Supporting Financial Information

Accounts receivable



		(in thousands)
		March 31,		September 30,
	Ref	2018		2017
Billed receivables		$	11,989	$	11,862
Unbilled receivables		349		49
Total accounts receivable		12,338		11,911
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	12,338	$	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 both March 31, 2018 and September 30, 2017.

Other current assets



		(in thousands)
		March 31,		September 30,
	Ref	2018		2017
Prepaid insurance and benefits		$	605	$	240
Other receivables and prepaid expenses		340		358
Other current assets		$	945	$	598

Equipment and improvements, net



		(in thousands)
		March 31,			September 30,
	Ref	2018			2017
Furniture and equipment		$	326		$	331
Computer equipment		810			715
Computer software	(a)	1,607			1,108
Leasehold improvements		66			66
Total fixed assets		2,809			2,220
Less accumulated depreciation and amortization		(1,014		)	(829		)
Equipment and improvements, net	(b)	$	1,795		$	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 March 31, 2018 and September 30, 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service effective 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 $119 thousand and $85 thousand for the three months ended March 31, 2018 and 2017 respectively and $185 thousand and $170 thousand for the six months ended March 31, 2018 and 2017 respectively.

Goodwill and Intangibles



		(in thousands)
		as of March 31, 2018
	Ref	Goodwill		Customer Relationships (a)			Non Compete Agreement (a)			Trade Name (a)			Total
Gross Balance at September 30, 2017		$	25,989	$	16,626		$	480		$	517		$	43,612
Accumulated amortization at September 30, 2017		—		(2,355		)	(68		)	(73		)	(2,496		)
Current period amortization		—		(831		)	(24		)	(26		)	(881		)
Total accumulated amortization		—		(3,186		)	(92		)	(99		)	(3,377		)
Net balance at March 31, 2018		$	25,989	$	13,440		$	388		$	418		$	40,235

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 March 31, 2018 and 2017, respectively.



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	5,436
	$	14,246

Accounts payable, accrued expenses and other current liabilities



		(in thousands)
		March 31,		September 30,
	Ref	2018		2017
Accounts payable		$	4,914	$	5,205
Accrued benefits		1,857		1,831
Accrued bonus and incentive compensation		1,029		1,544
Accrued workers compensation insurance		1,626		1,598
Other accrued expenses		510		717
Accounts payable, accrued expenses, and other current liabilities		$	9,936	$	10,895

Debt obligations



		(in thousands)
		March 31,			September 30,
	Ref	2018				2017
Bank term loan	(a)	$	14,896			$	19,688
Less unamortized debt issuance costs		(823		)		(961		)
Net bank debt obligation		14,073				18,727
Less current portion of bank debt obligations		(3,622		)		(6,518		)
Long term portion of bank debt obligation		$	10,451			$	12,209



Ref (a): Maturity of the bank debt obligation as follows, in thousands:
Year 1	$	3,750
Year 2	3,750
Year 3	3,750
Year 4	3,646
Total bank debt obligation	$	14,896

Interest expense



		(in thousands)						(in thousands)
		Three Months Ended						Six Months Ended
		March 31,						March 31,
	Ref	2018			2017			2018			2017
Interest expense	(a)	$	(208	)	$	(215	)	$	(427	)	$	(440	)
Amortization of debt financing costs as interest expense	(b)	(67		)	(67		)	(132		)	(127		)
Change in fair value of derivative financial instruments		—			27			—			(52		)
Other income (expense), net		14						20			—
Interest expense, net		$	(261	)	(255		)	$	(539	)	$	(619	)

Ref (a): Interest expense on borrowing

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