XML 26 R17.htm IDEA: XBRL DOCUMENT

Accounts payable and accrued expenses, and Other noncurrent liabilities

6 Months Ended

Mar. 31, 2023

Accounts payable and accrued expenses, and Other noncurrent liabilities

Accounts payable and accrued expenses, and Other noncurrent liabilities

9. Accounts payable and Other noncurrent liabilities

The Company enters into certain multi-year agreements with vendors when also entering into some of the multi-year contracts the Company enters into with customers. See Note 6, “Accounts and Long-Term Receivable” for further information related to the multi-year agreements with customers.

There was not an interest rate stated in the agreements and therefore interest was imputed under ASC 835 Interest as the payments in the exchange represented two elements: principal and interest. The imputed interest rate for the agreements was determined to be 5.0%. The rate was determined primarily based on the rate the Company could obtain by financing from other sources at the date of the transaction.

Interest expense related to these agreements for the three months ended March 31, 2023 and 2022 was $53 thousand and $72 thousand, respectively. Interest expense related to these agreements for the six months ended March 31, 2023 and 2022 was $109 thousand and $146 thousand, respectively.

The amounts owed for these agreements are in Accounts payable and Other noncurrent liabilities because they are owed to vendors rather than banks or financial institutions for borrowings. See Note 10, “Notes Payable and Line of Credit” for amounts due to banks and other financial institutions for borrowings.

Below are details of the agreements with the vendors that contain imputed interest:


	March 31, 2023		September 30, 2022
	(Amounts in thousands)
Current	$	1,758	$	1,758
Less: discount		146		184
Accounts payable and accrued expenses	$	1,612	$	1,574

Noncurrent	$	2,975	$	3,186
Less: discount		69		138
Other noncurrent liabilities	$	2,906	$	3,048

The Company had a total of approximately $7.3 million due (net of interest) to one of these vendors as of March 31, 2023. This is approximately 43% of Accounts payable and other noncurrent liabilities. The Company had a total of approximately $16.1 million due (net of interest) to one of these vendors as of September 30, 2022. This is approximately 63% of Accounts payable and other noncurrent liabilities. It was the same vendor as of March 31, 2023 and September 30, 2022 that only transacts with the U.S. division of the TS segment. The TS segment has many vendors it transacts with and does not have any specific agreement with this vendor that it must purchase certain products from the vendor. Management believes other suppliers could provide similar products on comparable terms.