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Supporting Financial Information (Tables) | 6 Months Ended
--- | ---
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Accounts Receivable | Accounts receivable
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2017 |  | 2016
Billed receivables |  |  | $ | 7,459 |  |  | $ | 5,265 |
Unbilled receivables |  |  | 1,412 |  |  | 1,372 |
Total accounts receivable |  |  | 8,871 |  |  | 6,637 |
Less: Allowance for doubtful accounts | (a) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 8,871 |  |  | $ | 6,637 |
Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at fair value, which is 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 March 31, 2017 and September 30, 2016.
Schedule of Other Current Assets | Other current assets
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2017 |  | 2016
Prepaid insurance and benefits |  |  | $ | 332 |  |  | $ | 168 |
Total other prepaid expenses |  |  | 425 |  |  | 374 |
Other current assets |  |  | $ | 757 |  |  | $ | 542 |
Equipment and Improvemnts, Net | Equipment and improvements, net
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2017 |  | 2016
Furniture and equipment |  |  | $ | 670 |  |  | $ | 638 |
Computer equipment |  |  | 330 |  |  | 202 |
Computer software | (a) |  | 800 |  |  | 309 |
Leasehold improvements |  |  | 38 |  |  | 38 |
Total fixed assets |  |  | 1,838 |  |  | 1,187 |
Less accumulated depreciation and amortization |  |  | (718 | ) |  | (543 | )
Equipment and improvements, net | (b) |  | $ | 1,120 |  |  | $ | 644 |
Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning system. Capitalized costs include 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) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred.
Schedule of Intangible Assets and Goodwill | Goodwill and Intangibles
|  |  |  |  | (in thousands) |  |  |  |  |  |  |
| Ref |  | Goodwill |  | Customer Relationships (a) |  | Non Compete Agreement (a) |  | Trade Name (a) |  | Total |
Gross Balance at September 30, 2016 |  |  | $ | 34,745 |  |  | $ | 7,247 |  |  | $ | 1,370 |  |  | $ | — |  |  | $ | 43,362 |  |
Measurement period adjustment | (b) |  | (8,756 | ) |  | 9,379 |  |  | (890 | ) |  | 517 |  |  | 250 |  |
Adjusted Gross Balance at March 31, 2017 |  |  | $ | 25,989 |  |  | $ | 16,626 |  |  | $ | 480 |  |  | $ | 517 |  |  | $ | 43,612 |  |
|  |  |  |  | (in thousands) |  |  |  |  |  |  |
| Ref |  | Goodwill |  | Customer Relationships (a) |  | Non Compete Agreement (a) |  | Trade Name (a) |  | Total |
Gross Balance at September 30, 2016 |  |  | $ | 34,745 |  |  | $ | 7,247 |  |  | $ | 1,370 |  |  | $ | — |  |  | $ | 43,362 |  |
Measurement period adjustment | (b) |  | (8,756 | ) |  | 9,379 |  |  | (890 | ) |  | 517 |  |  | 250 |  |
Adjusted Gross Balance at March 31, 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 | (b) |  | — |  |  | 300 |  |  | 45 |  |  | (21 | ) |  | 324 |  |
Current period amortization |  |  | — |  |  | (830 | ) |  | (24 | ) |  | (27 | ) |  | (881 | ) |
Total amortization |  |  | — |  |  | (1,523 | ) |  | (44 | ) |  | (48 | ) |  | (1,615 | ) |
Net balance at March 31, 2017 | (c) |  | $ | 25,989 |  |  | $ | 15,103 |  |  | $ | 436 |  |  | $ | 469 |  |  | $ | 41,997 |  |
Ref (a): Intangible assets subject to amortization. Ref (b): See Note 11 for discussion on measurement and amortization period adjustments
Ref (c): 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 |  |  |  | 7,198 |
|  |  |  | $ | 16,008 |
Ref (a): Intangibles acquired during the acquisition of Danya included customer relationships, a covenant not to compete, and a trade name. The intangibles are amortized on a straight-line basis over the estimated useful lives (10 years). Net amount of amortization expense for the quarter ended March 31, 2017 was $.4 million. The amortization for the six months ended March 31, 2017 was $.6 million.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense |
Ref (c): 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 |  |  |  | 7,198 |
|  |  |  | $ | 16,008 |
Ref (a): Intangibles acquired during the acquisition of Danya included customer relationships, a covenant not to compete, and a trade name. The intangibles are amortized on a straight-line basis over the estimated useful lives (10 years). Net amount of amortization expense for the quarter ended March 31, 2017 was $.4 million.
Accounts Payable, Accrued Expenses, and Other Current Liabilities | ccrued expenses and other current liabilities
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2017 |  | 2016
Accounts payable |  |  | $ | 5,714 |  |  | $ | 4,324 |
Accrued benefits |  |  | 1,194 |  |  | 1,197 |
Accrued bonus and incentive compensation |  |  | 173 |  |  | 508 |
Accrued workers compensation insurance |  |  | 1,035 |  |  | 981 |
Other accrued expenses |  |  | 595 |  |  | 126 |
Accounts payable, accrued expenses, and other current liabilities |  |  | $ | 8,711 |  |  | $ | 7,136 |
Long-term Debt Instruments | Debt obligations
|  |  | (in thousands)
|  |  | March 31, | September 30,
| Ref |  | 2017 |  | 2016
Gross bank debt obligations | (a) |  | 21,563 |  |  | 23,438 |
Less unamortized debt issuance costs |  |  | (1,095 | ) |  | (1,222 | )
Net bank debt obligation |  |  | 20,468 |  |  | 22,216 |
Less current portion of bank debt obligations |  |  | (3,580 | ) |  | (3,560 | )
Long term portion of bank debt obligation |  |  | $ | 16,888 |  |  | $ | 18,656 |
Ref (a): Maturity of the bank debt is as follows: |  |  |  |  |
Year 1 |  |  | $ | 3,750 |  |  |
Year 2 |  |  | 3,750 |  |  |
Year 3 |  |  | 3,750 |  |  |
Year 4 |  |  | 3,750 |  |  |
Year 5 |  |  | 6,563 |  |  |
Total net bank debt obligation |  |  | $ | 21,563 |  |  |
Other Income (Expense) | Other Income (Expense)
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Six Months Ended
|  |  | March 31, |  | March 31,
| Ref |  | 2017 |  | 2016 |  | 2017 |  |  | 2016 |
Interest (expense), net | (a) |  | $ | (215 | ) |  | $ | — |  |  | $ | (440 | ) |  | $ | — |
Amortization of deferred financing costs | (b) |  | (67 | ) |  | — |  |  | (127 | ) |  | — |
Change in fair value of derivative financial instruments |  |  | 27 |  |  | — |  |  | (52 | ) |  |
Other income (expense), net |  |  |  |  |  | (127 | ) |  | — |  |  | (702 | )
Other income (expense), net |  |  | $ | (255 | ) |  | $ | (127 | ) |  | $ | (619 | ) |  | $ | (702 | )
Ref (a): Interest expense on borrowing related to acquisition of Danya Ref (b): Amortizations of expenses related to securing financing to acquire Danya

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