Supporting Financial Information (Tables)

12 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]



			(in thousands)
		September 30,			September 30,
	Ref		2015			2014
Billed receivables			$	2,498		$	2,569

Unbilled receivables-retroactive payment claim	(a)		—			9,306
Unbilled receivables-other			788			497
Total unbilled receivables			788			9,803

Total accounts receivable			3,286			12,372
Less: Allowance for doubtful accounts	(b)		—			—
Accounts receivable, net			$	3,286		$	12,372

Ref (a): As previously reported, during the fiscal year ended September 30, 2008, DLH Holdings Corp. (the “Company”) accrued salaries and benefits of $10.1 million related to the estimated resolution of retroactive payment cases asserted by the Department of Labor (“DOL”). During the same period, the Company recognized revenues of $10.8 million related to expected recovery of these costs, plus estimated indirect costs, under contractual arrangements with the Department of Veterans Affairs (“DVA”). At September 30, 2014, the amount of the remaining accounts receivable with the DVA approximated $9.3 million and accrued liabilities for salaries to employees and related benefits totaled $8.7 million. The $9.3 million in accounts receivable was unbilled to the DVA at September 30, 2014.

In September 2014, we submitted a claim to the DVA seeking a final determination and resolution of this matter. During the quarter ended March 31, 2015, we were advised that the DOL would not take further action with respect to the retroactive payment cases and that it would not object to the DVA’s resolution of this matter with the Company. As a result, we had no obligation for the payment of these accrued salaries and benefits. Because no retroactive wage payments were required, we have no contractual recovery of costs from the DVA. Accordingly, in order to resolve this matter, on March 30, 2015, we entered into a mutual release of claims with the DVA, pursuant to which both parties agreed to fully release each other from any and all claims arising pursuant to this matter.

As a result of the closure of this issue, as a part of our reporting for the quarter ended March 31, 2015, we removed the accruals of estimated revenue and expense which were recorded in the year ended September 30, 2008. Further, we reported a reduction of $9.3 million in accounts receivable, a reduction of $8.7 million in accrued liabilities for salaries to employees and related benefits, and a net charge to our earnings of approximately $629 thousand for the fiscal quarter ended March 31, 2015 relating to the resolution of this matter. The net expense related to this issue was non-cash and not related to income from current operations.

Ref (b): Accounts receivable are unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both September 30, 2015 and 2014.

Schedule of Other Current Assets



			(in thousands)
		September 30,			September 30,
	Ref		2015			2014
Workers’ compensation receivable	(a)		$	29		$	199
Prepaid insurance expense			156			176
Other prepaid expenses			244			135
Other current assets			$	429		$	510

Ref (a): As part of the Company’s discontinued PEO operations, DLH had a workers’ compensation program with Zurich American Insurance Company (“Zurich”) which covered the period from March 22, 2002 through November 16, 2003, inclusive. DLH estimates that the remaining workers compensation receivable of approximately $29 thousand will be received within the next twelve months.

Schedule of Accrued Payroll



			(in thousands)
		September 30,			September 30,
	Ref		2015			2014
Accrued payroll related to billed receivables			$	2,259		$	2,440

Accrued payroll related to retroactive payment claim	(a)		$	—		$	8,677
Accrued payroll related to unbilled accounts receivable			$	536		$	348
Total accrued payroll related to unbilled accounts receivable	(a)		$	536		$	9,025

Total accrued payroll			$	2,795		$	11,465

Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”.

Equipment and Improvemnts, Net



			(in thousands)
		September 30,				September 30,
	Ref		2015				2014
Furniture and equipment			$	197			$	139
Computer equipment			162				126
Computer software			297				430
Leasehold improvements			63				24
Total fixed assets			719				719
Less accumulated depreciation and amortization			(383		)		(656		)
Equipment and improvements, net	(a)		$	336			$	63

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) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred.

Accounts Payable, Accrued Expenses, and Other Current Liabilities



			(in thousands)
		September 30,			September 30,
	Ref		2015			2014
Accounts payable			$	87		$	779
Accrued benefits			267			720
Accrued bonus and incentive compensation			858			693
Accrued workers compensation insurance			945			767
Other accrued expenses			694			339
Payroll tax payable	(a)		—			1,448
Total Accrued expenses and other current liabilities			$	2,851		$	4,746

Ref (a): In prior periods, DLH had received notices from the IRS claiming taxes, interest and penalties were due related to payroll taxes. These notices were predominantly related to the former PEO operations which were sold in fiscal year 2003. During fiscal year ended September 30, 2015, DLH engaged tax counsel who was able to demonstrate that there were no taxes due related to this legacy issue. In September 2015, DLH received confirmation from the IRS that no taxes, interest, or penalties were due or otherwise payable.

Other Income (Expense)



		(in thousands)
		Year Ended
		September 30,
	Ref	2015			2014
Interest expense, net		$	(80	)	$	(99	)
Amortization of deferred financing costs		—			(10		)
Change in value of financial instruments	(a)	—			99
Miscellaneous other income (expense), net	(b)	824			6
Total other income (expense), net		$	744		$	(4	)

Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures in prior year ended September 30, 2014.

Ref (b): Current year miscellaneous other income includes $1.5 million from resolution of the legacy payroll tax issue in fourth quarter 2015, partially offset by the $0.6 million, net, March 2015 non-cash settlement of the retroactive payment issue.