Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets consisted of the following (in thousands):


	September 30,
	2022		2021
Indefinite useful lives:
Goodwill	$	67,767	$	39,379
Licenses	103,972		65,186
Tradename and domain name	13,142		2,238
	184,881		106,803


	Amortization Period
Definite useful lives:
Discounted leases	18 & 6 years	78		86
Non-compete agreements	5 years	55		182
Software	5 years	723		132
Licenses	Lease term	25,962		—
Leases acquired in-place	Lease term	117		—
		26,935		400
Total goodwill and other intangible assets		$	211,816	$	107,203


	2022						2021
	Definite- Lived Intangibles		Indefinite- Lived Intangibles		Goodwill		Definite- Lived Intangibles		Indefinite- Lived Intangibles		Goodwill
Beginning balance	$	400	$	67,424	$	39,379	$	530	$	72,547	$	45,686
Acquisitions	28,653		50,453		28,954		128		173		—
Impairment	—		(293)		(566)		—		(5,296)		(6,307)
Dispositions	—		(470)		—		—		—		—
Amortization	(2,118)		—		—		(258)		—		—
Ending balance	$	26,935	$	117,114	$	67,767	$	400	$	67,424	$	39,379

Definite-lived intangible assets consist of the following (in thousands):


	September 30,
	2022		2021
Licenses	$	27,725	$	—
Software	1,671		1,004
Leases acquired in-place	261		—
Discounted leases	297		297
Non-compete agreements	1,100		1,100
Distribution agreements	317		317
Total definite-lived intangibles	31,371		2,718
Less accumulated amortization	(4,436)		(2,318)
Definite-lived intangibles, net	$	26,935	$	400

As of September 30, 2022 and 2021, the accumulated impairment balance of indefinite-lived intangibles was $11.4 million and $13.7 million, respectively, while the accumulated impairment balance of goodwill was $21.2 million and $20.6 million, respectively. Future amortization expense related to definite-lived intangible assets that are subject to amortization at September 30, 2022 is: 2023 - $2.8 million; 2024 - $2.7 million; 2025 - $2.6 million; 2026 - $2.4 million; 2027 - $2.3 million; and thereafter - $14.2 million.

Indefinite-lived intangible assets consist of SOB licenses and tradenames, which were obtained as part of acquisitions. These licenses are the result of zoning ordinances, thus are valid indefinitely, subject to filing annual renewal applications, which are done at minimal costs to the Company. We considered certain licenses that are associated with leased locations as definite-lived. The discounted cash flow of the income approach method was used in calculating the value of these licenses in a business combination, while the relief-from-royalty method was used in calculating the value of tradenames. During the fiscal year ended September 30, 2022, the Company recognized a $293,000 impairment related to the SOB license of one club and a $566,000 impairment related to goodwill of one reporting unit. During the fiscal year ended September 30, 2021, the Company recognized a $5.3 million impairment related to three clubs’ SOB licenses and a $6.3 million impairment related to the goodwill of seven reporting units (see Note 3). During the fiscal year ended September 30, 2020, the Company recognized a $2.3 million impairment related to two clubs’ SOB licenses and a $7.9 million impairment related to the goodwill of seven reporting units.