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ACQUISITIONS | 6 Months Ended
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Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
ACQUISITIONS | ACQUISITIONS During the six months ended March 31, 2026 and the year ended September 30, 2025, the Company acquired the following businesses: Business Combinations during the six months ended March 31, 2026 Purchase of Transportation Market Business On January 1, 2026, the Company completed the acquisition of a business that operates in the transportation market at the state level. The acquired business provides driver and motor vehicle insurance verification solutions. Total purchase consideration was $60,000 in cash payable at closing funded by proceeds from the Company's revolving credit facility and cash on hand, plus an additional amount of cash contingent consideration payable following the closing in an amount of up to $20,000, dependent upon the achievement of specified financial performance targets, as defined in the purchase agreement, for performance periods extending through May 2028. The acquisition date estimated fair value of such cash contingent consideration is $7,600. The Company determines the acquisition date fair values of the liabilities for the contingent consideration using a Monte Carlo simulation as well as a discounted cash flow analysis. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. See additional disclosures in Note 12. The goodwill associated with the business acquisition is deductible for tax purposes. The acquired customer relationships intangible asset has an estimated amortization period of eighteen years. The acquired trade name has an amortization period of one year. The acquired capitalized software has an amortization period of seven years. Acquisition-related costs for this acquisition amounted to approximately $142 and were included in selling, general and administrative on the consolidated statement of operations and were expensed as incurred. Summary of the Transportation Market Business The preliminary fair values assigned to certain assets and liabilities assumed, as of the acquisition date, were as follows:
Accounts receivable, net | $ | 1,252 |
Prepaid expenses and other current assets | 85 |
Property and equipment, net | 75 |
Capitalized software, net | 6,600 |
Customer relationships | 26,900 |
Trade name | 210 |
Goodwill | 33,815 |
Total assets acquired | 68,937 |
Accrued expenses and other current liabilities | 1,301 |
Deferred revenue | 36 |
Net assets acquired | $ | 67,600 |
Pro Forma Results of Operations for 2026 Business Combinations The following supplemental pro forma results of operations have been prepared as though each of the acquired businesses in the six months ended March 31, 2026 had occurred on October 1, 2024. Pro forma adjustments were made to reflect the impact of depreciation and amortization, changes to executive compensation and the revised debt load, all in accordance with ASC 805. This supplemental pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisitions been made on these dates, or of results of operations that may occur in the future.
| Six Months Ended March 31,
| 2026 |  | 2025
Revenue | $ | 112,276 |  |  | $ | 109,908 |
Net income from continuing operations | $ | 3,699 |  |  | $ | 4,810 |
Business Combinations during the year ended September 30, 2025 Purchase of Utility Billing Software Company On April 1, 2025, the Company completed the acquisition of substantially all of the assets of a business (the "Utility Billing Software Company") to expand the Company’s public sector utility billing software offerings. Total purchase consideration was $10,260, including $9,000 in cash funded by proceeds from the Company's revolving credit facility, and $1,260 in the acquisition date estimated fair value of contingent cash consideration (the final amount of such contingent cash payment of up to $5,000 is dependent upon achievement of specified financial performance targets, as defined in the purchase agreement). The additional cash consideration of up to $5,000, in the aggregate, is to be paid based upon the achievement of specified financial performance targets, as defined in the purchase agreement, for performance periods extending through September 2027. The Company determines the acquisition date fair values of the liabilities for the contingent consideration using a Monte Carlo simulation as well as a discounted cash flow analysis. In each subsequent reporting period, the Company will reassess its current estimates of performance relative to the targets and adjust the contingent liabilities to their fair values through earnings. See additional disclosures in Note 12. The goodwill associated with the business acquisition is deductible for tax purposes. The acquired customer relationships intangible asset has an estimated amortization period of fifteen years. The acquired trade name has an amortization period of two years. The acquired capitalized software has an amortization period of seven years. Acquisition-related costs for this acquisition amounted to approximately $96 and were included in selling, general and administrative on our consolidated statement of operations and were expensed as incurred. Summary of the Utility Billing Software Company The preliminary fair values assigned to certain assets and liabilities assumed, as of the acquisition date, were as follows:
Accounts receivable | $ | 792 |
Property and equipment | 200 |
Capitalized software | 380 |
Customer relationships | 4,610 |
Trade name | 100 |
Goodwill | 5,129 |
Total assets acquired | 11,211 |
Deferred revenue, current | 951 |
Net assets acquired | $ | 10,260 |
Other Business Combinations during the year ended September 30, 2025 During the year ended September 30, 2025, the Company purchased certain assets of a business to expand the Company’s customer footprint. Total purchase consideration was $2,000 in cash funded from cash on hand. In connection with this purchase, the Company allocated preliminary fair values of approximately $83 to property and equipment, approximately $1,700 to customer relationships, $141 to deferred revenue, $5 to non-compete agreements and the remainder, approximately $352, to goodwill, all of which is deductible for tax purposes. The acquired customer relationships intangible asset has an estimated amortization period of fifteen years. Pro Forma Results of Operations for 2025 Business Combinations The following unaudited supplemental pro forma results of operations have been prepared as though each of the acquired businesses in the year ended September 30, 2025 had occurred on October 1, 2024. Pro forma adjustments were made to reflect the impact of depreciation and amortization, changes to executive compensation and the revised debt load, all in accordance with ASC 805. This supplemental pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisitions been made on these dates, or of results of operations that may occur in the future.
| Six Months Ended March 31,
| 2025
Revenue | $ | 107,793 |
Net income from continuing operations | $ | 5,244 |

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