Subsequent Events

6 Months Ended

Mar. 31, 2020

14.	Subsequent events

In March 2020, the Company began seeing the impact of the COVID-19 global pandemic on its business. The Company is monitoring the situation closely and making any necessary adjustments in operations to ensure compliance with guidelines issued by the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC) and federal, state or local authorities. Based on the guidance received, the Company has temporarily closed certain departments and locations. In an effort to protect its business and enhance its financial flexibility, the Company has taken actions to reduce costs, including certain executive salary reductions, discretionary expense reductions, limiting capital expenses for non-essential projects and workforce furloughs and/or reduction. Management expects its business will continue to be impacted to some degree, but the significance and the duration of the impact cannot be determined at this time.

Between April 20, 2020 and April 22, 2020, certain subsidiaries of the Company entered into separate promissory notes with Hancock Whitney Bank providing for loans under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), administered by the U.S. Small Business Administration (each, an “SBA Loan” and collectively, the “SBA Loans”). Total amounts received were approximately $14.1 million in the aggregate.

Based on its operating results through April 30, 2020, the Company determined that the impact of COVID-19 was not affecting its performance to the extent expected. While the future impact of COVID-19 remains unknown, initial sales trends suggest the impact will not be as severe as initially believed at this time. Accordingly, the Company elected to return the money received under the CARES Act on May 6, 2020.