DLH (DLHC) 10-Q 5 Feb 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2013	Jan. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'DLH Holdings Corp.	'
Entity Central Index Key	'0000785557	'
Document Type	'10-Q	'
Document Period End Date	31-Dec-13	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Current Fiscal Year End Date	'--09-30	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	9,602,773

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Sep. 30, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS	'	'
Cash and cash equivalents	$2,566	$3,408
Accounts receivable, net of allowance for doubtful accounts of $0 and $0, including unbilled receivables of $9.7 and $9.5 million, at December 31, 2013 and at September 30, 2013	13,201	11,943
Prepaid workers’ compensation	199	358
Other current assets	462	241
Total current assets	16,428	15,950
EQUIPMENT AND IMPROVEMENTS	'	'
Furniture and equipment	139	139
Computer equipment	126	126
Computer software	423	417
Leasehold improvements	24	24
Equipment and improvements, gross	712	706
Less accumulated depreciation and amortization	-577	-550
Equipment and improvements, net	135	156
GOODWILL	8,595	8,595
OTHER ASSETS	'	'
Deposit for workers' compensation insurance	0	1,030
Other assets	27	27
Total other assets	27	1,057
TOTAL ASSETS	25,185	25,758
CURRENT LIABILITIES	'	'
Bank loan payable	940	951
Current portion of capital lease obligations	9	22
Convertible debenture, net	0	340
Derivative financial instruments, at fair value	0	160
Accrued payroll (including $8.7 million related to unbilled receivables)	10,900	11,138
Accounts payable	1,505	370
Accrued expenses and other current liabilities	3,377	4,973
Total current liabilities	16,731	17,954
LONG TERM LIABILITIES	'	'
Other long term liability	18	20
Total long term liabilities	18	20
Total liabilities	16,749	17,974
COMMITMENTS AND CONTINGENCIES	'	'
SHAREHOLDERS’ EQUITY	'	'
Preferred stock, $.10 par value; authorized 5,000 shares, none issued and outstanding	0	0
Common stock, $.001 par value; authorized 40,000 shares; issued 9,610 at December 31, 2013 and 9,320 at September 30, 2013, outstanding 9,603 at December 31, 2013 and 9,318 at September 30, 2013	9	9
Additional paid-in capital	75,926	75,400
Accumulated deficit	-67,468	-67,601
Treasury stock, 7 shares at cost at December 31, 2013 and 2 shares at cost at September 30, 2013	-31	-24
Total shareholders’ equity	8,436	7,784
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$25,185	$25,758

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Sep. 30, 2013
Statement of Financial Position [Abstract]	'	'
Accounts receivable, allowance for doubtful accounts (in dollars)	$0	$0
Unbilled receivables	9,700,000	9,500,000
Employee-related Liabilities, Amounts Related to Unbilled Accounts Receivables	$8,700,000	$8,700,000
Preferred stock, par value (in dollars per share)	$0.10	$0.10
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, authorized shares	40,000,000	40,000,000
Common stock, issued shares	9,610,000	9,320,000
Common stock, outstanding shares	9,603,000	9,318,000
Treasury stock, shares	7,000	2,000

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]	'	'
REVENUES	$14,477	$12,994
DIRECT EXPENSES	12,365	11,206
GROSS PROFIT	2,112	1,788
GENERAL AND ADMINISTRATIVE EXPENSES	2,020	1,849
DEPRECIATION AND AMORTIZATION	26	33
Income (loss) from operations	66	-94
OTHER INCOME (EXPENSE)	'	'
Interest expense, net	-22	-46
Amortization of financing costs	-10	-52
Change in fair value of derivative financial instruments	99	61
Other income, net	0	3
Total other income (expense)	67	-34
Income (loss) before income taxes	133	-128
INCOME TAX EXPENSE	0	0
NET INCOME (LOSS)	$133	($128)
NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED	'	'
Net loss per share (in dollars per share)	$0.01	($0.01)
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING (in shares)	9,494	9,286
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING (in shares)	9,549	9,286

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net Income (loss)	$133	($128)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization including financing costs	36	85
Change in fair value of derivative financial instruments	-99	-61
Non cash equity grants	217	90
Changes in operating assets and liabilities, net of divested business:	'	'
Accounts receivable	-1,258	931
Prepaid workers' compensation and other current assets	-62	-224
Other assets	1,030	0
Accounts payable, accrued payroll, accrued expenses and other current liabilities	-697	79
Other long term liabilities	-2	-41
Net cash (used in)/provided by operating activities	-702	731
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchase of equipment and improvements	-6	-9
Net cash used in investing activities	-6	-9
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Net payments on bank loan payable	-11	-547
Rights offering expenses	0	-6
Proceeds from exercise of warrants	52	0
Repayments of capital lease obligations	-14	-12
Net repayment on convertible debentures	-140	0
Purchases of treasury stock	-21	0
Cash flows from discontinued operation	0	-7
Net cash used in financing activities	-134	-572
Net (decrease)/increase in cash and cash equivalents	-842	150
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	3,408	3,089
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,566	3,239
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:	'	'
Cash paid during the period for interest	92	97
Cash paid during the period for income taxes	$0	$13

ORGANIZATION_AND_BUSINESS

ORGANIZATION AND BUSINESS:	3 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
ORGANIZATION AND BUSINESS	'
	ORGANIZATION AND BUSINESS:
	For more than 25 years, DLH Holdings Corp. ("DLH"), has provided professional services to the U.S. Government. Headquartered in Atlanta, Georgia, DLH employs over 1,200 skilled technicians, logisticians, engineers, healthcare and support personnel at more than 25 locations around the United States. DLH’s operating subsidiary, DLH Solutions, Inc., is organized into three broad integrated business areas: Healthcare Delivery Solutions, Logistics & Technical Services, and Contingency / Staff Augmentation Services. Our customers, a majority of whom are within the Departments of Defense ("DoD") and Veterans Affairs ("DVA"), benefit from proven leadership processes, technical excellence and differentiation, and cost management. The remaining portion of DLH's business is comprised of customers within the Center for Disease Control and Prevention, Departments of Justice, Agriculture, Interior and Federal Emergency Management Agency, at locations throughout the United States.
	DLH Holdings Corp. (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our") manages its operations from Loganville, Georgia and its principal executive offices are located at 1776 Peachtree Street, Atlanta, Georgia 30309.
	Corporate History
	DLH Holdings Corp. was originally incorporated in New Jersey in 1969 as a payroll staffing company. Through several strategic transactions over recent decades, the Company has evolved considerably and in early 2010, made the strategic decision to build the Company around its government services entity, DLH Solutions, Inc. The Company is now completely focused on government services both as a prime contractor as well as a partner with other government contractors. The Company's other wholly-owned subsidiaries are not actively operating.

LIQUIDITY_AND_SIGNIFICANT_ACCO

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES:	3 Months Ended
	Dec. 31, 2013
LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES:	'
LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES:	'
	LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES:
	Liquidity
	In recent years, the Company has financed operations and capital expenditures through the sale of equity securities, convertible notes and more recently, through the proceeds from a rights offering. The Company's immediate sources of liquidity include cash and cash equivalents, accounts receivable, unbilled receivables and access to its asset-based credit facility with Presidential Financial Corporation. The Company's operating liabilities are largely predictable and consist of vendor and payroll related obligations. The Company's operations require substantial working capital to fund the future growth of its business model with expanded business development efforts, and planned capital expenditures to support a larger customer base.
	At December 31, 2013, the Company had a net working capital deficit of approximately $0.3 million and an accumulated deficit of approximately $67.5 million. For the three months ended December 31, 2013, the Company realized operating income of approximately $66 thousand and net income of approximately $133 thousand.
	As described further in Note 5, the Company has a credit facility with Presidential Financial Corporation which provides a maximum amount of $6,000,000 and includes a maximum amount available under the unbilled facility of $1,000,000. However, as described in greater detail in Note 5 below, the Company’s ability to borrow against the increased available credit is subject to the satisfaction of a number of conditions. Presently, the maximum availability under this loan facility is $3,000,000, subject to eligible accounts receivable.  At December 31, 2013, the amount of unused availability was approximately $1.1 million. The amount outstanding on the loan facility as of December 31, 2013 was $0.9 million.
	Management believes, at present, that: (a) cash and cash equivalents of approximately $2.6 million as of December 31, 2013; b) the amount available under its line of credit (which is limited to the amount of eligible assets); (c) forecasted operating cash flow; (d) certain liabilities not expected to be settled in cash (see Note 3) in fiscal 2014; and (e) effects of cost reduction programs and initiatives should be sufficient to support the Company's operations for twelve months from the date of these financial statements. However, should any of the above- referenced factors not occur substantially as currently expected, there could be a material adverse effect on the Company's ability to access the level of liquidity necessary for it to sustain operations at current levels for the next twelve months. In such an event, management may be forced to make further reductions in spending or seek additional sources of capital to support our operations. If the Company raises additional funds by selling shares of common stock or convertible securities, the ownership of its existing shareholders would be diluted.
	Presently, the Company derives all of its revenue from agencies of the Federal government. For the fiscal year ended September 30, 2013 and for the three months ended December 31, 2013, the Company derived approximately 96% and 97%, respectively, of its revenue from various contracts awarded by the DVA, the substantial majority of which relate to our provision of healthcare and logistics services to the DVA Consolidated Mail Outpatient Pharmacy (CMOP) program. As of December 31, 2013, these awards from the DVA have anticipated periods of performance ranging from approximately three to up to five years. These agreements are subject to the Federal Acquisition Regulations, and there can be no assurance as to the actual amount of services that the Company will ultimately provide to the DVA under these awards. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we are unable to continue our relationships with the DVA.
	Basis of Presentation
	The accompanying consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation.
	Reclassifications
	Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill, expected settlement amounts of accounts receivable, measurement of prepaid workers’ compensation, valuation allowances established against accounts receivable and deferred tax assets,  measurement of payroll tax contingencies, accounts payable, workers’ compensation claims, and accrued expenses and the valuation of derivative financial instruments associated with debt agreements. In addition, the Company estimates overhead charges and allocates such charges throughout the year.  Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations.
	Revenue Recognition
	DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The recognition of revenue from fixed rates is based upon objective criteria that generally do not require significant estimates that may change over time. DLH recognizes and records revenue on government contracts when it is realized, or realizable, and earned. DLH considers these requirements met when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured.
	Goodwill
	In accordance with applicable accounting standards, DLH does not amortize goodwill. DLH continues to review its goodwill for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value.  At September 30, 2013, we performed a goodwill impairment evaluation. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2013. Factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. For the three months ended December 31, 2013, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill.  If an impairment write off of all the goodwill became necessary in future periods, a charge of up to $8.6 million would be expensed in the Consolidated Statement of Operations. All remaining goodwill is attributable to the DLH Solutions operating subsidiary.
	Income Taxes
	DLH accounts for income taxes in accordance with the “liability” method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. At December 31, 2013 and 2012, the Company recorded a 100% valuation allowance against its net deferred tax assets.
	The Financial Accounting Standards Board (“FASB”) has issued authoritative guidance that clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold of more-likely-than-not to be sustained upon examination. Measurement of the tax uncertainty occurs if the recognition threshold has been met. This interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods and disclosures. The Company conducts business solely in the U.S. and, as a result, also files income taxes in various states and other jurisdictions. Given the substantial net operating losses and the related valuation allowance established against such amounts, the Company has concluded that it does not have any uncertain tax positions. There have been no income tax related interest or penalties for the periods presented in these consolidated financial statements. In the normal course of business, the Company and its subsidiaries are subject to examination by Federal and state taxing authorities. The Company’s income tax returns for years subsequent to fiscal 2010 are currently open, by statute, for review by authorities. However, there are no examinations currently in progress and the Company is not aware of any pending audits.
	Stock-Based Compensation
	Compensation costs for the portion of equity awards (for which the requisite service has not been rendered) that are outstanding are recognized as the requisite service is rendered. The compensation cost for that portion of awards shall be based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. As of December 31, 2013 and 2012, there was approximately $351 thousand and $208 thousand, respectively, remaining unrecognized compensation expense related to non-vested stock based awards to be recognized in future periods.
	Certain awards vest upon satisfaction of certain performance criteria. As permitted, the Company will not recognize expense on the performance based shares until it is probable that these conditions will be achieved. Such charges could be material in future periods.
	Stock Options, Warrants and Restricted Stock
	For options that vest based on the Company’s common stock achieving certain performance criteria, the Company values these awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation cost is recognized over the derived service period determined in the valuation.
	From time to time, the Company grants restricted stock awards to non-employee directors and employees under existing plans. The Company recognizes non-cash compensation expense over the various vesting periods.
	Stock compensation expense totaled $217 thousand for all awards for the three month period ended December 31, 2013 and totaled $90 thousand for all awards for the three months ended December 31, 2012.
	On November 8, 2013, the Management Resources and Compensation Committee (the “Committee”) of the Board of Directors approved for the Company’s named executive officers (the “Executive Officers”) equity awards under the Company’s 2006 Long Term Incentive Plan, as amended (the “2006 Plan”) based upon individual and corporate performance during the fiscal year ended September 30, 2013. The stock options (i) have a ten-year term, (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined pursuant to the 2006 Plan, as reported on NASDAQ, on the date of grant ($1.395), and (iii) vest as follows:
	(a) 50% of the options granted will vest at such time as the Company’s common stock has a closing price of at least $3.00 per share for ten consecutive trading days; and
	(b) 50% of the options granted will vest on the achievement of certain financial and/or business performance objectives as determined by the Committee for the fiscal year ending September 30, 2014.
	The options were awarded in the following amounts to the Executive Officers: Mr. Parker was granted 100,000 options and each of Ms. JohnBull, Mr. Armstrong and Mr. Wilson were granted 75,000 options. Further, the Management Resources and Compensation Committee allocated a pool of options for distribution to non-executive employees of the Company, subject to the same terms and pursuant to the recommendations of the executive management team. Accordingly, 42,000 additional options were granted to non-executive employees of the Company.
	As further described in Note 9, 175,000 options were awarded in connection with extensions of the employment agreements of certain members of the executive management team.
	Warrants are issued from time-to-time to non-employee third parties in order to induce then to enter in certain transactions with the Company. The Company recognizes non-cash expense related to such activity over the estimated period of performance.
	Effective as of November 25, 2013, the Company granted an aggregate of 80,000 shares of restricted stock to its non-executive directors, consistent with its compensation policy for non-executive directors. These shares were issued pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended.  The shares vested immediately and stock expense of $108,800 was recognized in the three months ended December 31, 2013.  Additionally, at December 31, 2013, there were 52,500 shares of unvested restricted stock outstanding from prior year grants to non-executive directors.  There is $150,000 of unrecognized expense related to these unvested restricted stock awards.
	The stock option activity for the three months ended December 31, 2013 is as follows:
		Number of		Weighted				Weighted		Aggregate
		Shares		Average				Average		Intrinsic
				Exercise				Remaining		Value
				Price				Contractual
								Term
	Options outstanding, September 30, 2013	1,612,500		$	1.15			7.9		$	388,000
	Granted	605,000		$	1.35
	Options outstanding, December 31, 2013	2,217,500		$	1.21			8.4		$	792,000
	At December 31, 2013, there were 462,500 options outstanding that were vested and exercisable and an additional 1,755,000 options outstanding that vest to the recipients when the market value of the Company’s stock achieves and maintains defined levels.
	The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.
	Changes in Shareholders’ Equity
	The following are the changes in Shareholders’ Equity for the three months ended December 31, 2013:
	(Amounts in Thousands)
								Additional											Total
		Common Stock						Paid-In				Accumulated			Treasury Stock				Shareholders’
		Shares		Amount				Capital				Deficit			Shares	Amount			Equity
	BALANCE, September 30, 2013	9,318		$	9			$	75,400			$	(67,601	)	2	$	(24	)	$	7,784
	Director restricted stock grants	80						109											109
	Expense related to employee stock option grants							108											108
	Exercise of convertible debenture	168						210											210
	Exercise of warrants	54						113											113
	Repurchase and cancellation of shares	(12	)					(14		)									(14		)
	Repurchase of shares	(5	)												5	(7		)	(7		)
	Net loss											133							133
	BALANCE, December 31, 2013	9,603		$	9			$	75,926			$	(67,468	)	7	$	(31	)	$	8,436
	On September 18, 2013, we announced that our Board of Directors authorized a stock repurchase program (the Program) under which we could repurchase up to $350,000 of shares of our common stock through open market transactions in compliance with Securities and Exchange Commission Rule 10b-18, privately negotiated transactions, or other means. This repurchase program does not have an expiration date, and we are not obligated to acquire a particular number of shares. Through December 31, 2013, the Company repurchased an aggregate of 17,275 shares of its common stock pursuant to a trading plan entered into by the Company in September 2013 in accordance with Rules 10b5-1 and 10b-18. The average price for all shares repurchased under the program during the quarter ended December 31, 2013 was $1.20 per share. As of December 31, 2013, there is a total of $329,307 remaining for repurchases under the program
	Fair Value of Financial Instruments
	The Company has financial instruments, principally accounts receivable, accounts payable, loan payable, notes payable, and accrued expense. Due to the short term nature of these instruments, DLH estimates that the fair value of all financial instruments at December 31, 2013 and September 30, 2013 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets.  In addition, the Company has historically presented certain common stock warrants and embedded conversion features associated with Convertible Debentures and accounts for such derivative financial instruments at fair value. As further described in Note 6, those convertible debentures matured and the common stock warrants were exercised in the three months ended December 31, 2013.
Earnings (Loss) Per Share
Basic earnings (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities.
The effects of common stock equivalents of 2,182,804 and 1,686,346 are anti-dilutive for the three months ended December 31, 2013 and 2012, respectively.
The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per
share data):
	Three Months Ended
	December 31,
	2013			2012
Numerator:
Net income (loss)	$	133		$	(128	)
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares	9,494			9,286
Effect of dilutive securities:
Stock options and restricted stock	55			—
Denominator for diluted net income (loss) per share - weighted-average outstanding shares	9,549			9,286
Net income (loss) per share - basic	$	0.01		$	(0.01	)
Net income (loss) per share - diluted	$	0.01		$	(0.01	)

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES:	3 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES:	'
	COMMITMENTS AND CONTINGENCIES:
	Potential Contractual Billing Adjustments
	Revenues related to retroactive billings in 2008 from an agency of the Federal government were recognized when: (1) the Company developed and calculated an amount for such prior period services and had a contractual right to bill for such amounts under its arrangements, (2) there were no remaining unfulfilled conditions for approval of such billings and (3) collectibility was reasonably assured based on historical practices with, and contractual requirements of, the DVA. The related direct costs, principally comprised of salaries and benefits, were accrued to match the recognized reimbursements from the Federal agency; upon approval, wages will be processed for payment to the employees.
	During the year ended September 30, 2008, DLH recognized revenues of $10.8 million and direct costs of 10.1 million related to these non-recurring arrangements. At December 31, 2013 and September 30, 2013, the amount of the remaining accounts receivable with the DVA approximated 9.3 million and accrued liabilities for salaries to employees and related benefits totaled 8.7 million. The 9.3 million in accounts receivable was unbilled to the DVA at December 31, 2013 and September 30, 2013.
	In April 2012, the Company received formal contract modifications from the DVA concerning the retroactive billing matter for which revenue was accrued in 2008. The contract modifications from the DVA incorporate relevant wage determinations covering largely 2006 and 2007 applying to the Company’s historical contracts with DVA during those periods. These government modifications initiate the procedures whereby the Company may invoice the DVA in accordance with the modified wage determinations and subsequently make timely retroactive payments to employees (active and inactive) covering work performed at the certain locations. The Company expects to follow the process directed by and in conjunction with the Department of Labor and the DVA in generating these invoices.  Although the timing cannot be guaranteed, at present, the Company expects to bill and collect such amounts within the next twelve months.
	The Company continues to support the Government’s review of the detailed supporting calculations for the retroactive billings and to negotiate an incremental final amount related to indirect costs and fees applied to these retroactive billings. The additional indirect costs and fees are estimated to be between 0.4 million and 0.6 million. The Company has developed these estimates under the same contractual provisions applied to the sites that were settled in 2008. However, because these amounts remain subject to government review, no assurances can be given that any amounts the Company may receive will be within the range specified above.
	Payroll Taxes
	From 2006 through 2009, DLH received notices from the Internal Revenue Service (“IRS”) claiming taxes, interest and penalties due related to payroll taxes predominantly from its former PEO operations which were sold in fiscal 2003. DLH also received notices from the IRS reporting overpayments of taxes. Management believes that these notices are predominantly the result of misapplication of payroll tax payments between its legal entities. Until the sale of certain assets related to the former PEO operations, DLH operated through 17 subsidiaries, and management believes that the IRS has not correctly identified payments made through certain of the different entities, therefore leading to the notices. Through the fiscal year ended September 30, 2009, DLH worked with the IRS to resolve these discrepancies and had certain interest and penalty claims abated. DLH also received notices from the Social Security Administration claiming variances in wage reporting compared to IRS transcripts. DLH believes the notices from the Social Security Administration are directly related to the IRS notices received. DLH believes it has fully responded to the notices issued.  DLH believes that after the IRS applies all the funds correctly, any significant interest and penalties will be abated; however, there can be no assurance that each of these matters will be resolved favorably. In settling various years for specific subsidiaries with the IRS, the Company received refunds for those specific periods; however, as the process of settling and concluding on other periods and subsidiaries is not yet completed, the potential exists for related penalties and interest. The remaining liability ($1.4 million at December 31, 2013 and at September 30, 2013) has been recorded in accrued expenses and other current liabilities and includes estimated accrued penalties and interest totaling approximately $600,000.
	The Company believes it has accrued for the entire estimated remaining liability, inclusive of interest and penalties through the date of the financial statements. The Company may incur additional interest and may incur possible additional penalties through the future date that this obligation is settled. However, it is not currently possible to estimate what, if any, additional amount(s) may be due in the future, given the uncertain timing and nature of any future settlement negotiations. No payments were made in fiscal 2013 or year to date in fiscal 2014. Management believes that the ultimate resolution of these remaining payroll tax matters will not have a significant adverse effect on its financial position or future results of operations. The Company’s intention is that it will in due course seek to negotiate a mutually satisfactory payment plan with the IRS, but there is no assurance that it would be successful in doing so and the Company’s future cash flows and liquidity could therefore be materially affected by this matter.
	Legal Proceedings
	As the Company has previously reported, it was advised of a claim by the U.S. Attorney based on an alleged failure to pay certain classes of employees the prevailing wages as required by the Service Contract Act during the years 2003-2010. On December 12, 2013, the Company was further advised by the U.S. Attorney that, after a review of the merits of the complaint, the U.S. Department of Justice declined to intervene and the claim has been dismissed in its entirety.
	As a commercial enterprise and employer, the Company is subject to various claims and legal actions in the ordinary course of business. These matters can include professional liability, employment-relations issues, workers’ compensation, tax, payroll and employee-related matters, other commercial disputes arising in the course of its business, and inquiries and investigations by governmental agencies regarding our employment practices or other matters. Other than as reported elsewhere in this report, the Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows.

PREPAID_WORKERS_COMPENSATION

PREPAID WORKERS' COMPENSATION:	3 Months Ended
	Dec. 31, 2013
Compensation Related Costs [Abstract]	'
PREPAID WORKERS' COMPENSATION:	'
	PREPAID WORKERS’ COMPENSATION:
	As part of the Company’s discontinued PEO operations, DLH had a workers’ compensation program with Zurich American Insurance Company (“Zurich”) which covered the period from March 22, 2002 through November 16, 2003, inclusive. Payments for the policy were made to a trust monthly based on projected claims for the policy period. Interest on all assets held in the trust is credited to DLH. Payments for claims and claims expenses are made from the trust. From time-to-time, trust assets have been refunded to the Company based on Zurich’s overall assessment of claims experience and historical and projected settlements. The final amount of trust funds that could be refunded to the Company is subject to a number of uncertainties (e.g. claim settlements and experience, review by the insurer, health care costs, the extended statutory filing periods for such claims); however, based on a third party’s study of claims experience and after giving effect to agreed-upon adjustments, DLH estimates that at December 31, 2013, the remaining prepaid asset of approximately $0.2 million will be received within the next twelve months.

DEBT

DEBT:	3 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
DEBT:	'
	DEBT:
	Loan Facility
	On July 29, 2010, DLH Solutions entered into a Loan and Security Agreement (the “Loan Agreement”) with Presidential Financial Corporation (the “Lender”). Under the Loan Agreement, the Lender agreed to provide a two (2) year secured loan facility to DLH Solutions in an aggregate amount of up to $1.5 million, upon the further terms and subject to the conditions of the Loan Agreement. In November, 2010, the Lender agreed by means of an amendment to the Loan Agreement to increase the maximum amount available under the facility from $1.5 million to $2.5 million and on February 9, 2011, we entered into a further amendment to the Loan Agreement pursuant to which the Lender agreed to further increase our maximum availability under the Loan Agreement from $2.5 million to $3.0 million and to provide an unbilled receivable facility within the limits of the Loan Agreement. The February 2011 amendment also extended the term of the Loan Agreement by 12 months, to July 29, 2013, which will automatically renew annually unless terminated by either party. During the fiscal year ended September 30, 2013, the Agreement was automatically extended to July 29, 2014.
	In May 2012, the Company entered into a further amendment to the Loan Agreement (the “Fifth Amendment”) pursuant to which the Lender agreed to increase the available line of credit from $3,000,000 to a maximum amount of $6,000,000 and to increase the maximum amount available under the unbilled accounts facility of the Loan Agreement from $500,000 to $1,000,000. The Company’s ability to borrow against the increased available credit, however, is subject to the satisfaction of certain conditions. The Fifth Amendment provides for an initial sublimit under the maximum loan amount of $3,000,000 (the “Initial Sublimit”) and an adjusted sublimit of $4,000,000 (the “Adjusted Sublimit”). Pursuant to a letter agreement dated May 21, 2013, the sublimit for maximum amounts available on unbilled accounts was increased from $500,000 to $750,000. The Initial Sublimits will remain in effect until the satisfaction of the following conditions: (i) the repayment of the $500,000 over-advance accommodation agreed to by Lender as of May 9, 2012, (ii) the Company's demonstration of the need for the increase, (iii) the Company's continued compliance with the Loan Agreement, and (iv) Lender, in its sole discretion, agrees to increase the Initial Sublimit. In addition, the increased availability under the unbilled accounts facility of the Loan Agreement is subject to the satisfaction of the same conditions that are applicable to Initial Sublimit. Accordingly, until these conditions are satisfied, the current borrowing limits remain in effect.
	DLH Solutions’ ability to request loan advances under the Loan Agreement is subject to (i) computation of DLH Solutions’ advance availability limit based on “eligible accounts receivables” (as defined in the Loan Agreement) multiplied by the “Accounts Advance Rate” established by the Lender which initially shall be 85% and may be increased or decreased by the Lender in exercise of its discretion; and (ii) compliance with the covenants and conditions of the loan. An interest rate premium of 2% is payable in respect of any advances secured by unbilled accounts receivable, which are subject to a sub-facility limit of $750,000 and an advance rate of 75%. The loan is secured by a security interest and lien on all of DLH Solutions’ cash accounts, account deposits, letters of credit and investment property, chattel paper, furniture, fixtures and equipment, instruments, investment property, general intangibles, deposit accounts, inventory, other property, all proceeds and products of the foregoing (including proceeds of any insurance policies and claims against third parties for loss of any of the foregoing) and all books and records related thereto.
	In December 2013, the Loan Agreement was further modified to permit letters of credit to be issued under the overall credit facility, subject to availability provided by eligible billed and unbilled accounts receivable and further subject to a limit of $1.03 million.
	Under the Loan and Security Agreement, interest accrues at the greater of (a) 3.25% or (b) (i) 1.95% above the Wall Street Journal Prime rate on the accounts receivable portion of the credit line and (ii) 3.95% above the Wall Street Journal Prime rate on the unbilled accounts portion. In addition, DLH Solutions will pay certain other related fees and expense reimbursements including a monthly service charge of 0.65% based on the average daily loan balance which shall accrue daily and be due and payable on the last day of each month so long as the Loan Agreement is outstanding.   The interest rate on the Accounts Receivable portion of the loan was 5.2% at both December 31, 2013 and 2012.  The interest rate on the Unbilled Accounts portion was 7.2% at both December 31, 2013 and 2012. At December 31, 2013, based on current eligible accounts receivable, the amount of the unused availability under the line was $1.1 million. The amount outstanding as of December 31, 2013 was $0.9 million.
	The Loan Agreement requires compliance with customary covenants and contains restrictions on the Company’s ability to engage in certain transactions. Among other matters, under the loan agreement we may not, without consent of the Lender, (i) merge or consolidate with another entity, form any new subsidiary or acquire any interest in a third party; (ii) acquire any assets except in the ordinary course of business; (iii) enter into any transaction outside the ordinary course of business; (iv) sell or transfer collateral; (v) make any loans to, or investments in, any affiliate or enter into any transaction with an affiliate other than on an arms-length basis; (vi) incur any debt outside the ordinary course of business; (vii) pay or declare any dividends or other distributions; or (viii) redeem, retire or purchase any of our equity interests exceeding $50,000. Further, without the consent of the Lender, the Company is also restricted from making any payments in respect of other outstanding indebtedness.  The Lender agreed to eliminate the tangible net worth covenant as part of the Fifth Amendment. Either party may terminate the Loan Agreement at any time upon 60 days written notice, and the Loan Agreement provides for customary events of default following which the Lender may, at its option, immediately terminate the loan agreement and accelerate the repayment of any amount outstanding. The defined events of default include, among other things, a material adverse change in the Company's circumstances, or if the Lender deems itself insecure in the ability of the Company to repay its obligations, or as to the sufficiency of the collateral. At present, the Company has not experienced, and the financial institution has not declared, an event of default.
	In consideration of the Lender entering into the Fifth Amendment, we agreed to pay a monthly collateral monitoring fee, a documentation fee and at the time that we may borrow amounts in excess of the Initial Sublimit, an origination fee of 1% of the increased availability.
	The Company has concurrently executed a Corporate Guaranty Agreement with Lender pursuant to which it has guaranteed all of the obligations of DLH Solutions under the Loan Agreement.

EQUITY_AND_CONVERTIBLE_DEBENTU

EQUITY AND CONVERTIBLE DEBENTURES FINANCING:	3 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
EQUITY AND CONVERTIBLE DEBENTURES FINANCING:	'
	EQUITY AND CONVERTIBLE DEBENTURES FINANCING:
	On June 1, 2011, the Company entered into a debenture purchase agreement (the “Debenture Purchase Agreement”) with entities affiliated with Wynnefield Capital, Inc. (the “Debenture Purchasers”), providing for a standby commitment pursuant to which the Debenture Purchasers agreed to purchase convertible debentures (the “Convertible Debentures”) in an aggregate principal amount of up to $350,000 (the “Total Commitment Amount”). In addition, the Company issued the Debenture Purchasers warrants to purchase an aggregate of 53,846 shares of common stock (the “Warrants”) in consideration of their agreement to provide the Total Commitment Amount. The Debenture Purchasers are entities affiliated with Wynnefield Capital, Inc., the Company’s largest shareholder. Mr. Peter Black, a member of the Company’s Board of Directors, is an employee of Wynnefield Capital. On July 28, 2011, the Company drew down the entire amount of the Total Commitment amount available under the Debenture Purchase Agreement and issued the Convertible Debentures in the aggregate principal amount of $350,000 to the Debenture Purchasers.
	The Warrants were exercisable at a price of $0.96 until June 2016 and the conversion rate of the convertible debentures was $1.25. In October 2013, Wynnefield Partners Small Cap Value, L.P. I, the holder of a principal amount of $210,000 of convertible debentures elected to convert such debentures in full into 168,000 shares of common stock. The $140,000 balance of the convertible debentures plus accrued interest was paid at maturity on October 28, 2013. In addition, in October 2013, the holders of the Warrants exercised such Warrants in full for 53,846 shares of common stock. A non-recurring gain of $119 thousand was recognized related to the closure of the convertible debt. Additionally, expense of $20 thousand was recorded in the three months ended December 31, 2013, related to fair valuation of the warrants. The accrued liability of $61 thousand with respect to the fair value of the warrants was reflected as additional paid in capital upon their exercise. The shares of the Company’s common stock s issued upon conversion of the debentures were issued in reliance on the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended. The shares of the Company’s common stock s issued upon exercise of the Warrants were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended.
	On March 16, 2012, the Company filed a registration statement on Form S-1 with the Securities and Exchange Commission for a rights offering in which existing stockholders of the Company received non-transferable rights to purchase $4.2 million of additional shares of its common stock. Under the terms of the rights offering, the Company distributed, at no charge to the holders of its common stock as of the record date of April 10, 2012, non- transferable subscription rights for each share of common stock owned on the record date.  Each subscription right entitled the holder to purchase 0.532 shares of the Company’s common stock at a price of $1.30 per share. The rights offering also includes an over-subscription privilege, which entitled a holder who exercises its basic subscription privilege in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and  pro rata  allocation of shares among persons exercising this over-subscription right.
	In connection with the rights offering, on April 30, 2012, the Company entered into a standby purchase agreement with Wynnefield Capital, Inc. (“Wynnefield Capital”), which owned, prior to the rights offering, approximately 21% of the Company’s Common Stock through certain affiliated entities. Pursuant to the standby purchase agreement, Wynnefield Capital (or affiliated assignees) agreed to acquire from us in the rights offering, subject to the satisfactions of specified conditions, the shares of common stock that relate to any rights that remain unexercised at the expiration of the rights offering. We entered into a registration rights agreement with Wynnefield Capital whereby we agreed, at our cost and expense, to register for resale under the Securities Act of 1933, all shares of common stock beneficially owned by Wynnefield Capital, including shares purchased by Wynnefield Capital in the rights offering as well as shares potentially received upon exercise of the conversion feature of the Convertible Debt and upon exercise of the associated warrants. This registration statement was declared effective by the SEC in January 2013.
	The Company completed the closing of the rights offering on June 15, 2012 and raised gross proceeds of $4.2 million from the sale of 3,230,769 shares of its common stock.  As a result, the total number of shares of the Company’s common stock outstanding increased to 9,305,702 shares.  Officers and directors purchased an aggregate of 137,678 shares in the rights offering and entities affiliated with Wynnefield Capital purchased a total of 2,840,251 shares of our common stock.

RECENTLY_ISSUED_ACCOUNTING_PRO

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY:	3 Months Ended
	Dec. 31, 2013
Accounting Changes and Error Corrections [Abstract]	'
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY:	'
	RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY:
	In December 2011, the FASB amended disclosure concerning offsetting assets and liabilities. The amendments in the update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. In January 2013, the FASB issued clarifying guidance related to the amended disclosure requirements concerning offsetting assets and liabilities which had previously been issued in December 2011. The guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The adoption of this guidance did not have a material effect on the financial statements.
	In October 2012, the FASB issued technical corrections and improvements, which include revisions to prior guidance on numerous topics, including Convertible Debentures. The effective date of these revisions is for fiscal years beginning after December 15, 2012. The adoption of this guidance did not have a material effect on the financial statements.
	In February 2013, the FASB amended its guidance related to the reporting of amounts reclassified out of accumulated other comprehensive income.    The amendments are effective prospectively for reporting periods beginning after December 15, 2012.   The adoption of this guidance did not have a material effect on the financial statements.
	In July 2013, the FASB updated its guidance with respect to the presentation of unrecognized tax benefits. The guidance is effective for reporting periods beginning after December 15, 2013, with early adoption permitted. The Company has consistently reported in compliance with this updated guidance.

ECONOMIC_DEPENDENCY

ECONOMIC DEPENDENCY:	3 Months Ended
	Dec. 31, 2013
ECONOMIC DEPENDENCY:	'
ECONOMIC DEPENDENCY:	'
	ECONOMIC DEPENDENCY:
	A major customer is defined as a customer from whom the Company derives at least 10% of its revenues. In each of the fiscal quarters ended December 31, 2013 and 2012, revenue from the U.S. Government accounted, either directly or indirectly, for 100% of the Company’s total revenue.  Within the U.S. Government, our largest customer in the fiscal quarter ended December 31, 2013 continued to be the DVA, accounting for 97% and 96% of revenue in the fiscal quarters ended December 31, 2013 and 2012, respectively, and with whom the Company held over a dozen contracts and/or task orders for logistics, pharmaceutical, and medical services, all subject to the Federal Acquisition Regulations.  Accordingly, DLH remains particularly dependent on the continuation of its relationship with the DVA.

EMPLOYMENT_AGREEMENTS

EMPLOYMENT AGREEMENTS:	3 Months Ended
	Dec. 31, 2013
Compensation Related Costs [Abstract]	'
EMPLOYMENT AGREEMENTS	'
	EMPLOYMENT AGREEMENTS:
	From time to time, we enter into employment agreements with certain key executives which provide for fixed compensation, criterion for earning bonuses and other incentives and, in certain instances, issuance of share based equity grants. These agreements generally continue until terminated by the employee or the Board of Directors or, upon the occurrence of defined certain events or circumstances (including a defined change in control), and provide for salary continuance for specified periods of generally no more than a year and or lump sum payments in the event of a change of control of up to 150% of annual salary.
	On October 1, 2013, the Company entered into a new employment agreement with Kevin Wilson, who serves as the President of the Company’s wholly-owned subsidiary DLH Solutions, Inc. The new employment agreement with Mr. Wilson is effective as of October 1, 2013 and will expire September 30, 2015, the terms of which are summarized below. The following description of the amendment agreement is qualified in its entirety by reference to the full text of such agreement.
	Mr. Wilson will continue to serve as the President of DLH Solutions, Inc., a wholly-owned subsidiary of DLH. Under the employment agreement, Mr. Wilson will receive a base salary of $210,000 per annum. Mr. Wilson may receive an annual bonus of up to 50% of base salary based on performance targets and other key objectives established by the Management Resources and Compensation Committee of the board of directors. Target bonus will be adjusted by 2% of base salary for every 1% of variance between targets and actual results and no bonus will be awarded if results are less than 90% of target and no bonus will exceed 70% of base salary.
	In addition, the Company granted Mr. Wilson options to purchase 100,000 shares of common stock under the Company's 2006 Long Term Incentive Plan, as amended. The options shall vest as follows: 50,000 options vest on the commencement date of the agreement and 50,000 options shall vest on the one year anniversary of the commencement date, provided Mr. Wilson remains in the employment of the Company as of such vesting date. The options, to the extent vested, shall be exercisable for a period of ten years at the per share exercise price equal to the fair market value of the Company’s common stock, as determined pursuant to the 2006 Plan, on the date his employment agreement was executed.
	On November 29, 2013, the Company entered into a new employment agreement with John F. Armstrong, who serves as the Company’s Executive Vice President. The new employment agreement with Mr. Armstrong is effective as of December 1, 2013 and will expire November 30, 2015. The following description of the amendment agreement is qualified in its entirety by reference to the full text of such agreement.
	Mr. Armstrong will continue to serve as DLH’s Executive Vice President for business development of the Company. Under the employment agreement, Mr. Armstrong will receive a base salary of $215,000 per annum. Mr. Armstrong will be entitled to a 5% increase in his base salary in the event that the Company achieves the business development-related performance condition specified in the agreement. Mr. Armstrong may receive an annual bonus of up to 50% of base salary based on performance targets and other key objectives established by the Management Resources and Compensation Committee of the board of directors. Target bonus will be adjusted by 2% of base salary for every 1% of variance between targets and actual results and no bonus will be awarded if results are less than 90% of target and no bonus will exceed 70% of base salary.
	In addition, the Company granted Mr. Armstrong options to purchase 75,000 shares of common stock under our 2006 Long Term Incentive Plan (the “2006 Plan”). The options shall vest as follows: 37,500 options vest on the one year anniversary of the commencement date and 37,500 options shall vest if the closing price of the Company’s common stock equals or exceeds $3.00 per share for ten consecutive trading days, provided Mr. Armstrong remains in the employment of the Company as of such vesting dates. The options, to the extent vested, shall be exercisable for a period of ten years at the per share exercise price equal to the fair market value of the Company’s common stock, as determined pursuant to the 2006 Plan, on the date his employment agreement was executed.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS:	3 Months Ended
	Dec. 31, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS:	'
	SUBSEQUENT EVENTS:
	Management has evaluated subsequent events through the date that the Company's financial statements were issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure through the date that these financial statements were issued.

LIQUIDITY_AND_SIGNIFICANT_ACCO1

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Policies)	3 Months Ended
	Dec. 31, 2013
LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES:	'
Liquidity	'
	Liquidity
	In recent years, the Company has financed operations and capital expenditures through the sale of equity securities, convertible notes and more recently, through the proceeds from a rights offering. The Company's immediate sources of liquidity include cash and cash equivalents, accounts receivable, unbilled receivables and access to its asset-based credit facility with Presidential Financial Corporation. The Company's operating liabilities are largely predictable and consist of vendor and payroll related obligations. The Company's operations require substantial working capital to fund the future growth of its business model with expanded business development efforts, and planned capital expenditures to support a larger customer base.
	At December 31, 2013, the Company had a net working capital deficit of approximately $0.3 million and an accumulated deficit of approximately $67.5 million. For the three months ended December 31, 2013, the Company realized operating income of approximately $66 thousand and net income of approximately $133 thousand.
	As described further in Note 5, the Company has a credit facility with Presidential Financial Corporation which provides a maximum amount of $6,000,000 and includes a maximum amount available under the unbilled facility of $1,000,000. However, as described in greater detail in Note 5 below, the Company’s ability to borrow against the increased available credit is subject to the satisfaction of a number of conditions. Presently, the maximum availability under this loan facility is $3,000,000, subject to eligible accounts receivable.  At December 31, 2013, the amount of unused availability was approximately $1.1 million. The amount outstanding on the loan facility as of December 31, 2013 was $0.9 million.
	Management believes, at present, that: (a) cash and cash equivalents of approximately $2.6 million as of December 31, 2013; b) the amount available under its line of credit (which is limited to the amount of eligible assets); (c) forecasted operating cash flow; (d) certain liabilities not expected to be settled in cash (see Note 3) in fiscal 2014; and (e) effects of cost reduction programs and initiatives should be sufficient to support the Company's operations for twelve months from the date of these financial statements. However, should any of the above- referenced factors not occur substantially as currently expected, there could be a material adverse effect on the Company's ability to access the level of liquidity necessary for it to sustain operations at current levels for the next twelve months. In such an event, management may be forced to make further reductions in spending or seek additional sources of capital to support our operations. If the Company raises additional funds by selling shares of common stock or convertible securities, the ownership of its existing shareholders would be diluted.
	Presently, the Company derives all of its revenue from agencies of the Federal government. For the fiscal year ended September 30, 2013 and for the three months ended December 31, 2013, the Company derived approximately 96% and 97%, respectively, of its revenue from various contracts awarded by the DVA, the substantial majority of which relate to our provision of healthcare and logistics services to the DVA Consolidated Mail Outpatient Pharmacy (CMOP) program. As of December 31, 2013, these awards from the DVA have anticipated periods of performance ranging from approximately three to up to five years. These agreements are subject to the Federal Acquisition Regulations, and there can be no assurance as to the actual amount of services that the Company will ultimately provide to the DVA under these awards. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we are unable to continue our relationships with the DVA.
Basis of Presentation	'
	Basis of Presentation
	The accompanying consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation.
Reclassifications	'
	Reclassifications
	Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications had no effect on previously reported results of operations or retained earnings.
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill, expected settlement amounts of accounts receivable, measurement of prepaid workers’ compensation, valuation allowances established against accounts receivable and deferred tax assets,  measurement of payroll tax contingencies, accounts payable, workers’ compensation claims, and accrued expenses and the valuation of derivative financial instruments associated with debt agreements. In addition, the Company estimates overhead charges and allocates such charges throughout the year.  Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations.
Revenue Recognition	'
	Revenue Recognition
	DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The recognition of revenue from fixed rates is based upon objective criteria that generally do not require significant estimates that may change over time. DLH recognizes and records revenue on government contracts when it is realized, or realizable, and earned. DLH considers these requirements met when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured.
Goodwill	'
	Goodwill
	In accordance with applicable accounting standards, DLH does not amortize goodwill. DLH continues to review its goodwill for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value.  At September 30, 2013, we performed a goodwill impairment evaluation. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2013. Factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. For the three months ended December 31, 2013, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill.  If an impairment write off of all the goodwill became necessary in future periods, a charge of up to $8.6 million would be expensed in the Consolidated Statement of Operations. All remaining goodwill is attributable to the DLH Solutions operating subsidiary.
Income Taxes	'
	Income Taxes
	DLH accounts for income taxes in accordance with the “liability” method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. At December 31, 2013 and 2012, the Company recorded a 100% valuation allowance against its net deferred tax assets.
	The Financial Accounting Standards Board (“FASB”) has issued authoritative guidance that clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements and prescribes a recognition threshold of more-likely-than-not to be sustained upon examination. Measurement of the tax uncertainty occurs if the recognition threshold has been met. This interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods and disclosures. The Company conducts business solely in the U.S. and, as a result, also files income taxes in various states and other jurisdictions. Given the substantial net operating losses and the related valuation allowance established against such amounts, the Company has concluded that it does not have any uncertain tax positions. There have been no income tax related interest or penalties for the periods presented in these consolidated financial statements. In the normal course of business, the Company and its subsidiaries are subject to examination by Federal and state taxing authorities. The Company’s income tax returns for years subsequent to fiscal 2010 are currently open, by statute, for review by authorities. However, there are no examinations currently in progress and the Company is not aware of any pending audits.
Stock-Based Compensation	'
	Stock-Based Compensation
	Compensation costs for the portion of equity awards (for which the requisite service has not been rendered) that are outstanding are recognized as the requisite service is rendered. The compensation cost for that portion of awards shall be based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. As of December 31, 2013 and 2012, there was approximately $351 thousand and $208 thousand, respectively, remaining unrecognized compensation expense related to non-vested stock based awards to be recognized in future periods.
	Certain awards vest upon satisfaction of certain performance criteria. As permitted, the Company will not recognize expense on the performance based shares until it is probable that these conditions will be achieved. Such charges could be material in future periods.
	Stock Options, Warrants and Restricted Stock
	For options that vest based on the Company’s common stock achieving certain performance criteria, the Company values these awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation cost is recognized over the derived service period determined in the valuation.
	From time to time, the Company grants restricted stock awards to non-employee directors and employees under existing plans. The Company recognizes non-cash compensation expense over the various vesting periods.
	Stock compensation expense totaled $217 thousand for all awards for the three month period ended December 31, 2013 and totaled $90 thousand for all awards for the three months ended December 31, 2012.
	On November 8, 2013, the Management Resources and Compensation Committee (the “Committee”) of the Board of Directors approved for the Company’s named executive officers (the “Executive Officers”) equity awards under the Company’s 2006 Long Term Incentive Plan, as amended (the “2006 Plan”) based upon individual and corporate performance during the fiscal year ended September 30, 2013. The stock options (i) have a ten-year term, (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined pursuant to the 2006 Plan, as reported on NASDAQ, on the date of grant ($1.395), and (iii) vest as follows:
	(a) 50% of the options granted will vest at such time as the Company’s common stock has a closing price of at least $3.00 per share for ten consecutive trading days; and
	(b) 50% of the options granted will vest on the achievement of certain financial and/or business performance objectives as determined by the Committee for the fiscal year ending September 30, 2014.
	The options were awarded in the following amounts to the Executive Officers: Mr. Parker was granted 100,000 options and each of Ms. JohnBull, Mr. Armstrong and Mr. Wilson were granted 75,000 options. Further, the Management Resources and Compensation Committee allocated a pool of options for distribution to non-executive employees of the Company, subject to the same terms and pursuant to the recommendations of the executive management team. Accordingly, 42,000 additional options were granted to non-executive employees of the Company.
	As further described in Note 9, 175,000 options were awarded in connection with extensions of the employment agreements of certain members of the executive management team.
	Warrants are issued from time-to-time to non-employee third parties in order to induce then to enter in certain transactions with the Company. The Company recognizes non-cash expense related to such activity over the estimated period of performance.
	Effective as of November 25, 2013, the Company granted an aggregate of 80,000 shares of restricted stock to its non-executive directors, consistent with its compensation policy for non-executive directors. These shares were issued pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended.  The shares vested immediately and stock expense of $108,800 was recognized in the three months ended December 31, 2013.  Additionally, at December 31, 2013, there were 52,500 shares of unvested restricted stock outstanding from prior year grants to non-executive directors.  There is $150,000 of unrecognized expense related to these unvested restricted stock awards.
	The stock option activity for the three months ended December 31, 2013 is as follows:
		Number of		Weighted				Weighted		Aggregate
		Shares		Average				Average		Intrinsic
				Exercise				Remaining		Value
				Price				Contractual
								Term
	Options outstanding, September 30, 2013	1,612,500		$	1.15			7.9		$	388,000
	Granted	605,000		$	1.35
	Options outstanding, December 31, 2013	2,217,500		$	1.21			8.4		$	792,000
	At December 31, 2013, there were 462,500 options outstanding that were vested and exercisable and an additional 1,755,000 options outstanding that vest to the recipients when the market value of the Company’s stock achieves and maintains defined levels.
	The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.
Changes in Shareholders' Equity	'
	Changes in Shareholders’ Equity
	The following are the changes in Shareholders’ Equity for the three months ended December 31, 2013:
	(Amounts in Thousands)
								Additional											Total
		Common Stock						Paid-In				Accumulated			Treasury Stock				Shareholders’
		Shares		Amount				Capital				Deficit			Shares	Amount			Equity
	BALANCE, September 30, 2013	9,318		$	9			$	75,400			$	(67,601	)	2	$	(24	)	$	7,784
	Director restricted stock grants	80						109											109
	Expense related to employee stock option grants							108											108
	Exercise of convertible debenture	168						210											210
	Exercise of warrants	54						113											113
	Repurchase and cancellation of shares	(12	)					(14		)									(14		)
	Repurchase of shares	(5	)												5	(7		)	(7		)
	Net loss											133							133
	BALANCE, December 31, 2013	9,603		$	9			$	75,926			$	(67,468	)	7	$	(31	)	$	8,436
	On September 18, 2013, we announced that our Board of Directors authorized a stock repurchase program (the Program) under which we could repurchase up to $350,000 of shares of our common stock through open market transactions in compliance with Securities and Exchange Commission Rule 10b-18, privately negotiated transactions, or other means. This repurchase program does not have an expiration date, and we are not obligated to acquire a particular number of shares. Through December 31, 2013, the Company repurchased an aggregate of 17,275 shares of its common stock pursuant to a trading plan entered into by the Company in September 2013 in accordance with Rules 10b5-1 and 10b-18. The average price for all shares repurchased under the program during the quarter ended December 31, 2013 was $1.20 per share. As of December 31, 2013, there is a total of $329,307 remaining for repurchases under the program
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The Company has financial instruments, principally accounts receivable, accounts payable, loan payable, notes payable, and accrued expense. Due to the short term nature of these instruments, DLH estimates that the fair value of all financial instruments at December 31, 2013 and September 30, 2013 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets.  In addition, the Company has historically presented certain common stock warrants and embedded conversion features associated with Convertible Debentures and accounts for such derivative financial instruments at fair value. As further described in Note 6, those convertible debentures matured and the common stock warrants were exercised in the three months ended December 31, 2013.
Earnings (Loss) Per Share	'
	Earnings (Loss) Per Share
	Basic earnings (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities.
	The effects of common stock equivalents of 2,182,804 and 1,686,346 are anti-dilutive for the three months ended December 31, 2013 and 2012, respectively.
	The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per
	share data):
		Three Months Ended
		December 31,
		2013			2012
	Numerator:
	Net income (loss)	$	133		$	(128	)
	Denominator:
	Denominator for basic net income (loss) per share - weighted-average outstanding shares	9,494			9,286
	Effect of dilutive securities:
	Stock options and restricted stock	55			—
	Denominator for diluted net income (loss) per share - weighted-average outstanding shares	9,549			9,286
	Net income (loss) per share - basic	$	0.01		$	(0.01	)
	Net income (loss) per share - diluted	$	0.01		$	(0.01	)

LIQUIDITY_AND_SIGNIFICANT_ACCO2

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Tables)	3 Months Ended
	Dec. 31, 2013
LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES:	'
Schedule of stock option activity	'
	The stock option activity for the three months ended December 31, 2013 is as follows:
		Number of		Weighted				Weighted		Aggregate
		Shares		Average				Average		Intrinsic
				Exercise				Remaining		Value
				Price				Contractual
								Term
	Options outstanding, September 30, 2013	1,612,500		$	1.15			7.9		$	388,000
	Granted	605,000		$	1.35
	Options outstanding, December 31, 2013	2,217,500		$	1.21			8.4		$	792,000
Schedule of changes in Shareholders' Equity	'
	The following are the changes in Shareholders’ Equity for the three months ended December 31, 2013:
	(Amounts in Thousands)
								Additional											Total
		Common Stock						Paid-In				Accumulated			Treasury Stock				Shareholders’
		Shares		Amount				Capital				Deficit			Shares	Amount			Equity
	BALANCE, September 30, 2013	9,318		$	9			$	75,400			$	(67,601	)	2	$	(24	)	$	7,784
	Director restricted stock grants	80						109											109
	Expense related to employee stock option grants							108											108
	Exercise of convertible debenture	168						210											210
	Exercise of warrants	54						113											113
	Repurchase and cancellation of shares	(12	)					(14		)									(14		)
	Repurchase of shares	(5	)												5	(7		)	(7		)
	Net loss											133							133
	BALANCE, December 31, 2013	9,603		$	9			$	75,926			$	(67,468	)	7	$	(31	)	$	8,436
Calculation of basic and diluted net income (loss) per share	'
	The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per
	share data):
		Three Months Ended
		December 31,
		2013			2012
	Numerator:
	Net income (loss)	$	133		$	(128	)
	Denominator:
	Denominator for basic net income (loss) per share - weighted-average outstanding shares	9,494			9,286
	Effect of dilutive securities:
	Stock options and restricted stock	55			—
	Denominator for diluted net income (loss) per share - weighted-average outstanding shares	9,549			9,286
	Net income (loss) per share - basic	$	0.01		$	(0.01	)
	Net income (loss) per share - diluted	$	0.01		$	(0.01	)

ORGANIZATION_AND_BUSINESS_Deta

ORGANIZATION AND BUSINESS: (Details)	3 Months Ended
	Dec. 31, 2013
	business_area
	employee
	location
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Minimum period for which entity has provided professional services to the U.S. Government (years)	'25 years
Number of employees (employee)	1,200
Minimum number of locations in which entity operates (location)	25
Number of integrated business areas of DLH Solutions (business area)	3

LIQUIDITY_AND_SIGNIFICANT_ACCO3

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Liquidty) (Details) (USD $)

3 Months Ended

3 Months Ended

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

31-May-12

Feb. 09, 2011

Nov. 30, 2010

Jul. 29, 2010

21-May-13

31-May-12

Feb. 09, 2011

Jul. 29, 2010

DVA

DVA

DVA

DVA

Line of credit

Line of credit

Line of credit

Line of credit

Line of credit

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Minimum

Maximum

Customer concentration

Customer concentration

Revenue concentration

Revenue concentration

Summary of Significant Accounting Policies [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Net working capital deficit

($300,000)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Accumulated deficit

67,468,000

'

67,601,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Operating income

66,000

-94,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Net Income (loss)

133,000

-128,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum availability

'

'

'

'

'

'

'

'

3,000,000

6,000,000

3,000,000

2,500,000

1,500,000

750,000

1,000,000

500,000

500,000

Amount available under the loan and security agreement

'

'

'

'

'

'

'

'

1,100,000

'

'

'

'

'

'

'

'

Amount outstanding

'

'

'

'

'

'

'

'

900,000

'

'

'

'

'

'

'

'

Cash and cash equivalents

$2,566,000

$3,239,000

$3,408,000

$3,089,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Concentration risk percentage (percent)

'

'

'

'

'

'

97.00%

96.00%

'

'

'

'

'

'

'

'

'

Government Contract, Term of Award

'

'

'

'

'3 years

'5 years

'

'

'

'

'

'

'

'

'

'

'

LIQUIDITY_AND_SIGNIFICANT_ACCO4

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Goodwill And Income Taxes) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
In Millions, unless otherwise specified			Maximum
Goodwill [Line Items]	'	'	'
Charge to be expensed, if an impairment of all the goodwill became necessary	'	'	$8.60
Valuation allowance against deferred tax assets (percent)	100.00%	100.00%	'

LIQUIDITY_AND_SIGNIFICANT_ACCO5

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Stock-Based Compensation) (Details) (USD $)

3 Months Ended

0 Months Ended

2 Months Ended

3 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Nov. 08, 2013

Nov. 08, 2013

Nov. 08, 2013

Nov. 08, 2013

Nov. 08, 2013

Nov. 29, 2013

Nov. 08, 2013

Nov. 29, 2013

Nov. 08, 2013

Oct. 02, 2013

Nov. 08, 2013

Nov. 29, 2013

Dec. 31, 2013

Nov. 08, 2013

Nov. 29, 2013

Nov. 30, 2012

Dec. 31, 2013

Nov. 15, 2012

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

Stock Options

Stock Options

Stock Options

Restricted Stock

Restricted Stock

Restricted Stock

Executive Officer

Executive Officer

Chief executive officer

Ms. JohnBull

Mr. Armstrong

Mr. Armstrong

Mr. Armstrong

Mr. Wilson

Mr. Wilson

Non Executive Employees

Management

2006 Plan

2006 Plan

Non-executive directors

Vesting Period, Criteria, Closing Price A

Vesting Period, Criteria, Business Performance Objectives

Vesting Period, Criteria, Closing Price A

Vesting Period, Criteria, Closing Price A

Certain members of the executive management team

Executive Officer

Mr. Armstrong

Vesting Period, Criteria, Closing Price A

Summary of Significant Accounting Policies [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Remaining costs related to non-vested restricted stock awards (in dollars)

$351,000

$208,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Stock compensation expense

217,000

90,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

108,800

'

'

Period for which options are exercisable

'

'

'

'

'

'

'

'

'

'10 years

'

'10 years

'

'

'

'10 years

'

'

'

'

Share price, Stock price required for options to vest

'

'

$1.40

'

'

'

'

'

'

'

'

'

'

'

'

'

$3

'

'

'

Award vesting rights, percentage

'

'

'

50.00%

50.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Share price, stock price required for options to vest

'

'

'

$3

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of consecutive days considered for common stock price per share to determine vesting of options (days)

'

'

'

'10 days

'

'

'

'

'

'10 days

'

'

'

'

'

'

'

'

'

'

Granted (in shares)

'

'

'

'

'

100,000

75,000

75,000

75,000

37,500

75,000

'

42,000

175,000

605,000

'

'

'

'

'

Restricted stock granted (in shares)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

80,000

Unvested options outstanding (in shares)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

52,500

'

Remaining costs related to unvested restricted stock awards (in dollars)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$150,000

'

Options outstanding that were vested and exercisable (in shares)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

462,500

'

'

'

'

'

Additional options outstanding that are expected to vest (in shares)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,755,000

'

'

'

'

'

LIQUIDITY_AND_SIGNIFICANT_ACCO6

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Stock Option Activity) (Details) (Stock Options, USD $)	3 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Sep. 30, 2013
Stock Options	'	'
Number of Shares	'	'
Outstanding at the beginning of the period (in shares)	1,612,500	'
Granted (in shares)	605,000	'
Outstanding at the end of the period (in shares)	2,217,500	1,612,500
Weighted Average Exercise Price	'	'
Outstanding at the beginning of the period (in dollars per share)	$1.15	'
Granted (in dollars per share)	$1.35	'
Outstanding at the end of the period (in dollars per share)	$1.21	$1.15
Weighted Average Remaining Contractual Term	'	'
Outstanding at the end of the period	'8 years 4 months 24 days	'7 years 10 months 24 days
Aggregate Intrinsic Value	'	'
Outstanding at the end of the period (in dollars)	$792	$388

LIQUIDITY_AND_SIGNIFICANT_ACCO7

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Changes in Shareholders' Equity) (Details) (USD $)	0 Months Ended	3 Months Ended
	Sep. 18, 2013	Nov. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
Changes in Shareholders' Equity	'	'	'	'
BALANCE at the beginning of the period	'	'	$7,784,000	'
Director restricted stock grants	'	'	109,000	'
Expense related to employee stock option grants	'	'	108,000	'
Exercise of convertible debenture	'	'	210,000	'
Adjustments to Additional Paid in Capital, Exercise of Warrants	'	'	113,000	'
Repurchase and cancellation of shares	'	'	-14,000	'
Repurchase of shares, (in shares)	'	17,275	'	'
Repurchase of shares	'	'	-7,000	'
Net Income (loss)	'	'	133,000	-128,000
BALANCE at the end of the period	'	'	8,436,000	'
Stock Repurchase Program, Authorized Amount	350,000	'	'	'
Common Stock Acquired, Average Cost Per Share	'	'	$1.20	'
Remaining repurchases amount	'	'	329,307	'
Common Stock	'	'	'	'
Changes in Shareholders' Equity	'	'	'	'
BALANCE at the beginning of the period (in shares)	'	'	9,318,000	'
BALANCE at the beginning of the period	'	'	9,000	'
Director restricted stock grants (in shares)	'	'	80,000	'
Exercise of convertible debentures, (in shares)	'	'	168,000	'
Exercise of warrants, (in shares)	'	'	54,000	'
Repurchase and cancellation of shares, (in shares)	'	'	-12,000	'
Repurchase of shares, (in shares)	'	'	-5,000	'
BALANCE at the end of the period (in shares)	'	'	9,603,000	'
BALANCE at the end of the period	'	'	9,000	'
Additional Paid-In Capital	'	'	'	'
Changes in Shareholders' Equity	'	'	'	'
BALANCE at the beginning of the period	'	'	75,400,000	'
Director restricted stock grants	'	'	109,000	'
Expense related to employee stock option grants	'	'	108,000	'
Exercise of convertible debenture	'	'	210,000	'
Adjustments to Additional Paid in Capital, Exercise of Warrants	'	'	113,000	'
Repurchase and cancellation of shares	'	'	-14,000	'
BALANCE at the end of the period	'	'	75,926,000	'
Accumulated Deficit	'	'	'	'
Changes in Shareholders' Equity	'	'	'	'
BALANCE at the beginning of the period	'	'	-67,601,000	'
Net Income (loss)	'	'	133,000	'
BALANCE at the end of the period	'	'	-67,468,000	'
Treasury Stock	'	'	'	'
Changes in Shareholders' Equity	'	'	'	'
BALANCE at the beginning of the period (in shares)	'	'	2,000	'
BALANCE at the beginning of the period	'	'	-24,000	'
Repurchase of shares, (in shares)	'	'	5,000	'
Repurchase of shares	'	'	-7,000	'
BALANCE at the end of the period (in shares)	'	'	7,000	'
BALANCE at the end of the period	'	'	($31,000)	'

LIQUIDITY_AND_SIGNIFICANT_ACCO8

LIQUIDITY AND SIGNIFICANT ACCOUNTING POLICIES: (Earnings Per Share) (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Numerator:	'	'
Net income (loss)	$133	($128)
Denominator:	'	'
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares)	9,494,000	9,286,000
Effect of dilutive securities:	'	'
Stock options and restricted stock (shares)	55,000	0
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares)	9,549,000	9,286,000
Net income (loss) per share - basic (dollars per share)	$0.01	($0.01)
Net income (loss) per share - diluted (dollars per share)	$0.01	($0.01)
Anti-dilutive shares	2,182,804	1,686,346

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended	12 Months Ended				3 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Sep. 30, 2008	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2013	Dec. 31, 2013
	subsidiary		DVA	DVA	DVA	Minimum	Maximum
						DVA	DVA
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'	'	'	'	'	'
Contract revenue, nonrecurring	'	'	$10,800,000	'	'	'	'
Direct costs related to nonrecurring contract revenue	'	'	10,100,000	'	'	'	'
Accounts receivable	'	'	'	9,300,000	'	'	'
Accrued payroll (including $8.7 million related to unbilled receivables)	10,900,000	11,138,000	'	8,700,000	'	'	'
Unbilled accounts receivable	'	'	'	9,300,000	9,300,000	'	'
Estimated additional indirect costs and fees associated with contract modification pending final approval	'	'	'	'	'	400,000	600,000
Number of subsidiaries prior to sale of assets related to PEO operation (subsidiary)	17	'	'	'	'	'	'
Remaining liability for penalties and interest related to payroll taxes	1,400,000	1,400,000	'	'	'	'	'
Accrued penalties and interest related to payroll taxes	600,000	'	'	'	'	'	'
Payment of payroll taxes	$0	$0	'	'	'	'	'

PREPAID_WORKERS_COMPENSATION_D

PREPAID WORKERS' COMPENSATION: (Details) (USD $)	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2013
In Thousands, unless otherwise specified			Workers compensation program, Zurich
PREPAID WORKERS' COMPENSATION:	'	'	'
Prepaid asset	$199	$358	$200
Period over which remaining prepaid asset will be received (months)	'	'	'12 months

DEBT_Details

DEBT: (Details) (USD $)

0 Months Ended

3 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

3 Months Ended

Feb. 28, 2011

Dec. 31, 2013

Dec. 31, 2012

Jul. 29, 2010

31-May-12

Dec. 31, 2013

Feb. 09, 2011

Nov. 30, 2010

Dec. 31, 2013

Dec. 31, 2013

21-May-13

Dec. 31, 2012

31-May-12

Feb. 09, 2011

Jul. 29, 2010

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2012

Loan Agreement

Loan Agreement

Loan Agreement

Line of credit

Line of credit

Line of credit

Line of credit

Line of credit

Line of credit

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Line of credit - unbilled receivables

Letter of Credit

Accounts Receivable portion

Prime Rate

Prime Rate

DEBT

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Term of debt instrument (years)

'

'

'

'2 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum availability

'

'

'

$1,500,000

$6,000,000

$3,000,000

$3,000,000

$2,500,000

'

'

$750,000

'

$1,000,000

$500,000

$500,000

'

$1,030,000

'

Extended term of debt instrument (months)

'12 months

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Adjusted sublimit

'

'

'

'

4,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Repayment of over-advance accommodation

'

'

'

'

500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Accounts advance rate (percent)

'

'

'

'

'

85.00%

'

'

'

75.00%

'

'

'

'

'

'

'

'

Interest rate premium (percent)

'

'

'

'

'

'

'

'

'

2.00%

'

'

'

'

'

'

'

'

Interest rate (percent)

'

'

'

'

'

3.25%

'

'

'

'

'

'

'

'

'

'

'

'

Margin (percent)

'

'

'

'

'

'

'

'

1.95%

'

'

'

'

'

'

3.95%

'

'

Reference rate, description

'

'

'

'

'

'

'

'

'Wall Street Journal Prime rate

'

'

'

'

'

'

'Wall Street Journal Prime rate

'

'

Monthly service charge based on the average daily loan balance (percent)

'

0.65%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest rate (percent)

'

5.20%

7.20%

'

'

'

'

'

'

'

'

7.20%

'

'

'

'

'

5.20%

Amount of unused availability under the line

'

'

'

'

'

1,100,000

'

'

'

'

'

'

'

'

'

'

'

'

Amount outstanding

'

'

'

'

'

900,000

'

'

'

'

'

'

'

'

'

'

'

'

Maximum amount of equity interest that the entity can redeem, retire or purchase

'

$50,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Notice period to terminate the Loan Agreement

'

'60 days

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Origination fee (percent)

'

1.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

EQUITY_AND_CONVERTIBLE_DEBENTU1

EQUITY AND CONVERTIBLE DEBENTURES FINANCING (Details) (USD $)

0 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

0 Months Ended

1 Months Ended

Jun. 15, 2012

Apr. 30, 2012

Dec. 31, 2013

Sep. 30, 2013

Apr. 10, 2012

Mar. 16, 2012

Oct. 28, 2013

Oct. 31, 2013

Dec. 31, 2013

Jun. 01, 2011

Jul. 28, 2011

Jun. 01, 2011

Dec. 31, 2013

Oct. 31, 2013

Oct. 31, 2013

Dec. 31, 2013

Rights

Rights

Convertible debentures

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Debenture Purchase Agreement

Warrant

Convertible debentures

Convertible debentures

Convertible debentures

Common Stock

Warrant

Warrant

Convertible debentures

EQUITY AND CONVERTIBLE DEBENTURES FINANCING

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Aggregate principal amount of notes issued

'

'

'

'

'

'

'

'

'

'

$350,000

$350,000

'

'

'

'

Warrants issued to Debenture Purchasers (in shares)

'

'

'

'

'

'

'

'

'

53,846

'

'

'

'

53,846

'

Class of Warrant or Right Adjusted Exercise Price of Warrants or Rights

'

'

'

'

'

'

'

'

'

'

'

'

$1.25

'

'

$0.96

Debt Instrument, Face Amount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

210,000

'

Shares of common stock under conversion feature

'

'

'

'

'

'

'

'

'

'

'

'

'

168,000

'

'

Repayments of Long-term Debt

'

'

'

'

'

'

140,000

'

'

'

'

'

'

'

'

'

Gain (Loss) on Conversion of Convertible Instruments

'

'

'

'

'

'

'

119,000

'

'

'

'

'

'

'

'

Income (expense) recorded related to change in the fair value of financial instruments

'

'

'

'

'

'

'

'

20,000

'

'

'

'

'

'

'

Accrued liability with respect to the warrants

'

'

'

'

'

'

'

'

'

'

'

'

'

'

61,000

'

Rights offering, value of securities available to be issued upon exercise of rights

'

'

'

'

'

4,200,000

'

'

'

'

'

'

'

'

'

'

Number of shares entitled by holder under each subscription right

'

'

'

'

0.532

'

'

'

'

'

'

'

'

'

'

'

Exercise price (in dollars per share)

'

'

'

'

1.3

'

'

'

'

'

'

'

'

'

'

'

Common stock owned by Wynnefield Capital prior to rights offering (as a percent)

'

21.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from rights offering

$4,200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Rights offering (in shares)

3,230,769

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shares outstanding

9,305,702

'

9,603,000

9,318,000

'

'

'

'

'

'

'

'

'

'

'

'

Issuance of number of shares to officers and directors in rights offering

137,678

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Issuance of number of shares to entities affiliated to Wynnefield Capital in rights offering

2,840,251

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

ECONOMIC_DEPENDENCY_Details

ECONOMIC DEPENDENCY: (Details) (Revenue concentration, Customer concentration)	3 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
U.S. Government	'	'
ECONOMIC DEPENDENCY	'	'
Concentration risk percentage (percent)	100.00%	100.00%
DVA	'	'
ECONOMIC DEPENDENCY	'	'
Concentration risk percentage (percent)	97.00%	96.00%

EMPLOYMENT_AGREEMENTS_Details

EMPLOYMENT AGREEMENTS: (Details) (USD $)

3 Months Ended

3 Months Ended

0 Months Ended

0 Months Ended

3 Months Ended

Dec. 31, 2013

Nov. 08, 2013

Dec. 31, 2013

Nov. 29, 2013

Nov. 08, 2013

Oct. 02, 2013

Nov. 29, 2013

Nov. 08, 2013

Nov. 29, 2013

Nov. 29, 2013

Nov. 29, 2013

Oct. 02, 2013

Oct. 02, 2013

Oct. 02, 2013

Oct. 02, 2013

Dec. 31, 2013

Stock Options

Executive Vice President

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

2006 Plan

DLH Solutions, Inc.

DLH Solutions, Inc.

DLH Solutions, Inc.

DLH Solutions, Inc.

Maximum

President

President

Executive Vice President

Executive Vice President

Executive Vice President

Executive Vice President

Executive Vice President

President

2006 Plan

2006 Plan

2006 Plan

Vesting Period, Criteria, Closing Price A

Vesting on One Year Anniversary of Commencement Date

Vesting Period, Criteria, Closing Price A

Vesting Period, Criteria, Closing Price A

President

President

President

Stock Options

Vested on Commencement Date

Vesting on One Year Anniversary of Commencement Date

Stock-Based Compensation

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Salary continuance, period

'1 year

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Lump sum payment of salary, (in percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

150.00%

Officers' Compensation

'

'

'

$215,000

'

'

'

'

'

'

'

$210,000

'

'

'

'

Expected Bonus Based on Performance, Percentage

'

'

'

50.00%

'

'

'

'

'

'

'

50.00%

'

'

'

'

Percentage Adjustment to Target Bonus for Every One Percent Variance Between Targets and Actual Results

'

'

'

2.00%

'

'

'

'

'

'

'

2.00%

'

'

'

'

Minimum Percentage of Results for Bonus Payment

'

'

'

90.00%

'

'

'

'

'

'

'

90.00%

'

'

'

'

Maximum Bonus Percentage

'

'

'

70.00%

'

'

'

'

'

'

'

70.00%

'

'

'

'

Granted (in shares)

'

'

605,000

'

75,000

'

75,000

75,000

37,500

37,500

'

'

100,000

50,000

50,000

'

Period for which options are exercisable

'

'

'

'

'

'10 years

'

'

'

'10 years

'

'

'

'

'

'

Annual Increase in Salary Based on Performance, Percentage

'

'

'

5.00%

'

'

'

'

'

'

'

'

'

'

'

'

Share price, Stock price required for options to vest

'

$1.40

'

'

'

'

'

'

'

'

$3

'

'

'

'

'

Number of consecutive days considered for common stock price per share to determine vesting of options (days)

'

'

'

'

'

'

'

'

'

'10 days

'

'

'

'

'

'