Goodwill

Changes in the carrying amount of goodwill are as follows:

	As of			As of
	June 30, 2018			September 30, 2017
Balance at beginning of period	$	12,641		$	12,641
Impairment		(4,615	)		-
Balance at end of period	$	8,026		$	12,641

The carrying value of goodwill is

not

amortized, but is tested for impairment annually as of

September 30,

as well as, whenever events or changes in circumstances indicate that the carrying amount of a reporting unit

may

not

be recoverable. The Company early adopted ASU

2017

during the quarter ended

June 30, 2018.

The purpose of an impairment test is to identify any potential impairment by comparing the carrying value of a reporting unit including goodwill to its fair value. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value, however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit. The fair value measurement was calculated at

June 30, 2018

using the Company’s market price which is classified as Level

within the fair value hierarchy under U.S. GAAP.

In performing the interim impairment test at

June 30, 2018,

Management concluded that goodwill was impaired by

$4.6

million. This amount is reflected as a reduction in goodwill of

$4.6

million in the Company’s Condensed Consolidated Balance Sheet as of

June 30, 2018

with the offset as an expense in the Company’s Condensed Consolidated Statement of Operations.