Commitments and Contingencies

9 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and ContingenciesOn December 30, 2022, the Company became aware of a cyber security issue involving unauthorized access to the Company's system (the "Cyber Incident"). The Company immediately began an investigation and engaged cyber security experts to assist with the assessment of the incident and to help determine what data was impacted. The Company's investigation uncovered that the threat actor had gained access to certain areas of the Company's systems on or about December 27, 2022. With the assistance of outside cyber security experts, the Company located and closed the unauthorized access to our systems and identified compromised information, and notified those impacted in accordance with state and federal requirements. The

Company undertook a number of other measures to demonstrate our continued support and commitment to data privacy and protection and coordinated with law enforcement.

The Company maintains $3,000 of cybersecurity insurance coverage to limit our exposure to losses such as those related to the Cyber Incident. The Company recorded costs in selling, general and administrative expense associated with the Cyber Incident of $232 and a benefit of $50 to other expense (income) due to reversal of insurance deductible accrual during the three months ended June 30, 2023. The Company recorded costs of $60 to other expense (income), net of $3,000 insurance recovery and $1,209 to selling, general and administrative expense in the nine months ended June 30, 2023, resulting in net IT incident costs of $182 and $1,269 in the three and nine months ended June 30, 2023, respectively. The Company received the $3,000 of insurance proceeds on February 20, 2023. At June 30, 2023, the Company recorded $1,037 related to the Cyber Incident in accounts payable on the consolidated condensed balance sheets.

The Company has incurred, and may continue to incur, certain expenses related to this attack, including expenses associated with additional remediation measures. The Company will accrue these costs as incurred.