Supporting Financial Information

9 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Supporting Financial Information

Accounts receivable

The following table summarizes accounts receivable presented on our consolidated balance sheets as follows (in thousands):

	June 30,		September 30,
	2023		2022
Billed receivables	$	48,582	$	32,814
Contract assets	19,300		7,682
Allowance for doubtful accounts	—		—
Accounts receivable	$	67,882	$	40,496

Other current assets

The following table summarizes other current assets presented on our consolidated balance sheets as follows (in thousands):

	June 30,		September 30,
	2023		2022
Prepaid insurance and benefits	$	1,316	$	737
Prepaid licenses and other expenses	1,694		1,196
Other receivables	1,072		945
Other current assets	$	4,082	$	2,878

Equipment and improvements, net

The following table summarizes equipment and improvements, net presented on our consolidated balance sheets as follows (in thousands):

	June 30,		September 30,
	2023		2022
Furniture and equipment	$	877	$	893
Computer equipment	5,328		2,316
Computer software	1,733		4,407
Leasehold improvements	1,878		1,614
Total equipment and improvements	9,816		9,230
Less: accumulated depreciation and amortization	(8,126)		(7,526)
Equipment and improvements, net	$	1,690	$	1,704

Depreciation and amortization expense was $0.2 million for each of the three months ended June 30, 2023 and 2022. Depreciation and amortization expense was $0.6 million and $0.8 million for the nine months ended June 30, 2023 and 2022, respectively.

Intangible assets

The following table summarizes intangible assets, net presented on our consolidated balance sheets as follows (in thousands):

	June 30,		September 30,
	2023		2022
Intangible assets
Customer contracts and related customer relationships	$	113,622	$	47,044
Covenants not to compete	637		522
Trade name	13,034		3,051
Backlog	37,249		15,237
Total intangible assets	164,542		65,854
Less: accumulated amortization
Customer contracts and related customer relationships	(27,087)		(19,731)
Covenants not to compete	(362)		(316)
Trade name	(1,859)		(1,048)
Backlog	(6,343)		(3,875)
Total accumulated amortization	(35,651)		(24,970)
Intangible assets, net	$	128,891	$	40,884

Amortization expense was $4.1 million and $1.6 million for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $10.7 million and $4.9 million for the nine months ended June 30, 2023 and 2022, respectively.

As of June 30, 2023, the estimated amortization expense per fiscal year as follows (in thousands):

2023 (remaining)	$	4,096
2024	16,386
2025	16,385
2026	15,652
2027	14,624
Thereafter	61,748
Total amortization expense	$	128,891

Goodwill

The change in the carrying amount of goodwill as follows presented on our consolidated balance sheets as follows (in thousands):

Balance at September 30, 2022	$	65,643
Increase from GRSi acquisition (a)	72,658
Balance at June 30, 2023	$	138,301

Ref (a) ; The Company has completed its valuation assessment of the GRSi acquisition. Please refer to Note 4 for more information.

Accounts payable and accrued liabilities

The following table summarizes accounts payable and accrued liabilities presented on our consolidated balance sheets as follows (in thousands):

	June 30,		September 30,
	2023		2022
Accounts payable	$	15,559	$	11,886
Accrued benefits	4,073		3,857
Accrued bonus and incentive compensation	3,147		3,625
Accrued workers' compensation insurance	2,749		4,880
Other accrued expenses	74		2,614
Accounts payable and accrued liabilities	$	25,602	$	26,862

Debt obligations

The following table summarizes debt obligations presented on our consolidated balance sheets as follows (in thousands):

	June 30,		September 30,
	2023		2022
Secured revolving line of credit	$	16,448	$	—
Secured term loan	179,312		22,000
Less: unamortized deferred financing costs	(7,665)		(1,584)
Net bank debt obligations	188,095		20,416
Less: current portion of debt obligations, net of deferred financing costs (a)	(28,716)		—
Long-term portion of debt obligations, net of deferred financing costs	$	159,379	$	20,416

(a) Current portion comprises term loan amortization of $14.3 million and the $16.4 million outstanding balance on the secured revolving line of credit, net of $2.0 million of unamortized deferred financing costs.

Interest expense

The following table summarizes interest expense presented on our consolidated statements of operations for the three and nine months ended June 30, 2023 and 2022 as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Interest expense (a)	$	4,282	$	334	$	9,972	$	1,242
Amortization of deferred financing costs (b)	635		178		1,540		497
Interest expense	$	4,917	$	512	$	11,512	$	1,739

(a) Interest expense on borrowing.

(b) Amortization of expenses related to secured term loan and secured revolving line of credit.