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Supporting Financial Information | 9 Months Ended
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Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Supporting Financial Information | Supporting Financial Information Accounts receivable
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2019 |  | 2018
Billed receivables |  |  | $ | 21,979 |  |  | $ | 10,066 |
Contract assets |  |  | 2,045 |  |  | 214 |
Total accounts receivable | (a) |  | 24,024 |  |  | 10,280 |
Less: Allowance for doubtful accounts | (b) |  | — |  |  | — |
Accounts receivable, net |  |  | $ | 24,024 |  |  | $ | 10,280 |
Ref (a): The total accounts receivable balance includes $13.1 million from SSS. Ref (b): 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, 2019 or September 30, 2018. Other current assets
|  | (in thousands)
|  | June 30, |  | September 30,
|  | 2019 |  | 2018
Prepaid insurance and benefits |  | $ | 806 |  |  | $ | 401 |
Other receivables |  | 874 |  |  | 319 |
Other prepaid expenses |  | 1,035 |  |  | 40 |
Other current assets |  | $ | 2,715 |  |  | $ | 760 |
Equipment and improvements, net
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2019 |  | 2018
Furniture and equipment |  |  | $ | 1,246 |  |  | $ | 326 |
Computer equipment |  |  | 1,002 |  |  | 751 |
Computer software |  |  | 3,667 |  |  | 1,731 |
Leasehold improvements |  |  | 1,595 |  |  | 66 |
Total equipment and improvements |  |  | 7,510 |  |  | 2,874 |
Less accumulated depreciation and amortization |  |  | (1,836 | ) |  | (1,308 | )
Equipment and improvements, net | (a) |  | $ | 5,674 |  |  | $ | 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 and amortization expense was $0.3 million and $0.1 million for the three months ended June 30, 2019 and 2018, respectively, and $0.5 million and $0.3 million for the nine months ended June 30, 2019 and 2018, respectively. Intangible assets
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2019 |  | 2018
Intangible assets | (a) |  |  |  |
Customer contracts and related customer relationships |  |  | $ | 16,626 |  |  | $ | 16,626 |
Covenants not to compete |  |  | 480 |  |  | 480 |
Trade name |  |  | 517 |  |  | 517 |
Acquired intangibles - SSS acquisition | (b) |  | 29,301 |  |  | — |
Total intangible assets |  |  | 46,924 |  |  | 17,623 |
Less accumulated amortization |  |  |  |  |
Customer contracts and related customer relationships |  |  | (5,266 | ) |  | (4,018 | )
Covenants not to compete |  |  | (152 | ) |  | (116 | )
Trade name |  |  | (164 | ) |  | (124 | )
Acquired intangibles - SSS acquisition | (b) |  | (186 | ) |  | — |
Total accumulated amortization |  |  | (5,768 | ) |  | (4,258 | )
Intangible assets, net |  |  | $ | 41,156 |  |  | $ | 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. The total amount of amortization expense was $0.6 million and $0.4 million for the three months ended June 30, 2019 and 2018, respectively, and $1.5 million and $1.3 million for the nine months ended June 30, 2019 and 2018, respectively. Ref (b): The Company is currently valuing the acquired intangible assets from the SSS acquisition. The balances provided are an estimate and subject to revision.
Estimated amortization expense for future years: | Ref | (in thousands)
Remaining Fiscal 2019 |  | $ | 988 |
Fiscal 2020 |  | 4,692 |
Fiscal 2021 |  | 4,692 |
Fiscal 2022 |  | 4,692 |
Fiscal 2023 |  | 4,692 |
Thereafter |  | 21,400 |
Total amortization expense | (a) | $ | 41,156 |
Ref (a): The amortization expense includes the Danya and SSS acquisitions. The Company is currently valuing the acquired intangible assets from the SSS acquisition. The balances provided are an estimate and subject to revision. Goodwill
Goodwill: | Ref | (in thousands)
Acquired from previous acquisitions |  | $ | 25,989 |
Acquired from SSS acquisition | (a) | 25,788 |
Total Goodwill |  | $ | 51,777 |
Ref (a): The Company is currently valuing the goodwill from the SSS acquisition. The balance provided is an estimate and subject to revision. Accounts payable, accrued expenses and other current liabilities
|  | (in thousands)
|  | June 30, |  | September 30,
| Ref | 2019 |  | 2018
Accounts payable |  | $ | 9,290 |  |  | $ | 3,393 |
Accrued benefits |  | 2,173 |  |  | 2,060 |
Accrued bonus and incentive compensation |  | 1,577 |  |  | 2,191 |
Accrued workers compensation insurance |  | 3,836 |  |  | 2,642 |
Other accrued expenses |  | 2,217 |  |  | 664 |
Accounts payable, accrued expenses, and other current liabilities | (a) | $ | 19,093 |  |  | $ | 10,950 |
Ref (a): The total accounts payable, accrued expenses, and other current liabilities includes $4.9 million from SSS. Debt obligations
|  |  | (in thousands)
|  |  | June 30, |  | September 30,
| Ref |  | 2019 |  | 2018
Bank term loan |  |  | $ | 66,063 |  |  | $ | 7,708 |
Less unamortized deferred financing cost |  |  | (1,906 | ) |  | (750 | )
Net bank debt obligation |  |  | 64,157 |  |  | 6,958 |
Less current portion of bank debt obligations |  |  | (1,313 | ) |  | — |
Long term portion of bank debt obligation |  |  | $ | 62,844 |  |  | $ | 6,958 |
Interest expense
|  |  | (in thousands) |  | (in thousands)
|  |  | Three Months Ended |  | Nine Months Ended
|  |  | June 30, |  | June 30,
| Ref |  | 2019 |  | 2018 |  | 2019 |  | 2018
Interest expense | (a) |  | $ | (297 | ) |  | $ | (192 | ) |  | $ | (485 | ) |  | $ | (619 | )
Amortization of deferred financing costs | (b) |  | (265 | ) |  | (70 | ) |  | (799 | ) |  | (202 | )
Other income (expense), net |  |  | — |  |  | — |  |  | — |  |  | 20 |
Interest expense, net |  |  | $ | (562 | ) |  | $ | (262 | ) |  | $ | (1,284 | ) |  | $ | (801 | )
Ref (a): Interest expense on borrowing. Ref (b): Amortization of deferred financing costs include write-offs of unamortized deferred financing costs of $0.2 million for three months ended June 30, 2019 and $0.6 million for the nine months ended June 30, 2019 related to the early extinguishment of the prior credit facility that was in place until June 7, 2019.

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