Supporting Financial Information (Tables)

9 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable

Accounts receivable

		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Billed receivables		$	7,046	$	5,265
Unbilled receivables		1,578		1,372
Total accounts receivable		8,624		6,637
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	8,624	$	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. No allowance for doubtful accounts was deemed necessary at both June 30, 2017 and September 30, 2016.

Schedule of Other Current Assets

Other current assets

		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Prepaid insurance and benefits		$	371	$	168
Total other prepaid expenses		249		374
Other current assets		$	620	$	542

Equipment and Improvemnts, Net

Equipment and improvements, net

		(in thousands)
		June 30,			September 30,
	Ref	2017			2016
Furniture and equipment		$	243		$	638
Computer equipment		843			202
Computer software	(a)	1,239			309
Leasehold improvements		85			38
Total fixed assets		2,410			1,187
Less accumulated depreciation and amortization		(1,247		)	(543		)
Equipment and improvements, net	(b)	$	1,163		$	644

Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning system. Capitalized costs include software licenses and implementation labor related to application development. Since the asset has not been placed in service, no depreciation related to the asset has been recognized. Prior to the asset being placed in service a useful life will be determined.

Ref (b): 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

Schedule of Intangible Assets and Goodwill

					(in thousands)
	Ref	Goodwill			Customer Relationships (a)		Non Compete Agreement (a)			Trade Name (a)		Total
Gross Balance at September 30, 2016		$	34,745		$	7,247	$	1,370		$	—	$	43,362
Measurement period adjustment		(8,756		)	9,379		(890		)	517		250
Adjusted Gross Balance at June 30, 2017		$	25,989		$	16,626	$	480		$	517	$	43,612

				(in thousands)
	Ref	Goodwill		Customer Relationships (a)			Non Compete Agreement (a)			Trade Name (a)			Total
Accumulated amortization at September 30, 2016		$	—	$	(993	)	$	(65	)	$	—		$	(1,058	)
Prior period amortization adjustment		—		300			45			(21		)	324
Current period amortization		—		(1,246		)	(36		)	(39		)	(1,321		)
Total accumulated amortization		—		(1,939		)	(56		)	(60		)	(2,055		)
Net balance at June 30, 2017	(b)	$	25,989	$	14,687		$	424		$	457		$	41,557

Ref (a): Intangible assets subject to amortization.

Ref (b): 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	6,758
	$	15,568

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 June 30, 2017 was $.4 million. The amortization for the nine months ended June 30, 2017 was $1.0 million.

Goodwill and Intangibles

					(in thousands)
	Ref	Goodwill			Customer Relationships (a)		Non Compete Agreement (a)			Trade Name (a)		Total
Gross Balance at September 30, 2016		$	34,745		$	7,247	$	1,370		$	—	$	43,362
Measurement period adjustment		(8,756		)	9,379		(890		)	517		250
Adjusted Gross Balance at June 30, 2017		$	25,989		$	16,626	$	480		$	517	$	43,612

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Ref (b): 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	6,758
	$	15,568

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 June 30, 2017 was $.4 million.

Accounts Payable, Accrued Expenses, and Other Current Liabilities

ccrued expenses and other current liabilities

		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Accounts payable		$	5,001	$	4,324
Accrued benefits		1,323		1,197
Accrued bonus and incentive compensation		305		508
Accrued workers compensation insurance		1,248		981
Other accrued expenses		949		126
Accounts payable, accrued expenses, and other current liabilities		$	8,826	$	7,136

Long-term Debt Instruments

Debt obligations

		(in thousands)
		June 30,			September 30,
	Ref	2017				2016
Gross bank debt obligations	(a)	20,625				23,438
Less unamortized debt issuance costs		(1,028		)		(1,222		)
Net bank debt obligation		19,597				22,216
Less current portion of bank debt obligations		(3,590		)		(3,560		)
Long term portion of bank debt obligation	(b)	$	16,007			$	18,656
See Note 5 for terms of bank obligation
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		5,625
Total net bank debt obligation		$	20,625
Ref (b): Amount included in long-term liabilities.

Other Income (Expense)

Other Income (Expense)

		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2017			2016			2017			2016
Interest expense, net	(a)	$	(219	)	$	(206	)	$	(662	)	$	(206	)
Amortization of deferred financing costs	(b)	(70		)	(50		)	(194		)	(50		)
Change in fair value of derivative financial instruments		3			—			(49		)
Other income (expense), net		17			(118		)	17			(820		)
Other income (expense), net		$	(269	)	$	(374	)	$	(888	)	$	(1,076	)

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

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