0000950170-24-012585 | 10-Q | XBRL Viewer

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Subsequent Events - Narrative (Details) $ in Millions	Jan. 01, 2024 USD ($)
Subsequent Event \| Sierra
Subsequent Event [Line Items]
Issued and outstanding equity securities, acquired	$ 13.5

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Operating Leases
Remainder of 2023	$ 3,436
2024	4,067
2025	560
2026	2,418
2027	144
Thereafter	49
Total lease payments	10,674
Less: imputed interest	(792)
Total lease liabilities	9,882
Finance Leases
Remainder of 2023	67
2024	68
2025	65
2026	12
2027	0
Thereafter	0
Total lease payments	213
Less: imputed interest	(15)
Total lease liabilities	$ 198
Operating lease, liability, statement of financial position	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Finance lease, liability, statement of financial position	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent

Fair Value Measurement

3 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement

10.

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 $42.9 million and $51.4 million of money market funds considered cash equivalents at December 31, 2023, and September 30, 2023, respectively. These assets were measured at fair value as of December 31, 2023, and September 30, 2023, and were classified as Level 1 assets within the fair value hierarchy. There were no transfers between levels during the periods presented.

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 December 31, 2023, the Company had no non-financial instruments measured at fair value on a non-recurring basis. As of December 31, 2023, and September 30, 2023, 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

Segment Information - Reconciliation from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting [Abstract]
Total segment gross profit	$ 39,798	$ 40,509
Other costs and expenses from operations	37,707	35,643
Interest and other income, net	(697)	(249)
Income before provision for income taxes	$ 2,788	$ 5,116

- Definition

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

+ References

+ 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
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+ Details

Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Goodwill
Balance at the beginning of the period	$ 89,388	$ 88,910
Translation adjustments	239	478
Balance at the end of the period	89,627	89,388
GovDeals Goodwil
Goodwill
Balance at the beginning of the period	53,814	53,814
Translation adjustments	0	0
Balance at the end of the period	53,814	53,814
CAG Goodwill
Goodwill
Balance at the beginning of the period	21,016	20,538
Translation adjustments	239	478
Balance at the end of the period	21,255	21,016
Machinio
Goodwill
Balance at the beginning of the period	14,558	14,558
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

Defined Benefit Pension Plan	3 Months Ended
Defined Benefit Pension Plan	Dec. 31, 2023
Retirement Benefits [Abstract]
Defined Benefit Pension Plan	11. 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. The net periodic pension (benefit) cost is recognized within Interest and other income, net in the Condensed Consolidated Statements of Operations, and was immaterial for the three months ended December 31, 2023 and 2022.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Goodwill (Tables)

3 Months Ended

Dec. 31, 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, 2022	$	53,814	$	20,538	$	14,558	$	88,910
Translation adjustments		—		478		—		478
September 30, 2023		53,814		21,016		14,558		89,388
Translation adjustments		—		239		—		239
December 31, 2023	$	53,814	$	21,255	$	14,558	$	89,627

- Definition

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

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+ Details

Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares available for issuance	20,300,000
Remaining shares reserved for issuance	66,635
Shares and options vesting period	3 years
Common stock repurchases	$ 1,171	$ 7,199
Remaining repurchase amount	$ 15,800		$ 17,000
Common stock surrendered in the exercise of stock options (in shares)	0	0
December 2022 Repurchase Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares repurchased	68,692
Common stock repurchases	$ 1,200
Stock Option - Service Based
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares and options vesting period	4 years

Intangible Assets - Future Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Future expected amortization of intangible assets
Remainder of 2024	$ 2,408
2025	1,768
2026	2,013
2027	1,761
2028 and thereafter	3,662
Net Carrying Amount	$ 11,612	$ 12,457

Stockholders' Equity - Stock Based Compensation Expense by Function (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	$ 2,249	$ 2,081
Technology and operations
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	330	256
Sales and marketing
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	638	508
General and administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock compensation expense	$ 1,281	$ 1,317

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating activities
Net income	$ 1,907	$ 3,967
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,904	2,764
Stock compensation expense	2,249	2,081
Provision for doubtful accounts	101	15
Deferred tax expense	612	1,181
Gain on disposal of property and equipment	(14)	(45)
Changes in operating assets and liabilities:
Accounts receivable	64	3,954
Inventory	(3,266)	(4,680)
Prepaid taxes and tax refund receivable	358	(202)
Prepaid expenses and other assets	40	(999)
Operating lease assets and liabilities	(10)	(65)
Accounts payable	(6,757)	(10,416)
Accrued expenses and other current liabilities	(6,422)	(1,744)
Deferred revenue	(227)	(417)
Payables to sellers	(412)	(5,935)
Other liabilities	0	(120)
Net cash used in operating activities	(8,873)	(10,659)
Investing activities
Purchases of property and equipment, including capitalized software	(1,731)	(1,212)
Purchase of short-term investments	(2,369)	(1,847)
Maturities of short-term investments	1,986	0
Other investing activities, net	31	44
Net cash used in investing activities	(2,083)	(3,015)
Financing activities
Common stock repurchases	(1,168)	(7,199)
Taxes paid associated with net settlement of stock compensation awards	(225)	(244)
Payments of the principal portion of finance lease liabilities	(26)	(25)
Proceeds from exercise of stock options, net of tax	127	496
Net cash used in financing activities	(1,292)	(6,972)
Effect of exchange rate differences on cash and cash equivalents	524	690
Net decrease in cash and cash equivalents	(11,724)	(19,956)
Cash and cash equivalents at beginning of period	110,281	96,122
Cash and cash equivalents at end of period	98,557	76,166
Supplemental disclosure of cash flow information
Cash (received) paid for income taxes, net	$ (117)	$ 159

Stockholders' Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Increase (Decrease) in Stockholders' Equity
Balance (in shares)	36,142,346
Balance	$ 161,533	$ 154,536
Balance (in shares)	5,433,045
Net income	$ 1,907	3,967
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	127	495
Taxes paid associated with net settlement of stock compensation awards	(224)	(244)
Common stock repurchased	(1,171)	(7,199)
Stock compensation expense	$ 2,249	2,126
Foreign currency translation and other		1,273
Balance (in shares)	36,189,758
Balance	$ 165,379	$ 154,953
Balance (in shares)	5,501,737
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance (in shares)	36,142,345	35,724,057
Balance	$ 36	$ 36
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)	59,471	190,119
Taxes paid associated with net settlement of stock compensation awards (in shares)	(12,058)	(14,536)
Balance (in shares)	36,189,758	35,899,640
Balance	$ 36	$ 36
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Balance	265,945	258,275
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	127	495
Taxes paid associated with net settlement of stock compensation awards	(224)	(244)
Stock compensation expense	2,249	2,126
Balance	268,096	$ 260,653
Treasury Stock
Increase (Decrease) in Stockholders' Equity
Balance	$ (84,031)
Balance (in shares)	(5,433,045)	(3,813,199)
Balance		$ (62,554)
Common stock repurchased (in shares)	(68,692)	(531,819)
Common stock repurchased	$ (1,171)	$ (7,199)
Balance	$ (85,202)
Balance (in shares)	(5,501,737)	(4,345,018)
Balance		$ (69,754)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance	$ (10,458)	(10,285)
Foreign currency translation and other		1,273
Balance	(9,500)	(9,012)
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity
Balance	(9,958)	(30,936)
Net income	1,907	3,967
Balance	$ (8,051)	$ (26,970)

Debt

3 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Debt

On February 10, 2022, the Company entered into a Credit Agreement with Wells Fargo Bank, National Association (the Credit Agreement). Terms of the Credit Agreement provide for revolving loans (the 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 the year ended September 30, 2023, the Credit Agreement was amended to extend the maturity date by 12 months to March 31, 2025 (the First Amendment). No other changes, including regarding the borrowing terms of capacities, were made to the Credit Agreement 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 Line of Credit Fee, are included within Interest and other income, 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 affirmative and restrictive covenants including covenants placing limitations on mergers, consolidations and dissolutions, investments and acquisitions, indebtedness and liens, and dividends and other restricted payments. As of December 31, 2023, the Company complied with the terms and conditions of the Credit Agreement.

During the year ended September 30, 2023, the Company did not make any draws under the Credit Agreement. As of December 31, 2023, the Company had no outstanding borrowings under the Credit Agreement.

During the three months ended December 31, 2023, 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Income Tax Contingency [Line Items]
Effective tax rate	31.60%	22.50%
Effective tax rate statutory federal rate	21.00%
Excise tax on share repurchases	1.00%
Corporate alternative minimum tax rate	15.00%
Unrecognized tax benefits	$ 0

Leases (Tables)

3 Months Ended

Dec. 31, 2023

Leases [Abstract]

Summary of lease expense and supplemental cash flow information

The components of lease expense are:


	Three Months Ended December 31,
	2023			2022
Finance lease – lease asset amortization	$	20		$	20
Finance lease – interest on lease liabilities		3			4
Operating lease cost		1,293			1,358
Short-term lease cost		39			137
Variable lease cost (1)		323			375
Sublease income		(3	)		(25	)
Total net lease cost	$	1,675		$	1,869

(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.

Supplemental disclosures of cash flow information related to leases are:


	Three Months Ended December 31,
	2023		2022
Cash paid for amounts included in operating lease liabilities	$	1,154	$	1,205
Cash paid for amounts included in finance lease liabilities	$	26	$	25
Non-cash: lease liabilities arising from new operating lease assets obtained	$	—	$	—
Non-cash: lease liabilities arising from new finance lease assets obtained	$	—	$	—
Non-cash: adjustments to lease assets and liabilities(1)	$	293	$	—

(1)

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

Maturities of Lease Liabilities

Maturities of lease liabilities are:


	December 31, 2023
	Operating Leases			Finance Leases
Remainder of 2024	$	3,436		$	67
2025		4,067			68
2026		2,418			65
2027		560			12
2028		144			—
Thereafter		49			—
Total lease payments (1)	$	10,674		$	213
Less: imputed interest (2)		(792	)		(15	)
Total lease liabilities	$	9,882		$	198

(1)

The weighted average remaining lease term is 2.6 years for operating leases and 2.7 years for finance leases.

(2)

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

Stockholders' Equity - Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation expense	$ 2,249	$ 2,081
Stock options
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation expense	500	475
RSUs & RSAs
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation expense	1,749	1,651
Stock Options and RSUs and RSAs
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation expense	2,249	2,126
SARs
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock compensation expense	$ 0	$ (44)

Intangible Assets

3 Months Ended

Dec. 31, 2023

Finite-Lived Intangible Assets, Net [Abstract]

Intangible Assets

Intangible assets consist of the following:


		December 31, 2023							September 30, 2023
(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	$	(6,606	)	$	10,394	$	17,000	$	(6,043	)	$	10,957
Technology	3 - 5		5,300		(4,578	)		722		5,300		(4,361	)		939
Patent and trademarks	7 - 10		2,376		(1,880	)		496		2,375		(1,814	)		561
Total intangible assets, net		$	24,676	$	(13,064	)	$	11,612	$	24,675	$	(12,218	)	$	12,457

Future expected amortization of intangible assets as of December 31, 2023, is as follows:


(in thousands)
Years ending September 30,	Expected Future Amortization
Remainder of 2024	$	2,408
2025		2,013
2026		1,768
2027		1,761
2028 and thereafter		3,662
Total	$	11,612

Intangible asset amortization expense was $0.8 million and $1.0 million for the three months ended December 31, 2023 and 2022, respectively.

The Company did not record impairment charges on any intangible assets during the three months ended December 31, 2023 and 2022. The Company did not identify any indicators of impairment requiring an interim impairment test on material long-lived assets during the three months ended December 31, 2023.

Stockholders' Equity

3 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

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, 2022		35,724,057		$	36	$	258,275			(3,813,199	)	$	(62,554	)	$	(10,285	)	$	(30,936	)	$	154,536
Net income		—			—		—			—			—			—			3,967			3,967
Exercise of stock options, grants of restricted stock awards, and vesting of restricted stock units		190,119			—		495			—			—			—			—			495
Taxes paid associated with net settlement of stock compensation awards		(14,536	)		—		(244	)		—			—			—			—			(244	)
Common stock repurchased		—			—		—			(531,819	)		(7,199	)		—			—			(7,199	)
Stock compensation expense		—			—		2,126			—			—			—			—			2,126
Foreign currency translation and other		—			—		—			—			—			1,273			—			1,273
Balance at December 31, 2022		35,899,640		$	36	$	260,653			(4,345,018	)	$	(69,754	)	$	(9,012	)	$	(26,970	)	$	154,953

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 December 31, 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 December 31, 2023, 66,635 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 December 31,
	2023		2022
Equity-classified awards:
Stock options	$	500	$	475
RSUs & RSAs		1,749		1,651
Total Equity-classified award		2,249		2,126
Liability-classified awards:
SARs		—		(44	)
Total stock compensation expense:	$	2,249	$	2,081

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 December 31,
	2023		2022
Stock-compensation expense by function
Technology and operations	$	330	$	256
Sales and marketing		638		508
General and administrative		1,281		1,317
Total stock compensation expense:	$	2,249	$	2,081

Stock Options and RSUs & RSAs

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


	Three Months Ended December 31, 2023
Stock Options granted:
Options containing only service conditions:		125,955
Weighted average exercise price	$	18.00
Weighted average grant date fair value	$	9.03

Options containing performance conditions:		125,955
Weighted average exercise price	$	18.00
Weighted average grant date fair value	$	9.03

RSUs & RSAs granted:
RSUs & RSAs containing only service conditions:		240,080
Weighted average grant date fair value	$	19.55

RSUs & RSAs containing performance conditions:		235,080
Weighted average grant date fair value	$	19.59

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 on 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 three months ended December 31, 2023, were as follows:


	Three Months Ended
	December 31, 2023
Dividend yield		—
Expected volatility	59.08% - 60.83%
Risk-free interest rate	3.83% - 3.88%
Expected term	4.5 - 5.0 years

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, 2023, the Company had $17.0 million of remaining share repurchase authorization through December 31, 2025.

The Company repurchased 68,692 shares for $1.2 million during the three months ended December 31, 2023. As of December 31, 2023, the Company had $15.8 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 three months ended December 31, 2023 and 2022, no shares of common stock were surrendered by participants in the exercise of stock options.

Intangible Assets - Schedule of intangible assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Intangible Assets
Gross Carrying Amount	$ 24,676	$ 24,675
Accumulated Amortization	(13,064)	(12,218)
Net Carrying Amount	11,612	12,457
Contract intangibles
Intangible Assets
Gross Carrying Amount	17,000	17,000
Accumulated Amortization	(6,606)	(6,043)
Net Carrying Amount	$ 10,394	10,957
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	(4,578)	(4,361)
Net Carrying Amount	$ 722	939
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	$ 2,376	2,375
Accumulated Amortization	(1,880)	(1,814)
Net Carrying Amount	$ 496	$ 561
Patent and trademarks \| Minimum
Intangible Assets
Useful Life (in years)	7 years
Patent and trademarks \| Maximum
Intangible Assets
Useful Life (in years)	10 years

Leases - Narrative (Details)	Dec. 31, 2023
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	3 years 1 month 6 days

Legal Proceedings and Other Contingencies

3 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Legal Proceedings and Other Contingencies

12.

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 the United States District Court for the District of Maryland (the “District Court”), alleging wrongful termination on the basis of gender, race, and age. The Company’s employment practices liability insurance carrier, CNA, accepted tender of these claims. In December 2022, the District Court granted the Company’s motion to dismiss with respect to the age discrimination claim but denied the motion with respect to the race and gender claims. Trial on the race and gender claims began on October 30, 2023. The jury was unable to reach a unanimous verdict on either claim and the judge declared a mistrial on November 6, 2023. The District Court and the parties are in the process of selecting a date for retrial. The Company continues to assert substantial defenses and cannot estimate a range of potential liability, if any, at this time.

On December 28, 2022, the Company’s former Chief Marketing Officer (the “Former CMO”) filed a complaint (the “Original Complaint”) in the District Court, alleging wrongful termination on the basis of race and age and that the Company retaliated against him. 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 filed a motion to dismiss certain of the Former CMO’s claims on September 1, 2023. The District Court has not yet ruled on the motion. The Company asserts substantial defenses and cannot estimate a range of potential liability, if any, at this time. CNA has accepted tender of these claims as well.

Summary of Significant Accounting Policies Unaudited Interim Financial Information	3 Months Ended
	Dec. 31, 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 management's opinion, 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 months ended December 31, 2023, are not necessarily indicative of the results that may be expected for the year ending September 30, 2024, 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 months ended December 31, 2023, these estimates required the Company to make assumptions about the impact of ongoing international armed and geopolitical conflicts, 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 $0.9 million as of December 31, 2023, and $0.9 million as of September 30, 2023, 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 $4.5 million as of December 31, 2023, and $4.7 million as of September 30, 2023, and is included in the line-item Deferred revenue on the Condensed Consolidated Balance Sheets. Of the September 30, 2023, contract liability balance, $2.2 million was earned as other fee revenue during the three months ended December 31, 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 December 31, 2023, the Machinio segment had a remaining performance obligation of $4.5 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 $2.2 million as of December 31, 2023, and $2.2 million as of September 30, 2023, 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 $0.4 million and $0.3 million during the three months ended December 31, 2023 and 2022, respectively 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 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. $8.3 million and $5.8 million of inventory purchased under such contracts with Amazon.com, Inc. is included in the line-item Inventory on the Condensed Consolidated Balance Sheets as of December 31, 2023, and September 30, 2023, 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 Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). The majority of the Company’s sales require payment in advance of the sale, but a limited number of buyers are approved to conduct sales on credit. Accounts receivables related to those sales are generally short-term in nature and do not require the posting of collateral. The Company estimates its allowances for credit loss based on historical collection trends, the age of outstanding receivables, existing economic conditions, and the specific facts and circumstances of individual customers. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due account balances are written off when the Company’s internal collection efforts have been unsuccessful in collecting the amounts due. The Company adopted the new standard effective October 1, 2023. The adoption of ASU 2016-13 did not have a material impact on our condensed consolidated financial statements. Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. It will require organizations to provide enhanced disclosures primarily regarding significant segment expenses. The guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ending September 30, 2025. The guidance is required to be applied on a retrospective basis, with all such required disclosures to be made with regard to all fiscal years presented in the financial statements. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU will require organizations to disclose specific categories in their tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ending September 30, 2026. The guidance is required to be applied on a prospective basis however, retrospective application is permitted. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements.

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

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


	Three months ended December 31,
	2023		2022
Numerator:
Net income	$	1,907	$	3,967
Denominator:
Basic weighted average shares outstanding		30,605,475		31,815,160
Dilutive impact of stock options, RSUs and RSAs		1,332,867		1,122,440
Diluted weighted average shares outstanding		31,938,342		32,937,600
Basic income per common share	$	0.06	$	0.12
Diluted income per common share	$	0.06	$	0.12
Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive		1,977,805		1,906,513

Earnings Per Share

3 Months Ended

Dec. 31, 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 December 31,
	2023		2022
Numerator:
Net income	$	1,907	$	3,967
Denominator:
Basic weighted average shares outstanding		30,605,475		31,815,160
Dilutive impact of stock options, RSUs and RSAs		1,332,867		1,122,440
Diluted weighted average shares outstanding		31,938,342		32,937,600
Basic income per common share	$	0.06	$	0.12
Diluted income per common share	$	0.06	$	0.12
Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive		1,977,805		1,906,513

Summary of Significant Accounting Policies Unaudited Interim Financial Information (Policies)	3 Months Ended
	Dec. 31, 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 management's opinion, 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 months ended December 31, 2023, are not necessarily indicative of the results that may be expected for the year ending September 30, 2024, 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 months ended December 31, 2023, these estimates required the Company to make assumptions about the impact of ongoing international armed and geopolitical conflicts, 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 $0.9 million as of December 31, 2023, and $0.9 million as of September 30, 2023, 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 $4.5 million as of December 31, 2023, and $4.7 million as of September 30, 2023, and is included in the line-item Deferred revenue on the Condensed Consolidated Balance Sheets. Of the September 30, 2023, contract liability balance, $2.2 million was earned as other fee revenue during the three months ended December 31, 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 December 31, 2023, the Machinio segment had a remaining performance obligation of $4.5 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 $2.2 million as of December 31, 2023, and $2.2 million as of September 30, 2023, 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 $0.4 million and $0.3 million during the three months ended December 31, 2023 and 2022, respectively
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 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. $8.3 million and $5.8 million of inventory purchased under such contracts with Amazon.com, Inc. is included in the line-item Inventory on the Condensed Consolidated Balance Sheets as of December 31, 2023, and September 30, 2023, 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 Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326). The majority of the Company’s sales require payment in advance of the sale, but a limited number of buyers are approved to conduct sales on credit. Accounts receivables related to those sales are generally short-term in nature and do not require the posting of collateral. The Company estimates its allowances for credit loss based on historical collection trends, the age of outstanding receivables, existing economic conditions, and the specific facts and circumstances of individual customers. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due account balances are written off when the Company’s internal collection efforts have been unsuccessful in collecting the amounts due. The Company adopted the new standard effective October 1, 2023. The adoption of ASU 2016-13 did not have a material impact on our condensed consolidated financial statements. Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. It will require organizations to provide enhanced disclosures primarily regarding significant segment expenses. The guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ending September 30, 2025. The guidance is required to be applied on a retrospective basis, with all such required disclosures to be made with regard to all fiscal years presented in the financial statements. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU will require organizations to disclose specific categories in their tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance will be effective for the Company beginning with its Annual Report on Form 10-K for the fiscal year ending September 30, 2026. The guidance is required to be applied on a prospective basis however, retrospective application is permitted. The Company is currently evaluating the effect that the adoption of this ASU may have on its consolidated financial statements.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-17

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 19
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-19

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-18

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-18

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 20
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-20

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (e)
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483426/235-10-50-4

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Summary of Significant Accounting Policies Unaudited Interim Financial Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Business Acquisition [Line Items]
Contract asset	$ 0.9		$ 0.9
Contract liability	4.5		4.7
Contract liability recognized as revenue	2.2
Capitalized contract cost, amortization	$ 0.4	$ 0.3
Percentage purchase model transactions	20.00%
Purchase of inventory	$ 8.3		5.8
Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Contract costs	$ 2.2		$ 2.2

Stockholders' Equity (Tables)

3 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [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, 2022		35,724,057		$	36	$	258,275			(3,813,199	)	$	(62,554	)	$	(10,285	)	$	(30,936	)	$	154,536
Net income		—			—		—			—			—			—			3,967			3,967
Exercise of stock options, grants of restricted stock awards, and vesting of restricted stock units		190,119			—		495			—			—			—			—			495
Taxes paid associated with net settlement of stock compensation awards		(14,536	)		—		(244	)		—			—			—			—			(244	)
Common stock repurchased		—			—		—			(531,819	)		(7,199	)		—			—			(7,199	)
Stock compensation expense		—			—		2,126			—			—			—			—			2,126
Foreign currency translation and other		—			—		—			—			—			1,273			—			1,273
Balance at December 31, 2022		35,899,640		$	36	$	260,653			(4,345,018	)	$	(69,754	)	$	(9,012	)	$	(26,970	)	$	154,953

Summary of share-based compensation expense

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


	Three Months Ended December 31,
	2023		2022
Equity-classified awards:
Stock options	$	500	$	475
RSUs & RSAs		1,749		1,651
Total Equity-classified award		2,249		2,126
Liability-classified awards:
SARs		—		(44	)
Total stock compensation expense:	$	2,249	$	2,081

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 December 31,
	2023		2022
Stock-compensation expense by function
Technology and operations	$	330	$	256
Sales and marketing		638		508
General and administrative		1,281		1,317
Total stock compensation expense:	$	2,249	$	2,081

Summary of stock options and restricted stock granted

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


	Three Months Ended December 31, 2023
Stock Options granted:
Options containing only service conditions:		125,955
Weighted average exercise price	$	18.00
Weighted average grant date fair value	$	9.03

Options containing performance conditions:		125,955
Weighted average exercise price	$	18.00
Weighted average grant date fair value	$	9.03

RSUs & RSAs granted:
RSUs & RSAs containing only service conditions:		240,080
Weighted average grant date fair value	$	19.55

RSUs & RSAs containing performance conditions:		235,080
Weighted average grant date fair value	$	19.59

Summary of fair value assumptions, stock options

The range of assumptions used to determine the fair value of stock options using the Black-Scholes option-pricing model during the three months ended December 31, 2023, were as follows:


	Three Months Ended
	December 31, 2023
Dividend yield		—
Expected volatility	59.08% - 60.83%
Risk-free interest rate	3.83% - 3.88%
Expected term	4.5 - 5.0 years

Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2023

Finite-Lived Intangible Assets, Net [Abstract]

Schedule of intangible assets

Intangible assets consist of the following:


		December 31, 2023							September 30, 2023
(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	$	(6,606	)	$	10,394	$	17,000	$	(6,043	)	$	10,957
Technology	3 - 5		5,300		(4,578	)		722		5,300		(4,361	)		939
Patent and trademarks	7 - 10		2,376		(1,880	)		496		2,375		(1,814	)		561
Total intangible assets, net		$	24,676	$	(13,064	)	$	11,612	$	24,675	$	(12,218	)	$	12,457

Schedule of Future Expected Amortization of Intangible Assets

Future expected amortization of intangible assets as of December 31, 2023, is as follows:


(in thousands)
Years ending September 30,	Expected Future Amortization
Remainder of 2024	$	2,408
2025		2,013
2026		1,768
2027		1,761
2028 and thereafter		3,662
Total	$	11,612

Segment Information - Narrative (Details) - Segment	3 Months Ended
Segment Information - Narrative (Details) - Segment	Dec. 31, 2023	Dec. 31, 2022
Revenue, Major Customer [Line Items]
Reportable segments	4
Non-US \| Sales Revenue \| Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk percentage	12.10%	13.50%

Stockholders' Equity - Fair Value (Details) - Stock options	3 Months Ended
	Dec. 31, 2023
Fair value assumptions
Dividend yield	0.00%
Expected volatility, minimum	59.08%
Expected volatility, maximum	60.83%
Risk free interest rate, minimum	3.83%
Risk free interest rate, maximum	3.88%
Minimum
Fair value assumptions
Expected term	4 years 6 months
Maximum
Fair value assumptions
Expected term	5 years

Leases

3 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

The Company has operating leases for its corporate offices, warehouses, vehicles, and equipment. During the three months ended December 31, 2023, the Company entered into a lease for warehouse space in Brownsburg, IN, which has not yet commenced but is expected to during the year ended September 30, 2024. This warehouse will serve our RSCG buyers and sellers upon expiration of our Plainfield, IN lease.

The operating leases have remaining terms of up to 3.1 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 December 31,
	2023			2022
Finance lease – lease asset amortization	$	20		$	20
Finance lease – interest on lease liabilities		3			4
Operating lease cost		1,293			1,358
Short-term lease cost		39			137
Variable lease cost (1)		323			375
Sublease income		(3	)		(25	)
Total net lease cost	$	1,675		$	1,869

(1)

Maturities of lease liabilities are:


	December 31, 2023
	Operating Leases			Finance Leases
Remainder of 2024	$	3,436		$	67
2025		4,067			68
2026		2,418			65
2027		560			12
2028		144			—
Thereafter		49			—
Total lease payments (1)	$	10,674		$	213
Less: imputed interest (2)		(792	)		(15	)
Total lease liabilities	$	9,882		$	198

(1)

The weighted average remaining lease term is 2.6 years for operating leases and 2.7 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:


	Three Months Ended December 31,
	2023		2022
Cash paid for amounts included in operating lease liabilities	$	1,154	$	1,205
Cash paid for amounts included in finance lease liabilities	$	26	$	25
Non-cash: lease liabilities arising from new operating lease assets obtained	$	—	$	—
Non-cash: lease liabilities arising from new finance lease assets obtained	$	—	$	—
Non-cash: adjustments to lease assets and liabilities(1)	$	293	$	—

(1)

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

Cover Page - shares	3 Months Ended
Cover Page - shares	Dec. 31, 2023	Feb. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 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		30,719,262
Entity Central Index Key	0001235468
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

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, 2022		35,724,057
Balance at Sep. 30, 2022	$ 154,536	$ 36	$ 258,275		$ (10,285)	$ (30,936)
Balance (in shares) at Sep. 30, 2022				(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
Balance (in shares) at Dec. 31, 2022		35,899,640
Balance at Dec. 31, 2022	$ 154,953	$ 36	260,653		(9,012)	(26,970)
Balance (in shares) at Dec. 31, 2022				(4,345,018)
Balance (in shares) at Sep. 30, 2023	36,142,346	36,142,345
Balance at Sep. 30, 2023	$ 161,533	$ 36	265,945	$ (84,031)	(10,458)	(9,958)
Balance (in shares) at Sep. 30, 2023	5,433,045			(5,433,045)
Increase (Decrease) in Stockholders' Equity
Net income	$ 1,907					1,907
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		59,471
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	127		127
Taxes paid associated with net settlement of stock compensation awards (in shares)		(12,058)
Taxes paid associated with net settlement of stock compensation awards	(224)		(224)
Common stock repurchased	(1,171)			$ (1,171)
Common stock repurchased (in shares)				(68,692)
Stock compensation expense	2,249		2,249
Foreign currency translation	$ 958				958
Balance (in shares) at Dec. 31, 2023	36,189,758	36,189,758
Balance at Dec. 31, 2023	$ 165,379	$ 36	$ 268,096	$ (85,202)	$ (9,500)	$ (8,051)
Balance (in shares) at Dec. 31, 2023	5,501,737			(5,501,737)

Goodwill

3 Months Ended

Dec. 31, 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, 2022	$	53,814	$	20,538	$	14,558	$	88,910
Translation adjustments		—		478		—		478
September 30, 2023		53,814		21,016		14,558		89,388
Translation adjustments		—		239		—		239
December 31, 2023	$	53,814	$	21,255	$	14,558	$	89,627

Goodwill is tested for impairment at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. The Company did not identify any indicators of impairment that required an interim goodwill impairment test during the three months ended December 31, 2023.

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Total revenue	$ 71,325	$ 72,282
Costs and expenses from operations:
Cost of goods sold (excludes depreciation and amortization)	31,526	31,773
Technology and operations	14,238	14,704
Sales and marketing	12,980	10,790
General and administrative	7,585	7,385
Depreciation and amortization	2,904	2,764
Other operating expenses, net	445	139
Total costs and expenses	69,678	67,555
Income from operations	1,647	4,727
Interest and other income, net	(1,141)	(389)
Income before provision for income taxes	2,788	5,116
Provision for income taxes	881	1,149
Net income	$ 1,907	$ 3,967
Basic income per common share (in usd per share)	$ 0.06	$ 0.12
Diluted income per common share (in usd per share)	$ 0.06	$ 0.12
Basic weighted average shares outstanding (in shares)	30,605,475	31,815,160
Diluted weighted average shares outstanding	31,938,342	32,937,600
Purchase revenues
Total revenue	$ 36,225	$ 38,634
Consignment and other fee revenues
Total revenue	$ 35,100	$ 33,648

Subsequent Events

3 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

14.

Subsequent Events

On January 1, 2024, the Company acquired all the issued and outstanding equity securities associated with Sierra Auction Management, Inc. and G&G Salvage and Liquidations, Inc. (collectively, "Sierra") for $13.5 million in cash, subject to a customary working capital adjustment. Sierra is a full-service auction company specializing in the sale of vehicles, equipment and surplus assets for government agencies, commercial businesses, and charities in Arizona. Its financial results will be reported within the GovDeals reportable segment.

Leases - Maturities of Lease Liabilities (Parenthetical) (Details)	Dec. 31, 2023
Leases [Abstract]
Operating leases, weighted average remaining lease term	2 years 7 months 6 days
Finance leases, weighted average remaining lease term	2 years 8 months 12 days
Operating leases, weighted average discount rate	6.20%
Finance leases, weighted average discount rate	5.60%

Segment Information (Tables)

3 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of segment reporting information, by segment

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


		Three Months Ended December 31,
(in thousands)		2023			2022
GovDeals:
	Purchase revenue	$	—		$	—
	Consignment and other fee revenues		15,900			13,607
	Total revenue		15,900			13,607
	Segment direct profit	$	15,056		$	12,892

RSCG:
	Purchase revenue	$	35,293		$	35,870
	Consignment and other fee revenues		8,428			10,145
	Total revenue		43,721			46,015
	Segment direct profit	$	14,112		$	16,011

CAG:
	Purchase revenue	$	932		$	2,763
	Consignment and other fee revenues		6,902			6,629
	Total revenue		7,834			9,393
	Segment direct profit	$	6,943		$	8,502

Machinio:
	Purchase revenue	$	—		$	—
	Consignment and other fee revenues		3,886			3,283
	Total revenue		3,886			3,283
	Segment direct profit	$	3,703		$	3,120

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

Consolidated:
	Purchase revenue	$	36,225		$	38,634
	Consignment and other fee revenues		35,100			33,648
	Total revenue		71,325			72,282
	Total Segment direct profit	$	39,798		$	40,509

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 December 31,
(in thousands)	2023			2022
Reconciliation:
Total segment direct profit	$	39,798		$	40,509
Other costs and expenses from operations (1)	$	37,707			35,643
Interest and other income, net	$	(697	)		(249	)
Income before provision for income taxes	$	2,788		$	5,116

(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).

Stockholders' Equity - Grant Activity (Details)	3 Months Ended
Stockholders' Equity - Grant Activity (Details)	Dec. 31, 2023 $ / shares shares
Stock Option - Service Based
Stock Options granted:
Options granted (in shares) \| shares	125,955
Weighted average exercise price (USD per share)	$ 18
Weighted average grant date fair value (USD per share)	$ 9.03
Stock Option - Performance Based
Stock Options granted:
Options granted (in shares) \| shares	125,955
Weighted average exercise price (USD per share)	$ 18
Weighted average grant date fair value (USD per share)	$ 9.03
Restricted Stock - Service Based
RSUs & RSAs granted:
Restricted shares granted \| shares	240,080
Weighted average grant date fair value (USD per share)	$ 19.55
Restricted Stock - Performance Based
RSUs & RSAs granted:
Restricted shares granted \| shares	235,080
Weighted average grant date fair value (USD per share)	$ 19.59

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 1,907	$ 3,967
Other comprehensive income (loss):
Foreign currency translation	958	(1,273)
Other comprehensive income (loss), net of taxes	958	(1,273)
Comprehensive income	$ 2,865	$ 5,240

- Definition

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

+ References

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+ Details

Defined Benefit Pension Plan - Additional Information (Details)	Dec. 31, 2023 GBP (£)
Maximum
Defined benefit pension plan
Expected contributions	£ 10,000,000

Segment Information - Schedule of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 71,325	$ 72,282
Total segment gross profit	39,798	40,509
Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	15,900	13,607
Total segment gross profit	15,056	12,892
Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	43,721	46,015
Total segment gross profit	14,112	16,011
Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	7,834	9,393
Total segment gross profit	6,943	8,502
Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	3,886	3,283
Total segment gross profit	3,703	3,120
Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	(16)	(16)
Total segment gross profit	(16)	(16)
Consignment and other fee revenues
Segment Reporting Information [Line Items]
Total revenue	35,100	33,648
Consignment and other fee revenues \| Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	15,900	13,607
Consignment and other fee revenues \| Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	8,428	10,145
Consignment and other fee revenues \| Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	6,902	6,629
Consignment and other fee revenues \| Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	3,886	3,283
Consignment and other fee revenues \| Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	(16)	(16)
Purchase revenues
Segment Reporting Information [Line Items]
Total revenue	36,225	38,634
Purchase revenues \| Operating Segments \| GovDeals
Segment Reporting Information [Line Items]
Total revenue	0	0
Purchase revenues \| Operating Segments \| RSCG
Segment Reporting Information [Line Items]
Total revenue	35,293	35,870
Purchase revenues \| Operating Segments \| CAG
Segment Reporting Information [Line Items]
Total revenue	932	2,763
Purchase revenues \| Operating Segments \| Machinio
Segment Reporting Information [Line Items]
Total revenue	0	0
Purchase revenues \| Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 0

Defined Benefit Pension Plan (Tables)	3 Months Ended
Defined Benefit Pension Plan (Tables)	Dec. 31, 2023
Retirement Benefits [Abstract]
Schedule of net periodic benefit cost recognized	The net periodic pension (benefit) cost is recognized within Interest and other income, net in the Condensed Consolidated Statements of Operations, and was immaterial for the three months ended December 31, 2023 and 2022.

Organization (Details)	3 Months Ended
Organization (Details)	Dec. 31, 2023 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reportable segments	4

Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Finance lease – lease asset amortization	$ 20	$ 20
Finance lease – interest on lease liabilities	3	4
Operating lease cost	1,293	1,358
Short-term lease cost	39	137
Variable lease cost	323	375
Sublease income	(3)	(25)
Total net lease cost	$ 1,675	$ 1,869

Earnings Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net income	$ 1,907	$ 3,967
Denominator:
Basic weighted average shares outstanding	30,605,475	31,815,160
Dilutive impact of stock options, RSUs and RSAs	1,332,867	1,122,440
Diluted weighted average shares outstanding	31,938,342	32,937,600
Basic income per common share	$ 0.06	$ 0.12
Diluted income per common share	$ 0.06	$ 0.12
Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive	1,977,805	1,906,513

- Definition

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

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- 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.

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- Definition

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

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+ Details

Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended
Intangible Assets - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense	$ 800,000	$ 1,000,000
Impairment of long-lived assets	$ 0	$ 0

Segment Information

3 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

13.

Segment Information

The Company has four reportable segments under which we conduct business: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Descriptions of our reportable segments are as follows:

•

GovDeals. The GovDeals reportable segment provides solutions that enable government entities including city, county, state and federal agencies located in the United States and Canada and related commercial businesses to sell surplus property and real estate assets through our GovDeals and Bid4Assets marketplaces.

•

RSCG. The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. RSCG also offers a suite of services that includes returns management, asset recovery, and e-commerce solutions. This segment uses multiple selling channels across our network of marketplaces and others to optimize the best combination of velocity, volume, and value. This segment uses the AllSurplus, Secondipity, and Liquidation.com marketplaces.

•

CAG. The CAG reportable segment provides solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus assets. The core verticals in which CAG operates include industrial manufacturing, oil and gas, heavy equipment, biopharma, and electronics. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales and marketing. CAG benefits from a global base of buyers and sellers enabling the sale and redeployment of assets wherever they’re most likely to generate the best value and highest use across the world. This segment primarily uses the AllSurplus and GovDeals marketplaces.

•

Machinio. 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 suite of online marketing tools that includes website hosting, email marketing, and inventory management, to support and enable equipment sellers’ online business.

We also report results for Corporate, 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 that assessment, the CODM uses segment direct profit to evaluate the performance of each segment. Segment direct profit is calculated as total revenue less cost of goods sold (excludes depreciation and amortization).

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


		Three Months Ended December 31,
(in thousands)		2023			2022
GovDeals:
	Purchase revenue	$	—		$	—
	Consignment and other fee revenues		15,900			13,607
	Total revenue		15,900			13,607
	Segment direct profit	$	15,056		$	12,892

RSCG:
	Purchase revenue	$	35,293		$	35,870
	Consignment and other fee revenues		8,428			10,145
	Total revenue		43,721			46,015
	Segment direct profit	$	14,112		$	16,011

CAG:
	Purchase revenue	$	932		$	2,763
	Consignment and other fee revenues		6,902			6,629
	Total revenue		7,834			9,393
	Segment direct profit	$	6,943		$	8,502

Machinio:
	Purchase revenue	$	—		$	—
	Consignment and other fee revenues		3,886			3,283
	Total revenue		3,886			3,283
	Segment direct profit	$	3,703		$	3,120

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

Consolidated:
	Purchase revenue	$	36,225		$	38,634
	Consignment and other fee revenues		35,100			33,648
	Total revenue		71,325			72,282
	Total Segment direct profit	$	39,798		$	40,509

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


	Three Months Ended December 31,
(in thousands)	2023			2022
Reconciliation:
Total segment direct profit	$	39,798		$	40,509
Other costs and expenses from operations (1)	$	37,707			35,643
Interest and other income, net	$	(697	)		(249	)
Income before provision for income taxes	$	2,788		$	5,116

(1)

The percent of our revenues that came from transactions conducted outside of the United States for the three months ended December 31, 2023 and 2022, was 12.1% and 13.5%, 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.

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+ Details

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,518	$ 1,424
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)	36,189,758	36,142,346
Common stock, shares outstanding (in shares)	36,189,758	36,142,346
Treasury Stock, Common, Shares	5,501,737	5,433,045

Debt - Narrative (Details) - USD ($)		12 Months Ended
Debt - Narrative (Details) - USD ($)	Feb. 10, 2022	Sep. 30, 2023	Dec. 31, 2023
Credit Agreement
Debt Instrument [Line Items]
Amount outstanding			$ 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, National Association
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000,000
Letter of Credit \| Wells Fargo Bank, National Association
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10,000,000

Organization

3 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Liquidity Services, Inc. (Liquidity Services, the Company) is a leading global commerce company providing trusted online marketplace platforms that power the circular economy. We create a better future for organizations, individuals, and the planet by using technology to capture and unleash the intrinsic value of surplus. We connect millions of buyers and thousands of sellers through our leading e-commerce 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 online marketplace platforms. These platforms ignite and enable a self-reinforcing cycle of value creation where buyers and sellers attract one another in greater 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.

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

Reportable Segments

The Company has four reportable segments under which we conduct business: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Further information and operating results of our reportable segments can be found in Note 13 - Segment Information.

•

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 inflationary pressures and impacts from interest rate changes; ongoing international armed and geopolitical conflicts; 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.

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Cash paid for amounts included in operating lease liabilities	$ 1,154	$ 1,205
Cash paid for amounts included in finance lease liabilities	26	25
Non-cash: lease liabilities arising from new operating lease assets obtained	0	0
Non-cash: lease liabilities arising from new finance lease assets obtained	0	0
Non-cash: adjustments to lease assets and liabilities	$ 293	$ 0

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023
Current assets:
Cash and cash equivalents	$ 98,557	$ 110,281
Short-term investments	8,480	7,891
Accounts receivable, net of allowance for doubtful accounts of $1,518 and $1,424	7,745	7,848
Inventory, net	14,465	11,116
Prepaid taxes and tax refund receivable	1,426	1,783
Prepaid expenses and other current assets	7,290	7,349
Total current assets	137,963	146,268
Property and equipment, net	16,774	17,156
Operating lease assets	9,052	9,888
Intangible assets, net	11,612	12,457
Goodwill	89,627	89,388
Deferred tax assets	6,439	7,050
Other assets	6,958	6,762
Total assets	278,425	288,970
Current liabilities:
Accounts payable	32,389	39,115
Accrued expenses and other current liabilities	17,413	23,809
Current portion of operating lease liabilities	4,009	4,101
Deferred revenue	4,474	4,701
Payables to sellers	48,811	48,992
Total current liabilities	107,096	120,718
Operating lease liabilities	5,828	6,581
Other long-term liabilities	122	137
Total liabilities	113,046	127,436
Commitments and contingencies (Note 12)
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; 36,189,757 shares issued and outstanding at December 31, 2023; 36,142,346 shares issued and outstanding at September 30, 2023	36	36
Additional paid-in capital	268,096	265,945
Treasury stock, at cost; 5,501,737 shares at December 31, 2023, and 5,433,045 shares at September 30, 2023	(85,202)	(84,031)
Accumulated other comprehensive loss	(9,500)	(10,457)
Accumulated deficit	(8,051)	(9,958)
Total stockholders’ equity	165,379	161,533
Total liabilities and stockholders’ equity	$ 278,425	$ 288,970

Summary of Significant Accounting Policies Unaudited Interim Financial Information - Narrative 1 (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 $ in Millions	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Remaining performance obligation, period	12 months
Machinio
Business Acquisition [Line Items]
Remaining performance obligation	$ 4.5

Income Taxes

3 Months Ended

Dec. 31, 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 three months of fiscal year 2024 and its corresponding effective tax rate is 31.6% compared to 22.5% for the first three months of fiscal year 2023. The change in the effective tax rate for the three months ended December 31, 2023, as compared to the same period in the prior year, was primarily due to state and foreign taxes, and the utilization of net operating losses. 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 is effective for us in fiscal year 2024. The IRA has not had 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 three months ended December 31, 2023, the Company did not record any unrecognized tax benefits. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions and in foreign jurisdictions, primarily Canada and the United Kingdom. As of December 31, 2023, the Company has no open income tax examinations in the U.S. and the statute of limitations for years prior to 2020 is now closed. However, certain tax attribute carryforwards that were generated prior to fiscal year 2020 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 740
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-Paragraph 2
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Fair Value Measurement - Narrative (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023
Fair value measurement
Money market funds, at carrying value	$ 42,900,000	$ 51,400,000
Nonrecurring
Fair value measurement
Fair value, asset (liability)	$ 0	$ 0