Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Feb. 14, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GENERAL EMPLOYMENT ENTERPRISES INC | ' |
Entity Central Index Key | '0000040570 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 22,799,675 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $74 | $361 |
Accounts receivable, less allowances (December - $296; September - $272) | 6,159 | 6,697 |
Other current assets | 337 | 416 |
Assets of discontinued operations, less allowances (December and September -$35) | 234 | 238 |
Total current assets | 6,804 | 7,712 |
Property and equipment, net | 505 | 530 |
Goodwill | 1,106 | 1,106 |
Intangible assets, net | 1,803 | 1,884 |
TOTAL ASSETS | 10,218 | 11,232 |
CURRENT LIABILITIES: | ' | ' |
Short-term debt | 4,110 | 3,734 |
Accounts payable | 595 | 1,015 |
Accrued compensation | 2,389 | 2,733 |
Other current liabilities | 650 | 981 |
Liabilities from discontinued operations | 5 | 30 |
Total current liabilities | 7,749 | 8,493 |
Long-term liabilities | 81 | 126 |
Commitments and contingencies | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred stock; no par value; authorized - 20,000 shares; issued and outstanding - none | 0 | 0 |
Common stock, no-par value; authorized - 200,000 shares; issued and outstanding - 22,799 shares at December 31, 2013 and September 30, 2013 | 10,853 | 10,851 |
Accumulated deficit | -8,465 | -8,238 |
Total shareholders' equity | 2,388 | 2,613 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $10,218 | $11,232 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
Share data in Thousands, except Per Share data, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Accounts receivable, allowances | $296,000 | $272,000 |
Assets of discontinued operations, allowances | $35,000 | $35,000 |
SHAREHOLDERS' EQUITY | ' | ' |
Preferred Stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, share authorized (in shares) | 20,000 | 20,000 |
Preferred stock, share issued (in shares) | 0 | 0 |
Preferred stock, share outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 22,799 | 22,799 |
Common stock, shares outstanding (in shares) | 22,799 | 22,799 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
NET REVENUES: | ' | ' |
Contract staffing services | $9,069 | $10,861 |
Direct hire placement services | 1,738 | 2,156 |
NET REVENUES | 10,807 | 13,017 |
Cost of contract services | 7,612 | 8,884 |
Selling, general and administrative expenses | 3,221 | 3,782 |
Amortization of intangible assets | 81 | 79 |
INCOME (LOSS) FROM OPERATIONS | -107 | 272 |
Interest expense | -120 | -70 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION | -227 | 202 |
Provision for income tax | 0 | 0 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | -227 | 202 |
Loss from discontinued operations | 0 | -16 |
NET INCOME (LOSS) | ($227) | $186 |
BASIC INCOME (LOSS) PER SHARE | ' | ' |
From continuing operations (in dollars per share) | ($0.01) | $0.01 |
From discontinued operations (in dollars per share) | $0 | $0 |
Total income (loss) per share | ($0.01) | $0.01 |
DILUTED INCOME (LOSS) PER SHARE | ' | ' |
From continuing operations (in dollars per share) | ($0.01) | $0.01 |
From discontinued operations (in dollars per share) | $0 | $0 |
Total income (loss) per share | ($0.01) | $0.01 |
WEIGHTED AVERAGE NUMBER OF SHARES - BASIC (in shares) | 22,799 | 21,699 |
WEIGHTED AVERAGE NUMBER OF SHARES - DILUTED (in shares) | 22,799 | 22,107 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) (USD $) | Common Stock [Member] | Accumulated Deficit [Member] | Total |
In Thousands | |||
Balance at Sep. 30, 2012 | $10,453 | ($6,348) | $4,105 |
Balance (in shares) at Sep. 30, 2012 | 21,699 | ' | ' |
Issuance of common stock | 330 | 0 | 330 |
Issuance of common stock (in shares) | 1,100 | ' | ' |
Stock compensation expense | 68 | 0 | 68 |
Net loss | 0 | -1,890 | -1,890 |
Balance at Sep. 30, 2013 | 10,851 | -8,238 | 2,613 |
Balance (in shares) at Sep. 30, 2013 | 22,799 | ' | 22,799 |
Stock compensation expense | 2 | 0 | 2 |
Net loss | 0 | -227 | -227 |
Balance at Dec. 31, 2013 | $10,853 | ($8,465) | $2,388 |
Balance (in shares) at Dec. 31, 2013 | 22,799 | ' | 22,799 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income (loss) | ($227) | $186 |
Loss from discontinued operations | 0 | -16 |
Net income (loss) from continuing operations | -227 | 202 |
Adjustments to reconcile net income (loss) from continuing operations to cash used in operating activities: | ' | ' |
Depreciation and amortization | 125 | 121 |
Stock compensation expense | 2 | 2 |
Provision for doubtful accounts | 44 | 32 |
Loss on abandonment of leasehold improvements | 44 | 0 |
Changes in operating assets and liabilities - | ' | ' |
Accounts receivable | 494 | -825 |
Accounts payable | -420 | -52 |
Accrued compensation | -344 | -166 |
Other current items, net | -177 | 50 |
Long-term liabilities | -45 | -62 |
Net cash used in operating activities - Continuing Operations | -504 | -698 |
Net cash used in operating activities - Discontinued Operations | -21 | -23 |
Net cash used in operating activities | -525 | -721 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Acquisition of property and equipment | -51 | -87 |
Partial payment of earn-out | -75 | 0 |
Net cash used in investing activities - Continuing Operations | -126 | -87 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from short-term debt, net | 376 | 691 |
Payments on capital lease | -12 | 0 |
Net cash provided by financing activities - Continuing Operations | 364 | 691 |
Net change in cash - Continuing Operations | -266 | -94 |
Net change in cash - Discontinued Operations | -21 | -23 |
Cash at beginning of year - Continuing Operations | 361 | 364 |
Cash at end of year | 74 | 247 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Cash paid for interest | 101 | 60 |
Cash paid for taxes | $0 | $0 |
Description_of_Business
Description of Business | 3 Months Ended |
Dec. 31, 2013 | |
Description of Business [Abstract] | ' |
Description of Business | ' |
1. Description of Business | |
General Employment Enterprises, Inc. (the “Company,” “we,” “our” or “us”) provides staffing services through a network of branch offices located in major metropolitan areas throughout the United States. The Company’s professional staffing services provide information technology, engineering and accounting professionals to clients on either a regular placement basis or a temporary contract basis. The Company’s agricultural staffing services provided agricultural workers for farms and groves, until July 7, 2013, when the Company ceased operations within its Agricultural Division, terminated all the division’s employees and began the process of liquidating all assets of this division. The Company’s industrial staffing business provides weekly temporary staffing for light industrial clients in Ohio and Pennsylvania. | |
Significant_Accounting_Policie
Significant Accounting Policies and Estimates | 3 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies and Estimates [Abstract] | ' |
Significant Accounting Policies and Estimates | ' |
2. Significant Accounting Policies and Estimates | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three month periods ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ending September 30, 2014. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2013. | |
Liquidity | |
In recent years, the Company has incurred significant losses and negative cash flows from operations. Management has implemented a strategy which included cost reduction efforts as well as identifying strategic acquisitions to be financed primarily through the issuance of common stock, and to improve the overall profitability and cash flows of the Company. Management believes with future cash flow from operations and the availability under the Keltic Credit Facility, the Company will have sufficient liquidity for the next 12 months. The Company entered into a three year revolving credit agreement with Keltic Financial Partners II, LLP (“Keltic”) to provide working capital financing. | |
The Company is currently in a continuing default under the terms of their line of credit agreement (See Note 6). Keltic has the ability to terminate the lending obligations under the agreement until this continuing default is cured. As of the date of this report, Keltic continues to lend the Company funds, in the normal course of business under the agreement, without an increase in the rate of interest or any other changes. Management will continue to work with Keltic to obtain the proper waivers and amendments to the agreement to ensure normal operations are not interrupted, however if management is not able to reasonably negotiate terms with Keltic, the Company could be required to obtain alternative financing. | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation. | |
Estimates and Assumptions | |
Management makes estimates and assumptions that can affect the amounts of assets and liabilities reported as of the date of the condensed consolidated financial statements, as well as the amounts of reported revenues and expenses during the periods presented. Those estimates and assumptions typically involve expectations about events to occur subsequent to the balance sheet date, and it is possible that actual results could ultimately differ from the estimates. If differences were to occur in a subsequent period, the Company would recognize those differences when they became known. Significant matters requiring the use of estimates and assumptions include, but may not be limited to, deferred income tax valuation allowances, accounts receivable allowances, accounting for acquisitions and evaluation of impairment. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. | |
Revenue Recognition | |
Direct hire placement service revenues are recognized when applicants accept offers of employment, less a provision for estimated losses due to applicants not remaining employed for the Company’s guarantee period. Contract staffing service revenues are recognized when services are rendered. | |
Falloffs and refunds during the period are reflected in the consolidated statements of operations as a reduction of placement service revenues. Based on management’s review of open guarantees and accounts receivables, an allowance is also recorded at the end of each period as an offset to placement service revenues. As of December 31, 2013 and September 30, 2013, a provision of approximately $104,000 and $90,000 is considered necessary, respectively. | |
Cost of Contract Staffing Services | |
The cost of contract services includes the wages and the related payroll taxes and employee benefits of the Company’s employees while they work on contract assignments. | |
Income Taxes | |
We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. | |
Due to the private sale of shares of common stock to LEED HR during fiscal 2012 and the resulting change in control, the Company may be limited by Section 382 of the Internal Revenue Code as to the amount of net operating losses that may be used in future years. | |
We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. | |
Discontinued operations | |
A discontinued operation is a component of an entity that has either been disposed of, or that is classified as held for sale, which represents a separate major line of business or geographical area of operations and is part of a single coordinated plan to dispose of a separate line of business or geographical area of operations. In accordance with the rules regarding the presentation of discontinued operations, the assets, liabilities and activity of our agricultural business have been reclassified as a discontinued operation for all periods presented. | |
Cash and Cash Equivalents | |
Highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. At December 31, 2013 and September 30, 2013, there were no cash equivalents. The Company maintains deposits in financial institutions in excess of amounts guaranteed by the Federal Deposit Insurance Corporation. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. | |
Accounts Receivable | |
The Company extends credit to its various customers based on evaluation of the customer’s financial condition and ability to pay the Company in accordance with the payment terms. An allowance for placement fall-offs is recorded, as a reduction of revenues, for estimated losses due to applicants not remaining employed for the Company’s guarantee period. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect management’s estimate of the potential losses inherent in the accounts receivable balances, based on historical loss statistics and known factors impacting its customers. The nature of the contract service business, where companies are dependent on employees for the production cycle allows for a small accounts receivable allowance. Based on management’s review of accounts receivable, an allowance for doubtful accounts of approximately $296,000 and $272,000 is considered necessary as of December 31, 2013 and September 30, 2013, respectively. The Company charges uncollectible accounts against the allowance once the invoices are deemed unlikely to be collectible. Based on management’s review of accounts receivables related to discontinued operations, an allowance of approximately $35,000 is considered necessary as of December 31, 2013. | |
Property and Equipment | |
Property and equipment are recorded at cost. Depreciation expense is calculated on a straight-line basis over estimated useful lives of five years for computer equipment and two to ten years for office equipment, furniture and fixtures. The Company capitalizes computer software purchased or developed for internal use and amortizes it over an estimated useful life of five years. The carrying value of property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that it may not be recoverable. If the carrying amount of an asset group is greater than its estimated future undiscounted cash flows, the carrying value is written down to the estimated fair value. There was no impairment of property and equipment for the three month periods ended December 31, 2013 and 2012. For property and equipment included in current assets of discontinued operations in the accompanying balance sheet, the Company has ceased recording depreciation expense. | |
Goodwill | |
Goodwill represents the excess of cost over the fair value of the net assets acquired in our acquisitions. The Company assesses goodwill for impairment at least annually. The Company adopted, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment, which allows the Company to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the entity determines that this threshold is not met, then performing the two-step impairment test is unnecessary. An impairment loss would be recognized to the extent the carrying value of goodwill exceeds its implied fair value. | |
Fair Value Measurement | |
The Company follows the provisions of the accounting standard which defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under these provisions, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. | |
The standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: | |
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |
The fair value of the Company’s current assets and current liabilities approximate their carrying values due to their short term nature. The carrying value of the Company’s long-term liabilities represents their fair value based on level 3 inputs. The Company’s goodwill and other intangible assets are measured at fair value on a non-recurring basis using level 3 inputs. | |
Intangible Assets | |
Customer lists, non-compete agreements, customer relationships, management agreements and trade names were recorded at their estimated fair value at the date of acquisition and are amortized over their estimated useful lives ranging from two to ten years using both accelerated and straight-line methods. | |
Earnings (loss) per share | |
Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted income (loss) per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were no common share equivalents for the three months ended December 31, 2013. | |
Advertising Expenses | |
The majority of the Company’s advertising expense budget is used to support the Company’s business. Most of the advertisements are in print or internet media, with expenses recorded as they are incurred. For the three months ended December 31, 2013 and 2012, included in selling, general and administrative expenses was advertising expense totaling approximately $162,000 and $184,000, respectively. | |
Impairment of Long-lived Assets | |
The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. | |
Stock-Based Compensation | |
Compensation expense is recorded for the fair value of stock options issued to directors and employees. The expense is measured as the estimated fair value of the stock options on the date of grant and is recorded over the vesting periods. | |
Segment Data | |
The Company has two operating business segments a) Contract staffing services, and b) Direct hire placement services. These operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Other factors, including type of business, type of employee, length of employment and revenue recognition are considered in determining these operating segments. | |
Reclassification | |
Certain reclassifications have been made to the financial statements for the three months ended December 31, 2012 to conform to the current year presentation. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2013 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
3. Recent Accounting Pronouncements | |
Recent accounting pronouncements issued by FASB and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property and Equipment [Abstract] | ' | |||||||||
Property and Equipment | ' | |||||||||
4. Property and Equipment | ||||||||||
Property and equipment, net consisted of the following: | ||||||||||
Useful Lives | December 31, | September 30, | ||||||||
(In thousands) | 2013 | 2013 | ||||||||
Computer software | 5 years | $ | 1,447 | $ | 1,447 | |||||
Office equipment, furniture and fixtures and leasehold improvements | 2 to 10 years | 2,113 | 2,325 | |||||||
Total property and equipment, at cost | 3,560 | 3,772 | ||||||||
Accumulated depreciation and amortization | (3,055 | ) | (3,242 | ) | ||||||
Property and equipment, net | $ | 505 | $ | 530 | ||||||
Leasehold improvements are amortized over the term of the lease. | ||||||||||
During the year ended September 30, 2013, the Company sold vehicles with a value of approximately $225,000 and leased them back under a 30 month agreement at an interest rate of approximately 23%. At December 31, 2013, approximately $72,000 is current and included in other current liabilities and approximately $81,000 is included in other long term liabilities. The terms are 30 months and the payments remaining totaled approximately $153,000 at December 31, 2013. | ||||||||||
Depreciation expense for the three month periods ended December 31, 2013 and 2012 was approximately $44,000 and $42,000, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | ||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||
5. Goodwill and Intangible Assets | |||||||||||||||||
Goodwill | |||||||||||||||||
Goodwill represents the excess of cost over the fair value of the net assets acquired from various acquisitions. Goodwill is not amortized. The Company performs a goodwill impairment test annually, by reporting unit, in the fourth quarter of the fiscal year, or whenever potential impairment triggers occur. Should the two-step process be necessary, the first step of the impairment test identifies potential impairment by comparing the fair value of a reporting unit to its carrying value including goodwill. In applying a fair-value-based test, estimates are made of the expected future cash flows to be derived from the reporting unit. Similar to the review for impairment of other long-lived assets, the resulting fair value determination is significantly impacted by estimates of future margins, capital needs, economic trends and other factors. If the carrying value of the reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. The second step of the impairment test compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. An impairment loss would be recognized to the extent the carrying value of goodwill exceeds its implied fair value. There was no impairment recorded during the three month periods ended December 31, 2013 and 2012. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
( In Thousands) | Cost | Accumulated | Loss on impairment | Net | |||||||||||||
Amortization | of Intangible assets | Book Value | |||||||||||||||
Customer Relationships | $ | 2,690 | $ | 897 | $ | - | $ | 1,793 | |||||||||
Trade Name | 17 | 7 | - | 10 | |||||||||||||
$ | 2,707 | $ | 904 | $ | - | $ | 1,803 | ||||||||||
As of September 30, 2013 | |||||||||||||||||
(In Thousands) | Cost | Accumulated | Loss on impairment | Net | |||||||||||||
Amortization | of Intangible assets | Book Value | |||||||||||||||
Customer Relationships | $ | 2,690 | $ | 816 | $ | - | $ | 1,874 | |||||||||
Trade Name | 17 | 7 | - | 10 | |||||||||||||
$ | 2,707 | $ | 823 | $ | - | $ | 1,884 | ||||||||||
Amortization expense was approximately $81,000 for the three months ended December 31, 2013 and $79,000 for the three months ended December 31, 2012. | |||||||||||||||||
The trade names are amortized on a straight – line basis over the estimated useful life of five years. Customer relationships are amortized based on the future undiscounted cash flows over estimated remaining useful lives of three to ten years. Over the next five years, annual amortization expense for these finite life intangible assets will be approximately $320,000 in 2014, $320,000 in 2015, $320,000 in 2016, $320,000 in 2017 and $320,000 in 2018 and $200,000 thereafter. | |||||||||||||||||
Long-lived assets, such as purchased intangibles subject to amortization, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company regularly evaluates whether events and circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. | |||||||||||||||||
During the three month periods ended December 31, 2013 and 2012, the Company did not record any impairment of intangible assets. | |||||||||||||||||
During the year ended September 30, 2013, the Company did not record any impairment of intangible assets. |
Shortterm_Debt
Short-term Debt | 3 Months Ended |
Dec. 31, 2013 | |
Short-term Debt [Abstract] | ' |
Short-term Debt | ' |
6. Short-term Debt | |
On September 27, 2013, the Company entered into agreements with Keltic Financial Partners II LP ("Keltic") that provide the Company with long term financing through a six million dollar ($6,000,000) secured revolving note (the "Note"). The Note has a term of three years and has no amortization prior to maturity. The interest rate for the Note is a fluctuating rate that, when annualized, is equal to the greatest of (A) the Prime Rate plus three and one quarter percent (3.25%), (B) the LIBOR Rate plus six and one quarter percent (6.25%), and (C) six and one half percent (6.50%), with the interest paid on a monthly basis. Loan advances pursuant to the Note are based on the accounts receivable balance and other assets. Upon execution of the Note, approximately three million fifty thousand dollars ($3,050,000) was advanced for the full repayment of the AR Credit Facility and fees from Wells Fargo related to the early termination thereof. At the time of close, there was approximately nine hundred thousand ($900,000) of availability under the new Note in excess of amounts paid to extinguish the debt and fees with Wells Fargo. The Company incured certain cash expense and commitment fees related to obtaining the agreement of approximately $170,000, which has been paid prior to the closing of the Note or will be paid over the next six months. The Note is secured by all of the Company's property and assets, whether real or personal, tangible or intangible, and whether now owned or hereafter acquired, or in which it now has or at any time in the future may acquire any right, title or interests. The Keltic facility includes certain covenants which require compliance until termination of the agreement. As of the date of this report, the Company was not in compliance with all such covenants. | |
The Company has several administrative covenants and the following financial covenant: | |
The Company must maintain the following EBITDA: | |
(a) The Fiscal Quarter ending on December 31, 2013, to be no less than Three Hundred Seventy Thousand and 00/100 Dollars ($370,000.00); | |
(b) The six (6) consecutive calendar month period ending on March 31, 2014, to be no less than Seven Hundred Fifteen Thousand and 00/100 Dollars ($715,000.00); | |
(c) The nine (9) consecutive calendar month period ending on June 30, 2014, to be no less than One Million One Hundred Thirty Thousand and 00/100 Dollars ($1,130,000.00); | |
(d) The Fiscal Year ending on September 30, 2014, to be no less than One Million Three Hundred Thousand and 00/100 Dollars ($1,300,000.00); and | |
(e) For any period commencing on or after October 1, 2014, no less than such amounts as are established by Lender for such period based on the annual financial projections including such period delivered by Borrower pursuant the agreement. | |
Borrower acknowledges and agrees that the above EBITDA covenant levels, and Lender's adjustment in accordance with the preceding sentence, have been established by Lender based on Borrower's operations as conducted on the Effective Date, and that any material change to such operations, whether by Strategic Acquisition or otherwise, will necessitate an adjustment by Lender of the above EBITDA covenant levels, and that Lender will make such adjustments in Lender's permitted discretion. | |
The agreement includes certain covenants which require compliance until termination of the agreement. As of the date of this report, the Company was not in compliance with all such covenants and as a result, Keltic has the following remedies for the continued default: | |
(a) Termination of Lending Obligations. Upon the occurrence and during the continuation of an Event of Default, Lender may, in Lender's sole discretion (i) terminate any or all Loans and correspondingly terminate its obligations to otherwise lend to or extend credit to Borrower under this Agreement, under any Note and/or any other Loan Document, without prior notice to Borrower, and/or (ii) increase the amount of interest payable on any Loan to the applicable Default Rate, and/or (iii) increase all fees payable to Borrower under this Agreement that may be increased upon the occurrence of an Event of Default pursuant to the terms of this Agreement, and/or (iv) demand payment in full of all or any portion of the Obligations or any Note (whether or not payable on demand prior to such Event of Default), and/or (v) take all other and further actions and avail itself of any and all rights and remedies available to Lender under this Agreement, any other Loan Document, under law or in equity. | |
(b) Obligations Immediately Due. Notwithstanding the provisions immediately above, upon the occurrence of any Event of Default, without notice, demand or other action by Lender (i) all of Borrower's Obligations to Lender shall immediately become due and payable whether or not payable on demand prior to such Event of Default, and (ii) all interest payable on the Obligations shall increase to the applicable Default Rate, and (iii) all fees payable to Borrower under this Agreement that may be increased upon the occurrence of an Event of Default shall increase to their applicable amount after an Event of Default, and (iv) Lender may take all other and further actions and avail itself of any and all rights and remedies available to Lender under this Agreement, any other Loan Document, under law or in equity. | |
The Company continues to negotiate with Keltic for a waiver of certain covenants and the amendment of certain covenants. As of the date of this report, Keltic continues to lend the Company funds in the normal course of business under the agreement, and without an increase in the rate of interest or any other changes. Management will continue to work with Keltic to obtain the proper waivers and amendments to the agreement to ensure normal operations are not interrupted, however if management is not able to reasonably negotiate terms with Keltic, the Company could be required to obtain alternative financing. | |
As of December 31, 2013, the outstanding borrowings, which are classified as short-term debt on the consolidated balance sheet, were approximately $4,110,000. As of December 31, 2013, the availability under the Keltic facility was approximately $38,000. | |
The Company entered into a two-year, $4,500,000 account purchase agreement (“AR Credit Facility”) with Wells Fargo Bank N.A. (“Wells Fargo”) which has been subsequently amended. The AR Credit Facility as amended, provided for borrowings, on a revolving basis, of up to 85% of the Company’s eligible accounts receivable less than 90 days old and bears interest at a rate equal to the three month LIBOR (minimum of 0.5%) plus 5.25% (effective rate). Under the terms and subject to the conditions in the agreement, Wells Fargo could determine which receivables are eligible receivables, could determine the amount advanced on any such receivables, and could require the Company to repay advances made on receivables and thereby repay amounts outstanding under the AR Credit Facility on demand. Wells Fargo also had the right to require the Company to repurchase receivables that remained outstanding 90 days past their invoice date. The Company continued to be responsible for the servicing and administration of the receivables purchased and carried the receivables and any outstanding borrowings on its consolidated balance sheet. The Company paid off the entire outstanding balance of the Wells Fargo credit facility as of September 27, 2013. | |
Total interest expense related to the lines of credit for the three months ended December 31, 2013, and 2012 approximated $73,000 and $45,000, respectively. |
Accrued_compensation
Accrued compensation | 3 Months Ended |
Dec. 31, 2013 | |
Accrued compensation [Abstract] | ' |
Accrued compensation | ' |
7. Accrued compensation | |
In connection with the completion of the sale of shares of common stock to PSQ in fiscal year 2009, the Company’s then Chairman, Chief Executive Officer and President (the “former CEO”) retired from those positions and his employment agreement with the Company was replaced by a new consulting agreement. On January 31, 2013, he retired from all positions with the Company, however he will continue to receive his monthly payments required under his consulting agreement. As of December 31, 2013, $105,000 remains payable under this agreement and is include in accrued compensation. |
Contingencies_and_Commitments
Contingencies and Commitments | 3 Months Ended |
Dec. 31, 2013 | |
Contingencies and Commitments [Abstract] | ' |
Contingencies and Commitments | ' |
8. Contingencies and Commitments | |
On April 22, 2013, the Company finalized an Amendment to the Asset Purchase Agreement by and among DMCC Staffing, LLC, an Ohio limited liability company, RFFG of Cleveland, LLC an Ohio limited liability company (each a “Seller” and together, “Sellers”), the Company, and Triad Personnel Services, Inc., an Illinois corporation and wholly owned subsidiary of the Company (“Buyer”). | |
The Company agreed to pay Sellers additional cash consideration of between $550,000 and $650,000 depending on the length of payments and 1,100,000 shares of common stock, in full satisfaction of all amounts owed to Seller, related to the Asset Purchase Agreement. The Company issued 1,100,000 shares of common stock on July 2, 2013, which was valued at approximately $330,000. The Company elected to pay the cash amount due over two years. To date, the Company paid $275,000 of the cash consideration noted above. The Company has approximately $295,000 recorded in other current liabilities on the condensed consolidated balance sheet at December 31, 2013. There was approximately $20,000 of interest recorded for the three month period ended December 31, 2013. | |
During the year ended September 31, 2013, the Company sold vehicles with a value of approximately $225,000 and leased them back under a 30 month agreement at an interest rate of approximately 23%. At December 31, 2013, approximately $72,000 is included in other current liabilities and approximately $81,000 in other long term liabilities. The terms are 30 months and the payments remaining totaled approximately $153,000 at December 31, 2013. | |
Lease | |
The Company leases space for all of its branch offices, which are located either in downtown or suburban business centers, and for its corporate headquarters. Branch offices are generally leased over periods from three to five years. The corporate office lease expires in 2015. The leases generally provide for payment of basic rent plus a share of building real estate taxes, maintenance costs and utilities. | |
Rent expense was $237,000 and $277,000 for the three month periods ended December 31, 2013 and December 31, 2012, respectively. As of December 31, 2013, future minimum lease payments due under non-cancelable lease agreements having initial terms in excess of one year, including certain closed offices, totaled approximately $1,875,000, as follows: fiscal 2014 - $793,000, fiscal 2015 - $551,000, fiscal 2016 - $289,000, fiscal 2017 - $159,000 and thereafter - $83,000. | |
Subsequent to December 31, 2013, the Company is negotiating a final termination agreement with the owners of the Oak Brook facility, our former headquarters. The anticipated terms of the agreement require the Company to pay a termination fee of $125,000. $100,000 will be paid upon execution of the termination agreement and an additional $25,000 will be paid within 30 days of the agreement. At December 31, 2013, the Company has accrued the $125,000 in other current liabilities. |
Segment_Data
Segment Data | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Data [Abstract] | ' | ||||||||
Segment Data | ' | ||||||||
9. Segment Data | |||||||||
As a result of the acquisition of certain of the assets of DMCC and RFFG of Cleveland the Company’s internal reporting was adjusted and as a result, the Company re-assessed its segment presentation. | |||||||||
The Company provides the following distinctive services: (a) direct hire placement services, (b) temporary professional services staffing in the fields of information technology, engineering, and accounting, and (c) temporary light industrial staffing. Intersegment net service revenues are not significant. Revenues generated from the temporary professional services staffing and light industrial staffing are classified as contract staffing services revenues in the statements of operations. Selling, general and administrative expenses are not separately allocated among agricultural, professional services or industrial staffing services within the contract staffing services sector for internal reporting purposes. | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
(In Thousands) | 2013 | 2012 | |||||||
Direct Hire Placement Services | |||||||||
Revenue - net | $ | 1,738 | $ | 2,156 | |||||
Placement services gross margin | 100 | % | 100 | % | |||||
Operating loss | (313 | ) | (273 | ) | |||||
Depreciation & amortization | 59 | 56 | |||||||
Accounts receivable – net | 679 | 1,137 | |||||||
Intangible assets - net | 317 | 435 | |||||||
Goodwill | 24 | 24 | |||||||
Total assets | 4,367 | 2,869 | |||||||
Contract Staffing Services | |||||||||
Industrial services revenue – net | 6,893 | 8,376 | |||||||
Professional services revenue – net | 2,176 | 2,485 | |||||||
Industrial services gross margin | 12.9 | % | 13.2 | % | |||||
Professional services gross margin | 31.9 | % | 34.9 | % | |||||
Operating income | 206 | 545 | |||||||
Depreciation and amortization | 66 | 65 | |||||||
Accounts receivable net – industrial services | 4,624 | 4,745 | |||||||
Accounts receivable net – professional services | 856 | 1,075 | |||||||
Intangible assets - net | 1,486 | 1,690 | |||||||
Goodwill | 1,082 | 1,082 | |||||||
Total assets | 5,617 | 8,345 | |||||||
Consolidated | |||||||||
Revenue -net | 10,807 | 13,017 | |||||||
Operating income | (107 | ) | 272 | ||||||
Depreciation and amortization | 125 | 121 | |||||||
Total accounts receivable – net | 6,159 | 6,957 | |||||||
Intangible assets – net | 1,803 | 2,125 | |||||||
Goodwill | 1,106 | 1,106 | |||||||
Assets from continuing operations | 9,984 | 11,214 | |||||||
Assets from discontinued operations | 234 | 654 | |||||||
Total assets | $ | 10,218 | $ | 11,868 |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
10. Discontinued Operations | |||||||||
As of July 7, 2013, the Board of Directors of General Employment Enterprises, Inc. determined that the best course of action related to the Agricultural Division was to terminate operations and to liquidate the Division’s assets and to focus the business on the light industrial and professional divisions. On July 7, 2013, all staffing was discontinued and the entire operations of the Agricultural Division were discontinued as of August 1, 2013. All employees have been terminated and an expense of approximately $100,000 was recognized as of June 30, 2013. | |||||||||
Three Months Ended | |||||||||
December, | |||||||||
(In Thousands) | 2013 | 2012 | |||||||
Discontinued Operations | |||||||||
Agricultural services revenue – net | $ | - | $ | 1,626 | |||||
Agricultural services gross margin | 0 | % | 4.5 | % | |||||
Agricultural services net loss | - | (16 | ) | ||||||
Accounts receivable net – Agricultural services | $ | 234 | $ | 654 | |||||
A Fixed assets – Agricultural services | - | ||||||||
Total assets – Agricultural services | $ | 234 | $ | 654 | |||||
Total liabilities – Agricultural services | $ | 5 | $ | 33 | |||||
The Company will continue to pay the former head of the Agricultural Division for a period of six months and sell him the property and equipment for approximately $9,000. The Company expects to collect the receivables over a period of the next three to nine months. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
11. Subsequent Events | |
In January, 2014 the Company’s board of directors approved granting approximately 1,400,000 options to a director, management and various employees. The exercise prices ranged from $0.20 to $0.25 with a life of ten years and an average vesting period of three years. | |
In January of 2014, the Company entered into a consulting agreement with American Ventures. The terms of the agreement included a payment of 100,000 common shares of the Company’s stock, which are earned over the initial six month contractual period. As of the issuance of this report, these 100,000 shares have not been issued to American Ventures. | |
Significant_Accounting_Policie1
Significant Accounting Policies and Estimates (Policies) | 3 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies and Estimates [Abstract] | ' |
Liquidity | ' |
Liquidity | |
In recent years, the Company has incurred significant losses and negative cash flows from operations. Management has implemented a strategy which included cost reduction efforts as well as identifying strategic acquisitions to be financed primarily through the issuance of common stock, and to improve the overall profitability and cash flows of the Company. Management believes with future cash flow from operations and the availability under the Keltic Credit Facility, the Company will have sufficient liquidity for the next 12 months. The Company entered into a three year revolving credit agreement with Keltic Financial Partners II, LLP (“Keltic”) to provide working capital financing. | |
The Company is currently in a continuing default under the terms of their line of credit agreement (See Note 6). Keltic has the ability to terminate the lending obligations under the agreement until this continuing default is cured. As of the date of this report, Keltic continues to lend the Company funds, in the normal course of business under the agreement, without an increase in the rate of interest or any other changes. Management will continue to work with Keltic to obtain the proper waivers and amendments to the agreement to ensure normal operations are not interrupted, however if management is not able to reasonably negotiate terms with Keltic, the Company could be required to obtain alternative financing. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant inter-company accounts and transactions are eliminated in consolidation. | |
Estimates and Assumptions | ' |
Estimates and Assumptions | |
Management makes estimates and assumptions that can affect the amounts of assets and liabilities reported as of the date of the condensed consolidated financial statements, as well as the amounts of reported revenues and expenses during the periods presented. Those estimates and assumptions typically involve expectations about events to occur subsequent to the balance sheet date, and it is possible that actual results could ultimately differ from the estimates. If differences were to occur in a subsequent period, the Company would recognize those differences when they became known. Significant matters requiring the use of estimates and assumptions include, but may not be limited to, deferred income tax valuation allowances, accounts receivable allowances, accounting for acquisitions and evaluation of impairment. Management believes that its estimates and assumptions are reasonable, based on information that is available at the time they are made. | |
Revenue Recognition | ' |
Revenue Recognition | |
Direct hire placement service revenues are recognized when applicants accept offers of employment, less a provision for estimated losses due to applicants not remaining employed for the Company’s guarantee period. Contract staffing service revenues are recognized when services are rendered. | |
Falloffs and refunds during the period are reflected in the consolidated statements of operations as a reduction of placement service revenues. Based on management’s review of open guarantees and accounts receivables, an allowance is also recorded at the end of each period as an offset to placement service revenues. As of December 31, 2013 and September 30, 2013, a provision of approximately $104,000 and $90,000 is considered necessary, respectively. | |
Cost of Contract Staffing Services | ' |
Cost of Contract Staffing Services | |
The cost of contract services includes the wages and the related payroll taxes and employee benefits of the Company’s employees while they work on contract assignments. | |
Income Taxes | ' |
Income Taxes | |
We record a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities, as well as for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. | |
Due to the private sale of shares of common stock to LEED HR during fiscal 2012 and the resulting change in control, the Company may be limited by Section 382 of the Internal Revenue Code as to the amount of net operating losses that may be used in future years. | |
We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on our financial condition and operating results. | |
Discontinued operations | ' |
Discontinued operations | |
A discontinued operation is a component of an entity that has either been disposed of, or that is classified as held for sale, which represents a separate major line of business or geographical area of operations and is part of a single coordinated plan to dispose of a separate line of business or geographical area of operations. In accordance with the rules regarding the presentation of discontinued operations, the assets, liabilities and activity of our agricultural business have been reclassified as a discontinued operation for all periods presented. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. At December 31, 2013 and September 30, 2013, there were no cash equivalents. The Company maintains deposits in financial institutions in excess of amounts guaranteed by the Federal Deposit Insurance Corporation. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. | |
Accounts Receivable | ' |
Accounts Receivable | |
The Company extends credit to its various customers based on evaluation of the customer’s financial condition and ability to pay the Company in accordance with the payment terms. An allowance for placement fall-offs is recorded, as a reduction of revenues, for estimated losses due to applicants not remaining employed for the Company’s guarantee period. An allowance for doubtful accounts is recorded, as a charge to bad debt expense, where collection is considered to be doubtful due to credit issues. These allowances together reflect management’s estimate of the potential losses inherent in the accounts receivable balances, based on historical loss statistics and known factors impacting its customers. The nature of the contract service business, where companies are dependent on employees for the production cycle allows for a small accounts receivable allowance. Based on management’s review of accounts receivable, an allowance for doubtful accounts of approximately $296,000 and $272,000 is considered necessary as of December 31, 2013 and September 30, 2013, respectively. The Company charges uncollectible accounts against the allowance once the invoices are deemed unlikely to be collectible. Based on management’s review of accounts receivables related to discontinued operations, an allowance of approximately $35,000 is considered necessary as of December 31, 2013. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are recorded at cost. Depreciation expense is calculated on a straight-line basis over estimated useful lives of five years for computer equipment and two to ten years for office equipment, furniture and fixtures. The Company capitalizes computer software purchased or developed for internal use and amortizes it over an estimated useful life of five years. The carrying value of property and equipment is reviewed for impairment whenever events or changes in circumstances indicate that it may not be recoverable. If the carrying amount of an asset group is greater than its estimated future undiscounted cash flows, the carrying value is written down to the estimated fair value. There was no impairment of property and equipment for the three month periods ended December 31, 2013 and 2012. For property and equipment included in current assets of discontinued operations in the accompanying balance sheet, the Company has ceased recording depreciation expense. | |
Goodwill | ' |
Goodwill | |
Goodwill represents the excess of cost over the fair value of the net assets acquired in our acquisitions. The Company assesses goodwill for impairment at least annually. The Company adopted, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment, which allows the Company to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the entity determines that this threshold is not met, then performing the two-step impairment test is unnecessary. An impairment loss would be recognized to the extent the carrying value of goodwill exceeds its implied fair value. | |
Fair Value Measurement | ' |
Fair Value Measurement | |
The Company follows the provisions of the accounting standard which defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under these provisions, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. | |
The standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: | |
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |
The fair value of the Company’s current assets and current liabilities approximate their carrying values due to their short term nature. The carrying value of the Company’s long-term liabilities represents their fair value based on level 3 inputs. The Company’s goodwill and other intangible assets are measured at fair value on a non-recurring basis using level 3 inputs. | |
Intangible Assets | ' |
Intangible Assets | |
Customer lists, non-compete agreements, customer relationships, management agreements and trade names were recorded at their estimated fair value at the date of acquisition and are amortized over their estimated useful lives ranging from two to ten years using both accelerated and straight-line methods. | |
Earnings (loss) per share | ' |
Earnings (loss) per share | |
Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted income (loss) per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. There were no common share equivalents for the three months ended December 31, 2013. | |
Advertising Expenses | ' |
Advertising Expenses | |
The majority of the Company’s advertising expense budget is used to support the Company’s business. Most of the advertisements are in print or internet media, with expenses recorded as they are incurred. For the three months ended December 31, 2013 and 2012, included in selling, general and administrative expenses was advertising expense totaling approximately $162,000 and $184,000, respectively. | |
Impairment of Long-lived Assets | ' |
Impairment of Long-lived Assets | |
The Company records an impairment of long-lived assets used in operations, other than goodwill, when events or circumstances indicate that the asset might be impaired and the estimated undiscounted cash flows to be generated by those assets over their remaining lives are less than the carrying amount of those items. The net carrying value of assets not recoverable is reduced to fair value, which is typically calculated using the discounted cash flow method. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Compensation expense is recorded for the fair value of stock options issued to directors and employees. The expense is measured as the estimated fair value of the stock options on the date of grant and is recorded over the vesting periods. | |
Segment Data | ' |
Segment Data | |
The Company has two operating business segments a) Contract staffing services, and b) Direct hire placement services. These operating segments were determined based primarily on how the chief operating decision maker views and evaluates our operations. Operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Other factors, including type of business, type of employee, length of employment and revenue recognition are considered in determining these operating segments. | |
Reclassification | ' |
Reclassification | |
Certain reclassifications have been made to the financial statements for the three months ended December 31, 2012 to conform to the current year presentation. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property and Equipment [Abstract] | ' | |||||||||
Schedule of property and equipment | ' | |||||||||
Property and equipment, net consisted of the following: | ||||||||||
Useful Lives | December 31, | September 30, | ||||||||
(In thousands) | 2013 | 2013 | ||||||||
Computer software | 5 years | $ | 1,447 | $ | 1,447 | |||||
Office equipment, furniture and fixtures and leasehold improvements | 2 to 10 years | 2,113 | 2,325 | |||||||
Total property and equipment, at cost | 3,560 | 3,772 | ||||||||
Accumulated depreciation and amortization | (3,055 | ) | (3,242 | ) | ||||||
Property and equipment, net | $ | 505 | $ | 530 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | ||||||||||||||||
Schedule of finite-lived intangible assets | ' | ||||||||||||||||
Intangible Assets | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
( In Thousands) | Cost | Accumulated | Loss on impairment | Net | |||||||||||||
Amortization | of Intangible assets | Book Value | |||||||||||||||
Customer Relationships | $ | 2,690 | $ | 897 | $ | - | $ | 1,793 | |||||||||
Trade Name | 17 | 7 | - | 10 | |||||||||||||
$ | 2,707 | $ | 904 | $ | - | $ | 1,803 | ||||||||||
As of September 30, 2013 | |||||||||||||||||
(In Thousands) | Cost | Accumulated | Loss on impairment | Net | |||||||||||||
Amortization | of Intangible assets | Book Value | |||||||||||||||
Customer Relationships | $ | 2,690 | $ | 816 | $ | - | $ | 1,874 | |||||||||
Trade Name | 17 | 7 | - | 10 | |||||||||||||
$ | 2,707 | $ | 823 | $ | - | $ | 1,884 |
Segment_Data_Tables
Segment Data (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Data [Abstract] | ' | ||||||||
Schedule of segment reporting information | ' | ||||||||
The Company provides the following distinctive services: (a) direct hire placement services, (b) temporary professional services staffing in the fields of information technology, engineering, and accounting, and (c) temporary light industrial staffing. Intersegment net service revenues are not significant. Revenues generated from the temporary professional services staffing and light industrial staffing are classified as contract staffing services revenues in the statements of operations. Selling, general and administrative expenses are not separately allocated among agricultural, professional services or industrial staffing services within the contract staffing services sector for internal reporting purposes. | |||||||||
Three Months Ended | |||||||||
December 31, | |||||||||
(In Thousands) | 2013 | 2012 | |||||||
Direct Hire Placement Services | |||||||||
Revenue - net | $ | 1,738 | $ | 2,156 | |||||
Placement services gross margin | 100 | % | 100 | % | |||||
Operating loss | (313 | ) | (273 | ) | |||||
Depreciation & amortization | 59 | 56 | |||||||
Accounts receivable – net | 679 | 1,137 | |||||||
Intangible assets - net | 317 | 435 | |||||||
Goodwill | 24 | 24 | |||||||
Total assets | 4,367 | 2,869 | |||||||
Contract Staffing Services | |||||||||
Industrial services revenue – net | 6,893 | 8,376 | |||||||
Professional services revenue – net | 2,176 | 2,485 | |||||||
Industrial services gross margin | 12.9 | % | 13.2 | % | |||||
Professional services gross margin | 31.9 | % | 34.9 | % | |||||
Operating income | 206 | 545 | |||||||
Depreciation and amortization | 66 | 65 | |||||||
Accounts receivable net – industrial services | 4,624 | 4,745 | |||||||
Accounts receivable net – professional services | 856 | 1,075 | |||||||
Intangible assets - net | 1,486 | 1,690 | |||||||
Goodwill | 1,082 | 1,082 | |||||||
Total assets | 5,617 | 8,345 | |||||||
Consolidated | |||||||||
Revenue -net | 10,807 | 13,017 | |||||||
Operating income | (107 | ) | 272 | ||||||
Depreciation and amortization | 125 | 121 | |||||||
Total accounts receivable – net | 6,159 | 6,957 | |||||||
Intangible assets – net | 1,803 | 2,125 | |||||||
Goodwill | 1,106 | 1,106 | |||||||
Assets from continuing operations | 9,984 | 11,214 | |||||||
Assets from discontinued operations | 234 | 654 | |||||||
Total assets | $ | 10,218 | $ | 11,868 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Discontinued Operations [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
10. Discontinued Operations | |||||||||
As of July 7, 2013, the Board of Directors of General Employment Enterprises, Inc. determined that the best course of action related to the Agricultural Division was to terminate operations and to liquidate the Division’s assets and to focus the business on the light industrial and professional divisions. On July 7, 2013, all staffing was discontinued and the entire operations of the Agricultural Division were discontinued as of August 1, 2013. All employees have been terminated and an expense of approximately $100,000 was recognized as of June 30, 2013. | |||||||||
Three Months Ended | |||||||||
December, | |||||||||
(In Thousands) | 2013 | 2012 | |||||||
Discontinued Operations | |||||||||
Agricultural services revenue – net | $ | - | $ | 1,626 | |||||
Agricultural services gross margin | 0 | % | 4.5 | % | |||||
Agricultural services net loss | - | (16 | ) | ||||||
Accounts receivable net – Agricultural services | $ | 234 | $ | 654 | |||||
A Fixed assets – Agricultural services | - | ||||||||
Total assets – Agricultural services | $ | 234 | $ | 654 | |||||
Total liabilities – Agricultural services | $ | 5 | $ | 33 |
Description_of_Business_Detail
Description of Business (Details) | 1 Months Ended | 3 Months Ended |
Sep. 27, 2013 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' | ' |
Period over which Company will have sufficient liquidity | ' | '12 months |
Keltic [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Purchase agreement period | '3 years | '3 years |
Significant_Accounting_Policie2
Significant Accounting Policies and Estimates (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Segment | |||
Liquidity [Abstract] | ' | ' | ' |
Period over which Company will have sufficient liquidity | '12 months | ' | ' |
Revenue Recognition [Abstract] | ' | ' | ' |
Provision for falloffs and refunds in connection with placement service revenue | $104,000 | ' | $90,000 |
Accounts Receivable [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | 296,000 | ' | 272,000 |
Advertising [Abstract] | ' | ' | ' |
Advertising costs | 162,000 | 184,000 | ' |
Segment Data [Abstract] | ' | ' | ' |
Number of operating business segments | 2 | ' | ' |
Minimum [Member] | Customer Lists, Non Compete Agreements, Customer Relationships, Management Agreements and Trade Names [Member] | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' |
Estimated useful lives | '2 years | ' | ' |
Maximum [Member] | Customer Lists, Non Compete Agreements, Customer Relationships, Management Agreements and Trade Names [Member] | ' | ' | ' |
Intangible Assets [Abstract] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Computer Equipment [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Useful life of property and equipment | '5 years | ' | ' |
Computer Software [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Useful life of property and equipment | '5 years | ' | ' |
Office Equipment Furniture and Fixtures [Member] | Minimum [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Useful life of property and equipment | '2 years | ' | ' |
Office Equipment Furniture and Fixtures [Member] | Maximum [Member] | ' | ' | ' |
Property and Equipment [Abstract] | ' | ' | ' |
Useful life of property and equipment | '10 years | ' | ' |
Allowance for Doubtful Accounts, Discontinued Operations [Member] | ' | ' | ' |
Accounts Receivable [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | $35,000 | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Vehicles [Member] | Vehicles [Member] | Computer software [Member] | Computer software [Member] | Office equipment furniture and fixtures and leasehold improvements [Member] | Office equipment furniture and fixtures and leasehold improvements [Member] | Office equipment furniture and fixtures and leasehold improvements [Member] | Office equipment furniture and fixtures and leasehold improvements [Member] | ||||
Minimum [Member] | Maximum [Member] | ||||||||||
Summary of property and equipment [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of property and equipment | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '2 years | '10 years |
Total property and equipment, at cost | $3,560,000 | ' | $3,772,000 | ' | ' | $1,447,000 | $1,447,000 | $2,113,000 | $2,325,000 | ' | ' |
Accumulated depreciation and amortization | -3,055,000 | ' | -3,242,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 505,000 | ' | 530,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Disposals of property and equipment | ' | ' | ' | 225,000 | ' | ' | ' | ' | ' | ' | ' |
Term of leaseback agreement | ' | ' | ' | '30 months | ' | ' | ' | ' | ' | ' | ' |
Interest rate of lease (in hundredths) | ' | ' | ' | 23.00% | ' | ' | ' | ' | ' | ' | ' |
Current portion of lease | ' | ' | ' | ' | 72,000 | ' | ' | ' | ' | ' | ' |
Long term portion of lease | ' | ' | ' | ' | 81,000 | ' | ' | ' | ' | ' | ' |
Minimum lease payments, sales leaseback transactions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total lease | ' | ' | ' | ' | 153,000 | ' | ' | ' | ' | ' | ' |
Depreciation expense | $44,000 | $42,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Summary of finite-lived intangible assets [Abstract] | ' | ' | ' |
Cost | $2,707,000 | ' | $2,707,000 |
Accumulated Amortization | 904,000 | ' | 823,000 |
Loss on impairment of Intangible assets | 0 | ' | 0 |
Net Book Value | 1,803,000 | ' | 1,884,000 |
Amortization of intangible assets | 81,000 | 79,000 | ' |
Amortization expense of finite-lived intangible assets [Abstract] | ' | ' | ' |
Amortization expense of finite-lived intangible assets for fiscal year 2014 | 320,000 | ' | ' |
Amortization expense of finite-lived intangible assets for fiscal year 2015 | 320,000 | ' | ' |
Amortization expense of finite-lived intangible assets for fiscal year 2016 | 320,000 | ' | ' |
Amortization expense of finite-lived intangible assets for fiscal year 2017 | 320,000 | ' | ' |
Amortization expense of finite-lived intangible assets for fiscal year 2018 | 320,000 | ' | ' |
Amortization expense of finite-lived intangible assets after fiscal year 2018 | 200,000 | ' | ' |
Impairment of intangible assets | 0 | 0 | 0 |
Customer Relationships [Member] | ' | ' | ' |
Summary of finite-lived intangible assets [Abstract] | ' | ' | ' |
Cost | 2,690,000 | ' | 2,690,000 |
Accumulated Amortization | 897,000 | ' | 816,000 |
Loss on impairment of Intangible assets | 0 | ' | 0 |
Net Book Value | 1,793,000 | ' | 1,874,000 |
Customer Relationships [Member] | Minimum [Member] | ' | ' | ' |
Summary of finite-lived intangible assets [Abstract] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Customer Relationships [Member] | Maximum [Member] | ' | ' | ' |
Summary of finite-lived intangible assets [Abstract] | ' | ' | ' |
Estimated useful life | '10 years | ' | ' |
Trade Name [Member] | ' | ' | ' |
Summary of finite-lived intangible assets [Abstract] | ' | ' | ' |
Cost | 17,000 | ' | 17,000 |
Accumulated Amortization | 7,000 | ' | 7,000 |
Loss on impairment of Intangible assets | 0 | ' | 0 |
Net Book Value | $10,000 | ' | $10,000 |
Estimated useful life | '5 years | ' | ' |
Shortterm_Debt_Details
Short-term Debt (Details) (USD $) | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 27, 2013 | Dec. 31, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | |
Three Months Subsequent to Year End [Member] | Six Months Subsequent to Year End [Member] | Nine Months Subsequent to Year End [Member] | Twelve Months Subsequent to Year End [Member] | Keltic [Member] | Keltic [Member] | Keltic [Member] | Keltic [Member] | ||||
LIBOR [Member] | Prime Rate [Member] | ||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase agreement period | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' |
Maximum borrowing capacity under the agreement | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | ' | ' | ' |
Variable rate of debt instrument basis rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | 6.25% | 3.25% |
Proceeds received from line of credit | ' | ' | ' | ' | ' | ' | ' | 3,050,000 | ' | ' | ' |
Remaining borrowing capacity availability under this agreement | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' |
Agreement fees | ' | ' | ' | ' | ' | ' | ' | 170,000 | ' | ' | ' |
Period within which annual consulting fee is payable | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' |
Short-term debt | 4,110,000 | ' | 3,734,000 | ' | ' | ' | ' | ' | 38,000 | ' | ' |
Earnings Before Interest Taxes Depreciation and Amortization Targets as per Agreement | ' | ' | ' | 370,000 | 715,000 | 1,130,000 | 1,300,000 | ' | ' | ' | ' |
Interest expense under line of credit | $73,000 | $45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued_compensation_Details
Accrued compensation (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
Related Party Transaction [Line Items] | ' | ' |
Accrued compensation | $2,389,000 | $2,733,000 |
Former CEO [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Accrued compensation | $105,000 | ' |
Contingencies_and_Commitments_
Contingencies and Commitments (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Vehicles [Member] | Vehicles [Member] | Minimum [Member] | Maximum [Member] | |||
Long Term Commitments [Line Items] | ' | ' | ' | ' | ' | ' |
Expected earn-out liability | $295,000 | ' | ' | ' | ' | ' |
Cash payment of contingent consideration | 275,000 | ' | ' | ' | 550,000 | 650,000 |
Additional contingent consideration (in shares) | 1,100,000 | ' | ' | ' | ' | ' |
Additional contingent consideration | 330,000 | ' | ' | ' | ' | ' |
Period contingent consideration will be paid | '2 years | ' | ' | ' | ' | ' |
Contingent consideration interest expense | 20,000 | ' | ' | ' | ' | ' |
Disposals of property and equipment | ' | ' | 225,000 | ' | ' | ' |
Term of leaseback agreement | ' | ' | '30 months | ' | ' | ' |
Interest rate of lease (in hundredths) | ' | ' | 23.00% | ' | ' | ' |
Current portion of lease | ' | ' | ' | 72,000 | ' | ' |
Long term portion of lease | ' | ' | ' | 81,000 | ' | ' |
Total lease | ' | ' | ' | 153,000 | ' | ' |
Leases [Abstract] | ' | ' | ' | ' | ' | ' |
Leased period of branch offices | ' | ' | ' | ' | '3 years | '5 years |
Rent expense | 237,000 | 277,000 | ' | ' | ' | ' |
Minimum initial terms of payments due under non-cancelable lease agreements | '1 year | ' | ' | ' | ' | ' |
Future minimum lease payments [Abstract] | ' | ' | ' | ' | ' | ' |
Future minimum lease payments, total | 1,875,000 | ' | ' | ' | ' | ' |
Future minimum lease payments on fiscal year 2014 | 793,000 | ' | ' | ' | ' | ' |
Future minimum lease payments on fiscal year 2015 | 551,000 | ' | ' | ' | ' | ' |
Future minimum lease payments on fiscal year 2016 | 289,000 | ' | ' | ' | ' | ' |
Future minimum lease payments on fiscal year 2017 | 159,000 | ' | ' | ' | ' | ' |
Future minimum lease payments on fiscal year Thereafter | 83,000 | ' | ' | ' | ' | ' |
Termination charge | 125,000 | ' | ' | ' | ' | ' |
Execution of the termination agreement | 100,000 | ' | ' | ' | ' | ' |
Relief on additional lease payments | 25,000 | ' | ' | ' | ' | ' |
Relief period on additional payments on terminated agreement | '30 days | ' | ' | ' | ' | ' |
Accrued charges in other current liabilities | $125,000 | ' | ' | ' | ' | ' |
Segment_Data_Details
Segment Data (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue - net | $10,807 | $13,017 | ' |
Operating income (loss) | -107 | 272 | ' |
Depreciation and amortization | 125 | 121 | ' |
Accounts receivable - net | 6,159 | 6,957 | 6,697 |
Intangible assets, net | 1,803 | 2,125 | 1,884 |
Goodwill | 1,106 | 1,106 | 1,106 |
Total assets | 10,218 | 11,868 | 11,232 |
Segment, continuing operations [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 9,984 | 11,214 | ' |
Segment, discontinued operations [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total assets | 234 | 654 | ' |
Direct Hire Placement Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue - net | 1,738 | 2,156 | ' |
Gross margin (in hundredths) | 100.00% | 100.00% | ' |
Operating income (loss) | -313 | -273 | ' |
Depreciation and amortization | 59 | 56 | ' |
Accounts receivable - net | 679 | 1,137 | ' |
Intangible assets, net | 317 | 435 | ' |
Goodwill | 24 | 24 | ' |
Total assets | 4,367 | 2,869 | ' |
Contract Staffing Services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating income (loss) | 206 | 545 | ' |
Depreciation and amortization | 66 | 65 | ' |
Intangible assets, net | 1,486 | 1,690 | ' |
Goodwill | 1,082 | 1,082 | ' |
Total assets | 5,617 | 8,345 | ' |
Contract Staffing Services [Member] | Industrial services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue - net | 6,893 | 8,376 | ' |
Gross margin (in hundredths) | 12.90% | 13.20% | ' |
Accounts receivable - net | 4,624 | 4,745 | ' |
Contract Staffing Services [Member] | Professional services [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue - net | 2,176 | 2,485 | ' |
Gross margin (in hundredths) | 31.90% | 34.90% | ' |
Accounts receivable - net | $856 | $1,075 | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2011 | |
Discontinued Operations [Abstract] | ' | ' | ' |
Severance costs | ' | ' | $100,000 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Net loss | 0 | -16,000 | ' |
Agricultural Services [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue - net | 0 | 1,626,000 | ' |
Gross margin (in hundredths) | 0.00% | 4.50% | ' |
Net loss | 0 | -16,000 | ' |
Accounts receivable - net | 234,000 | 654,000 | ' |
Fixed assets | 0 | ' | ' |
Total assets | 234,000 | 654,000 | ' |
Total liabilities | 5,000 | 33,000 | ' |
Remuneration payment period to former head of division | '6 months | ' | ' |
Expected disposal proceeds from property and equipment sold to former head | $9,000 | ' | ' |
Agricultural Services [Member] | Minimum [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Receivables collection period | '3 months | ' | ' |
Agricultural Services [Member] | Maximum [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Receivables collection period | '9 months | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Jan. 28, 2014 | |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Subsequent event, date | 28-Jan-14 |
Share-based compensation arrangement by share-based payment award, options approved For grant (in shares) | 1,400,000 |
Stock option plans, exercise price range, lower range limit (in dollars per share) | $0.20 |
Stock option plans, exercise price range, upper range limit (in dollars per share) | $0.25 |
Share based compensation award, average vesting period | '3 years |
Common stock to be issued as per consulting agreement (in shares) | 100,000 |