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Supporting Financial Information | 9 Months Ended
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Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2018 |  | 2017
Billed receivables |  |  | $ | 12,298 |  |  | $ | 11,862 |
Unbilled receivables |  |  | 122 |  |  | 49 |
Total accounts receivable |  |  | 12,420 |  |  | 11,911 |
Less: Allowance for doubtful accounts | (a) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 12,420 |  |  | $ | 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 either June 30, 2018 or September 30, 2017. Other current assets
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2018 |  | 2017
Prepaid insurance and benefits |  |  | $ | 611 |  |  | $ | 240 |
Other receivables and prepaid expenses |  |  | 245 |  |  | 358 |
Other current assets |  |  | $ | 856 |  |  | $ | 598 |
Equipment and improvements, net
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2018 |  | 2017
Furniture and equipment |  |  | $ | 326 |  |  | $ | 331 |
Computer equipment |  |  | 759 |  |  | 715 |
Computer software | (a) |  | 1,640 |  |  | 1,108 |
Leasehold improvements |  |  | 66 |  |  | 66 |
Total fixed assets |  |  | 2,791 |  |  | 2,220 |
Less accumulated depreciation and amortization |  |  | (1,161 | ) |  | (829 | )
Equipment and improvements, net | (b) |  | $ | 1,630 |  |  | $ | 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 June 30, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service 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 $147 thousand and $69 thousand for the three months ended June 30, 2018 and 2017, respectively, and $332 thousand and $239 thousand for the nine months ended June 30, 2018 and 2017, respectively. Intangible Assets
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2018 |  | 2017
Intangible assets | (a) |  |  |  |
Customer contracts and related customer relationships |  |  | $ | 16,626 |  |  | $ | 16,626 |
Covenants not to compete |  |  | 480 |  |  | 480 |
Trade name |  |  | 517 |  |  | 517 |
Intangible assets |  |  | 17,623 |  |  | 17,623 |
Less accumulated amortization |  |  |  |  |
Customer contracts and related customer relationships |  |  | (3,602 | ) |  | (2,355 | )
Covenants not to compete |  |  | (104 | ) |  | (68 | )
Trade name |  |  | (112 | ) |  | (73 | )
Total accumulated amortization |  |  | (3,818 | ) |  | (2,496 | )
Intangible assets, net |  |  | $ | 13,805 |  |  | $ | 15,127 |
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 June 30, 2018 and 2017, respectively, and $1.3 million and $1.0 million for the nine months ended June 30, 2018 and 2017, respectively.
Estimated amortization expense for future years: |  | (in thousands)
Remaining Fiscal 2018 |  | $ | 441 |
Fiscal 2019 |  | 1,762 |
Fiscal 2020 |  | 1,762 |
Fiscal 2021 |  | 1,762 |
Fiscal 2022 |  | 1,762 |
Fiscal 2023 |  | 1,762 |
Thereafter |  | 4,554 |
|  | $ | 13,805 |
Accounts payable, accrued expenses and other current liabilities
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2018 |  | 2017
Accounts payable |  |  | $ | 3,890 |  |  | $ | 5,205 |
Accrued benefits |  |  | 2,263 |  |  | 1,831 |
Accrued bonus and incentive compensation |  |  | 1,509 |  |  | 1,544 |
Accrued workers compensation insurance |  |  | 2,182 |  |  | 1,598 |
Other accrued expenses |  |  | 631 |  |  | 717 |
Accounts payable, accrued expenses, and other current liabilities |  |  | $ | 10,475 |  |  | $ | 10,895 |
Debt obligations
|  |  | (in thousands)
|  |  | June 30, | September 30,
| Ref |  | 2018 |  | 2017
Bank term loan | (a) |  | $ | 13,958 |  |  | $ | 19,688 |
Less unamortized debt issuance costs |  |  | (823 | ) |  | (961 | )
Net bank debt obligation |  |  | 13,135 |  |  | 18,727 |
Less current portion of bank debt obligations |  |  | (3,633 | ) |  | (6,518 | )
Long term portion of bank debt obligation |  |  | $ | 9,502 |  |  | $ | 12,209 |
Ref (a): Maturity of the bank debt obligation as follows, in thousands: |  |
Year 1 |  | $ | 3,750 |
Year 2 |  | 3,750 |
Year 3 |  | 6,458 |
Total bank debt obligation |  | $ | 13,958 |
Interest expense
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | June 30, |  | June 30,
| Ref |  | 2018 |  | 2017 |  | 2018 |  | 2017
Interest expense | (a) |  | $ | (192 | ) |  | $ | (219 | ) |  | $ | (619 | ) |  | $ | (662 | )
Amortization of debt financing costs as interest expense | (b) |  | (70 | ) |  | (70 | ) |  | (202 | ) |  | (194 | )
Change in fair value of derivative financial instruments |  |  | — |  |  | 3 |  |  | — |  |  | (49 | )
Other income (expense), net |  |  | — |  |  | 17 |  |  | 20 |  |  | 17 |
Interest expense, net |  |  | $ | (262 | ) |  | $ | (269 | ) |  | $ | (801 | ) |  | $ | (888 | )
Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing

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