Supporting Financial Information

Accounts receivable



		(in thousands)
		December 31,		September 30,
	Ref	2018		2018
Billed receivables		$	13,644	$	10,066
Contract assets		479		214
Total accounts receivable		14,123		10,280
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	14,123	$	10,280

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 December 31, 2018 or September 30, 2018.

Other current assets



	(in thousands)
	December 31,		September 30,
	2018		2018
Prepaid insurance and benefits	$	692	$	401
Other receivables and prepaid expenses	575		359
Other current assets	$	1,267	$	760

Equipment and improvements, net



		(in thousands)
		December 31,			September 30,
	Ref	2018			2018
Furniture and equipment		$	326		$	326
Computer equipment		751			751
Computer software		1,731			1,731
Leasehold improvements		66			66
Total fixed assets		2,874			2,874
Less accumulated depreciation and amortization		(1,430		)	(1,308		)
Equipment and improvements, net	(a)	$	1,444		$	1,566

Ref (a): 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 was $0.1 million and $0.1 million for the three months ended December 31, 2018 and 2017.

Intangible Assets



		(in thousands)
		December 31,			September 30,
	Ref	2018			2018
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		(4,434		)	(4,018		)
Covenants not to compete		(128		)	(116		)
Trade name		(137		)	(124		)
Total accumulated amortization		(4,699		)	(4,258		)
Intangible assets, net		$	12,924		$	13,365

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 December 31, 2018 and 2017.



Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2019	$	1,321
Fiscal 2020	1,762
Fiscal 2021	1,762
Fiscal 2022	1,762
Fiscal 2023	1,762
Thereafter	4,555
Total amortization expense	$	12,924

Accounts payable, accrued expenses and other current liabilities



	(in thousands)
	December 31,		September 30,
	2018		2018
Accounts payable	$	3,853	$	3,393
Accrued benefits	1,539		2,060
Accrued bonus and incentive compensation	525		2,191
Accrued workers compensation insurance	3,046		2,642
Other accrued expenses	955		664
Accounts payable, accrued expenses, and other current liabilities	$	9,918	$	10,950

Debt obligations



		(in thousands)
		December 31,			September 30,
	Ref	2018			2018
Bank term loan	(a)	$	7,395		$	7,708
Less unamortized debt issuance costs		(677		)	(750		)
Net bank debt obligation		6,718			6,958
Less current portion of bank debt obligations		—			—
Long term portion of bank debt obligation		$	6,718		$	6,958



Ref (a): Maturity of the bank debt obligation as follows, in thousands:
Fiscal 2019	$	—
Fiscal 2020	1,562
Fiscal 2021	5,833
Total bank debt obligation	$	7,395

Interest expense



		(in thousands)
		Three Months Ended
		December 31,
	Ref	2018			2017
Interest expense	(a)	$	(104	)	$	(219	)
Amortization of debt financing costs as interest expense	(b)	(73		)	(65		)
Other income (expense), net		—			6
Interest expense, net		$	(177	)	$	(278	)

Ref (a): Interest expense on borrowing

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