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Supporting Financial Information | 6 Months Ended
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Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2018 |  | 2017
Billed receivables |  |  | $ | 11,989 |  |  | $ | 11,862 |
Unbilled receivables |  |  | 349 |  |  | 49 |
Total accounts receivable |  |  | 12,338 |  |  | 11,911 |
Less: Allowance for doubtful accounts | (a) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 12,338 |  |  | $ | 11,911 |
Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. 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 March 31, 2018 and September 30, 2017. Other current assets
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2018 |  | 2017
Prepaid insurance and benefits |  |  | $ | 605 |  |  | $ | 240 |
Other receivables and prepaid expenses |  |  | 340 |  |  | 358 |
Other current assets |  |  | $ | 945 |  |  | $ | 598 |
Equipment and improvements, net
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2018 |  | 2017
Furniture and equipment |  |  | $ | 326 |  |  | $ | 331 |
Computer equipment |  |  | 810 |  |  | 715 |
Computer software | (a) |  | 1,607 |  |  | 1,108 |
Leasehold improvements |  |  | 66 |  |  | 66 |
Total fixed assets |  |  | 2,809 |  |  | 2,220 |
Less accumulated depreciation and amortization |  |  | (1,014 | ) |  | (829 | )
Equipment and improvements, net | (b) |  | $ | 1,795 |  |  | $ | 1,391 |
Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.2 million and $0.7 million as of March 31, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service effective as of 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 $119 thousand and $85 thousand for the three months ended March 31, 2018 and 2017 respectively and $185 thousand and $170 thousand for the six months ended March 31, 2018 and 2017 respectively. Goodwill and Intangibles
|  |  | (in thousands)
|  |  | as of March 31, 2018
| Ref |  | Goodwill |  | Customer Relationships (a) |  | Non Compete Agreement (a) |  | Trade Name (a) |  | Total
Gross Balance at September 30, 2017 |  |  | $ | 25,989 |  |  | $ | 16,626 |  |  | $ | 480 |  |  | $ | 517 |  |  | $ | 43,612 |
Accumulated amortization at September 30, 2017 |  |  | — |  |  | (2,355 | ) |  | (68 | ) |  | (73 | ) |  | (2,496 | )
Current period amortization |  |  | — |  |  | (831 | ) |  | (24 | ) |  | (26 | ) |  | (881 | )
Total accumulated amortization |  |  | — |  |  | (3,186 | ) |  | (92 | ) |  | (99 | ) |  | (3,377 | )
Net balance at March 31, 2018 |  |  | $ | 25,989 |  |  | $ | 13,440 |  |  | $ | 388 |  |  | $ | 418 |  |  | $ | 40,235 |
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 was $0.4 million and $0.4 million for the three months ended March 31, 2018 and 2017, respectively.
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 |  | 5,436 |
|  | $ | 14,246 |
Accounts payable, accrued expenses and other current liabilities
|  |  | (in thousands)
|  |  | March 31, |  | September 30,
| Ref |  | 2018 |  | 2017
Accounts payable |  |  | $ | 4,914 |  |  | $ | 5,205 |
Accrued benefits |  |  | 1,857 |  |  | 1,831 |
Accrued bonus and incentive compensation |  |  | 1,029 |  |  | 1,544 |
Accrued workers compensation insurance |  |  | 1,626 |  |  | 1,598 |
Other accrued expenses |  |  | 510 |  |  | 717 |
Accounts payable, accrued expenses, and other current liabilities |  |  | $ | 9,936 |  |  | $ | 10,895 |
Debt obligations
|  |  | (in thousands)
|  |  | March 31, | September 30,
| Ref |  | 2018 |  | 2017
Bank term loan | (a) |  | $ | 14,896 |  |  | $ | 19,688 |
Less unamortized debt issuance costs |  |  | (823 | ) |  | (961 | )
Net bank debt obligation |  |  | 14,073 |  |  | 18,727 |
Less current portion of bank debt obligations |  |  | (3,622 | ) |  | (6,518 | )
Long term portion of bank debt obligation |  |  | $ | 10,451 |  |  | $ | 12,209 |
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 |  | 3,646 |
Total bank debt obligation |  | $ | 14,896 |
Interest expense
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Six Months Ended
|  |  | March 31, |  | March 31,
| Ref |  | 2018 |  | 2017 |  | 2018 |  | 2017
Interest expense | (a) |  | $ | (208 | ) |  | $ | (215 | ) |  | $ | (427 | ) |  | $ | (440 | )
Amortization of debt financing costs as interest expense | (b) |  | (67 | ) |  | (67 | ) |  | (132 | ) |  | (127 | )
Change in fair value of derivative financial instruments |  |  | — |  |  | 27 |  |  | — |  |  | (52 | )
Other income (expense), net |  |  | 14 |  |  |  |  |  | 20 |  |  | — |
Interest expense, net |  |  | $ | (261 | ) |  | (255 | ) |  | $ | (539 | ) |  | $ | (619 | )
Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing

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