Supporting Financial Information

12 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Supporting Financial Information

Accounts receivable

		(in thousands)
		September 30,		September 30,
	Ref	2021		2020
Billed receivables		$	26,140	$	24,598
Contract assets		7,307		7,943
Total accounts receivable		33,447		32,541
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	33,447	$	32,541

Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at either September 30, 2021 or September 30, 2020.

Other current assets

	(in thousands)
	September 30,		September 30,
	2021		2020
Prepaid insurance and benefits	$	655	$	665
Other receivables	995		1,363
Prepaid expenses	2,615		1,471
Other current assets	$	4,265	$	3,499

Equipment and improvements, net

		(in thousands)
		September 30,		September 30,
	Ref	2021		2020
Furniture and equipment		$	958	$	958
Computer equipment		1,262		1,171
Computer software		4,353		4,341
Leasehold improvements		1,595		1,595
Total equipment and improvements		8,168		8,065
Less accumulated depreciation and amortization		(6,256)		(4,726)
Equipment and improvements, net	(a)	$	1,912	$	3,339

Ref (a): Depreciation and amortization was $1.5 million and $2.2 million for the years ended September 30, 2021 and 2020, respectively.

Intangible assets, net

		(in thousands)
		September 30,		September 30,
	Ref	2021		2020
Intangible assets
Customer contracts and related customer relationships		$	62,281	$	45,600
Covenants-not-to-compete		522		480
Trade name		3,051		2,109
Acquired intangibles - IBA acquisition		—		16,223
Total intangible assets		65,854		64,412
Less accumulated amortization
Customer contracts and related customer relationships		(17,378)		(11,150)
Covenants-not-to-compete		(264)		(212)
Trade name		(743)		(438)
Total accumulated amortization		(18,385)		(11,800)
Intangible assets, net	(a)	$	47,469	$	52,612

Ref (a): Total amount of amortization expense for the years ended September 30, 2021 and 2020 was $6.6 million and $4.8 million, respectively.

Estimated amortization expense for future years:	(in thousands)
Fiscal 2022	$	6,585
Fiscal 2023	6,585
Fiscal 2024	6,585
Fiscal 2025	6,585
Fiscal 2026	5,851
Thereafter	15,278
Total amortization expense	$	47,469

Goodwill

The changes in the carrying amount of goodwill for the years ended September 30, 2021 and 2020 are as follows:

		(in thousands)
	Ref	Total
Balance at September 30, 2019		$	52,758
Preliminary increase from IBA acquisition		14,386
Balance at September 30, 2020		67,144
Total adjustments from IBA acquisition	(a)	(1,501)
Balance at September 30, 2021		$	65,643

Ref (a): The adjustments were determined based on third party valuations.

Accounts payable, accrued expenses, and other current liabilities

	(in thousands)
	September 30,		September 30,
	2021		2020
Accounts payable	$	16,684	$	14,645
Accrued benefits	2,916		2,833
Accrued bonus and incentive compensation	2,381		2,340
Accrued workers' compensation insurance	7,014		5,529
Other accrued expenses	3,722		3,231
Accounts payable, accrued expenses, and other current liabilities	$	32,717	$	28,578

Debt obligations

	(in thousands)
	September 30,		September 30,
	2021		2020
Bank term loan	$	46,750	$	70,000
Less: unamortized deferred financing costs	(2,114)		(2,729)
Net bank debt obligations	44,636		67,271
Less: current portion of bank debt obligations, net of deferred financing costs	—		(6,727)
Long-term portion of bank debt obligations, net of deferred financing costs	$	44,636	$	60,544

Interest expense

		(in thousands)
		Year Ended
		September 30,
	Ref	2021		2020
Interest expense	(a)	$	(2,992)	$	(2,841)
Amortization of deferred financing costs	(b)	(792)		(721)
Other income (expense), net	(c)	—		121
Interest expense, net		$	(3,784)	$	(3,441)

Ref (a): Interest expense on borrowing

Ref (b): Amortization of expenses related to term loan and revolving line of credit.

Ref (c): Gain on lease modification due to a lease amendment