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Supporting Financial Information | 12 Months Ended
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Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  |  | (in thousands) |
|  |  | September 30, |  | September 30,
| Ref |  |  | 2017 |  |  |  | 2016 |
Billed receivables |  |  |  | $ | 11,862 |  |  |  |  | $ | 5,265 |  |
Unbilled receivables |  |  |  | 49 |  |  |  |  | 1,372 |  |
Total accounts receivable |  |  |  | 11,911 |  |  |  |  | 6,637 |  |
Less: Allowance for doubtful accounts | (a) |  |  | — |  |  |  |  | — |  |
Accounts receivable, net |  |  |  | $ | 11,911 |  |  |  |  | $ | 6,637 |  |
Ref (a): Accounts receivable are non-interest bearing, unsecured and net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both September 30, 2017 and September 30, 2016. Our allowance for doubtful accounts is assessed based on Company policy of specific identification for aged items. The Company generally does not have delinquent receivables due to the nature of its business. Other current assets
|  |  |  | (in thousands) |
|  |  | September 30, |  | September 30,
| Ref |  |  | 2017 |  |  |  | 2016 |
Prepaid insurance and benefits |  |  |  | $ | 240 |  |  |  |  | $ | 168 |  |
Other receivables and prepaid expenses |  |  |  | 358 |  |  |  |  | 374 |  |
Other current assets |  |  |  | $ | 598 |  |  |  |  | $ | 542 |  |
Equipment and improvements, net
|  |  |  | (in thousands) |
|  |  | September 30, |  | September 30,
| Ref |  |  | 2017 |  |  |  | 2016 |
Furniture and equipment |  |  |  | $ | 331 |  |  |  |  | $ | 638 |  |
Computer equipment |  |  |  | 715 |  |  |  |  | 202 |  |
Computer software | (a) |  |  | 1,108 |  |  |  |  | 309 |  |
Leasehold improvements |  |  |  | 66 |  |  |  |  | 38 |  |
Total fixed assets |  |  |  | 2,220 |  |  |  |  | 1,187 |  |
Less accumulated depreciation and amortization |  |  |  | (829 | ) |  |  |  | (543 | ) |
Equipment and improvements, net | (b) |  |  | $ | 1,391 |  |  |  |  | $ | 644 |  |
Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning (ERP) system. Capitalized costs include $741 thousand of software licenses and implementation labor related to application development. Since the asset has not been placed in service, no depreciation related to the asset has been recognized. Prior to the asset being placed in service a useful life will be determined. Ref (b): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $287 thousand and $188 thousand for the years ended September 30, 2017 and September 30, 2016 respectively. Goodwill and Intangibles
|  |  |  |  | (in thousands)
| Ref |  | Goodwill |  | Customer Relationships |  | Non Compete |  | Trade Name |  | Total
Gross Balance as of September 30, 2016 |  |  | $ | 34,745 |  |  | $ | 7,247 |  |  | $ | 1,370 |  |  | $ | — |  |  | 43,362 |
Measurement period adjustment |  |  | (8,756 | ) |  | 9,379 |  |  | (890 | ) |  | 517 |  |  | 250 |
Adjusted Gross Balance at September 30, 2017 |  |  | $ | 25,989 |  |  | $ | 16,626 |  |  | $ | 480 |  |  | $ | 517 |  |  | 43,612 |
|  |  |  |  | (in thousands)
| Ref. |  | Goodwill |  | Customer Relationships (a) |  | Non Compete Agreement (a) |  | Trade Name (a) |  | Total
Accumulated amortization at September 30, 2016 |  |  | $ | — |  |  | $ | (993 | ) |  | $ | (65 | ) |  | $ | — |  |  | $ | (1,058 | )
Prior period amortization adjustment |  |  | — |  |  | 300 |  |  | 45 |  |  | (21 | ) |  | 324 |
Current period amortization |  |  | — |  |  | (1,662 | ) |  | (48 | ) |  | (52 | ) |  | (1,762 | )
Total accumulated amortization |  |  | — |  |  | (2,355 | ) |  | (68 | ) |  | (73 | ) |  | (2,496 | )
Net balance at September 30, 2017 |  |  | $ | 25,989 |  |  | $ | 14,271 |  |  | $ | 412 |  |  | $ | 444 |  |  | $ | 41,116 |
The financial statements at September 30, 2016 reflected a preliminary estimate of purchase accounting, its allocation to acquired intangibles and resulting amortization. As of December 31, 2016 the Company completed its valuation of the May 2016 transaction and finalized the adjustments to the estimated values recognized at September 30, 2016. Therefore the Company recognized a net increase to the fair value of intangibles in the amount of $9.0 million with a corresponding decrease to goodwill. Additionally, the change to the estimated amounts resulted in a decrease in amortization of $0.3 million in the current period. Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense for the year ended September 30, 2017 was $1.4 million.
Estimated amortization expense for future years: |  | (in thousands)
Year 1 |  | $ | 1,762 |
Year 2 |  | 1,762 |
Year 3 |  | 1,762 |
Year 4 |  | 1,762 |
Year 5 |  | 1,762 |
Thereafter |  | 6,317 |
|  | $ | 15,127 |
Accounts payable, accrued expenses and other current liabilities
|  | (in thousands)
|  | September 30, |  | September 30,
|  | 2017 |  | 2016
Accounts payable |  | $ | 5,205 |  |  | $ | 4,324 |
Accrued benefits |  | 1,831 |  |  | 1,197 |
Accrued bonus and incentive compensation |  | 1,544 |  |  | 508 |
Accrued workers compensation insurance |  | 1,598 |  |  | 981 |
Other accrued expenses |  | 717 |  |  | 126 |
Accounts payable, accrued expenses, and other current liabilities |  | $ | 10,895 |  |  | $ | 7,136 |
Debt obligations
|  |  | (in thousands)
|  |  | September 30, |  | September 30,
| Ref |  | 2017 |  | 2016
Bank term loan | (a) |  | $ | 19,688 |  |  | $ | 23,438 |
Less unamortized debt issuance costs |  |  | (961 | ) |  | (1,222 | )
Net bank debt obligation |  |  | 18,727 |  |  | 22,216 |
Less current portion of bank debt obligations |  |  | (3,601 | ) |  | (3,560 | )
Long term portion of bank debt obligation |  |  | $ | 15,126 |  |  | $ | 18,656 |
Ref (a): Maturity of the bank debt obligation as follows, in thousands: |  |  |
Year 1 |  | $ | 3,750 |  |
Year 2 |  | 3,750 |  |
Year 3 |  | 3,750 |  |
Year 4 |  | 8,438 |  |
Total bank debt obligation |  | $ | 19,688 |  |
Interest expense
|  |  | (in thousands)
|  |  | Twelve Months Ended
|  |  | September 30,
| Ref |  | 2017 |  | 2016
Interest expense | (a) |  | $ | (883 | ) |  | $ | (454 | )
Amortization of deferred financing costs as interest expense | (b) |  | (268 | ) |  | (289 | )
Change in fair value of derivative financial instruments |  |  | (102 | ) |  | (27 | )
Other income (expense), net |  |  | 25 |  |  | (53 | )
Interest expense, net |  |  | $ | (1,228 | ) |  | $ | (823 | )
Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing

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