Supporting Financial Information

12 Months Ended

Sep. 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 at September 30, 2023 and 2022 (in thousands):

	2023		2022
Billed receivables	$	38,577	$	32,814
Contract assets	20,542		7,682
Allowance for doubtful accounts	—		—
Accounts receivable	$	59,119	$	40,496

Other current assets

The following table summarizes other current assets presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

	2023		2022
Prepaid licenses and other expenses	$	1,330	$	1,196
Prepaid insurance and benefits	743		737
Other receivables	994		945
Other current assets	$	3,067	$	2,878

Goodwill

The change in the carrying amount of goodwill as follows presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

Balance at September 30, 2022	$	65,643
Increase from GRSi acquisition (a)	72,658
Tax Adjustment GRSI acquisition	(140)
Goodwill	$	138,161

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

Intangible assets, net

The following table summarizes intangible assets, net presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

	2023		2022
Intangible assets
Customer contracts and related customer relationships	$	113,622	$	47,044
Backlog	37,249		15,237
Trade names	13,034		3,051
Covenants-not-to-compete	637		522
Total intangible assets	$	164,542	$	65,854
Less accumulated amortization:
Customer contracts and related customer relationships	(29,929)		(19,731)
Backlog	(7,273)		(3,875)
Trade names	(2,185)		(1,048)
Covenants-not-to-compete	(378)		(316)
Total accumulated amortization	$	(39,765)	$	(24,970)
Intangible assets, net	$	124,777	$	40,884

Total amount of amortization expense for each of the years ended September 30, 2023 and 2022 was $14.8 million and $6.6 million, respectively.

As of September 30, 2023, the estimated annual amortization expense is as follows (in thousands):

For the Fiscal Year Ending September 30,
2024	$	16,456
2025	16,456
2026	15,721
2027	14,694
2028	14,694
Thereafter	46,756
Amortization expense	$	124,777

At September 30, 2023, the weighted-average remaining amortization period in total was 8.3 years. At September 30, 2023, the weighted-average amortization period for customer contracts and related customer relationships, backlog, trade names and covenants-not-to-compete was 8.2 years, 8.3 years, 8.7 years, 6 years, respectively.

Equipment and improvements, net

The following table summarizes equipment and improvements, net presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

	2023		2022
Furniture and equipment	$	1,790	$	893
Computer equipment and software	6,479		6,723
Leasehold improvements	1,614		1,614
Total equipment and improvements	$	9,883	$	9,230
Less: accumulated depreciation and amortization	(8,293)		(7,526)
Equipment and improvements, net	$	1,590	$	1,704

Depreciation and amortization was $0.8 million and $1.1 million for the years ended September 30, 2023 and 2022, respectively.

Accounts payable and accrued liabilities

The following table summarizes accounts payable and accrued liabilities presented on our consolidated balance sheets at September 30, 2023and 2022 (in thousands):

	2023		2022
Accounts payable	$	12,603	$	11,886
Accrued benefits	6,414		3,857
Accrued bonus and incentive compensation	4,719		3,625
Accrued workers' compensation insurance	2,369		4,880
Accrued Interest	1,309		—
Other accrued expenses	2,290		2,614
Accounts payable and accrued liabilities	$	29,704	$	26,862

Accrued payroll

The following table summarizes accrued payroll presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

	2023		2022
Accrued Leave	$	9,621	$	6,345
Accrued payroll	2,487		1,946
Accrued payroll taxes	1,173		411
Accrued severance	513		742
Accrued payroll	$	13,794	$	9,444

Debt obligations

The following table summarizes debt obligations presented on our consolidated balance sheets at September 30, 2023 and 2022 (in thousands):

	2023		2022
Secured revolving line of credit	$	9,546	$	—
Secured term loan	169,813		22,000
Less: unamortized deferred financing costs	(7,024)		(1,584)
Net bank debt obligations	$	172,335	$	20,416
Less: current portion of debt obligations, net of deferred financing costs (a)	(17,188)		—
Long-term portion of debt obligations, net of deferred financing costs	$	155,147	$	20,416

As of September 30, 2023, we have satisfied mandatory principal payments on our secured term loan.

(a) Current portion comprises term loan amortization of $8.3 million and the $9.5 million outstanding balance on the secured revolving line of credit, net of $7.0 million of unamortized deferred financing costs.

Interest expense

The following table summarizes interest expense presented on our consolidated statements of operations for the years ended September 30, 2023 and 2022 (in thousands):

	2023		2022
Interest expense (a)	$	14,153	$	1,574
Interest income (b)	(64)		(23)
Amortization of deferred financing costs (c)	2,182		664
Interest expense	$	16,271	$	2,215

(a): Interest expense on borrowing

(b): Interest income

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