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INTANGIBLE ASSETS AND GOODWILL | 9 Months Ended
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Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS AND GOODWILL | NOTE 3 INTANGIBLE ASSETS AND GOODWILL The Company’s intangible assets are all held under the design segment of our business. Amortization expense related to intangible assets was $53,000 and $41,000 for the three months ended June 30, 2021 and 2020, respectively, and $160,000 and $122,000 for the nine months ended June 30, 2021 and 2020, respectively, which is included in general and administrative expenses on the condensed consolidated statements of operations. The Company’s intangible assets consist of the following:
Intangible Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | June 30, 2021 |  |  | September 30, 2020
|  | Trademarks |  |  | Customer Relationships |  |  | Total Intangible Assets |  |  | Trademarks |  |  | Customer Relationships |  |  | Total Intangible Assets
Gross carrying amount |  | $ | 585,000 |  |  | $ | 1,390,000 |  |  | $ | 1,975,000 |  |  | $ | 585,000 |  |  | $ | 1,390,000 |  |  | $1,975,000
Less accumulated amortization |  |  | (115,000 | ) |  |  | (488,000 | ) |  |  | (603,000 | ) |  |  | (86,000 | ) |  |  | (358,000 | ) |  | (444,000)
Net carrying amount |  | $ | 470,000 |  |  | $ | 902,000 |  |  | $ | 1,372,000 |  |  | $ | 499,000 |  |  | $ | 1,032,000 |  |  | $1,531,000
At June 30, 2021, estimated amortization expense for the Company’s intangible assets for each of the next five years and thereafter is as follows:
Estimated amortization expense |  |  |  |
Remainder of Fiscal 2021 |  | $ | 53,000 |
Fiscal 2022 |  |  | 213,000 |
Fiscal 2023 |  |  | 213,000 |
Fiscal 2024 |  |  | 213,000 |
Fiscal 2025 |  |  | 213,000 |
Thereafter |  |  | 467,000 |
Total |  | $ | 1,372,000 |
In March 2020, the Company experienced triggering events that prompted the testing of its goodwill for impairment. Those triggering events included the reduction in fair value of the IPS contingent earnout consideration discussed in Note 4 and revised revenue and operational projections for IPS for the remainder of the 2020 fiscal year and future periods. Based on these factors, the Company concluded that it was more likely than not that the fair value of the IPS reporting unit had declined below its carrying amount. The Company then calculated the fair value of this reporting unit using Level 3 inputs, which is a combination of asset-based, income and market approaches. The estimates and assumptions utilized in the estimated fair value calculation included discount rate, terminal growth rate, selection of peer group companies and control premium applied as well as forecasts of revenue growth rates, gross margins, operating margins and working capital requirements. Any changes in the judgments, estimates or assumptions used could produce significantly different results. The Company concluded the IPS reporting unit’s fair value was below its carrying value by $1,015,000 and an impairment charge was recognized for this amount in March 2020. Based on management’s evaluation, there were no further impairments to goodwill at September 30, 2020 and there were no triggering events leading to an interim impairment analysis at June 30, 2021.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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