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Supporting Financial Information Supporting Financial Information | 9 Months Ended
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Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts Receivable
|  |  |  |  |  | (in thousands) |
|  |  |  |  | June 30, |  | September 30,
|  |  | Ref |  |  | 2014 |  |  |  | 2013 |
Billed receivables |  |  |  |  |  | $ | 2,692 |  |  |  |  | $ | 2,408 |  |
Unbilled receivables |  |  | (a) |  |  | 9,562 |  |  |  |  | 9,535 |  |
Total accounts receivable |  |  |  |  |  | 12,254 |  |  |  |  | 11,943 |  |
Less: Allowance for doubtful accounts |  |  |  |  |  | — |  |  |  |  | — |  |
Accounts receivable, net |  |  |  |  |  | $ | 12,254 |  |  |  |  | $ | 11,943 |  |
Ref (a): Receivable portion of retroactive billings. Revenues related to these retroactive billings were recognized in fiscal 2008 in accordance with GAAP, as follows: (1) the Company developed and calculated an amount for such prior period services and had a contractual right to bill for such amounts under its arrangements, (2) there were no remaining unfulfilled conditions for approval of such billings and (3) collectibility was reasonably assured based on historical practices with, and contractual requirements of, the DVA. The related direct costs, principally comprised of salaries and benefits, were accrued to match the recognized reimbursements from the Federal agency; upon approval, wages will be processed for payment to the employees. During the year ended September 30, 2008, DLH recognized revenues of $10.8 million revenue related to these non-recurring arrangements. DLH has had ongoing interactions with the customer during third quarter fiscal 2014, and we expect closure on this issue within the next several months. Other Current Assets
|  |  |  |  |  | (in thousands) |
|  |  |  |  | June 30, |  | September 30,
|  |  | Ref |  |  | 2014 |  |  |  | 2013 |
Workers' compensation receivable |  |  | (a) |  |  | $ | 199 |  |  |  |  | $ | 358 |  |
Prepaid insurance expense |  |  |  |  |  | 250 |  |  |  |  | 143 |  |
Other prepaid expenses |  |  |  |  |  | 185 |  |  |  |  | 98 |  |
Total other current assets |  |  |  |  |  | $ | 634 |  |  |  |  | $ | 599 |  |
Ref (a): As part of the Company’s discontinued PEO operations, DLH had a workers’ compensation program with Zurich American Insurance Company (“Zurich”) which covered the period from March 22, 2002 through November 16, 2003, inclusive. DLH estimates that the remaining workers compensation receivable of approximately $0.2 million will be received within the next twelve months. Debt Obligations
|  |  |  |  |  | (in thousands) |
|  |  |  |  | June 30, |  | September 30,
|  |  | Ref |  |  | 2014 |  |  |  | 2013 |
Bank loan payable |  |  |  |  |  | $ | — |  |  |  |  | $ | 951 |  |
Current portion of capital lease obligation |  |  |  |  |  | — |  |  |  |  | 22 |  |
Convertible debenture, net |  |  | (a) |  |  | — |  |  |  |  | 340 |  |
Total debt obligations |  |  |  |  |  | $ | — |  |  |  |  | $ | 1,313 |  |
Ref (a): See Note 12 regarding maturity and closure of the convertible debenture. Accrued Payroll
|  |  |  |  |  | (in thousands) |
|  |  |  |  | June 30, |  | September 30,
|  |  | Ref |  |  | 2014 |  |  |  | 2013 |
Accrued current payroll |  |  |  |  |  | $ | 2,599 |  |  |  |  | $ | 2,461 |  |
Accrued payroll related to unbilled accounts receivable |  |  |  |  | 8,677 |  |  |  |  | 8,677 |  |
Total accrued payroll |  |  |  |  |  | $ | 11,276 |  |  |  |  | $ | 11,138 |  |
Equipment and Improvements, net
|  |  |  |  |  | (in thousands) |
|  |  |  |  | June 30, |  | September 30,
|  |  | Ref |  |  | 2014 |  |  |  | 2013 |
Furniture and equipment |  |  |  |  |  | $ | 139 |  |  |  |  | $ | 139 |  |
Computer equipment |  |  |  |  |  | 126 |  |  |  |  | 126 |  |
Computer software |  |  |  |  |  | 430 |  |  |  |  | 417 |  |
Leasehold improvements |  |  |  |  |  | 24 |  |  |  |  | 24 |  |
|  |  |  |  |  | 719 |  |  |  |  | 706 |  |
Less accumulated depreciation and amortization |  |  |  | (630 | ) |  |  |  | (550 | ) |
Equipment and improvements, net |  |  |  |  |  | $ | 89 |  |  |  |  | $ | 156 |  |
Accounts Payable, Accrued Expenses, and Other Current Liabilities
|  |  |  |  |  | (in thousands) |
|  |  |  |  | June 30, |  | September 30,
| Ref |  |  | 2014 |  |  |  | 2013 |
Accounts payable |  |  |  |  |  | $ | 1,424 |  |  |  |  | $ | 1,396 |  |
Accrued benefits |  |  |  |  |  | 715 |  |  |  |  | 596 |  |
Accrued bonus and incentive compensation |  |  |  |  | 447 |  |  |  |  | 860 |  |
Accrued workers compensation insurance |  |  |  |  |  | 733 |  |  |  |  | 563 |  |
Other accrued expenses |  |  |  |  |  | 366 |  |  |  |  | 534 |  |
Payroll tax accrual |  |  | (a) |  |  | 1,433 |  |  |  |  | 1,394 |  |
Total accrued expenses and other current liabilities |  |  |  |  |  | $ | 5,118 |  |  |  |  | $ | 5,343 |  |
Ref (a): From 2006 through 2009, DLH received notices from the Internal Revenue Service (“IRS”) claiming taxes, interest and penalties due related to payroll taxes. These notices are predominantly related to the former PEO operations which were sold in fiscal 2003. The liability includes estimated accrued penalties and interest totaling approximately $600 thousand. Other Income (Expense)
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | June 30, |  | June 30,
| Ref |  | 2014 |  | 2013 |  | 2014 |  | 2013
Interest income (expense), net |  |  | $ | (24 | ) |  | $ | (38 | ) |  | $ | (75 | ) |  | $ | (131 | )
Amortization of deferred financing costs |  |  | — |  |  | (38 | ) |  | (10 | ) |  | (144 | )
Change in value of financial instruments | (a) |  | — |  |  | 7 |  |  | 99 |  |  | 48 |
Other income (expense), net |  |  | 7 |  |  | (21 | ) |  | 9 |  |  | (16 | )
Total other income (expense), net |  |  | (17 | ) |  | (90 | ) |  | 23 |  |  | (243 | )
Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures. Such instruments did not meet the requirements for qualified hedge accounting under GAAP.

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