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Supporting Financial Information | 9 Months Ended
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Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2017 |  | 2016
Billed receivables |  |  | $ | 7,046 |  |  | $ | 5,265 |
Unbilled receivables |  |  | 1,578 |  |  | 1,372 |
Total accounts receivable |  |  | 8,624 |  |  | 6,637 |
Less: Allowance for doubtful accounts | (a) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 8,624 |  |  | $ | 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. No allowance for doubtful accounts was deemed necessary at both June 30, 2017 and September 30, 2016. Other current assets
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2017 |  | 2016
Prepaid insurance and benefits |  |  | $ | 371 |  |  | $ | 168 |
Total other prepaid expenses |  |  | 249 |  |  | 374 |
Other current assets |  |  | $ | 620 |  |  | $ | 542 |
Equipment and improvements, net
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2017 |  | 2016
Furniture and equipment |  |  | $ | 243 |  |  | $ | 638 |
Computer equipment |  |  | 843 |  |  | 202 |
Computer software | (a) |  | 1,239 |  |  | 309 |
Leasehold improvements |  |  | 85 |  |  | 38 |
Total fixed assets |  |  | 2,410 |  |  | 1,187 |
Less accumulated depreciation and amortization |  |  | (1,247 | ) |  | (543 | )
Equipment and improvements, net | (b) |  | $ | 1,163 |  |  | $ | 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 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 expense for the periods ended June 30, 2017 and September 30, 2016, were $0.2 million for both periods. 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 |  |  | (8,756 | ) |  | 9,379 |  |  | (890 | ) |  | 517 |  |  | 250 |  |
Adjusted Gross Balance at June 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 |  |  | — |  |  | (1,246 | ) |  | (36 | ) |  | (39 | ) |  | (1,321 | ) |
Total accumulated amortization |  |  | — |  |  | (1,939 | ) |  | (56 | ) |  | (60 | ) |  | (2,055 | ) |
Net balance at June 30, 2017 | (b) |  | $ | 25,989 |  |  | $ | 14,687 |  |  | $ | 424 |  |  | $ | 457 |  |  | $ | 41,557 |  |
Ref (a): Intangible assets subject to amortization.
Ref (b): 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 |  |  |  | 6,758 |
|  |  |  | $ | 15,568 |
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 June 30, 2017 was $.4 million. The amortization for the nine months ended June 30, 2017 was $1.0 million. Accounts payable, accrued expenses and other current liabilities
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2017 |  | 2016
Accounts payable |  |  | $ | 5,001 |  |  | $ | 4,324 |
Accrued benefits |  |  | 1,323 |  |  | 1,197 |
Accrued bonus and incentive compensation |  |  | 305 |  |  | 508 |
Accrued workers compensation insurance |  |  | 1,248 |  |  | 981 |
Other accrued expenses |  |  | 949 |  |  | 126 |
Accounts payable, accrued expenses, and other current liabilities |  |  | $ | 8,826 |  |  | $ | 7,136 |
Debt obligations
|  |  | (in thousands)
|  |  | June 30, | September 30,
| Ref |  | 2017 |  | 2016
Gross bank debt obligations | (a) |  | 20,625 |  |  | 23,438 |
Less unamortized debt issuance costs |  |  | (1,028 | ) |  | (1,222 | )
Net bank debt obligation |  |  | 19,597 |  |  | 22,216 |
Less current portion of bank debt obligations |  |  | (3,590 | ) |  | (3,560 | )
Long term portion of bank debt obligation | (b) |  | $ | 16,007 |  |  | $ | 18,656 |
See Note 5 for terms of bank obligation |  |  |  |  |
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 |  |  | 5,625 |  |  |
Total net bank debt obligation |  |  | $ | 20,625 |  |  |
Ref (b): Amount included in long-term liabilities. |  |  |  |  |
Other Income (Expense)
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | June 30, |  | June 30,
| Ref |  | 2017 |  | 2016 |  | 2017 |  |  | 2016 |
Interest expense, net | (a) |  | $ | (219 | ) |  | $ | (206 | ) |  | $ | (662 | ) |  | $ | (206 | )
Amortization of deferred financing costs | (b) |  | (70 | ) |  | (50 | ) |  | (194 | ) |  | (50 | )
Change in fair value of derivative financial instruments |  |  | 3 |  |  | — |  |  | (49 | ) |  |
Other income (expense), net |  |  | 17 |  |  | (118 | ) |  | 17 |  |  | (820 | )
Other income (expense), net |  |  | $ | (269 | ) |  | $ | (374 | ) |  | $ | (888 | ) |  | $ | (1,076 | )
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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