Annual report pursuant to Section 13 and 15(d)

Goodwill

Goodwill

12 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Note 8: Goodwill

The following table details the Company's goodwill as of September 30, 2023 and 2022 (in 000’s):


	Retail - Entertainment		Retail - Flooring		Flooring Manufacturing		Steel Manufacturing		Corporate		Total
September 30, 2021	$	36,947	$	—	$	807	$	—	$	3,717	$	41,471
Additions	—		—		—		3,339		—		3,339
Impairment	—		—		—		—		(3,717)		(3,717)
September 30, 2022	36,947		—		807		3,339		—		41,093
Additions	—		30,419		—		4,666		—		35,085
Fair value adjustments	—		—		—		(312)				(312)
Impairment	—		—		—		—		—		—
September 30, 2023	$	36,947	$	30,419	$	807	$	7,693	$	—	$	75,866

The Company accounts for purchased goodwill and intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other (see Note 2). Goodwill recognized during the year ended September 30, 2023 was approximately $35.1 million, and was due to the acquisitions of Flooring Liquidators and PMW, partially offset by a $312,000 fair value adjustment to the goodwill of Kinetic. Goodwill recognized during the year ended September 30, 2022 was approximately $3.3 million, and was due to the acquisition of Kinetic.

During the fourth quarter of the year ended September 30, 2022, the Company performed its annual goodwill impairment testing, which resulted in an impairment to SW Financial's goodwill. The results of the impairment test indicated that, due to downturns in the financial market, which caused a reduction in revenue, the carrying value of SW Financial's goodwill exceeded its estimated fair value, and, thus, goodwill was fully impaired. Consequently, as of the year ended September 30, 2022, the Company recorded an impairment charge in the amount of $3.7 million for the full amount of SW Financial's goodwill. SW Financial's operation were shut down during the third quarter of the year ended September 30, 2023 (see Note 3). No such impairment occurred for the year ended September 30, 2023.