Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.22.1
Goodwill and Intangible Assets
6 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets  
Goodwill And Intangible Assets

6. Goodwill and Intangible Assets

 

Goodwill

 

Goodwill as of March 31, 2022 and September 30, 2021 consisted of the following:

 

 

 

March 31,

2022

 

 

September 30,

2021

 

 

 

 

Goodwill beginning balance

 

$ 63,443

 

 

$ 63,443

 

Impairment charges

 

 

(2,150 )

 

 

-

 

Goodwill ending balance

 

$ 61,293

 

 

$ 63,443

 

 

The Company completed its most recent annual goodwill impairment assessment, as of September 30, 2021, and determined that its goodwill was not impaired. The amount of discount inherent in the Company’s market capitalization reported on the NYSE American exchange when compared with consolidated stockholders’ equity, or net book value, had increased since September 30, 2021; therefore, the Company performed an interim assessment of its goodwill for impairment as of December 31, 2021. The estimated fair values of its Professional Services and Industrial Services reporting units were adjusted based on qualitative and quantitative analysis so that they reconcile more precisely with the Company’s market capitalization as of December 31, 2021, plus an assumed control premium. As a result, the Company recognized a non-cash impairment charge of $2,150 during three-months ended December 31, 2021. The Company reassessed the qualitative and quantitative analysis at March 31, 2022 and determined there was no additional impairment during the three-month period ended March 31, 2022.

 

Intangible Assets

 

The following tables set forth the costs, accumulated amortization and net book value of the Company’s separately identifiable intangible assets as of March 31, 2022 and September 30, 2021 and estimated future amortization expense.

 

 

 

March 31, 2022

 

 

September 30, 2021

 

 

 

Cost

 

 

Accumulated Amortization

 

 

Net Book Value

 

 

Cost

 

 

Accumulated Amortization

 

 

Net Book Value

 

Customer relationships

 

$ 29,070

 

 

$ 17,163

 

 

$ 11,907

 

 

$ 29,070

 

 

$ 15,844

 

 

$ 13,226

 

Trade names

 

 

8,329

 

 

 

7,511

 

 

 

818

 

 

 

8,329

 

 

 

6,801

 

 

 

1,528

 

Total 

 

$ 37,399

 

 

$ 24,674

 

 

$ 12,725

 

 

$ 37,399

 

 

$ 22,645

 

 

$ 14,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Amortization Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remaining Fiscal 2022

 

$ 1,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2023

 

 

2,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2024

 

 

2,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2025

 

 

2,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal 2026

 

 

1,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thereafter

 

 

916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ 12,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The trade names are amortized on a straight-line basis over their respective estimated useful lives of between five and ten years. Intangible assets that represent customer relationships are amortized on the basis of estimated future undiscounted cash flows or using the straight-line basis over estimated remaining useful lives of five to ten years.

 

The amortization expense for intangible assets was $1,015 and $2,029, and $1,015 and $2,059 for three and six-month periods ended March 31, 2022 and 2021, respectively.