Supporting Financial Information

9 Months Ended

Jun. 30, 2025

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,
	2025		2024
Billed receivables	$	25,079	$	25,904
Contract assets	19,837		23,945
Accounts receivable	$	44,916	$	49,849

Other current assets

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

	June 30,		September 30,
	2025		2024
Prepaid licenses and other expenses	$	2,070	$	1,315
Prepaid insurance and benefits	1,318		545
Other receivables	1,089		906
Other current assets	$	4,477	$	2,766

Goodwill

There were no changes in goodwill for the nine months ended June 30, 2025. The balance of goodwill was approximately $138.2 million as of June 30, 2025 and September 30, 2024.

Intangible assets

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

	June 30,		September 30,
	2025		2024
Intangible assets
Customer contracts and related customer relationships	$	113,622	$	113,622
Backlog	37,249		37,249
Trade name	13,034		13,034
Covenants-not-to-compete	637		637
Total intangible assets	164,542		164,542
Less: accumulated amortization
Customer contracts and related customer relationships	(49,823)		(41,297)
Backlog	(13,784)		(10,994)
Trade name	(4,466)		(3,488)
Covenants-not-to-compete	(490)		(442)
Total accumulated amortization	(68,563)		(56,221)
Intangible assets, net	$	95,979	$	108,321

Amortization expense was $4.1 million and $4.1 million for the three months ended June 30, 2025 and 2024, respectively, and $12.3 million and $12.3 million for the nine months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, the estimated amortization expense per fiscal year was as follows (in thousands):

Fiscal year ending:
2025 (remaining)	$	4,112
2026	15,722
2027	14,694
2028	14,694
2029	13,734
Thereafter	33,023
Total amortization expense	$	95,979

At June 30, 2025, the weighted-average remaining amortization period in total was 6.7 years. The weighted-average amortization period for customer contracts and related customer relationships, backlog, trade names and covenants-not-to-compete was 6.7 years, 6.6 years, 7.0 years, and 5.3 years, respectively.

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,
	2025		2024
Furniture and equipment	$	1,177	$	1,832
Computer equipment and software	4,190		7,273
Leasehold improvements	1,567		1,614
Total equipment and improvements	6,934		10,719
Less: accumulated depreciation	(5,502)		(8,889)
Equipment and improvements, net	$	1,432	$	1,830

Depreciation expense was $0.2 million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively, and $0.5 million and $0.4 million for the nine months ended June 30, 2025 and 2024, respectively.

During the three months ended June 30, 2025, the Company disposed of $3.9 million of equipment and improvements, primarily within computer equipment and software category. All assets were fully depreciated and no longer in use. No cash proceeds were received as part of the disposal of these assets.

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,
	2025		2024
Accounts payable	$	9,894	$	13,421
Accrued benefits	143		4,519
Accrued workers' compensation insurance	795		1,528
Accrued bonus and incentive compensation	835		3,641
Accrued interest	501		619
Other accrued expenses	1,508		1,562
Accounts payable and accrued liabilities	$	13,676	$	25,290

Accrued payroll

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

	June 30,		September 30,
	2025		2024
Accrued leave	$	8,774	$	8,569
Accrued payroll	5,719		3,070
Accrued payroll taxes	491		981
Accrued severance	38		228
Total accrued payroll	$	15,022	$	12,848

Debt obligations

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

	June 30,		September 30,
	2025		2024
Secured term loan	$	128,250	$	142,500
Secured revolving line of credit	14,039		12,058
Less: unamortized deferred financing costs	(3,941)		(5,184)
Net bank debt obligations	138,348		149,374
Less: current portion of debt obligations, net of deferred financing costs (a)	(14,039)		(12,058)
Long-term portion of debt obligations, net of deferred financing costs	$	124,309	$	137,316

As of June 30, 2025, we have satisfied quarterly minimum principal payments on our secured term loan through June 30, 2026.

(a) As of June 30, 2025, the current portion comprises the $14.0 million outstanding balance on the secured revolving line of credit.

Interest expense

The following table summarizes interest expense presented on our consolidated statements of operations as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Interest expense (a)	$	3,127	$	3,756	$	10,297	$	11,588
Interest income (b)	(15)		(10)		(57)		(34)
Amortization of deferred financing costs (c)	428		397		1,309		1,437
Interest expense	$	3,540	$	4,143	$	11,549	$	12,991

(a) Interest expense on borrowing.

(b) Interest earned from customer payments received after the due date.

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