Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2018	Feb. 05, 2019
Document and Entity Information
Entity Registrant Name	LIQUIDITY SERVICES INC
Entity Central Index Key	0001235468
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		33,307,303
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 38,513	$ 58,448
Short-term investments	30,000	20,000
Accounts receivable, net of allowance for doubtful accounts of $378 and $337 at December 31, 2018 and September 30, 2018, respectively	6,089	4,870
Inventory	10,504	10,122
Prepaid taxes and tax refund receivable	1,516	1,727
Prepaid expenses and other current assets	6,999	7,816
Total current assets	93,621	102,983
Property and equipment, net	17,274	16,610
Intangible assets, net	7,035	7,366
Goodwill	59,724	59,819
Deferred tax assets	930	930
Other assets	14,272	14,124
Total assets	192,856	201,832
Current liabilities:
Accounts payable	10,369	13,859
Accrued expenses and other current liabilities	20,914	21,373
Distributions payable	1,522	2,128
Deferred revenue	2,776	2,142
Payables to sellers	27,185	28,969
Total current liabilities	62,766	68,471
Deferred taxes and other long-term liabilities	3,591	3,707
Total liabilities	66,357	72,178
Commitments and contingencies (Note 12)	0	0
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; 33,183,178 shares issued and outstanding at December 31, 2018; 32,774,118 shares issued and outstanding at September 30, 2018	33	33
Additional paid-in capital	237,679	236,115
Accumulated other comprehensive loss	(6,876)	(6,449)
Accumulated deficit	(104,337)	(100,045)
Total stockholders’ equity	126,499	129,654
Total liabilities and stockholders’ equity	$ 192,856	$ 201,832

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 378	$ 337
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	33,183,178	32,774,118
Common stock, shares outstanding (in shares)	33,183,178	32,774,118

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Total revenue	$ 54,053	$ 61,143
Costs and expenses from operations:
Cost of goods sold (exclusive of depreciation and amortization)	24,956	27,631
Seller distributions	2,624	3,312
Technology and operations	12,524	18,100
Sales and marketing	8,981	8,310
General and administrative	8,634	7,662
Depreciation and amortization	1,204	1,211
Other operating expenses	205	1,459
Total costs and expenses	59,128	67,685
Loss from operations	(5,075)	(6,542)
Interest and other income, net	(319)	(515)
Loss before provision (benefit) for income taxes	(4,756)	(6,027)
Provision (benefit) for income taxes	266	(4,815)
Net loss	$ (5,022)	$ (1,212)
Basic and diluted loss per common share (in dollars per share)	$ (0.15)	$ (0.04)
Basic and diluted weighted average shares outstanding (in shares)	32,808,144	31,876,603
Revenue
Total revenue	$ 35,735	$ 40,280
Fee revenue
Total revenue	$ 18,318	$ 20,863

Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,022)	$ (1,212)
Other comprehensive loss:
Foreign currency translation	(427)	(51)
Other comprehensive loss, net of taxes	(427)	(51)
Comprehensive loss	$ (5,449)	$ (1,263)

Unaudited Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance (in shares) at Sep. 30, 2017		31,503,349
Balance at Sep. 30, 2017	$ 132,636	$ 29	$ 227,264	$ (6,431)	$ (88,226)
Increase (Decrease) in Stockholders' Equity
Net loss	(1,212)				(1,212)
Exercise of common stock options and vesting of restricted stock (in shares)		386,330
Compensation expense from grants of common stock options and restricted stock	1,262		1,262
Foreign currency translation	(51)
Balance (in shares) at Dec. 31, 2017		31,889,679
Balance at Dec. 31, 2017	132,522	$ 29	228,626	(6,482)	(89,651)
Balance (in shares) at Sep. 30, 2018		32,774,118
Balance at Sep. 30, 2018	129,654	$ 33	236,115	(6,449)	(100,045)
Increase (Decrease) in Stockholders' Equity
Net loss	(5,022)				(5,022)
Exercise of common stock options and vesting of restricted stock (in shares)		409,060
Exercise of common stock options and vesting of restricted stock	8		8
Compensation expense from grants of common stock options and restricted stock	1,556		1,556
Foreign currency translation	(427)			(427)
Balance (in shares) at Dec. 31, 2018		33,183,178
Balance at Dec. 31, 2018	$ 126,499	$ 33	$ 237,679	$ (6,876)	$ (104,337)

Unaudited Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net loss	$ (5,022,000)	$ (1,212,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,204,000	1,211,000
Stock compensation expense	1,513,000	930,000
Provision for inventory allowance	0	1,841,000
Provision for doubtful accounts	81,000	16,000
Deferred tax provision (benefit)	20,000	(5,017,000)
Gain on disposal of property and equipment	(11,000)	0
Change in fair value of financial instruments	0	110,000
Change in fair value of earnout liability	100,000	0
Changes in operating assets and liabilities:
Accounts receivable	(1,298,000)	4,140,000
Inventory	(374,000)	1,842,000
Prepaid and deferred taxes	211,000	(51,000)
Prepaid expenses and other assets	1,401,000	4,714,000
Accounts payable	(3,490,000)	(1,590,000)
Accrued expenses and other current liabilities	(413,000)	(3,662,000)
Distributions payable	(607,000)	(693,000)
Deferred revenue	633,000	0
Payables to sellers	(1,785,000)	995,000
Other liabilities	(239,000)	(78,000)
Net cash (used in) provided by operating activities	(8,076,000)	3,496,000
Investing activities
Increase in intangibles	(5,000)	(18,000)
Purchases of property and equipment, including capitalized software	(1,575,000)	(948,000)
Proceeds from sales of property and equipment	24,000	0
Purchase of short-term investments	(10,000,000)	0
Net cash used in investing activities	(11,556,000)	(966,000)
Financing activities
Proceeds from exercise of common stock options (net of tax)	8,000	0
Net cash provided by financing activities	8,000	0
Effect of exchange rate differences on cash and cash equivalents	(311,000)	(112,000)
Net (decrease) increase in cash and cash equivalents	(19,935,000)	2,418,000
Cash and cash equivalents at beginning of period	58,448,000	94,348,000
Cash and cash equivalents at end of period	38,513,000	96,766,000
Supplemental disclosure of cash flow information
Cash paid for income taxes, net	$ 32,000	$ 251,000

Organization	3 Months Ended
Organization	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Liquidity Services, Inc. (the “Company”) operates a network of ecommerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment. The Company’s marketplaces provide professional buyers access to a global, organized supply of new, surplus, and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on offered assets by providing a liquid marketplace and value-added services that encompass the consultative management, valuation, and sale of surplus assets. The Company's services include program management, valuation, asset management, reconciliation, returns process management, refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer support, compliance and risk mitigation, as well as self-service tools for its sellers. The Company organizes the products on its marketplaces into categories across major industry verticals such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment and specialty equipment. The Company’s marketplaces are: www.liquidation.com, www.govdeals.com, www.networkintl.com, www.secondipity.com, www.go-dove.com, and www.auctiondeals.com. The Company also operates a global search engine for listing used machinery and equipment for sale at www.machinio.com. The Company has five reportable segments, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), GovDeals, Machinio and Corporate & Other. See Note 13 in the Notes to the Consolidated Financial Statements for Segment Information. On July 10, 2018, the Company acquired 100% of Machinio Corp.("Machinio"), a privately-owned company based in Chicago, Illinois, with a second office in Berlin, Germany. Machinio operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. The consideration paid to the sellers was approximately $16.7 million in net cash, equity consideration of approximately $2.0 million, and contingent consideration payable in 2020 in an amount up to $5.0 million. The Company's operations are subject to certain risks and uncertainties, many of which are associated with technology-oriented companies, including, but not limited to, the Company's dependence on use of the Internet, the effect of general business and economic trends, the Company's susceptibility to rapid technological change, actual and potential competition by entities with greater financial and other resources, and the potential for the commercial sellers from which the Company derives a significant portion of its inventory to change the way they conduct their disposition of surplus assets or to otherwise terminate or not renew their contracts with the Company.

Summary of Significant Accounting Policies

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal, recurring adjustments considered necessary for a fair presentation have been included. The information disclosed in the notes to the consolidated financial statements for these periods is unaudited. Operating results for the three months ended December 31, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2019 or for any future period.

In the Consolidated Statements of Operations, revenue from the resale of inventory that the Company purchases from sellers is recognized within “Revenue”. Commission fees from the sale of inventory that the Company sells on a consignment basis and other non-consignment fee revenue, which is made up of subscription fee and service revenue from the Surplus contract in the prior year, is recognized within “Fee Revenue”.

Revenue Recognition

The Company adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606") effective October 1, 2018. As a result of adopting ASC 606, there have been significant changes to the Company's revenue recognition policy from the policy disclosed in Note 2-Summary of Significant Accounting Polices in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018. These changes are described below.

The Company recognizes revenue when or as performance obligations are satisfied and control is transferred to the customer. Revenue will be recognized in the amount that reflects the consideration to which the Company expects to be entitled.

Revenue is also evaluated to determine whether the Company should report the gross proceeds as revenue (when the Company acts as the principal in the arrangement) or the Company should report its revenue on a net basis (when the Company acts as an agent). Specifically, when other parties are involved in providing goods or services to an entity’s customer, the Company must determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself, or to arrange for another party to provide them. The Company evaluates the following factors to determine if it is acting as a principal: (1) whether the Company is primarily responsible for fulfilling the promise to provide the asset or assets; (2) whether the Company has inventory risk of the asset or assets before they are transferred to the Buyer; and (3) whether the Company have discretion in establishing the price for the asset or assets.

The Company enters into contracts with Buyers and Sellers. The Company has master agreements with some Sellers pertaining to the sale of a flow of surplus assets over the term of the master agreement, however; a contract for accounting purposes exists when the Company agrees to sell a specific asset or assets. When acting as a principal (a “principal” arrangement), the Company purchases an asset or assets from a Seller and the Company has a performance obligation to sell the asset or assets to a Buyer. For principal arrangements, the Company recognizes as revenue the gross proceeds from the sale, including buyer's premiums, within Revenue. Also, when acting as a principal, the contract with the Seller is not a contract in the scope of the revenue recognition guidance; rather, it is a purchase of inventory. When the Company is acting as an agent (a “consignment” arrangement), its performance obligation is to arrange for the Seller to sell an asset or assets to the Buyer directly. The Company recognizes revenue within Fee Revenue based on the sales commissions that are paid to the Company by the sellers for utilizing the Company's services; in this situation, sales commissions represent a percentage of the gross proceeds from the sale that the seller pays to the Company upon completion of the transaction.

In both principal and consignment contracts, the Company sometimes provides distinct services to the Seller, such as returns management or refurbishment of assets. These services are distinct because the Seller could benefit from the services separately from the asset sale, and as such they are treated as separate performance obligations. Some services provided to Sellers are not distinct, like providing access to the Company’s ecommerce marketplaces or promoting the asset or assets for sale, because they could not benefit the Seller separately from the sale of the asset or assets.

The consideration received from Buyers and Sellers includes (1) buyer’s premiums, (2) seller’s commissions, and (3) fees for services, including reimbursed expenses. Consideration is variable based on units, final auction prices, or other factors, until the Buyer’s purchase of the asset or assets is complete, or the service has been provided. Recognition of variable consideration that is based on the results of auctions or purchases by Buyers is constrained until those transactions have been finalized. The Company estimates and recognizes amounts related to sales returns, discounts or rebates promised to customers, and reimbursed expenses. The total transaction price is allocated to each distinct performance obligation and revenue is recognized when or as the performance obligation is satisfied. Variable consideration is allocated to individual performance obligations when the variable consideration is related to satisfying that performance obligation and consistent with the allocation objective. The Company's revenue is generally recorded subsequent to receipt of payment authorization, utilizing credit cards, wire transfers and PayPal, an Internet based payment system, as methods of payments. Goods are generally not shipped before payment is received. For certain transactions, payment is due upon invoice and the payment terms vary depending on the business segment.

The Company collects and remits sales taxes on merchandise that it purchases and sells and has elected the practical expedient to report such amounts under the net method in its Consolidated Statements of Operations. The Company also provides shipping and handling services in some arrangements and has elected the practical expedient to treat those activities as a fulfillment cost. If the Company is acting as a principal for the combined obligation, amounts received from customers for shipping are recognized as revenue, and amounts paid for shipping are recognized as costs of goods sold. If the Company is acting as an agent for the combined obligation, shipping revenue and costs will be netted and recognized within costs of goods sold.

The Company’s performance obligations are satisfied when control of the asset is transferred to the Buyer or when the service is completed. The Company determines when control has transferred by evaluating the following five indicators: (1) whether the Company has a present right to payment for the asset or assets; (2) whether the Buyer has legal title to the asset; (3) whether the Buyer has physical possession of the asset or assets; (4) whether the Buyer has the significant risks and rewards of ownership; and (5) whether the Buyer has accepted the asset or assets.

For the Company's Machinio business segment, the performance obligation is satisfied over time as the Company provides the promotional placement services over the term of the subscription. At December 31, 2018, the Machinio business segment had a remaining performance obligation of $2.8 million that the Company expects the majority of this will be recognized as revenue over the next 12 months.

Cost of Goods Sold

Cost of goods sold includes the costs of purchasing and transporting property for auction, credit card transaction fees and shipping and handling costs. The Company purchases the majority of its inventory at a percentage of the vendor's last retail price under certain commercial contracts within its RSCG segment, and at specifically negotiated prices within its CAG segment. Title for the inventory passes to the Company at the time of purchase and the Company bears the risks and rewards of ownership. The Company does not have title to assets sold on behalf of its commercial or government sellers when it receives only sales commission revenue and, as such, recognizes no inventory or the corresponding cost of goods sold from inventory purchases associated with those sales.

Contract assets

Contract assets reflect an estimate of expenses that will be reimbursed upon settlement with Seller. The contract asset balance was $0.7 million as of October 1, 2018 and $0.5 million as of December 31, 2018 and is included in the line item "Prepaid expenses and other current assets" on the consolidated balance sheet.

Contract Costs

Contract costs relate to sales commissions paid on consignment contracts that are capitalized. Contract costs are amortized over the expected life of the customer contract. The contract cost balance was approximately $0.1 million as of October 1, 2018 and $0.2 million as of December 31, 2018 and is included in the line item "Prepaid expenses and other current assets" and "Other assets" on the consolidated balance sheet. Amortization expense was immaterial during the three months ended December 31, 2018.

Promissory Note

On September 30, 2015, the Company sold certain assets related to its Jacobs Trading business to Tanager Acquisitions, LLC (the ‘‘Buyer’’). In connection with the disposition, the Buyer assumed certain liabilities related to the Jacobs Trading business. The Buyer issued a $12.3 million five-year interest bearing promissory note to the Company. Of the $12.3 million, $4.0 million has been repaid as of December 31, 2018. Of the remaining $8.3 million, $6.3 million is recorded on the consolidated balance sheet in Other assets, and $2.0 million in Prepaid expenses and other current assets as of December 31, 2018 based on the scheduled repayment dates.

Risk Associated with Certain Concentrations

The Company does not perform credit evaluations for the majority of its buyers. However, most sales are recorded subsequent to payment authorization being received. As a result, the Company is not subject to significant collection risk, as most goods are not shipped before payment is received.

For consignment sales transactions, funds are typically collected from buyers and are held by the Company on the sellers' behalf. The funds are included in cash in the consolidated financial statements. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business. The amount of cash held on behalf of sellers is recorded within Payables to sellers in the accompanying Consolidated Balance Sheets.

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks over FDIC limits, certificates of deposit, and accounts receivable. The Company deposits its cash with financial institutions that the Company considers to be of high credit quality.

During the three months ended December 31, 2018 and 2017, the Company had one material vendor contract with the Department of Defense (DoD) under which it acquired, managed and sold government property, the Scrap Contract. Revenue from the sale of property acquired under the Scrap Contract accounted for approximately 7.5% and 8.4% of the Company's consolidated revenue for the three months ended December 31, 2018 and 2017, respectively. This contract is included within the Company's CAG segment. See Note 3, Significant Contracts, for information related to the Company's prior significant Surplus contact with the DoD, operations under which were completed in fiscal 2018.

Additionally, the Company has a vendor contract with Amazon.com, Inc. under which the Company acquires and sells commercial merchandise. Transactions under this contract represented approximately 40.5% and 19.4% of cost of goods sold for the three months ended December 31, 2018 and 2017, respectively. This contract is included within the Company's RSCG segment.

Earnings per Share

The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board ("FASB") Topic 260 Earnings Per Share (“ASC 260”). Under ASC 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock units. Diluted net income (loss) per share reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options and unvested restricted stock units. The dilutive effect of unexercised stock options and unvested restricted stock units was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options, and the amount of compensation cost for future service not yet recognized by the Company are assumed to be used to repurchase shares of the Company’s common stock. Stock options and restricted stock units are not included in the computation of diluted net income (loss) per share when they are antidilutive.

For the three months ended December 31, 2018 and 2017, the basic and diluted weighted average common shares were the same because the inclusion of dilutive securities in the computation of diluted net income would have been anti-dilutive.

Recent Accounting Pronouncements

Accounting Standards Adopted

On October 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), including all the related amendments and guidance using the modified retrospective transition method. The Company applied the new revenue standard to all contracts that were not completed as of October 1, 2018 on a modified retrospective basis and recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative period information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The cumulative effect of the changes made to the consolidated October 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands):



	Balance at September 30, 2018			Adjustment due to adoption of ASC 606		Balance as adjusted at October 1, 2018
Prepaid expenses and other current assets	$	7,816		$	671	$	8,487
Other assets	$	14,124		$	59	$	14,183
Retained earnings	$	(100,045	)	$	730	$	(99,315	)

The impact of adopting ASC 606 on the Company’s consolidated statement of income and the consolidated balance sheet for the period ended December 31, 2018 was as follows (in thousands):



	As reported			Balance without adoption of ASC 606			Effect of change Higher/(lower)
Consolidated statement of operations:
Revenue	$	35,735		$	35,881		$	(146	)
Consolidated balance sheet:
Prepaid expenses and other current assets	$	6,999		$	6,442		$	557
Other assets	$	14,272		$	14,118		$	154
Retained earnings	$	(104,337	)	$	(103,626	)	$	(711	)

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. ASU 2017-07 changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the cost of the benefits in the income statement. Under this standard, employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The adoption of ASU 2017-07 on October 1, 2018, using the retrospective method, did not have a material impact on the Company's results of operations. As a result of adopting this standard, $90,000 was reclassified in the prior year financial statements from "General and administrative", a component of loss from operations, on the consolidated statement of operations to "Interest and other income, net", which is included below loss from operations.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805). ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The ASU was adopted on October 1, 2018 and the Company will apply the guidance in ASU 2017-01 on a prospective basis when entering into a business combination.

During 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) ("ASU 2016-15"), Classification of Certain Cash Receipts and Cash Payments and ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash. These ASUs clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows and requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. These standards were adopted on October 1, 2018, with ASU 2016-15 being adopted retrospectively. At adoption of these standards, there was no impact on the Company's consolidated statement of cash flows.

Accounting Standards Not Yet Adopted

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. ASU 2018-02 allows entities to elect to classify from accumulated other comprehensive income (loss) to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act") enacted on December 22, 2017. An entity that does not elect to reclassify the income tax effects of the Tax Act shall disclose in the period of adoption a statement that the election was not made. This guidance will become effective for the Company beginning on October 1, 2019. The Company is currently evaluating whether it will make an election to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350). Under ASU 2017-04 the entity is required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity is required to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity is required to consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This guidance will become effective for the Company beginning on October 1, 2020. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the adoption of the standard is expected to have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 will change the way the Company recognizes its leased assets. ASU 2016-02 will require organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities representing the rights and obligations created by those leases. ASU 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for the Company beginning on October 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into, after the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the new standard and the effect that adoption of the standard is expected to have on the Company's consolidated financial statements and related disclosures.

Significant Contracts	3 Months Ended
Significant Contracts	Dec. 31, 2018
Contractors [Abstract]
Significant Contracts	Significant Contracts Historically, the Company had two material vendor contracts with the DoD, the Scrap Contract and the Surplus Contract. Under the Scrap Contract, the Company is the remarketer of all DoD non-electronic scrap turned into the Defense Logistics Agency (DLA) available for sale within the United States, Puerto Rico, and Guam. The current Scrap Contract was awarded to the Company in April 2016. The Scrap Contract has a 36-month base term that commenced in the first quarter of fiscal year 2017, with two 12-month extension options exercisable by the DLA. The base term of the Scrap Contract will expire on September 30, 2019. The Company pays a revenue-sharing payment to the DLA under this contract equal to 64.5% of the gross resale proceeds of the scrap property, and the Company bears all of the costs for the sorting, merchandising and sale of the property. The contract contains a provision permitting the DLA to terminate the contract for convenience upon written notice to the Company. Revenue from the Scrap Contract accounted for approximately 7.5% and 8.4% of the Company's consolidated revenue for the three months ended December 31, 2018 and 2017, respectively. The Surplus Contract was a competitive-bid contract under which the Company acquired, managed and sold usable DoD surplus personal property turned into the DLA. Surplus property generally consisted of items determined by the DoD to be no longer needed, and not claimed for reuse by any federal agency, such as electronics, industrial equipment, office supplies, scientific and medical equipment, aircraft parts, clothing and textiles. The Surplus Contract required the Company to purchase all usable surplus property offered to the Company by the DoD at 4.35% of the DoD's original acquisition value. On October 11, 2017, the DLA published a Request for Technical Proposal (“RFTP”) and draft Invitation for Bid (IFB) for the sale of surplus, useable non-rolling stock property. The RFTP and IFB related to the DLA’s award of two new term surplus contracts. On December 5, 2017, the DLA determined that the Company was not the high bidder for either of the two contracts. The Company made its final inventory purchase under the Surplus Contract during December 2017, and as of June 30, 2018, had completed its wind-down of operations under the Surplus Contract. Revenue from the Surplus Contract accounted for approximately 26.5% of the Company's consolidated revenue for the three months ended December 31, 2017.

Goodwill

3 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The goodwill of acquired companies is primarily related to the acquisition of an experienced and knowledgeable workforce. The following table presents changes in the carrying amount of goodwill by reportable segment:



Goodwill (in thousands)	CAG			GovDeals		Machinio		Total
Balance at September 30, 2017	$	21,657		$	23,731	$	—	$	45,388
Business acquisition	—			—		14,558		14,558
Translation adjustments	(127		)	—		—		(127		)
Balance at September 30, 2018	$	21,530		$	23,731	$	14,558	$	59,819
Translation adjustments	(95		)	—		—		(95		)
Balance at December 31, 2018	$	21,435		$	23,731	$	14,558	$	59,724

Goodwill is tested for impairment at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. The Company did not identify any indicators of impairment that required performing a step one evaluation during the three months ended December 31, 2018, and December 31, 2017.

Intangible Assets

3 Months Ended

Dec. 31, 2018

Finite-Lived Intangible Assets, Net [Abstract]

Intangible Assets

The components of identifiable intangible assets as of December 31, 2018 and September 30, 2018 are as follows:



		December 31, 2018							September 30, 2018
	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(dollars in thousands)
Contract intangibles	6	$	3,100	$	(258	)	$	2,842	$	3,100	$	(129	)	$	2,971
Brand and technology	5	2,700		(270		)	2,430		2,700		(135		)	2,565
Patent and trademarks	3 - 10	2,301		(538		)	1,763		2,269		(439		)	1,830
Total intangible assets		$	8,101	$	(1,066	)	$	7,035	$	8,069	$	(703	)	$	7,366

Future expected amortization of intangible assets at December 31, 2018 is as follows:



	Future Amortization
Years ending September 30,	(in thousands)
2019 Remaining nine months	$	1,008
2020	1,342
2021	1,331
2022	1,319
2023	1,175
2024 and thereafter	860
Total	$	7,035

Intangible assets amortization expense was approximately $0.34 million and $0.02 million for the three months ended December 31, 2018 and 2017, respectively.

Income Taxes	3 Months Ended
Income Taxes	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Act was signed into law. The Tax Act reduces the corporate tax rate from 35% to 21%. During the three months ending December 31, 2017, the Company revised its estimated annual effective tax rate to reflect this change in the statutory rate. The rate change was administratively effective at the beginning of the Company's 2018 fiscal year, using a blended rate of 24.5%. At September 30, 2018, the Company had not yet completed its accounting for the tax effects of the Tax Act; however, the Company recorded a provisional benefit of $10.7 million in 2018 for the remeasurement of its deferred tax balance and recognition of the realizability of the deferred tax assets. During the three months ended December 31, 2018, the Company completed its accounting for the tax effects of the Tax Act and determined no change to the amount recorded in fiscal year 2018 were required. The international provisions of the Tax Act establish a territorial tax system and subject certain foreign earnings on which U.S. tax is currently deferred to a one-time transition tax. During the three months ended December 31, 2018, the Company completed its analysis of foreign earnings and profits and determined that no one-time transition tax was due. As a result, the Company has not recorded any amount in its financial statements for fiscal year 2018 or the three months ended December 31, 2018 for such transition tax. The Company’s interim effective income tax rate is based on management’s best current estimate of the Company's expected annual effective income tax rate. The Company recorded a pre-tax loss in the first three months of fiscal year 2019 and its corresponding effective tax rate is approximately -5.6%. Tax expense in the current period is due to state and foreign taxes paid. The Company applies the authoritative guidance related to uncertainty in income taxes. ASC Topic 740, Income Taxes, states that a benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of technical merits. The Company records unrecognized tax benefits as a reduction to its deferred tax asset for its net operating loss carryforward. The Company identified no new uncertain tax positions during the three months ended December 31, 2018. The Company’s policy is to recognize interest and penalties in the period in which they occur in the income tax provision. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions and in foreign jurisdictions, primarily Canada and the United Kingdom. As of December 31, 2018, none of the Company's federal or state income tax returns are under examination. The statute of limitations for U.S. federal income tax returns for years prior to fiscal 2015 is now closed. However, certain tax attribute carryforwards that were generated prior to fiscal 2015 may be adjusted upon examination by tax authorities if they are utilized.

Stockholders' Equity

3 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

The changes in stockholders’ equity for the prior year comparable period is as follows (in thousands):



	Common Stock
	Shares	Amount		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Accumulated Deficit			Total
Balance at September 30, 2017	31,503,349	$	29	$	227,264	$	(6,431	)	$	(88,226	)	$	132,636
Cumulative adjustment related to adoption of ASU 2016-09	—	—		100		—			(207		)	(107		)
Net loss	—	—		—		—			(1,212		)	(1,212		)
Exercise of common stock options and vesting of restricted stock	386,330	—		—		—			—			—
Compensation expense and incremental tax benefit from grants of common stock options and restricted stock	—	—		1,262		—			—			1,262
Foreign currency translation	—	—		—		(51		)	(6		)	(57		)
Balance at December 31, 2017	31,889,679	$	29	$	228,626	$	(6,482	)	$	(89,651	)	$	132,522

2006 Omnibus Long-Term Incentive Plan

Under the 2006 Omnibus Long-Term Incentive Plan, as amended (the 2006 Plan), 13,000,000 shares of common stock were available for issuance as of September 30, 2016. On February 23, 2017, at the Company's annual meeting of stockholders, the stockholders approved amendments to the 2006 Plan to increase the number of shares available for issuance under the 2006 Plan by 3,300,000, to a total of 16,300,000 shares. The 2006 Plan has a fungible share pool so that awards other than options or stock appreciation rights granted would be counted as 1.5 shares from the shares reserved for issuance.

The maximum number of shares subject to options or stock appreciation rights that can be awarded under the 2006 Plan to any person is 1,000,000 per year. The maximum number of shares that can be awarded under the 2006 Plan to any person, other than pursuant to an option or stock appreciation right, is 700,000 per year.

The following table presents the number of stock options and shares of restricted stock granted to employees under the Company's 2006 Plan and the grant date fair value of those stock awards for the periods presented:



	Three months ended December 31,
	2018		2017
Stock options:
Time-based	481,150		212,520
Weighted average grant date fair value	$	2.55	$	1.78

Market-based	481,150		318,780
Weighted average grant date fair value	$	2.66	$	1.59

Restricted stock:
Time-based	135,200		31,040
Weighted average grant date fair value	$	5.89	$	4.47

Market-based	75,200		46,560
Weighted average grant date fair value	$	4.39	$	3.11

Stock options and restricted stock generally vest over four years. The fiscal year 2019 market-based options and restricted stock grants will vest in installments based on the total shareholder return of the Company's common stock over a four-year performance period subject to each recipient's continued employment with the Company.

In determining the fair value for stock options, volatility rates over the last three years have ranged from 49.71% to 58.59%, the dividend rate has been 0% and the risk free interest rates have ranged from 0.47% to 2.78%.

Cash-Settled Stock Appreciation Rights

The Company issues cash-settled stock appreciation rights to non executives with restrictions that lapse upon either the passage of time (service vesting), achievement of performance targets (performance vesting), achievement of market conditions (market vesting) or some combination of these conditions. The stock appreciation rights that include only service vesting conditions generally vest over a period of one to four years conditioned on continued employment for the incentive period. For performance vesting, stock appreciation rights generally vest and pay out on the achievement of financial metrics over a four year period conditioned on continued employment for the incentive period. Cash-settled stock appreciation rights are recorded as liability awards.

During the three months ended December 31, 2018, the Company issued 95,000 cash-settled stock appreciation rights at an exercise price of $6.11. During the three months ended December 31, 2018, 49,556 cash-settled stock appreciation rights were exercised and 366,180 cash-settled stock appreciation rights were canceled. As of December 31, 2018, 613,469 cash-settled stock appreciation rights were outstanding. During the comparable period in fiscal year 2018, the Company did not issue any cash-settled stock appreciation rights, 49,482 cash-settled stock appreciation rights were exercised and 94,957 cash-settled stock appreciation rights were forfeited.

Share Repurchase Program

The Company is authorized to repurchase issued and outstanding shares of its common stock under a share repurchase program approved by the Company's Board of Directors. Share repurchases may be made through open market purchases, privately negotiated transactions or otherwise, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The repurchase program may be discontinued or suspended at any time and will be funded using available cash. The Company's Board of Directors reviews the share repurchase program from time to time, the last such review having occurred in May 2016. The Company did not repurchase shares under this program during the three months ended December 31, 2018 or 2017. As of December 31, 2018, the Company may repurchase an additional $10.1 million in shares under this program.

Fair Value Measurement

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurement

The Company measures and records in the accompanying consolidated financial statements certain assets and liabilities at fair value on a recurring basis. Authoritative guidance issued by the FASB establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels:


Level 1	Quoted market prices in active markets for identical assets or liabilities;


Level 2	Inputs other than Level 1 inputs that are either directly or indirectly observable; and


Level 3	Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use.

During the year ended September 30, 2018, as a result of the acquisition of Machinio, the Company recorded contingent consideration which is measured at fair value (Level 3) at December 31, 2018 and September 30, 2018. The Company estimated the fair value of the contingent consideration using a Monte Carlo simulation. The simulation estimated Machino's EBITDA over the earn out period using a market-based volatility factor and market interest rates resulting in an average EBITDA, which then a present value factor was applied based on the expected settlement date of the contingent consideration. The liability for this consideration is included in Deferred taxes and other long-term liabilities in the Consolidated Balance Sheets. At December 31, 2017, the Company had financial assets measured at fair value (Level 3) that represented the value of rights the Company held from its participation in certain principal transactions in the Company's commercial business. The Company no longer held these assets at September 30, 2018.

The Company has investments of $30 million and $20 million at December 31, 2018 and September 30, 2018, respectively, in certificates of deposit with maturities of six months or less, and interest rates between 2.4% and 2.8%. These assets were measured at fair value at December 31, 2018 and September 30, 2018 and were classified as Level 1 assets within the fair value hierarchy.

The changes in the earn-out liability and financial assets measured at fair value using Level 3 inputs to determine fair value for the quarters ended December 31, 2018 and 2017, respectively, are as follows (in thousands):



	Contingent Consideration

Balance at September 30, 2018	$	1,300
Settlements	—
Change in fair value	100
Balance at December 31, 2018	$	1,400



	Financial Instruments

Balance at September 30, 2017	$	491
Settlements	(375		)
Change in fair value	(110		)
Balance at December 31, 2017	$	6

When valuing its Level 3 liability, management’s estimation of fair value is based on the best information available in the circumstances and may incorporate management's own assumptions around market demand which could involve a level of judgment, taking into consideration a combination of internal and external factors. Changes in the fair value of the Company's Level 3 asset and liability are recorded in Other operating expenses in the Consolidated Statements of Operations.

The Company’s financial assets and liabilities not measured at fair value are cash and cash equivalents (which includes cash and commercial paper with original maturities of less than 90 days), accounts receivable, a promissory note and accounts payable. The Company believes the carrying values of these instruments approximate fair value.

At December 31, 2018 the Company did not have any assets or liabilities measured at fair value on a non-recurring basis. At September 30, 2018 the Company had non-financial instruments measured at fair value on a non-recurring basis in connection with the acquisition of Machinio.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Defined Benefit Pension Plan

3 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Defined Benefit Pension Plan

Certain employees of Liquidity Services UK Limited (“GoIndustry”), which the Company acquired in July 2012, are covered by the Henry Butcher Pension Fund and Life Assurance Scheme (the “HB Pension Fund”), a qualified defined benefit pension plan.

The net periodic benefit recognized for the three months ended December 31, 2018 and 2017 included the following components:



	Three Months Ended December 31,
Qualified Defined Benefit Pension Plan	2018			2017
	(dollars in thousands)
Service cost	$	—		$	—
Interest cost	158			166
Expected return on plan assets	(244		)	(252		)
Settlement cost	—			(4		)
Total net periodic (benefit)	$	(86	)	$	(90	)

As a result of the adoption of ASU 2017-07, the components of net periodic benefit other than the services cost component are recorded in Interest and other income, net in the Consolidated Statements of Operations.

Guarantees	3 Months Ended
Guarantees	Dec. 31, 2018
Guarantees [Abstract]
Guarantees	Guarantees During the second quarter of 2015, the Company issued a guarantee to GoIndustry (the "Subsidiary") and the Trustees (the “Trustees”) of the HB Pension Fund. Under the arrangement, the Company irrevocably and unconditionally (a) guarantees to the Trustees punctual performance by the Subsidiary of all its Guaranteed Obligations, defined as all present and future obligations and liabilities (whether actual or contingent and whether owed jointly or severally in any capacity whatsoever) of the Company to make payments to the HB Pension Fund up to a maximum of 10 million British pounds, (b) undertakes with the Trustees that, whenever the Subsidiary does not pay any amount when due in respect of its Guaranteed Obligations, it must immediately on demand by the Trustees pay that amount as if it were the principal obligor; and (c) indemnifies the Trustees as an independent and primary obligation immediately on demand against any cost, charge, expense, loss or liability suffered or incurred by the Trustees if any payment obligation guaranteed by it is or becomes unenforceable, invalid or illegal; the amount of the cost, charge, expense, loss or liability under this indemnity will be equal to the amount the Trustees would otherwise have been entitled to recover on the basis of a guarantee. The guarantee is a continuing guarantee that will extend to the ultimate balance of all sums payable by the Company in respect of its Guaranteed Obligations. As of December 31, 2018 and September 30, 2018, the Company's plan was in an overfund status as the plan's assets exceeded the plan liabilities. The funded status of the HB Pension Fund as of September 30, 2018, was disclosed in Note 13, Defined Benefit Pension Plan, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018.

Business Realignment Expenses

3 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Business Realignment Expenses

During the fourth quarter of fiscal year 2017 the Company began to restructure its CAG business, resulting in severance costs incurred and the closure of several offices and legal entities in Europe and Asia for total restructuring costs of approximately $1.0 million. The Company continued to implement its CAG cost cutting initiatives during the year ended September 30, 2018. As discussed in Note 3, Significant Contracts, the Company was not the high bidder for the new surplus contracts, and completed winding down its operations under the Surplus Contract during the year ended September 30, 2018. As a result, the Company recognized an additional $1.7 million of restructuring costs in fiscal 2018. During the three months ended December 31, 2017 the Company recorded $0.9 million in restructuring costs, $0.5 million of which related to severance and occupancy costs for the Surplus Contract. The remaining restructuring balance at December 31, 2018 of $0.4 million in occupancy related charges is expected to be paid by fiscal 2020.

During fiscal year 2017, the Company reorganized its IronDirect business. As a result, the Company recorded approximately $1.1 million of restructuring charges in the aggregate through the year ended September 30, 2018 related to this restructuring. The Company continued its reorganization of the IronDirect business during the three months ended December 31, 2018 and decided to exit the business, resulting in severance costs recorded of approximately $0.2 million. The Company fully exited the IronDirect business and wound down its operations during January 2019.

In June 2017, the Company entered into an agreement to sub-lease office space at 6931 Arlington Road, Bethesda, Maryland. On the sub-lease commencement date, the Company relocated its headquarters from 1920 L Street NW, Washington DC, to its current Bethesda location and recognized a $2.0 million cease-use charge in its consolidated statements of operations at September 30, 2017. At September 30, 2018, the remaining cease-use accrual was approximately $0.8 million. During the three months ended December 31, 2018, the Company paid down the cease-use charge by approximately $0.6 million. The remaining balance of approximately $0.3 million is expected to be paid during fiscal 2019. This activity is presented under occupancy cost in the table below.

During the three months ended December 31, 2017, the Company recognized $0.5 million in severance cost primarily related to the restructuring of its Corporate Information Technology department. This cost is recorded within the Corporate & Other line item below.

Business realignment expenses were as follows for the periods presented (in thousands):



	Three Months Ended December 31,
	2018		2017

Employee severance and benefit costs:
CAG	$	—	$	751
Corporate & Other	170		474
Total employee severance and benefit costs	170		1,225

Occupancy and other costs:
CAG	46		94
Corporate & Other	134		28
Total occupancy and other costs	180		122
Total business realignment expenses	$	350	$	1,347

Business realignment expenses per the table above are recorded in Other operating expenses in the Consolidated Statements of Operations.

The table below sets forth the significant components of and activity in the liability for business realignment initiatives during the periods presented, on a segment and consolidated basis:



(in thousands)	Liability Balance at September 30, 2017		Business Realignment Expenses			Cash Payments			Liability Balance at September 30, 2018		Business Realignment Expenses		Cash Payments			Liability Balance at December 31, 2018
Employee severance and benefit costs:
CAG	$	793	$	979		$	(1,683	)	$	89	$	—	$	(89	)	$	—
Corporate & Other	399		472			(850		)	21		170		(25		)	$	166
Total employee severance and benefit costs	$	1,192	$	1,451		$	(2,533	)	$	110	$	170	$	(114	)	$	166
Occupancy and other costs:
CAG	—		739			(280		)	459		46		(131		)	$	374
Corporate & Other	1,988		(248		)	(933		)	807		134		(653		)	$	288
Total occupancy and other costs	$	1,988	$	491		$	(1,213	)	$	1,266	$	180	$	(784	)	$	662
Total business realignment	$	3,180	$	1,942		$	(3,746	)	$	1,376	$	350	$	(898	)	$	828

Legal Proceedings	3 Months Ended
Legal Proceedings	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings Howard v. Liquidity Services, Inc., et al., Civ. No. 14-1183 (D. D. C. 2014). On July 14, 2014, Leonard Howard filed a putative class action complaint in the United States District Court for the District of Columbia (the ‘‘District Court’’) against the Company and its chief executive officer, chief financial officer, and chief accounting officer, on behalf of stockholders who purchased the Company's common stock between February 1, 2012, and May 7, 2014. The complaint alleged that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting the Company’s growth initiative, growth potential and financial and operating conditions, thereby artificially inflating its stock price, and sought unspecified compensatory damages and costs and expenses, including attorneys’ and experts’ fees. On October 14, 2014, the Court appointed Caisse de Dépôt et Placement du Québec and the Newport News Employees’ Retirement Fund as co-lead plaintiffs. The plaintiffs filed an amended complaint on December 15, 2014, which alleged substantially similar claims, but which did not name the chief accounting officer as a defendant. On March 2, 2015, the Company moved to dismiss the amended complaint for failure to state a claim or plead fraud with the requisite particularity. On March 31, 2016, the Court granted that motion in part and denied it in part. Only the claims related to the Company's retail supply chain group were not dismissed. On May 16, 2016, the Company answered the amended complaint. Plaintiffs’ class certification was granted on September 6, 2017. On June 19, 2018, the parties agreed to settle this action, including to dismiss and release all claims against all defendants, in exchange for the payment by our insurance carriers of $17 million to plaintiffs and the class. The agreement was submitted to the District Court and preliminarily approved on June 20, 2018. The District Court provided final approval of the settlement on October 5, 2018. In re Liquidity Services, Inc. Derivative Litigation, Civ. No. 2017-0080-JTL (Del. Ch.). On February 2, 2017, plaintiff David Girardi filed a putative derivative complaint in the Court of Chancery of the State of Delaware (the “Court of Chancery”), and on February 7, 2017, plaintiff Harold Slingerland filed a putative derivative complaint in the Court of Chancery. On March 9, 2017, plaintiffs David Girardi and Harold Slingerland filed a putative consolidated derivative complaint in the Court of Chancery, purportedly on the Company’s behalf. The consolidated complaint named as defendants the Company's Chief Executive Officer and Chief Financial Officer, as well as certain other individuals who served on the Company's Board of Directors between 2012 and 2014, and sought recovery from those individuals, not the Company. The complaint asserted that, among other things, the defendants breached their fiduciary duties to the Company and its stockholders by causing or allowing the Company to make the same misstatements that were alleged in the amended complaint in the Howard action, and for alleged trading in the Company’s securities while in possession of material non-public information. The Court of Chancery dismissed the case in November 2017. Following the dismissal of the putative derivative action discussed above, former plaintiffs Girardi and Slingerland sent the Company a letter dated January 5, 2018 (the “Shareholder Demand”) demanding that the Board of Directors take action to remedy purported breaches of fiduciary duties allegedly related to the claims asserted in the above-discussed securities class action and derivative actions. The Company acknowledged receipt of the Shareholder Demand on January 22, 2018. The Company's Board of Directors delegated to a special committee of the Board of Directors, comprised of independent directors who are not named in the letter, the tasks of evaluating and formulating recommendations to the Board of Directors with respect to the Shareholder Demand. The special committee retained counsel and independent economic advisers to assist and advise it in connection with its work. On November 19, 2018, the special committee delivered a report to the Board in which it found no basis to, and recommended that the Board of Directors not, assert claims of breach of fiduciary duty against any of the individuals named in the Shareholder Demand. The Company's Board of Directors met on November 27, 2018 to discuss the findings of the special committee, accepted the recommendation of the special committee and determined to reject the Shareholder Demand. .

Segment Information

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information

The Company provides operating results in five reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), Machinio, and Corporate & Other. The GovDeals, CAG, RSCG and Machinio segments constitute 99.2% of the Company's revenue as of December 31, 2018 and each offers separately branded marketplaces to enable sellers to achieve their respective channel marketing objectives to reach buyers. Across its segments, the Company offers its sellers two primary transaction models, as well as a suite of services, and its revenues vary depending upon the models employed and the level of service required. A description of the reportable segments is provided below:

•

The GovDeals reportable segment provides self-service solutions in which sellers list their own assets, and it consists of marketplaces that enable local and state government entities, including city, county and state agencies, as well as commercial businesses located in the United States and Canada, to sell surplus and salvage assets. GovDeals also offers a suite of services to sellers that includes asset sales and marketing. This segment includes the Company's GovDeals.com and AuctionDeals.com marketplaces.

•

The CAG reportable segment provides full-service solutions to sellers and consists of marketplaces that enable federal government agencies, as well as commercial businesses, to sell surplus, salvage, and scrap assets. This marketplace enables federal government agencies as well as commercial businesses to sell scrap assets of the U.S. Department of Defense. Sales of assets procured through our Surplus Contract, which wound down during 2018, and our Scrap Contract, are conducted through the Government Liquidation marketplace included in this segment. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial sellers are located in the United States, Europe, Australia and Asia. This segment includes the Company's Network International, GoIndustry DoveBid, and Government Liquidation marketplaces.

•

The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and ecommerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces.


•	The Machinio reportable segment operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Machinio was acquired by the Company in July 2018.


•	Corporate & Other primarily consists of the Company's IronDirect operating segment that is not individually significant as well as elimination adjustments. IronDirect offers buyers access to construction equipment, parts and services through a single ecommerce marketplace.

Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker ("CODM"), which is the Company's Chief Executive Officer, with oversight by the Board of Directors. The Company reports segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment gross profit to evaluate the performance of each segment. Segment gross profit is calculated as total revenue less cost of goods sold (exclusive of depreciation and amortization) and seller distributions.

The amount of our revenue that came from sales outside of the United States for the three months ended December 31, 2018 and 2017 was 16.3% and 13.4%, respectively.

The following table sets forth certain financial information for the Company's reportable segments (in thousands):



		Three Months Ended December 31,
		2018		2017
GovDeals:
	Revenue	$	—	$	—
	Fee revenue	$	7,658	$	7,040
	Total revenue	$	7,658	$	7,040
	Gross profit	$	7,061	$	6,543

CAG:
	Revenue	$	9,230	$	21,550
	Fee revenue	$	6,252	$	10,513
	Total revenue	$	15,482	$	32,063
	Gross profit	$	8,883	$	17,603

RSCG:
	Revenue	$	26,070	$	17,177
	Fee revenue	$	3,408	$	3,308
	Total revenue	$	29,478	$	20,485
	Gross profit	$	9,549	$	6,728

Machinio
	Revenue	$	—	$	—
	Fee revenue	$	991	$	—
	Total revenue	$	991	$	—
	Gross Profit	$	878	$	—

Corporate & Other:
	Revenue	$	435	$	1,553
	Fee revenue	$	9	$	2
	Total revenue	$	444	$	1,555
	Gross profit	$	102	$	(675	)

Consolidated:
	Revenue	$	35,735	$	40,280
	Fee revenue	$	18,318	$	20,863
	Total revenue	$	54,053	$	61,143
	Gross profit	$	26,473	$	30,199

The following table presents a reconciliation between gross profit used in reportable segments and the Company's consolidated results (in thousands):



		Three Months Ended December 31,
		2018			2017
Reconciliation:
	Gross profit	$	26,473		$	30,199
	Operating Expenses	31,343			35,282
	Other operating expenses	205			1,459
	Interest and other income, net	(319		)	(515		)
	Provision (benefit) for income taxes	266			(4,815		)
	Net loss	$	(5,022	)	$	(1,212	)

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Unaudited Interim Financial Information

Revenue Recognition

Cost of Goods Sold

Contract assets

Contract Costs

Contract costs relate to sales commissions paid on consignment contracts that are capitalized. Contract costs are amortized over the expected life of the customer contract.

Promissory Note

Risk Associated with Certain Concentrations

Earnings per Share

Recent Accounting Pronouncements

Accounting Standards Adopted

The cumulative effect of the changes made to the consolidated October 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands):



	Balance at September 30, 2018			Adjustment due to adoption of ASC 606		Balance as adjusted at October 1, 2018
Prepaid expenses and other current assets	$	7,816		$	671	$	8,487
Other assets	$	14,124		$	59	$	14,183
Retained earnings	$	(100,045	)	$	730	$	(99,315	)

The impact of adopting ASC 606 on the Company’s consolidated statement of income and the consolidated balance sheet for the period ended December 31, 2018 was as follows (in thousands):



	As reported			Balance without adoption of ASC 606			Effect of change Higher/(lower)
Consolidated statement of operations:
Revenue	$	35,735		$	35,881		$	(146	)
Consolidated balance sheet:
Prepaid expenses and other current assets	$	6,999		$	6,442		$	557
Other assets	$	14,272		$	14,118		$	154
Retained earnings	$	(104,337	)	$	(103,626	)	$	(711	)

Accounting Standards Not Yet Adopted

- Definition

Disclosure of accounting policy for trade and other accounts receivable, and finance, loan and lease receivables, including those classified as held for investment and held for sale. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables.

+ References + Details

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Impact of adoption of ASC 606

The cumulative effect of the changes made to the consolidated October 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands):



	Balance at September 30, 2018			Adjustment due to adoption of ASC 606		Balance as adjusted at October 1, 2018
Prepaid expenses and other current assets	$	7,816		$	671	$	8,487
Other assets	$	14,124		$	59	$	14,183
Retained earnings	$	(100,045	)	$	730	$	(99,315	)

The impact of adopting ASC 606 on the Company’s consolidated statement of income and the consolidated balance sheet for the period ended December 31, 2018 was as follows (in thousands):



	As reported			Balance without adoption of ASC 606			Effect of change Higher/(lower)
Consolidated statement of operations:
Revenue	$	35,735		$	35,881		$	(146	)
Consolidated balance sheet:
Prepaid expenses and other current assets	$	6,999		$	6,442		$	557
Other assets	$	14,272		$	14,118		$	154
Retained earnings	$	(104,337	)	$	(103,626	)	$	(711	)

Goodwill (Tables)

3 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of goodwill activity

The following table presents changes in the carrying amount of goodwill by reportable segment:



Goodwill (in thousands)	CAG			GovDeals		Machinio		Total
Balance at September 30, 2017	$	21,657		$	23,731	$	—	$	45,388
Business acquisition	—			—		14,558		14,558
Translation adjustments	(127		)	—		—		(127		)
Balance at September 30, 2018	$	21,530		$	23,731	$	14,558	$	59,819
Translation adjustments	(95		)	—		—		(95		)
Balance at December 31, 2018	$	21,435		$	23,731	$	14,558	$	59,724

Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2018

Finite-Lived Intangible Assets, Net [Abstract]

Schedule of intangible assets

The components of identifiable intangible assets as of December 31, 2018 and September 30, 2018 are as follows:



		December 31, 2018							September 30, 2018
	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(dollars in thousands)
Contract intangibles	6	$	3,100	$	(258	)	$	2,842	$	3,100	$	(129	)	$	2,971
Brand and technology	5	2,700		(270		)	2,430		2,700		(135		)	2,565
Patent and trademarks	3 - 10	2,301		(538		)	1,763		2,269		(439		)	1,830
Total intangible assets		$	8,101	$	(1,066	)	$	7,035	$	8,069	$	(703	)	$	7,366

Schedule of future expected amortization of intangible assets

Future expected amortization of intangible assets at December 31, 2018 is as follows:



	Future Amortization
Years ending September 30,	(in thousands)
2019 Remaining nine months	$	1,008
2020	1,342
2021	1,331
2022	1,319
2023	1,175
2024 and thereafter	860
Total	$	7,035

Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The changes in stockholders’ equity for the prior year comparable period is as follows (in thousands):



	Common Stock
	Shares	Amount		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Accumulated Deficit			Total
Balance at September 30, 2017	31,503,349	$	29	$	227,264	$	(6,431	)	$	(88,226	)	$	132,636
Cumulative adjustment related to adoption of ASU 2016-09	—	—		100		—			(207		)	(107		)
Net loss	—	—		—		—			(1,212		)	(1,212		)
Exercise of common stock options and vesting of restricted stock	386,330	—		—		—			—			—
Compensation expense and incremental tax benefit from grants of common stock options and restricted stock	—	—		1,262		—			—			1,262
Foreign currency translation	—	—		—		(51		)	(6		)	(57		)
Balance at December 31, 2017	31,889,679	$	29	$	228,626	$	(6,482	)	$	(89,651	)	$	132,522

Summary of stock options and restricted stock granted



	Three months ended December 31,
	2018		2017
Stock options:
Time-based	481,150		212,520
Weighted average grant date fair value	$	2.55	$	1.78

Market-based	481,150		318,780
Weighted average grant date fair value	$	2.66	$	1.59

Restricted stock:
Time-based	135,200		31,040
Weighted average grant date fair value	$	5.89	$	4.47

Market-based	75,200		46,560
Weighted average grant date fair value	$	4.39	$	3.11

Fair Value Measurement (Tables)

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Changes in financial assets fair value



	Contingent Consideration

Balance at September 30, 2018	$	1,300
Settlements	—
Change in fair value	100
Balance at December 31, 2018	$	1,400



	Financial Instruments

Balance at September 30, 2017	$	491
Settlements	(375		)
Change in fair value	(110		)
Balance at December 31, 2017	$	6

Defined Benefit Pension Plan (Tables)

3 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule of net periodic benefit cost recognized

The net periodic benefit recognized for the three months ended December 31, 2018 and 2017 included the following components:



	Three Months Ended December 31,
Qualified Defined Benefit Pension Plan	2018			2017
	(dollars in thousands)
Service cost	$	—		$	—
Interest cost	158			166
Expected return on plan assets	(244		)	(252		)
Settlement cost	—			(4		)
Total net periodic (benefit)	$	(86	)	$	(90	)

Business Realignment Expenses (Tables)

3 Months Ended

Dec. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

Business realignment expenses were as follows for the periods presented (in thousands):



	Three Months Ended December 31,
	2018		2017

Employee severance and benefit costs:
CAG	$	—	$	751
Corporate & Other	170		474
Total employee severance and benefit costs	170		1,225

Occupancy and other costs:
CAG	46		94
Corporate & Other	134		28
Total occupancy and other costs	180		122
Total business realignment expenses	$	350	$	1,347

The table below sets forth the significant components of and activity in the liability for business realignment initiatives during the periods presented, on a segment and consolidated basis:



(in thousands)	Liability Balance at September 30, 2017		Business Realignment Expenses			Cash Payments			Liability Balance at September 30, 2018		Business Realignment Expenses		Cash Payments			Liability Balance at December 31, 2018
Employee severance and benefit costs:
CAG	$	793	$	979		$	(1,683	)	$	89	$	—	$	(89	)	$	—
Corporate & Other	399		472			(850		)	21		170		(25		)	$	166
Total employee severance and benefit costs	$	1,192	$	1,451		$	(2,533	)	$	110	$	170	$	(114	)	$	166
Occupancy and other costs:
CAG	—		739			(280		)	459		46		(131		)	$	374
Corporate & Other	1,988		(248		)	(933		)	807		134		(653		)	$	288
Total occupancy and other costs	$	1,988	$	491		$	(1,213	)	$	1,266	$	180	$	(784	)	$	662
Total business realignment	$	3,180	$	1,942		$	(3,746	)	$	1,376	$	350	$	(898	)	$	828

Segment Information (Tables)

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information by Segment

The following table sets forth certain financial information for the Company's reportable segments (in thousands):



		Three Months Ended December 31,
		2018		2017
GovDeals:
	Revenue	$	—	$	—
	Fee revenue	$	7,658	$	7,040
	Total revenue	$	7,658	$	7,040
	Gross profit	$	7,061	$	6,543

CAG:
	Revenue	$	9,230	$	21,550
	Fee revenue	$	6,252	$	10,513
	Total revenue	$	15,482	$	32,063
	Gross profit	$	8,883	$	17,603

RSCG:
	Revenue	$	26,070	$	17,177
	Fee revenue	$	3,408	$	3,308
	Total revenue	$	29,478	$	20,485
	Gross profit	$	9,549	$	6,728

Machinio
	Revenue	$	—	$	—
	Fee revenue	$	991	$	—
	Total revenue	$	991	$	—
	Gross Profit	$	878	$	—

Corporate & Other:
	Revenue	$	435	$	1,553
	Fee revenue	$	9	$	2
	Total revenue	$	444	$	1,555
	Gross profit	$	102	$	(675	)

Consolidated:
	Revenue	$	35,735	$	40,280
	Fee revenue	$	18,318	$	20,863
	Total revenue	$	54,053	$	61,143
	Gross profit	$	26,473	$	30,199

Reconciliation of Revenue from Segments to Consolidated

The following table presents a reconciliation between gross profit used in reportable segments and the Company's consolidated results (in thousands):



		Three Months Ended December 31,
		2018			2017
Reconciliation:
	Gross profit	$	26,473		$	30,199
	Operating Expenses	31,343			35,282
	Other operating expenses	205			1,459
	Interest and other income, net	(319		)	(515		)
	Provision (benefit) for income taxes	266			(4,815		)
	Net loss	$	(5,022	)	$	(1,212	)

Organization - Narrative (Details) $ in Millions		3 Months Ended
Organization - Narrative (Details) $ in Millions	Jul. 10, 2018 USD ($)	Dec. 31, 2018 reportablesegment
Business Acquisition [Line Items]
Reportable segments (in segments) \| reportablesegment		5
Machinio
Business Acquisition [Line Items]
Percentage of voting interest acquired	100.00%
Cash consideration	$ 16.7
Equity consideration	2.0
Contingent consideration	$ 5.0

Summary of Significant Accounting Policies - Narrative (Details)				3 Months Ended
	Oct. 01, 2018 USD ($)	Oct. 11, 2017 contract	Sep. 30, 2015 USD ($)	Dec. 31, 2018 USD ($) contract	Dec. 31, 2017 USD ($) contract
Business Acquisition [Line Items]
Contract asset	$ 700,000			$ 500,000
Decrease in general and administrative expense from reclassification				(8,634,000)	$ (7,662,000)
Interest and other income, net				$ 319,000	$ 515,000
Surplus Contract
Business Acquisition [Line Items]
Number of contracts \| contract		2
Government Contracts Concentration Risk
Business Acquisition [Line Items]
Number of contracts \| contract				2
Government Contracts Concentration Risk \| Scrap Contract
Business Acquisition [Line Items]
Number of contracts \| contract				1	1
Government Contracts Concentration Risk \| Sales Revenue \| Surplus Contract
Business Acquisition [Line Items]
Concentration risk (as a percentage)					26.50%
Government Contracts Concentration Risk \| Sales Revenue \| Scrap Contract
Business Acquisition [Line Items]
Concentration risk (as a percentage)				7.50%	8.40%
Supplier Concentration Risk \| Cost of Goods \| Contract With Commercial Client
Business Acquisition [Line Items]
Concentration risk (as a percentage)				40.50%	19.40%
Tanager Acquisitions Promissory Note
Business Acquisition [Line Items]
Receivable with imputed interest, face amount			$ 12,300,000.0
Receivable with imputed interest, term			5 years
Proceeds from collection of notes receivable			$ 4,000,000
Receivable with imputed interest, net amount				$ 8,300,000
Tanager Acquisitions Promissory Note \| Other Assets
Business Acquisition [Line Items]
Receivable with imputed interest, net amount				6,300,000
Tanager Acquisitions Promissory Note \| Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Receivable with imputed interest, net amount				2,000,000
Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Contract costs	100,000			$ 200,000
Accounting Standards Update 2017-07
Business Acquisition [Line Items]
Decrease in general and administrative expense from reclassification	90,000
Interest and other income, net	$ 90,000

Summary of Significant Accounting Policies - Performance Obligations (Details) - Machinio - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 $ in Millions	3 Months Ended
	Dec. 31, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 2.8
Remaining performance obligation, period	1 year

Summary of Significant Accounting Policies - ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Oct. 01, 2018	Sep. 30, 2018
Consolidated balance sheet:
Prepaid expenses and other current assets	$ 6,999		$ 8,487	$ 7,816
Other assets	14,272		14,183	14,124
Accumulated deficit	(104,337)		(99,315)	$ (100,045)
Consolidated statement of operations:
Total revenue	54,053	$ 61,143
Balance without adoption of ASC 606
Consolidated balance sheet:
Prepaid expenses and other current assets	6,442
Other assets	14,118
Accumulated deficit	(103,626)
ASC 606 \| Effect of change
Consolidated balance sheet:
Prepaid expenses and other current assets	557		671
Other assets	154		59
Accumulated deficit	(711)		$ 730
Revenue
Consolidated statement of operations:
Total revenue	35,735	$ 40,280
Revenue \| Balance without adoption of ASC 606
Consolidated statement of operations:
Total revenue	35,881
Revenue \| ASC 606 \| Effect of change
Consolidated statement of operations:
Total revenue	$ (146)

Significant Contracts - Narrative (Details)		3 Months Ended
Significant Contracts - Narrative (Details)	Oct. 11, 2017 contract	Dec. 31, 2018 option contract	Dec. 31, 2017 contract	Dec. 31, 2016
Government Contracts Concentration Risk
Significant Contracts
Number of contracts		2
Scrap Contract
Significant Contracts
Term of contract				36 months
Number of extensions \| option		2
Term of each renewal options extended		12 months
Adjusted percentage of profit sharing distribution		64.50%
Scrap Contract \| Government Contracts Concentration Risk
Significant Contracts
Number of contracts		1	1
Scrap Contract \| Government Contracts Concentration Risk \| Sales Revenue
Significant Contracts
Concentration risk (as a percentage)		7.50%	8.40%
Surplus Contract
Significant Contracts
Number of contracts	2
Surplus Contract \| Government Contracts Concentration Risk \| Sales Revenue
Significant Contracts
Concentration risk (as a percentage)			26.50%
Non-rolling stock \| Surplus Contract
Significant Contracts
Usable surplus property to be purchased as a fixed percentage of DoD's original acquisition value		4.35%

Goodwill - Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Goodwill - Adjustments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Goodwill
Balance at the beginning of the period	$ 59,819	$ 45,388
Business acquisition		14,558
Translation adjustments	(95)	(127)
Balance at the end of the period	59,724	59,819
CAG
Goodwill
Balance at the beginning of the period	21,530	21,657
Business acquisition		0
Translation adjustments	(95)	(127)
Balance at the end of the period	21,435	21,530
GovDeals
Goodwill
Balance at the beginning of the period	23,731	23,731
Business acquisition		0
Translation adjustments	0	0
Balance at the end of the period	23,731	23,731
Machinio
Goodwill
Balance at the beginning of the period	14,558	0
Business acquisition		14,558
Balance at the end of the period	$ 14,558	$ 14,558

Intangible Assets - Carrying Amount (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,101	$ 8,069
Accumulated Amortization	(1,066)	(703)
Total	$ 7,035	7,366
Contract intangibles
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	6 years
Gross Carrying Amount	$ 3,100	3,100
Accumulated Amortization	(258)	(129)
Total	$ 2,842	2,971
Brand and technology
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	5 years
Gross Carrying Amount	$ 2,700	2,700
Accumulated Amortization	(270)	(135)
Total	2,430	2,565
Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,301	2,269
Accumulated Amortization	(538)	(439)
Total	$ 1,763	$ 1,830
Minimum \| Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	3 years
Maximum \| Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	10 years

Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Future expected amortization of intangible assets
2019 Remaining nine months	$ 1,008
2020	1,342
2021	1,331
2022	1,319
2023	1,175
2024 and thereafter	860
Total	$ 7,035	$ 7,366

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets, Net [Abstract]
Amortization of intangible assets	$ 340	$ 0

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Blended effective tax rate (as a percentage)	24.50%
Tax benefit relating to adjustment in corporate tax rate		$ 10.7
Expected effective tax rate (as a percent)	(5.60%)

Stockholders' Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Oct. 01, 2018	Oct. 01, 2017
Increase (Decrease) in Stockholders' Equity
Balance	$ 129,654	$ 132,636
Cumulative adjustment related to adoption of ASU 2016-09			$ 730	$ (107)
Net loss	(5,022)	(1,212)
Compensation expense and incremental tax benefit from grants of common stock options and restricted stock	1,556	1,262
Foreign currency translation		(57)
Balance	126,499	132,522
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance	$ 33	$ 29
Balance (in shares)	32,774,118	31,503,349
Exercise of common stock options and vesting of restricted stock (in shares)	409,060	386,330
Balance	$ 33	$ 29
Balance (in shares)	33,183,178	31,889,679
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Balance	$ 236,115	$ 227,264
Cumulative adjustment related to adoption of ASU 2016-09				100
Compensation expense and incremental tax benefit from grants of common stock options and restricted stock	1,556	1,262
Balance	237,679	228,626
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance	(6,449)	(6,431)
Foreign currency translation		(51)
Balance	(6,876)	(6,482)
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Balance	(100,045)	(88,226)
Cumulative adjustment related to adoption of ASU 2016-09			$ 730	$ (207)
Net loss	(5,022)	(1,212)
Foreign currency translation		(6)
Balance	$ (104,337)	$ (89,651)

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		36 Months Ended
	Feb. 23, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Sep. 30, 2016
Stockholders' Equity
Shares available for issuance (in shares)	16,300,000				13,000,000
Increase in shares available for issuance (in shares)	3,300,000
Reserve shares counted per share granted from fungible share pool (in shares)	1.5
Shares repurchased (in shares)		0	0
Amount yet to be expended under the program		$ 10.1		$ 10.1
Options or stock appreciation rights \| Maximum
Stockholders' Equity
Number of shares awarded per person per year (in shares)		1,000,000
Other than options or stock appreciation rights \| Maximum
Stockholders' Equity
Number of shares awarded per person per year (in shares)		700,000
Employee and director options
Stockholders' Equity
Expected volatility, minimum (as a percent)				49.71%
Expected volatility, maximum (as a percent)				58.59%
Dividend yield (as a percent)				0.00%
Risk free interest rate, minimum (as a percent)				0.47%
Risk free interest rate, maximum (as a percent)				2.78%
Employee and director options \| Minimum
Stockholders' Equity
Shares and options vesting period		1 year
Employee and director options \| Maximum
Stockholders' Equity
Shares and options vesting period		4 years
Cash-settled stock appreciation rights
Stockholders' Equity
Shares and options vesting period		4 years
Shares issued (in shares)		95,000
Granted (USD per share)		$ 6.11
Exercised (in shares)		49,556	49,482
Forfeited (in shares)		366,180	94,957
Outstanding (in shares)		613,469		613,469
Employee Stock Option
Stockholders' Equity
Shares and options vesting period		4 years
Employee Stock Option - Market-Based
Stockholders' Equity
Shares and options vesting period		4 years
Restricted Stock
Stockholders' Equity
Shares and options vesting period		4 years

Stockholders' Equity - 2006 Plan Activity (Details) - $ / shares	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Employee Stock Option - Time Based
Stock options:
Options granted (in shares)	481,150	212,520
Options granted (USD per share)	$ 2.55	$ 1.78
Employee Stock Option - Market-Based
Stock options:
Options granted (in shares)	481,150	318,780
Options granted (USD per share)	$ 2.66	$ 1.59
Restricted Stock - Time Based
Restricted stock:
Restricted shares granted (in shares)	135,200	31,040
Granted (USD per share)	$ 5.89	$ 4.47
Restricted Stock - Market Based
Restricted stock:
Restricted shares granted (in shares)	75,200	46,560
Granted (USD per share)	$ 4.39	$ 3.11

Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of deposits	$ 30	$ 20
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	2.40%	2.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	2.80%	2.50%

Fair Value Measurement - (Change in Level 3 Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value	$ 0	$ (110)
Recurring basis \| Level 3 Assets
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance, contingent consideration	1,300
Settlements	0
Change in fair value	100
Ending balance, contingent consideration	$ 1,400
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance, financial instruments		491
Settlements		(375)
Change in fair value		(110)
Ending balance, financial instruments		$ 6

Defined Benefit Pension Plan - Net Periodic Benefit (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0
Interest cost	158	166
Expected return on plan assets	(244)	(252)
Settlement cost	0	(4)
Total net periodic (benefit)	$ (86)	$ (90)

Business Realignment Expenses - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended			12 Months Ended
	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		$ 828,000		$ 3,180,000	$ 1,376,000	$ 3,180,000
Restructuring charges		350,000	$ 1,347,000		1,942,000
District of Columbia \| Other Operating Expense \| Office Building
Restructuring Cost and Reserve [Line Items]
Loss on contract termination		300,000			800,000	2,000,000
Payment on contract loss termination		600,000
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		166,000		1,192,000	110,000	1,192,000
Restructuring charges		170,000	1,225,000		1,451,000
Employee Severance \| Corporate & Other
Restructuring Cost and Reserve [Line Items]
Restructuring costs		500,000
Restructuring reserve		166,000		399,000	21,000	399,000
Restructuring charges		170,000	474,000		472,000
CAG
Restructuring Cost and Reserve [Line Items]
Restructuring costs			900,000	1,000,000	1,700,000
CAG \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		0		$ 793,000	89,000	$ 793,000
Restructuring charges		0	$ 751,000		$ 979,000
CAG \| Employee Severance \| Severance Agreement
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 500,000
CAG \| Occupancy Cost
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		400,000
IronDirect \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 200,000

Business Realignment Expenses - Business Realignment Expenses (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	$ 350,000	$ 1,347,000	$ 1,942,000
Employee severance and benefit costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	170,000	1,225,000	1,451,000
Occupancy and other costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	180,000	122,000	491,000
CAG \| Employee severance and benefit costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	0	751,000	979,000
CAG \| Occupancy and other costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	46,000	94,000	739,000
Corporate & Other \| Employee severance and benefit costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	170,000	474,000	472,000
Corporate & Other \| Occupancy and other costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	$ 134,000	$ 28,000	$ (248,000)

Business Realignment Expenses - Restructuring related costs (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Restructuring Reserve [Roll Forward]
Beginning balance	$ 1,376,000	$ 3,180,000	$ 3,180,000
Business Realignment Expenses	350,000	1,347,000	1,942,000
Cash payments	(898,000)		(3,746,000)
Ending balance	828,000		1,376,000
Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance	110,000	1,192,000	1,192,000
Business Realignment Expenses	170,000	1,225,000	1,451,000
Cash payments	(114,000)		(2,533,000)
Ending balance	166,000		110,000
Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance	1,266,000	1,988,000	1,988,000
Business Realignment Expenses	180,000	122,000	491,000
Cash payments	(784,000)		(1,213,000)
Ending balance	662,000		1,266,000
Corporate & Other \| Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance	21,000	399,000	399,000
Business Realignment Expenses	170,000	474,000	472,000
Cash payments	(25,000)		(850,000)
Ending balance	166,000		21,000
Corporate & Other \| Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance	807,000	1,988,000	1,988,000
Business Realignment Expenses	134,000	28,000	(248,000)
Cash payments	(653,000)		(933,000)
Ending balance	288,000		807,000
CAG \| Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance	89,000	793,000	793,000
Business Realignment Expenses	0	751,000	979,000
Cash payments	(89,000)		(1,683,000)
Ending balance	0		89,000
CAG \| Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance	459,000	0	0
Business Realignment Expenses	46,000	$ 94,000	739,000
Cash payments	(131,000)		(280,000)
Ending balance	$ 374,000		$ 459,000

Segment Information - Narrative (Details) - reportablesegment	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue, Major Customer [Line Items]
Reportable segments (in segments)	5
Segments percentage of revenue (as a percentage)	99.20%
Non-US \| Sales Revenue \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk (as a percentage)	16.30%	13.40%

Segment Information - Reconciliation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 54,053	$ 61,143
Gross profit	26,473	30,199
Operating Expenses	31,343	35,282
Other operating expenses	205	1,459
Interest and other income, net	(319)	(515)
Provision (benefit) for income taxes	266	(4,815)
Net loss	(5,022)	(1,212)
Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	7,658	7,040
Gross profit	7,061	6,543
Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	15,482	32,063
Gross profit	8,883	17,603
Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	29,478	20,485
Gross profit	9,549	6,728
Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue		0
Gross profit		0
Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	444	1,555
Gross profit	102	(675)
Revenue
Segment Reporting Information [Line Items]
Total revenue	35,735	40,280
Revenue \| Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	0	0
Revenue \| Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	9,230	21,550
Revenue \| Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	26,070	17,177
Revenue \| Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	0	0
Revenue \| Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	435	1,553
Fee revenue
Segment Reporting Information [Line Items]
Total revenue	18,318	20,863
Fee revenue \| Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	7,658	7,040
Fee revenue \| Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	6,252	10,513
Fee revenue \| Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	3,408	3,308
Fee revenue \| Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	991	0
Fee revenue \| Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	$ 9	$ 2

Guarantees - Narrative (Details)	Mar. 31, 2015 GBP (£)
Guarantees [Abstract]
Guarantee obligation value, maximum	£ 10,000,000

Legal Proceedings - Narrative (Details) $ in Millions	Jun. 19, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Estimate of possible loss	$ 17