v3.26.1
Supporting Financial Information
 9 Months Ended
Jun. 30, 2026
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,
20262025
Billed receivables$17,066 $16,394 
Contract assets7,342 22,000 
Accounts receivable$24,408 $38,394 

Other current assets

The following table summarizes other current assets presented on our consolidated balance sheets as follows (in thousands):
June 30,September 30,
20262025
Prepaid licenses and other expenses$2,444 $1,892 
Prepaid insurance and benefits945 1,015 
Other receivables673 1,111 
Other current assets$4,062 $4,018 
Goodwill

There were no changes in goodwill for the nine months ended June 30, 2026. The balance of goodwill was approximately $138.2 million as of June 30, 2026 and September 30, 2025.
Intangible assets

The following table summarizes intangible assets, net presented on our consolidated balance sheets as follows (in thousands):
June 30,September 30,
20262025
Intangible assets
Customer contracts and related customer relationships$113,622 $113,622 
Backlog37,249 37,249 
Trade name12,517 13,034 
Covenants-not-to-compete
157 637 
Total intangible assets163,545 164,542 
Less: accumulated amortization
Customer contracts and related customer relationships(60,914)(52,665)
Backlog(17,505)(14,714)
Trade name(5,243)(4,792)
Covenants-not-to-compete
(65)(506)
Total accumulated amortization(83,727)(72,677)
Intangible assets, net$79,818 $91,865 

Amortization expense was $3.8 million and $4.1 million for the three months ended June 30, 2026 and 2025, respectively, and $12.0 million and $12.3 million for the nine months ended June 30, 2026 and 2025, respectively.


As of June 30, 2026, the estimated amortization expense per fiscal year was as follows (in thousands):
Fiscal year ending:
2026 (remaining)$3,673 
202714,694 
202814,694 
202913,734 
203011,637 
Thereafter21,386 
Total amortization expense$79,818 



The weighted-average remaining amortization period at June 30, 2026 is as follows:
Intangible assetsWeighted-Average Remaining Amortization Period
Customer contracts and related customer relationships5.8 years
Backlog5.7 years
Trade name6.1 years
Covenants-not-to-compete6.0 years
Total
5.8 years
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,
20262025
Furniture and equipment$1,192 $1,177 
Computer equipment and software4,241 4,217 
Leasehold improvements1,567 1,567 
Total equipment and improvements7,000 6,961 
Less: accumulated depreciation
(6,239)(5,687)
Equipment and improvements, net$761 $1,274 

Depreciation expense was $0.2 million and $0.2 million for the three months ended June 30, 2026 and 2025, respectively, and $0.6 million and $0.5 million for the nine months ended June 30, 2026 and 2025, respectively.

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,
20262025
Accounts payable$7,600 $12,299 
Accrued benefits518 1,214 
Accrued bonus and incentive compensation1,023 1,527 
Accrued interest895 474 
Other accrued liabilities362 3,732 
Accounts payable and accrued liabilities$10,398 $19,246 


Accrued payroll

The following table summarizes accrued payroll presented on our consolidated balance sheets as follows (in thousands):
June 30,September 30,
20262025
Accrued leave$3,611 $8,112 
Accrued payroll3,242 3,701 
Accrued payroll taxes306 340 
Accrued severance677 — 
Total accrued payroll
$7,836 $12,153 
Debt obligations

The following table summarizes debt obligations presented on our consolidated balance sheets as follows (in thousands):
June 30,September 30,
20262025
Secured term loan$115,000 $123,500 
Secured revolving line of credit13,749 8,067 
Less: unamortized deferred financing costs(2,435)(3,534)
Net bank debt obligations126,314 128,033 
Less: current portion of debt obligations, net of deferred financing costs (a)(21,372)(8,067)
Long-term portion of debt obligations, net of deferred financing costs$104,942 $119,966 

As of June 30, 2026, we have satisfied quarterly minimum principal payments on our secured term loan until March 31, 2027, and have made a partial payment toward the principal due as of that date.

(a) As of June 30, 2026, the current portion comprises term loan amortization of $9.3 million and the $13.7 million outstanding balance on the secured revolving line of credit, net of $1.7 million of unamortized deferred financing costs.

Interest expense

The following table summarizes interest expense presented on our consolidated statements of operations as follows (in thousands):
Three Months EndedNine Months Ended
June 30,June 30,
2026202520262025
Interest expense (a)
$2,660 $3,127 $8,373 $10,297 
Interest income (b)
(12)(15)(47)(57)
Amortization of deferred financing costs (c)
434 428 1,291 1,309 
Interest expense, net
$3,082 $3,540 $9,617 $11,549 

(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.

Income Taxes

During the three months ended June 30, 2026, the Company recorded a noncash valuation allowance of approximately $10.4 million against its deferred tax assets. The deferred tax assets primarily related to net operating loss carryforwards and interest expense carryforwards, which have an indefinite life, as well as other deductible temporary differences. In assessing the realizability of its deferred tax assets, the Company considered all available positive and negative evidence. Based primarily on cumulative losses in recent periods, the Company concluded that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company recorded a valuation allowance against its deferred tax assets. The valuation allowance was reflected as a component of income tax expense for the three and nine months ended June 30, 2026. The adjustment was noncash and did not result in a current-period cash income tax payment. The valuation allowance will be evaluated quarterly and may be reversed as the Company's conditions change.