0000950170-23-037808 | 10-Q | XBRL Viewer

Segment Information (Tables)

9 Months Ended

Jun. 30, 2023

Schedule of segment reporting information, by segment

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


		Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)		2023			2022			2023			2022
GovDeals:
	Purchase revenue	$	—		$	—		$	—		$	—
	Consignment and other fee revenues		17,270			16,587			45,956			45,130
	Total revenue		17,270			16,587			45,956			45,130
	Segment direct profit	$	16,389		$	15,765		$	43,572		$	42,913

RSCG:
	Purchase revenue	$	41,439		$	33,788		$	121,651		$	99,838
	Consignment and other fee revenues		9,532			8,586			29,006			23,045
	Total revenue		50,971			42,374			150,657			122,883
	Segment direct profit	$	17,876		$	15,942		$	50,562		$	46,818

CAG:
	Purchase revenue	$	1,370		$	1,719		$	7,064		$	9,271
	Consignment and other fee revenues		7,615			6,077			20,731			18,725
	Total revenue		8,985			7,796			27,795			27,996
	Segment direct profit	$	7,938		$	6,271		$	23,466		$	21,076

Machinio:
	Purchase revenue	$	—		$	—		$	—		$	—
	Consignment and other fee revenues		3,559			3,124			10,144			8,883
	Total revenue		3,559			3,124			10,144			8,883
	Segment direct profit	$	3,381		$	2,971		$	9,611		$	8,424

Corporate & Other, including elimination adjustments:
	Purchase revenue	$	—		$	—		$	—		$	—
	Consignment and other fee revenues		(16	)		(15	)		(47	)		(44	)
	Total revenue		(16	)		(15	)		(47	)		(44	)
	Segment direct profit	$	(16	)	$	(15	)	$	(47	)	$	(44	)

Consolidated:
	Purchase revenue	$	42,809		$	35,507		$	128,715		$	109,109
	Consignment and other fee revenues		37,961			34,359			105,790			95,739
	Total revenue		80,770			69,866			234,505			204,848
	Total Segment direct profit	$	45,568		$	40,934		$	127,165		$	119,186

Schedule of reconciliation of revenue from segments to consolidated

The following table reconciles segment direct profit used in the reportable segments to the Company's consolidated results:


	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)	2023			2022			2023			2022
Reconciliation:
Total segment direct profit	$	45,568		$	40,934		$	127,165		$	119,186
Other costs and expenses from operations (1)	$	37,315			33,712			108,811			103,008
Fair value adjustment of acquisition earn-outs	$	—			(11,500	)		—			(20,000	)
Interest and other (income) expense, net	$	(777	)		131			(1,609	)		(55	)
Income before provision for income taxes	$	9,030		$	18,591		$	19,963		$	36,233

(1)

Other costs and expenses from operations is defined as Total costs and expenses from operations per the Condensed Consolidated Statements of Operations, less Cost of goods sold (which is included in the calculation of Segment direct profit).

Intangible Assets

9 Months Ended

Jun. 30, 2023

Finite-Lived Intangible Assets, Net [Abstract]

Intangible Assets

Intangible assets consist of the following:


		June 30, 2023							September 30, 2022
(in thousands)	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Contract intangibles	6 - 8	$	17,000	$	(5,479	)	$	11,521	$	17,000	$	(3,789	)	$	13,211
Technology	3 - 5		5,300		(4,145	)		1,155		5,300		(3,089	)		2,211
Patent and trademarks	7 - 10		2,370		(1,748	)		622		2,381		(1,569	)		812
Total intangible assets, net		$	24,670	$	(11,372	)	$	13,298	$	24,681	$	(8,447	)	$	16,234

Future expected amortization of intangible assets as of June 30, 2023, is as follows:


(in thousands)
Years ending September 30,	Expected Future Amortization
Remainder of 2023	$	846
2024		3,253
2025		2,012
2026		1,768
2027 and thereafter		5,419
Total	$	13,298

Intangible asset amortization expense was $1.0 million and $1.0 million for the three months ended June 30, 2023 and 2022, respectively, and $2.9 million and $2.7 million for the nine months ended June 30, 2023 and 2022, respectively. The increase in intangible amortization expense was primarily due to the Bid4Assets acquisition as consummated on November 1, 2021.

The Company has continued to evaluate the impact of interest rate changes, elevated inflationary levels, ongoing macroeconomic disruptions, and the subsequent financial performance of Bid4Assets, on the recoverability of its long-lived assets. The Company did not identify any indicators of impairment requiring an interim impairment test on material long-lived assets during the three and nine months ended June 30, 2023

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net Income	$ 14,698	$ 31,979
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,433	7,546
Stock compensation expense	6,023	6,156
Inventory adjustment to net realizable value	859	98
Provision for doubtful accounts	519	68
Deferred tax expense	4,556	3,410
Impairment of long-lived and other non-current assets	0	31
Gain on disposal of property and equipment	(60)	(29)
Gain on termination of lease	0	(240)
Change in fair value of earn-out liability	(0)	(20,000)
Changes in operating assets and liabilities:
Accounts receivable	5,209	(2,215)
Inventory	(1,636)	(1,985)
Prepaid taxes and tax refund receivable	(135)	224
Prepaid expenses and other assets	(2,117)	(2,788)
Operating lease assets and liabilities	(207)	451
Accounts payable	2,496	6,635
Accrued expenses and other current liabilities	(2,762)	(5,955)
Deferred revenue	261	296
Payables to sellers	(3,653)	8,233
Other liabilities	(128)	(778)
Net cash provided by operating activities	32,356	31,137
Investing activities
Cash paid for business acquisition, net of cash acquired	0	(11,164)
Purchases of property and equipment, including capitalized software	(3,905)	(6,292)
Purchase of short-term investments	(5,603)	0
Other investing activities, net	58	23
Net cash used in investing activities	(9,450)	(17,433)
Financing activities
Common stock repurchases	(21,198)	(25,447)
Taxes paid associated with net settlement of stock compensation awards	(1,060)	(1,901)
Payments of the principal portion of finance lease liabilities	(75)	(75)
Payment for debt issuance cost	0	(91)
Proceeds from exercise of stock options, net of tax	496	0
Payment of earn-out liability related to business acquisition		(3,500)
Net cash used in financing activities	(21,837)	(31,014)
Effect of exchange rate differences on cash and cash equivalents	956	(739)
Net increase (decrease) in cash and cash equivalents	2,025	(18,049)
Cash and cash equivalents at beginning of period	96,122	106,335
Cash and cash equivalents at end of period	98,147	88,286
Supplemental disclosure of cash flow information
Cash paid for income taxes, net	975	592
Non-cash: Common stock surrendered in the exercise of stock options	191	100
Non-cash: Earn-out liability for acquisition activity	$ 0	$ 4,500

Stockholders' Equity - Fair Value (Details) - Employee Stock Option	9 Months Ended
	Jun. 30, 2023
Stockholders' Equity
Dividend yield percentage	0.00%
Expected volatility, minimum percentage	56.87%
Expected volatility, maximum percentage	62.16%
Risk free interest rate, minimum percentage	3.39%
Risk free interest rate, maximum percentage	3.88%
Minimum
Stockholders' Equity
Expected term	4 years 6 months
Maximum
Stockholders' Equity
Expected term	7 years 7 months 6 days

Leases - Maturities of Lease Liabilities (Parenthetical) (Details)	Jun. 30, 2023
Leases [Abstract]
Operating leases, weighted average remaining lease term	2 years 9 months 18 days
Finance leases, weighted average remaining lease term	3 years
Operating leases, weighted average discount rate	6.20%
Finance leases, weighted average discount rate	5.60%

Defined Benefit Pension Plan - Net Period Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Interest cost	$ 203	$ 122	$ 594	$ 384
Expected return on plan assets	(224)	(219)	(653)	(686)
Amortization of prior service cost	7	5	20	15
Total net periodic benefit	$ (14)	$ (92)	$ (39)	$ (287)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net	Interest Income (Expense), Net

Organization (Details)	9 Months Ended
Organization (Details)	Jun. 30, 2023 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reportable segments	4

Bid4Assets Acquisition - Intangible Assets Acquired (Details) - Bid4Assets $ in Thousands	Nov. 01, 2021 USD ($)
Business Acquisition [Line Items]
Fair value	$ 16,500
Contract intangibles
Business Acquisition [Line Items]
Fair value	$ 13,900
Useful life (in years)	8 years
Developed software
Business Acquisition [Line Items]
Fair value	$ 2,200
Useful life (in years)	3 years
Trade name
Business Acquisition [Line Items]
Fair value	$ 400
Useful life (in years)	3 years

Debt

9 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

On February 10, 2022, the Company entered into a credit facility agreement (Credit Agreement) with Wells Fargo Bank, N.A. Terms of the Credit Agreement provide for revolving loans (Line of Credit) up to a maximum aggregate principal amount of $25.0 million with a $10.0 million sublimit for standby letters of credit.

During March 2023, the Company entered into the First Amendment to the Credit Agreement (First Amendment). The First Amendment extended the Credit Agreement end date by 12 months to March 31, 2025, at which time any remaining amounts outstanding will become due immediately. No other changes, including with respect to the borrowing terms or capacities, were made as a result of the First Amendment.

The applicable interest rate on any draws under the Line of Credit is a variable rate per annum equal to the Daily Simple Secured Overnight Financing Rate (SOFR) in effect plus a margin ranging from 1.25% to 1.75%. Interest is payable monthly. The Company pays an Unused Commitment Fee (as defined in the Credit Agreement), on a quarterly basis, equal to 0.05% per annum on the daily amount of the available, but unused, balance on the Line of Credit. The Company also pays a Line of Credit Fee (as defined in the Credit Agreement), on a quarterly basis, equal to 1.25% on the daily amount available to be drawn for standby letters of credit. Interest incurred on any draws under the Line of Credit, as well as the Unused Commitment Fee and Letter of Credit Fee, are included within Interest and other (income) expense, net in the Condensed Consolidated Statements of Operations.

The Company may draw upon the Line of Credit for general corporate purposes. Repayments of any borrowings under the Line of Credit shall become available for redraw at any time by the Company.

The Credit Agreement contains certain financial and non-financial restrictive covenants including, among others, the requirement to maintain a minimum level of earnings before interest, income taxes, depreciation and amortization (EBITDA). The Credit Agreement contains a number of affirmative and restrictive covenants including limitations on mergers, consolidations and dissolutions, investments and acquisitions, indebtedness and liens, and dividends and other restricted payments. As of June 30, 2023, the Company was in full compliance with the terms and conditions of the Credit Agreement.

During the three and nine months ended June 30, 2023 and 2022, the Company did not make any draws under the Credit Agreement. As of June 30, 2023 and 2022, the Company had no outstanding borrowings under the Credit Agreement.

During the three and nine months ended June 30, 2023 and 2022, interest expense incurred by the Company under the Credit Agreement was immaterial to the condensed consolidated financial statements.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Fair Value Measurement - Contingent Consideration (Details)	3 Months Ended
	Dec. 31, 2022 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Fair value adjustment of acquisition earn-outs
Recurring basis \| Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0
Change in fair value	0
Ending balance	$ 0

Summary of Significant Accounting Policies Unaudited Interim Financial Information (Policies)	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Unaudited Interim Financial Information	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC). 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, and intercompany transactions and accounts have been eliminated in consolidation. The information disclosed in the notes to the condensed consolidated financial statements for these periods is unaudited. Operating results for the three and nine months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending September 30, 2023, or for any future period.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts in the condensed consolidated financial statements and accompanying notes. For the three and nine months ended June 30, 2023, these estimates required the Company to make assumptions about the impact of the ongoing Russia-Ukraine conflict, increasing tensions between the United States and China, and other disruptions to macroeconomic conditions and, in turn, the Company's results of operations. The Company will continue to update its assumptions as conditions change. Actual results could differ significantly from those estimates.
Contract Assets and Liabilities; Contract Costs	Contract Assets and Liabilities Contract assets reflect an estimate of expenses that will be reimbursed upon settlement with a seller. The contract asset balance was $1.2 million as of June 30, 2023, and $0.9 million as of September 30, 2022, and is included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. Contract liabilities reflect obligations to provide services for which the Company has already received consideration, and generally arise from up-front payments received in connection with Machinio's subscription services. The contract liability balance was $4.7 million as of June 30, 2023, and $4.4 million as of September 30, 2022, and is included in the line item Deferred revenue on the Condensed Consolidated Balance Sheets. Of the September 30, 2022, contract liability balance, $4.2 million was earned as other fee revenue during the nine months ended June 30, 2023. For the Company's Machinio segment, the performance obligation has been identified as the stand ready obligation to provide access to the Machinio subscription services, which it satisfies over time and recognizes as other fee revenues in the line item Consignment and other fee revenues on the Condensed Consolidated Statements of Operations. As of June 30, 2023, the Machinio segment had a remaining performance obligation of $4.7 million; the Company expects to recognize the substantial majority of that amount as other fee revenues over the next 12 months. Contract Costs Contract costs relate to sales commissions paid on subscription contracts that are capitalized within our Machinio segment. Contract costs are amortized over the expected life of the customer contract. The contract cost balance was $2.1 million as of June 30, 2023, and $1.8 million as of September 30, 2022, and is included in the line item Prepaid expenses and other current assets, and Other assets on the Condensed Consolidated Balance Sheets. Amortization expense was $0.3 million and $0.9 million during the three and nine months ended June 30, 2023, and $0.3 million and $0.8 million during the three and nine months ended June 30, 2022.
Treasury Stock	Treasury Stock Treasury stock is presented at cost, including any applicable excise taxes, commissions and fees, as a reduction of stockholders’ equity in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of Stockholders' Equity. Treasury stock held by us may be retired or reissued in the future.
Risk Associated with Certain Concentrations	Risk Associated with Certain Concentrations For the majority of buyers that receive goods before payment to the Company is made, credit evaluations are performed. However, for the remaining buyers, goods are not shipped before payment is made, and as a result the Company is not subject to significant collection risk from those buyers. 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 and cash equivalents on the Condensed Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, through Accounts payable after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks within non-interest bearing, interest-bearing, and earnings allowance checking accounts, as well as cash equivalent money market funds, all of which exceed the applicable U.S. federal (FDIC and/or SIPC) and local jurisdiction (foreign banking institutions) insurance limits, and Accounts receivable. The recent disruptions in the financial services industry have created significant market challenges and uncertainty for entities that bank with those institutions, and which raised significant concern regarding the stability of the banking system in the United States. The Company did not maintain any funds or lending relationships with any of the banks impacted and the banks we do maintain accounts and relationships with have, to date, not experienced any significant disruptions. The Company deposits its cash in interest bearing checking accounts, acquires cash equivalent money market funds, and holds short-term investments designated as held-to-maturity investment securities, each with financial institutions that the Company considers to be of high credit quality. Management continually monitors the financial institutions with whom we conduct business and responds appropriately, when necessary, to manage potential risk exposure to our cash balances above the insurance limits. We have multiple vendor contracts with Amazon.com, Inc. under which we acquire and sell commercial merchandise. While purchase model transactions account for less than 20% of our total GMV, the cost of inventory for purchase model transactions is the most significant component of our consolidated Costs of goods sold. $6.0 million and $8.1 million of inventory purchased under such contracts with Amazon.com, Inc. are included in our Consolidated Inventory balances as of June 30, 2023, and September 30, 2022, respectively. Our vendor contracts with respect to sourcing or consigning merchandise for our RSCG segment generally reflect the concentration dynamics inherent to the retail industry.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), or Accounting Standards Codification (ASC) 326. ASC 326, including all amendments and related guidance, was designed to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASC 326 will require estimation of expected credit losses using a methodology that takes into consideration a broad range of reasonable and supportable information. The guidance will be effective for the Company beginning on October 1, 2023, and will be applied on a modified-retrospective basis, with any cumulative-effect adjustment recorded to retained earnings on the adoption date. The Company is in the process of evaluating the impact ASC 326 will have on its condensed consolidated financial statements and expects to estimate credit losses on its financial assets such as its accounts receivable, cash equivalent money market funds, and short-term investments. While the Company has not experienced significant credit losses historically, the materiality of the impact of adoption will depend on events and conditions as of the date of adoption, which cannot be determined conclusively at this time.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126899994&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

+ Details

Earnings Per Share

9 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

Basic net income per share is computed by dividing Net income for the period by the weighted average number of shares outstanding during the period. Diluted net income per share is computed by dividing Net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The calculation of Diluted net income per share excludes all anti-dilutive common shares.

The computation of Basic and Diluted net income per share is as follows:


	Three months ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	6,487	$	16,408	$	14,698	$	31,979
Denominator:
Basic weighted average shares outstanding		30,605,963		31,908,864		31,243,979		32,482,326
Dilutive impact of stock options, RSUs and RSAs		907,525		1,169,704		949,260		1,530,907
Diluted weighted average shares outstanding		31,513,488		33,078,568		32,193,239		34,013,233
Basic income per common share	$	0.21	$	0.51	$	0.47	$	0.98
Diluted income per common share	$	0.21	$	0.50	$	0.46	$	0.94
Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive		1,813,106		1,303,147		1,834,550		1,290,073

Debt (Details) - USD ($)		9 Months Ended
Debt (Details) - USD ($)	Feb. 10, 2022	Jun. 30, 2023	Jun. 30, 2022
Credit Agreement
Debt Instrument [Line Items]
Amount outstanding		$ 0	$ 0
First Amendement
Debt Instrument [Line Items]
Line of credit facility, expiration date		Mar. 31, 2025
Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, unused capacity, commitment fee percentage	0.05%
Line of credit facility, commitment fee percentage	1.25%
Revolving Credit Facility \| Minimum \| Credit Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.25%
Revolving Credit Facility \| Maximum \| Credit Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.75%
Revolving Credit Facility \| Wells Fargo Bank, N.A
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000.0
Letter of Credit \| Wells Fargo Bank, N.A
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,000,000.0

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense	$ 1.0	$ 1.0	$ 2.9	$ 2.7

Bid4Assets Acquisition

9 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Bid4Assets Acquisition

On November 1, 2021, the Company purchased all of the issued and outstanding shares of stock of Bid4Assets, Inc. (Bid4Assets), a Maryland corporation. Bid4Assets is a leading online marketplace focused on conducting real property auctions for the government, including tax foreclosure sales and sheriff's sales. The results of Bid4Assets' operations are included within our GovDeals reportable segment and reporting unit.

The acquisition date fair value of the consideration transferred to the former shareholders of Bid4Assets was approximately $42.7 million consisting of $14.7 million in cash (net of working capital adjustments totaling $0.3 million) and earn-out consideration with a fair value of $28.0 million. Former shareholders of Bid4Assets were eligible to receive earn-out consideration of up to $37.5 million in cash, payable based on Bid4Assets' achievement of trailing twelve-month EBITDA targets measured at the end of each calendar quarter until the quarter ended December 31, 2022.

The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the Bid4Assets acquisition date of November 1, 2021, is as follows:


(in thousands)	Fair Value
Cash and cash equivalents	$	3,576
Intangible assets		16,500
Other assets		346
Total assets acquired		20,422
Payable to sellers		3,715
Operating lease liabilities		204
Deferred tax liability		3,847
Total liabilities assumed		7,766
Net identifiable assets acquired	$	12,656
Goodwill		30,083
Total consideration transferred	$	42,739

The excess of purchase consideration over the fair value of assets acquired and liabilities assumed was recorded as Goodwill. The Goodwill associated with our acquisition includes the acquired assembled work force, and the value associated with the opportunity to leverage the workforce to continue to grow by adding additional customer relationships or new solutions in the future. Based on management's valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, Goodwill of approximately $30.1 million was recorded. The total Goodwill arising from the acquisition is included in the GovDeals reportable segment and reporting unit and is not deductible for tax purposes.

The known intangible assets acquired were determined to consist of, and fair valued at, the following:


(in thousands)	Useful Life (in years)	Fair Value
Contract intangibles	8	$	13,900
Developed software	3		2,200
Trade name	3		400
Total identifiable intangible assets		$	16,500

Contingent Consideration

During the year ended September 30, 2022, and as a result of the acquisition of Bid4Assets, the Company recorded contingent consideration in the amount of $28.0 million on its Condensed Consolidated Balance Sheets. Through December 31, 2022, $3.5 million in earn-out payments were made. The remaining earn-out fair value was $0 based upon actual performance through the final earn-out measurement period ending December 31, 2022. See further discussion of this matter within Note 11 - Fair Value Measurement.

Other Information

Revenue, net income (loss), and pro forma information related to the Bid4Assets acquisition was immaterial to the condensed consolidated financial statements and its related notes for the three and nine months ended June 30, 2022.

Stockholders' Equity - Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stockholders' Equity
Total stock compensation expense	$ 2,195	$ 1,884	$ 6,216	$ 6,156
Stock Options and RSUs and RSAs
Stockholders' Equity
Total stock compensation expense	2,195	1,983	6,261	6,356
Stock options
Stockholders' Equity
Total stock compensation expense	524	505	1,524	2,097
RSUs & RSAs
Stockholders' Equity
Total stock compensation expense	1,671	1,478	4,737	4,259
SARs
Stockholders' Equity
Total stock compensation expense	$ 0	$ (99)	$ (45)	$ (200)

Fair Value Measurement (Tables)

9 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Changes In Financial Liabilities Fair Value

The changes in earn-out liability measured at fair value for which the Company has used Level 3 inputs to determine fair value during the three months ended December 31, 2022, was as follows (in thousands):


	Contingent Consideration
Balance at September 30, 2022	$	—
Change in fair value		—
Balance at December 31, 2022	$	—

Segment Information - Narrative (Details) - Segment	3 Months Ended		9 Months Ended
Segment Information - Narrative (Details) - Segment	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue, Major Customer [Line Items]
Reportable segments			4
Non-US \| Sales Revenue \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk percentage	8.80%	11.90%	10.40%	13.60%

Organization

9 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Liquidity Services, Inc. (Liquidity Services or the Company) is a leading global commerce company providing trusted marketplace platforms that power the circular economy. We create a better future for organizations, individuals, and the planet by capturing and unleashing the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading auction marketplaces, search engines, asset management software, and related services. Our comprehensive solutions enable the transparent, efficient, sustainable recovery of value from excess items owned by business and government sellers.

Our business delivers value to shareholders by unleashing the intrinsic value of surplus through our marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in growing numbers. The result of this cycle is a continuous flow of goods that becomes increasingly valuable as more participants join the platforms, thereby creating positive network effects that benefit sellers, buyers, and shareholders.

Results from our operations are organized into four reportable segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG) and Machinio. See Note 14 - Segment Information for more information regarding our segments.

Liquidity Services was incorporated in Delaware in November 1999 as Liquidation.com, Inc. and commenced operations in early 2000.

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 including any future economic impact from the ongoing Russia-Ukraine conflict, increasing tensions between the United States and China, inflationary pressures, recent volatility in the financial services industry, and impacts from interest rate changes; 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.

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings
Balance (in shares) at Sep. 30, 2021		35,457,095
Balance at Sep. 30, 2021	$ 135,015	$ 35	$ 252,017		$ (9,011)	$ (71,398)
Balance (in shares) at Sep. 30, 2021				(2,222,083)
Increase (Decrease) in Stockholders' Equity
Net income	3,602					3,602
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		131,070
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	1	$ 1
Taxes paid associated with net settlement of stock compensation awards (in shares)		(40,239)
Taxes paid associated with net settlement of stock compensation awards	(851)		(851)
Common stock repurchased	(2,963)			$ (2,963)
Common stock repurchased (in shares)				(147,185)
Stock compensation expense	2,270		2,270
Balance (in shares) at Dec. 31, 2021		35,533,071
Balance at Dec. 31, 2021	137,079	$ 36	253,536		(9,142)	(67,660)
Balance (in shares) at Dec. 31, 2021				(2,373,946)
Balance (in shares) at Sep. 30, 2021		35,457,095
Balance at Sep. 30, 2021	135,015	$ 35	252,017		(9,011)	(71,398)
Balance (in shares) at Sep. 30, 2021				(2,222,083)
Increase (Decrease) in Stockholders' Equity
Net income	31,979
Balance (in shares) at Jun. 30, 2022		35,576,454
Balance at Jun. 30, 2022	144,669	$ 36	256,572		(10,481)	(39,282)
Balance (in shares) at Jun. 30, 2022				(3,794,038)
Balance (in shares) at Dec. 31, 2021		35,533,071
Balance at Dec. 31, 2021	137,079	$ 36	253,536		(9,142)	(67,660)
Balance (in shares) at Dec. 31, 2021				(2,373,946)
Increase (Decrease) in Stockholders' Equity
Net income	11,970					11,970
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		320,943
Taxes paid associated with net settlement of stock compensation awards (in shares)		(47,124)
Taxes paid associated with net settlement of stock compensation awards	(958)		(958)
Common stock repurchased	(17,035)			$ (17,035)
Common stock repurchased (in shares)				(1,011,881)
Stock compensation expense	2,102		2,102
Balance (in shares) at Mar. 31, 2022		35,563,988
Balance at Mar. 31, 2022	132,989	$ 36	254,680		(9,311)	(55,690)
Balance (in shares) at Mar. 31, 2022				(3,385,827)
Increase (Decrease) in Stockholders' Equity
Net income	16,408					16,408
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		18,373
Taxes paid associated with net settlement of stock compensation awards (in shares)		(5,907)
Taxes paid associated with net settlement of stock compensation awards	(92)		(92)
Common stock repurchased	(5,450)			$ (5,450)
Common stock repurchased (in shares)				(408,211)
Stock compensation expense	1,984		1,984
Balance (in shares) at Jun. 30, 2022		35,576,454
Balance at Jun. 30, 2022	$ 144,669	$ 36	256,572		(10,481)	(39,282)
Balance (in shares) at Jun. 30, 2022				(3,794,038)
Balance (in shares) at Sep. 30, 2022	35,724,057	35,724,057
Balance at Sep. 30, 2022	$ 154,536	$ 36	258,275	$ (62,554)	(10,285)	(30,936)
Balance (in shares) at Sep. 30, 2022	3,813,199			(3,813,199)
Increase (Decrease) in Stockholders' Equity
Net income	$ 3,967					3,967
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		190,119
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	495		495
Taxes paid associated with net settlement of stock compensation awards (in shares)		(14,536)
Taxes paid associated with net settlement of stock compensation awards	(244)		(244)
Common stock repurchased	(7,199)			$ (7,199)
Common stock repurchased (in shares)				(531,819)
Stock compensation expense	2,126		2,126
Foreign currency translation	1,273				1,273
Balance (in shares) at Dec. 31, 2022		35,899,640
Balance at Dec. 31, 2022	$ 154,953	$ 36	260,653	$ (69,754)	(9,012)	(26,970)
Balance (in shares) at Dec. 31, 2022				(4,345,018)
Balance (in shares) at Sep. 30, 2022	35,724,057	35,724,057
Balance at Sep. 30, 2022	$ 154,536	$ 36	258,275	$ (62,554)	(10,285)	(30,936)
Balance (in shares) at Sep. 30, 2022	3,813,199			(3,813,199)
Increase (Decrease) in Stockholders' Equity
Net income	$ 14,698
Balance (in shares) at Jun. 30, 2023	36,115,562	36,115,562
Balance at Jun. 30, 2023	$ 155,809	$ 36	264,162	$ (84,027)	(8,124)	(16,238)
Balance (in shares) at Jun. 30, 2023	5,432,546			(5,432,546)
Balance (in shares) at Dec. 31, 2022		35,899,640
Balance at Dec. 31, 2022	$ 154,953	$ 36	260,653	$ (69,754)	(9,012)	(26,970)
Balance (in shares) at Dec. 31, 2022				(4,345,018)
Increase (Decrease) in Stockholders' Equity
Net income	4,245					4,245
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		184,791
Taxes paid associated with net settlement of stock compensation awards (in shares)		(34,713)
Taxes paid associated with net settlement of stock compensation awards	(492)		(492)
Common stock repurchased	(9,814)			$ (9,814)
Common stock repurchased (in shares)				(749,903)
Shares swapped to exercise stock options			18	$ (18)
Shares swapped to exercise stock options (in shares)				(1,420)
Stock compensation expense	1,939		1,939
Foreign currency translation	243				243
Balance (in shares) at Mar. 31, 2023		36,049,718
Balance at Mar. 31, 2023	151,074	$ 36	262,118	$ (79,586)	(8,769)	(22,725)
Balance (in shares) at Mar. 31, 2023				(5,096,341)
Increase (Decrease) in Stockholders' Equity
Net income	6,487					6,487
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		87,515
Taxes paid associated with net settlement of stock compensation awards (in shares)		(21,671)
Taxes paid associated with net settlement of stock compensation awards	(324)		(324)
Common stock repurchased	(4,268)			$ (4,268)
Common stock repurchased (in shares)				(325,410)
Shares swapped to exercise stock options			173	$ (173)
Shares swapped to exercise stock options (in shares)				(10,795)
Stock compensation expense	2,195		2,195
Foreign currency translation	$ 645				645
Balance (in shares) at Jun. 30, 2023	36,115,562	36,115,562
Balance at Jun. 30, 2023	$ 155,809	$ 36	$ 264,162	$ (84,027)	$ (8,124)	$ (16,238)
Balance (in shares) at Jun. 30, 2023	5,432,546			(5,432,546)

Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2023	Jun. 30, 2022	Mar. 13, 2023	Dec. 06, 2022	Sep. 30, 2022
Stockholders' Equity
Shares reserved for issuance	20,300,000						20,300,000
Reserve shares counted per share granted from fungible share pool	1.5						1.5
Remaining shares reserved for issuance	972,696						972,696
Shares and options vesting period							3 years
Common stock repurchases	$ 4,268	$ 9,814	$ 7,199	$ 5,450	$ 17,035	$ 2,963
Remaining repurchase amount	$ 1,800						$ 1,800
Stock repurchase program, authorized amount											$ 6,600
Common stock surrendered in the exercise of stock options (in shares)							12,215	4,678
December 2022 Repurchase Plan
Stockholders' Equity
Shares repurchased							1,607,132
Common stock repurchases							$ 21,200
Stock repurchase program, authorized amount									$ 8,000	$ 8,400
Stock Option - Service Based
Stockholders' Equity
Shares and options vesting period							4 years

Fair Value Measurement

9 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement

11.

Fair Value Measurement

The Company measures and records 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 prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Unobservable inputs for the asset or liability.

Cash and cash equivalents. The Company had $37.5 million and $22.0 million of money market funds considered cash equivalents at June 30, 2023, and September 30, 2022, respectively. These assets were measured at fair value as of June 30, 2023, and September 30, 2022, and were classified as Level 1 assets within the fair value hierarchy. There were no transfers between levels during the periods presented.

Contingent consideration. During the year ended September 30, 2022, and as a result of the acquisition of Bid4Assets, Inc. (Bid4Assets), the Company recorded preliminary fair value of contingent consideration in the amount of $28.0 million on its Consolidated Balance Sheets as of the acquisition date. The contingent consideration was based on Bid4Assets' achievement of trailing twelve-month EBITDA targets measured at the end of each calendar quarter until the quarter ended December 31, 2022. The liability for this consideration was included in Accrued expenses and other current liabilities within the Consolidated Balance Sheets.


	Contingent Consideration
Balance at September 30, 2022	$	—
Change in fair value		—
Balance at December 31, 2022	$	—

Through the earnout period ended December 31, 2022, $3.5 million in earn-out payments were made. As of September 30, 2022, the earn-out fair value was estimated to be $0 based upon a Monte Carlo simulation of forecasted EBITDA for the final measurement period ending December 31, 2022.

As of December 31, 2022, the remaining earn-out fair value was $0 based upon actual performance through the final earn-out measurement period ended December 31, 2022.

Other Information. 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.

The Company’s financial assets and liabilities not measured at fair value are cash, short-term investments, accounts receivable, accounts payable, and payables to sellers. The Company believes the carrying values of these instruments approximate fair value.

As of June 30, 2023, the Company had no non-financial instruments measured at fair value on a non-recurring basis other than fair value measurements associated with the purchase accounting for Bid4Assets. As of June 30, 2023, and September 30, 2022, the Company did not have any material assets or liabilities measured at fair value on a non-recurring basis.

- 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

Stockholders' Equity - Grant Activity (Details)	9 Months Ended
Stockholders' Equity - Grant Activity (Details)	Jun. 30, 2023 $ / shares shares
Stock Option - Service Based
Stock Options granted:
Options granted (in shares) \| shares	178,048
Weighted average exercise price (USD per share)	$ 14.43
Weighted average grant date fair value (USD per share)	$ 7.50
Stock Option - Performance Based
Stock Options granted:
Options granted (in shares) \| shares	175,910
Weighted average exercise price (USD per share)	$ 14.42
Weighted average grant date fair value (USD per share)	$ 7.48
Restricted Stock - Service Based
RSUs & RSAs granted:
Restricted shares granted \| shares	472,813
Weighted average grant date fair value (USD per share)	$ 15.14
Restricted Stock - Performance Based
RSUs & RSAs granted:
Restricted shares granted \| shares	288,420
Weighted average grant date fair value (USD per share)	$ 15.15

Defined Benefit Pension Plan - Additional Information (Details)	Jun. 30, 2023 GBP (£)
Maximum
Defined benefit pension plan
Expected contributions	£ 10,000,000

Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Lease Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Finance lease – lease asset amortization	$ 20	$ 19	$ 59	$ 61
Finance lease – interest on lease liabilities	4	5	12	15
Operating lease cost	1,327	1,406	4,011	4,318
Short-term lease cost	78	101	348	218
Variable lease cost	199	405	948	958
Sublease income	(27)	(22)	(78)	(90)
Total net lease cost	$ 1,601	$ 1,914	$ 5,300	$ 5,480

Bid4Assets Acquisition (Tables)

9 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of business acquisitions, by acquisition

The Company's allocation of the purchase price to the assets acquired and liabilities assumed as of the Bid4Assets acquisition date of November 1, 2021, is as follows:


(in thousands)	Fair Value
Cash and cash equivalents	$	3,576
Intangible assets		16,500
Other assets		346
Total assets acquired		20,422
Payable to sellers		3,715
Operating lease liabilities		204
Deferred tax liability		3,847
Total liabilities assumed		7,766
Net identifiable assets acquired	$	12,656
Goodwill		30,083
Total consideration transferred	$	42,739

Finite-lived and indefinite-lived intangible assets acquired as part of business combination

The known intangible assets acquired were determined to consist of, and fair valued at, the following:


(in thousands)	Useful Life (in years)	Fair Value
Contract intangibles	8	$	13,900
Developed software	3		2,200
Trade name	3		400
Total identifiable intangible assets		$	16,500

Leases

9 Months Ended

Jun. 30, 2023

Leases [Abstract]

Leases

The Company has operating leases for its corporate offices, warehouses, vehicles and equipment. The operating leases have remaining terms of up to 3.6 years. Some of the leases have options to extend or terminate the leases. The exercise of such options is generally at the Company’s discretion. The lease agreements do not contain any significant residual value guarantees or restrictive covenants. The Company also subleases excess corporate office space. The Company's finance leases and related balances are not significant.

The components of lease expense are:


	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Finance lease – lease asset amortization	$	20		$	19		$	59		$	61
Finance lease – interest on lease liabilities		4			5			12			15
Operating lease cost		1,327			1,406			4,011			4,318
Short-term lease cost		78			101			348			218
Variable lease cost (1)		199			405			948			958
Sublease income		(27	)		(22	)		(78	)		(90	)
Total net lease cost	$	1,601		$	1,914		$	5,300		$	5,480

(1)

Variable lease costs primarily relate to the Company's election to combine non-lease components such as common area maintenance, insurance and taxes related to its real estate leases. To a lesser extent, the Company's equipment leases have variable costs associated with usage and subsequent changes to costs based upon an index.

Maturities of lease liabilities are:


	June 30, 2023
	Operating Leases			Finance Leases
Remainder of 2023	$	1,303		$	29
2024		4,503			97
2025		3,682			68
2026		2,235			65
2027		420			12
Thereafter		—			—
Total lease payments (1)	$	12,143		$	271
Less: imputed interest (2)		(978	)		(21	)
Total lease liabilities	$	11,165		$	250

(1)

The weighted average remaining lease term is 2.8 years for operating leases and 3.0 years for finance leases.

(2)

The weighted average discount rate is 6.2 % for operating leases and 5.6 % for finance leases.

Supplemental disclosures of cash flow information related to leases are:


	Nine Months Ended June 30,
	2023		2022
Cash paid for amounts included in operating lease liabilities	$	3,598	$	3,190
Cash paid for amounts included in finance lease liabilities	$	75	$	75
Non-cash: lease liabilities arising from new operating lease assets obtained	$	—	$	4,664
Non-cash: lease liabilities arising from new finance lease assets obtained	$	—	$	179
Non-cash: adjustments to lease assets and liabilities(1)	$	408	$	(196	)

(1)

These include adjustments due to lease modifications, renewals, and other related adjustments.

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Total revenue	$ 80,770	$ 69,866	$ 234,505	$ 204,848
Costs and expenses from operations:
Cost of goods sold (excludes depreciation and amortization)	35,201	28,932	107,340	85,662
Technology and operations	13,927	13,782	43,423	41,573
Sales and marketing	13,068	10,900	35,712	32,217
General and administrative	7,454	6,389	21,243	21,672
Depreciation and amortization	2,866	2,641	8,433	7,546
Fair value adjustment of acquisition earn-outs	(0)	(11,500)	(0)	(20,000)
Other operating (income) expenses, net	(1)	27	128	18
Total costs and expenses	72,515	51,171	216,279	168,688
Income from operations	8,255	18,695	18,226	36,160
Interest and other (income) expense, net	(775)	104	(1,737)	(73)
Income before provision for income taxes	9,030	18,591	19,963	36,233
Provision for income taxes	2,543	2,183	5,265	4,254
Net income	$ 6,487	$ 16,408	$ 14,698	$ 31,979
Basic income per common share (in usd per share)	$ 0.21	$ 0.51	$ 0.47	$ 0.98
Diluted income per common share (in usd per share)	$ 0.21	$ 0.50	$ 0.46	$ 0.94
Basic weighted average shares outstanding (in shares)	30,605,963	31,908,864	31,243,979	32,482,326
Diluted weighted average shares outstanding	31,513,488	33,078,568	32,193,239	34,013,233
Purchase revenues
Total revenue	$ 42,809	$ 35,507	$ 128,715	$ 109,109
Consignment and other fee revenues
Total revenue	$ 37,961	$ 34,359	$ 105,790	$ 95,739

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Operating Leases
Remainder of 2023	$ 1,303
2024	4,503
2025	3,682
2026	2,235
2027	420
Thereafter	0
Total lease payments	12,143
Less: imputed interest	(978)
Total lease liabilities	11,165
Finance Leases
Remainder of 2023	29
2024	97
2025	68
2026	65
2027	12
Thereafter	0
Total lease payments	271
Less: imputed interest	(21)
Total lease liabilities	$ 250
Operating lease, liability, statement of financial position	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Finance lease, liability, statement of financial position	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

The computation of Basic and Diluted net income per share is as follows:


	Three months ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income	$	6,487	$	16,408	$	14,698	$	31,979
Denominator:
Basic weighted average shares outstanding		30,605,963		31,908,864		31,243,979		32,482,326
Dilutive impact of stock options, RSUs and RSAs		907,525		1,169,704		949,260		1,530,907
Diluted weighted average shares outstanding		31,513,488		33,078,568		32,193,239		34,013,233
Basic income per common share	$	0.21	$	0.51	$	0.47	$	0.98
Diluted income per common share	$	0.21	$	0.50	$	0.46	$	0.94
Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive		1,813,106		1,303,147		1,834,550		1,290,073

Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Future expected amortization of intangible assets
Remainder of 2023	$ 846
2024	3,253
2025	2,012
2026	1,768
2027 and thereafter	5,419
Net Carrying Amount	$ 13,298	$ 16,234

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income	$ 6,487	$ 16,408	$ 14,698	$ 31,979
Denominator:
Basic weighted average shares outstanding	30,605,963	31,908,864	31,243,979	32,482,326
Dilutive impact of stock options, RSUs and RSAs	907,525	1,169,704	949,260	1,530,907
Diluted weighted average shares outstanding	31,513,488	33,078,568	32,193,239	34,013,233
Basic income per common share	$ 0.21	$ 0.51	$ 0.47	$ 0.98
Diluted income per common share	$ 0.21	$ 0.50	$ 0.46	$ 0.94
Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive	1,813,106	1,303,147	1,834,550	1,290,073

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1448-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22644-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=128363288&loc=d3e3842-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(27))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(23))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1337-109256

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(25))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 11
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e1377-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124432515&loc=d3e3550-109257

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

Leases - Narrative (Details)	Jun. 30, 2023
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	3 years 7 months 6 days

Defined Benefit Pension Plan (Tables)

9 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Schedule of net periodic benefit cost recognized

The net periodic (benefit) is recognized within Interest and other (income) expense, net in the Condensed Consolidated Statements of Operations, and for the three and nine months ended June 30, 2023 and 2022, included the following components:


	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)	2023			2022			2023			2022
Interest cost	$	203		$	122		$	594		$	384
Expected return on plan assets		(224	)		(219	)	$	(653	)		(686	)
Amortization of prior service cost		7			5		$	20			15
Total net periodic (benefit)	$	(14	)	$	(92	)	$	(39	)	$	(287	)

Segment Information - Reconciliation from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting [Abstract]
Total segment gross profit	$ 45,568	$ 40,934	$ 127,165	$ 119,186
Other costs and expenses from operations	37,315	33,712	108,811	103,008
Fair value adjustment of acquisition earn-outs	(0)	(11,500)	(0)	(20,000)
Interest and other (income) expense, net	(777)	131	(1,609)	(55)
Income before provision for income taxes	$ 9,030	$ 18,591	$ 19,963	$ 36,233

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 18: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1,2)
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Intangible Assets (Tables)

9 Months Ended

Jun. 30, 2023

Finite-Lived Intangible Assets, Net [Abstract]

Schedule of intangible assets

Intangible assets consist of the following:


		June 30, 2023							September 30, 2022
(in thousands)	Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Contract intangibles	6 - 8	$	17,000	$	(5,479	)	$	11,521	$	17,000	$	(3,789	)	$	13,211
Technology	3 - 5		5,300		(4,145	)		1,155		5,300		(3,089	)		2,211
Patent and trademarks	7 - 10		2,370		(1,748	)		622		2,381		(1,569	)		812
Total intangible assets, net		$	24,670	$	(11,372	)	$	13,298	$	24,681	$	(8,447	)	$	16,234

Schedule of Future Expected Amortization of Intangible Assets

Future expected amortization of intangible assets as of June 30, 2023, is as follows:


(in thousands)
Years ending September 30,	Expected Future Amortization
Remainder of 2023	$	846
2024		3,253
2025		2,012
2026		1,768
2027 and thereafter		5,419
Total	$	13,298

Summary of Significant Accounting Policies Unaudited Interim Financial Information - Narrative 1 (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 $ in Millions	Jun. 30, 2023 USD ($)
Business Acquisition [Line Items]
Remaining performance obligation, period	12 months
Machinio
Business Acquisition [Line Items]
Remaining performance obligation	$ 4.7

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Current assets:
Cash and cash equivalents	$ 98,147	$ 96,122
Short-term investments	7,715	1,819
Accounts receivable, net of allowance for doubtful accounts of $313 and $449	6,257	11,792
Inventory, net	12,541	11,679
Prepaid taxes and tax refund receivable	1,766	1,631
Prepaid expenses and other current assets	8,476	6,551
Total current assets	134,902	129,594
Property and equipment, net	17,570	19,094
Operating lease assets	10,305	13,207
Intangible assets, net	13,298	16,234
Goodwill	89,616	88,910
Deferred tax assets	9,072	13,628
Other assets	8,264	7,437
Total assets	283,027	288,104
Current liabilities:
Accounts payable	44,606	41,982
Accrued expenses and other current liabilities	20,538	23,304
Current portion of operating lease liabilities	4,279	4,540
Deferred revenue	4,700	4,439
Payables to sellers	46,071	49,238
Total current liabilities	120,194	123,503
Operating lease liabilities	6,843	9,687
Other long-term liabilities	181	378
Total liabilities	127,218	133,568
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; 36,049,719 shares issued and outstanding at March 31, 2023; 35,724,057 shares issued and outstanding at September 30, 2022	36	36
Additional paid-in capital	264,162	258,275
Treasury stock, at cost; 5,096,341 shares at March 31, 2023, and 3,813,199 shares at September 30, 2022	(84,027)	(62,554)
Accumulated other comprehensive loss	(8,124)	(10,285)
Accumulated deficit	(16,238)	(30,936)
Total stockholders’ equity	155,809	154,536
Total liabilities and stockholders’ equity	$ 283,027	$ 288,104

Goodwill

9 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows:


(in thousands)	GovDeals		CAG			Machinio		Total
September 30, 2021	$	23,731	$	21,583		$	14,558	$	59,872
Addition: Bid4Assets acquisition		30,083		—			—		30,083
Translation adjustments		—		(1,045	)		—		(1,045	)
September 30, 2022		53,814		20,538			14,558		88,910
Translation adjustments		—		706			—		706
June 30, 2023	$	53,814	$	21,244		$	14,558	$	89,616

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 has continued to evaluate the impact of interest rate changes, elevated inflationary levels, and other ongoing macroeconomic disruptions on the recoverability of its goodwill. The Company did not identify any indicators of impairment that required an interim goodwill impairment test during the three and nine months ended June 30, 2023.

Stockholders' Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity
Balance (in shares)			35,724,057				35,724,057
Balance	$ 151,074	$ 154,953	$ 154,536	$ 132,989	$ 137,079	$ 135,015	$ 154,536	$ 135,015
Balance (in shares)			3,813,199				3,813,199
Net income	6,487	4,245	$ 3,967	16,408	11,970	3,602	$ 14,698	$ 31,979
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units			495			1
Taxes paid associated with net settlement of stock compensation awards	(324)	(492)	(244)	(92)	(958)	(851)
Common stock repurchased	(4,268)	(9,814)	(7,199)	(5,450)	(17,035)	(2,963)
Common stock surrendered in the exercise of stock options (in shares)							(12,215)	(4,678)
Stock compensation expense	$ 2,195	1,939	2,126	1,984	2,102	2,270
Foreign currency translation and other				(1,170)	(169)	5
Balance (in shares)	36,115,562						36,115,562
Balance	$ 155,809	$ 151,074	$ 154,953	$ 144,669	$ 132,989	$ 137,079	$ 155,809	$ 144,669
Balance (in shares)	5,432,546						5,432,546
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance (in shares)	36,049,718	35,899,640	35,724,057	35,563,988	35,533,071	35,457,095	35,724,057	35,457,095
Balance	$ 36	$ 36	$ 36	$ 36	$ 36	$ 35	$ 36	$ 35
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)	87,515	184,791	190,119	18,373	320,943	131,070
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units						$ 1
Taxes paid associated with net settlement of stock compensation awards (in shares)	(21,671)	(34,713)	(14,536)	(5,907)	(47,124)	(40,239)
Forfeiture of restricted stock awards (in shares)					(242,902)	(14,855)
Balance (in shares)	36,115,562	36,049,718	35,899,640	35,576,454	35,563,988	35,533,071	36,115,562	35,576,454
Balance	$ 36	$ 36	$ 36	$ 36	$ 36	$ 36	$ 36	$ 36
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Balance	262,118	260,653	258,275	254,680	253,536	252,017	258,275	252,017
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units			495
Taxes paid associated with net settlement of stock compensation awards	(324)	(492)	(244)	(92)	(958)	(851)
Common stock surrendered in the exercise of stock options						100
Stock compensation expense	2,195	1,939	2,126	1,984	2,102	2,270
Balance	264,162	262,118	260,653	$ 256,572	$ 254,680	$ 253,536	264,162	$ 256,572
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance	$ (79,586)	$ (69,754)	$ (62,554)				$ (62,554)
Balance (in shares)	(5,096,341)	(4,345,018)	(3,813,199)	(3,385,827)	(2,373,946)	(2,222,083)	(3,813,199)	(2,222,083)
Balance				$ (56,726)	$ (39,691)	$ (36,628)		$ (36,628)
Common stock repurchased (in shares)	(325,410)	(749,903)	(531,819)	(408,211)	(1,011,881)	(147,185)
Common stock repurchased	$ (4,268)	$ (9,814)	$ (7,199)	$ (5,450)	$ (17,035)	$ (2,963)
Common stock surrendered in the exercise of stock options						$ (100)
Common stock surrendered in the exercise of stock options (in shares)						(4,678)
Balance	$ (84,027)	$ (79,586)	$ (69,754)				$ (84,027)
Balance (in shares)	(5,432,546)	(5,096,341)	(4,345,018)	(3,794,038)	(3,385,827)	(2,373,946)	(5,432,546)	(3,794,038)
Balance				$ (62,176)	$ (56,726)	$ (39,691)		$ (62,176)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance	$ (8,769)	$ (9,012)	$ (10,285)	(9,311)	(9,142)	(9,011)	$ (10,285)	(9,011)
Foreign currency translation and other				(1,170)	(169)	(131)
Balance	(8,124)	(8,769)	(9,012)	(10,481)	(9,311)	(9,142)	(8,124)	(10,481)
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity
Balance	(22,725)	(26,970)	(30,936)	(55,690)	(67,660)	(71,398)	(30,936)	(71,398)
Net income	6,487	4,245	3,967	16,408	11,970	3,602
Foreign currency translation and other						136
Balance	$ (16,238)	$ (22,725)	$ (26,970)	$ (39,282)	$ (55,690)	$ (67,660)	$ (16,238)	$ (39,282)

Fair Value Measurement - Narrative (Details) - USD ($)		3 Months Ended	12 Months Ended
Fair Value Measurement - Narrative (Details) - USD ($)	Nov. 01, 2021	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2023
Fair value measurement
Money market funds, at carrying value			$ 22,000,000.0	$ 37,500,000
Recurring basis \| Level 3
Fair value measurement
Earn-out from business acquisition	$ 28,000,000.0
Fair value adjustments of acquisition earn-outs		$ 0
Payment of achieved earn-out threshold			(3,500,000)
Fair value, measurement with unobservable inputs reconciliations, recurring basis, liability value		$ 0	0
Nonrecurring
Fair value measurement
Fair value, asset (liability)			$ 0	$ 0

Legal Proceedings and Other Contingencies

9 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings and Other Contingencies

13.

Legal Proceedings and Other Contingencies

The Company reserves for contingent liabilities based on ASC 450, Contingencies, when it determines that a liability is probable and reasonably estimable.

From time to time, the Company may become involved in litigation relating to claims arising in the ordinary course of the business. However, unless otherwise noted, there are no claims or actions pending or threatened against the Company that, if adversely determined, would in the Company's management's judgment have a material adverse effect on the Company.

Former Employee Matters

In May 2021, the Company’s former Vice President, Human Resources filed a complaint against the Company in federal court in Montgomery County, Maryland, alleging wrongful termination on the basis of gender, race, and age. The parties have completed the discovery phase of this case. On April 4, 2022, the Company filed a motion for summary judgment. The court granted the motion with respect to the age discrimination claim but denied the motion with respect to the race and gender discrimination claims. The Company believes the remaining claims are without merit and cannot estimate a range of potential liability, if any, at this time. The Company’s employment practices liability insurance carrier, CNA, has accepted tender of this claim. The trial for this matter is scheduled to begin on October 30, 2023.

In October 2021, the Company’s former Chief Marketing Officer (the “Former CMO”) filed a charge with the Equal Employment Opportunity Commission (the “EEOC”), alleging wrongful termination on the basis of race and age and that the Company retaliated against him. The Company submitted its position statement to the EEOC on February 8, 2022. On December 28, 2022, the Former CMO filed a complaint (the “Original Complaint”), alleging the same claims noted in the EEOC charge in federal court in Montgomery County, Maryland (the “District Court”). The EEOC dismissed the Former CMO’s charge on April 26, 2023. In addition, on April 26, 2023, the Former CMO filed an amended complaint with the District Court, alleging the same claims made in the Original Complaint. The Company believes these claims are without merit and cannot estimate a range of potential liability, if any, at this time. CNA has accepted tender of these claims as well.

Unless otherwise noted, based on the information currently available, there are no claims or actions pending or threatened against the Company that, if adversely determined, would have, in Company’s management’s judgment based on the information known to management, a material adverse effect on the Company.

Segment Information - Schedule of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 80,770	$ 69,866	$ 234,505	$ 204,848
Total segment gross profit	45,568	40,934	127,165	119,186
Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	17,270	16,587	45,956	45,130
Total segment gross profit	16,389	15,765	43,572	42,913
Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	50,971	42,374	150,657	122,883
Total segment gross profit	17,876	15,942	50,562	46,818
Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	8,985	7,796	27,795	27,996
Total segment gross profit	7,938	6,271	23,466	21,076
Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	3,559	3,124	10,144	8,883
Total segment gross profit	3,381	2,971	9,611	8,424
Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	(16)	15	(47)	44
Total segment gross profit	(16)	15	(47)	44
Consignment and other fee revenues
Segment Reporting Information [Line Items]
Total revenue	37,961	34,359	105,790	95,739
Consignment and other fee revenues \| Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	17,270	16,587	45,956	45,130
Consignment and other fee revenues \| Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	9,532	8,586	29,006	23,045
Consignment and other fee revenues \| Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	7,615	6,077	20,731	18,725
Consignment and other fee revenues \| Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	3,559	3,124	10,144	8,883
Consignment and other fee revenues \| Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	(16)	15	(47)	44
Purchase revenues
Segment Reporting Information [Line Items]
Total revenue	42,809	35,507	128,715	109,109
Purchase revenues \| Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
Purchase revenues \| Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	41,439	33,788	121,651	99,838
Purchase revenues \| Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	1,370	1,719	7,064	9,271
Purchase revenues \| Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
Purchase revenues \| Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 0	$ 0	$ 0

Intangible Assets - Schedule of intangible assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Sep. 30, 2022
Intangible Assets
Gross Carrying Amount	$ 24,670	$ 24,681
Accumulated Amortization	(11,372)	(8,447)
Net Carrying Amount	13,298	16,234
Contract intangibles
Intangible Assets
Gross Carrying Amount	17,000	17,000
Accumulated Amortization	(5,479)	(3,789)
Net Carrying Amount	$ 11,521	13,211
Contract intangibles \| Minimum
Intangible Assets
Useful Life (in years)	6 years
Contract intangibles \| Maximum
Intangible Assets
Useful Life (in years)	8 years
Technology
Intangible Assets
Gross Carrying Amount	$ 5,300	5,300
Accumulated Amortization	(4,145)	(3,089)
Net Carrying Amount	$ 1,155	2,211
Technology \| Minimum
Intangible Assets
Useful Life (in years)	3 years
Technology \| Maximum
Intangible Assets
Useful Life (in years)	5 years
Patent and trademarks
Intangible Assets
Gross Carrying Amount	$ 2,370	2,381
Accumulated Amortization	(1,748)	(1,569)
Net Carrying Amount	$ 622	$ 812
Patent and trademarks \| Minimum
Intangible Assets
Useful Life (in years)	7 years
Patent and trademarks \| Maximum
Intangible Assets
Useful Life (in years)	10 years

Stockholders' Equity (Tables)

9 Months Ended

Jun. 30, 2023

Equity [Abstract]

Schedule of stockholders' equity

The changes in stockholders’ equity for the prior year comparable period are as follows:


						Additional									Accumulated Other
	Common Stock					Paid-in			Treasury Stock						Comprehensive			Retained
	Shares			Amount		Capital			Shares			Amount			Loss			Earnings			Total
Balance at September 30, 2021		35,457,095		$	35	$	252,017			(2,222,083	)	$	(36,628	)	$	(9,011	)	$	(71,398	)	$	135,015
Net income		—			—		—			—			—			—			3,602			3,602
Exercise of stock options, grants of restricted stock awards, and vesting of restricted stock units		131,070			1		—			—			—			—			—			1
Taxes paid associated with net settlement of stock compensation awards		(40,239	)		—		(851	)		—			—			—			—			(851	)
Forfeitures of restricted stock awards		(14,855	)		—		—			—			—			—			—			—
Common stock repurchased		—			—		—			(147,185	)		(2,963	)		—			—			(2,963	)
Common stock surrendered in the exercise of stock options		—			—		100			(4,678	)		(100	)		—			—			—
Stock compensation expense		—			—		2,270			—			—			—			—			2,270
Foreign currency translation and other		—			—		—			—			—			(131	)		136			5
Balance at December 31, 2021		35,533,071		$	36	$	253,536			(2,373,946	)	$	(39,691	)	$	(9,142	)	$	(67,660	)	$	137,079
Net income		—			—		—			—			—			—			11,970			11,970
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units		320,943			—		—			—			—			—			—			—
Taxes paid associated with net settlement of stock compensation awards		(47,124	)		—		(958	)		—			—			—			—			(958	)
Common stock repurchased		—			—		—			(1,011,881	)		(17,035	)		—			—			(17,035	)
Stock compensation expense		—			—		2,102			—			—			—			—			2,102
Forfeiture of restricted stock awards		(242,902	)		—		—			—			—			—			—			—
Foreign currency translation		—			—		—			—			—			(169	)		—			(169	)
Balance at March 31, 2022		35,563,988		$	36	$	254,680			(3,385,827	)	$	(56,726	)	$	(9,311	)	$	(55,690	)	$	132,989
Net income		—			—		—			—			—			—			16,408			16,408
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units		18,373			—		—			—			—			—			—			—
Taxes paid associated with net settlement of stock compensation awards		(5,907	)		—		(92	)		—			—			—			—			(92	)
Common stock repurchased		—			—		—			(408,211	)		(5,450	)		—			—			(5,450	)
Stock compensation expense		—			—		1,984			—			—			—			—			1,984
Foreign currency translation		—			—		—			—			—			(1,170	)		—			(1,170	)
Balance at June 30, 2022		35,576,454		$	36	$	256,572			(3,794,038	)	$	(62,176	)	$	(10,481	)	$	(39,282	)	$	144,669

Summary of share-based compensation expense

The table below presents the components of share-based compensation expense (in thousands):


	Three Months Ended June 30,					Nine Months Ended June 30,
	2023		2022			2023			2022
Equity-classified awards:
Stock options	$	524	$	505		$	1,524		$	2,097
RSUs & RSAs		1,671		1,478			4,737			4,259
Total Equity-classified award		2,195		1,983			6,261			6,356
Liability-classified awards:
SARs		—		(99	)		(45	)		(200	)
Total stock compensation expense:	$	2,195	$	1,884		$	6,216		$	6,156

The table below presents the components of share-based compensation expense by line item within our Condensed Consolidated Statements of Operations (in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Stock-compensation expense by function
Technology and operations	$	356	$	321	$	948	$	906
Sales and marketing		612		464	$	1,780		1,496
General and administrative		1,227		1,099	$	3,488		3,754
Total stock compensation expense:	$	2,195	$	1,884	$	6,216	$	6,156

Summary of stock options and restricted stock granted

The following table presents stock option and RSUs & RSAs grant activity:


	Nine Months Ended June 30, 2023
Stock Options granted:
Options containing only service conditions:		178,048
Weighted average exercise price	$	14.43
Weighted average grant date fair value	$	7.50

Options containing performance conditions:		175,910
Weighted average exercise price	$	14.42
Weighted average grant date fair value	$	7.48

RSUs & RSAs granted:
RSUs & RSAs containing only service conditions:		472,813
Weighted average grant date fair value	$	15.14

RSUs & RSAs containing performance conditions:		288,420
Weighted average grant date fair value	$	15.15

Schedule of share-based payment award, stock options, valuation assumptions

The range of assumptions used to determine the fair value of stock options using the Black-Scholes option-pricing model during the nine months ended June 30, 2023, were as follows:


	Nine Months Ended
	June 30, 2023
Dividend yield		—
Expected volatility	56.87% - 62.16%
Risk-free interest rate	3.39% - 3.88%
Expected term	4.5 - 7.6 years

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Cash paid for amounts included in operating lease liabilities	$ 3,598	$ 3,190
Cash paid for amounts included in finance lease liabilities	75	75
Non-cash: lease liabilities arising from new operating lease assets obtained	0	4,664
Non-cash: lease liabilities arising from new finance lease assets obtained	0	179
Non-cash: adjustments to lease assets and liabilities	$ 408	$ (196)

Income Taxes

9 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

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 pre-tax income in the first nine months of fiscal year 2023 and its corresponding effective tax rate is 26.4% compared to 11.7% for the first nine months of fiscal year 2022. The change in the effective tax rate for the nine months ended June 30, 2023, as compared to the same period in the prior year was primarily due to state and foreign taxes, the utilization of net operating losses, and the inclusion of the $20.0 million non-cash gain from the fair-market value adjustment of the Bid4Assets acquisition earn-out liability recorded in the nine months ended June 30, 2022. The effective tax rate differed from the U.S. statutory federal rate of 21% primarily as a result of the impact of foreign, state, and local income taxes and permanent tax adjustments.

The Inflation Reduction Act (IRA) was enacted on August 16, 2022. The IRA includes provisions imposing a 1% excise tax on share repurchases that occur after December 31, 2022, and introduces a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income. The CAMT will be effective for us beginning in fiscal year 2024. We currently are not expecting the IRA to have a material adverse impact on our financial statements.

The Company applies the authoritative guidance related to uncertainty in income taxes. ASC 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. During the nine months ended June 30, 2023, the Company recorded a benefit of $0.1 million due to the reduction of unrecognized tax benefits related to foreign operations. 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 June 30, 2023, the Company has no open income tax examinations in the U.S. and the statute of limitations for years prior to 2019 is now closed. However, certain tax attribute carryforwards that were generated prior to fiscal year 2019 may be adjusted upon examination by tax authorities if they are utilized.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022
Goodwill
Balance at the beginning of the period	$ 88,910	$ 59,872
Bid4Assets acquisition		30,083
Translation adjustments	706	(1,045)
Balance at the end of the period	89,616	88,910
CAG Goodwill
Goodwill
Balance at the beginning of the period	20,538	21,583
Bid4Assets acquisition		0
Translation adjustments	706	(1,045)
Balance at the end of the period	21,244	20,538
GovDeals Goodwil
Goodwill
Balance at the beginning of the period	53,814	23,731
Bid4Assets acquisition		30,083
Translation adjustments	0	0
Balance at the end of the period	53,814	53,814
Machinio
Goodwill
Balance at the beginning of the period	14,558	14,558
Bid4Assets acquisition		0
Translation adjustments	0	0
Balance at the end of the period	$ 14,558	$ 14,558

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Bid4Assets Acquisition -Allocation of the Purchase Price to the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Nov. 01, 2021	Jun. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Business Acquisition [Line Items]
Goodwill	$ 30,100	$ 89,616	$ 88,910	$ 59,872
Bid4Assets
Business Acquisition [Line Items]
Cash and cash equivalents	3,576
Intangible assets	16,500
Other assets	346
Total assets acquired	20,422
Payable to sellers	3,715
Operating lease liabilities	204
Deferred tax liability	3,847
Total liabilities assumed	7,766
Net identifiable assets acquired	12,656
Goodwill	30,083
Total consideration transferred	$ 42,739

Summary of Significant Accounting Policies Unaudited Interim Financial Information	9 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies Unaudited Interim Financial Information	2. Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC). 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, and intercompany transactions and accounts have been eliminated in consolidation. The information disclosed in the notes to the condensed consolidated financial statements for these periods is unaudited. Operating results for the three and nine months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending September 30, 2023, or for any future period. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts in the condensed consolidated financial statements and accompanying notes. For the three and nine months ended June 30, 2023, these estimates required the Company to make assumptions about the impact of the ongoing Russia-Ukraine conflict, increasing tensions between the United States and China, and other disruptions to macroeconomic conditions and, in turn, the Company's results of operations. The Company will continue to update its assumptions as conditions change. Actual results could differ significantly from those estimates. Contract Assets and Liabilities Contract assets reflect an estimate of expenses that will be reimbursed upon settlement with a seller. The contract asset balance was $1.2 million as of June 30, 2023, and $0.9 million as of September 30, 2022, and is included in the line item Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. Contract liabilities reflect obligations to provide services for which the Company has already received consideration, and generally arise from up-front payments received in connection with Machinio's subscription services. The contract liability balance was $4.7 million as of June 30, 2023, and $4.4 million as of September 30, 2022, and is included in the line item Deferred revenue on the Condensed Consolidated Balance Sheets. Of the September 30, 2022, contract liability balance, $4.2 million was earned as other fee revenue during the nine months ended June 30, 2023. For the Company's Machinio segment, the performance obligation has been identified as the stand ready obligation to provide access to the Machinio subscription services, which it satisfies over time and recognizes as other fee revenues in the line item Consignment and other fee revenues on the Condensed Consolidated Statements of Operations. As of June 30, 2023, the Machinio segment had a remaining performance obligation of $4.7 million; the Company expects to recognize the substantial majority of that amount as other fee revenues over the next 12 months. Contract Costs Contract costs relate to sales commissions paid on subscription contracts that are capitalized within our Machinio segment. Contract costs are amortized over the expected life of the customer contract. The contract cost balance was $2.1 million as of June 30, 2023, and $1.8 million as of September 30, 2022, and is included in the line item Prepaid expenses and other current assets, and Other assets on the Condensed Consolidated Balance Sheets. Amortization expense was $0.3 million and $0.9 million during the three and nine months ended June 30, 2023, and $0.3 million and $0.8 million during the three and nine months ended June 30, 2022. Treasury Stock Treasury stock is presented at cost, including any applicable excise taxes, commissions and fees, as a reduction of stockholders’ equity in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of Stockholders' Equity. Treasury stock held by us may be retired or reissued in the future. Risk Associated with Certain Concentrations For the majority of buyers that receive goods before payment to the Company is made, credit evaluations are performed. However, for the remaining buyers, goods are not shipped before payment is made, and as a result the Company is not subject to significant collection risk from those buyers. 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 and cash equivalents on the Condensed Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, through Accounts payable after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks within non-interest bearing, interest-bearing, and earnings allowance checking accounts, as well as cash equivalent money market funds, all of which exceed the applicable U.S. federal (FDIC and/or SIPC) and local jurisdiction (foreign banking institutions) insurance limits, and Accounts receivable. The recent disruptions in the financial services industry have created significant market challenges and uncertainty for entities that bank with those institutions, and which raised significant concern regarding the stability of the banking system in the United States. The Company did not maintain any funds or lending relationships with any of the banks impacted and the banks we do maintain accounts and relationships with have, to date, not experienced any significant disruptions. The Company deposits its cash in interest bearing checking accounts, acquires cash equivalent money market funds, and holds short-term investments designated as held-to-maturity investment securities, each with financial institutions that the Company considers to be of high credit quality. Management continually monitors the financial institutions with whom we conduct business and responds appropriately, when necessary, to manage potential risk exposure to our cash balances above the insurance limits. We have multiple vendor contracts with Amazon.com, Inc. under which we acquire and sell commercial merchandise. While purchase model transactions account for less than 20% of our total GMV, the cost of inventory for purchase model transactions is the most significant component of our consolidated Costs of goods sold. $6.0 million and $8.1 million of inventory purchased under such contracts with Amazon.com, Inc. are included in our Consolidated Inventory balances as of June 30, 2023, and September 30, 2022, respectively. Our vendor contracts with respect to sourcing or consigning merchandise for our RSCG segment generally reflect the concentration dynamics inherent to the retail industry. Recent Accounting Pronouncements Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), or Accounting Standards Codification (ASC) 326. ASC 326, including all amendments and related guidance, was designed to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit. ASC 326 will require estimation of expected credit losses using a methodology that takes into consideration a broad range of reasonable and supportable information. The guidance will be effective for the Company beginning on October 1, 2023, and will be applied on a modified-retrospective basis, with any cumulative-effect adjustment recorded to retained earnings on the adoption date. The Company is in the process of evaluating the impact ASC 326 will have on its condensed consolidated financial statements and expects to estimate credit losses on its financial assets such as its accounts receivable, cash equivalent money market funds, and short-term investments. While the Company has not experienced significant credit losses historically, the materiality of the impact of adoption will depend on events and conditions as of the date of adoption, which cannot be determined conclusively at this time.

Segment Information

9 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

14.

Segment Information

The Company provides operating results in four reportable segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Asset Group (CAG), and Machinio. Descriptions of our reportable segments are as follows:

•

The GovDeals reportable segment provides self-directed service solutions that enable federal, state, and local government entities including city, county and state agencies located in the United States and Canada, to sell surplus, salvage and real estate assets through the GovDeals and Bid4Assets 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. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce services. This segment uses the Liquidation.com, Secondipity and AllSurplus marketplaces.

•

The CAG reportable segment provides managed and self-directed service solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus and idle assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. Commercial seller assets are located across the Americas, Europe, Australia, Asia, and Africa. This segment uses the AllSurplus, GoIndustry DoveBid, and GovDeals marketplaces.

•

The Machinio reportable segment operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Machinio also offers the Machinio System service that provides equipment sellers with a set of online marketing tools that includes website hosting, email marketing, and inventory management.

We also report results for Corporate & Other, including elimination adjustments.

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 reportable 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 this assessment, the CODM uses direct profit to evaluate the performance of each segment. Segment direct profit, previously referred to as segment gross profit, continues to be calculated as total revenue less cost of goods sold (excluding depreciation and amortization).

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


		Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)		2023			2022			2023			2022
GovDeals:
	Purchase revenue	$	—		$	—		$	—		$	—
	Consignment and other fee revenues		17,270			16,587			45,956			45,130
	Total revenue		17,270			16,587			45,956			45,130
	Segment direct profit	$	16,389		$	15,765		$	43,572		$	42,913

RSCG:
	Purchase revenue	$	41,439		$	33,788		$	121,651		$	99,838
	Consignment and other fee revenues		9,532			8,586			29,006			23,045
	Total revenue		50,971			42,374			150,657			122,883
	Segment direct profit	$	17,876		$	15,942		$	50,562		$	46,818

CAG:
	Purchase revenue	$	1,370		$	1,719		$	7,064		$	9,271
	Consignment and other fee revenues		7,615			6,077			20,731			18,725
	Total revenue		8,985			7,796			27,795			27,996
	Segment direct profit	$	7,938		$	6,271		$	23,466		$	21,076

Machinio:
	Purchase revenue	$	—		$	—		$	—		$	—
	Consignment and other fee revenues		3,559			3,124			10,144			8,883
	Total revenue		3,559			3,124			10,144			8,883
	Segment direct profit	$	3,381		$	2,971		$	9,611		$	8,424

Corporate & Other, including elimination adjustments:
	Purchase revenue	$	—		$	—		$	—		$	—
	Consignment and other fee revenues		(16	)		(15	)		(47	)		(44	)
	Total revenue		(16	)		(15	)		(47	)		(44	)
	Segment direct profit	$	(16	)	$	(15	)	$	(47	)	$	(44	)

Consolidated:
	Purchase revenue	$	42,809		$	35,507		$	128,715		$	109,109
	Consignment and other fee revenues		37,961			34,359			105,790			95,739
	Total revenue		80,770			69,866			234,505			204,848
	Total Segment direct profit	$	45,568		$	40,934		$	127,165		$	119,186

The following table reconciles segment direct profit used in the reportable segments to the Company's consolidated results:


	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)	2023			2022			2023			2022
Reconciliation:
Total segment direct profit	$	45,568		$	40,934		$	127,165		$	119,186
Other costs and expenses from operations (1)	$	37,315			33,712			108,811			103,008
Fair value adjustment of acquisition earn-outs	$	—			(11,500	)		—			(20,000	)
Interest and other (income) expense, net	$	(777	)		131			(1,609	)		(55	)
Income before provision for income taxes	$	9,030		$	18,591		$	19,963		$	36,233

(1)

The percent of our revenues that came from transactions conducted outside of the United States for the three months ended June 30, 2023 and 2022, was 8.8% and 11.9%, respectively. The percent of our revenues that came from transactions conducted outside of the United States for the nine months ended June 30, 2023 and 2022, was 10.4% and 13.6%, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Bid4Assets Acquisition Narrative (Details) - USD ($)		3 Months Ended	12 Months Ended
Bid4Assets Acquisition Narrative (Details) - USD ($)	Nov. 01, 2021	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2023	Sep. 30, 2021
Business Acquisition [Line Items]
Goodwill	$ 30,100,000		$ 88,910,000	$ 89,616,000	$ 59,872,000
Bid4Assets
Business Acquisition [Line Items]
Total consideration transferred	42,739,000
Purchase price, net	14,700,000
Business combination, consideration transferred, other	300,000
Business combination, earn out consideration in cash	37,500,000
Goodwill	30,083,000
Level 3 \| Recurring basis
Business Acquisition [Line Items]
Earn-out from business acquisition	28,000,000.0
Fair value, measurement with unobservable inputs reconciliations, recurring basis, liability value		$ 0	0
Level 3 \| Recurring basis \| Bid4Assets
Business Acquisition [Line Items]
Earn-out from business acquisition	$ 28,000,000.0	$ 3,500,000	$ 28,000,000.0

Defined Benefit Pension Plan

9 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Defined Benefit Pension Plan

12.

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 Scheme), a qualified defined benefit pension plan. The Company guarantees GoIndustry's performance on all present and future obligations to make payments to the Scheme for up to a maximum of £10 million British pounds. The Scheme was closed to new members on January 1, 2002.


	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands)	2023			2022			2023			2022
Interest cost	$	203		$	122		$	594		$	384
Expected return on plan assets		(224	)		(219	)	$	(653	)		(686	)
Amortization of prior service cost		7			5		$	20			15
Total net periodic (benefit)	$	(14	)	$	(92	)	$	(39	)	$	(287	)

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI https://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

+ Details

Goodwill (Tables)

9 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of goodwill activity

The carrying value and changes in the carrying value of goodwill attributable to each reportable segment were as follows:


(in thousands)	GovDeals		CAG			Machinio		Total
September 30, 2021	$	23,731	$	21,583		$	14,558	$	59,872
Addition: Bid4Assets acquisition		30,083		—			—		30,083
Translation adjustments		—		(1,045	)		—		(1,045	)
September 30, 2022		53,814		20,538			14,558		88,910
Translation adjustments		—		706			—		706
June 30, 2023	$	53,814	$	21,244		$	14,558	$	89,616

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 6,487	$ 16,408	$ 14,698	$ 31,979
Other comprehensive income (loss):
Foreign currency translation	645	(1,170)	2,161	(1,470)
Other comprehensive income (loss), net of taxes	645	(1,170)	2,161	(1,470)
Comprehensive income	$ 7,132	$ 15,238	$ 16,859	$ 30,509

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22595-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 50
-Paragraph 6
-URI https://asc.fasb.org/extlink&oid=124431353&loc=SL124452729-227067

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI https://asc.fasb.org/extlink&oid=126954810&loc=d3e3602-108585

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 17: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126958026&loc=SL5780133-109256

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22658-107794

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669619-108580

Reference 25: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22694-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

Leases (Tables)

9 Months Ended

Jun. 30, 2023

Leases [Abstract]

Summary of lease expense and supplemental cash flow information

The components of lease expense are:


	Three Months Ended June 30,						Nine Months Ended June 30,
	2023			2022			2023			2022
Finance lease – lease asset amortization	$	20		$	19		$	59		$	61
Finance lease – interest on lease liabilities		4			5			12			15
Operating lease cost		1,327			1,406			4,011			4,318
Short-term lease cost		78			101			348			218
Variable lease cost (1)		199			405			948			958
Sublease income		(27	)		(22	)		(78	)		(90	)
Total net lease cost	$	1,601		$	1,914		$	5,300		$	5,480

(1)

Supplemental disclosures of cash flow information related to leases are:


	Nine Months Ended June 30,
	2023		2022
Cash paid for amounts included in operating lease liabilities	$	3,598	$	3,190
Cash paid for amounts included in finance lease liabilities	$	75	$	75
Non-cash: lease liabilities arising from new operating lease assets obtained	$	—	$	4,664
Non-cash: lease liabilities arising from new finance lease assets obtained	$	—	$	179
Non-cash: adjustments to lease assets and liabilities(1)	$	408	$	(196	)

(1)

These include adjustments due to lease modifications, renewals, and other related adjustments.

Maturities of Lease Liabilities

Maturities of lease liabilities are:


	June 30, 2023
	Operating Leases			Finance Leases
Remainder of 2023	$	1,303		$	29
2024		4,503			97
2025		3,682			68
2026		2,235			65
2027		420			12
Thereafter		—			—
Total lease payments (1)	$	12,143		$	271
Less: imputed interest (2)		(978	)		(21	)
Total lease liabilities	$	11,165		$	250

(1)

The weighted average remaining lease term is 2.8 years for operating leases and 3.0 years for finance leases.

(2)

The weighted average discount rate is 6.2 % for operating leases and 5.6 % for finance leases.

Cover Page - shares	9 Months Ended
Cover Page - shares	Jun. 30, 2023	Aug. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	0-51813
Entity Registrant Name	LIQUIDITY SERVICES, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2209244
Entity Address, Address Line One	6931 Arlington Road
Entity Address, Address Line Two	Suite 460
Entity Address, City or Town	Bethesda
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20814
City Area Code	202
Local Phone Number	467-6868
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	LQDT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,691,148
Entity Central Index Key	0001235468
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 555	$ 449
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)	36,115,562	35,724,057
Common stock, shares outstanding (in shares)	36,115,562	35,724,057
Treasury Stock, Common, Shares	5,432,546	3,813,199

Summary of Significant Accounting Policies Unaudited Interim Financial Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Business Acquisition [Line Items]
Contract asset	$ 1.2		$ 1.2		$ 0.9
Contract liability	4.7		4.7		4.4
Contract liability recognized as revenue			4.2
Capitalized contract cost, amortization	0.3	$ 0.3	$ 0.9	$ 0.8
Percentage purchase model transactions			20.00%
Purchase of inventory	6.0		$ 6.0		8.1
Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Contract costs	$ 2.1		$ 2.1		$ 1.8

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Contingency [Line Items]
Effective tax rate			26.40%	11.70%
Effective tax rate statutory federal rate			21.00%
Excise tax on share repurchases	1.00%		1.00%
Decrease in unrecognized tax benefits related to foreign operations			$ 100
Corporate alternative minimum tax rate			15.00%
Fair value adjustment of acquisition earn-outs	$ (0)	$ (11,500)	$ (0)	$ (20,000)
Bid4Assets
Income Tax Contingency [Line Items]
Fair value adjustment of acquisition earn-outs				$ 20,000

Stockholders' Equity - Stock Based Compensation Expense by Function (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	$ 2,195	$ 1,884	$ 6,216	$ 6,156
Technology and operations
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	356	321	948	906
Sales and marketing
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	612	464	1,780	1,496
General and administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	$ 1,227	$ 1,099	$ 3,488	$ 3,754

Stockholders' Equity

9 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholders' Equity

10.

Stockholders’ Equity

The changes in stockholders’ equity for the prior year comparable period are as follows:


						Additional									Accumulated Other
	Common Stock					Paid-in			Treasury Stock						Comprehensive			Retained
	Shares			Amount		Capital			Shares			Amount			Loss			Earnings			Total
Balance at September 30, 2021		35,457,095		$	35	$	252,017			(2,222,083	)	$	(36,628	)	$	(9,011	)	$	(71,398	)	$	135,015
Net income		—			—		—			—			—			—			3,602			3,602
Exercise of stock options, grants of restricted stock awards, and vesting of restricted stock units		131,070			1		—			—			—			—			—			1
Taxes paid associated with net settlement of stock compensation awards		(40,239	)		—		(851	)		—			—			—			—			(851	)
Forfeitures of restricted stock awards		(14,855	)		—		—			—			—			—			—			—
Common stock repurchased		—			—		—			(147,185	)		(2,963	)		—			—			(2,963	)
Common stock surrendered in the exercise of stock options		—			—		100			(4,678	)		(100	)		—			—			—
Stock compensation expense		—			—		2,270			—			—			—			—			2,270
Foreign currency translation and other		—			—		—			—			—			(131	)		136			5
Balance at December 31, 2021		35,533,071		$	36	$	253,536			(2,373,946	)	$	(39,691	)	$	(9,142	)	$	(67,660	)	$	137,079
Net income		—			—		—			—			—			—			11,970			11,970
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units		320,943			—		—			—			—			—			—			—
Taxes paid associated with net settlement of stock compensation awards		(47,124	)		—		(958	)		—			—			—			—			(958	)
Common stock repurchased		—			—		—			(1,011,881	)		(17,035	)		—			—			(17,035	)
Stock compensation expense		—			—		2,102			—			—			—			—			2,102
Forfeiture of restricted stock awards		(242,902	)		—		—			—			—			—			—			—
Foreign currency translation		—			—		—			—			—			(169	)		—			(169	)
Balance at March 31, 2022		35,563,988		$	36	$	254,680			(3,385,827	)	$	(56,726	)	$	(9,311	)	$	(55,690	)	$	132,989
Net income		—			—		—			—			—			—			16,408			16,408
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units		18,373			—		—			—			—			—			—			—
Taxes paid associated with net settlement of stock compensation awards		(5,907	)		—		(92	)		—			—			—			—			(92	)
Common stock repurchased		—			—		—			(408,211	)		(5,450	)		—			—			(5,450	)
Stock compensation expense		—			—		1,984			—			—			—			—			1,984
Foreign currency translation		—			—		—			—			—			(1,170	)		—			(1,170	)
Balance at June 30, 2022		35,576,454		$	36	$	256,572			(3,794,038	)	$	(62,176	)	$	(10,481	)	$	(39,282	)	$	144,669

Stock Compensation Incentive Plans

The Company has several incentive plans under which stock options, restricted stock units (RSUs), restricted stock awards (RSAs), and cash-settled stock appreciation rights (SARs) have been issued, including the Third Amended and Restated 2006 Omnibus Long-Term Incentive Plan, as amended (LTIP), and a plan and private placement issuances related to the Company’s acquisition of Machinio and Bid4Assets. As of June 30, 2023, the Company has reserved a total of 20,300,000 shares of its common stock for exercises of stock options, vesting of RSUs, and grants of RSAs under these plans. Vesting of RSUs and grants of RSAs count as 1.5x shares against the plan reserves. As of June 30, 2023, 972,696 shares of common stock remained available for use under the LTIP.

Stock Compensation Expense

The table below presents the components of share-based compensation expense (in thousands):


	Three Months Ended June 30,					Nine Months Ended June 30,
	2023		2022			2023			2022
Equity-classified awards:
Stock options	$	524	$	505		$	1,524		$	2,097
RSUs & RSAs		1,671		1,478			4,737			4,259
Total Equity-classified award		2,195		1,983			6,261			6,356
Liability-classified awards:
SARs		—		(99	)		(45	)		(200	)
Total stock compensation expense:	$	2,195	$	1,884		$	6,216		$	6,156

The table below presents the components of share-based compensation expense by line item within our Condensed Consolidated Statements of Operations (in thousands):


	Three Months Ended June 30,				Nine Months Ended June 30,
	2023		2022		2023		2022
Stock-compensation expense by function
Technology and operations	$	356	$	321	$	948	$	906
Sales and marketing		612		464	$	1,780		1,496
General and administrative		1,227		1,099	$	3,488		3,754
Total stock compensation expense:	$	2,195	$	1,884	$	6,216	$	6,156

Stock Options and RSUs & RSAs

The following table presents stock option and RSUs & RSAs grant activity:


	Nine Months Ended June 30, 2023
Stock Options granted:
Options containing only service conditions:		178,048
Weighted average exercise price	$	14.43
Weighted average grant date fair value	$	7.50

Options containing performance conditions:		175,910
Weighted average exercise price	$	14.42
Weighted average grant date fair value	$	7.48

RSUs & RSAs granted:
RSUs & RSAs containing only service conditions:		472,813
Weighted average grant date fair value	$	15.14

RSUs & RSAs containing performance conditions:		288,420
Weighted average grant date fair value	$	15.15

The stock options and RSUs & RSAs containing only service conditions will vest over a four-year service period. The stock options and RSUs & RSAs containing performance conditions will vest upon the achievement of specified financial targets of the Company, a segment, or a division of a segment. Vesting is measured the first day of each fiscal quarter over the three-year terms of the awards, starting with the first fiscal quarter after the first anniversary of the grant date.

The range of assumptions used to determine the fair value of stock options using the Black-Scholes option-pricing model during the nine months ended June 30, 2023, were as follows:


	Nine Months Ended
	June 30, 2023
Dividend yield		—
Expected volatility	56.87% - 62.16%
Risk-free interest rate	3.39% - 3.88%
Expected term	4.5 - 7.6 years

SARs

During the nine months ended June 30, 2023, the Company did not issue any SARs, while 24,150 SARs were exercised requiring the Company to make cash payments of $0.2 million. As of June 30, 2023, there were no SARs outstanding.

Share Repurchase Program

From time to time, we may be authorized to repurchase issued and outstanding shares of our common stock under a share repurchase program approved by our 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 our available cash.

As of September 30, 2022, the Company had $6.6 million of remaining share repurchase authorization.

On December 6, 2022, and March 13, 2023, the Company's Board of Directors authorized new stock repurchase plans of up to $8.4 million and $8.0 million, respectively.

The Company repurchased 1,607,132 shares for $21.2 million during the nine months ended June 30, 2023. As of June 30, 2023, the Company had $1.8 million of remaining authorization to repurchase shares through December 31, 2025.

Other Share Repurchases

Separate from the share repurchase program, our stock incentive plans allow for participants to exercise stock options by surrendering shares of common stock equivalent in value to the exercise price due. Any shares surrendered to the Company in this manner are not available for future grant.

During the nine months ended June 30, 2023 and 2022, participants surrendered 12,215 and 4,678 shares of common stock, respectively, in the exercise of stock options. Any shares surrendered to the Company in this manner are not available for future grant.