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Supporting Financial Information | 3 Months Ended
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Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  | (in thousands)
|  |  | December 31, |  | September 30,
| Ref |  | 2020 |  | 2020
Billed receivables |  |  | $ | 29,309 |  |  | $ | 24,598 |
Contract assets |  |  | 15,576 |  |  | 7,943 |
Total accounts receivable |  |  | 44,885 |  |  | 32,541 |
Less: Allowance for doubtful accounts | (a) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 44,885 |  |  | $ | 32,541 |
Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at either December 31, 2020 or September 30, 2020. Other current assets
|  |  | (in thousands)
|  |  | December 31, |  | September 30,
|  |  | 2020 |  | 2020
Prepaid insurance and benefits |  |  | $ | 431 |  |  | $ | 665 |
Other receivables |  |  | 1,617 |  |  | 1,363 |
Other prepaid expenses |  |  | 1,420 |  |  | 1,471 |
Other current assets |  |  | $ | 3,468 |  |  | $ | 3,499 |
Equipment and improvements, net
|  |  | (in thousands)
|  |  | December 31, |  | September 30,
| Ref |  | 2020 |  | 2020
Furniture and equipment |  |  | $ | 958 |  |  | $ | 958 |
Computer equipment |  |  | 1,212 |  |  | 1,171 |
Computer software |  |  | 4,353 |  |  | 4,341 |
Leasehold improvements |  |  | 1,595 |  |  | 1,595 |
Total equipment and improvements |  |  | 8,118 |  |  | 8,065 |
Less accumulated depreciation and amortization |  |  | (5,142) |  |  | (4,726) |
Equipment and improvements, net | (a) |  | $ | 2,976 |  |  | $ | 3,339 |
Ref (a): Depreciation expense was $0.4 million and $0.7 million for the three months ended December 31, 2020 and 2019, respectively. Intangible assets
|  |  | (in thousands)
|  |  | December 31, |  | September 30,
| Ref |  | 2020 |  | 2020
Intangible assets | (a) |  |  |  |
Customer contracts and related customer relationships |  |  | $ | 62,281 |  |  | $ | 45,600 |
Covenants not to compete |  |  | 522 |  |  | 480 |
Trade name |  |  | 3,051 |  |  | 2,109 |
Acquired intangibles - IBA acquisition | (b) |  | — |  |  | 16,223 |
Total intangible assets |  |  | 65,854 |  |  | 64,412 |
Less accumulated amortization |  |  |  |  |
Customer contracts and related customer relationships |  |  | (12,707) |  |  | (11,150) |
Covenants not to compete |  |  | (225) |  |  | (212) |
Trade name |  |  | (514) |  |  | (438) |
Total accumulated amortization |  |  | (13,446) |  |  | (11,800) |
Intangible assets, net |  |  | $ | 52,408 |  |  | $ | 52,612 |
Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. The total amount of amortization expense was $1.6 million and $1.2 million for the three months ended December 31, 2020 and 2019, respectively. Ref (b): Intangible assets reported at September 30, 2020 from the acquisition of IBA were based on an estimate and subject to revision. As of December 31, 2020, a third party valuation was completed and of the $17.7 million intangible assets acquired from the acquisition of IBA, $16.7 million was allocated to customer contracts and customer relationships, $0.1 million to covenants not to compete, and $0.9 million to trade name.
Estimated amortization expense for future years: |  | (in thousands)
Remaining Fiscal 2021 |  | $ | 4,939 |
Fiscal 2022 |  | 6,585 |
Fiscal 2023 |  | 6,585 |
Fiscal 2024 |  | 6,585 |
Fiscal 2025 |  | 6,585 |
Thereafter |  | 21,129 |
Total amortization expense |  | $ | 52,408 |
Goodwill The changes in the carrying amount of goodwill as of December 31, 2020 are as follows:
|  | (in thousands)
| Ref | Total
Balance at September 30, 2019 |  | $ | 52,758 |
Preliminary increase from IBA acquisition |  | 14,386 |
Balance at September 30, 2020 |  | 67,144 |
Adjustment from IBA acquisition | (a) | (1,694) |
Balance at December 31, 2020 |  | $ | 65,450 |
Ref (a): The adjustment was determined based on third party valuation. Accounts payable, accrued expenses, and other current liabilities
|  |  | (in thousands)
|  |  | December 31, |  | September 30,
|  |  | 2020 |  | 2020
Accounts payable |  |  | $ | 14,195 |  |  | $ | 14,645 |
Accrued benefits |  |  | 2,719 |  |  | 2,833 |
Accrued bonus and incentive compensation |  |  | 591 |  |  | 2,340 |
Accrued workers' compensation insurance |  |  | 6,067 |  |  | 5,529 |
Other accrued expenses |  |  | 3,820 |  |  | 3,231 |
Accounts payable, accrued expenses, and other current liabilities |  |  | $ | 27,392 |  |  | $ | 28,578 |
Debt obligations
|  |  | (in thousands)
|  |  | December 31, |  | September 30,
|  |  | 2020 |  | 2020
Bank revolving line of credit |  |  | $ | 9,150 |  |  | $ | — |
Bank term loan |  |  | 68,250 |  |  | 70,000 |
Less unamortized deferred financing costs |  |  | (2,593) |  |  | (2,729) |
Net bank debt obligations |  |  | 74,807 |  |  | 67,271 |
Less current portion of bank debt obligations, net of deferred financing costs |  |  | (15,884) |  |  | (6,727) |
Long-term portion of bank debt obligations, net of deferred financing costs |  |  | $ | 58,923 |  |  | $ | 60,544 |
Interest expense
|  |  | (in thousands) |  |
|  |  | Three Months Ended |  |
|  |  | December 31, |  |
| Ref |  | 2020 |  | 2019 |  |  |  |
Interest expense | (a) |  | $ | (870) |  |  | $ | (852) |  |  |  |  |
Amortization of deferred financing costs | (b) |  | (210) |  |  | (210) |  |  |  |  |
Other income (expense), net | (c) |  | — |  |  | 121 |  |  |  |  |
Interest expense, net |  |  | $ | (1,080) |  |  | $ | (941) |  |  |  |  |
Ref (a): Interest expense on borrowing Ref (b): Amortization of expenses related to term loan and revolving line of credit Ref (c): Gain on lease modification due to a lease amendment

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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