MANDATORILY REDEEMABLE NON-CONTROLLING INTEREST

12 Months Ended

Sep. 30, 2023

MANDATORILY REDEEMABLE NON-CONTROLLING INTEREST

MANDATORILY REDEEMABLE NON-CONTROLLING INTEREST

9. MANDATORILY REDEEMABLE NON-CONTROLLING INTEREST

MRNCI recorded on the Company’s consolidated balance sheets represents the fair value of the non-controlling interest in the Company’s strategic investment in Team Sledd. During April 2023, Team Sledd redeemed certain membership interests from its non-controlling interest, which increased the Company’s ownership interest to approximately 64% as of September 2023. The Company owned approximately 56% of Team Sledd as of September 2022. The Company has elected to present the MRNCI liability at fair value under ASC 825 as it believes this best represents the potential future liability and cash flows. As such, the MRNCI balance at September 2023 represents the fair value of the remaining future membership interest redemptions and other amounts due to noncontrolling interest holders through April 2026. At September 2023, the difference between the contractual amount due under the MRNCI and the fair value was approximately $0.7 million. The following table presents changes in the fair value of the MRNCI since September 2022:

Fair value of MRNCI as of September 2022	$	11,158,555
Redemption of non-controlling interests		(1,812,558)
Distributions to non-controlling interest		(1,162,765)
Change in fair value		1,307,599
Fair value of MRNCI as of September 2023	$	9,490,831
Less current portion at fair value		(1,703,604)
	$	7,787,227