Supporting Financial Information

Accounts receivable



		(in thousands)
		December 31,		September 30,
	Ref	2017		2017
Billed receivables		$	12,843	$	11,862
Unbilled receivables		—		49
Total accounts receivable		12,843		11,911
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	12,843	$	11,911

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 December 31, 2017 and September 30, 2017.

Other current assets



		(in thousands)
		December 31,		September 30,
	Ref	2017		2017
Prepaid insurance and benefits		$	381	$	240
Other receivables and prepaid expenses		205		358
Other current assets		$	586	$	598

Equipment and improvements, net



		(in thousands)
		December 31,			September 30,
	Ref	2017			2017
Furniture and equipment		$	331		$	331
Computer equipment		753			715
Computer software	(a)	1,445			1,108
Leasehold improvements		66			66
Total fixed assets		2,595			2,220
Less accumulated depreciation and amortization		(894		)	(829		)
Equipment and improvements, net	(b)	$	1,701		$	1,391

Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning system. Capitalized costs include $1.0 million and $0.7 million as of December 31, 2017 and September 30, 2017, respectively, 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. The asset was placed in service on January 1, 2018 with an estimated useful life of 5 years.

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 $65 thousand and $85 thousand for the three months ended December 31, 2017 and 2016 respectively.

Goodwill and Intangibles



		(in thousands)
		as of December 31, 2017
	Ref	Goodwill		Customer Relationships (a)				Non Compete Agreement (a)			Trade Name (a)			Total
Gross Balance at December 31, 2017		$	25,989	$	16,626			$	480		$	517		$	43,612
Accumulated amortization at September 30, 2017		$	—	$	(2,355	)	—	$	(68	)	$	(73	)	$	(2,496	)
Current period amortization		—		(416		)		(12		)	(12		)	(440		)
Total accumulated amortization		—		(2,771		)		(80		)	(85		)	(2,936		)
Net balance at December 31, 2017		$	25,989	$	13,855			$	400		$	432		$	40,676

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 period ended December 31, 2017 was $0.4 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	5,877
	$	14,687

Accounts payable, accrued expenses and other current liabilities



		(in thousands)
		December 31,		September 30,
	Ref	2017		2017
Accounts payable		$	4,070	$	5,205
Accrued benefits		2,283		1,831
Accrued bonus and incentive compensation		721		1,544
Accrued workers compensation insurance		2,062		1,598
Other accrued expenses		400		717
Accounts payable, accrued expenses, and other current liabilities		$	9,536	$	10,895

Debt obligations



		(in thousands)
		December 31,			September 30,
	Ref	2017				2017
Bank term loan	(a)	$	18,750			$	19,688
Less unamortized debt issuance costs		(889		)		(961		)
Net bank debt obligation		17,861				18,727
Less current portion of bank debt obligations		(6,529		)		(6,518		)
Long term portion of bank debt obligation		$	11,332			$	12,209



Ref (a): Maturity of the bank debt obligation as follows, in thousands:
Year 1	$	6,667
Year 2	3,750
Year 3	3,750
Year 4	4,583
Total bank debt obligation	$	18,750

Interest expense



		(in thousands)
		Three Months Ended
		December 31,
	Ref	2017			2016
Interest expense	(a)	$	(219	)	$	(225	)
Amortization of debt financing costs as interest expense	(b)	(65		)	(60		)
Change in fair value of derivative financial instruments		—			(79		)
Other income (expense), net		6			—
Interest expense, net		$	(278	)	(364		)

Ref (a): Interest expense on borrowing

Ref (b): Amortizations of expenses related to securing financing