									22,332	20,237	13,435
Processing margin									76,343	68,811	47,389
Assets	203,326				141,977				203,326	141,977	113,568
Goodwill	108,472				69,666				108,472	69,666	49,173
Residual expense									17,022	13,976	11,875
Proprietary Software and Payments
Segment Reporting Information [Line Items]
Revenue									39,507	20,582	14,582
Operating expenses
Interchange and network fees									6,697	4,848	3,971
Other costs of services									2,928	1,916	1,559
Selling general and administrative									19,184	7,602	7,194
Depreciation and amortization									4,223	2,097	1,938
Change in fair value of contingent consideration									3,338	2,094	(410)
Income from operations									3,137	2,025	330
Processing margin									30,523	14,371	9,423
Assets	112,514				28,339				112,514	28,339	8,901
Goodwill	59,812				14,288				59,812	14,288	9,344
Residual expense									641	553	371
Other
Segment Reporting Information [Line Items]
Revenue									0	(3)	(16)
Operating expenses
Interchange and network fees									0	0	0
Other costs of services									0	(1)	(111)
Selling general and administrative									18,526	9,692	6,142
Depreciation and amortization									553	207	118
Change in fair value of contingent consideration									0	0	0
Income from operations									(19,079)	(9,901)	(6,165)
Processing margin									0	(2)	(53)
Assets	33,462				4,826				33,462	4,826	17,522
Goodwill	$ 0				$ 0				0	0	0
Residual expense									$ 0	$ 0	$ (148)

Non-Controlling Interest (Details) - i3Verticals, LLC - shares	Sep. 30, 2019	Sep. 30, 2018
Noncontrolling Interest [Line Items]
Non-controlling interest, common units (shares)	14,444,115	9,112,042
Non-controlling interest, ownership interest (percent)	52.80%	34.60%

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

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Jun. 25, 2018

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Numerator

Net income

$ 2,673

$ 563

$ (4,961)

$ 902

Less: Net income attributable to non-controlling interests

3,608

1,937

Net income attributable to Class A common stockholders

$ (930)

$ (1,191)

$ (1,102)

$ 178

$ 834

736

$ (564)

$ (6,836)

$ (332)

$ (7,634)

$ (3,045)

$ (6,898)

$ 902

Reallocation of net income assuming conversion of common units

1,464

Net income attributable to Class A common stockholders - diluted

$ 2,200

Denominator

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

10,490,981

^[1]

26,873,878

^[1]

Basic net income per share (in USD per Share)

$ (0.07)

$ (0.12)

$ 0.02

$ 0.09

$ (0.01)

$ (0.29)

^[1]

$ 0.08

^[1]

Diluted net income per share (in USD per share)

$ (0.07)

$ (0.12)

$ 0.02

$ 0.09

$ 0.08

$ (0.01)

$ (0.29)

^[1]

$ 0.08

^[1]

Class A Common Stock

Numerator

Net income

$ 2,673

$ 563

Less: Net income attributable to non-controlling interests

1,937

3,608

Net income attributable to Class A common stockholders

$ 736

$ (3,045)

Denominator

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

8,812,630

10,490,981

Basic net income per share (in USD per Share)

$ 0.08

$ (0.29)

[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							12 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)						299,412		282,801
Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	12,921,637	16,184,026	17,112,164	17,213,806	17,213,806		17,213,806	15,856,855
Out-of-the-money Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	446,000	443,000	30,500	754,750				626,500
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	1,131,760	1,188,987	1,012,916		565,840		377,537	1,009,858

Significant Non-cash Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	$ 0	$ 8,054	$ 0
Equity issued as part of acquisitions' purchase consideration	0	104	275
Acquisition date fair value of contingent consideration in connection with business combinations	13,032	2,084	1,221
Replacement of prior Senior Secured Credit Facility with Senior Secured Credit Facility	100,229	87,525	0
Mezzanine Notes net settled with Mezzanine Warrant exercises	0	14	0
Unsecured notes payable to related and unrelated creditors net settled with Junior Subordinated Notes Warrants	0	2,565	0
Settlement of warrant liability with equity as a result of Mezzanine Warrant exercise	0	9,253	0
Preferred return on Class A Units and Redeemable Class A Units			756
Debt issuance costs financed with proceeds from Senior Secured Credit Facility	1,271	904	0
Redeemable Class A Common Stock
Other Significant Noncash Transactions [Line Items]
Preferred return on Class A Units and Redeemable Class A Units	0	552	701
Class A Common Stock
Other Significant Noncash Transactions [Line Items]
Preferred return on Class A Units and Redeemable Class A Units	0	2,522	2,223
Restricted Stock
Other Significant Noncash Transactions [Line Items]
Equity issued as part of acquisitions' purchase consideration	225	550	0
Junior Subordinated Notes
Other Significant Noncash Transactions [Line Items]
Debt converted to shares issued	$ 0	$ 0	$ 500

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

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Jun. 25, 2018

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Revenue

$ 108,562

$ 97,483

$ 85,394

$ 84,868

$ 84,053

$ 84,536

$ 77,698

$ 77,221

$ 376,307

$ 323,508

$ 262,571

Income from operations

1,869

1,194

(203)

3,530

3,495

2,923

2,596

3,347

6,390

12,361

7,600

(Loss) income before income taxes

(148)

(724)

(1,358)

2,616

2,646

(6,586)

(721)

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

$ (930)

$ (1,191)

$ (1,102)

$ 178

$ 834

$ 736

$ (564)

$ (6,836)

$ (332)

$ (7,634)

$ (3,045)

$ (6,898)

$ 902

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

$ (0.07)

$ (0.12)

$ 0.02

$ 0.09

$ (0.01)

$ (0.29)

^[1]

$ 0.08

^[1]

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

$ (0.07)

$ (0.12)

$ 0.02

$ 0.09

$ 0.08

$ (0.01)

$ (0.29)

^[1]

$ 0.08

^[1]

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

299,412

282,801

Class A Common Stock

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

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

271,881

285,433

277,758

295,405

299,412

279,273

Class B Common Stock

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

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

12,921,637

16,184,026

17,112,164

17,213,806

15,856,855

Stock Options

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

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

1,131,760

1,188,987

1,012,916

565,840

377,537

1,009,858

Restricted Class A Common Units

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

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

271,881

285,433

277,758

299,412

279,273

Out-of-the-money Options

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

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

446,000

443,000

30,500

754,750

626,500

[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.

Label	Element	Value
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts	$ 4,015,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	788,000
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	104,000
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	550,000
Limited Liability Company (LLC) Members' Equity, Unit-based Compensation	us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation	38,000
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	9,017,000
Equity Issued During Period Value Warrants Exercised	iiiv_EquityIssuedDuringPeriodValueWarrantsExercised	12,073,000
Liabilities Under Tax Receivable Agreement and Related Changes to Deferred Tax Assets Associated with Increases in Tax Basis	iiiv_LiabilitiesUnderTaxReceivableAgreementAndRelatedChangesToDeferredTaxAssetsAssociatedWithIncreasesInTaxBasis	144,000
Additional Paid-in Capital [Member]
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs	us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts	4,015,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	788,000
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	92,446,000
Limited Liability Company (LLC) Members' Equity, Unit-based Compensation	us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation	38,000
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	(60,102,000)
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	550,000
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	804,000
Equity Issued During Period Value Warrants Exercised	iiiv_EquityIssuedDuringPeriodValueWarrantsExercised	(145,000)
Liabilities Under Tax Receivable Agreement and Related Changes to Deferred Tax Assets Associated with Increases in Tax Basis	iiiv_LiabilitiesUnderTaxReceivableAgreementAndRelatedChangesToDeferredTaxAssetsAssociatedWithIncreasesInTaxBasis	144,000
Noncontrolling Interest [Member]
Noncontrolling Interest, Increase from Sale of Parent Equity Interest	us-gaap_NoncontrollingInterestIncreaseFromSaleOfParentEquityInterest	60,102,000
Net Income (Loss) Attributable to Noncontrolling Interest	us-gaap_NetIncomeLossAttributableToNoncontrollingInterest	(1,937,000)
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	15,493,000
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	(7,634,000)
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	43,726,000
Net Income (Loss) Attributable to Parent	us-gaap_NetIncomeLoss	736,000
Common Stock [Member]
Stock Issued During Period, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	104,000
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	(13,562,000)
Equity Issued During Period Value Warrants Exercised	iiiv_EquityIssuedDuringPeriodValueWarrantsExercised	12,218,000
Redeemable Class A Common [Member]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	552,000
Redeemable Class A Common [Member] \| Retained Earnings [Member]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	552,000
Common Class B [Member] \| Common Stock [Member]
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	$ 2,000
Stock Repurchased and Retired During Period, Shares	us-gaap_StockRepurchasedAndRetiredDuringPeriodShares	383,417
Stock Issued During Period Shares Reorganization Transactions	iiiv_StockIssuedDuringPeriodSharesReorganizationTransactions	17,597,223
Common Class A [Member]
Increase (Decrease) in Stockholders Equity due to Reorganization Transactions	iiiv_IncreaseDecreaseInStockholdersEquityDueToReorganizationTransactions	$ (37,446,000)
Common Class A [Member] \| Retained Earnings [Member]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	2,522,000
Common Class A [Member] \| Common Stock [Member]
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Declared	us-gaap_DistributionMadeToLimitedLiabilityCompanyLLCMemberCashDistributionsDeclared	$ (2,522,000)
Stock Issued During Period, Shares, Share-based Compensation, Forfeited	us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationForfeited	7,701
Stock Issued During Period, Shares, New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	27,840
Stock Issued During Period, Value, Conversion of Convertible Securities	us-gaap_StockIssuedDuringPeriodValueConversionOfConvertibleSecurities	$ 0
Stock Issued During Period Shares Reorganization Transactions	iiiv_StockIssuedDuringPeriodSharesReorganizationTransactions	824,861
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] \| Additional Paid-in Capital [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 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, Value, New Issues	us-gaap_StockIssuedDuringPeriodValueNewIssues	$ 1,000
Stock Issued During Period, Shares, New Issues	us-gaap_StockIssuedDuringPeriodSharesNewIssues	7,647,500