XML 38 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Supporting Financial Information (Tables)
 12 Months Ended
Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable
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.
Schedule of Other Current Assets
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

 
Schedule of Equipment and Improvements, Net
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.
Schedule of Goodwill and Intangibles
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.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
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
Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities
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
Schedule of Debt Obligations
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

 
Schedule of Other Expense
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