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Supporting Financial Information | 9 Months Ended
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Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2021 |  | 2020
Billed receivables |  |  | $ | 30,325 |  |  | $ | 24,598 |
Contract assets |  |  | 6,084 |  |  | 7,943 |
Total accounts receivable |  |  | 36,409 |  |  | 32,541 |
Less: Allowance for doubtful accounts | (a) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 36,409 |  |  | $ | 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 June 30, 2021 or September 30, 2020. Other current assets
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
|  |  | 2021 |  | 2020
Prepaid insurance and benefits |  |  | $ | 891 |  |  | $ | 665 |
Other receivables |  |  | 1,164 |  |  | 1,363 |
Other prepaid expenses |  |  | 1,577 |  |  | 1,471 |
Other current assets |  |  | $ | 3,632 |  |  | $ | 3,499 |
Equipment and improvements, net
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2021 |  | 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 | (a) |  | (5,892) |  |  | (4,726) |
Equipment and improvements, net |  |  | $ | 2,226 |  |  | $ | 3,339 |
Ref (a): Depreciation expense was $0.4 million and $0.5 million for the three months ended June 30, 2021 and 2020, respectively and $1.2 million and $1.7 million for the nine months ended June 30, 2021 and 2020, respectively. Intangible assets
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2021 |  | 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 |  |  | (15,821) |  |  | (11,150) |
Covenants not to compete |  |  | (251) |  |  | (212) |
Trade name |  |  | (667) |  |  | (438) |
Total accumulated amortization |  |  | (16,739) |  |  | (11,800) |
Intangible assets, net |  |  | $ | 49,115 |  |  | $ | 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 June 30, 2021 and 2020, respectively and $4.9 million and $3.6 million for the nine months ended June 30, 2021 and 2020, respectively. Ref (b): Intangible assets reported at September 30, 2020 from the acquisition of IBA were based on an estimate and revised in the first quarter of fiscal 2021. A third party valuation firm valued the acquired intangibles to be the $17.7 million; $16.7 million was attributable to customer contracts and customer relationships, and $0.9 million to trade name, and $0.1 million to covenants not to compete.
Estimated amortization expense for future fiscal years: |  | (in thousands)
2021 (remaining) |  | $ | 1,646 |
2022 |  | 6,585 |
2023 |  | 6,585 |
2024 |  | 6,585 |
2025 |  | 6,585 |
Thereafter |  | 21,129 |
Total amortization expense |  | $ | 49,115 |
Goodwill The changes in the carrying amount of goodwill as of June 30, 2021 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 |
Preliminary adjustment from IBA acquisition | (a) | (1,694) |
Balance at December 31, 2020 |  | 65,450 |
Final adjustment from IBA acquisition | (a) | 193 |
Balance at June 30, 2021 |  | $ | 65,643 |
Ref (a): The adjustments were determined based upon the final valuations performed by the third party valuation. Accounts payable, accrued expenses, and other current liabilities
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
|  |  | 2021 |  | 2020
Accounts payable |  |  | $ | 15,990 |  |  | $ | 14,645 |
Accrued benefits |  |  | 2,711 |  |  | 2,833 |
Accrued bonus and incentive compensation |  |  | 1,786 |  |  | 2,340 |
Accrued workers' compensation insurance |  |  | 6,519 |  |  | 5,529 |
Other accrued expenses |  |  | 5,624 |  |  | 3,231 |
Accounts payable, accrued expenses, and other current liabilities |  |  | $ | 32,630 |  |  | $ | 28,578 |
Debt obligations
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
|  |  | 2021 |  | 2020
Bank term loan |  |  | $ | 53,800 |  |  | $ | 70,000 |
Less: unamortized deferred financing costs |  |  | (2,263) |  |  | (2,729) |
Net bank debt obligations |  |  | 51,537 |  |  | 67,271 |
Less: current portion of bank debt obligations, net of deferred financing costs |  |  | — |  |  | (6,727) |
Long-term portion of bank debt obligations, net of deferred financing costs |  |  | $ | 51,537 |  |  | $ | 60,544 |
Interest expense
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | June 30, |  | June 30,
(in thousands) | Ref |  | 2021 |  | 2020 |  | 2021 |  | 2020
Interest expense | (a) |  | $ | (696) |  |  | $ | (635) |  |  | $ | (2,367) |  |  | $ | (2,229) |
Amortization of deferred financing costs | (b) |  | (197) |  |  | (178) |  |  | (610) |  |  | (551) |
Other income (expense), net | (c) |  | — |  |  | — |  |  | — |  |  | 121 |
Interest expense, net |  |  | $ | (893) |  |  | $ | (813) |  |  | $ | (2,977) |  |  | $ | (2,659) |
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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