Supporting Financial Information (Tables)

9 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable

Accounts receivable

		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Billed receivables		$	12,298	$	11,862
Unbilled receivables		122		49
Total accounts receivable		12,420		11,911
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	12,420	$	11,911

Ref (a): 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, 2018 or September 30, 2017.

Schedule of Other Current Assets

Other current assets

		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Prepaid insurance and benefits		$	611	$	240
Other receivables and prepaid expenses		245		358
Other current assets		$	856	$	598

Schedule of Equipment and Improvements, Net

Equipment and improvements, net

		(in thousands)
		June 30,			September 30,
	Ref	2018			2017
Furniture and equipment		$	326		$	331
Computer equipment		759			715
Computer software	(a)	1,640			1,108
Leasehold improvements		66			66
Total fixed assets		2,791			2,220
Less accumulated depreciation and amortization		(1,161		)	(829		)
Equipment and improvements, net	(b)	$	1,630		$	1,391

Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.2 million and $0.7 million as of June 30, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service as of January 1, 2018 with an estimated useful life of 5 years.

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. Depreciation of equipment was $147 thousand and $69 thousand for the three months ended June 30, 2018 and 2017, respectively, and $332 thousand and $239 thousand for the nine months ended June 30, 2018 and 2017, respectively.

Schedule of Intangible Assets

Intangible Assets

		(in thousands)
		June 30,			September 30,
	Ref	2018			2017
Intangible assets	(a)
Customer contracts and related customer relationships		$	16,626		$	16,626
Covenants not to compete		480			480
Trade name		517			517
Intangible assets		17,623			17,623
Less accumulated amortization
Customer contracts and related customer relationships		(3,602		)	(2,355		)
Covenants not to compete		(104		)	(68		)
Trade name		(112		)	(73		)
Total accumulated amortization		(3,818		)	(2,496		)
Intangible assets, net		$	13,805		$	15,127

Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense was $0.4 million and $0.4 million for the three months ended June 30, 2018 and 2017, respectively, and $1.3 million and $1.0 million for the nine months ended June 30, 2018 and 2017, respectively.

Schedule of Estimated Amortization of Intangible Assets

Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2018	$	441
Fiscal 2019	1,762
Fiscal 2020	1,762
Fiscal 2021	1,762
Fiscal 2022	1,762
Fiscal 2023	1,762
Thereafter	4,554
	$	13,805

Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities

Accounts payable, accrued expenses and other current liabilities

		(in thousands)
		June 30,		September 30,
	Ref	2018		2017
Accounts payable		$	3,890	$	5,205
Accrued benefits		2,263		1,831
Accrued bonus and incentive compensation		1,509		1,544
Accrued workers compensation insurance		2,182		1,598
Other accrued expenses		631		717
Accounts payable, accrued expenses, and other current liabilities		$	10,475	$	10,895

Schedule of Debt Obligations

Debt obligations

		(in thousands)
		June 30,			September 30,
	Ref	2018				2017
Bank term loan	(a)	$	13,958			$	19,688
Less unamortized debt issuance costs		(823		)		(961		)
Net bank debt obligation		13,135				18,727
Less current portion of bank debt obligations		(3,633		)		(6,518		)
Long term portion of bank debt obligation		$	9,502			$	12,209

Ref (a): Maturity of the bank debt obligation as follows, in thousands:
Year 1	$	3,750
Year 2	3,750
Year 3	6,458
Total bank debt obligation	$	13,958

Schedule of Expense

Interest expense

		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2018			2017			2018			2017
Interest expense	(a)	$	(192	)	$	(219	)	$	(619	)	$	(662	)
Amortization of debt financing costs as interest expense	(b)	(70		)	(70		)	(202		)	(194		)
Change in fair value of derivative financial instruments		—			3			—			(49		)
Other income (expense), net		—			17			20			17
Interest expense, net		$	(262	)	$	(269	)	$	(801	)	$	(888	)

Ref (a): Interest expense on borrowing

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