XML 41 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Liquidity
6 Months Ended
Mar. 31, 2015
Cash and Cash Equivalents [Abstract]  
Liquidity
Liquidity 

At March 31, 2015, the Company had cash and cash equivalents of approximately $4.2 million, net working capital of approximately $0.9 million, and an accumulated deficit of approximately $(62) million. For the six months ended March 31, 2015, the Company realized operating income of approximately $774 thousand and net income of approximately $52 thousand, as compared to operating income and net income of $291 thousand and $330 thousand respectively for the six months ended March 31, 2014.
 
The Company has a credit facility with a lending institution which provides a maximum amount of $6 million. The current term of the credit facility expires on July 29, 2015 and thereafter shall automatically renew on each anniversary date thereof for subsequent twelve month terms unless terminated by either party. Presently, the maximum availability under this loan facility is $3 million, subject to eligible accounts receivable.  The interest rate on both the Accounts Receivable and Unbilled Accounts portion of the loan was 4.0% at March 31, 2015, and September 30, 2014.  At March 31, 2015, our unused loan availability was approximately $2.6 million, comprised of a $1.4 million letter of credit reserve and $1.2 million of unused loan capacity. DLH required no borrowing on the credit facility during second quarter ended March 31, 2015.

Management believes, at present, that: (a) cash and cash equivalents of approximately $4.2 million as of March 31, 2015; (b) the amount available under its line of credit (which is limited to the amount of eligible assets); and (c) planned operating cash flow should be sufficient to support the Company's operations for twelve months from the date of these financial statements.