Supporting Financial Information

12 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Supporting Financial Information

Accounts receivable

		(in thousands)
		September 30,		September 30,
	Ref	2020		2019
Billed receivables		$	24,598	$	18,924
Contract assets		7,943		4,302
Total accounts receivable		32,541		23,226
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	32,541	$	23,226

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. 0 No allowance for doubtful accounts was deemed necessary at either September 30, 2020 or September 30, 2019.

Other current assets

	(in thousands)
	September 30,		September 30,
	2020		2019
Prepaid insurance and benefits	$	665	$	495
Other receivables	1,363		301
Prepaid expenses	1,471		1,035
Other current assets	$	3,499	$	1,831

Equipment and improvements, net

		(in thousands)
		September 30,		September 30,
	Ref	2020		2019
Furniture and equipment		$	958	$	1,262
Computer equipment		1,171		1,043
Computer software		4,341		3,985
Leasehold improvements		1,595		1,595
Total equipment and improvements		8,065		7,885
Less accumulated depreciation and amortization		(4,726)		(2,542)
Equipment and improvements, net	(a)	$	3,339	$	5,343

Ref (a): Depreciation and amortization was $2.2 million and $1.2 million for the years ended September 30, 2020 and 2019, respectively.

Intangible assets, net

		(in thousands)
		September 30,		September 30,
	Ref	2020		2019
Intangible assets	(a)
Customer contracts and related customer relationships		$	45,600	$	45,600
Covenants not to compete		480		480
Trade name		2,109		2,109
Acquired intangibles - IBA acquisition	(b)	16,223		—
Total intangible assets		64,412		48,189
Less accumulated amortization
Customer contracts and related customer relationships		(11,150)		(6,590)
Covenants not to compete		(212)		(164)
Trade name		(438)		(227)
Total accumulated amortization		(11,800)		(6,981)
Intangible assets, net		$	52,612	$	41,208

Ref (a): Total amount of amortization expense for the year ended September 30, 2020 and 2019 was $4.8 million and $2.7 million, respectively.

Ref (b): The Company is currently valuing the acquired intangible assets from the IBA acquisition. The balances provided are an estimate and subject to revision. Please refer to Note 16 for more information.

Estimated amortization expense for future years:	(in thousands)
Fiscal 2021	$	6,441
Fiscal 2022	6,441
Fiscal 2023	6,441
Fiscal 2024	6,441
Fiscal 2025	6,441
Thereafter	20,407
Total amortization expense	$	52,612

Goodwill

The changes in the carrying amount of goodwill for the years ended September 30, 2020 and 2019 are as follows:

		(in thousands)
	Ref	Total
Balance at September 30, 2018		$	25,989
Increase from S3 acquisition		26,769
Balance at September 30, 2019		52,758
Preliminary increase from IBA acquisition	(a)	14,386
Balance at September 30, 2020		$	67,144

Ref (a): The Company is currently valuing the goodwill from the IBA acquisition. The balance provided is an estimate and subject to revision. Please refer to Note 16 for more information.

Accounts payable, accrued expenses, and other current liabilities

	(in thousands)
	September 30,		September 30,
	2020		2019
Accounts payable	$	14,645	$	10,054
Accrued benefits	2,833		2,252
Accrued bonus and incentive compensation	2,340		1,951
Accrued workers' compensation insurance	5,529		4,007
Other accrued expenses	3,231		2,369
Accounts payable, accrued expenses, and other current liabilities	$	28,578	$	20,633

Debt Obligations

	(in thousands)
	September 30,		September 30,
	2020		2019
Bank term loan	$	70,000	$	56,000
Less unamortized deferred financing cost	(2,729)		(2,371)
Net bank debt obligation	67,271		53,629
Less current portion of term loan debt obligations	(6,727)		—
Long-term portion of bank debt obligation	$	60,544	$	53,629

Interest expense

		(in thousands)
		Year Ended
		September 30,
	Ref	2020		2019
Interest expense	(a)	$	(2,841)	$	(1,512)
Amortization of deferred financing costs	(b)	(721)		(982)
Other income (expense), net	(c)	121		21
Interest expense, net		$	(3,441)	$	(2,473)

Ref (a): Interest expense on borrowing

Ref (b): Amortization of expenses related to term loan and revolving line of credit. For 2019, amortization included write-off of remaining deferred financing costs related to prior loan agreement that was terminated early.

Ref (c): Gain on lease modification due to a lease amendment