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Fair Value of Financial Instruments | 12 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes observable inputs in active markets when measuring fair value. The three levels of inputs that may be used to measure fair value in order of priority are as follows: Level 1 — Inputs include quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level 2 — Inputs include quoted prices in markets that are less active or inactive or for which all significant inputs are observable, either directly or indirectly. Level 3 — Inputs include unobservable prices and are supported by little or no market activity and are significant to the overall fair value measurement. As of September 30, 2024 and 2023, the fair values of our financial instruments, which include cash and cash equivalents, amounts due from related parties, accounts payable and accrued expenses and reimbursable accounts payable and accrued expenses, were not materially different from their carrying values due to the short term nature of these financial instruments. We estimate the fair value of our fixed rate mortgage note payable, loans held for investment and outstanding principal balances under our UBS Master Repurchase Facility using significant observable inputs (Level 3), including discounted cash flow analyses and prevailing market interest rates. The table below provides information regarding these financial instruments not carried at fair value in our consolidated balance sheet as of September 30, 2024:
|  | As of September 30, 2024 |  | As of September 30, 2023
|  | Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
Loans held for investment |  | $ | 56,221 |  |  | $ | 57,365 |  |  | $ | — |  |  | $ | — |
Secured financing facility |  | 41,109 |  |  | 41,793 |  |  | — |  |  | — |
Mortgage note payable |  | 45,149 |  |  | 46,520 |  |  | — |  |  | — |
On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices. ASC 820, Fair Value Measurements, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities, or Level 1, the lowest priority to unobservable inputs, or Level 3, and significant other observable inputs, or Level 2. A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following tables present our assets and liabilities that have been measured at fair value on a recurring basis:
|  | September 30, 2024
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Due from related parties related to share based payment awards |  | $ | 14,339 |  |  | $ | 14,339 |  |  | $ | — |  |  | $ | — |
Equity method investment in SEVN |  | 23,520 |  |  | 23,520 |  |  | — |  |  | — |
Employer compensation liability related to share based payment awards |  | 14,339 |  |  | 14,339 |  |  | — |  |  | — |
Earnout liability |  | 11,958 |  |  | — |  |  | — |  |  | 11,958 |
|  | September 30, 2023
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Due from related parties related to share based payment awards |  | $ | 10,695 |  |  | $ | 10,695 |  |  | $ | — |  |  | $ | — |
Equity method investment in SEVN |  | 18,651 |  |  | 18,651 |  |  | — |  |  | — |
Employer compensation liability related to share based payment awards |  | 10,695 |  |  | 10,695 |  |  | — |  |  | — |
The following table presents additional information about the valuation techniques and significant unobservable inputs for financial assets and liabilities that are measured at fair value and categorized within Level 3 as of September 30, 2024:
| Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
Earnout liability | $ | 11,958 |  |  | Monte Carlo |  | Capital deployment volatility |  | 15.00%
|  |  |  |  | Discount rate |  | 5.53%
The table below presents a summary of the changes in fair value for our Earnout liability measured on a recurring basis:
|  |  |  | Fiscal Year Ended
|  |  |  | September 30, 2024
Beginning balance |  |  |  | $ | — |
Acquisition of MPC Partnership Holdings LLC |  |  |  | 14,547 |
Changes in fair value for our Earnout liability measured on a recurring basis |  |  |  | (2,589) |
Ending balance |  |  |  | $ | 11,958 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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