Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the sum of the undiscounted future cash flows. If the undiscounted future cash flows do not indicate the carrying amount of the asset is recoverable, an impairment charge is measured as the amount by which the carrying amount of the asset group exceeds its fair value based on discounted cash flow analysis or appraisals.

As a result of the Fulton acquisition, the Company recorded an additional intangible asset for customer relationships of $0.2 million, see Note 3 ‒ Acquisition. 

The intangible assets with their associated accumulated amortization amounts at September 30, 2020 and September 30, 2019 are as follows, in thousands:

	September 30, 2020
	Gross		Accumulated Amortization		Impairment		Net
Intangible assets:
Customer relationships – 10 years	$	8,396	$	(4,021)	$	(3,894)	$	481
Trade name – 10 years	2,122		(1,178)		—		944
Non-compete agreements – 3 years	374		(374)		—		—
Total intangible assets	$	10,892	$	(5,573)	$	(3,894)	$	1,425

	September 30, 2019
	Gross		Accumulated Amortization		Impairment		Net
Intangible assets:
Customer relationships – 10 years	$	8,396	$	(3,548)	$	—	$	4,848
Trade name – 10 years	2,119		(966)		—		1,153
Non-compete agreements – 3 years	374		(372)		—		2
Total intangible assets	$	10,889	$	(4,886)	$	—	$	6,003

As of March 31, 2020, the Company determined that changes in the economy related to the COVID-19 pandemic and the continued losses experienced in the Telco segment may cause the carrying amounts of its intangible assets to exceed their fair values. The Company performed an assessment of its intangible assets and determined that the carrying value of its customer relationships were in fact impaired based on valuation appraisals performed by the Company using a multi-period excess earnings model. Therefore, the Company recorded a $3.9 million impairment charge in the Telco segment as of March 31, 2020. As of September 30, 2020, no further indicators of potential impairment were present. Amortization expense was $0.7 million and $1.1 million for the years ended September 30, 2020 and 2019, respectively.

The estimated aggregate amortization expense for each of the next five fiscal years is as follows, in thousands:

2021	$	319
2022	319
2023	319
2024	195
2025	107
Thereafter	166
Total	$	1,425