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FAIR VALUE MEASUREMENTS
12 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 5         FAIR VALUE MEASUREMENTS

 

The earnout consideration of $70,000 at September 30, 2022 and 2021 represents the fair value of the contingent earnout consideration related to the acquisition of Kablooe, which provides annual contingent earnout payments based on results of operations through August 2025. The current and non-current portions of this liability are shown in the corresponding categories on the consolidated balance sheets in each period presented. The fair value of the earnout liability is measured on a recurring basis at each reporting date using a Black-Scholes valuation model with the following inputs and assumptions, which are categorized within level three of the fair value hierarchy: 

     
  September 30,
  2022   2021
Volatility 40%   40%
Risk-free interest rate 4.1%   0.3%
Expected term in years 0.4 - 2.4   0.5 - 3.4
Dividend yield -   -

 

In Fiscal 2022, there were no changes to the total fair value of this earnout liability. In Fiscal 2021, the Company reduced this liability from $90,000 to $70,000 based on changes in the expected likelihood of Kablooe reaching the specified earnings targets.