Supporting Financial Information

Accounts receivable



		(in thousands)
		December 31,		September 30,
	Ref	2016		2016
Billed receivables		$	7,260	$	5,265
Unbilled receivables		32		1,372
Total accounts receivable		7,292		6,637
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	7,292	$	6,637

Ref (a): Accounts receivable are non-interest bearing, 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 December 31, 2016 and September 30, 2016.

Other current assets



		(in thousands)
		December 31,		September 30,
	Ref	2016		2016
Prepaid insurance and benefits		$	326	$	168
Total other prepaid expenses		299		374
Other current assets		$	625	$	542

Equipment and improvements, net



		(in thousands)
		December 31,			September 30,
	Ref	2016			2016
Furniture and equipment		$	651		$	638
Computer equipment		209			202
Computer software		309			309
Leasehold improvements		38			38
Total fixed assets		1,207			1,187
Less accumulated depreciation and amortization		(607		)	(543		)
Equipment and improvements, net	(a)	$	600		$	644

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.

Goodwill and Intangibles



					(in thousands)
	Ref	Goodwill			Customer Relationships (a)			Non Compete Agreement (a)			Trade Name (a)			Total
Balance at September 30, 2016		$	34,745		$	6,254		$	1,305		$	—		$	42,304
Measurement period adjustment	(b)	(8,756		)	9,379			(890		)	517			250
Amortization period adjustment	(b)				300			45			(21		)	324
Accumulated amortization		—			(415		)	(12		)	(13		)	(440		)
Net balance at December 31, 2016	(c)	$	25,989		$	15,518		$	448		$	483		$	42,438

Ref (a): Intangible assets subject to amortization.

Ref (b): See Note 11 for discussion on measurement and amortization period adjustments



Ref (c): Estimated amortization expense for future years:	(in thousands)
Year 1	$	1,762
Year 2	1,762
Year 3	1,762
Year 4	1,762
Year 5	1,762
Thereafter	7,639
	$	16,449

Ref (a): Intangibles acquired during the acquisition of Danya included customer relationships, a covenant not to compete, and a trade name. The intangibles are amortized on a straight-line basis over the estimated useful lives (10 years). Net amount of amortization expense for the quarter ended December 31, 2016 was $.1 million.

Accounts payable, accrued expenses and other current liabilities



		(in thousands)
		December 31,		September 30,
	Ref	2016		2016
Accounts payable		$	5,174	$	4,324
Accrued benefits		1,164		1,197
Accrued bonus and incentive compensation		—		508
Accrued workers compensation insurance		610		981
Other accrued expenses		—		126
Accounts payable, accrued expenses, and other current liabilities		$	6,948	$	7,136

Debt obligations



		(in thousands)
		December 31,			September 30,
	Ref	2016				2016
Bank term loan	(a)	$	22,500			$	23,438
Gross bank debt obligations		22,500				23,438
Less unamortized debt issuance costs		(1,162		)		(1,222		)
Net bank debt obligation		21,338				22,216
Less current portion of bank debt obligations		(3,570		)		(3,560		)
Long term portion of bank debt obligation		$	17,768			$	18,656


Ref (a): Maturity of the bank debt is as follows:
Year 1		$	3,750
Year 2		3,750
Year 3		3,750
Year 4		3,750
Year 5		7,500
Total net bank debt obligation		$	22,500

Other Income (Expense)



		(in thousands)
		Three Months Ended
		December 31,
	Ref	2016			2015
Interest income (expense), net	(a)	$	(225	)	$	—
Amortization of deferred financing costs	(b)	(60		)	—
Change in fair value of derivative financial instruments		(79		)	—
Other income (expense), net	(c)	—			(575		)
Other income (expense), net		$	(364	)	$	(575	)

Ref (a): Interest expense on borrowing related to acquisition of Danya

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

Ref (c): Other expenses in 2015 includes approximately $(0.6) million non-operational acquisition expense.