Supporting Financial Information

9 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Supporting Financial Information

Accounts receivable

		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Billed receivables		$	19,419	$	18,924
Contract assets		10,216		4,302
Total accounts receivable		29,635		23,226
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	29,635	$	23,226

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, 2020 or September 30, 2019.

Other current assets

	(in thousands)
	June 30,		September 30,
	2020		2019
Prepaid insurance and benefits	$	833	$	495
Other receivables	1,407		301
Other prepaid expenses	1,532		1,035
Other current assets	$	3,772	$	1,831

Equipment and improvements, net

		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Furniture and equipment		$	1,262	$	1,262
Computer equipment		1,171		1,043
Computer software		4,008		3,985
Leasehold improvements		1,595		1,595
Total equipment and improvements		8,036		7,885
Less accumulated depreciation and amortization		(4,267)		(2,542)
Equipment and improvements, net	(a)	$	3,769	$	5,343

Ref (a): Depreciation expense was $0.5 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and $1.7 million and $0.5 million for the nine months ended June 30, 2020 and 2019, respectively.

Intangible assets

		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Intangible assets	(a)
Customer contracts and related customer relationships		$	45,600	$	45,600
Covenants not to compete		480		480
Trade name		2,109		2,109
Total intangible assets		48,189		48,189
Less accumulated amortization
Customer contracts and related customer relationships		(10,010)		(6,590)
Covenants not to compete		(200)		(164)
Trade name		(385)		(227)
Total accumulated amortization		(10,595)		(6,981)
Intangible assets, net		$	37,594	$	41,208

Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. The total amount of amortization expense was $1.2 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and $3.6 million and $1.5 million for the nine months ended June 30, 2020 and 2019, respectively.

Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2020	$	1,205
Fiscal 2021	4,819
Fiscal 2022	4,819
Fiscal 2023	4,819
Fiscal 2024	4,819
Thereafter	17,113
Total amortization expense	$	37,594

Accounts payable, accrued expenses and other current liabilities

	(in thousands)
	June 30,		September 30,
	2020		2019
Accounts payable	$	11,827	$	10,054
Accrued benefits	2,963		2,252
Accrued bonus and incentive compensation	1,819		1,951
Accrued workers' compensation insurance	4,888		4,007
Other accrued expenses	2,756		2,369
Accounts payable, accrued expenses, and other current liabilities	$	24,253	$	20,633

Debt obligations

	(in thousands)
	June 30,		September 30,
	2020		2019
Bank term loan	$	44,500	$	56,000
Less unamortized deferred financing cost	(1,958)		(2,371)
Net bank debt obligation	42,542		53,629
Less current portion of term loan debt obligations	—		—
Long-term portion of bank debt obligation	$	42,542	$	53,629

Interest expense

		(in thousands)				(in thousands)
		Three Months Ended				Nine Months Ended
		June 30,				June 30,
	Ref	2020		2019		2020		2019
Interest expense	(a)	$	(635)	$	(297)	$	(2,229)	$	(485)
Amortization of deferred financing costs	(b)	(178)		(265)		(551)		(799)
Other income (expense), net	(c)	—		—		121		—
Interest expense, net		$	(813)	$	(562)	$	(2,659)	$	(1,284)

Ref (a): Interest expense on borrowing

Ref (b): Amortization of expenses related to term loan and revolving line of credit

Ref (c): Gain on lease modification due to a lease amendment