Alj Regional (ALJJ) 10-Q 12 Aug 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2021	Aug. 01, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Trading Symbol	ALJJ
Entity Registrant Name	ALJ REGIONAL HOLDINGS, INC
Entity Central Index Key	0001438731
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity File Number	001-37689
Entity Tax Identification Number	13-4082185
Entity Address, Address Line One	244 Madison Avenue
Entity Address, Address Line Two	PMB #358
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
City Area Code	888
Local Phone Number	486-7775
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		42,321,048

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 8,415	$ 6,050
Accounts receivable, net of allowance for doubtful accounts of $154 and $1,033 at June 30, 2021 and September 30, 2020, respectively	52,601	56,487
Inventories, net	6,600	6,232
Prepaid expenses and other current assets	8,361	9,015
Current assets of discontinued operations	4,615	4,828
Total current assets	75,977	82,612
Property and equipment, net	67,236	67,785
Operating lease right-of-use assets	30,736
Intangible assets, net	31,716	35,552
Collateral deposits	487	424
Other assets	1,450	2,887
Long-term assets of discontinued operations		984
Total assets	207,602	190,244
Current liabilities:
Accounts payable	14,308	16,224
Accrued expenses	22,456	19,140
Income taxes payable	273	9
Deferred revenue and customer deposits	5,464	8,583
Term loans, net of deferred loan costs - current installments	2,675	9,827
Finance lease obligations - current installments	810	2,437
Operating lease obligations - current installments	5,035
Current portion of workers' compensation reserve	710	960
Other current liabilities	4,311	60
Current liabilities of discontinued operations	4,099	3,351
Total current liabilities	56,042	60,591
Line of credit, net of deferred loan costs		13,753
Term loans, less current portion, net of deferred loan costs	94,187	73,482
Deferred revenue, less current portion	590	2,358
Workers' compensation reserve, less current portion	1,887	1,842
Finance lease obligations, less current installments	540	2,900
Operating lease obligations, less current installments	34,432
Deferred tax liabilities, net	1,025	987
Other non-current liabilities	7,502	16,669
Long-term liabilities of discontinued operations	375	606
Total liabilities	196,205	173,188
Commitments and contingencies (Note 9)
Stockholders’ equity:
Common stock, $0.01 par value; authorized – 100,000 shares; 42,321 and 42,298 issued and outstanding at June 30, 2021 and September 30, 2020, respectively	423	423
Additional paid-in capital	288,240	288,193
Accumulated deficit	(277,266)	(271,560)
Total stockholders’ equity	11,397	17,056
Total liabilities and stockholders’ equity	$ 207,602	$ 190,244

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 154	$ 1,033
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	42,321,000	42,298,000
Common stock, shares outstanding	42,321,000	42,298,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Net revenue		$ 103,460	$ 86,077	$ 329,185	$ 252,246
Costs and expenses:
Cost of revenue		82,468	67,656	269,111	205,891
Selling, general, and administrative expense		19,607	18,102	54,461	48,804
Impairment of goodwill					56,492
Gain on disposal of assets, net		(189)	(301)	(191)	(299)
Total operating expenses		101,886	85,457	323,381	310,888
Operating income (loss)		1,574	620	5,804	(58,642)
Other (expense) income:
Interest expense, net		(2,623)	(2,568)	(7,656)	(7,976)
Interest from legal settlement					200
Loss on debt extinguishment		(2,072)		(2,072)
Total other expense, net		(4,695)	(2,568)	(9,728)	(7,776)
Loss from continuing operations before income taxes		(3,121)	(1,948)	(3,924)	(66,418)
(Provision for) benefit from income taxes		(383)	(250)	(719)	1,008
Net loss from continuing operations		(3,504)	(2,198)	(4,643)	(65,410)
Net loss from discontinued operations, net of income taxes			(461)	(1,063)	(3,324)
Net loss		$ (3,504)	$ (2,659)	$ (5,706)	$ (68,734)
Loss per share of common stock–basic and diluted:
Continuing operations		$ 0.08	$ 0.05	$ 0.11	$ (1.55)
Discontinued operations			0.01	0.03	0.08
Loss per share (1)	[1]	$ 0.08	$ 0.06	$ 0.13	$ (1.63)
Weighted average shares of common stock outstanding– basic and diluted		42,321,000	42,173,000	42,320,000	42,173,000
[1]	Amounts may not add due to rounding.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities
Net loss	$ (5,706)	$ (68,734)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	14,912	14,676
Loss on debt extinguishment	2,072
Change in fair value of contingent consideration	1,100	900
Interest expense and other bank fees accreted to term loans	1,691	544
Loss on sale of Carpets	761
Amortization of deferred loan costs	527	787
Gain on disposal of assets, net	(191)	(299)
Stock-based compensation expense	126	312
(Reversal) provision for bad debts and obsolete inventory	(56)	945
Deferred income taxes	38	(1,448)
Impairment of goodwill		56,492
Fair value of warrants issued in connection with debt modification		716
Changes in operating assets and liabilities:
Accounts receivable, net	3,927	(11,723)
Inventories, net	(353)	(733)
Prepaid expenses and other current assets	641	(4,429)
Income tax receivable		895
ROU assets/ROU liabilities	(494)
Other assets and collateral deposits	1,374	(1,147)
Accounts payable	(1,916)	3,685
Accrued expenses	2,126	1,577
Income tax payable	264	(215)
Deferred revenue and customer deposits	(4,887)	8,112
Other current liabilities and other non-current liabilities	4,043	2,514
Discontinued operations, net	663	3,863
Cash provided by operating activities	20,662	7,290
Investing activities
Capital expenditures	(6,632)	(5,200)
Proceeds from sale of Carpets, net of transaction costs	500
Proceeds from sales of assets	309	1
Discontinued operations, net	(7)	(25)
Cash used for investing activities	(5,892)	(5,224)
Financing activities
Proceeds from term loan	95,000	1,500
Payments on term loans	(83,936)	(3,863)
(Payments) proceeds from line of credit, net	(14,417)	5,968
Deferred loan costs	(4,164)	(766)
Payments on finance leases	(3,987)	(2,041)
Payment of debt extinguishment penalties and other	(901)
Cash (used for) provided by financing activities	(12,405)	798
Change in cash and cash equivalents	2,365	2,864
Cash and cash equivalents at beginning of the year	6,050	4,529
Cash and cash equivalents at end of the year	8,415	7,393
Cash paid during the period for:
Interest	6,878	6,971
Taxes	89	826
Non-cash investing and financing activities:
Capital equipment purchased with finance leases to be billed to customers		1,763
Capital equipment purchased with finance leases		$ 3,490
Capital equipment purchases financed with term loans	4,000
Carpets [Member]
Adjustments to reconcile net loss to cash provided by operating activities:
Loss on sale of Carpets	761
Investing activities
Proceeds from sale of Carpets, net of transaction costs	$ 438

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member]
Beginning balance at Sep. 30, 2019		$ 422	$ 287,101	$ (204,407)	$ 521
Stock-based compensation expense - options			229
Fair value of warrants issued in connection with term loan modification	$ 716		716
Net (loss) income	(68,734)			(68,734)
Ending balance at Jun. 30, 2020	15,848	422	288,046	(272,620)
Beginning balance at Mar. 31, 2020		422	287,985	(269,961)
Stock-based compensation expense - options			61
Net (loss) income	(2,659)			(2,659)
Ending balance at Jun. 30, 2020	15,848	422	288,046	(272,620)
Beginning balance at Sep. 30, 2020	17,056	423	288,193	(271,560)
Stock-based compensation expense - options			47
Net (loss) income	(5,706)			(5,706)
Ending balance at Jun. 30, 2021	11,397	423	288,240	(277,266)
Beginning balance at Mar. 31, 2021		423	288,225	(273,762)
Stock-based compensation expense - options			15
Net (loss) income	(3,504)			(3,504)
Ending balance at Jun. 30, 2021	$ 11,397	$ 423	$ 288,240	$ (277,266)

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Jun. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization and Basis of Presentation	1. ORGANIZATION AND BASIS OF PRESENTATION Organization ALJ Regional Holdings, Inc. (including subsidiaries, referred to collectively herein as “ALJ” or “Company”) is a holding company. During the three and nine months ended June 30, 2021 and June 30, 2020, ALJ consisted of the following wholly-owned subsidiaries: • Faneuil, Inc. (including its subsidiaries, “Faneuil”) . Faneuil is a leading provider of call center services, back-office operations, staffing services, and toll collection services to government and commercial clients across the United States, focusing on the healthcare, utility, consumer goods, toll and transportation industries. Faneuil is headquartered in Hampton, Virginia. ALJ acquired Faneuil in October 2013. • Phoenix Color Corp. (including its subsidiaries, “Phoenix”) . Phoenix is a leading manufacturer of book components, educational materials and related products producing value-added components, heavily illustrated books and specialty commercial products using a broad spectrum of materials and decorative technologies. Phoenix is headquartered in Hagerstown, Maryland. ALJ acquired Phoenix in August 2015. • Floors-N-More, LLC, d/b/a, Carpets N’ More (“Carpets”) . Carpets is one of the largest floor covering retailers in Las Vegas, Nevada, and a provider of multiple products for the commercial, retail and home builder markets including all types of flooring, countertops, cabinets, window coverings and garage/closet organizers, with one retail location, as well as a stone and solid surface fabrication facility. ALJ acquired Carpets in April 2014. ALJ sold Carpets during February 2021. See Basis of Presentation below. As a result of selling one of its segments during February 2021, discussed below, ALJ has organized its business and corporate structure into two business segments: Faneuil and Phoenix. Basis of Presentation In January 2021, ALJ entered into a Purchase and Sale Agreement (“PSA”), by and among the Company, Superior Interior Finishes, LLC, a Nevada limited liability company (“Purchaser” or “Superior”) and Carpets, pursuant to which the Company agreed to sell 100% of the membership interests of Carpets to the Purchaser for an aggregate purchase price of $0.5 million (the “Purchase Price”) in cash (the “Transaction”). At the time of the PSA, Superior was 100% owned by Steve Chesin, the Chief Executive Officer of Carpets. The Company entered into the PSA because its Carpets business segment had been deemed a non-core holding and had underperformed over the past several years. The Transaction, which was approved by a committee of the Board comprised solely of certain independent directors of the Company, closed in February 2021. As such, the results of operations, assets, liabilities, and cash flows of Carpets were classified as discontinued operations in ALJ’s financial statements for all periods presented. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The Condensed Consolidated Financial Statements and footnotes thereto are unaudited. In the opinion of the Company’s management, the Condensed Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue and expenses that are reported in the Condensed Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020, filed with the SEC on December 18, 2020. Impact of Coronavirus Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the U.S. COVID-19 is having an unprecedented impact on the U.S. economy as federal, state, and local governments react to this public health crisis. Since the beginning of the COVID-19 pandemic, all of ALJ’s subsidiaries have been deemed “Essential Services” and have continued to operate with limited disruption. To date, COVID-19 has not materially impacted ALJ’s financial position, results of operations or cash flows. The Company took immediate actions in March 2020 to enable working-from-home where possible and put in place increased safety precautions, including social distancing, at other locations where essential services on site are required. The duration of these measures is unknown, may be extended and additional measures may be imposed. Although some employees have recently started to return to work, ALJ still has a significant portion of its work force working from home. Although ALJ has not been materially impacted by COVID-19, ALJ could be impacted by COVID-19 in the near term by lower sales volumes in several parts of ALJ’s business, resulting in lower revenue and profit. While the impact of COVID-19 on the Company’s future financial position, results of operations and cash flows cannot be estimated with certainty, such impact could be significant if the global pandemic continues to adversely impact the U.S. economy for an extended period of time. The extent to which COVID-19 impacts ALJ’s operations will depend on future developments, which are highly uncertain. These include among others, the duration of the outbreak, vaccination rate, emergence of new variants, if portions of the Company’s business segments are recharacterized as non-essential for which closure of some or all of the Company’s operations could be required, As of June 30, 2021, ALJ’s total available liquidity was $37.6 million, which included $8.4 million of cash and cash equivalents and $29.2 million of unused borrowing capacity under the Company’s revolving credit facility. While the impact that COVID-19 may have on the Company’s financial position, results of operations, and cash flows in the future cannot be estimated with certainty, b

Recent Accounting Standards

Recent Accounting Standards	9 Months Ended
	Jun. 30, 2021
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Standards	2. RECENT ACCOUNTING STANDARDS Accounting Standards Adopted Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU 2016-02, Leases and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (referred to collectively as “ASC 842”)). ASC 842 requires lessees to recognize a right-of-use (“ROU”) asset and corresponding lease liability for all leases with terms of more than 12 months and provides enhanced disclosure of lease activity. Recognition, measurement, and presentation of expenses depend on classification as either a finance or operating lease. ALJ adopted ASC 842 as of October 1, 2020, the effective and initial application date, using the modified retrospective approach. Comparative periods presented in the consolidated financial statements prior to October 1, 2020 continue to be presented under Accounting Standards Codification (“ASC”) 840. ALJ elected the package of practical expedients, which allowed the Company to not reassess, as of the adoption date, whether arrangements contain leases, the classification of existing leases, and the capitalization of initial direct costs of the existing leases. The Company also made a policy election to exclude leases with an initial term of 12 months or less from the Consolidated Balance Sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company’s October 1, 2020 adoption of ASC 842 resulted in the recognition of operating lease obligations totaling $42.6 million, based upon the present value of the remaining minimum rental payments using discount rates as of the adoption date, of which $5.2 million was in operating lease obligations - current installments, and $37.4 million was in operating lease liabilities, less current installments. In addition, ALJ recorded corresponding operating lease right-of-use assets totaling $33.4 million. The new standard did not have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. See Note 10 for further discussion of the Company’s leasing arrangements and required ASC 842 disclosures. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes on ALJ’s consolidated financial statements and related disclosures was not material. Accounting Standards Not Yet Adopted Internal-Use Software In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, Intangibles–Goodwill and Other Debt with Conversion and Other Options In August 2020, the FASB issued ASU 2020 - 06 Debt - Debt with Conversion and Other Options ( Subtopic 470-20 ) and Derivatives and Hedging - Contracts in Entity’s Own Equity ( Subtopic 815-40 ) ASU 2020 - 06 ASU 2020 - 06 ASU 2020-06 will be effective for ALJ on October 1, 2021 and will be applied on a full retrospective basis. ALJ does not anticipate the adoption of ASU 2020-06 to significantly impact its consolidated financial statements and related disclosures. Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options In May 2021, the FASB issued ASU 2021-04 Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40) ASU 2021-04 will be effective for ALJ on October 1, 2022. ALJ does not anticipate the adoption of ASU 2021-04 to significantly impact its consolidated financial statements and related disclosures.

Revenue recognition

Revenue recognition	9 Months Ended
	Jun. 30, 2021
Revenue Recognition [Abstract]
Revenue Recognition	3. REVENUE RECOGNITION Disaggregation of Revenue Revenue by contract type was as follows for the three and nine months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, Nine Months Ended June 30, ( in thousands 2021 2020 2021 2020 Faneuil: Healthcare $ 31,318 $ 22,119 $ 108,020 $ 71,474 Transportation 22,614 14,926 64,324 50,422 Utility 13,709 13,509 40,529 40,926 Government 4,148 9,166 26,698 10,796 Other 965 1,803 3,576 5,297 Total Faneuil $ 72,754 $ 61,523 $ 243,147 $ 178,915 Phoenix: Publisher MSA $ 24,588 $ 20,337 $ 67,555 $ 52,336 Non-MSA 3,652 1,200 11,522 11,982 Commercial MSA — 239 93 1,424 Non-MSA 2,466 2,778 6,868 7,589 Total Phoenix $ 30,706 $ 24,554 $ 86,038 $ 73,331 Total consolidated revenue, net $ 103,460 $ 86,077 $ 329,185 $ 252,246 Substantially all of Faneuil revenue is recognized over time and substantially all of Phoenix revenue is recognized at a point in time. Contract Assets and Liabilities The following table provides information about consolidated contract assets and contract liabilities on June 30, 2021 and September 30, 2020: ( in thousands June 30, 2021 September 30, 2020 Contract assets: Unbilled revenue (1) $ 885 $ 527 Total contract assets $ 885 $ 527 Contract liabilities: Deferred revenue $ 6,054 $ 10,875 Accrued rebates and material rights (2) 2,865 3,097 Total contract liabilities $ 8,919 $ 13,972 (1) Included in prepaid expenses and other current assets. Unbilled revenue represents rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Unbilled revenue is transferred to accounts receivable when the rights become unconditional. (2) Included in accrued expenses. The following table provides changes in consolidated contract assets and contract liabilities during the nine months ended June 30, 2021: ( in thousands Contract Assets Contract Liabilities Balance, September 30, 2020 $ 527 $ 13,972 Additions to contract assets 1,806 — Transfer from contract assets to accounts receivable (1,448 ) — Revenue recognized — (13,773 ) Accrued rebates — 3,747 Payment of rebates — (3,979 ) Cash received from customer — 8,952 Balance, June 30, 2021 $ 885 $ 8,919 Deferred Revenue and Remaining Performance Obligations Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from call center services, including non-refundable payments made prior to operations. Deferred revenue is recognized as revenue when transfer of control to customers has occurred. Customers are typically invoiced for these agreements in regular installments and revenue is recognized ratably over the contractual service period. The deferred revenue balance is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing, size and new business linearity within the quarter. Deferred revenue does not represent the total contract value of annual or multi-year non-cancellable agreements. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing products and services, not to receive financing from customers. Any potential financing fees are considered de minimis. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue. Transaction price allocated to the remaining performance obligation is influenced by several factors, including the timing of renewals and average contract terms. The Company applied practical expedients to exclude amounts related to performance obligations that are billed and recognized as they are delivered, optional purchases that do not represent material rights, and any estimated amounts of variable consideration that are subject to constraint in accordance with the new revenue standard. The Company has elected to apply the optional exemption for the disclosure of remaining performance obligations for contracts that have an original expected duration of one year or less, are billed and recognized as services are delivered and/or variable consideration allocated entirely to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. This primarily consists of call center services that are billed monthly based on the services performed each month . Costs to Obtain a Contract The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The costs to obtain a contract capitalized under the new revenue standard are primarily sales commissions paid to our sales force personnel. Capitalized costs may also include portions of fringe benefits and payroll taxes associated with compensation for incremental costs to acquire customer contracts and incentive payments to partners. These costs are amortized over the term of the contract or the estimated life of the customer relationship if renewals are expected and the renewal commission is not commensurate with the initial commission. The Company expenses sales commissions when incurred if the amortization period of the sales commission is one year or less. The accounting for incremental costs of obtaining a contract with a customer is consistent with the accounting under previous guidance. During the nine months ended June 30, 2021, the Company capitalized $0.1 million of costs to obtain a contract. During the nine months ended June 30, 2021, the Company amortized $0.4 million of these costs, which was included in selling, general, and administrative expense. The net book value of costs to obtain a contract was $0.3 Costs to Fulfill a Contract The Company also capitalizes costs incurred to fulfill its contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. Contract fulfillment costs are expensed to cost of revenue as the Company satisfies its performance obligations by transferring the service to the customer. These costs are amortized on a systematic basis over the expected period of benefit. During the nine months ended June 30, 2021, the Company capitalized $6.0 million of costs to fulfill a contract. The amortization of costs to fulfill contracts, which comprise set-up/transition activities, for the nine months ended June 30, 2021 was $7.6 million. The net book value of the costs to fulfill a contract as of June 30, 2021, was $3.5 million of which $2.9 million was in prepaid expenses and other current assets, and $0.6 million was in other assets. Capitalized costs to obtain and fulfill a contract are periodically reviewed for impairment. ALJ did not incur any impairment losses during the nine months ended June 30, 2021 or June 30, 2020.

Acquisitions and Divestitures

Acquisitions and Divestitures	9 Months Ended
	Jun. 30, 2021
Acquisitions And Divestitures [Abstract]
Acquisitions And Divestitures	4. ACQUISITIONS AND DIVESTITURES RDI Acquisition On July 31, 2019 (“RDI Purchase Date”), Faneuil acquired Realtime Digital Innovations, LLC (“RDI” and such acquisition, the “RDI Acquisition”), a provider of workflow automation and business intelligence services. The RDI Acquisition is expected to provide Faneuil with a sustainable competitive advantage in the business process outsourcing space by allowing it to, among others, (i) automate process workflows and business intelligence, (ii) generate labor efficiencies for existing programs, (iii) expand potential new client target entry points, (iv) improve overall customer experience, and (v) increase margin profiles through shorter sales cycles and software license sales. The aggregate cash consideration for the RDI Acquisition paid at closing was $2.5 million, with earn-outs up to $7.5 million to be paid upon the achievement of certain financial metrics over a three-year The RDI Acquisition was not material to the Company's results of operations, financial position, or cash flows and, therefore, the pro forma impact is not presented. The following schedule reflects the final fair value of assets acquired and liabilities assumed on the RDI Purchase Date ( in thousands Purchase Price Balance Sheet Caption Allocation Total current assets $ 53 Fixed assets 11 Identified intangible assets: Technology 3,400 Non-compete agreements 1,300 Goodwill (1) 2,675 Total assets 7,439 Accrued expenses (39 ) Fair value of deferred and contingent consideration (2) (4,900 ) Cash paid at closing $ 2,500 (1) Goodwill was fully impaired and written off in March 2020. (2) On June 30, 2021, the remaining maximum payment was $5.0 million. On June 30, 2021, the fair value of deferred and contingent consideration was $4.6 million, of which $2.4 million was included in accrued expenses and $2.2 million was included in other non-current liabilities on the Condensed Consolidated Balance Sheet. The original maximum payment was $7.5 million. Fair Value Adjustment of Deferred and Contingent Consideration Liabilities The fair value of the deferred and contingent consideration liabilities is remeasured to fair value at each reporting period using Level 3 inputs such as cash flow forecast, discount rate, and equity risk premium. The change in fair value, including accretion for the passage of time, is recognized in earnings until the deferred and contingent considerations are resolved. ALJ recorded a $1.1 million and a $0.9 million increase to deferred and contingent consideration liabilities during the three months ended June 30, 2021 and June 30, 2020, respectively, which was expensed to selling, general, and administrative expense. Acquisition-Related Expenses During the nine months ended June 30, 2020, the Company incurred less than $0.1 million of acquisition-related expenses in connection with the RDI Acquisition, which were expensed to selling, general, and administrative expense. There were no acquisition-related expenses incurred during any other periods presented. Carpets Divestiture As previously discussed in Note 1, ALJ sold Carpets during February 2021. As a result, ALJ recognized a loss on sale of $0.8 million during the nine months ended June 30, 2021, calculated as follows: ( in thousands Cash proceeds $ 500 Net assets sold (1,199 ) Transaction costs (62 ) Impact of income taxes — Total loss on sale $ (761 ) The carrying value of the net assets sold, at the time of closing, were as follows: ( in thousands Current assets $ 4,615 Intangible assets, net 318 Other long-term assets 740 Current liabilities (4,099 ) Long-term liabilities (375 ) Net assets sold $ 1,199 The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations on September 30, 2020: September 30, 2020 Assets: Accounts receivable $ 2,874 Inventories, net 1,221 Prepaid expenses and other current assets 733 Property and equipment, net 598 Intangible assets, net 335 Other long-term assets 51 Total assets of discontinued operations $ 5,812 Liabilities: Accounts payable $ 1,946 Accrued expenses 1,172 Other current liabilities 233 Total long-term liabilities 606 Total liabilities of discontinued operations $ 3,957 The following table presents information regarding certain components of loss from discontinued operations for the three and nine months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, Nine Months Ended June 30, ( in thousands 2021 2020 2021 2020 Net revenue $ — $ 9,277 $ 13,799 $ 29,599 Operating income (loss) — (461 ) (302 ) (3,323 ) Loss on sale — — (761 ) — Loss before income taxes — (461 ) (1,063 ) (3,324 ) Income tax expense — — — — Loss from discontinued operations — (461 ) (1,063 ) (3,324 ) The following table presents significant components of cash flows of discontinued operations for the nine months ended June 30, 2021 and June 30, 2020: Nine Months Ended June 30, ( in thousands 2021 2020 Operating activities Impairment of goodwill $ — $ 2,555 Depreciation and amortization expense 199 421 Provision for bad debt and obsolete inventory 27 41 Gain on disposal of assets, net — 6 Changes in operating assets and liabilities: Accounts receivable, net 399 816 Inventories, net (12 ) 88 Prepaid expenses, collateral deposits, and other current assets 24 (300 ) Other assets and liabilities, net 26 236 Investing activities Capital expenditures (7 ) (25 )

Concentration Risks

Concentration Risks	9 Months Ended
	Jun. 30, 2021
Risks And Uncertainties [Abstract]
Concentration Risks	5. CONCENTRATION RISKS Cash The Company maintains its cash balances in accounts, which, at times, may exceed federally insured limits. The Company has not experienced any loss in such accounts and believes there is little exposure to any significant credit risk. Major Customers and Accounts Receivable ALJ did not generate net revenue from any one customer in excess of 10% of consolidated net revenue. Each of ALJ’s segments had customers that represent more than 10% of their respective net revenue, as described below. Faneuil Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Customer A ** ** 11.8 % 11.4 % Customer B ** ** ** 10.1 ** Less than 10% of Faneuil net revenue. Accounts receivable from significant customers during the three or nine months ended June 30, 2021 totaled $6.6 Phoenix Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Customer A 25.5 % 21.5 % 23.3 % 24.9 % Customer B 24.9 24.2 23.0 19.1 Customer C 12.0 10.8 12.2 11.5 Accounts receivable from significant customers during the three or nine months ended June 30, 2021 totaled $3.7 Supplier Risk ALJ has only one segment, Phoenix, that purchases inventory. Phoenix had suppliers that represented more than 10% of both Phoenix inventory purchases and consolidated ALJ inventory purchases as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Supplier A 15.7 % 17.6 % 19.2 % 15.5 % Supplier B 11.4 17.4 12.0 17.7 Supplier C 10.0 10.0 ** ** ** Less than 10% of both Phoenix inventory purchases and consolidated ALJ inventory purchases. If these suppliers were unable to provide materials on a timely basis, Phoenix management believes alternative suppliers could provide the required supplies with minimal disruption to the business.

Composition of Certain Financia

Composition of Certain Financial Statement Captions	9 Months Ended
	Jun. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Composition of Certain Financial Statement Captions	6. COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS Accounts Receivable, Net The following table summarizes accounts receivable at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Accounts receivable $ 52,364 $ 57,478 Unbilled receivables 391 42 Accounts receivable 52,755 57,520 Less: allowance for doubtful accounts (154 ) (1,033 ) Accounts receivable, net $ 52,601 $ 56,487 Inventories, Net The following table summarizes inventories at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Raw materials $ 4,794 $ 4,260 Semi-finished goods/work in process 1,755 1,923 Finished goods 83 96 Inventories 6,632 6,279 Less: allowance for obsolete inventory (32 ) (47 ) Inventories, net $ 6,600 $ 6,232 Property and Equipment The following table summarizes property and equipment at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Machinery and equipment $ 39,057 $ 33,783 Leasehold improvements 30,849 30,843 Computer and office equipment 22,610 19,630 Building and improvements 16,874 16,896 Software 16,533 16,483 Land 9,267 9,267 Furniture and fixtures 7,749 7,749 Construction and equipment in process 1,018 — Vehicles 360 356 Property and equipment 144,317 135,007 Less: accumulated depreciation and amortization (77,081 ) (67,222 ) Property and equipment, net $ 67,236 $ 67,785 Property and equipment depreciation and amortization expense, including amounts related to finance leased assets, was $3.7 million and $3.5 million for the three months ended June 30, 2021 and June 30, 2020, respectively, and $11.1 million and $10.7 million for the nine months ended June 30, 2021 and June 30, 2020, respectively. Intangible Assets The following tables summarize identified intangible assets at the end of each reporting period: June 30, 2021 (in thousands) Weighted Average Original Life (Years) Weighted Average Remaining Life (Years) Gross Accumulated Amortization Net Customer relationships 12.0 5.7 $ 33,590 $ (17,921 ) $ 15,669 Trade names 27.6 22.4 10,240 (2,505 ) 7,735 Supply agreements 10.2 9.1 9,690 (4,996 ) 4,694 Technology 8.0 6.1 3,400 (815 ) 2,585 Non-compete agreements 6.6 4.3 1,550 (517 ) 1,033 Totals $ 58,470 $ (26,754 ) $ 31,716 September 30, 2020 (in thousands) Weighted Average Original Life (Years) Weighted Average Remaining Life (Years) Gross Accumulated Amortization Net Customer relationships 12.0 6.4 $ 33,590 $ (15,818 ) $ 17,772 Trade names 27.6 23.0 10,240 (2,209 ) 8,031 Supply agreements 10.2 9.1 9,690 (4,059 ) 5,631 Technology 8.0 6.8 3,400 (496 ) 2,904 Non-compete agreements 6.6 5.1 1,550 (336 ) 1,214 Totals $ 58,470 $ (22,918 ) $ 35,552 Intangible asset amortization expense was $1.3 million for both the three months ended June 30, 2021 and June 30, 2020, and $3.8 million and $3.9 million for the nine months ended June 30, 2021 and June 30, 2020, respectively. The following table presents expected future amortization expense for the remainder of Fiscal 2021 and yearly thereafter: (in thousands) Estimated Future Amortization Fiscal 2021 (remaining) $ 1,105 Fiscal 2022 4,596 Fiscal 2023 4,596 Fiscal 2024 4,457 Fiscal 2025 4,144 Thereafter 12,818 Total $ 31,716 Accrued Expenses The following table summarizes accrued expenses at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Accrued compensation and related taxes $ 12,290 $ 9,660 Rebates payable 2,865 3,097 Acquisition contingent consideration 2,400 2,500 Legal 1,600 — Other 1,410 352 Medical and benefit-related payables 1,233 1,438 Accrued board of director fees 522 130 Interest payable 136 674 Deferred lease incentives — 1,289 Total accrued expenses $ 22,456 $ 19,140 Workers’ Compensation Reserve The Company is self-insured for certain workers’ compensation claims as discussed below. The current portion of workers’ compensation reserve is disclosed with accrued expenses. The non-current portion of workers’ compensation reserve is disclosed with other non-current liabilities. Faneuil Phoenix.

Loss Per Share

Loss Per Share	9 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Loss Per Share	7. LOSS PER SHARE The following table summarizes basic and diluted loss per share of common stock for each period presented: Three Months Ended June 30, Nine Months Ended June 30, ( in thousands, except per share amounts 2021 2020 2021 2020 Net loss from continuing operations $ (3,504 ) $ (2,198 ) $ (4,643 ) $ (65,410 ) Net loss from discontinued operations, net of income taxes — (461 ) (1,063 ) (3,324 ) Net loss $ (3,504 ) $ (2,659 ) $ (5,706 ) $ (68,734 ) Loss per share of common stock–basic and diluted: Continuing operations (0.08 ) (0.05 ) (0.11 ) (1.55 ) Discontinued operations — (0.01 ) (0.03 ) (0.08 ) Loss per share (1) (0.08 ) (0.06 ) (0.13 ) (1.63 ) Weighted average shares of common stock outstanding– basic and diluted 42,321 42,173 42,320 42,173 Anti-dilutive shares excluded from loss per share calculation: Convertible debt 11,158 10,486 11,158 10,486 Employee stock option grants 1,355 1,804 1,355 1,804 Warrants 2,908 2,908 2,908 2,908 Total 15,421 15,198 15,421 15,198 (1) ALJ computed basic loss per share of common stock using net loss divided by the weighted-average number of shares of common stock outstanding during the period. As a result of recognizing net loss for all periods presented, basic and diluted loss per share are the same.

Debt

Debt	9 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Debt	8. DEBT ALJ’s components of debt and the respective interest rate at the end of each reporting period were as follows: June 30, 2021 September 30, 2020 (in thousands) Interest Rate Balance Interest Rate Balance Line of credit: Amended PNC Revolver 5.25 % $ — $ — Amended PNC Revolver LIBOR 4.00 — — Cerberus/PNC Revolver — 13.25 % 4,417 Cerberus/PNC Revolver LIBOR — 11.00 10,000 Less: deferred loan costs — (664 ) Line of credit, net of deferred loan costs $ — $ 13,753 Current portion of term loans: Current portion of Blue Torch Term Loan 8.50 $ 3,800 $ — Current portion of Cerberus Term Loan — 8.25 8,200 Current portion of equipment financing — 2.66 1,999 Less: deferred loan costs (1,125 ) (372 ) Current portion of term loans, net of deferred loan costs $ 2,675 $ 9,827 Term loans, less current portion: Blue Torch Term Loan, less current portion 8.50 $ 91,200 $ — Convertible Promissory Notes 8.25 6,026 — Cerberus Term Loan, less current portion — 8.25 62,336 Term B Loan — 12.25 4,415 Term C Loan — 8.25 5,782 Equipment financing, less current portion — 2.66 1,611 Less: deferred loan costs (3,039 ) (662 ) Term loans, less current portion, net of deferred loan costs $ 94,187 $ 73,482 Total line of credit and term loans $ 96,862 $ 97,062 Activity, as described in the paragraphs below, impacting ALJ’s debt for the nine months ended June 30, 2021 was as follows: (in thousands) Total Line of Credit Blue Torch Term Loan Convertible Promissory Notes Cerberus Term Loan Term B Loan Term C Loan Equipment Financing Deferred Loan Costs Total Balance, September 30, 2020 $ 14,417 $ — $ — $ 70,536 $ 4,415 $ 5,782 $ 3,610 $ (1,698 ) $ 97,062 Payments, net (5,943 ) — — (4,100 ) — — (1,417 ) — (11,460 ) Interest expense and other bank fees accreted to term loans 258 — — 642 422 244 — — 1,566 New equipment financing 3,750 3,750 Amortization of deferred loan costs — — — — — — — 527 527 Balance, June 29, 2021 prior to debt transactions 8,732 — — 67,078 4,837 6,026 5,943 (1,171 ) 91,445 Impacts from June 29, 2021 debt transactions: Existing debt payoff and other fees (8,732 ) — — (67,078 ) (4,837 ) — (6,056 ) — (86,703 ) New debt — 95,000 — — — — — (4,164 ) 90,836 Transfer of debt — — 6,026 — — (6,026 ) — — — Loss on debt extinguishment — — — — — — 113 1,171 1,284 Balance, June 30, 2021 $ — $ 95,000 $ 6,026 $ — $ — $ — $ — $ (4,164 ) $ 96,862 Description of Debt Obligations Entered into During the Three Months Ended June 30, 2021 New Term Loan On June 29, 2021, ALJ replaced its existing term loan and Term B Loan under the Cerberus/PNC Financing Agreement (each as defined below) by entering into a new term loan (“Blue Torch Term Loan”) with Blue Torch Business Finance, LLC for an aggregate under the total principal amount of $95.0 million. ALJ completed the transaction primarily to: • Refinance its existing term loans; • Extend the maturity date from November 2023 to June 2025; • Update certain financial covenants to align with projected results of operation; • Repay certain capitalized leases and all equipment financing arrangements; and • Improve liquidity and operating flexibility. The Blue Torch Term Loan, which matures on June 29, 2025, requires annual principal payments of $3.8 million paid in equal quarterly installments on the last business day of each fiscal quarter. The Blue Torch Term Loan bears interest at a floating rate of interest per year based on the London Interbank Offered Rate (“LIBOR”), subject to a minimum of 1.75% per year, plus an applicable margin of 6.75% per year. The Blue Torch Term Loan is secured by substantially all the Company’s assets, includes customary representations, warranties and covenants, including, among other things, restrictions on ALJ’s ability to incur additional indebtedness, dispose of assets, incur liens, make investments, pay dividends or other distributions, and enter into certain transactions with their affiliates, in each case subject to specified exceptions. The Blue Torch Term Loan has a prepayment penalty of 3%, 2%, and 1% of the outstanding principal balance if ALJ prepays the loan during year one, year two, and year three, respectively. Amendment and Restatement of Existing Facility In connection with the Blue Torch Term Loan, ALJ amended and restated in its entirety the Cerberus/PNC Financing Agreement (as defined below, and as amended and restated, the “Amended PNC Revolver”). The Cerberus/PNC Financing Agreement had two lenders, PNC Bank NA (“PNC”) and Cerberus Business Finance, LLC (“Cerberus”). As part of the Amended PNC Revolver, Cerberus was paid in full (“Cerberus Payoff”) using proceeds from the Blue Torch Term Loan. The Amended PNC Revolver provides for a total of $32.5 million, which includes (i) revolving borrowings, and (ii) the issuance of letters of credit. The letters of credit have a sublimit of $15.0 million. The Amended PNC Revolver matures June 29, 2025. Amounts outstanding under the Amended PNC Revolver bear interest at a floating rate of interest per year based on (i) the highest of (a) 2.75% per year, (b) the Federal Funds Open Rate plus 0.50% per year, (c) the LIBOR plus 1.00% per year, or (d) the prime lending rate of PNC, plus (ii) an applicable margin. The applicable margin is either 2.00% or 3.00% per year depending on whether or not ALJ meets certain debt covenant criteria as defined in the Amended PNC Revolver, respectively. Under the Amended PNC Revolver, ALJ has the ability to lock into a lower rate for a fixed period of time, e.g The Amended PNC Revolver is secured by substantially all the Company’s assets, includes customary representations, warranties and covenants, including, among other things, restrictions on ALJ’s ability to incur additional indebtedness, dispose of assets, incur liens, make investments, pay dividends or other distributions, and enter into certain transactions with their affiliates, in each case subject to specified exceptions. The Amended PNC Revolver has a prepayment penalty of 1%, 0.5%, and 0.25% of the total outstanding commitment, $32.5 million, if ALJ prepays the loan during year one, year two, and year three, respectively. On June 30, 2021, ALJ had an unused borrowing capacity of $29.2 million. Issuance of Convertible Promissory Notes In connection with the Cerberus Payoff, on June 29, 2021, ALJ issued convertible promissory notes in an aggregate principal amount of $6.0 million (the “Convertible Promissory Notes”) to two investors, including ALJ’s Chief Executive Officer and Chairman of the Board, Jess Ravich. The Convertible Promissory Notes replace and have substantially the same terms as ALJ’s prior Term C Loan (as defined below), except the Convertible Promissory Notes pay interest quarterly and the Term C Loan paid interest at maturity. The Convertible Promissory Notes accrue interest at the rate of 8.25% per year, compounded monthly with interest payable in cash quarterly in arrears on the last day of each calendar quarter on the outstanding principal balance until such principal amount is paid in full or until conversion. The principal and accrued interest owed under the Convertible Promissory Notes are convertible, at the option of the holders, into shares of the Company’s common stock, at any time prior to November 28, 2023, at a conversion price equal to the equal to the quotient of all amounts due under each Convertible Promissory Note divided by the conversion rate of $0.54 per common share. The Convertible Promissory Notes are (i) subordinate to the Blue Torch Term Loan and the Amended PNC Revolver, (ii) unsecured, and (iii) have a maturity date of November 28, 2023, subject to extension under certain circumstances. Loss on Debt Extinguishment The loss on debt extinguishment recorded during the three months ended June 30, 2021 was comprised of the following ( in thousands (in thousands) Deferred loan costs from Cerberus/PNC Financing Agreement $ 1,171 Prepayment penalties from Cerberus/PNC Financing Agreement 716 Prepayment penalties from equipment financing agreements, capital leases, and other 185 Total loss on debt extinguishment $ 2,072 Financial Covenant Compliance The Blue Torch Term Loan and the Amended PNC Revolver include certain financial covenants. As of June 30, 2021, ALJ was in compliance with all financial covenants. Estimated Future Minimum Principal Payments Estimated future minimum principal payments for the Blue Torch Term Loan and the Convertible Promissory Notes are as follows ( in thousands Year Ending June 30, Blue Torch Term Loan Convertible Promissory Notes Total 2022 $ 3,800 $ — $ 3,800 2023 3,800 — 3,800 2024 3,800 6,026 9,826 2025* 83,600 — 83,600 Total $ 95,000 $ 6,026 $ 101,026 * Description of Historical Debt Obligations Entered into During Prior Reporting Periods All of the debt described below was paid off in full on June 29, 2021 (“Payoff Date”). The disclosure is included to provide a historical perspective of ALJ’s debt prior to the Payoff Date. Term Loan and Line of Credit In August 2015, ALJ entered into a financing agreement (“Cerberus/PNC Financing Agreement”) with Cerberus, to borrow $105.0 million in a term loan (“Cerberus Term Loan”) and have available up to $32.5 million in a revolving loan (“Cerberus/PNC Revolver,” and together with the Cerberus Term Loan, “Cerberus/PNC Debt”). ALJ subsequently entered into nine amendments to the Cerberus/PNC Financing Agreement, of which four were executed during the period covered by this report and described below. The Cerberus/PNC Debt maturity date was November 28, 2023 (“Cerberus/PNC Debt Maturity Date”). Sixth Amendment to the Cerberus/PNC Financing Agreement In December 2019, ALJ entered into the Sixth Amendment (“Sixth Amendment”) to the Cerberus/PNC Financing Agreement. The Sixth Amendment amended certain terms and covenants in order to support the continued growth of the Company, as summarized below: • Converted $4.1 million in aggregate principal amount from the Cerberus Term Loan to a new term loan (referred to hereafter as “Term B Loan”) as discussed in more detail below; • Adjusted the leverage ratio; • Decreased the fixed charge coverage ratio; and • Increased the interest rate floor for LIBOR rate loans from 1.0% to 1.50% per year and for Prime rate loans from 3.25% to 4.75% per year. Additionally, the Sixth Amendment added a deleveraging fee (“Deleveraging Fee”), of which the first payment was made on March 31, 2020, and the second payment was due on June 30, 2020 unless one or more persons purchased a $2.5 million participating interest in the Cerberus Term Loan prior to June 30, 2020. The first payment was expensed to selling, general, and administrative expense. As a result of the Ninth Amendment (see Ninth Amendment to the Cerberus/PNC Financing Agreement Seventh Amendment to the Cerberus/PNC Financing Agreement In February 2020, ALJ entered into the Seventh Amendment (“Seventh Amendment”) to the Cerberus/PNC Financing Agreement to temporarily increase the Cerberus/PNC Revolver borrowing capacity as follows: • Extended the seasonal increase period, originally through February 14, 2020, to March 15, 2020, during which the available borrowing limit under the Cerberus/PNC Revolver was $32.5 million; and • Increased the available borrowing limit under the Cerberus/PNC Revolver from $25.0 million to $30.0 million for the period from March 16, 2020 to March 31, 2020. Eighth Amendment to the Cerberus/PNC Financing Agreement In March 2020, ALJ entered into the Eighth Amendment (“Eighth Amendment”) to the Cerberus/PNC Financing Agreement to amend certain terms and covenants, which included: • Removed the seasonal decreases in the available borrowing limit under the Cerberus/PNC Revolver such that the amount available to borrow thereunder remains $32.5 million through the Cerberus/PNC Debt Maturity Date; • Adjusted certain quarterly principal payment obligations; • Adjusted payment terms on the interest payable on the Term B Loan, from a mixture of cash and payable in kind to 100% payable in kind, until the Term A Loan is paid in full; and • Added a monthly fee of $0.1 million, from the period April 1, 2020 through the Cerberus/PNC Debt Maturity Date, which amounts were added to the Cerberus Term Loan, accrued interest at the Cerberus Term Loan rate, and was paid as part of the Cerberus Payoff. Ninth Amendment to the Cerberus/PNC Financing Agreement As a result of the decline in ALJ’s actual and forecasted results of operations, including the potential effects of COVID-19, ALJ sought an easement of certain debt covenants and the elimination of certain quarterly principal payment obligations under the Cerberus/PNC Financing Agreement. In May 2020, ALJ entered into the Ninth Amendment (“Ninth Amendment”) to the Cerberus/PNC Financing Agreement. The Ninth Amendment amended certain terms and covenants as summarized below: • • • • Amendment to the Junior Participation Agreements – Term C Loan” • Junior Participation Agreement – Term B Loan and Warrants Issued In December 2019, in connection with the Sixth Amendment, certain trusts and other entities formed for the benefit of, or otherwise affiliated with Mr. Ravich (“Ravich Entities”), entered into a Junior Participation Agreement with Cerberus (“Junior Participation Agreement”), pursuant to which the Ravich Entities agreed to purchase $4.1 million in junior participation interests in the Term B Loan under the Cerberus/PNC Financing Agreement (“Junior Participation” and such interests, “Junior Participation Interests”). The Junior Participation Interests were junior and subordinate to the Cerberus Term Loan in all respects and had no quarterly payments. Through March 2020, interest accrued under the Junior Participation (i) in cash, accrued at the same rate per year as the Cerberus Term Loan and paid monthly, and (ii) in kind, accrued at 4.00% per year, payable on the Cerberus/PNC Debt Maturity Date. See “ Amendment to Junior Participation Agreement -Term B Loan and Warrants Issued In connection with the Junior Participation, the Company issued fully vested warrants to purchase 1.23 million shares of the Company’s common stock (“Junior Participation Agreement Warrants”) to the Ravich Entities, with a five-year The fair value of the Junior Participation Agreement Warrants was calculated using the Black Scholes Model with the following assumptions: contractual life of five years, volatility of 42.3%, dividend yield of 0.00%, and annual risk-free interest rate of 1.7%. The fair value of the Junior Participation Agreement Warrants of $0.6 million was expensed to selling, general, and administrative expense in June 2020. Amendment to Junior Participation Agreement – Term B Loan and Warrants Issued In March 2020, in connection with the Eighth Amendment to the Cerberus/PNC Financing Agreement, the Ravich Entities entered into the First Amendment to the Junior Participation Agreement (“First Amendment to Junior Participation Agreement”). The amended terms under the First Amendment to Junior Participation Agreement include: • • Backstop Letter Agreement In connection with the First Amendment to Junior Participation Agreement, the Company issued fully vested warrants to purchase 0.4 million shares of the Company’s common stock (“ First Amendment to Junior Participation Agreement five-year The fair value of the First Amendment to Junior Participation Agreement First Amendment to Amendment to the Junior Participation Agreements – Term C Loan In May 2020, in connection with, and as a condition to, the Ninth Amendment, certain stockholders of the Company (“Term C Loan Junior Participants”), including Mr. Ravich, entered into, or amended certain Junior Participation Agreements (collectively, “Term C Loan Junior Participation Agreements”) with Cerberus. Pursuant to the Term C Loan Junior Participation Agreements (which was amended and/or restated from time to time), the Term C Loan Junior Participants acquired junior participation interests in the Term C Loan in an aggregate amount of $5.6 million on May 12, 2020 (“Term C Loan”). Mr. Ravich agreed to acquire additional junior participation interests in the Term B Loan in an aggregate amount of (i) $2.5 million on June 30, 2021 and (ii) $2.5 million on September 30, 2021 as long as Term B Loan was outstanding on such date. The $5.6 million Term C Loan and related accrued interest was convertible, at the option of the Term C Loan Junior Participants, into shares of the Company’s common stock, at a conversion price of $0.54 per share. The $5.6 million Term C Loan was junior and subordinate to the Cerberus/PNC Debt in all respects and had no quarterly payments. From May 2020 through the Cerberus/PNC Debt Maturity Date, the Term C Loan accrued interest in kind at the same rate per year as the Cerberus Term Loan. Although the Term C Loan was paid off as part of the Cerberus Payoff, the Term C Loan Junior Participants were issued the Convertible Promissory Notes as discussed above, under substantially identical terms as the Term C Loan, except the Convertible Promissory Notes pay interest quarterly and the Term C Loan paid interest at maturity . Summary of the Cerberus/PNC Financing Agreement and Amendments The Cerberus/PNC Financing Agreement and amendments thereto are summarized below: Description Use of Proceeds Origination Date Term Loans: Financing Agreement Phoenix acquisition August 2015 First Amendment Color Optics acquisition July 2016 Third Amendment Printing Components Business acquisition October 2017 Fourth Amendment Working capital November 2018 Sixth Amendment (Term B Loan) N/A December 2019 Eighth Amendment (Accreted fees) N/A March 2020 Ninth Amendment (Term C Loan) Working capital May 2020 Line of Credit: Cerberus/PNC Revolver (includes Second, Fifth, Seventh, Eighth, and Ninth Amendments) Working capital August 2015 Interest payments were due in arrears on the first day of each month. Quarterly principal payments were due on the last day of each fiscal quarter. Annual principal payments equal to 75% of ALJ’s excess cash flow (“ECF”), as defined in the Cerberus/PNC Financing Agreement, were due annually each December, upon delivery of the annual audited financial statements. The annual ECF calculation, based on results of operations for the years ended September 30, 2020 and 2019, did not require ALJ to make an annual ECF payment in December 2020 or 2019. In certain instances, ALJ was required to make mandatory term loan payments if ALJ receives cash outside the normal course of business. ALJ made one mandatory payment of $0.9 million in November 2019. No additional mandatory payments were made during any other period covered by this report. The Cerberus/PNC Debt was secured by substantially all the Company’s assets and imposed certain limitations on the Company, including its ability to incur debt, grant liens, initiate certain investments, declare dividends and dispose of assets. The Cerberus/PNC Debt also required ALJ to comply with certain debt covenants. Cerberus/PNC Debt - Loan Amendment Fees ALJ accounted for all Cerberus/PNC Debt amendments as debt modifications pursuant to ASC 470, Debt During the three and nine months ended June 30, 2020, ALJ paid $0.2 million and $0.9 million, respectively, of legal and other fees of which $0.1 million and $0.6 million, respectively, were added to deferred loan costs and amortized to interest expense through the Cerberus/PNC Debt Maturity Date. The remaining fees of $0.1 million and $0.3 million were expensed to selling, general, and administrative expense during the three and nine months ended June 30, 2020, respectively. Equipment Financing In June 2020, Phoenix purchased a Heidelberg Press for $2.6 million with a $1.8 million equipment financing (“June 2020 Equipment Financing”), $0.5 million cash, and a $0.3 million trade-in allowance. The June 2020 Equipment Financing term was 36 months, required monthly principal and interest payments, accrued interest at 2.66% per year, and was secured by the respective Heidelberg Press. In March 2021, Phoenix purchased a second Heidelberg Press for $4.5 million with a $3.5 million equipment financing (“March 2021 Equipment Financing” and together with the June 2020 Equipment Financing, the “Equipment Financings”), $0.9 million cash, and a $0.1 million trade-in allowance. The March 2021 Equipment Financing term was 60 months, required monthly principal and interest payments, accrued interest at 4.5% per year, and was secured by the respective Heidelberg Press. On June 29, 2021, the Equipment Financings were paid in full using proceeds from the Blue Torch Term Loan.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Jun. 30, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. COMMITMENTS AND CONTINGENCIES Employment Agreements ALJ maintains employment agreements with certain key executive officers that provide for a base salary and an annual bonus, with annual bonus amounts to be determined by the Board of Directors or the Chief Executive Officer. The agreements also provide for involuntary termination payments, which includes base salary, performance bonus, medical premiums, stock options, non-competition provisions, and other terms and conditions of employment. On June 30, 2021, contingent termination payments related to base salary and medical premiums totaled $1.1 million. Surety Bonds As part of Faneuil’s normal course of operations, certain customers require surety bonds guaranteeing the performance of a contract. On June 30, 2021, the face value of such surety bonds, which represents the maximum cash payments that Faneuil’s surety would be obligated to pay under certain circumstances of non-performance, was $41.5 million. To date, Faneuil has not made any non-performance payments to any of its sureties. Letters of Credit The Company had letters of credit totaling $3.3 million outstanding on June 30, 2021. Litigation, Claims, and Assessments Faneuil, Inc. v. 3M Company On September 22, 2016, Faneuil filed a complaint against 3M Company (“3M”) in the Circuit Court for the City of Richmond, Virginia (the “Richmond Circuit Court”). The dispute arose out of a subcontract entered into between 3M and Faneuil in relation to a toll road project in Portsmouth, Virginia. In its complaint, Faneuil sought recovery of $5.1 million based on three causes of action: breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. On October 14, 2016, 3M filed its answer and counterclaim against Faneuil. In its counterclaim, 3M sought recovery in excess of $10.0 million based on three claims: breach of contract/indemnification, breach of the implied covenant of good faith and fair dealing, and unjust enrichment. 3M’s counterclaim alleged it incurred approximately $3.2 million in damages as a result of Faneuil’s conduct and sought indemnification of an additional $10.0 million in damages incurred as a result of continued performance. The matter was tried in a bench trial from April 30, 2018 through May 2, 2018. On May 15, 2018, the Richmond Circuit Court issued its opinion, which dismissed both Faneuil’s complaint and 3M’s counterclaim with prejudice. No monetary damages were awarded to either Faneuil or 3M. As a result of the Richmond Circuit Court’s opinion, ALJ recorded a non-cash litigation loss of $2.9 million (the outstanding unreserved receivable from 3M), which was included in selling, general, and administrative expense during the year ended September 30, 2018. The matter was appealed to the Supreme Court of Virginia where Faneuil was awarded approximately $1.2 million, plus pre- and post-judgment interest. The matter was remanded to the trial court for calculation of interest and entry of final judgment. Faneuil and 3M settled on the amount of interest to be paid. The final judgment plus interest, which totaled $1.5 million, was received and recorded by Faneuil in December 2019. Of the total $1.5 million, $1.3 million was booked as a reduction to selling, general, and administrative expense, and $0.2 million was booked to interest from legal settlement on the Statement of Operations during the nine months ended June 30, 2020. Marshall v. Faneuil, Inc. On July 31, 2017, plaintiff Donna Marshall (“Marshall”) filed a proposed class action lawsuit in the Superior Court of the State of California for the County of Sacramento against Faneuil and ALJ. Marshall, a previously terminated Faneuil employee, alleges various California state law employment-related claims against Faneuil. Faneuil has answered the complaint and removed the matter to the United States District Court for the Eastern District of California; however, Marshall filed a motion to remand the case back to state court, which has been granted. In connection with the above, an amended complaint was filed by certain plaintiffs to add a claim for penalties under the California Private Attorneys General Act (the “PAGA Claim”). Faneuil demurred to the PAGA Claim and it was eventually dismissed by the trial court. The parties are currently engaged in limited discovery. A mediation was held on March 11, 2021 and discussions are ongoing. Faneuil believes this action is without merit and intends to defend this case vigorously. Harris v. Faneuil Lois Harris, an employee of Faneuil in Georgia, filed a collective action complaint on April 18, 2021 in the United States District Court for the Northern District of Georgia. Harris alleges, on behalf of herself and other current and former non-exempt Call Center Agent employees who received nondiscretionary bonuses for periods in which they worked overtime hours, that Faneuil violated the Fair Labor Standards Act by failing to include nondiscretionary bonuses in the regular rate of pay when calculating the overtime rate for Harris and other similarly-situated persons. Faneuil has engaged counsel to defend it in this action. The Company does not believe the resolution of this complaint will have a material adverse effect on the Company’s business, consolidated financial position, results of operations or cash flows. Other Litigation The Company has including the matters described above) usiness, consolidated financial position, results of operations or cash flows. Environmental Matters The operations of Phoenix are subject to various laws and related regulations governing environmental matters. Under such laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on or in, or emanating from, such property, as well as investigation of property damage. Phoenix incurs ongoing expenses associated with the performance of appropriate monitoring and remediation at certain of its locations.

Leases

Leases	9 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Leases	10. LEASES ALJ has operating leases for facilities, equipment, and vehicles, and finance leases for equipment. Over 95% of operating leases are for facilities. Many of the Company’s facilities leases contain renewal options and rent escalation clauses. The Company determines if an arrangement is a lease at inception and recognizes a finance or operating lease liability and right-of-use asset in the Company’s Consolidated Balance Sheet. Right-of-use assets and lease liabilities for both operating and finance leases are recognized based on present value of lease payments over the lease term at commencement date. In instances where the lease does not provide an implicit rate, the Company estimates an incremental borrowing rate (“IBR”) based on the information available at commencement date to determine the present value of lease payments. ALJ does not have a published credit rating because it has no publicly traded debt. However, the Company does have several privately held debt instruments that were taken into consideration. The Company generates its IBR, using a synthetic credit rating model that estimates the likelihood (probability) of a borrower receiving a given credit rating based on relevant credit factors or predictor variables. It is based on a regression analysis using selected financial ratios of publicly traded industry comparable companies and the companies’ credit ratings. The estimated IBR is then adjusted for (i) the length of the lease term, and (ii) the effect of designating specific collateral with a value equal to the unpaid lease payments. Finally, ALJ applies the estimated IBR on a lease-by-lease basis as each lease has different start and end dates and has different assumptions regarding purchase or renewal options. For facilities leases, ALJ accounts for non-lease components such as maintenance, taxes, and insurance, separately. For equipment leases, ALJ accounts for lease and non-lease components as a single lease component. The difference between the operating lease right-of-use assets and operating lease liabilities primarily relates to adjustments for deferred rent and tenant improvement allowances. The following table presents the location of the ROU assets and liabilities in the Consolidated Balance Sheet and ALJ’s weighted-average lease term and discount rate: (dollars in thousands) As of June 30, 2021 Finance Leases: Property and equipment, at cost $ 1,575 Less accumulated amortization (392 ) Property and equipment, net $ 1,183 Finance lease obligations, current portion $ 810 Finance lease obligations, less current portion 540 Total finance lease liabilities $ 1,350 Operating Leases: Operating lease right-of-use assets $ 30,736 Operating lease obligations - current installments $ 5,035 Operating lease obligations, less current installments 34,432 Total operating lease obligations $ 39,467 Weighted average remaining lease term (years): Finance 1.7 Operating 7.0 Weighted average discount rate: Finance 0.0 % Operating 10.6 % The following table presents the components of lease cost and the location of such cost in ALJ’s Consolidated Statements of Operations: (in thousands) Statement of Operations Location Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Finance Leases: Amortization of finance lease assets Selling, general, and administrative expense $ 189 $ 696 Amortization of finance lease assets Cost of revenue 115 343 Interest on finance lease liabilities Interest expense 74 162 Total finance lease cost 378 1,201 Operating Leases: Operating lease cost Selling, general, and administrative expense 1,724 5,207 Operating lease cost Cost of revenue 319 957 Variable lease cost Selling, general, and administrative expense 220 719 Short-term lease cost Selling, general, and administrative expense 10 28 Total operating lease cost 2,273 6,911 Total lease cost $ 2,651 $ 8,112 The following table presents supplemental cash flow information related to leases: (In thousands) Nine Months Ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for finance leases $ 162 Operating cash flows used for operating leases - continuing operations 3,750 Financing cash flows used for finance leases 3,987 Right-of-use assets obtained in exchange for lease obligations: Operating leases 576 Finance leases — Maturities of lease liabilities as of June 30, 2021 are as follows ( in thousands Year Ending June 30, Finance Leases Operating Leases 2022 $ 810 $ 8,875 2023 540 8,136 2024 — 7,399 2025 — 7,071 2026 — 7,012 Thereafter — 18,221 Total lease payments 1,350 56,714 Less: imputed interest — (17,247 ) Total present value of lease payments $ 1,350 $ 39,467 Reported as of June 30, 2021: Current $ 810 $ 5,035 Non-current 540 34,432 Total $ 1,350 $ 39,467

Equity

Equity	9 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Equity	11. EQUITY Common Stock Activity during the Nine Months Ended June 30, 2021 ALJ issued 23,256 shares of common stock upon the cashless exercise of stock options. Common Stock Activity during the Nine Months Ended June 30, 2020 ALJ did not have any common stock activity during the nine months ended June 30, 2020. Equity Incentive Plans ALJ’s equity incentive plans are broad-based, long-term programs intended to attract and retain talented employees and align stockholder and employee interests. Stock-Based Compensation. The following table sets forth the total stock-based compensation expense included in selling, general, and administrative expense on the Statements of Operations: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2021 2020 2021 2020 Stock options $ 15 $ 61 $ 47 $ 229 Common stock awards 26 28 79 83 Total stock-based compensation expense $ 41 $ 89 $ 126 $ 312 On June 30, 2021, ALJ had less than $0.1 million of total unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.5 years. Stock Option Awards ALJ did not issue any option grants during the three or nine months ended June 30, 2021. In May 2020, ALJ issued one option grant to purchase 150,000 shares of ALJ common stock with a total estimated fair value of less than $0.1 million. ALJ estimated the fair value of the option on the grant date using the Black-Scholes valuation model under the following assumptions: weighted average expected option life of 6.2 years, weighted average expected volatility of 47.8%, expected dividend yield of 0%, and weighted-average risk-free interest rate of 0.34%. ALJ had 110,000 option forfeitures during the three months ended June 30, 2021, and 360,000 option forfeitures during the nine months ended June 30, 2021. ALJ had no option forfeitures during the three or nine months ended June 30, 2020. The “intrinsic value” of options is the excess of the value of ALJ stock over the exercise price of such options. The total intrinsic value of options outstanding (of which all are vested or expected to vest) was less than $0.1 million on June 30, 2021. Common Stock Awards director compensation package that includes an annual common stock award. In connection with such awards, ALJ recorded stock-based compensation expense of less than $0.1 $0.1 Common Stock Options and Warrants Outstanding on June 30, 2021 On June 30, 2021, ALJ had 1.4 million stock options with a weighted average exercise price of $3.56 outstanding and warrants exercisable to purchase 2.9 million shares of common stock with a weighted average exercise price of $1.11 outstanding.

Income Tax

Income Tax	9 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Tax	12. INCOME TAX ALJ recorded a provision for income taxes of $0.4 million and $0.3 million for the three months ended June 30, 2021 and 2020, respectively, which was attributable to continuing operations. ALJ recorded a provision for income taxes of $0.7 million and a benefit from income taxes of $1.0 million for the nine months ended June 30, 2021 and 2020, respectively, which was attributable to continuing operations. ALJ’s effective tax rate for the nine months ended June 30, 2021 was (18.3%), as a result of generating state taxable income, offset by changes to the valuation allowance recorded against net deferred tax assets. ALJ’s effective tax rate for the nine months ended June 30, 2020 was 2.5%, which was also due to generating state taxable income, offset by changes to the valuation allowance recorded against net deferred tax assets. The decrease in ALJ’s effective tax rate was attributable to a decrease in forecasted pre-tax losses, as well as changes to the valuation allowance recorded against net deferred tax assets. ALJ did not record a provision for or benefit from income taxes for discontinued operations during any period presented.

Reportable Segments and Geograp

Reportable Segments and Geographic Information	9 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Reportable Segments and Geographic Information	13. REPORTABLE SEGMENTS AND GEOGRAPHIC INFORMATION Reportable Segments As discussed in Note 1, ALJ has organized its business along two reportable segments (Faneuil and Phoenix), together with a corporate group for certain support services. ALJ’s operating segments are aligned on the basis of products, services, and industry. The Chief Operating Decision Maker (“CODM”) is ALJ’s Chief Executive Officer. The CODM manages the business, allocates resources to, and assesses the performance of each operating segment using information about its net revenue and segment adjusted EBITDA. ALJ defines segment adjusted EBITDA as segment net income (loss) before depreciation and amortization expense, interest expense, litigation loss, recovery of litigation loss, restructuring and cost reduction initiatives, loan amendment expenses, fair value of warrants issued in connection with loan amendments, stock-based compensation, acquisition-related expenses, gain on disposal of assets, net, income taxes, loss on debt extinguishment, and other non-recurring items. Such amounts are detailed in our segment reconciliation below. The accounting policies for segment reporting are the same as for ALJ as a whole. The following tables present ALJ’s segment information for the three and nine months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, 2021 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 72,754 $ 30,706 $ — $ 103,460 Segment adjusted EBITDA - continuing operations $ 3,731 $ 5,476 $ (1,456 ) $ 7,751 Depreciation and amortization (4,944 ) Interest expense, net (2,623 ) Loss on debt extinguishment (2,072 ) Change in fair value of contingent consideration (1,100 ) Provision for income taxes (383 ) Bank fees accreted to term loans (300 ) Stock-based compensation (41 ) Restructuring and cost reduction initiatives (27 ) Loan amendment expenses 46 Gain on disposal of assets, net 189 Net loss $ (3,504 ) Nine Months Ended June 30, 2021 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 243,147 $ 86,038 $ — $ 329,185 Segment adjusted EBITDA - continuing operations $ 12,372 $ 14,774 $ (4,076 ) $ 23,070 Depreciation and amortization (14,912 ) Interest expense, net (7,656 ) Loss on debt extinguishment (2,072 ) Change in fair value of contingent consideration (1,100 ) Bank fees accreted to term loans (900 ) Provision for income taxes (719 ) Restructuring and cost reduction initiatives (288 ) Loan amendment expenses (131 ) Stock-based compensation (126 ) Gain on disposal of assets, net 191 Net loss from continuing operations $ (4,643 ) Net loss from discontinued operations, net of income taxes (1,063 ) Net loss $ (5,706 ) Three Months Ended June 30, 2020 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 61,523 $ 24,554 $ — $ 86,077 Segment adjusted EBITDA - continuing operations $ 4,263 $ 3,761 $ (906 ) $ 7,118 Depreciation and amortization (4,800 ) Interest expense, net (2,568 ) Change in fair value of contingent consideration (900 ) Restructuring and cost reduction initiatives (649 ) Bank fees accreted to term loans (300 ) Benefit from income taxes (250 ) Stock-based compensation (89 ) Loan amendment expenses (61 ) Gain on disposal of assets, net 301 Net loss from continuing operations (2,198 ) Net loss from discontinued operations, net of income taxes (461 ) Net loss $ (2,659 ) Nine Months Ended June 30, 2020 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 178,915 $ 73,331 $ — $ 252,246 Segment adjusted EBITDA - continuing operations $ 7,288 $ 10,779 $ (2,855 ) $ 15,212 Impairment of goodwill (56,492 ) Depreciation and amortization (14,675 ) Interest expense, net (7,976 ) Restructuring and cost reduction initiatives (1,440 ) Change in fair value of contingent consideration (900 ) Fair value of warrants issued in connection with loan amendments (716 ) Loan amendment expenses (475 ) Stock-based compensation (312 ) Bank fees accreted to term loans (300 ) Acquisition-related expenses (99 ) Interest from legal settlement 200 Gain on disposal of assets, net 299 Recovery of litigation loss 1,256 Benefit from income taxes 1,008 Net loss from continuing operations (65,410 ) Net loss from discontinued operations, net of income taxes (3,324 ) Net loss $ (68,734 ) Geographic Information Substantially all of the Company’s assets were located in the United States. Substantially all of the Company’s revenue was earned in the United States.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	9 Months Ended
	Jun. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization	Organization ALJ Regional Holdings, Inc. (including subsidiaries, referred to collectively herein as “ALJ” or “Company”) is a holding company. During the three and nine months ended June 30, 2021 and June 30, 2020, ALJ consisted of the following wholly-owned subsidiaries: • Faneuil, Inc. (including its subsidiaries, “Faneuil”) . Faneuil is a leading provider of call center services, back-office operations, staffing services, and toll collection services to government and commercial clients across the United States, focusing on the healthcare, utility, consumer goods, toll and transportation industries. Faneuil is headquartered in Hampton, Virginia. ALJ acquired Faneuil in October 2013. • Phoenix Color Corp. (including its subsidiaries, “Phoenix”) . Phoenix is a leading manufacturer of book components, educational materials and related products producing value-added components, heavily illustrated books and specialty commercial products using a broad spectrum of materials and decorative technologies. Phoenix is headquartered in Hagerstown, Maryland. ALJ acquired Phoenix in August 2015. • Floors-N-More, LLC, d/b/a, Carpets N’ More (“Carpets”) . Carpets is one of the largest floor covering retailers in Las Vegas, Nevada, and a provider of multiple products for the commercial, retail and home builder markets including all types of flooring, countertops, cabinets, window coverings and garage/closet organizers, with one retail location, as well as a stone and solid surface fabrication facility. ALJ acquired Carpets in April 2014. ALJ sold Carpets during February 2021. See Basis of Presentation below. As a result of selling one of its segments during February 2021, discussed below, ALJ has organized its business and corporate structure into two business segments: Faneuil and Phoenix.
Basis of Presentation	Basis of Presentation In January 2021, ALJ entered into a Purchase and Sale Agreement (“PSA”), by and among the Company, Superior Interior Finishes, LLC, a Nevada limited liability company (“Purchaser” or “Superior”) and Carpets, pursuant to which the Company agreed to sell 100% of the membership interests of Carpets to the Purchaser for an aggregate purchase price of $0.5 million (the “Purchase Price”) in cash (the “Transaction”). At the time of the PSA, Superior was 100% owned by Steve Chesin, the Chief Executive Officer of Carpets. The Company entered into the PSA because its Carpets business segment had been deemed a non-core holding and had underperformed over the past several years. The Transaction, which was approved by a committee of the Board comprised solely of certain independent directors of the Company, closed in February 2021. As such, the results of operations, assets, liabilities, and cash flows of Carpets were classified as discontinued operations in ALJ’s financial statements for all periods presented. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The Condensed Consolidated Financial Statements and footnotes thereto are unaudited. In the opinion of the Company’s management, the Condensed Consolidated Financial Statements reflect all adjustments, which are of a normal recurring nature, that are necessary for a fair presentation of the Company’s interim financial results. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue and expenses that are reported in the Condensed Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Interim financial results are not necessarily indicative of financial results for a full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020, filed with the SEC on December 18, 2020.
Impact of Coronavirus Pandemic	Impact of Coronavirus Pandemic In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic, which continues to spread throughout the U.S. COVID-19 is having an unprecedented impact on the U.S. economy as federal, state, and local governments react to this public health crisis. Since the beginning of the COVID-19 pandemic, all of ALJ’s subsidiaries have been deemed “Essential Services” and have continued to operate with limited disruption. To date, COVID-19 has not materially impacted ALJ’s financial position, results of operations or cash flows. The Company took immediate actions in March 2020 to enable working-from-home where possible and put in place increased safety precautions, including social distancing, at other locations where essential services on site are required. The duration of these measures is unknown, may be extended and additional measures may be imposed. Although some employees have recently started to return to work, ALJ still has a significant portion of its work force working from home. Although ALJ has not been materially impacted by COVID-19, ALJ could be impacted by COVID-19 in the near term by lower sales volumes in several parts of ALJ’s business, resulting in lower revenue and profit. While the impact of COVID-19 on the Company’s future financial position, results of operations and cash flows cannot be estimated with certainty, such impact could be significant if the global pandemic continues to adversely impact the U.S. economy for an extended period of time. The extent to which COVID-19 impacts ALJ’s operations will depend on future developments, which are highly uncertain. These include among others, the duration of the outbreak, vaccination rate, emergence of new variants, if portions of the Company’s business segments are recharacterized as non-essential for which closure of some or all of the Company’s operations could be required, As of June 30, 2021, ALJ’s total available liquidity was $37.6 million, which included $8.4 million of cash and cash equivalents and $29.2 million of unused borrowing capacity under the Company’s revolving credit facility. While the impact that COVID-19 may have on the Company’s financial position, results of operations, and cash flows in the future cannot be estimated with certainty, b

Revenue recognition (Tables)

Revenue recognition (Tables)	9 Months Ended
	Jun. 30, 2021
Revenue Recognition [Abstract]
Disaggregation of Revenue	Revenue by contract type was as follows for the three and nine months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, Nine Months Ended June 30, ( in thousands 2021 2020 2021 2020 Faneuil: Healthcare $ 31,318 $ 22,119 $ 108,020 $ 71,474 Transportation 22,614 14,926 64,324 50,422 Utility 13,709 13,509 40,529 40,926 Government 4,148 9,166 26,698 10,796 Other 965 1,803 3,576 5,297 Total Faneuil $ 72,754 $ 61,523 $ 243,147 $ 178,915 Phoenix: Publisher MSA $ 24,588 $ 20,337 $ 67,555 $ 52,336 Non-MSA 3,652 1,200 11,522 11,982 Commercial MSA — 239 93 1,424 Non-MSA 2,466 2,778 6,868 7,589 Total Phoenix $ 30,706 $ 24,554 $ 86,038 $ 73,331 Total consolidated revenue, net $ 103,460 $ 86,077 $ 329,185 $ 252,246
Contract with Customer Asset and Liabilities	The following table provides information about consolidated contract assets and contract liabilities on June 30, 2021 and September 30, 2020: ( in thousands June 30, 2021 September 30, 2020 Contract assets: Unbilled revenue (1) $ 885 $ 527 Total contract assets $ 885 $ 527 Contract liabilities: Deferred revenue $ 6,054 $ 10,875 Accrued rebates and material rights (2) 2,865 3,097 Total contract liabilities $ 8,919 $ 13,972 (1) Included in prepaid expenses and other current assets. Unbilled revenue represents rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Unbilled revenue is transferred to accounts receivable when the rights become unconditional. (2) Included in accrued expenses. The following table provides changes in consolidated contract assets and contract liabilities during the nine months ended June 30, 2021: ( in thousands Contract Assets Contract Liabilities Balance, September 30, 2020 $ 527 $ 13,972 Additions to contract assets 1,806 — Transfer from contract assets to accounts receivable (1,448 ) — Revenue recognized — (13,773 ) Accrued rebates — 3,747 Payment of rebates — (3,979 ) Cash received from customer — 8,952 Balance, June 30, 2021 $ 885 $ 8,919

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	9 Months Ended
	Jun. 30, 2021
Acquisitions And Divestitures [Abstract]
Summary of Final Fair Values of Assets Acquired and Liabilities Assumed on Business Purchase Date and Purchase Price Details	The following schedule reflects the final fair value of assets acquired and liabilities assumed on the RDI Purchase Date ( in thousands Purchase Price Balance Sheet Caption Allocation Total current assets $ 53 Fixed assets 11 Identified intangible assets: Technology 3,400 Non-compete agreements 1,300 Goodwill (1) 2,675 Total assets 7,439 Accrued expenses (39 ) Fair value of deferred and contingent consideration (2) (4,900 ) Cash paid at closing $ 2,500 (1) Goodwill was fully impaired and written off in March 2020. (2) On June 30, 2021, the remaining maximum payment was $5.0 million. On June 30, 2021, the fair value of deferred and contingent consideration was $4.6 million, of which $2.4 million was included in accrued expenses and $2.2 million was included in other non-current liabilities on the Condensed Consolidated Balance Sheet. The original maximum payment was $7.5 million.
Summary of Discontinued Operations	As previously discussed in Note 1, ALJ sold Carpets during February 2021. As a result, ALJ recognized a loss on sale of $0.8 million during the nine months ended June 30, 2021, calculated as follows: ( in thousands Cash proceeds $ 500 Net assets sold (1,199 ) Transaction costs (62 ) Impact of income taxes — Total loss on sale $ (761 ) The carrying value of the net assets sold, at the time of closing, were as follows: ( in thousands Current assets $ 4,615 Intangible assets, net 318 Other long-term assets 740 Current liabilities (4,099 ) Long-term liabilities (375 ) Net assets sold $ 1,199 The following table presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations on September 30, 2020: September 30, 2020 Assets: Accounts receivable $ 2,874 Inventories, net 1,221 Prepaid expenses and other current assets 733 Property and equipment, net 598 Intangible assets, net 335 Other long-term assets 51 Total assets of discontinued operations $ 5,812 Liabilities: Accounts payable $ 1,946 Accrued expenses 1,172 Other current liabilities 233 Total long-term liabilities 606 Total liabilities of discontinued operations $ 3,957 The following table presents information regarding certain components of loss from discontinued operations for the three and nine months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, Nine Months Ended June 30, ( in thousands 2021 2020 2021 2020 Net revenue $ — $ 9,277 $ 13,799 $ 29,599 Operating income (loss) — (461 ) (302 ) (3,323 ) Loss on sale — — (761 ) — Loss before income taxes — (461 ) (1,063 ) (3,324 ) Income tax expense — — — — Loss from discontinued operations — (461 ) (1,063 ) (3,324 ) The following table presents significant components of cash flows of discontinued operations for the nine months ended June 30, 2021 and June 30, 2020: Nine Months Ended June 30, ( in thousands 2021 2020 Operating activities Impairment of goodwill $ — $ 2,555 Depreciation and amortization expense 199 421 Provision for bad debt and obsolete inventory 27 41 Gain on disposal of assets, net — 6 Changes in operating assets and liabilities: Accounts receivable, net 399 816 Inventories, net (12 ) 88 Prepaid expenses, collateral deposits, and other current assets 24 (300 ) Other assets and liabilities, net 26 236 Investing activities Capital expenditures (7 ) (25 )

Concentration Risks (Tables)

Concentration Risks (Tables)	9 Months Ended
	Jun. 30, 2021
Sales Revenue, Segment [Member] | Faneuil [Member]
Schedule of Concentration Percentage of Different Customers	Faneuil Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Customer A ** ** 11.8 % 11.4 % Customer B ** ** ** 10.1 ** Less than 10% of Faneuil net revenue.
Sales Revenue, Segment [Member] | Phoenix [Member]
Schedule of Concentration Percentage of Different Customers	Phoenix Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Customer A 25.5 % 21.5 % 23.3 % 24.9 % Customer B 24.9 24.2 23.0 19.1 Customer C 12.0 10.8 12.2 11.5
Inventory Purchases [Member] | Phoenix [Member]
Schedule of Concentration Percentage of Different Customers	ALJ has only one segment, Phoenix, that purchases inventory. Phoenix had suppliers that represented more than 10% of both Phoenix inventory purchases and consolidated ALJ inventory purchases as follows: Three Months Ended June 30, Nine Months Ended June 30, 2021 2020 2021 2020 Supplier A 15.7 % 17.6 % 19.2 % 15.5 % Supplier B 11.4 17.4 12.0 17.7 Supplier C 10.0 10.0 ** ** ** Less than 10% of both Phoenix inventory purchases and consolidated ALJ inventory purchases.

Composition of Certain Financ_2

Composition of Certain Financial Statement Captions (Tables)	9 Months Ended
	Jun. 30, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Summary of Accounts Receivable	The following table summarizes accounts receivable at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Accounts receivable $ 52,364 $ 57,478 Unbilled receivables 391 42 Accounts receivable 52,755 57,520 Less: allowance for doubtful accounts (154 ) (1,033 ) Accounts receivable, net $ 52,601 $ 56,487
Summary of Inventories	The following table summarizes inventories at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Raw materials $ 4,794 $ 4,260 Semi-finished goods/work in process 1,755 1,923 Finished goods 83 96 Inventories 6,632 6,279 Less: allowance for obsolete inventory (32 ) (47 ) Inventories, net $ 6,600 $ 6,232
Summary of Property and Equipment	The following table summarizes property and equipment at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Machinery and equipment $ 39,057 $ 33,783 Leasehold improvements 30,849 30,843 Computer and office equipment 22,610 19,630 Building and improvements 16,874 16,896 Software 16,533 16,483 Land 9,267 9,267 Furniture and fixtures 7,749 7,749 Construction and equipment in process 1,018 — Vehicles 360 356 Property and equipment 144,317 135,007 Less: accumulated depreciation and amortization (77,081 ) (67,222 ) Property and equipment, net $ 67,236 $ 67,785
Summary of Intangible Assets	The following tables summarize identified intangible assets at the end of each reporting period: June 30, 2021 (in thousands) Weighted Average Original Life (Years) Weighted Average Remaining Life (Years) Gross Accumulated Amortization Net Customer relationships 12.0 5.7 $ 33,590 $ (17,921 ) $ 15,669 Trade names 27.6 22.4 10,240 (2,505 ) 7,735 Supply agreements 10.2 9.1 9,690 (4,996 ) 4,694 Technology 8.0 6.1 3,400 (815 ) 2,585 Non-compete agreements 6.6 4.3 1,550 (517 ) 1,033 Totals $ 58,470 $ (26,754 ) $ 31,716 September 30, 2020 (in thousands) Weighted Average Original Life (Years) Weighted Average Remaining Life (Years) Gross Accumulated Amortization Net Customer relationships 12.0 6.4 $ 33,590 $ (15,818 ) $ 17,772 Trade names 27.6 23.0 10,240 (2,209 ) 8,031 Supply agreements 10.2 9.1 9,690 (4,059 ) 5,631 Technology 8.0 6.8 3,400 (496 ) 2,904 Non-compete agreements 6.6 5.1 1,550 (336 ) 1,214 Totals $ 58,470 $ (22,918 ) $ 35,552
Summary of Expected Future Amortization Expense	The following table presents expected future amortization expense for the remainder of Fiscal 2021 and yearly thereafter: (in thousands) Estimated Future Amortization Fiscal 2021 (remaining) $ 1,105 Fiscal 2022 4,596 Fiscal 2023 4,596 Fiscal 2024 4,457 Fiscal 2025 4,144 Thereafter 12,818 Total $ 31,716
Summary of Accrued Expenses	The following table summarizes accrued expenses at the end of each reporting period: June 30, September 30, (in thousands) 2021 2020 Accrued compensation and related taxes $ 12,290 $ 9,660 Rebates payable 2,865 3,097 Acquisition contingent consideration 2,400 2,500 Legal 1,600 — Other 1,410 352 Medical and benefit-related payables 1,233 1,438 Accrued board of director fees 522 130 Interest payable 136 674 Deferred lease incentives — 1,289 Total accrued expenses $ 22,456 $ 19,140

Loss Per Share (Tables)

Loss Per Share (Tables)	9 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Summary of Basic and Diluted Loss Per Share of Common Stock	The following table summarizes basic and diluted loss per share of common stock for each period presented: Three Months Ended June 30, Nine Months Ended June 30, ( in thousands, except per share amounts 2021 2020 2021 2020 Net loss from continuing operations $ (3,504 ) $ (2,198 ) $ (4,643 ) $ (65,410 ) Net loss from discontinued operations, net of income taxes — (461 ) (1,063 ) (3,324 ) Net loss $ (3,504 ) $ (2,659 ) $ (5,706 ) $ (68,734 ) Loss per share of common stock–basic and diluted: Continuing operations (0.08 ) (0.05 ) (0.11 ) (1.55 ) Discontinued operations — (0.01 ) (0.03 ) (0.08 ) Loss per share (1) (0.08 ) (0.06 ) (0.13 ) (1.63 ) Weighted average shares of common stock outstanding– basic and diluted 42,321 42,173 42,320 42,173 Anti-dilutive shares excluded from loss per share calculation: Convertible debt 11,158 10,486 11,158 10,486 Employee stock option grants 1,355 1,804 1,355 1,804 Warrants 2,908 2,908 2,908 2,908 Total 15,421 15,198 15,421 15,198 (1)

Debt (Tables)

Debt (Tables)	9 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Summary of Line of Credit, Term Loan and Equipment Financing	ALJ’s components of debt and the respective interest rate at the end of each reporting period were as follows: June 30, 2021 September 30, 2020 (in thousands) Interest Rate Balance Interest Rate Balance Line of credit: Amended PNC Revolver 5.25 % $ — $ — Amended PNC Revolver LIBOR 4.00 — — Cerberus/PNC Revolver — 13.25 % 4,417 Cerberus/PNC Revolver LIBOR — 11.00 10,000 Less: deferred loan costs — (664 ) Line of credit, net of deferred loan costs $ — $ 13,753 Current portion of term loans: Current portion of Blue Torch Term Loan 8.50 $ 3,800 $ — Current portion of Cerberus Term Loan — 8.25 8,200 Current portion of equipment financing — 2.66 1,999 Less: deferred loan costs (1,125 ) (372 ) Current portion of term loans, net of deferred loan costs $ 2,675 $ 9,827 Term loans, less current portion: Blue Torch Term Loan, less current portion 8.50 $ 91,200 $ — Convertible Promissory Notes 8.25 6,026 — Cerberus Term Loan, less current portion — 8.25 62,336 Term B Loan — 12.25 4,415 Term C Loan — 8.25 5,782 Equipment financing, less current portion — 2.66 1,611 Less: deferred loan costs (3,039 ) (662 ) Term loans, less current portion, net of deferred loan costs $ 94,187 $ 73,482 Total line of credit and term loans $ 96,862 $ 97,062 Activity, as described in the paragraphs below, impacting ALJ’s debt for the nine months ended June 30, 2021 was as follows: (in thousands) Total Line of Credit Blue Torch Term Loan Convertible Promissory Notes Cerberus Term Loan Term B Loan Term C Loan Equipment Financing Deferred Loan Costs Total Balance, September 30, 2020 $ 14,417 $ — $ — $ 70,536 $ 4,415 $ 5,782 $ 3,610 $ (1,698 ) $ 97,062 Payments, net (5,943 ) — — (4,100 ) — — (1,417 ) — (11,460 ) Interest expense and other bank fees accreted to term loans 258 — — 642 422 244 — — 1,566 New equipment financing 3,750 3,750 Amortization of deferred loan costs — — — — — — — 527 527 Balance, June 29, 2021 prior to debt transactions 8,732 — — 67,078 4,837 6,026 5,943 (1,171 ) 91,445 Impacts from June 29, 2021 debt transactions: Existing debt payoff and other fees (8,732 ) — — (67,078 ) (4,837 ) — (6,056 ) — (86,703 ) New debt — 95,000 — — — — — (4,164 ) 90,836 Transfer of debt — — 6,026 — — (6,026 ) — — — Loss on debt extinguishment — — — — — — 113 1,171 1,284 Balance, June 30, 2021 $ — $ 95,000 $ 6,026 $ — $ — $ — $ — $ (4,164 ) $ 96,862
Schedule of Loss on Extinguishment of Debt	The loss on debt extinguishment recorded during the three months ended June 30, 2021 was comprised of the following ( in thousands (in thousands) Deferred loan costs from Cerberus/PNC Financing Agreement $ 1,171 Prepayment penalties from Cerberus/PNC Financing Agreement 716 Prepayment penalties from equipment financing agreements, capital leases, and other 185 Total loss on debt extinguishment $ 2,072
Schedule of Estimated Future Minimum Payments under Debt	Estimated future minimum principal payments for the Blue Torch Term Loan and the Convertible Promissory Notes are as follows ( in thousands Year Ending June 30, Blue Torch Term Loan Convertible Promissory Notes Total 2022 $ 3,800 $ — $ 3,800 2023 3,800 — 3,800 2024 3,800 6,026 9,826 2025* 83,600 — 83,600 Total $ 95,000 $ 6,026 $ 101,026 *
Summary of Financing Agreement and Amendments	The Cerberus/PNC Financing Agreement and amendments thereto are summarized below: Description Use of Proceeds Origination Date Term Loans: Financing Agreement Phoenix acquisition August 2015 First Amendment Color Optics acquisition July 2016 Third Amendment Printing Components Business acquisition October 2017 Fourth Amendment Working capital November 2018 Sixth Amendment (Term B Loan) N/A December 2019 Eighth Amendment (Accreted fees) N/A March 2020 Ninth Amendment (Term C Loan) Working capital May 2020 Line of Credit: Cerberus/PNC Revolver (includes Second, Fifth, Seventh, Eighth, and Ninth Amendments) Working capital August 2015

Leases (Tables)

Leases (Tables)	9 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Summary of Location of ROU Assets and Liabilities in Consolidated Balance Sheet and Weighted Average Lease Term and Discount Rate	The following table presents the location of the ROU assets and liabilities in the Consolidated Balance Sheet and ALJ’s weighted-average lease term and discount rate: (dollars in thousands) As of June 30, 2021 Finance Leases: Property and equipment, at cost $ 1,575 Less accumulated amortization (392 ) Property and equipment, net $ 1,183 Finance lease obligations, current portion $ 810 Finance lease obligations, less current portion 540 Total finance lease liabilities $ 1,350 Operating Leases: Operating lease right-of-use assets $ 30,736 Operating lease obligations - current installments $ 5,035 Operating lease obligations, less current installments 34,432 Total operating lease obligations $ 39,467 Weighted average remaining lease term (years): Finance 1.7 Operating 7.0 Weighted average discount rate: Finance 0.0 % Operating 10.6 %
Summary of Components of Lease Cost	The following table presents the components of lease cost and the location of such cost in ALJ’s Consolidated Statements of Operations: (in thousands) Statement of Operations Location Three Months Ended June 30, 2021 Nine Months Ended June 30, 2021 Finance Leases: Amortization of finance lease assets Selling, general, and administrative expense $ 189 $ 696 Amortization of finance lease assets Cost of revenue 115 343 Interest on finance lease liabilities Interest expense 74 162 Total finance lease cost 378 1,201 Operating Leases: Operating lease cost Selling, general, and administrative expense 1,724 5,207 Operating lease cost Cost of revenue 319 957 Variable lease cost Selling, general, and administrative expense 220 719 Short-term lease cost Selling, general, and administrative expense 10 28 Total operating lease cost 2,273 6,911 Total lease cost $ 2,651 $ 8,112
Supplemental Cash Flow Information Related to Leases	The following table presents supplemental cash flow information related to leases: (In thousands) Nine Months Ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for finance leases $ 162 Operating cash flows used for operating leases - continuing operations 3,750 Financing cash flows used for finance leases 3,987 Right-of-use assets obtained in exchange for lease obligations: Operating leases 576 Finance leases —
Schedule of Maturity of Lease Liabilities	Maturities of lease liabilities as of June 30, 2021 are as follows ( in thousands Year Ending June 30, Finance Leases Operating Leases 2022 $ 810 $ 8,875 2023 540 8,136 2024 — 7,399 2025 — 7,071 2026 — 7,012 Thereafter — 18,221 Total lease payments 1,350 56,714 Less: imputed interest — (17,247 ) Total present value of lease payments $ 1,350 $ 39,467 Reported as of June 30, 2021: Current $ 810 $ 5,035 Non-current 540 34,432 Total $ 1,350 $ 39,467

Equity (Tables)

Equity (Tables)	9 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Summary of Total Stock-Based Compensation Expense Included in Selling General and Administrative Expense on Statements of Operations	The following table sets forth the total stock-based compensation expense included in selling, general, and administrative expense on the Statements of Operations: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2021 2020 2021 2020 Stock options $ 15 $ 61 $ 47 $ 229 Common stock awards 26 28 79 83 Total stock-based compensation expense $ 41 $ 89 $ 126 $ 312

Reportable Segments and Geogr_2

Reportable Segments and Geographic Information (Tables)	9 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Summary of Segment Information	The following tables present ALJ’s segment information for the three and nine months ended June 30, 2021 and June 30, 2020: Three Months Ended June 30, 2021 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 72,754 $ 30,706 $ — $ 103,460 Segment adjusted EBITDA - continuing operations $ 3,731 $ 5,476 $ (1,456 ) $ 7,751 Depreciation and amortization (4,944 ) Interest expense, net (2,623 ) Loss on debt extinguishment (2,072 ) Change in fair value of contingent consideration (1,100 ) Provision for income taxes (383 ) Bank fees accreted to term loans (300 ) Stock-based compensation (41 ) Restructuring and cost reduction initiatives (27 ) Loan amendment expenses 46 Gain on disposal of assets, net 189 Net loss $ (3,504 ) Nine Months Ended June 30, 2021 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 243,147 $ 86,038 $ — $ 329,185 Segment adjusted EBITDA - continuing operations $ 12,372 $ 14,774 $ (4,076 ) $ 23,070 Depreciation and amortization (14,912 ) Interest expense, net (7,656 ) Loss on debt extinguishment (2,072 ) Change in fair value of contingent consideration (1,100 ) Bank fees accreted to term loans (900 ) Provision for income taxes (719 ) Restructuring and cost reduction initiatives (288 ) Loan amendment expenses (131 ) Stock-based compensation (126 ) Gain on disposal of assets, net 191 Net loss from continuing operations $ (4,643 ) Net loss from discontinued operations, net of income taxes (1,063 ) Net loss $ (5,706 ) Three Months Ended June 30, 2020 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 61,523 $ 24,554 $ — $ 86,077 Segment adjusted EBITDA - continuing operations $ 4,263 $ 3,761 $ (906 ) $ 7,118 Depreciation and amortization (4,800 ) Interest expense, net (2,568 ) Change in fair value of contingent consideration (900 ) Restructuring and cost reduction initiatives (649 ) Bank fees accreted to term loans (300 ) Benefit from income taxes (250 ) Stock-based compensation (89 ) Loan amendment expenses (61 ) Gain on disposal of assets, net 301 Net loss from continuing operations (2,198 ) Net loss from discontinued operations, net of income taxes (461 ) Net loss $ (2,659 ) Nine Months Ended June 30, 2020 (in thousands) Faneuil Phoenix ALJ Consolidated Net revenue $ 178,915 $ 73,331 $ — $ 252,246 Segment adjusted EBITDA - continuing operations $ 7,288 $ 10,779 $ (2,855 ) $ 15,212 Impairment of goodwill (56,492 ) Depreciation and amortization (14,675 ) Interest expense, net (7,976 ) Restructuring and cost reduction initiatives (1,440 ) Change in fair value of contingent consideration (900 ) Fair value of warrants issued in connection with loan amendments (716 ) Loan amendment expenses (475 ) Stock-based compensation (312 ) Bank fees accreted to term loans (300 ) Acquisition-related expenses (99 ) Interest from legal settlement 200 Gain on disposal of assets, net 299 Recovery of litigation loss 1,256 Benefit from income taxes 1,008 Net loss from continuing operations (65,410 ) Net loss from discontinued operations, net of income taxes (3,324 ) Net loss $ (68,734 )

Organization and Basis of Pre_3

Organization and Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Jan. 31, 2021	Jun. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Line Of Credit Facility [Line Items]
Proceeds from sale of Carpets, net of transaction costs		$ 500
Total available liquidity		37,600
Cash and cash equivalents		8,415	$ 6,050	$ 7,393	$ 4,529
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Unused borrowing capacity		$ 29,200
Carpets [Member] | Purchase And Sale Agreement [Member]
Line Of Credit Facility [Line Items]
Equity Method Investment Ownership Percentage	100.00%
Proceeds from sale of Carpets, net of transaction costs	$ 500
Carpets [Member] | Purchase And Sale Agreement [Member] | Chief Executive Officer One [Member]
Line Of Credit Facility [Line Items]
Percentage Of Membership Interests Sold	100.00%

Recent Accounting Standards - A

Recent Accounting Standards - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Oct. 01, 2020
Operating lease right-of-use assets	$ 30,736
Operating lease liabilities	$ 39,467
ASC 842 [Member]
Operating lease right-of-use assets		$ 33,400
Operating lease liabilities		37,400
Current installments		5,200
Operating lease obligations		$ 42,600

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation Of Revenue [Line Items]
Net revenue	$ 103,460	$ 86,077	$ 329,185	$ 252,246
Publisher in Phoenix [Member] | Master Service Agreement [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	24,588	20,337	67,555	52,336
Publisher in Phoenix [Member] | Non-MSA [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	3,652	1,200	11,522	11,982
Commercial in Phoenix [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	30,706	24,554	86,038	73,331
Commercial in Phoenix [Member] | Master Service Agreement [Member]
Disaggregation Of Revenue [Line Items]
Healthcare		239	93	1,424
Commercial in Phoenix [Member] | Non-MSA [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	2,466	2,778	6,868	7,589
Faneuil [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	72,754	61,523	243,147	178,915
Faneuil [Member] | Health Care [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	31,318	22,119	108,020	71,474
Faneuil [Member] | Transportion [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	22,614	14,926	64,324	50,422
Faneuil [Member] | Utility [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	13,709	13,509	40,529	40,926
Faneuil [Member] | Government [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	4,148	9,166	26,698	10,796
Faneuil [Member] | Other [Member]
Disaggregation Of Revenue [Line Items]
Healthcare	$ 965	$ 1,803	$ 3,576	$ 5,297

Revenue Recognition - Summary o

Revenue Recognition - Summary of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands		Jun. 30, 2021	Sep. 30, 2020
Contract assets:
Unbilled revenue	[1]	$ 885	$ 527
Total contract assets		885	527
Contract liabilities:
Deferred revenue		6,054	10,875
Accrued rebates and material rights	[2]	2,865	3,097
Total contract liabilities		$ 8,919	$ 13,972
[1]	Included in prepaid expenses and other current assets. Unbilled revenue represents rights to consideration for services provided when the right is conditioned on something other than passage of time (for example, meeting a milestone for the right to bill under the cost-to-cost measure of progress). Unbilled revenue is transferred to accounts receivable when the rights become unconditional.
[2]	Included in accrued expenses.

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Change in Contract Assets and Contract Liabilities (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2021USD ($)
Revenue Recognition And Deferred Revenue [Abstract]
Beginning balance	$ 527
Additions to contract assets	1,806
Transfer from contract assets to accounts receivable	(1,448)
Ending balance	885
Beginning balance	13,972
Revenue recognized	(13,773)
Accrued rebates	3,747
Payment of rebates	(3,979)
Cash received from customer	8,952
Ending balance	$ 8,919

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2021	Jun. 29, 2021	Jun. 30, 2020
Capitalized costs	$ 100
Capitalized Contract Cost, Amortization	400
Amortization of deferred loan costs	527	$ 527	$ 787
Capitalized costs	6,000
Transitions activities	3,500
Impairment Loss	0		$ 0
Selling, General and Administrative Expense [Member]
Amortization of deferred loan costs	300
Prepaid Expenses [Member]
Amortization of deferred loan costs	200
Transitions activities	2,900
Other Assets [Member]
Amortization of deferred loan costs	100
Transitions activities	600
Transition Activities [Member]
Transitions activities	$ 7,600

Acquisitions and Devestitures -

Acquisitions and Devestitures - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 31, 2019		Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Sep. 30, 2020
Business Acquisition [Line Items]
Fair value of deferred and contingent consideration			$ 2,400			$ 2,400			$ 2,500
Increase to deferred and contingent consideration liabilities			1,100	$ 900		1,100	$ 900
Acquisition related expenses							$ 99
RDI Acquistion [Member]
Business Acquisition [Line Items]
Cash consideration for RDI acquisition	$ 2,500
Contingent earn out consideration	$ 7,500
Contingent earn-out consideration payment period	3 years
Contingent guaranteed payout consideration	$ 2,500
Earn out payment					$ 2,500
Fair value of deferred and contingent consideration	$ 4,900	[1]	4,600			4,600
RDI Acquistion [Member] | Selling, General and Administrative Expense [Member]
Business Acquisition [Line Items]
Increase to deferred and contingent consideration liabilities			1,100	$ 900
Acquisition related expenses						100
RDI Acquistion [Member] | Maximum [Member]
Business Acquisition [Line Items]
Fair value of deferred and contingent consideration			5,000			5,000		$ 7,500
RDI Acquistion [Member] | Accrued Expenses [Member]
Business Acquisition [Line Items]
Fair value of deferred and contingent consideration			2,400			2,400
RDI Acquistion [Member] | Other Non Current Liabilities [Member]
Business Acquisition [Line Items]
Fair value of deferred and contingent consideration			$ 2,200			$ 2,200
[1]	On June 30, 2021, the remaining maximum payment was $5.0 million. On June 30, 2021, the fair value of deferred and contingent consideration was $4.6 million, of which $2.4 million was included in accrued expenses and $2.2 million was included in other non-current liabilities on the Condensed Consolidated Balance Sheet. The original maximum payment was $7.5 million.

Acquisitions and Devestitures_2

Acquisitions and Devestitures - Summary of Final Fair Values of Assets Acquired and Liabilities Assumed on Business Purchase Date and Purchase Price Details (Detail) - USD ($) $ in Thousands		Jul. 31, 2019		Jun. 30, 2021	Sep. 30, 2020
Identified intangible assets:
Fair value of deferred and contingent consideration (2)				$ (2,400)	$ (2,500)
RDI Acquistion [Member]
Balance Sheet Caption
Total current assets		$ 53
Fixed assets		11
Identified intangible assets:
Goodwill (1)	[1]	2,675
Total assets		7,439
Accrued expenses		(39)
Fair value of deferred and contingent consideration (2)		(4,900)	[2]	$ (4,600)
Cash paid at closing		2,500
RDI Acquistion [Member] | Technology [Member]
Identified intangible assets:
Technology		3,400
RDI Acquistion [Member] | Non-compete Agreements [Member]
Identified intangible assets:
Technology		$ 1,300
[1]	Goodwill was fully impaired and written off in March 2020.
[2]	On June 30, 2021, the remaining maximum payment was $5.0 million. On June 30, 2021, the fair value of deferred and contingent consideration was $4.6 million, of which $2.4 million was included in accrued expenses and $2.2 million was included in other non-current liabilities on the Condensed Consolidated Balance Sheet. The original maximum payment was $7.5 million.

Acquisitions and Devestitures_3

Acquisitions and Devestitures - Summary of Reconized Loss on Sale of Carpets (Detail) $ in Thousands	9 Months Ended
	Jun. 30, 2021USD ($)
Acquisitions And Divestitures [Abstract]
Proceeds from sale of Carpets, net of transaction costs	$ 500
Net assets sold	(1,199)
Transaction costs	(62)
Total loss on sale	$ (761)

Acquisitions and Devestitures_4

Acquisitions and Devestitures - Summary of Carrying Value of Net Assets Sold (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Acquisitions And Divestitures [Abstract]
Current assets of discontinued operations	$ 4,615	$ 4,828
Intangible assets, net	318
Other long-term assets	740	51
Current liabilities	(4,099)	(3,351)
Long-term liabilities	(375)	$ (606)
Net assets sold	$ 1,199

Acquisitions and Devestitures_5

Acquisitions and Devestitures - Summary of Casses of Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Assets:
Accounts receivable		$ 2,874
Inventories, net		1,221
Prepaid expenses and other current assets		733
Property and equipment, net		598
Intangible assets, net		335
Other long-term assets	$ 740	51
Total assets of discontinued operations		5,812
Liabilities:
Accounts payable		1,946
Accrued expenses		1,172
Other current liabilities		233
Long-term liabilities of discontinued operations	$ 375	606
Total liabilities of discontinued operations		$ 3,957

Acquisitions and Devestitures_6

Acquisitions and Devestitures - Summary of Components of Loss from Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Acquisitions And Divestitures [Abstract]
Net revenue	$ 9,277	$ 13,799	$ 29,599
Operating income (loss)	(461)	(302)	(3,323)
Total loss on sale		(761)
Loss before income taxes	(461)	(1,063)	(3,324)
Loss from discontinued operations	$ (461)	$ (1,063)	$ (3,324)

Acquisitions and Devestitures_7

Acquisitions and Devestitures - Summary of Components of Cash Flows of Discontinued Operations (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities
Impairment of goodwill		$ 2,555
Depreciation and amortization expense	$ 199	421
Provision for bad debt and obsolete inventory	27	41
Gain on disposal of assets, net		6
Changes in operating assets and liabilities:
Accounts receivable, net	399	816
Inventories, net	(12)	88
Prepaid expenses, collateral deposits, and other current assets	24	(300)
Other assets and liabilities, net	26	236
Capital expenditures	$ (7)	$ (25)

Concentration Risks - Additiona

Concentration Risks - Additional Information (Detail) $ in Millions	9 Months Ended
	Jun. 30, 2021USD ($)CustomerSupplier
Faneuil [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 6.6
Phoenix [Member]
Concentration Risk [Line Items]
Accounts receivable	$ 3.7
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Number of customers that represent more than 10% of consolidated net revenue | Customer	0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Minimum [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Number of suppliers representing more than 10% of consolidated inventory purchases | Supplier	1
Supplier Concentration Risk [Member] | Inventory Purchases [Member] | Minimum [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Supplier Concentration Risk [Member] | Inventory Purchases [Member] | Maximum [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Concentration Risks - Major Cus

Concentration Risks - Major Customers and Accounts Receivable - Schedule of Concentration Percentage of Different Customers (Detail) - Sales Revenue, Segment [Member] - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Customer A [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			11.80%	11.40%
Customer A [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	25.50%	21.50%	23.30%	24.90%
Customer B [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage				10.10%
Customer B [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	24.90%	24.20%	23.00%	19.10%
Customer C [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%	10.80%	12.20%	11.50%

Concentration Risks - Major C_2

Concentration Risks - Major Customers and Accounts Receivable - Schedule of Concentration Percentage of Different Customers (Parenthetical) (Detail)	9 Months Ended
	Jun. 30, 2021
Maximum [Member] | Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Faneuil [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Concentration Risks - Supplier

Concentration Risks - Supplier Risk - Schedule of Concentration Percentage of Different Customers (Detail) - Supplier Concentration Risk [Member] - Inventory Purchases [Member] - Phoenix [Member]	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Supplier A [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	15.70%	17.60%	19.20%	15.50%
Supplier B [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	11.40%	17.40%	12.00%	17.70%
Supplier C [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%	10.00%

Concentration Risks - Supplie_2

Concentration Risks - Supplier Risk - Schedule of Concentration Percentage of Different Customers (Parenthetical) (Detail) - Inventory Purchases [Member] - Supplier Concentration Risk [Member]	9 Months Ended
	Jun. 30, 2021
Maximum [Member] | Phoenix [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Minimum [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Composition of Certain Financ_3

Composition of Certain Financial Statement Captions - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Accounts Receivable Net Current [Abstract]
Accounts receivable	$ 52,364	$ 57,478
Unbilled receivables	391	42
Accounts receivable	52,755	57,520
Less: allowance for doubtful accounts	(154)	(1,033)
Accounts receivable, net	$ 52,601	$ 56,487

Composition of Certain Financ_4

Composition of Certain Financial Statement Captions - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 4,794	$ 4,260
Semi-finished goods/work in process	1,755	1,923
Finished goods	83	96
Inventories	6,632	6,279
Less: allowance for obsolete inventory	(32)	(47)
Inventories, net	$ 6,600	$ 6,232

Composition of Certain Financ_5

Composition of Certain Financial Statement Captions - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 144,317	$ 135,007
Less: accumulated depreciation and amortization	(77,081)	(67,222)
Property and equipment, net	67,236	67,785
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	39,057	33,783
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,849	30,843
Computer and Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	22,610	19,630
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,874	16,896
Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	16,533	16,483
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,267	9,267
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	7,749	7,749
Construction and Equipment In Process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,018
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 360	$ 356

Composition of Certain Financ_6

Composition of Certain Financial Statement Captions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Condensed Financial Statements, Captions [Line Items]
Depreciation and amortization expense including capital leased assets	$ 3,700,000	$ 3,500,000	$ 11,100,000	$ 10,700,000
Intangible asset amortization expense	1,300,000	$ 1,300,000	3,900,000	$ 3,900,000
Faneuil [Member] | Workers' Compensation Claims [Member] | Maximum [Member]
Condensed Financial Statements, Captions [Line Items]
Self-insured amount	$ 500,000		$ 500,000

Composition of Certain Financ_7

Composition of Certain Financial Statement Captions - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Gross	$ 58,470	$ 58,470
Accumulated Amortization	(26,754)	(22,918)
Net	$ 31,716	$ 35,552
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Life (Years)	12 years	12 years
Weighted Average Remaining Life (Years)	5 years 8 months 12 days	6 years 4 months 24 days
Gross	$ 33,590	$ 33,590
Accumulated Amortization	(17,921)	(15,818)
Net	$ 15,669	$ 17,772
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Life (Years)	27 years 7 months 6 days	27 years 7 months 6 days
Weighted Average Remaining Life (Years)	22 years 4 months 24 days	23 years
Gross	$ 10,240	$ 10,240
Accumulated Amortization	(2,505)	(2,209)
Net	$ 7,735	$ 8,031
Supply Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Life (Years)	10 years 2 months 12 days	10 years 2 months 12 days
Weighted Average Remaining Life (Years)	9 years 1 month 6 days	9 years 1 month 6 days
Gross	$ 9,690	$ 9,690
Accumulated Amortization	(4,996)	(4,059)
Net	$ 4,694	$ 5,631
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Life (Years)	8 years	8 years
Weighted Average Remaining Life (Years)	6 years 1 month 6 days	6 years 9 months 18 days
Gross	$ 3,400	$ 3,400
Accumulated Amortization	(815)	(496)
Net	$ 2,585	$ 2,904
Non-compete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Original Life (Years)	6 years 7 months 6 days	6 years 7 months 6 days
Weighted Average Remaining Life (Years)	4 years 3 months 18 days	5 years 1 month 6 days
Gross	$ 1,550	$ 1,550
Accumulated Amortization	(517)	(336)
Net	$ 1,033	$ 1,214

Composition of Certain Financ_8

Composition of Certain Financial Statement Captions - Summary of Expected Future Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
Fiscal 2021 (remaining)	$ 1,105
Fiscal 2022	4,596
Fiscal 2023	4,596
Fiscal 2024	4,457
Fiscal 2025	4,144
Thereafter	12,818
Net	$ 31,716	$ 35,552

Composition of Certain Financ_9

Composition of Certain Financial Statement Captions - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Accrued Liabilities Current [Abstract]
Accrued compensation and related taxes	$ 12,290	$ 9,660
Rebates payable	2,865	3,097
Acquisition contingent consideration	2,400	2,500
Legal	1,600
Other	1,410	352
Medical and benefit-related payables	1,233	1,438
Accrued board of director fees	522	130
Interest payable	136	674
Deferred lease incentives		1,289
Total accrued expenses	$ 22,456	$ 19,140

Loss Per Share - Summary of Bas

Loss Per Share - Summary of Basic and Diluted Income (Loss) Earnings Per Share of Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share Diluted [Line Items]
Net loss from continuing operations		$ (3,504)	$ (2,198)	$ (4,643)	$ (65,410)
Net loss from discontinued operations, net of income taxes			(461)	(1,063)	(3,324)
Net loss		$ (3,504)	$ (2,659)	$ (5,706)	$ (68,734)
Loss per share of common stock–basic and diluted:
Continuing operations		$ 0.08	$ 0.05	$ 0.11	$ (1.55)
Discontinued operations			0.01	0.03	0.08
Loss per share (1)	[1]	$ 0.08	$ 0.06	$ 0.13	$ (1.63)
Weighted average shares of common stock outstanding– basic and diluted		42,321,000	42,173,000	42,320,000	42,173,000
Anti-dilutive shares excluded from loss per share calculation:
Anti-dilutive shares excluded from diluted net income (loss) per share		15,421,000	15,198,000	15,421,000	15,198,000
Warrant [Member]
Anti-dilutive shares excluded from loss per share calculation:
Anti-dilutive shares excluded from diluted net income (loss) per share		2,908,000	2,908,000	2,908,000	2,908,000
Employee Stock Option [Member]
Anti-dilutive shares excluded from loss per share calculation:
Anti-dilutive shares excluded from diluted net income (loss) per share		1,355,000	1,804,000	1,355,000	1,804,000
Convertible Debt [Member]
Anti-dilutive shares excluded from loss per share calculation:
Anti-dilutive shares excluded from diluted net income (loss) per share		11,158,000	10,486,000	11,158,000	10,486,000
[1]	Amounts may not add due to rounding.

Debt - Summary of Line of Credi

Debt - Summary of Line of Credit, Term Loan and Equipment Financing (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Line of credit:
Less: deferred loan costs		$ (664)
Line of credit, net of deferred loan costs		13,753
Less: deferred loan costs		664
Line of credit, net of deferred loan costs		13,753
Current portion of term loans:
Current portion of equipment financing		1,999
Less: deferred loan costs	$ (1,125)	(372)
Current portion of term loans, net of deferred loan costs	2,675	$ 9,827
Line of credit interest rate		2.66%
Less: deferred loan costs	1,125	$ 372
Term loans, net of deferred loan costs - current installments	2,675	9,827
Term loans, less current portion:
Equipment financing, less current portion		1,611
Less: deferred loan costs	(3,039)	(662)
Term loans, less current portion, net of deferred loan costs	94,187	73,482
Total line of credit and term loans	96,862	$ 97,062
Line of credit interest rate		2.66
Less: deferred loan costs	3,039	$ 662
Term loans, less current portion, net of deferred loan costs	$ 94,187	73,482
Amended PNC Revolver [Member]
Line of credit:
Line of credit interest rate	5.25%
Amended PNC Revolver LIBOR [Member]
Line of credit:
Line of credit interest rate	4.00%
Cerberus/PNC Revolver [Member]
Line of credit:
Line of credit		$ 4,417
Line of credit interest rate		13.25%
Cerberus/PNC Revolver LIBOR [Member]
Line of credit:
Line of credit		$ 10,000
Line of credit interest rate		11.00%
Blue Torch Term Loan [Member]
Current portion of term loans:
Current portion of term loan	$ 3,800
Line of credit interest rate	8.50%
Term loans, less current portion:
Term Loan, less current portion	$ 91,200
Line of credit interest rate	8.50
Cerberus [Member]
Current portion of term loans:
Current portion of term loan		$ 8,200
Line of credit interest rate		8.25%
Term loans, less current portion:
Term Loan, less current portion		$ 62,336
Line of credit interest rate		8.25
Term Loan B [Member]
Term loans, less current portion:
Term Loan, less current portion		$ 4,415
Line of credit interest rate		12.25
Term Loan C [Member]
Term loans, less current portion:
Term Loan, less current portion		$ 5,782
Line of credit interest rate		8.25
Convertible Notes Payable
Term loans, less current portion:
Convertible Promissory Notes	$ 6,026
Line of credit interest rate	8.25

Debt - Summary of Debt Instrume

Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2021	Jun. 29, 2021	Jun. 30, 2020
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			$ 97,062	$ 97,062
Payments, net				(11,460)
Interest expense and other bank fees accreted to term loans			1,691	1,566	$ 544
New equipment financing				3,750
Amortization of deferred loan costs			527	527	$ 787
Balance, June 29, 2021 prior to debt transactions	$ 96,862	$ 96,862	96,862	91,445
Existing debt payoff and other fees	(86,703)
New debt	90,836
Loss on debt extinguishment	1,284	(2,072)	(2,072)
Line of Credit [Member]
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			14,417	14,417
Payments, net				(5,943)
Interest expense and other bank fees accreted to term loans				258
Balance, June 29, 2021 prior to debt transactions				8,732
Existing debt payoff and other fees	(8,732)
Blue Torch Term Loan [Member]
Line Of Credit Facility [Line Items]
Balance, June 29, 2021 prior to debt transactions	95,000	95,000	95,000
New debt	95,000
Convertible Notes Payable
Line Of Credit Facility [Line Items]
Balance, June 29, 2021 prior to debt transactions	6,026	6,026	6,026
Transfer of debt	6,026
Cerberus Term Loan [Member]
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			70,536	70,536
Payments, net				(4,100)
Interest expense and other bank fees accreted to term loans				642
Balance, June 29, 2021 prior to debt transactions				67,078
Existing debt payoff and other fees	(67,078)
Term B Loan [Member]
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			4,415	4,415
Interest expense and other bank fees accreted to term loans				422
Balance, June 29, 2021 prior to debt transactions				4,837
Existing debt payoff and other fees	(4,837)
Term C Loan [Member]
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			5,782	5,782
Interest expense and other bank fees accreted to term loans				244
Balance, June 29, 2021 prior to debt transactions				6,026
Transfer of debt	(6,026)
Equipment Financing Member
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			3,610	3,610
Payments, net				(1,417)
New equipment financing				3,750
Balance, June 29, 2021 prior to debt transactions				5,943
Existing debt payoff and other fees	(6,056)
Loss on debt extinguishment	113
Deferred Loan Costs Member
Line Of Credit Facility [Line Items]
Balance, September 30, 2020			(1,698)	(1,698)
Amortization of deferred loan costs				527
Balance, June 29, 2021 prior to debt transactions	(4,164)	$ (4,164)	$ (4,164)	$ (1,171)
New debt	(4,164)
Loss on debt extinguishment	$ 1,171

Debt - Additional Information (

Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands

May 12, 2020USD ($)$ / shares

Apr. 01, 2020USD ($)

Jun. 29, 2021USD ($)

Mar. 31, 2021USD ($)

Jun. 30, 2020USD ($)

May 31, 2020

Feb. 29, 2020

Dec. 31, 2019USD ($)$ / sharesshares

Nov. 30, 2019USD ($)

Aug. 31, 2015USD ($)

Jun. 30, 2021USD ($)$ / shares

Mar. 31, 2021

Dec. 31, 2020USD ($)

Jun. 30, 2020USD ($)

Mar. 31, 2020USD ($)TradingDay

Dec. 31, 2019USD ($)TradingDay$ / sharesshares

Jun. 30, 2021USD ($)$ / shares

Jun. 30, 2020USD ($)

Sep. 30, 2021USD ($)

Jun. 17, 2020$ / shares

Mar. 26, 2020USD ($)$ / sharesshares

Mar. 16, 2020USD ($)

Feb. 14, 2020USD ($)

Debt Instrument [Line Items]

Selling, general, and administrative expense

$ 19,607

$ 18,102

$ 54,461

$ 48,804

Number of vested warrants issued, price per share | $ / shares

$ 3.56

$ 3.56

Expected term

6 years 2 months 12 days

Expected volatility rate

47.80%

Dividend rate

0.00%

Risk-free interest rate

0.34%

Fair value of warrants issued in connection with term loan modification

716

Additional interest earned

4.00%

Payments to acquire equipment

$ 6,632

$ 5,200

Equipment Financing [Member] | Phoenix [Member] | Heidelberg Press [Member]

Debt Instrument [Line Items]

Payments to acquire equipment

$ 4,500

$ 2,600

Equipment acquired through Issuance of debt security

3,500

1,800

Payments to acquire equipment

900

500

Trade in allowance received

$ 100

$ 300

Agreement term

60 months

36 months

Frequency of periodic payment

monthly

monthly

Interest rate fixed percentage

4.50%

2.66%

4.50%

2.66%

2.66%

Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Unused borrowing capacity

$ 29,200

29,200

Line of credit facility maximum borrowing capacity

$ 32,500

Backstop Letter Agreement [Member]

Debt Instrument [Line Items]

Percentage Of Interest Payable In Kind

100.00%

London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

1.50%

London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

1.00%

Prime Rate [Member] | Maximum [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

4.75%

Prime Rate [Member] | Minimum [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

3.25%

Convertible Notes Payable

Debt Instrument [Line Items]

Debt instrument face amount

$ 6,000

Term Loan B [Member]

Debt Instrument [Line Items]

Percentage Of Interest Payable In Kind

100.00%

Percentage of interest earned in kind

100.00%

Blue Torch Term Loan [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Debt instrument face amount

$ 95,000

Debt instrument, annual principle payment

3,800

$ 3,800

Debt instrument maturity date

Jun. 29, 2025

Prepayment penalty. year one

3.00%

Prepayment penalty, year two

2.00%

Prepayment penalty, year three

1.00%

Blue Torch Term Loan [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

1.75%

Debt instrument variable interest rate

6.75%

Amended PNC Revolver [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

2.75%

Prepayment penalty. year one

1.00%

Prepayment penalty, year two

0.50%

Prepayment penalty, year three

0.25%

Outstanding Commitment

$ 32,500

Unused borrowing capacity

29,200

29,200

Amended PNC Revolver [Member] | Letter of Credit [Member]

Debt Instrument [Line Items]

Debt instrument face amount

32,500

$ 32,500

Debt instrument maturity date

Jun. 29, 2025

Amended PNC Revolver [Member] | Letter of Credit [Member] | Maximum [Member]

Debt Instrument [Line Items]

Letters of credit, sublimit amount

$ 15,000

$ 15,000

Amended PNC Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

1.00%

Amended PNC Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

3.00%

Amended PNC Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

1.00%

Amended PNC Revolver [Member] | Federal Funds Open Rate [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

0.50%

Amended PNC Revolver [Member] | PNC Rate [Member] | Maximum [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

3.00%

Amended PNC Revolver [Member] | PNC Rate [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt instrument variable interest rate

2.00%

Blue Torch Term Loan and Amended PNC Revolver [Member]

Debt Instrument [Line Items]

Debt instrument maturity date

Nov. 28, 2023

Debt instrument accrued interest rate

8.25%

8.25%

Blue Torch Term Loan and Amended PNC Revolver [Member] | Common Stock [Member]

Debt Instrument [Line Items]

Debt instrument conversion rate | $ / shares

$ 0.54

$ 0.54

Cerberus Term Loan [Member]

Debt Instrument [Line Items]

Selling, general, and administrative expense

$ 2,500

Cerberus Term Loan [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Debt instrument face amount

$ 105,000

Annual principal payments as percentage of excess cash flow

75.00%

Excess cash flow payment

$ 0

$ 0

Mandatory payment

$ 900

$ 0

Cerberus/PNC Revolver [Member] | Revolving Credit Facility [Member]

Debt Instrument [Line Items]

Line of credit facility maximum borrowing capacity

$ 32,500

$ 30,000

$ 25,000

$ 32,500

Cerberus/PNC Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

275.00%

Cerberus/PNC Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

950.00%

Cerberus/PNC Revolver [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

675.00%

Cerberus/PNC Revolver [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Debt instrument maturity date

Nov. 28, 2023

Sixth Amendment [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument, covenant description

• Converted $4.1 million in aggregate principal amount from the Cerberus Term Loan to a new term loan (referred to hereafter as “Term B Loan”) as discussed in more detail below;     • Adjusted the leverage ratio;     • Decreased the fixed charge coverage ratio; and     • Increased the interest rate floor for LIBOR rate loans from 1.0% to 1.50% per year and for Prime rate loans from 3.25% to 4.75% per year.   Additionally, the Sixth Amendment added a deleveraging fee (“Deleveraging Fee”), of which the first payment was made on March 31, 2020, and the second payment was due on June 30, 2020 unless one or more persons purchased a $2.5 million participating interest in the Cerberus Term Loan prior to June 30, 2020.  The first payment was expensed to selling, general, and administrative expense.  As a result of the Ninth Amendment (see Ninth Amendment to the Cerberus/PNC Financing Agreement below), the second payment was not required by Cerberus.

Junior Participation Agreement [Member]

Debt Instrument [Line Items]

Debt instrument, payment terms

The $5.6 million Term C Loan was junior and subordinate to the Cerberus/PNC Debt in all respects and had no quarterly payments.

Debt instrument, interest rate terms

From May 2020 through the Cerberus/PNC Debt Maturity Date, the Term C Loan accrued interest in kind at the same rate per year as the Cerberus Term Loan.  Although the Term C Loan was paid off as part of the Cerberus Payoff, the Term C Loan Junior Participants were issued the Convertible Promissory Notes as discussed above, under substantially identical terms as the Term C Loan, except the Convertible Promissory Notes pay interest quarterly and the Term C Loan paid interest at maturity.

Junior Participation Agreement [Member] | Term Loan B [Member]

Debt Instrument [Line Items]

Debt instrument face amount

$ 4,100

$ 2,500

4,100

2,500

Junior Participation Agreement [Member] | Term Loan B [Member] | Forecast

Debt Instrument [Line Items]

Debt instrument face amount

$ 2,500

Junior Participation Agreement [Member] | Term Loan B And Warrants [Member]

Debt Instrument [Line Items]

Debt instrument face amount

$ 4,100

$ 4,100

Debt instrument interest rate

4.00%

Debt Instrument, Description

(i) in cash, accrued at the same rate per year as the Cerberus Term Loan and paid monthly, and (ii) in kind, accrued at 4.00% per year, payable on the Cerberus/PNC Debt Maturity Date.

Number of vested warrants issued, shares | shares

1,230,000

1,230,000

Warrants expiration period

5 years

Debt instrument, convertible threshold trading days | TradingDay

30

Number of vested warrants issued, price per share | $ / shares

$ 1.20

$ 1.20

$ 0.54

Junior Participation Agreement [Member] | Term Loan C [Member]

Debt Instrument [Line Items]

Debt instrument face amount

$ 5,600

Debt instrument conversion rate | $ / shares

$ 0.54

Description of convertible debt instrument

The $5.6 million Term C Loan and related accrued interest was convertible, at the option of the Term C Loan Junior Participants, into shares of the Company’s common stock, at a conversion price of $0.54 per share.

Seventh Amendment [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument, covenant description

• Extended the seasonal increase period, originally through February 14, 2020, to March 15, 2020, during which the available borrowing limit under the Cerberus/PNC Revolver was $32.5 million; and     • Increased the available borrowing limit under the Cerberus/PNC Revolver from $25.0 million to $30.0 million for the period from March 16, 2020 to March 31, 2020.

Eighth Amendment [Member] | Cerberus/PNC Financing Agreement [Member]

Debt Instrument [Line Items]

Debt instrument, covenant description

• Removed the seasonal decreases in the available borrowing limit under the Cerberus/PNC Revolver such that the amount available to borrow thereunder remains $32.5 million through the Cerberus/PNC Debt Maturity Date;     • Adjusted certain quarterly principal payment obligations;     • Adjusted payment terms on the interest payable on the Term B Loan, from a mixture of cash and payable in kind to 100% payable in kind, until the Term A Loan is paid in full; and     • Added a monthly fee of $0.1 million, from the period April 1, 2020 through the Cerberus/PNC Debt Maturity Date, which amounts were added to the Cerberus Term Loan, accrued interest at the Cerberus Term Loan rate, and was paid as part of the Cerberus Payoff.

Monthly fees related to credit facility

$ 100

Prime Rate [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

275.00%

Prime Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

850.00%

Prime Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]

Debt Instrument [Line Items]

Debt instrument interest rate

575.00%

First Amendment To Junior Participation Agreement [Member]

Debt Instrument [Line Items]

Expected term

5 years

5 years

Expected volatility rate

43.80%

42.30%

Dividend rate

0.00%

0.00%

Risk-free interest rate

0.50%

1.70%

Fair value of warrants issued in connection with term loan modification

$ 100

$ 600

First Amendment To Junior Participation Agreement [Member] | Term Loan B And Warrants [Member]

Debt Instrument [Line Items]

Number of vested warrants issued, shares | shares

400,000

Warrants expiration period

5 years

Debt instrument, convertible threshold trading days | TradingDay

10

Number of vested warrants issued, price per share | $ / shares

$ 0.72

Cerberus/PNC Debt [Member] | Term Loan [Member]

Debt Instrument [Line Items]

Selling, general, and administrative expense

100

300

Payment of debt instrument legal and other fees

$ 0

200

$ 0

900

Deferred loan costs

$ 100

$ 600

Debt - Summary of Loss on Debt

Debt - Summary of Loss on Debt Extinguishment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2021
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Total loss on debt extinguishment	$ (1,284)	$ 2,072	$ 2,072
Cerberus/PNC Financing Agreement [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred loan costs from Cerberus/PNC Financing Agreement		1,171
Prepayment penalties from Cerberus/PNC Financing Agreement		716
Equipment Financing Agreements, Capital Leases and Other [Member]
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Prepayment penalties from Cerberus/PNC Financing Agreement		$ 185

Debt - Schedule of Estimated Fu

Debt - Schedule of Estimated Future Minimum Principal Payments (Detail) $ in Thousands	Jun. 30, 2021USD ($)
Debt Instrument [Line Items]
2022	$ 3,800
2023	3,800
2024	9,826
2025*	83,600	[1]
Total estimated future minimum payments	101,026
Convertible Notes Payable
Debt Instrument [Line Items]
2024	6,026
Total estimated future minimum payments	6,026
Blue Torch Term Loan [Member]
Debt Instrument [Line Items]
2022	3,800
2023	3,800
2024	3,800
2025*	83,600	[1]
Total estimated future minimum payments	$ 95,000
[1]	The majority of this amount is the final balloon payment due on June 29, 2025.

Debt - Schedule of Estimated _2

Debt - Schedule of Estimated Future Minimum Principal Payments (Parenthetical) (Detail)	Jun. 30, 2021
Blue Torch Term Loan [Member]
Debt Instrument [Line Items]
Long term debt, maturity date	Jun. 29, 2025

Debt - Summary of Financing Agr

Debt - Summary of Financing Agreement and Amendments (Detail)	9 Months Ended
	Jun. 30, 2021
Term Loan [Member] | Financing Agreement [Member] | Phoenix Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2015-08
Term Loan [Member] | First Amendment [Member] | Color Optics Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2016-07
Term Loan [Member] | Third Amendment [Member] | Printing Components Business Acquisition [Member]
Debt Instrument [Line Items]
Origination Date	2017-10
Term Loan [Member] | Fourth Amendment [Member]
Debt Instrument [Line Items]
Origination Date	2018-11
Term Loan [Member] | Sixth Amendment [Member]
Debt Instrument [Line Items]
Origination Date	2019-12
Term Loan [Member] | Eighth Amendment [Member]
Debt Instrument [Line Items]
Origination Date	2020-03
Term Loan [Member] | Ninth Amendment [Member]
Debt Instrument [Line Items]
Origination Date	2020-05
Line of Credit [Member] | Cerberus/PNC Revolver [Member]
Debt Instrument [Line Items]
Use of Proceeds	Working capital
Origination Date	2015-08

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($)	May 15, 2018	Oct. 14, 2016	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020	Sep. 22, 2016
Loss Contingencies [Line Items]
Non-cash litigation loss					$ (1,256,000)
Interest from legal settlement					200,000
Selling, General and Administrative Expense [Member]
Loss Contingencies [Line Items]
Non-cash litigation loss	$ (2,900,000)
Reduction in selling, general, and administrative expense					(1,300,000)
Faneuil [Member]
Loss Contingencies [Line Items]
Recovery value on subcontract						$ 5,100,000
Recovery of subcontract description basis				breach of contract, breach of the implied covenant of good faith and fair dealing, and unjust enrichment.
Litigation settlement, amount of damages awarded	0				$ 1,200,000
Litigation settlement, payment amount			$ 1,500,000
3M Company [Member]
Loss Contingencies [Line Items]
Recovery value on subcontract		$ 10,000,000
Recovery of subcontract description basis				breach of contract/indemnification, breach of the implied covenant of good faith and fair dealing, and unjust enrichment.
Damages payable		3,200,000
Additional damages incurred		$ 10,000,000
Litigation settlement, amount of damages awarded	$ 0
Letter of Credit [Member]
Loss Contingencies [Line Items]
Line of credit amount outstanding				$ 3,300,000
Surety Bonds [Member]
Loss Contingencies [Line Items]
Estimated maximum guarantee cash payments				41,500,000
Employment Agreements [Member]
Loss Contingencies [Line Items]
Total contingent termination payments related to base salary				$ 1,100,000

Leases - Additional Information

Leases - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Percentage of operating leases for facilities	95.00%

Leases - Summary of Location of

Leases - Summary of Location of ROU Assets and Liabilities in Consolidated Balance Sheet and Weighted Average Lease Term and Discount Rate (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Finance Leases:
Property and equipment, at cost	$ 1,575
Less accumulated amortization	(392)
Property and equipment, net	1,183
Finance lease obligations - current installments	810	$ 2,437
Finance lease obligations, less current installments	540	$ 2,900
Total finance lease liabilities	1,350
Operating Leases:
Operating lease right-of-use assets	30,736
Operating lease obligations - current installments	5,035
Operating lease obligations, less current installments	34,432
Total operating lease obligations	$ 39,467
Weighted average remaining lease term (years):
Weighted average remaining lease term of finance leases	1 year 8 months 12 days
Weighted average remaining lease term of operating leases	7 years
Weighted average discount rate:
Weighted average discount rate of finance leases	0.00%
Weighted average discount rate of operating leases	10.60%

Leases - Summary of Components

Leases - Summary of Components of Lease Cost (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Finance Leases:
Total finance lease cost	$ 378	$ 1,201
Operating Leases:
Operating lease cost	2,273	6,911
Total lease cost	2,651	8,112
Selling, General and Administrative Expense [Member]
Finance Leases:
Amortization of finance lease assets	189	696
Operating Leases:
Operating lease cost	1,724	5,207
Short-term lease cost	10	28
Cost of Revenue [Member]
Finance Leases:
Amortization of finance lease assets	115	343
Operating Leases:
Operating lease cost	319	957
Interest Expense [Member]
Finance Leases:
Interest on finance lease liabilities	74	162
Net loss from discontinued operations [Member]
Operating Leases:
Variable lease cost	$ 220	$ 719

Leases - Summary of Supplementa

Leases - Summary of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for finance leases	$ 162
Financing cash flows used for finance leases	3,987	$ 2,041
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	576
Continuing Operations [Member]
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$ 3,750

Schedule of Maturity of Lease L

Schedule of Maturity of Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Finance Leases:
2022	$ 810
2023	540
Total lease payments	1,350
Total present value of lease payments	1,350
Current	810	$ 2,437
Non-current	540	$ 2,900
Total finance lease liabilities	1,350
Operating Leases:
2022	8,875
2023	8,136
2024	7,399
2025	7,071
2026	7,012
Thereafter	18,221
Total lease payments	56,714
Less: imputed interest	(17,247)
Total present value of lease payments	39,467
Current	5,035
Non-current	34,432
Total operating lease obligations	$ 39,467

Equity - Additional Information

Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
Class Of Stock [Line Items]
Common stock, shares issued		42,321,000		42,321,000		42,298,000
Weighted-average recognition period of unrecognized compensation cost related to unvested stock options				1 year 6 months
Stock option awards, granted	150,000	0		0
Expected term	6 years 2 months 12 days
Expected volatility rate	47.80%
Dividend rate	0.00%
Risk-free interest rate	0.34%
Stock option awards, forfeitures		110,000	0	360,000	0
Total intrinsic value of options vested outstanding		$ 100		$ 100
Stock-based compensation expense		$ 41	$ 89	$ 126	$ 312
Stock options, outstanding		1,400,000		1,400,000
Number of vested warrants issued, price per share		$ 3.56		$ 3.56
Warrants exercisable to purchase outstanding		2,900,000		2,900,000
Weighted average exercise price, stock warrants		$ 1.11		$ 1.11
Common Stock Awards [Member]
Class Of Stock [Line Items]
Stock-based compensation expense		$ 26	28	$ 79	83
Maximum [Member]
Class Of Stock [Line Items]
Total unrecognized compensation cost related to unvested stock options		100		100
Stock option estimated fair value	$ 100
Maximum [Member] | Common Stock Awards [Member]
Class Of Stock [Line Items]
Stock-based compensation expense		$ 100	$ 100	$ 100	$ 100
Common Stock [Member]
Class Of Stock [Line Items]
Common stock, shares issued		23,256		23,256

Equity - Summary of Total Stock

Equity - Summary of Total Stock-Based Compensation Expense Included in Selling General and Administrative Expenses on Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 41	$ 89	$ 126	$ 312
Employee Stock Option [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	15	61	47	229
Common Stock Awards [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 26	$ 28	$ 79	$ 83

Income Tax - Additional Informa

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Provision For Income Taxes	$ 400	$ 300	$ 700
(Provision for) benefit from income taxes	$ (383)	$ (250)	$ (719)	$ 1,008
Effective income tax			18.30%	2.50%

Reportable Segments and Geogr_3

Reportable Segments and Geographic Information - Additional Information (Detail)	9 Months Ended
	Jun. 30, 2021Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Reportable Segments and Geogr_4

Reportable Segments and Geographic Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net revenue		$ 103,460	$ 86,077	$ 329,185	$ 252,246
Segment adjusted EBITDA - continuing operations		7,751	7,118	23,070	15,212
Impairment of goodwill					(56,492)
Depreciation and amortization		(4,944)	(4,800)	(14,912)	(14,675)
Interest expense, net		(2,623)	(2,568)	(7,656)	(7,976)
Loss on debt extinguishment	$ 1,284	(2,072)		(2,072)
Change in fair value of contingent consideration		(1,100)	(900)	(1,100)	(900)
(Provision for) benefit from income taxes		(383)	(250)	(719)	1,008
Bank fees accreted to term loans		(300)	(300)	(900)	(300)
Stock-based compensation		(41)	(89)	(126)	(312)
Restructuring and cost reduction initiatives		(27)	(649)	(288)	(1,440)
Fair value of warrants issued in connection with loan amendments					(716)
Loan amendment expenses		46	(61)	(131)	(475)
Acquisition-related expense					(99)
Interest from legal settlement					200
Gain on disposal of assets, net		189	301	191	299
Recovery of litigation loss					1,256
Net loss from continuing operations		(3,504)	(2,198)	(4,643)	(65,410)
Net loss from discontinued operations, net of income taxes			(461)	(1,063)	(3,324)
Net loss		(3,504)	(2,659)	(5,706)	(68,734)
Operating Segments [Member] | Faneuil [Member]
Segment Reporting Information [Line Items]
Net revenue		72,754	61,523	243,147	178,915
Segment adjusted EBITDA - continuing operations		3,731	4,263	12,372	7,288
Operating Segments [Member] | Phoenix [Member]
Segment Reporting Information [Line Items]
Net revenue		30,706	24,554	86,038	73,331
Segment adjusted EBITDA - continuing operations		5,476	3,761	14,774	10,779
ALJ [Member]
Segment Reporting Information [Line Items]
Segment adjusted EBITDA - continuing operations		$ (1,456)	$ (906)	$ (4,076)	$ (2,855)