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Goodwill and Intangible Assets | 9 Months Ended
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Jun. 30, 2025
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | 10. Goodwill and Intangible Assets Goodwill The Company performs a goodwill impairment assessment at least annually but may perform interim assessments if a triggering event occurs that may indicate the fair value of a reporting unit decreased below its carrying value. The net loss experienced in the three and six-month periods ended March 31, 2025, and the negative trend in the Company’s stock price and market capitalization at that time, in management’s view, represented one or more triggering events that indicated the Company’s goodwill may have been impaired. The Company reevaluated its financial forecast for the March 2025 quarterly results and performed an interim impairment assessment of its goodwill using the updated information. The results of the interim assessment indicated the Company’s goodwill assigned to its Professional Services reporting unit was impaired. As a result, the Company reduced its goodwill by $22,000 with a corresponding non-cash impairment charge recognized in its unaudited condensed consolidated statements of operations for the nine-month period ended June 30, 2025. For purposes of performing its interim goodwill impairment assessment as of March 31, 2025, the Company applied generally accepted valuation methods and techniques in order to estimate the fair value of its Professional Services reporting unit and considered discounted cash flows, guideline public company results, guideline transactions, revenues and earnings, recent trends in the Company’s stock price, implied control or acquisition premiums, and other possible factors and their effects on estimated fair value of the Company’s Professional Services reporting unit. Should industry conditions remain consistently negative, or worsen, or if assumptions such as control premiums, terminal growth projections, cost of capital or discount rates or business enterprise value multiples change such conditions could result in a deficit of the fair value of the Company’s Professional Services reporting unit as compared to its remaining carrying value, leading to an impairment in the future. A summary of goodwill balances of the Company’s Professional Services reporting unit is presented as follows:
|  | Goodwill |  |  | Accumulated Impairment |  |  | Carrying Amount |
As of September 30, 2024 |  | $ | 75,510 |  |  | $ | (29,502 | ) |  | $ | 46,008 |
Addition from business acquisition |  |  | 754 |  |  |  | - |  |  |  | 754 |
Impairment adjustment |  |  | - |  |  |  | (22,000 | ) |  |  | (22,000 | )
As of June 30, 2025 |  | $ | 76,264 |  |  | $ | (51,502 | ) |  | $ | 24,762 |
Intangible Assets The following provides a summary of the Company’s separately identifiable intangible assets as of June 30, 2025 and September 30, 2024 and estimated future amortization expense:
|  | June 30, 2025 |  |  | September 30, 2024 |
|  | Cost |  |  | Impairment Charges |  |  | Accumulated Amortization |  |  | Net Book Value |  |  | Cost |  |  | Impairment Charges |  |  | Accumulated Amortization |  |  | Net Book Value |
Customer relationships |  | $ | 27,521 |  |  | $ | (5,153 | ) |  | $ | (21,671 | ) |  | $ | 697 |  |  | $ | 26,957 |  |  | $ | (5,153 | ) |  | $ | (21,147 | ) |  | $ | 657 |
Trade names |  |  | 8,397 |  |  |  | (56 | ) |  |  | (8,224 | ) |  |  | 117 |  |  |  | 8,329 |  |  |  | (56 | ) |  |  | (8,096 | ) |  |  | 177 |
Non-competes |  |  | 4,342 |  |  |  | - |  |  |  | (4,334 | ) |  |  | 8 |  |  |  | 4,331 |  |  |  | - |  |  |  | (4,331 | ) |  |  | - |
Total |  | $ | 40,260 |  |  | $ | (5,209 | ) |  | $ | (34,229 | ) |  | $ | 822 |  |  | $ | 39,617 |  |  | $ | (5,209 | ) |  | $ | (33,574 | ) |  | $ | 834 |
Remainder of Fiscal 2025 |  | $ | 202 |
Fiscal 2026 |  |  | 122 |
Fiscal 2027 |  |  | 79 |
Fiscal 2028 |  |  | 77 |
Fiscal 2029 |  |  | 77 |
Thereafter |  |  | 265 |
|  | $ | 822 |
Intangible assets that represent customer relationships are amortized on the basis of estimated future undiscounted cash flows or using the straight-line basis over estimated remaining useful lives of five to ten years. Trade names are amortized on a straight-line basis over their respective estimated useful lives of between five and ten years. Non-competes are amortized on a straight-line basis over their respective estimated useful lives of between two and five years.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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