Liquidity Services (LQDT) 10-Q 8 May 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2019	May 06, 2019
Document and Entity Information
Entity Registrant Name	LIQUIDITY SERVICES INC
Entity Central Index Key	0001235468
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		33,496,398
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 33,922	$ 58,448
Short-term investments	30,000	20,000
Accounts receivable, net of allowance for doubtful accounts of $300 and $337 at March 31, 2019 and September 30, 2018, respectively	6,175	4,870
Inventory, net	13,050	10,122
Prepaid taxes and tax refund receivable	1,774	1,727
Prepaid expenses and other current assets	8,574	7,816
Total current assets	93,495	102,983
Property and equipment, net of accumulated depreciation of $12,447 and $11,078 at March 31, 2019 and September 30, 2018, respectively	17,876	16,610
Intangible assets, net	6,708	7,366
Goodwill	59,690	59,819
Deferred tax assets	889	930
Other assets	14,451	14,124
Total assets	193,109	201,832
Current liabilities:
Accounts payable	11,126	13,859
Accrued expenses and other current liabilities	22,839	21,373
Distributions payable	1,607	2,128
Deferred revenue	3,098	2,142
Payables to sellers	25,131	28,969
Total current liabilities	63,801	68,471
Deferred taxes and other long-term liabilities	4,843	3,707
Total liabilities	68,644	72,178
Commitments and contingencies (Note 12)	0	0
Stockholders’ equity:
Common stock, $0.001 par value; 120,000,000 shares authorized; 33,347,657 shares issued and outstanding at March 31, 2019; 32,774,118 shares issued and outstanding at September 30, 2018	33	33
Additional paid-in capital	239,806	236,115
Accumulated other comprehensive loss	(6,678)	(6,449)
Accumulated deficit	(108,696)	(100,045)
Total stockholders’ equity	124,465	129,654
Total liabilities and stockholders’ equity	$ 193,109	$ 201,832

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 300	$ 337
Property and equipment, accumulated depreciation	$ 12,447	$ 11,078
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	33,347,657	32,774,118
Common stock, shares outstanding (in shares)	33,347,657	32,774,118

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Total revenue	$ 56,800	$ 60,097	$ 110,853	$ 121,240
Costs and expenses from operations:
Cost of goods sold (exclusive of depreciation and amortization)	24,807	28,727	49,763	56,358
Seller distributions	2,775	3,859	5,399	7,171
Technology and operations	13,429	15,955	25,953	34,055
Sales and marketing	9,135	8,225	18,116	16,535
General and administrative	8,624	7,546	17,258	15,210
Depreciation and amortization	1,165	1,144	2,369	2,355
Other operating expenses	1,350	311	1,555	1,770
Total costs and expenses	61,285	65,767	120,413	133,454
Loss from operations	(4,485)	(5,670)	(9,560)	(12,214)
Interest and other income, net	(451)	(394)	(770)	(911)
Loss before provision (benefit) for income taxes	(4,034)	(5,276)	(8,790)	(11,303)
Provision (benefit) for income taxes	328	379	594	(4,436)
Net loss	$ (4,362)	$ (5,655)	$ (9,384)	$ (6,867)
Basic and diluted loss per common share (in dollars per share)	$ (0.13)	$ (0.18)	$ (0.29)	$ (0.22)
Basic and diluted weighted average shares outstanding (in shares)	32,987,608	31,972,752	32,896,890	31,924,149
Revenue
Total revenue	$ 37,355	$ 43,104	$ 73,090	$ 83,384
Fee revenue
Total revenue	$ 19,445	$ 16,993	$ 37,763	$ 37,856

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,362)	$ (5,655)	$ (9,384)	$ (6,867)
Other comprehensive income (loss):
Foreign currency translation	198	35	(229)	(16)
Other comprehensive income (loss)	198	35	(229)	(16)
Comprehensive loss	$ (4,164)	$ (5,620)	$ (9,613)	$ (6,883)

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance (in shares) at Sep. 30, 2017		31,503,349
Balance at Sep. 30, 2017	$ 132,636	$ 29	$ 227,264	$ (6,431)	$ (88,226)
Increase (Decrease) in Stockholders' Equity
Net loss	(1,212)				(1,212)
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		386,330
Compensation expense from grants of common stock options and restricted stock	1,262		1,262
Balance (in shares) at Dec. 31, 2017		31,889,679
Balance at Dec. 31, 2017	132,522	$ 29	228,626	(6,482)	(89,651)
Balance (in shares) at Sep. 30, 2017		31,503,349
Balance at Sep. 30, 2017	132,636	$ 29	227,264	(6,431)	(88,226)
Increase (Decrease) in Stockholders' Equity
Net loss	(6,867)
Foreign currency translation	(16)
Balance (in shares) at Mar. 31, 2018		31,993,077
Balance at Mar. 31, 2018	128,137	$ 29	229,850	(6,448)	(95,294)
Balance (in shares) at Dec. 31, 2017		31,889,679
Balance at Dec. 31, 2017	132,522	$ 29	228,626	(6,482)	(89,651)
Increase (Decrease) in Stockholders' Equity
Net loss	(5,655)				(5,655)
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		103,398
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	12		12
Compensation expense from grants of common stock options and restricted stock	1,212		1,212
Foreign currency translation	35
Balance (in shares) at Mar. 31, 2018		31,993,077
Balance at Mar. 31, 2018	128,137	$ 29	229,850	(6,448)	(95,294)
Balance (in shares) at Sep. 30, 2018		32,774,118
Balance at Sep. 30, 2018	129,654	$ 33	236,115	(6,449)	(100,045)
Increase (Decrease) in Stockholders' Equity
Net loss	(5,022)				(5,022)
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		409,060
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	8		8
Compensation expense from grants of common stock options and restricted stock	1,556		1,556
Foreign currency translation	(427)			(427)
Balance (in shares) at Dec. 31, 2018		33,183,178
Balance at Dec. 31, 2018	126,499	$ 33	237,679	(6,876)	(104,337)
Balance (in shares) at Sep. 30, 2018		32,774,118
Balance at Sep. 30, 2018	129,654	$ 33	236,115	(6,449)	(100,045)
Increase (Decrease) in Stockholders' Equity
Net loss	(9,384)
Foreign currency translation	(229)
Balance (in shares) at Mar. 31, 2019		33,347,657
Balance at Mar. 31, 2019	124,465	$ 33	239,806	(6,678)	(108,696)
Balance (in shares) at Dec. 31, 2018		33,183,178
Balance at Dec. 31, 2018	126,499	$ 33	237,679	(6,876)	(104,337)
Increase (Decrease) in Stockholders' Equity
Net loss	(4,362)				(4,362)
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units (in shares)		197,642
Exercise of common stock options, grants of restricted stock awards, and vesting of restricted stock units	116		116
Compensation expense from grants of common stock options and restricted stock	2,011		2,011
Foreign currency translation	198
Forfeiture of restricted stock awards (in shares)		(33,163)
Foreign currency translation and other	201			198	3
Balance (in shares) at Mar. 31, 2019		33,347,657
Balance at Mar. 31, 2019	$ 124,465	$ 33	$ 239,806	$ (6,678)	$ (108,696)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net loss	$ (9,384)	$ (6,867)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	2,369	2,355
Stock compensation expense	4,094	2,698
Provision for inventory allowance	0	1,841
Provision for doubtful accounts	126	181
Deferred tax provision (benefit)	81	(4,915)
Gain on disposal of property and equipment	(6)	(481)
Change in fair value of financial instruments	0	90
Change in fair value of earnout liability	1,400	0
Changes in operating assets and liabilities:
Accounts receivable	(1,425)	5,272
Inventory	(2,937)	8,796
Prepaid and deferred taxes	(46)	(26)
Prepaid expenses and other assets	(352)	3,608
Accounts payable	(2,733)	5,875
Accrued expenses and other current liabilities	772	(11,171)
Distributions payable	(521)	(506)
Deferred revenue	955	0
Payables to sellers	(3,838)	144
Other liabilities	(143)	(372)
Net cash (used in) provided by operating activities	(11,588)	6,522
Investing activities
Increase in intangibles	(14)	(19)
Purchases of property and equipment, including capitalized software	(2,989)	(1,580)
Proceeds from sales of property and equipment	24	662
Maturities of short-term investments	(30,000)	0
Maturities of short-term investments	20,000	0
Net cash used in investing activities	(12,979)	(937)
Financing activities
Proceeds from exercise of common stock options (net of tax)	124	12
Net cash provided by financing activities	124	12
Effect of exchange rate differences on cash and cash equivalents	(83)	(268)
Net (decrease) increase in cash and cash equivalents	(24,526)	5,329
Cash and cash equivalents at beginning of period	58,448	94,348
Cash and cash equivalents at end of period	33,922	99,677
Supplemental disclosure of cash flow information
Cash paid for income taxes, net	$ 558	$ 505

Organization

Organization	6 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Liquidity Services, Inc. (the “Company”) operates a network of ecommerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment. The Company’s marketplaces provide professional buyers access to a global, organized supply of new, surplus, and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on offered assets by providing a liquid marketplace and value-added services that encompass the consultative management, valuation, and sale of surplus assets. The Company provides fully-managed services that include program management, valuation, asset management, reconciliation, returns process management, refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer support, compliance and risk mitigation, as well as self-directed service offerings. The Company organizes the products on its marketplaces into categories across major industry verticals such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, energy equipment, industrial capital assets, fleet and transportation equipment and specialty equipment. The Company’s marketplaces are: www.liquidation.com, www.direct.liquidation.com, www.govdeals.com, www.networkintl.com, www.secondipity.com, www.go-dove.com, and www.auctiondeals.com. The Company also operates a global search engine for listing used machinery and equipment for sale at www.machinio.com. The Company has four reportable segments, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), GovDeals and Machinio. See Note 13 in the Notes to the Consolidated Financial Statements for Segment Information. On July 10, 2018, the Company acquired 100% of Machinio Corp.("Machinio"), a privately-owned company based in Chicago, Illinois, with a second office in Berlin, Germany. Machinio operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. The consideration paid to the sellers was approximately $16.7 million in net cash, equity consideration of approximately $2.0 million , and contingent consideration payable in 2020 in an amount up to $5.0 million . The Company's operations are subject to certain risks and uncertainties, many of which are associated with technology-oriented companies, including, but not limited to, the Company's dependence on use of the Internet, the effect of general business and economic trends, the Company's susceptibility to rapid technological change, actual and potential competition by entities with greater financial and other resources, and the potential for the commercial sellers from which the Company derives a significant portion of its inventory to change the way they conduct their disposition of surplus assets or to otherwise terminate or not renew their contracts with the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal, recurring adjustments considered necessary for a fair presentation have been included. The information disclosed in the notes to the consolidated financial statements for these periods is unaudited. Operating results for the three and six months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending September 30, 2019 or for any future period. In the Consolidated Statements of Operations, revenue from the resale of inventory that the Company purchases from sellers is recognized within “Revenue”. Commission fees from the sale of inventory that the Company sells on a consignment basis and other non-consignment fee revenue, which is made up of subscription fee and service revenue from the Surplus contract in the prior year, is recognized within “Fee Revenue”. Revenue Recognition The Company adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606") effective October 1, 2018. As a result of adopting ASC 606, there have been significant changes to the Company's revenue recognition policy from the policy disclosed in Note 2 -Summary of Significant Accounting Polices in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018. These changes are described below. The Company recognizes revenue when or as performance obligations are satisfied and control is transferred to the customer. Revenue will be recognized in the amount that reflects the consideration to which the Company expects to be entitled. Revenue is also evaluated to determine whether the Company should report the gross proceeds as revenue (when the Company acts as the principal in the arrangement) or the Company should report its revenue on a net basis (when the Company acts as an agent). Specifically, when other parties are involved in providing goods or services to an entity’s customer, the Company must determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself, or to arrange for another party to provide them. The Company evaluates the following factors to determine if it is acting as a principal: (1) whether the Company is primarily responsible for fulfilling the promise to provide the asset or assets; (2) whether the Company has inventory risk of the asset or assets before they are transferred to the Buyer; and (3) whether the Company has discretion in establishing the price for the asset or assets. The Company enters into contracts with Buyers and Sellers. The Company has master agreements with some Sellers pertaining to the sale of a flow of surplus assets over the term of the master agreement, however; a contract for accounting purposes exists when the Company agrees to sell a specific asset or assets. When acting as a principal (a “principal” arrangement), the Company purchases an asset or assets from a Seller and the Company has a performance obligation to sell the asset or assets to a Buyer. For principal arrangements, the Company recognizes as revenue the gross proceeds from the sale, including buyer's premiums, within Revenue. Also, when acting as a principal, the contract with the Seller is not a contract in the scope of the revenue recognition guidance; rather, it is a purchase of inventory. When the Company is acting as an agent (a “consignment” arrangement), its performance obligation is to arrange for the Seller to sell an asset or assets to the Buyer directly. The Company recognizes revenue within Fee Revenue based on the sales commissions that are paid to the Company by the sellers for utilizing the Company's services; in this situation, sales commissions represent a percentage of the gross proceeds from the sale that the seller pays to the Company upon completion of the transaction. In both principal and consignment contracts, the Company sometimes provides distinct services to the Seller, such as returns management or refurbishment of assets. These services are distinct because the Seller could benefit from the services separately from the asset sale, and as such they are treated as separate performance obligations. Some services provided to Sellers are not distinct, like providing access to the Company’s ecommerce marketplaces or promoting the asset or assets for sale, because they could not benefit the Seller separately from the sale of the asset or assets. The consideration received from Buyers and Sellers includes (1) buyer’s premiums, (2) seller’s commissions, and (3) fees for services, including reimbursed expenses. Consideration is variable based on units, final auction prices, or other factors, until the Buyer’s purchase of the asset or assets is complete, or the service has been provided. Recognition of variable consideration that is based on the results of auctions or purchases by Buyers is constrained until those transactions have been finalized. The Company estimates and recognizes amounts related to sales returns, discounts or rebates promised to customers, and reimbursed expenses. The total transaction price is allocated to each distinct performance obligation and revenue is recognized when or as the performance obligation is satisfied. Variable consideration is allocated to individual performance obligations when the variable consideration is related to satisfying that performance obligation and consistent with the allocation objective. The Company's revenue is generally recorded subsequent to receipt of payment authorization, utilizing credit cards, wire transfers and PayPal, an Internet based payment system, as methods of payments. Goods are generally not shipped before payment is received. For certain transactions, payment is due upon invoice and the payment terms vary depending on the business segment. The Company collects and remits sales taxes on merchandise that it purchases and sells and has elected the practical expedient to report such amounts under the net method in its Consolidated Statements of Operations. The Company also provides shipping and handling services in some arrangements and has elected the practical expedient to treat those activities as a fulfillment cost. If the Company is acting as a principal for the combined obligation, amounts received from customers for shipping are recognized as revenue, and amounts paid for shipping are recognized as costs of goods sold. If the Company is acting as an agent for the combined obligation, shipping revenue and costs will be netted and recognized within costs of goods sold. The Company’s performance obligations are satisfied when control of the asset is transferred to the Buyer or when the service is completed. The Company determines when control has transferred by evaluating the following five indicators: (1) whether the Company has a present right to payment for the asset or assets; (2) whether the Buyer has legal title to the asset; (3) whether the Buyer has physical possession of the asset or assets; (4) whether the Buyer has the significant risks and rewards of ownership; and (5) whether the Buyer has accepted the asset or assets. For the Company's Machinio business segment, the performance obligation is satisfied over time as the Company provides the promotional placement services over the term of the subscription. At March 31, 2019 , the Machinio business segment had a remaining performance obligation of $3.1 million that the Company expects the majority of this will be recognized as revenue over the next 12 months. Cost of Goods Sold Cost of goods sold includes the costs of purchasing and transporting property for auction, credit card transaction fees and shipping and handling costs. The Company purchases the majority of its inventory at a percentage of the vendor's last retail price under certain commercial contracts within its RSCG segment, and at specifically negotiated prices within its CAG segment. Title for the inventory passes to the Company at the time of purchase and the Company bears the risks and rewards of ownership. The Company does not have title to assets sold on behalf of its commercial or government sellers when it receives only sales commission revenue and, as such, recognizes no inventory or the corresponding cost of goods sold from inventory purchases associated with those sales. Contract Assets Contract assets reflect an estimate of expenses that will be reimbursed upon settlement with Seller. The contract asset balance was $0.7 million as of October 1, 2018 and $0.7 million as of March 31, 2019 and is included in the line item "Prepaid expenses and other current assets" on the consolidated balance sheet. Contract Costs Contract costs relate to sales commissions paid on consignment contracts that are capitalized. Contract costs are amortized over the expected life of the customer contract. The contract cost balance was approximately $0.1 million as of October 1, 2018 and $0.3 million as of March 31, 2019 and is included in the line item "Prepaid expenses and other current assets" and "Other assets" on the consolidated balance sheet. Amortization expense was immaterial during the three and six months ended March 31, 2019. Promissory Note On September 30, 2015, the Company sold certain assets related to its Jacobs Trading business to Tanager Acquisitions, LLC (the ‘‘Buyer’’). In connection with the disposition, the Buyer assumed certain liabilities related to the Jacobs Trading business. The Buyer issued a $12.3 million five -year interest bearing promissory note to the Company. Of the $12.3 million , $4.0 million has been repaid as of March 31, 2019 . Of the remaining $8.3 million , $6.3 million is recorded on the consolidated balance sheet in Other assets, and $2.0 million in Prepaid expenses and other current assets as of March 31, 2019 based on the scheduled repayment dates. Risk Associated with Certain Concentrations The Company does not perform credit evaluations for the majority of its buyers. However, most sales are recorded subsequent to payment authorization being received. As a result, the Company is not subject to significant collection risk, as most goods are not shipped before payment is received. For consignment sales transactions, funds are typically collected from buyers and are held by the Company on the sellers' behalf. The funds are included in Cash and cash equivalents in the Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business. The amount of cash held on behalf of sellers is recorded within Payables to sellers in the accompanying Consolidated Balance Sheets. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks over FDIC limits, certificates of deposit, and accounts receivable. The Company deposits its cash with financial institutions that the Company considers to be of high credit quality. During the six months ended March 31, 2019 , the Company had one material vendor contract with the Department of Defense (DoD) under which it acquired, managed and sold government property, the Scrap Contract. Revenue from the sale of property acquired under the Scrap Contract accounted for approximately 7.6% and 10.0% of the Company's consolidated revenue for the three months ended March 31, 2019 and 2018 , respectively, and for approximately 7.6% and 9.2% of the Company's consolidated revenue for the six months ended March 31, 2019 and 2018, respectively. This contract is included within the Company's CAG segment. See Note 3, Significant Contracts, for information related to the Company's prior significant Surplus contact with the DoD, which was completed in fiscal 2018. Additionally, the Company has a vendor contract with Amazon.com, Inc. under which the Company acquires and sells commercial merchandise. Transactions under this contract represented approximately 49.4% and 28.7% of cost of goods sold for the three months ended March 31, 2019 and 2018 , respectively, and 44.9% and 24.1% of cost of goods sold for the six months ended March 31, 2019 and 2018, respectively. This contract is included within the Company's RSCG segment. Earnings per Share The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board ("FASB") Topic 260 Earnings Per Share (“ASC 260”). Under ASC 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock units. Diluted net income (loss) per share reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options and unvested restricted stock units. The dilutive effect of unexercised stock options and unvested restricted stock units was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options, and the amount of compensation cost for future service not yet recognized by the Company are assumed to be used to repurchase shares of the Company’s common stock. Stock options and restricted stock units are not included in the computation of diluted net income (loss) per share when they are antidilutive. For the three and six months ended March 31, 2019 and 2018 , the basic and diluted weighted average common shares were the same because the inclusion of dilutive securities in the computation of diluted net income would have been anti-dilutive. See Note 7 for the amounts of outstanding stock options, restricted stock awards and restricted stock units that could potentially dilute net income (loss) per share in the future. Recent Accounting Pronouncements Accounting Standards Adopted On October 1, 2018, the Company adopted ASC 606 using the modified retrospective transition method. The Company applied the new revenue standard to all contracts that were not completed as of October 1, 2018 on a modified retrospective basis and recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative period information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to the consolidated October 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands): Balance at September 30, 2018 Adjustment due to adoption of ASC 606 Balance as adjusted at October 1, 2018 Prepaid expenses and other current assets $ 7,816 $ 671 $ 8,487 Other assets $ 14,124 $ 59 $ 14,183 Retained earnings $ (100,045 ) $ 730 $ (99,315 ) The impact of adopting ASC 606 on the Company’s consolidated statement of operations and the consolidated balance sheet for the period ended March 31, 2019 was as follows (in thousands): Three months ended March 31, 2019 Six months ended March 31, 2019 As reported Balance without adoption of ASC 606 Effect of change Higher/(lower) As reported Balance without adoption of ASC 606 Effect of change Higher/(lower) Consolidated statement of operations: Fee revenue $ 19,445 $ 19,293 $ 152 $ 37,763 $ 37,757 $ 6 Consolidated balance sheet: Prepaid expenses and other current assets $ 8,574 $ 7,819 $ 755 $ 8,574 $ 7,819 $ 755 Other assets $ 14,451 $ 14,248 $ 203 $ 14,451 $ 14,248 $ 203 Accumulated deficit $ (108,696 ) $ (107,738 ) $ (958 ) $ (108,696 ) $ (107,738 ) $ (958 ) In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting . ASU 2017-09 provides guidance about which changes to terms or conditions of share-based payment awards require the application of modification accounting in Topic 718, Compensation - Stock Compensation . The ASU was adopted on October 1, 2018 and the Company will apply the guidance in ASU 2017-09 on a prospective basis to its award modifications. No material impacts have been noted to date. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the cost of the benefits in the income statement. Under this standard, employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The adoption of ASU 2017-07 on October 1, 2018, using the retrospective method, did not have a material impact on the Company's results of operations. As a result of adopting this standard $90 thousand and $182 thousand for three and six months ended March 31, 2018, respectively, were reclassified in the consolidated statement of operations from "General and administrative", a component of loss from operations, to "Interest and other income, net", which is included below loss from operations. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The ASU was adopted on October 1, 2018 and the Company will apply the guidance in ASU 2017-01 on a prospective basis when entering into acquisitions of assets or businesses. No material impacts have been noted to date. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory . The new standard requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period the sale or transfer occurs. The exception to recognizing the income tax effects of intercompany sales or transfers of assets remains in place for intercompany inventory sales and transfers. The adoption of ASU 2016-16 on October 1, 2018 did not have an impact on the Company’s consolidated statement of operations. During 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments and ASU 2016-18, Restricted Cash . These ASUs clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows and requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. These standards were adopted on October 1, 2018 on a retrospective basis and there was no impact on the Company's consolidated statement of cash flows. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirement for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU will become effective for the Company beginning October 1, 2020. The Company is currently evaluating the effect that the ASU might have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 amends the existing accounting standard for defined benefit plans by removing, modifying, and adding certain disclosures. This ASU will become effective for the Company beginning October 1, 2021 with early adoption permitted. The Company is currently evaluating the timing of adoption the new guidance as well as the impact it may have on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements . ASU 2018-13 amends the existing accounting standard for fair value measurement by removing, modifying, and adding certain disclosures. This ASU will become effective for the Company beginning October 1, 2020 with early adoption permitted. The Company is currently evaluating the timing of adopting the new guidance as well as the impact it may have on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-based Payment Accounting. ASU 2018-07 amends the existing accounting standards for share-based payments to nonemployees. ASU 2018-07 applies to all share based payment transactions in which a grantor acquires goods or services to be used or consumed in its own operation by issuing share-based payment awards. Additionally, this guidance clarifies that Topic 718 does not apply to share based payments used to effectively provide financing to the issuer or awards granted in conjunction with selling goods or services to customers as part of a contract accounted under ASC 606. ASU 2018-07 will become effective for the Company beginning October 1, 2019. The Company is currently evaluating the effect the adoption of the standard is expected to have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 allows entities to elect to classify from accumulated other comprehensive income (loss) to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act") enacted on December 22, 2017. An entity that does not elect to reclassify the income tax effects of the Tax Act shall disclose in the period of adoption a statement that the election was not made. This guidance will become effective for the Company beginning on October 1, 2019. The Company is currently evaluating whether it will make an election to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . Under ASU 2017-04 the entity is required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity is required to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity is required to consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This guidance will become effective for the Company beginning on October 1, 2020. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the adoption of the standard is expected to have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , or ASC 842. ASC 842, including all the amendments and guidance, will change the way the Company recognizes its leased assets. It will require organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities representing the rights and obligations created by those leases. ASC 842 will also require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for the Company beginning on October 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into, after either the adoption date or the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of aggregating its worldwide lease portfolio and is evaluating the potential to use software solutions in its adoption of ASC 842 and for its subsequent lease accounting requirements. Once completed, the Company will elect a transition method for adoption and conclude on whether to make use of the available practical expedients. The adoption of ASC 842 will result in the recognition of right-of-use assets and lease liabilities on its Consolidated Balance Sheets, and will require that the Company make quantitative and qualitative disclosures about its leases. Additional impacts, which may be material, may be identified as the Company completes its adoption process.

Significant Contracts

Significant Contracts	6 Months Ended
	Mar. 31, 2019
Contractors [Abstract]
Significant Contracts	Significant Contracts Historically, the Company had two material vendor contracts with the DoD, the Scrap Contract and the Surplus Contract. Under the Scrap Contract, the Company is the remarketer of all DoD non-electronic scrap turned into the Defense Logistics Agency (DLA) available for sale within the United States, Puerto Rico, and Guam. The current Scrap Contract was awarded to the Company in April 2016. The Scrap Contract has a 36 -month base term that commenced in the first quarter of fiscal year 2017, with two 12 -month extension options exercisable by the DLA. The base term of the Scrap Contract will expire on September 30, 2019. The Company pays a revenue-sharing payment to the DLA under this contract equal to 64.5% of the gross resale proceeds of the scrap property, and the Company bears all of the costs for the sorting, merchandising and sale of the property. The contract contains a provision permitting the DLA to terminate the contract for convenience upon written notice to the Company. Revenue from the Scrap Contract accounted for approximately 7.6% and 10.0% of the Company's consolidated revenue for the three months ended March 31, 2019 and 2018 , respectively, and 7.6% and 9.2% of the Company's consolidated revenue for the six months ended March 31, 2019 and 2018 , respectively. The Surplus Contract was a competitive-bid contract under which the Company acquired, managed and sold usable DoD surplus personal property turned into the DLA. Surplus property generally consisted of items determined by the DoD to be no longer needed, and not claimed for reuse by any federal agency, such as electronics, industrial equipment, office supplies, scientific and medical equipment, aircraft parts, clothing and textiles. The Surplus Contract required the Company to purchase all usable surplus property offered to the Company by the DoD at 4.35% of the DoD's original acquisition value. On October 11, 2017, the DLA published a Request for Technical Proposal (“RFTP”) and draft Invitation for Bid (IFB) for the sale of surplus, useable non-rolling stock property. The RFTP and IFB related to the DLA’s award of two new term surplus contracts. On December 5, 2017, the DLA determined that the Company was not the high bidder for either of the two contracts. The Company made its final inventory purchase under the Surplus Contract during December 2017, and as of June 30, 2018, had completed its wind-down of operations under the Surplus Contract. Revenue from the Surplus Contract accounted for approximately zero and 19.3% of the Company's consolidated revenue for the three months ended March 31, 2019 and 2018, respectively, and zero and 22.9% of the Company's consolidated revenue for the six months ended March 31, 2019 and 2018 , respectively.

Goodwill

Goodwill	6 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill The goodwill of acquired companies is primarily related to the acquisition of an experienced and knowledgeable workforce. The following table presents changes in the carrying amount of goodwill by reportable segment: Goodwill (in thousands) CAG GovDeals Machinio Total Balance at September 30, 2017 $ 21,657 $ 23,731 $ — $ 45,388 Business acquisition — — 14,558 14,558 Translation adjustments (127 ) — — (127 ) Balance at September 30, 2018 $ 21,530 $ 23,731 $ 14,558 $ 59,819 Translation adjustments (129 ) — — (129 ) Balance at March 31, 2019 $ 21,401 $ 23,731 $ 14,558 $ 59,690 Goodwill is tested for impairment at the beginning of the fourth quarter and during interim periods whenever events or circumstances indicate that the carrying value may not be recoverable. The Company did not identify any indicators of impairment that required performing a step one evaluation during the six months ended March 31, 2019 .

Intangible Assets

Intangible Assets	6 Months Ended
	Mar. 31, 2019
Finite-Lived Intangible Assets, Net [Abstract]
Intangible Assets	Intangible Assets The components of identifiable intangible assets as of March 31, 2019 and September 30, 2018 are as follows: March 31, 2019 September 30, 2018 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (dollars in thousands) Contract intangibles 6 $ 3,100 $ (388 ) $ 2,712 $ 3,100 $ (129 ) $ 2,971 Technology 5 2,700 (405 ) 2,295 2,700 (135 ) 2,565 Patent and trademarks 3 - 10 2,341 (640 ) 1,701 2,269 (439 ) 1,830 Total intangible assets $ 8,141 $ (1,433 ) $ 6,708 $ 8,069 $ (703 ) $ 7,366 Future expected amortization of intangible assets at March 31, 2019 is as follows: Future Amortization Years ending September 30, (in thousands) 2019 Remaining six months $ 672 2020 1,343 2021 1,332 2022 1,320 2023 1,176 2024 and thereafter 865 Total $ 6,708 Intangible assets amortization expense was approximately $0.34 million and $0.02 million for the three months ended March 31, 2019 and 2018 , and $0.67 million and $0.04 million for the six months ended March 31, 2019 and 2018, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On December 22, 2017, the Tax Act was signed into law. The Tax Act reduces the corporate tax rate from 35% to 21% . During the three months ending December 31, 2017, the Company revised its estimated annual effective tax rate to reflect this change in the statutory rate. The rate change was administratively effective at the beginning of the Company's 2018 fiscal year, using a blended rate of 24.5% . At September 30, 2018, the Company had not yet completed its accounting for the tax effects of the Tax Act; however, the Company recorded a provisional benefit of $10.7 million in 2018 for the remeasurement of its deferred tax balance and recognition of the realizability of the deferred tax assets. During the three months ended December 31, 2018, the Company completed its accounting for the tax effects of the Tax Act and determined no change to the amount recorded in fiscal year 2018 was required. The international provisions of the Tax Act establish a territorial tax system and subject certain foreign earnings on which U.S. tax is currently deferred to a one-time transition tax. During the three months ended December 31, 2018, the Company completed its analysis of foreign earnings and profits and determined that no one-time transition tax was due. As a result, the Company has not recorded any amount in its financial statements for fiscal year 2018 or the six months ended March 31, 2019 for such transition tax. The Tax Act subjects a U.S. shareholder to a minimum tax on “global intangible low-taxed income” (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI resulting from those items in the year the tax is incurred. The Company has elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. The Company’s interim effective income tax rate is based on management’s best current estimate of the Company's expected annual effective income tax rate. The Company recorded a pre-tax loss in the first six months of fiscal year 2019 and its corresponding effective tax rate is approximately -6.8% . Tax expense in the current period is due to state and foreign taxes paid. The effective tax rate differed from the statutory federal rate of 21% primarily as a result of the valuation allowance charge on current year losses and the impact of foreign, state, and local income taxes and permanent tax adjustments. The Company applies the authoritative guidance related to uncertainty in income taxes. ASC Topic 740, Income Taxes , states that a benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, on the basis of technical merits. The Company records unrecognized tax benefits as a reduction to its deferred tax asset for its net operating loss carryforward. The Company identified no new uncertain tax positions during the six months ended March 31, 2019. The Company’s policy is to recognize interest and penalties in the period in which they occur in the income tax provision. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions and in foreign jurisdictions, primarily Canada and the United Kingdom. As of March 31, 2019, none of the Company's federal or state income tax returns are under examination. The statute of limitations for U.S. federal income tax returns for years prior to fiscal 2015 is now closed. However, certain tax attribute carryforwards that were generated prior to fiscal 2015 may be adjusted upon examination by tax authorities if they are utilized.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity The changes in stockholders’ equity for the prior year comparable period is as follows (in thousands): Common Stock Shares Amount Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Balance at September 30, 2017 31,503,349 $ 29 $ 227,264 $ (6,431 ) $ (88,226 ) $ 132,636 Cumulative adjustment related to adoption of ASU 2016-09 — — 100 — (207 ) (107 ) Net loss — — — — (1,212 ) (1,212 ) Exercise of common stock options and vesting of restricted stock 386,330 — — — — — Compensation expense and incremental tax benefit from grants of common stock options and restricted stock — — 1,262 — — 1,262 Foreign currency translation — — — (51 ) (6 ) (57 ) Balance at December 31, 2017 31,889,679 $ 29 $ 228,626 $ (6,482 ) $ (89,651 ) $ 132,522 Net loss — — — — (5,655 ) (5,655 ) Exercise of common stock options and vesting of restricted stock 103,398 — 12 — — 12 Compensation expense and incremental tax benefit from grants of common stock options and restricted stock — — 1,212 — — 1,212 Foreign currency translation — — — 34 12 46 Balance at March 31, 2018 31,993,077 $ 29 $ 229,850 $ (6,448 ) $ (95,294 ) $ 128,137 2006 Omnibus Long-Term Incentive Plan Under the 2006 Omnibus Long-Term Incentive Plan, as amended (the 2006 Plan), 13,000,000 shares of common stock were available for issuance as of September 30, 2016. On February 23, 2017, at the Company's annual meeting of stockholders, the stockholders approved amendments to the 2006 Plan to increase the number of shares available for issuance under the 2006 Plan by 3,300,000 , to a total of 16,300,000 shares. The 2006 Plan has a fungible share pool so that awards other than options or stock appreciation rights granted would be counted as 1.5 shares from the shares reserved for issuance. The maximum number of shares subject to options or stock appreciation rights that can be awarded under the 2006 Plan to any person is 1,000,000 per year. The maximum number of shares that can be awarded under the 2006 Plan to any person, other than pursuant to an option or stock appreciation right, is 700,000 per year. The following table presents the number of stock options and shares of restricted stock granted to employees under the Company's 2006 Plan and the grant date fair value of those stock awards for the periods presented: Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Stock options: Time-based 11,816 20,826 492,966 233,346 Weighted average grant date fair value $ 4.82 $ 4.26 $ 2.69 $ 2.00 Market-based and performance-based — — 481,150 318,780 Weighted average grant date fair value $ — $ — $ 2.66 $ 1.59 Restricted stock: Time-based 66,528 220,181 201,728 251,221 Weighted average grant date fair value $ 8.50 $ 6.95 $ 6.75 $ 6.65 Market-based and performance-based 55,000 199,780 130,200 246,340 Weighted average grant date fair value $ 7.40 $ 7.33 $ 5.66 $ 6.53 Stock options and restricted stock generally vest over four years. The fiscal year 2019 market-based options and restricted stock units will vest in installments based on the total shareholder return of the Company's common stock over a four -year performance period. The performance based restricted stock awards will vest in installments based on achievement of certain annual revenue and adjusted EBITDA targets through calendar year 2021, in each case, subject to each recipient's continued employment with the Company. In determining the fair value for stock options, volatility rates over the last three years have ranged from 49.71% to 54.93% , the dividend rate has been 0% and the risk free interest rates have ranged from 1.65% to 2.78% . Cash-Settled Stock Appreciation Rights The Company issues cash-settled stock appreciation rights to non-executives with restrictions that lapse upon either the passage of time (service vesting), achievement of performance targets (performance vesting), achievement of market conditions (market vesting) or some combination of these conditions. The stock appreciation rights that include only service vesting conditions generally vest over a period of one to four years conditioned on continued employment for the incentive period. For performance vesting, stock appreciation rights generally vest and pay out on the achievement of financial metrics over a four year period conditioned on continued employment for the incentive period. Cash-settled stock appreciation rights are recorded as liability awards. The Company did not issue any cash-settled stock appreciation rights during the three months ended March 31, 2019 . During the six months ended March 31, 2019 , the Company issued 95,000 cash-settled stock appreciation rights at an exercise price of $6.11 . During the three months ended March 31, 2019 , 51,614 cash-settled stock appreciation rights were exercised and 21,868 cash-settled stock appreciation rights were canceled. During the six months ended March 31, 2019 , 101,170 cash-settled stock appreciation rights were exercised and 388,048 cash-settled stock appreciation rights were canceled. As of March 31, 2019, 539,987 cash-settled stock appreciation rights were outstanding. During the comparable period in fiscal year 2018, the Company did not issue any cash-settled stock appreciation rights. During the three months ended March 31, 2018, 33,520 cash-settled stock appreciation rights were exercised and 177,947 cash-settled stock appreciation rights were canceled. During the six months ended March 31, 2018, 83,002 cash-settled stock appreciation rights were exercised and 272,904 cash-settled stock appreciation rights were canceled. As of March 31, 2018, 1,097,727 cash-settled stock appreciation rights were outstanding. Share Repurchase Program The Company is authorized to repurchase issued and outstanding shares of its common stock under a share repurchase program approved by the Company's Board of Directors. Share repurchases may be made through open market purchases, privately negotiated transactions or otherwise, at times and in such amounts as management deems appropriate. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements and other market conditions. The repurchase program may be discontinued or suspended at any time and will be funded using available cash. The Company's Board of Directors reviews the share repurchase program from time to time, the last such review having occurred in May 2016. The Company did not repurchase shares under this program during the six months ended March 31, 2019 or 2018. As of March 31, 2019 , the Company may repurchase an additional $10.1 million in shares under this program.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement The Company measures and records in the accompanying consolidated financial statements certain assets and liabilities at fair value on a recurring basis. Authoritative guidance issued by the FASB establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 Quoted market prices in active markets for identical assets or liabilities; Level 2 Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. During the year ended September 30, 2018, as a result of the acquisition of Machinio, the Company recorded contingent consideration which is measured at fair value (Level 3) at March 31, 2019 and September 30, 2018. The Company estimated the fair value of the contingent consideration using a Monte Carlo simulation. The simulation estimated Machino's EBITDA over the earn out period using a market-based volatility factor and market interest rates resulting in an average EBITDA, which then a present value factor was applied based on the expected settlement date of the contingent consideration. The liability for this consideration is included in Deferred taxes and other long-term liabilities in the Consolidated Balance Sheets. During the six months ended March 31, 2018, the Company had financial assets measured at fair value (Level 3) that represented the value of rights the Company held from its participation in certain principal transactions in the Company's commercial business. The Company no longer held these assets at September 30, 2018. The Company has investments of $30 million and $20 million at March 31, 2019 and September 30, 2018, respectively, in certificates of deposit with maturities of six months or less, and interest rates between 2.2% and 2.8% . These assets were measured at fair value at March 31, 2019 and September 30, 2018 and were classified as Level 1 assets within the fair value hierarchy. The changes in the earn-out liability and financial assets measured at fair value using Level 3 inputs to determine fair value for the six months ended March 31, 2019 and 2018, respectively, are as follows (in thousands): Contingent Consideration Balance at September 30, 2018 $ 1,300 Settlements — Change in fair value 1,400 Balance at March 31, 2019 $ 2,700 The increase in the fair value is primarily due to an increase in Machinio's estimated EBITDA over the earn out period, which was the result of realized EBITDA for the three months ended March 31, 2019 exceeding the previous estimate. Secondary factors for the increase in fair value relate to the present value factor, which was impacted by a shorter period until the earn out payment date, as well as a change in market conditions that reduced interest rates and the weighted average cost of capital. Financial Instruments Balance at September 30, 2017 $ 491 Settlements (401 ) Change in fair value (90 ) Balance at March 31, 2018 $ — When valuing its Level 3 liability, management’s estimation of fair value is based on the best information available in the circumstances and may incorporate management's own assumptions around market demand which could involve a level of judgment, taking into consideration a combination of internal and external factors. Changes in the fair value of the Company's Level 3 asset and liability are recorded in Other operating expenses in the Consolidated Statements of Operations. The Company’s financial assets and liabilities not measured at fair value are cash and cash equivalents (which includes cash and commercial paper with original maturities of less than 90 days), accounts receivable, a promissory note and accounts payable. The Company believes the carrying values of these instruments approximate fair value. At March 31, 2019 and September 30, 2018, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis.

Defined Benefit Pension Plan

Defined Benefit Pension Plan	6 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
Defined Benefit Pension Plan	Defined Benefit Pension Plan Certain employees of Liquidity Services UK Limited (“GoIndustry”), which the Company acquired in July 2012, are covered by the Henry Butcher Pension Fund and Life Assurance Scheme (the “HB Pension Fund”), a qualified defined benefit pension plan. The net periodic benefit recognized for the three and six months ended March 31, 2019 and 2018 included the following components: Three Months Ended March 31, Six Months Ended March 31, Qualified Defined Benefit Pension Plan 2019 2018 2019 2018 (dollars in thousands) Service cost $ — $ — $ — $ — Interest cost 154 165 311 335 Expected return on plan assets (229 ) (251 ) (473 ) (509 ) Settlement cost — (4 ) — (8 ) Total net periodic (benefit) $ (75 ) $ (90 ) $ (162 ) $ (182 ) As a result of the adoption of ASU 2017-07, the components of net periodic benefit other than the service cost component are recorded in Interest and other income, net in the Consolidated Statements of Operations.

Guarantees

Guarantees	6 Months Ended
	Mar. 31, 2019
Guarantees [Abstract]
Guarantees	Guarantees During the second quarter of 2015, the Company issued a guarantee to GoIndustry (the "Subsidiary") and the Trustees (the “Trustees”) of the HB Pension Fund. Under the arrangement, the Company irrevocably and unconditionally (a) guarantees to the Trustees punctual performance by the Subsidiary of all its Guaranteed Obligations, defined as all present and future obligations and liabilities (whether actual or contingent and whether owed jointly or severally in any capacity whatsoever) of the Company to make payments to the HB Pension Fund up to a maximum of 10 million British pounds, (b) undertakes with the Trustees that, whenever the Subsidiary does not pay any amount when due in respect of its Guaranteed Obligations, it must immediately on demand by the Trustees pay that amount as if it were the principal obligor; and (c) indemnifies the Trustees as an independent and primary obligation immediately on demand against any cost, charge, expense, loss or liability suffered or incurred by the Trustees if any payment obligation guaranteed by it is or becomes unenforceable, invalid or illegal; the amount of the cost, charge, expense, loss or liability under this indemnity will be equal to the amount the Trustees would otherwise have been entitled to recover on the basis of a guarantee. The guarantee is a continuing guarantee that will extend to the ultimate balance of all sums payable by the Company in respect of its Guaranteed Obligations. As of March 31, 2019 and September 30, 2018, the Company's plan was in an overfunded status as the plan's assets exceeded the plan liabilities. The funded status of the HB Pension Fund as of September 30, 2018 , was disclosed in Note 13, Defined Benefit Pension Plan, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018 .

Business Realignment Expenses

Business Realignment Expenses	6 Months Ended
	Mar. 31, 2019
Restructuring and Related Activities [Abstract]
Business Realignment Expenses	Business Realignment Expenses During the fourth quarter of fiscal year 2017 the Company began to restructure its CAG business, resulting in severance costs incurred and the closure of several offices and legal entities in Europe and Asia for total restructuring costs of approximately $1.0 million . The Company continued to implement its CAG cost cutting initiatives during the year ended September 30, 2018. As discussed in Note 3, Significant Contracts, the Company was not the high bidder for the new surplus contracts, and completed winding down its operations under the Surplus Contract during the year ended September 30, 2018. As a result, the Company recognized an additional $1.7 million of restructuring costs in fiscal 2018. During the six months ended March 31, 2018 the Company recorded $1.3 million in restructuring costs, $0.8 million of which related to severance and occupancy costs for the Surplus Contract. The remaining restructuring balance at March 31, 2019 of $0.3 million in occupancy related charges is expected to be paid by fiscal 2020. During fiscal year 2017, the Company reorganized its IronDirect business. As a result, the Company recorded approximately $1.1 million of restructuring charges in the aggregate through the year ended September 30, 2018 related to this restructuring. The Company continued its reorganization of the IronDirect business during the six months ended March 31, 2019 and decided to exit the business, resulting in severance costs recorded of approximately $0.2 million . The Company fully exited the IronDirect business and wound down its operations during January 2019. The balance was paid out as of March 31, 2019. In June 2017, the Company entered into an agreement to sub-lease office space at 6931 Arlington Road, Bethesda, Maryland. On the sub-lease commencement date, the Company relocated its headquarters from 1920 L Street NW, Washington DC, to its current Bethesda location and recognized a $2.0 million cease-use charge in its consolidated statements of operations at September 30, 2017. At September 30, 2018, the remaining cease-use accrual was approximately $0.8 million . During the six months ended March 31, 2019 , the Company paid down the cease-use charge by approximately $0.6 million . The remaining balance of approximately $0.2 million is expected to be paid during fiscal 2019. This activity is presented under occupancy cost in the table below. During the six months ended March 31, 2018, the Company recognized $0.5 million in severance cost primarily related to the restructuring of its Corporate Information Technology department. This cost is recorded within the Corporate & Other line item below. Business realignment expenses were as follows for the periods presented (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Employee severance and benefit costs: CAG $ — $ 130 $ — $ 881 Corporate & Other — — 170 474 Total employee severance and benefit costs — 130 170 1,355 Occupancy and other costs: CAG 5 340 51 434 Corporate & Other — 7 134 35 Total occupancy and other costs 5 347 185 469 Total business realignment expenses $ 5 $ 477 $ 355 $ 1,824 Business realignment expenses per the table above are recorded in Other operating expenses in the Consolidated Statements of Operations. The table below sets forth the significant components of and activity in the liability for business realignment initiatives during the periods presented, on a segment and consolidated basis: (in thousands) Liability Balance at September 30, 2017 Business Realignment Expenses Cash Payments Liability Balance at September 30, 2018 Business Realignment Expenses Cash Payments Liability Balance at March 31, 2019 Employee severance and benefit costs: CAG $ 793 $ 979 $ (1,683 ) $ 89 $ — $ (89 ) $ — Corporate & Other 399 472 (850 ) 21 170 (191 ) $ — Total employee severance and benefit costs $ 1,192 $ 1,451 $ (2,533 ) $ 110 $ 170 $ (280 ) $ — Occupancy and other costs: CAG — 739 (280 ) 459 51 (254 ) $ 256 Corporate & Other 1,988 (248 ) (933 ) 807 134 (747 ) $ 194 Total occupancy and other costs $ 1,988 $ 491 $ (1,213 ) $ 1,266 $ 185 $ (1,001 ) $ 450 Total business realignment $ 3,180 $ 1,942 $ (3,746 ) $ 1,376 $ 355 $ (1,281 ) $ 450

Legal Proceedings

Legal Proceedings	6 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings 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. There are no claims or actions pending or threatened against the Company that, if adversely determined, would in our judgment have a material adverse effect on the Company.

Segment Information

Segment Information	6 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Segment Information	Segment Information The Company provides results in four reportable operating segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG) and Machinio. The GovDeals, CAG, RSCG and Machinio segments constitute approximately 99.6% of the Company's revenue during the six months ended March 31, 2019 . Each reportable segment offers separately branded marketplaces to enable sellers to achieve their respective channel marketing objectives to reach buyers. Across its segments, the Company offers its sellers two primary transaction models, as well as a suite of services, and its revenues vary depending upon the models employed and the level of service required. A description of the reportable segments is provided below: • The GovDeals reportable segment provides self-directed service offerings in which sellers list their own assets, and it consists of marketplaces that enable local and state government entities, including city, county and state agencies, as well as commercial businesses located in the United States and Canada, to sell surplus and salvage assets. GovDeals also offers a suite of marketing services to sellers. This segment includes the Company's GovDeals.com and AuctionDeals.com marketplaces. • The CAG reportable segment provides fully-managed offerings to sellers and consists of marketplaces that enable federal government agencies, as well as commercial businesses, to sell surplus, salvage, and scrap assets. Sales of assets procured through our Surplus Contract, which wound down during 2018, and our Scrap Contract, are conducted through the Government Liquidation marketplace included in this segment. CAG also offers a suite of services that includes marketing services, surplus management and asset valuation. Commercial sellers are located in the United States, Europe, Australia and Asia. This segment includes the Company's Network International, GoIndustry DoveBid, and Government Liquidation marketplaces. • The RSCG reportable segment consists of marketplaces that enable corporations located in the United States and Canada to sell surplus and salvage consumer goods and retail capital assets. RSCG also offers a suite of services that includes returns management, asset recovery, and ecommerce services. This segment includes the Company's Liquidation.com, Liquidation.com DIRECT, and Secondipity marketplaces. • The Machinio reportable segment operates a global online platform for listing used equipment for sale in the construction, machine tool, transportation, printing and agriculture sectors. Machinio was acquired by the Company in July 2018. Corporate & Other primarily consists of the Company's IronDirect operating segment that was not individually significant as a reportable operating segment as well as elimination adjustments. During January 2019, the Company exited out of the IronDirect business and fully wound down its operations. Iron Direct offered buyers access to construction equipment, parts and services through a single ecommerce marketplace. Decisions concerning the allocation of the Company’s resources are made by the Company’s Chief Operating Decision Maker ("CODM"), which is the Company's Chief Executive Officer, with oversight by the Board of Directors. The Company reports segment information based on the internal performance measures used by the CODM to assess the performance of each operating segment in a given period. In connection with that assessment, the CODM uses segment gross profit to evaluate the performance of each segment. Segment gross profit is calculated as total revenue less cost of goods sold (exclusive of depreciation and amortization) and seller distributions. The amount of our revenue that came from sales outside of the United States for the three months ended March 31, 2019 and 2018 was 14.6% and 11.1% , respectively, and 15.4% and 12.2% for the six months ended March 31, 2019 and 2018, respectively. The following table sets forth certain financial information for the Company's reportable segments and Corporate & Other (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 GovDeals: Revenue $ — $ — $ — $ — Fee revenue 7,697 7,092 15,355 14,133 Total revenue 7,697 7,092 15,355 14,133 Gross profit $ 7,042 $ 6,589 $ 14,103 $ 13,132 CAG: Revenue $ 7,498 $ 19,273 $ 16,727 $ 40,823 Fee revenue 6,186 5,884 12,438 16,396 Total revenue 13,684 25,157 29,165 57,219 Gross profit $ 8,614 $ 12,458 $ 17,496 $ 30,062 RSCG: Revenue $ 29,823 $ 22,898 $ 55,894 $ 40,075 Fee revenue 4,188 4,016 7,595 7,324 Total revenue 34,011 26,914 63,489 47,399 Gross profit $ 12,287 $ 8,616 $ 21,836 $ 15,344 Machinio: Revenue $ — $ — $ — $ — Fee revenue 1,374 — 2,366 — Total revenue 1,374 — 2,366 — Gross Profit $ 1,265 $ — $ 2,143 $ — Corporate & Other: Revenue $ 34 $ 933 $ 469 $ 2,486 Fee revenue — 1 9 3 Total revenue 34 934 478 2,489 Gross profit $ 10 $ (152 ) $ 113 $ (827 ) Consolidated: Revenue $ 37,355 $ 43,104 $ 73,090 $ 83,384 Fee revenue 19,445 16,993 37,763 37,856 Total revenue 56,800 60,097 110,853 121,240 Gross profit $ 29,218 $ 27,511 $ 55,691 $ 57,711 The following table presents a reconciliation between gross profit used in the reportable segments as well as Corporate & Other and the Company's consolidated results (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Reconciliation: Gross profit $ 29,218 $ 27,511 $ 55,691 $ 57,711 Operating expenses 32,353 32,870 63,696 68,155 Other operating expenses 1,350 311 1,555 1,770 Interest and other income, net (451 ) (394 ) (770 ) (911 ) Provision (benefit) for income taxes 328 379 594 (4,436 ) Net loss $ (4,362 ) $ (5,655 ) $ (9,384 ) $ (6,867 )

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 23, 2019, the Company performed a strategic reorganization that consolidated its go-to-market for self-directed and fully-managed market place services to capitalize on growth opportunities. As a result, the Company will incur restructuring costs of approximately $1.1 million for employee termination benefits. The termination costs relate to the GovDeals, CAG, and RSCG segments, as well as Corporate & Other, and will be recorded as Business realignment expenses within Other operating expenses in the Consolidated Statements of Operations during the three months ended June 30, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal, recurring adjustments considered necessary for a fair presentation have been included. The information disclosed in the notes to the consolidated financial statements for these periods is unaudited. Operating results for the three and six months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending September 30, 2019 or for any future period. In the Consolidated Statements of Operations, revenue from the resale of inventory that the Company purchases from sellers is recognized within “Revenue”. Commission fees from the sale of inventory that the Company sells on a consignment basis and other non-consignment fee revenue, which is made up of subscription fee and service revenue from the Surplus contract in the prior year, is recognized within “Fee Revenue”.
Revenue Recognition	Revenue Recognition The Company adopted Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606") effective October 1, 2018. As a result of adopting ASC 606, there have been significant changes to the Company's revenue recognition policy from the policy disclosed in Note 2 -Summary of Significant Accounting Polices in the Company’s Annual Report on Form 10-K for the year ended September 30, 2018. These changes are described below. The Company recognizes revenue when or as performance obligations are satisfied and control is transferred to the customer. Revenue will be recognized in the amount that reflects the consideration to which the Company expects to be entitled. Revenue is also evaluated to determine whether the Company should report the gross proceeds as revenue (when the Company acts as the principal in the arrangement) or the Company should report its revenue on a net basis (when the Company acts as an agent). Specifically, when other parties are involved in providing goods or services to an entity’s customer, the Company must determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself, or to arrange for another party to provide them. The Company evaluates the following factors to determine if it is acting as a principal: (1) whether the Company is primarily responsible for fulfilling the promise to provide the asset or assets; (2) whether the Company has inventory risk of the asset or assets before they are transferred to the Buyer; and (3) whether the Company has discretion in establishing the price for the asset or assets. The Company enters into contracts with Buyers and Sellers. The Company has master agreements with some Sellers pertaining to the sale of a flow of surplus assets over the term of the master agreement, however; a contract for accounting purposes exists when the Company agrees to sell a specific asset or assets. When acting as a principal (a “principal” arrangement), the Company purchases an asset or assets from a Seller and the Company has a performance obligation to sell the asset or assets to a Buyer. For principal arrangements, the Company recognizes as revenue the gross proceeds from the sale, including buyer's premiums, within Revenue. Also, when acting as a principal, the contract with the Seller is not a contract in the scope of the revenue recognition guidance; rather, it is a purchase of inventory. When the Company is acting as an agent (a “consignment” arrangement), its performance obligation is to arrange for the Seller to sell an asset or assets to the Buyer directly. The Company recognizes revenue within Fee Revenue based on the sales commissions that are paid to the Company by the sellers for utilizing the Company's services; in this situation, sales commissions represent a percentage of the gross proceeds from the sale that the seller pays to the Company upon completion of the transaction. In both principal and consignment contracts, the Company sometimes provides distinct services to the Seller, such as returns management or refurbishment of assets. These services are distinct because the Seller could benefit from the services separately from the asset sale, and as such they are treated as separate performance obligations. Some services provided to Sellers are not distinct, like providing access to the Company’s ecommerce marketplaces or promoting the asset or assets for sale, because they could not benefit the Seller separately from the sale of the asset or assets. The consideration received from Buyers and Sellers includes (1) buyer’s premiums, (2) seller’s commissions, and (3) fees for services, including reimbursed expenses. Consideration is variable based on units, final auction prices, or other factors, until the Buyer’s purchase of the asset or assets is complete, or the service has been provided. Recognition of variable consideration that is based on the results of auctions or purchases by Buyers is constrained until those transactions have been finalized. The Company estimates and recognizes amounts related to sales returns, discounts or rebates promised to customers, and reimbursed expenses. The total transaction price is allocated to each distinct performance obligation and revenue is recognized when or as the performance obligation is satisfied. Variable consideration is allocated to individual performance obligations when the variable consideration is related to satisfying that performance obligation and consistent with the allocation objective. The Company's revenue is generally recorded subsequent to receipt of payment authorization, utilizing credit cards, wire transfers and PayPal, an Internet based payment system, as methods of payments. Goods are generally not shipped before payment is received. For certain transactions, payment is due upon invoice and the payment terms vary depending on the business segment. The Company collects and remits sales taxes on merchandise that it purchases and sells and has elected the practical expedient to report such amounts under the net method in its Consolidated Statements of Operations. The Company also provides shipping and handling services in some arrangements and has elected the practical expedient to treat those activities as a fulfillment cost. If the Company is acting as a principal for the combined obligation, amounts received from customers for shipping are recognized as revenue, and amounts paid for shipping are recognized as costs of goods sold. If the Company is acting as an agent for the combined obligation, shipping revenue and costs will be netted and recognized within costs of goods sold. The Company’s performance obligations are satisfied when control of the asset is transferred to the Buyer or when the service is completed. The Company determines when control has transferred by evaluating the following five indicators: (1) whether the Company has a present right to payment for the asset or assets; (2) whether the Buyer has legal title to the asset; (3) whether the Buyer has physical possession of the asset or assets; (4) whether the Buyer has the significant risks and rewards of ownership; and (5) whether the Buyer has accepted the asset or assets. For the Company's Machinio business segment, the performance obligation is satisfied over time as the Company provides the promotional placement services over the term of the subscription. At March 31, 2019 , the Machinio business segment had a remaining performance obligation of $3.1 million that the Company expects the majority of this will be recognized as revenue over the next 12 months. Cost of Goods Sold Cost of goods sold includes the costs of purchasing and transporting property for auction, credit card transaction fees and shipping and handling costs. The Company purchases the majority of its inventory at a percentage of the vendor's last retail price under certain commercial contracts within its RSCG segment, and at specifically negotiated prices within its CAG segment. Title for the inventory passes to the Company at the time of purchase and the Company bears the risks and rewards of ownership. The Company does not have title to assets sold on behalf of its commercial or government sellers when it receives only sales commission revenue and, as such, recognizes no inventory or the corresponding cost of goods sold from inventory purchases associated with those sales. Contract Assets Contract assets reflect an estimate of expenses that will be reimbursed upon settlement with Seller. The contract asset balance was $0.7 million as of October 1, 2018 and $0.7 million as of March 31, 2019 and is included in the line item "Prepaid expenses and other current assets" on the consolidated balance sheet. Contract Costs Contract costs relate to sales commissions paid on consignment contracts that are capitalized. Contract costs are amortized over the expected life of the customer contract.
Promissory Note	Promissory Note On September 30, 2015, the Company sold certain assets related to its Jacobs Trading business to Tanager Acquisitions, LLC (the ‘‘Buyer’’). In connection with the disposition, the Buyer assumed certain liabilities related to the Jacobs Trading business. The Buyer issued a $12.3 million five -year interest bearing promissory note to the Company. Of the $12.3 million , $4.0 million has been repaid as of March 31, 2019 . Of the remaining $8.3 million , $6.3 million is recorded on the consolidated balance sheet in Other assets, and $2.0 million in Prepaid expenses and other current assets as of March 31, 2019 based on the scheduled repayment dates.
Risk Associated with Certain Concentrations	Risk Associated with Certain Concentrations The Company does not perform credit evaluations for the majority of its buyers. However, most sales are recorded subsequent to payment authorization being received. As a result, the Company is not subject to significant collection risk, as most goods are not shipped before payment is received. For consignment sales transactions, funds are typically collected from buyers and are held by the Company on the sellers' behalf. The funds are included in Cash and cash equivalents in the Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods or within 30 days, depending on the state where the buyer and seller conduct business. The amount of cash held on behalf of sellers is recorded within Payables to sellers in the accompanying Consolidated Balance Sheets. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash in banks over FDIC limits, certificates of deposit, and accounts receivable. The Company deposits its cash with financial institutions that the Company considers to be of high credit quality.
Earnings per Share	Earnings per Share The Company calculates net income (loss) per share in accordance with Financial Accounting Standards Board ("FASB") Topic 260 Earnings Per Share (“ASC 260”). Under ASC 260, basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted stock units. Diluted net income (loss) per share reflects the potential dilution that could occur assuming conversion or exercise of all dilutive unexercised stock options and unvested restricted stock units. The dilutive effect of unexercised stock options and unvested restricted stock units was determined using the treasury stock method. Under the treasury stock method, the proceeds received from the exercise of stock options, and the amount of compensation cost for future service not yet recognized by the Company are assumed to be used to repurchase shares of the Company’s common stock. Stock options and restricted stock units are not included in the computation of diluted net income (loss) per share when they are antidilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Adopted On October 1, 2018, the Company adopted ASC 606 using the modified retrospective transition method. The Company applied the new revenue standard to all contracts that were not completed as of October 1, 2018 on a modified retrospective basis and recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative period information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to the consolidated October 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands): Balance at September 30, 2018 Adjustment due to adoption of ASC 606 Balance as adjusted at October 1, 2018 Prepaid expenses and other current assets $ 7,816 $ 671 $ 8,487 Other assets $ 14,124 $ 59 $ 14,183 Retained earnings $ (100,045 ) $ 730 $ (99,315 ) The impact of adopting ASC 606 on the Company’s consolidated statement of operations and the consolidated balance sheet for the period ended March 31, 2019 was as follows (in thousands): Three months ended March 31, 2019 Six months ended March 31, 2019 As reported Balance without adoption of ASC 606 Effect of change Higher/(lower) As reported Balance without adoption of ASC 606 Effect of change Higher/(lower) Consolidated statement of operations: Fee revenue $ 19,445 $ 19,293 $ 152 $ 37,763 $ 37,757 $ 6 Consolidated balance sheet: Prepaid expenses and other current assets $ 8,574 $ 7,819 $ 755 $ 8,574 $ 7,819 $ 755 Other assets $ 14,451 $ 14,248 $ 203 $ 14,451 $ 14,248 $ 203 Accumulated deficit $ (108,696 ) $ (107,738 ) $ (958 ) $ (108,696 ) $ (107,738 ) $ (958 ) In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting . ASU 2017-09 provides guidance about which changes to terms or conditions of share-based payment awards require the application of modification accounting in Topic 718, Compensation - Stock Compensation . The ASU was adopted on October 1, 2018 and the Company will apply the guidance in ASU 2017-09 on a prospective basis to its award modifications. No material impacts have been noted to date. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU 2017-07 changes how employers that sponsor defined benefit pension and/or other postretirement benefit plans present the cost of the benefits in the income statement. Under this standard, employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. The adoption of ASU 2017-07 on October 1, 2018, using the retrospective method, did not have a material impact on the Company's results of operations. As a result of adopting this standard $90 thousand and $182 thousand for three and six months ended March 31, 2018, respectively, were reclassified in the consolidated statement of operations from "General and administrative", a component of loss from operations, to "Interest and other income, net", which is included below loss from operations. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. The ASU was adopted on October 1, 2018 and the Company will apply the guidance in ASU 2017-01 on a prospective basis when entering into acquisitions of assets or businesses. No material impacts have been noted to date. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory . The new standard requires companies to recognize the income tax effects of intercompany sales or transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period the sale or transfer occurs. The exception to recognizing the income tax effects of intercompany sales or transfers of assets remains in place for intercompany inventory sales and transfers. The adoption of ASU 2016-16 on October 1, 2018 did not have an impact on the Company’s consolidated statement of operations. During 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments and ASU 2016-18, Restricted Cash . These ASUs clarify how entities should classify certain cash receipts and cash payments on the statement of cash flows and requires that the statement of cash flows explain the change during the period in the total cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. These standards were adopted on October 1, 2018 on a retrospective basis and there was no impact on the Company's consolidated statement of cash flows. Accounting Standards Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs in a cloud computing arrangement with the requirement for capitalizing implementation costs incurred to develop or obtain internal-use software. This ASU will become effective for the Company beginning October 1, 2020. The Company is currently evaluating the effect that the ASU might have on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 amends the existing accounting standard for defined benefit plans by removing, modifying, and adding certain disclosures. This ASU will become effective for the Company beginning October 1, 2021 with early adoption permitted. The Company is currently evaluating the timing of adoption the new guidance as well as the impact it may have on the consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements . ASU 2018-13 amends the existing accounting standard for fair value measurement by removing, modifying, and adding certain disclosures. This ASU will become effective for the Company beginning October 1, 2020 with early adoption permitted. The Company is currently evaluating the timing of adopting the new guidance as well as the impact it may have on the consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-based Payment Accounting. ASU 2018-07 amends the existing accounting standards for share-based payments to nonemployees. ASU 2018-07 applies to all share based payment transactions in which a grantor acquires goods or services to be used or consumed in its own operation by issuing share-based payment awards. Additionally, this guidance clarifies that Topic 718 does not apply to share based payments used to effectively provide financing to the issuer or awards granted in conjunction with selling goods or services to customers as part of a contract accounted under ASC 606. ASU 2018-07 will become effective for the Company beginning October 1, 2019. The Company is currently evaluating the effect the adoption of the standard is expected to have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 allows entities to elect to classify from accumulated other comprehensive income (loss) to retained earnings stranded tax effects resulting from the Tax Cuts and Jobs Act (the "Tax Act") enacted on December 22, 2017. An entity that does not elect to reclassify the income tax effects of the Tax Act shall disclose in the period of adoption a statement that the election was not made. This guidance will become effective for the Company beginning on October 1, 2019. The Company is currently evaluating whether it will make an election to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . Under ASU 2017-04 the entity is required to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity is required to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity is required to consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. This guidance will become effective for the Company beginning on October 1, 2020. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the adoption of the standard is expected to have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , or ASC 842. ASC 842, including all the amendments and guidance, will change the way the Company recognizes its leased assets. It will require organizations that lease assets—referred to as "lessees"—to recognize on the balance sheet the assets and liabilities representing the rights and obligations created by those leases. ASC 842 will also require disclosures to help investors and other financial statement users better understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for the Company beginning on October 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into, after either the adoption date or the beginning of the earliest comparative period presented in the financial statements. The Company is in the process of aggregating its worldwide lease portfolio and is evaluating the potential to use software solutions in its adoption of ASC 842 and for its subsequent lease accounting requirements. Once completed, the Company will elect a transition method for adoption and conclude on whether to make use of the available practical expedients. The adoption of ASC 842 will result in the recognition of right-of-use assets and lease liabilities on its Consolidated Balance Sheets, and will require that the Company make quantitative and qualitative disclosures about its leases. Additional impacts, which may be material, may be identified as the Company completes its adoption process.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Impact of adoption of ASC 606	The cumulative effect of the changes made to the consolidated October 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands): Balance at September 30, 2018 Adjustment due to adoption of ASC 606 Balance as adjusted at October 1, 2018 Prepaid expenses and other current assets $ 7,816 $ 671 $ 8,487 Other assets $ 14,124 $ 59 $ 14,183 Retained earnings $ (100,045 ) $ 730 $ (99,315 ) The impact of adopting ASC 606 on the Company’s consolidated statement of operations and the consolidated balance sheet for the period ended March 31, 2019 was as follows (in thousands): Three months ended March 31, 2019 Six months ended March 31, 2019 As reported Balance without adoption of ASC 606 Effect of change Higher/(lower) As reported Balance without adoption of ASC 606 Effect of change Higher/(lower) Consolidated statement of operations: Fee revenue $ 19,445 $ 19,293 $ 152 $ 37,763 $ 37,757 $ 6 Consolidated balance sheet: Prepaid expenses and other current assets $ 8,574 $ 7,819 $ 755 $ 8,574 $ 7,819 $ 755 Other assets $ 14,451 $ 14,248 $ 203 $ 14,451 $ 14,248 $ 203 Accumulated deficit $ (108,696 ) $ (107,738 ) $ (958 ) $ (108,696 ) $ (107,738 ) $ (958 )

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of goodwill activity	The following table presents changes in the carrying amount of goodwill by reportable segment: Goodwill (in thousands) CAG GovDeals Machinio Total Balance at September 30, 2017 $ 21,657 $ 23,731 $ — $ 45,388 Business acquisition — — 14,558 14,558 Translation adjustments (127 ) — — (127 ) Balance at September 30, 2018 $ 21,530 $ 23,731 $ 14,558 $ 59,819 Translation adjustments (129 ) — — (129 ) Balance at March 31, 2019 $ 21,401 $ 23,731 $ 14,558 $ 59,690

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2019
Finite-Lived Intangible Assets, Net [Abstract]
Schedule of intangible assets	The components of identifiable intangible assets as of March 31, 2019 and September 30, 2018 are as follows: March 31, 2019 September 30, 2018 Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (dollars in thousands) Contract intangibles 6 $ 3,100 $ (388 ) $ 2,712 $ 3,100 $ (129 ) $ 2,971 Technology 5 2,700 (405 ) 2,295 2,700 (135 ) 2,565 Patent and trademarks 3 - 10 2,341 (640 ) 1,701 2,269 (439 ) 1,830 Total intangible assets $ 8,141 $ (1,433 ) $ 6,708 $ 8,069 $ (703 ) $ 7,366
Schedule of future expected amortization of intangible assets	Future expected amortization of intangible assets at March 31, 2019 is as follows: Future Amortization Years ending September 30, (in thousands) 2019 Remaining six months $ 672 2020 1,343 2021 1,332 2022 1,320 2023 1,176 2024 and thereafter 865 Total $ 6,708

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Schedule of stockholders equity	The changes in stockholders’ equity for the prior year comparable period is as follows (in thousands): Common Stock Shares Amount Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Balance at September 30, 2017 31,503,349 $ 29 $ 227,264 $ (6,431 ) $ (88,226 ) $ 132,636 Cumulative adjustment related to adoption of ASU 2016-09 — — 100 — (207 ) (107 ) Net loss — — — — (1,212 ) (1,212 ) Exercise of common stock options and vesting of restricted stock 386,330 — — — — — Compensation expense and incremental tax benefit from grants of common stock options and restricted stock — — 1,262 — — 1,262 Foreign currency translation — — — (51 ) (6 ) (57 ) Balance at December 31, 2017 31,889,679 $ 29 $ 228,626 $ (6,482 ) $ (89,651 ) $ 132,522 Net loss — — — — (5,655 ) (5,655 ) Exercise of common stock options and vesting of restricted stock 103,398 — 12 — — 12 Compensation expense and incremental tax benefit from grants of common stock options and restricted stock — — 1,212 — — 1,212 Foreign currency translation — — — 34 12 46 Balance at March 31, 2018 31,993,077 $ 29 $ 229,850 $ (6,448 ) $ (95,294 ) $ 128,137
Summary of stock options and restricted stock granted	The following table presents the number of stock options and shares of restricted stock granted to employees under the Company's 2006 Plan and the grant date fair value of those stock awards for the periods presented: Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Stock options: Time-based 11,816 20,826 492,966 233,346 Weighted average grant date fair value $ 4.82 $ 4.26 $ 2.69 $ 2.00 Market-based and performance-based — — 481,150 318,780 Weighted average grant date fair value $ — $ — $ 2.66 $ 1.59 Restricted stock: Time-based 66,528 220,181 201,728 251,221 Weighted average grant date fair value $ 8.50 $ 6.95 $ 6.75 $ 6.65 Market-based and performance-based 55,000 199,780 130,200 246,340 Weighted average grant date fair value $ 7.40 $ 7.33 $ 5.66 $ 6.53

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Changes in financial assets fair value	The changes in the earn-out liability and financial assets measured at fair value using Level 3 inputs to determine fair value for the six months ended March 31, 2019 and 2018, respectively, are as follows (in thousands): Contingent Consideration Balance at September 30, 2018 $ 1,300 Settlements — Change in fair value 1,400 Balance at March 31, 2019 $ 2,700 The increase in the fair value is primarily due to an increase in Machinio's estimated EBITDA over the earn out period, which was the result of realized EBITDA for the three months ended March 31, 2019 exceeding the previous estimate. Secondary factors for the increase in fair value relate to the present value factor, which was impacted by a shorter period until the earn out payment date, as well as a change in market conditions that reduced interest rates and the weighted average cost of capital. Financial Instruments Balance at September 30, 2017 $ 491 Settlements (401 ) Change in fair value (90 ) Balance at March 31, 2018 $ —

Defined Benefit Pension Plan (T

Defined Benefit Pension Plan (Tables)	6 Months Ended
	Mar. 31, 2019
Retirement Benefits [Abstract]
Schedule of net periodic benefit cost recognized	The net periodic benefit recognized for the three and six months ended March 31, 2019 and 2018 included the following components: Three Months Ended March 31, Six Months Ended March 31, Qualified Defined Benefit Pension Plan 2019 2018 2019 2018 (dollars in thousands) Service cost $ — $ — $ — $ — Interest cost 154 165 311 335 Expected return on plan assets (229 ) (251 ) (473 ) (509 ) Settlement cost — (4 ) — (8 ) Total net periodic (benefit) $ (75 ) $ (90 ) $ (162 ) $ (182 )

Business Realignment Expenses (

Business Realignment Expenses (Tables)	6 Months Ended
	Mar. 31, 2019
Restructuring and Related Activities [Abstract]
Restructuring and related costs	The table below sets forth the significant components of and activity in the liability for business realignment initiatives during the periods presented, on a segment and consolidated basis: (in thousands) Liability Balance at September 30, 2017 Business Realignment Expenses Cash Payments Liability Balance at September 30, 2018 Business Realignment Expenses Cash Payments Liability Balance at March 31, 2019 Employee severance and benefit costs: CAG $ 793 $ 979 $ (1,683 ) $ 89 $ — $ (89 ) $ — Corporate & Other 399 472 (850 ) 21 170 (191 ) $ — Total employee severance and benefit costs $ 1,192 $ 1,451 $ (2,533 ) $ 110 $ 170 $ (280 ) $ — Occupancy and other costs: CAG — 739 (280 ) 459 51 (254 ) $ 256 Corporate & Other 1,988 (248 ) (933 ) 807 134 (747 ) $ 194 Total occupancy and other costs $ 1,988 $ 491 $ (1,213 ) $ 1,266 $ 185 $ (1,001 ) $ 450 Total business realignment $ 3,180 $ 1,942 $ (3,746 ) $ 1,376 $ 355 $ (1,281 ) $ 450 Business realignment expenses were as follows for the periods presented (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Employee severance and benefit costs: CAG $ — $ 130 $ — $ 881 Corporate & Other — — 170 474 Total employee severance and benefit costs — 130 170 1,355 Occupancy and other costs: CAG 5 340 51 434 Corporate & Other — 7 134 35 Total occupancy and other costs 5 347 185 469 Total business realignment expenses $ 5 $ 477 $ 355 $ 1,824

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of segment reporting information by segment	The following table sets forth certain financial information for the Company's reportable segments and Corporate & Other (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 GovDeals: Revenue $ — $ — $ — $ — Fee revenue 7,697 7,092 15,355 14,133 Total revenue 7,697 7,092 15,355 14,133 Gross profit $ 7,042 $ 6,589 $ 14,103 $ 13,132 CAG: Revenue $ 7,498 $ 19,273 $ 16,727 $ 40,823 Fee revenue 6,186 5,884 12,438 16,396 Total revenue 13,684 25,157 29,165 57,219 Gross profit $ 8,614 $ 12,458 $ 17,496 $ 30,062 RSCG: Revenue $ 29,823 $ 22,898 $ 55,894 $ 40,075 Fee revenue 4,188 4,016 7,595 7,324 Total revenue 34,011 26,914 63,489 47,399 Gross profit $ 12,287 $ 8,616 $ 21,836 $ 15,344 Machinio: Revenue $ — $ — $ — $ — Fee revenue 1,374 — 2,366 — Total revenue 1,374 — 2,366 — Gross Profit $ 1,265 $ — $ 2,143 $ — Corporate & Other: Revenue $ 34 $ 933 $ 469 $ 2,486 Fee revenue — 1 9 3 Total revenue 34 934 478 2,489 Gross profit $ 10 $ (152 ) $ 113 $ (827 ) Consolidated: Revenue $ 37,355 $ 43,104 $ 73,090 $ 83,384 Fee revenue 19,445 16,993 37,763 37,856 Total revenue 56,800 60,097 110,853 121,240 Gross profit $ 29,218 $ 27,511 $ 55,691 $ 57,711
Reconciliation of revenue from segments to consolidated	The following table presents a reconciliation between gross profit used in the reportable segments as well as Corporate & Other and the Company's consolidated results (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2019 2018 2019 2018 Reconciliation: Gross profit $ 29,218 $ 27,511 $ 55,691 $ 57,711 Operating expenses 32,353 32,870 63,696 68,155 Other operating expenses 1,350 311 1,555 1,770 Interest and other income, net (451 ) (394 ) (770 ) (911 ) Provision (benefit) for income taxes 328 379 594 (4,436 ) Net loss $ (4,362 ) $ (5,655 ) $ (9,384 ) $ (6,867 )

Organization (Details)

Organization (Details) $ in Millions	Jul. 10, 2018USD ($)	Mar. 31, 2019reportablesegment
Business Acquisition [Line Items]
Reportable segments (in segments) | reportablesegment		4
Machinio
Business Acquisition [Line Items]
Percentage of voting interest acquired	100.00%
Cash consideration	$ 16.7
Equity consideration	2
Contingent consideration	$ 5

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details)	Sep. 30, 2015USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2019USD ($)contract	Mar. 31, 2018USD ($)	Oct. 01, 2018USD ($)
Business Acquisition [Line Items]
Contract asset		$ 700,000		$ 700,000		$ 700,000
Decrease in general and administrative expense from reclassification		(8,624,000)	$ (7,546,000)	(17,258,000)	$ (15,210,000)
Increase in interest and other income, net		$ 451,000	$ 394,000	$ 770,000	$ 911,000
Government Contracts Concentration Risk
Business Acquisition [Line Items]
Number of contracts | contract				2
Government Contracts Concentration Risk | Scrap Contract
Business Acquisition [Line Items]
Number of contracts | contract				1
Government Contracts Concentration Risk | Sales Revenue | Scrap Contract
Business Acquisition [Line Items]
Concentration risk (as a percentage)		7.60%	10.00%	7.60%	9.20%
Supplier Concentration Risk | Cost of Goods | Contract With Commercial Client
Business Acquisition [Line Items]
Concentration risk (as a percentage)		49.40%	28.70%	44.90%	24.10%
Tanager Acquisitions Promissory Note
Business Acquisition [Line Items]
Receivable with imputed interest, face amount	$ 12,300,000
Receivable with imputed interest, term	5 years
Proceeds from collection of notes receivable				$ 4,000,000
Receivable with imputed interest, net amount		$ 8,300,000		8,300,000
Tanager Acquisitions Promissory Note | Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Receivable with imputed interest, net amount		2,000,000		2,000,000
Tanager Acquisitions Promissory Note | Other Assets
Business Acquisition [Line Items]
Receivable with imputed interest, net amount		6,300,000		6,300,000
Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Contract costs		$ 300,000		$ 300,000		$ 100,000
Accounting Standards Update 2017-07
Business Acquisition [Line Items]
Decrease in general and administrative expense from reclassification			$ 90,000		$ 182,000
Increase in interest and other income, net			$ 90,000		$ 182,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Performance Obligations (Details) - Machinio - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 $ in Millions	6 Months Ended
	Mar. 31, 2019USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 3.1
Remaining performance obligation, period	1 year

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Oct. 01, 2018	Sep. 30, 2018
Consolidated statement of operations:
Total revenue	$ 56,800	$ 60,097	$ 110,853	$ 121,240
Consolidated balance sheet:
Prepaid expenses and other current assets	8,574		8,574		$ 8,487	$ 7,816
Other assets	14,451		14,451		14,183	14,124
Accumulated deficit	(108,696)		(108,696)		(99,315)	$ (100,045)
Balance without adoption of ASC 606
Consolidated balance sheet:
Prepaid expenses and other current assets	7,819		7,819
Other assets	14,248		14,248
Accumulated deficit	(107,738)		(107,738)
ASC 606 | Effect of change
Consolidated balance sheet:
Prepaid expenses and other current assets	755		755		671
Other assets	203		203		59
Accumulated deficit	(958)		(958)		$ 730
Fee revenue
Consolidated statement of operations:
Total revenue	19,445	$ 16,993	37,763	$ 37,856
Fee revenue | Balance without adoption of ASC 606
Consolidated statement of operations:
Total revenue	19,293		37,757
Fee revenue | ASC 606 | Effect of change
Consolidated statement of operations:
Total revenue	$ 152		$ 6

Significant Contracts (Details)

Significant Contracts (Details)	Oct. 11, 2017contract	Mar. 31, 2019option	Mar. 31, 2018	Dec. 31, 2016	Mar. 31, 2019optioncontract	Mar. 31, 2018
Government Contracts Concentration Risk
Significant Contracts
Number of contracts					2
Scrap Contract
Significant Contracts
Term of contract				36 months
Number of extensions | option		2			2
Term of each renewal options extended					12 months
Adjusted percentage of profit sharing distribution					64.50%
Scrap Contract | Government Contracts Concentration Risk
Significant Contracts
Number of contracts					1
Scrap Contract | Government Contracts Concentration Risk | Sales Revenue
Significant Contracts
Concentration risk (as a percentage)		7.60%	10.00%		7.60%	9.20%
Surplus Contract
Significant Contracts
Number of contracts	2
Surplus Contract | Government Contracts Concentration Risk | Sales Revenue
Significant Contracts
Concentration risk (as a percentage)		0.00%	19.30%		0.00%	22.90%
Non-rolling stock | Surplus Contract
Significant Contracts
Usable surplus property to be purchased as a fixed percentage of DoD's original acquisition value					4.35%

Goodwill (Details)

Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Goodwill
Balance at the beginning of the period	$ 59,819	$ 45,388
Business acquisition		14,558
Translation adjustments	(129)	(127)
Balance at the end of the period	59,690	59,819
CAG
Goodwill
Balance at the beginning of the period	21,530	21,657
Business acquisition		0
Translation adjustments	(129)	(127)
Balance at the end of the period	21,401	21,530
GovDeals
Goodwill
Balance at the beginning of the period	23,731	23,731
Business acquisition		0
Translation adjustments	0	0
Balance at the end of the period	23,731	23,731
Machinio
Goodwill
Balance at the beginning of the period	14,558	0
Business acquisition		14,558
Translation adjustments	0	0
Balance at the end of the period	$ 14,558	$ 14,558

Intangible Assets - Carrying Am

Intangible Assets - Carrying Amount (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,141	$ 8,069
Accumulated Amortization	(1,433)	(703)
Total	$ 6,708	7,366
Contract intangibles
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	6 years
Gross Carrying Amount	$ 3,100	3,100
Accumulated Amortization	(388)	(129)
Total	$ 2,712	2,971
Technology
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	5 years
Gross Carrying Amount	$ 2,700	2,700
Accumulated Amortization	(405)	(135)
Total	2,295	2,565
Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,341	2,269
Accumulated Amortization	(640)	(439)
Total	$ 1,701	$ 1,830
Minimum | Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	3 years
Maximum | Patent and trademarks
Finite-Lived Intangible Assets [Line Items]
Useful Life (in years)	10 years

Intangible Assets - Amortizatio

Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Future expected amortization of intangible assets
2019 Remaining six months	$ 672
2020	1,343
2021	1,332
2022	1,320
2023	1,176
2024 and thereafter	865
Total	$ 6,708	$ 7,366

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Finite-Lived Intangible Assets, Net [Abstract]
Amortization of intangible assets	$ 340	$ 20	$ 670	$ 40

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Blended effective tax rate (as a percentage)	24.50%
Tax benefit relating to adjustment in corporate tax rate		$ 10.7
Expected effective tax rate (as a percent)	(6.80%)

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Oct. 01, 2018	Oct. 01, 2017
Increase (Decrease) in Stockholders' Equity
Balance	$ 126,499	$ 129,654	$ 132,522	$ 132,636	$ 129,654	$ 132,636
Cumulative adjustment related to adoption of ASU 2016-09							$ 730	$ (107)
Net loss	(4,362)	(5,022)	(5,655)	(1,212)	(9,384)	(6,867)
Exercise of common stock options and vesting of restricted stock	116	8	12
Compensation expense and incremental tax benefit from grants of common stock options and restricted stock	2,011	1,556	1,212	1,262
Foreign currency translation			46	(57)
Balance	$ 124,465	$ 126,499	$ 128,137	$ 132,522	$ 124,465	$ 128,137
Common Stock
Increase (Decrease) in Stockholders' Equity
Balance (in shares)	33,183,178	32,774,118	31,889,679	31,503,349	32,774,118	31,503,349
Balance	$ 33	$ 33	$ 29	$ 29	$ 33	$ 29
Exercise of common stock options and vesting of restricted stock (in shares)	197,642	409,060	103,398	386,330
Balance (in shares)	33,347,657	33,183,178	31,993,077	31,889,679	33,347,657	31,993,077
Balance	$ 33	$ 33	$ 29	$ 29	$ 33	$ 29
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Balance	237,679	236,115	228,626	227,264	236,115	227,264
Cumulative adjustment related to adoption of ASU 2016-09								100
Exercise of common stock options and vesting of restricted stock	116	8	12
Compensation expense and incremental tax benefit from grants of common stock options and restricted stock	2,011	1,556	1,212	1,262
Balance	239,806	237,679	229,850	228,626	239,806	229,850
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity
Balance	(6,876)	(6,449)	(6,482)	(6,431)	(6,449)	(6,431)
Foreign currency translation			34	(51)
Balance	(6,678)	(6,876)	(6,448)	(6,482)	(6,678)	(6,448)
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity
Balance	(104,337)	(100,045)	(89,651)	(88,226)	(100,045)	(88,226)
Cumulative adjustment related to adoption of ASU 2016-09							$ 730	$ (207)
Net loss	(4,362)	(5,022)	(5,655)	(1,212)
Foreign currency translation			12	(6)
Balance	$ (108,696)	$ (104,337)	$ (95,294)	$ (89,651)	$ (108,696)	$ (95,294)

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 23, 2017	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Sep. 30, 2016
Stockholders' Equity
Shares available for issuance (in shares)	16,300,000						13,000,000
Increase in shares available for issuance (in shares)	3,300,000
Reserve shares counted per share granted from fungible share pool (in shares)	1.5
Shares repurchased (in shares)				0	0
Amount yet to be expended under the program		$ 10.1		$ 10.1		$ 10.1
Options or stock appreciation rights | Maximum
Stockholders' Equity
Number of shares awarded per person per year (in shares)				1,000,000
Other than options or stock appreciation rights | Maximum
Stockholders' Equity
Number of shares awarded per person per year (in shares)				700,000
Employee and director options
Stockholders' Equity
Expected volatility, minimum (as a percent)						49.71%
Expected volatility, maximum (as a percent)						54.93%
Dividend yield (as a percent)						0.00%
Risk free interest rate, minimum (as a percent)						1.65%
Risk free interest rate, maximum (as a percent)						2.78%
Employee and director options | Minimum
Stockholders' Equity
Shares and options vesting period				1 year
Employee and director options | Maximum
Stockholders' Equity
Shares and options vesting period				4 years
Employee Stock Option
Stockholders' Equity
Shares and options vesting period				4 years
Employee Stock Option - Market-Based
Stockholders' Equity
Shares and options vesting period				4 years
Cash-settled stock appreciation rights
Stockholders' Equity
Shares and options vesting period				4 years
Shares issued (in shares)		0	0	95,000
Granted (USD per share)				$ 6.11
Exercised (in shares)		51,614	33,520	101,170	83,002
Forfeited (in shares)		21,868	177,947	388,048	272,904
Outstanding (in shares)		539,987	1,097,727	539,987	1,097,727	539,987
Restricted Stock
Stockholders' Equity
Shares and options vesting period				4 years

Stockholders' Equity - 2006 Pla

Stockholders' Equity - 2006 Plan Activity (Details) - $ / shares	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Employee Stock Option - Time Based
Stock options:
Options granted (in shares)	11,816	20,826	492,966	233,346
Options granted (USD per share)	$ 4.82	$ 4.26	$ 2.69	$ 2
Employee Stock Option - Market-Based and Performance-Based
Stock options:
Options granted (in shares)	0	0	481,150	318,780
Options granted (USD per share)	$ 0	$ 0	$ 2.66	$ 1.59
Restricted Stock - Time Based
Restricted stock:
Restricted shares granted (in shares)	66,528	220,181	201,728	251,221
Granted (USD per share)	$ 8.50	$ 6.95	$ 6.75	$ 6.65
Restricted Stock - Market Based and Performance-Based
Restricted stock:
Restricted shares granted (in shares)	55,000	199,780	130,200	246,340
Granted (USD per share)	$ 7.40	$ 7.33	$ 5.66	$ 6.53

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2019	Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Certificates of deposits	$ 30	$ 20
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	2.20%	2.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate	2.80%	2.80%

Fair Value Measurement - Change

Fair Value Measurement - Change in Level 3 Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Change in fair value	$ 0	$ (90)
Recurring basis | Level 3 Assets
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance, contingent consideration	1,300
Settlements	0
Change in fair value	1,400
Ending balance, contingent consideration	$ 2,700
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance, financial instruments		491
Settlements		(401)
Change in fair value		(90)
Ending balance, financial instruments		$ 0

Defined Benefit Pension Plan (D

Defined Benefit Pension Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	154	165	311	335
Expected return on plan assets	(229)	(251)	(473)	(509)
Settlement cost	0	(4)	0	(8)
Total net periodic (benefit)	$ (75)	$ (90)	$ (162)	$ (182)

Guarantees (Details)

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

Business Realignment Expenses -

Business Realignment Expenses - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 450		$ 3,180	$ 450		$ 1,376	$ 3,180
Restructuring charges	5	$ 477		355	$ 1,824	1,942
District of Columbia | Other Operating Expense | Office Building
Restructuring Cost and Reserve [Line Items]
Loss on contract termination				200		800	2,000
Payment on contract loss termination				600
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	0		1,192	0		110	1,192
Restructuring charges	0	130		170	1,355	1,451
Employee Severance | Corporate & Other
Restructuring Cost and Reserve [Line Items]
Restructuring costs					500
Restructuring reserve	0		399	0		21	399
Restructuring charges	0	0		170	474	472
CAG
Restructuring Cost and Reserve [Line Items]
Restructuring costs			1,000		1,300	1,700
CAG | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	0		$ 793	0		89	$ 793
Restructuring charges	0	$ 130		0	881	979
CAG | Employee Severance | Severance Agreement
Restructuring Cost and Reserve [Line Items]
Restructuring costs					$ 800
CAG | Occupancy Cost
Restructuring Cost and Reserve [Line Items]
Restructuring reserve	$ 300			300
IronDirect
Restructuring Cost and Reserve [Line Items]
Restructuring charges						$ 1,100
IronDirect | Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring costs				$ 200

Business Realignment Expenses_2

Business Realignment Expenses - Business Realignment Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	$ 5	$ 477	$ 355	$ 1,824	$ 1,942
Employee severance and benefit costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	0	130	170	1,355	1,451
Occupancy and other costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	5	347	185	469	491
CAG | Employee severance and benefit costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	0	130	0	881	979
CAG | Occupancy and other costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	5	340	51	434	739
Corporate & Other | Employee severance and benefit costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	0	0	170	474	472
Corporate & Other | Occupancy and other costs
Restructuring Cost and Reserve [Line Items]
Business Realignment Expenses	$ 0	$ 7	$ 134	$ 35	$ (248)

Business Realignment Expenses_3

Business Realignment Expenses - Restructuring Related Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Restructuring Reserve [Roll Forward]
Beginning balance			$ 1,376	$ 3,180	$ 3,180
Business Realignment Expenses	$ 5	$ 477	355	1,824	1,942
Cash Payments			(1,281)		(3,746)
Ending balance	450		450		1,376
Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance			110	1,192	1,192
Business Realignment Expenses	0	130	170	1,355	1,451
Cash Payments			(280)		(2,533)
Ending balance	0		0		110
Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance			1,266	1,988	1,988
Business Realignment Expenses	5	347	185	469	491
Cash Payments			(1,001)		(1,213)
Ending balance	450		450		1,266
Corporate & Other | Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance			21	399	399
Business Realignment Expenses	0	0	170	474	472
Cash Payments			(191)		(850)
Ending balance	0		0		21
Corporate & Other | Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance			807	1,988	1,988
Business Realignment Expenses	0	7	134	35	(248)
Cash Payments			(747)		(933)
Ending balance	194		194		807
CAG | Employee severance and benefit costs
Restructuring Reserve [Roll Forward]
Beginning balance			89	793	793
Business Realignment Expenses	0	130	0	881	979
Cash Payments			(89)		(1,683)
Ending balance	0		0		89
CAG | Occupancy and other costs
Restructuring Reserve [Roll Forward]
Beginning balance			459	0	0
Business Realignment Expenses	5	$ 340	51	$ 434	739
Cash Payments			(254)		(280)
Ending balance	$ 256		$ 256		$ 459

Segment Information - Narrative

Segment Information - Narrative (Details) - reportablesegment	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Revenue, Major Customer [Line Items]
Reportable segments (in segments)			4
Segments percentage of revenue (as a percentage)			99.60%
Non-US | Sales Revenue | Geographic Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk (as a percentage)	14.60%	11.10%	15.40%	12.20%

Segment Information - Reconcili

Segment Information - Reconciliation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 56,800		$ 60,097		$ 110,853	$ 121,240
Gross profit	29,218		27,511		55,691	57,711
Operating expenses	32,353		32,870		63,696	68,155
Other operating expenses	1,350		311		1,555	1,770
Interest and other income, net	(451)		(394)		(770)	(911)
Provision (benefit) for income taxes	328		379		594	(4,436)
Net loss	(4,362)	$ (5,022)	(5,655)	$ (1,212)	(9,384)	(6,867)
Operating Segments | GovDeals
Segment Reporting Information [Line Items]
Total revenue	7,697		7,092		15,355	14,133
Gross profit	7,042		6,589		14,103	13,132
Operating Segments | CAG
Segment Reporting Information [Line Items]
Total revenue	13,684		25,157		29,165	57,219
Gross profit	8,614		12,458		17,496	30,062
Operating Segments | RSCG
Segment Reporting Information [Line Items]
Total revenue	34,011		26,914		63,489	47,399
Gross profit	12,287		8,616		21,836	15,344
Operating Segments | Machinio
Segment Reporting Information [Line Items]
Total revenue	1,374		0		2,366	0
Gross profit	1,265		0		2,143	0
Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	34		934		478	2,489
Gross profit	10		(152)		113	(827)
Revenue
Segment Reporting Information [Line Items]
Total revenue	37,355		43,104		73,090	83,384
Revenue | Operating Segments | GovDeals
Segment Reporting Information [Line Items]
Total revenue	0		0		0	0
Revenue | Operating Segments | CAG
Segment Reporting Information [Line Items]
Total revenue	7,498		19,273		16,727	40,823
Revenue | Operating Segments | RSCG
Segment Reporting Information [Line Items]
Total revenue	29,823		22,898		55,894	40,075
Revenue | Operating Segments | Machinio
Segment Reporting Information [Line Items]
Total revenue	0		0		0	0
Revenue | Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	34		933		469	2,486
Fee revenue
Segment Reporting Information [Line Items]
Total revenue	19,445		16,993		37,763	37,856
Fee revenue | Operating Segments | GovDeals
Segment Reporting Information [Line Items]
Total revenue	7,697		7,092		15,355	14,133
Fee revenue | Operating Segments | CAG
Segment Reporting Information [Line Items]
Total revenue	6,186		5,884		12,438	16,396
Fee revenue | Operating Segments | RSCG
Segment Reporting Information [Line Items]
Total revenue	4,188		4,016		7,595	7,324
Fee revenue | Operating Segments | Machinio
Segment Reporting Information [Line Items]
Total revenue	1,374		0		2,366	0
Fee revenue | Corporate & Other
Segment Reporting Information [Line Items]
Total revenue	$ 0		$ 1		$ 9	$ 3

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) $ in Millions	Apr. 23, 2019USD ($)
Employee Severance | Subsequent Event
Subsequent Event [Line Items]
Restructuring costs	$ 1.1