DLH (DLHC) 10-Q 5 Aug 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	DLH Holdings Corp.
Entity Central Index Key	785,557
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,550,536

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Revenue	$ 16,781	$ 15,692	$ 48,357	$ 44,914
Direct expenses	13,743	13,384	40,055	38,295
Gross margin	3,038	2,308	8,302	6,619
General and administrative expenses	2,270	2,013	6,719	5,980
Depreciation and amortization	5	27	45	80
Income from operations	763	268	1,538	559
Other income (expense), net	(34)	(17)	(723)	23
Income before income taxes	729	251	815	582
Income tax expense	292	0	326	0
Net income	$ 437	$ 251	$ 489	$ 582
Net income per share, basic (in dollars per share)	$ 0.05	$ 0.03	$ 0.05	$ 0.06
Net income (loss) per share - diluted (dollars per share)	$ 0.04	$ 0.03	$ 0.05	$ 0.06
Weighted average common shares outstanding
Basic (in shares)	9,552	9,602	9,580	9,566
Diluted (in shares)	9,956	9,677	9,990	9,660

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 4,738	$ 3,908
Accounts receivable, net	3,079	12,372
Deferred taxes, net	84	84
Other current assets	418	510
Total current assets	8,319	16,874
Equipment and improvements, net	187	63
Deferred taxes, net	4,187	4,513
Goodwill	8,595	8,595
Other long-term assets	43	27
Total assets	21,331	30,072
CURRENT LIABILITIES
Accrued payroll	2,109	11,465
Accounts payable, accrued expenses, and other current liabilities	4,642	4,746
Total current liabilities	6,751	16,211
LONG TERM LIABILITIES
Other long term liability	10	15
Total liabilities	$ 6,761	$ 16,226
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 9,551 at June 30, 2015 and 9,568 at September 30, 2014; outstanding 9,551 at June 30, 2015 and 9,566 at September 30, 2014	10	10
Additional paid-in capital	76,315	76,083
Accumulated deficit	(61,755)	(62,244)
Treasury stock, 0 shares at cost at June 30, 2015 and 3 shares at cost at September 30, 2014	0	(3)
Total shareholders’ equity	14,570	13,846
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 21,331	$ 30,072

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Sep. 30, 2014
Statement of Financial Position [Abstract]
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)	$ 0.001	$ 0.001
Common stock, authorized shares	40,000,000	40,000,000
Common stock, issued shares	9,551,000	9,568,000
Common stock, outstanding shares	9,551,000	9,566,000
Treasury stock, shares	0	3,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities
Net income	$ 489	$ 582
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization including financing costs	45	89
Change in fair value of derivative financial instruments	0	(99)
Stock based compensation expense	418	372
Deferred taxes, net	326	0
Settlement of retroactive payment claim, net	629	0
Changes in operating assets and liabilities
Accounts receivable	(13)	(311)
Other current assets	91	(35)
Other assets	0	1,030
Accounts payable, accrued payroll, accrued expenses and other current liabilities	(782)	(87)
Other long term assets/liabilities	(21)	(3)
Net cash provided by operating activities	1,182	1,538
Investing activities
Purchase of equipment and improvements	(169)	(13)
Net cash used in investing activities	(169)	(13)
Financing activities
Net payments on bank loan payable	0	(951)
Proceeds from stock purchase	0	52
Repayments of capital lease obligations	0	(22)
Net repayment on convertible debentures	0	(140)
Repurchased shares of common stock held as treasury stock	0	(10)
Repurchased shares of common stock subsequently canceled	(183)	(21)
Net cash used in financing activities	(183)	(1,092)
Net increase in cash and cash equivalents	830	433
Cash and cash equivalents at beginning of period	3,908	3,408
Cash and cash equivalents at end of period	4,738	3,841
Supplemental disclosures of cash flow information
Cash paid during the period for interest	27	116
Cash paid during the period for income taxes	0	0
Reduction of accounts receivable related to retroactive payment claim	(9,306)	0
Reduction of accrued payroll related to retroactive wage and benefit payments	$ 8,677	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited 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. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the quarter ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending September 30, 2015 . For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual report on Form 10-K for the year ended September 30, 2014 filed on December 10, 2014 .

Business Overview

Business Overview	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview 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 two broad integrated revenue streams: Healthcare Delivery Solutions and Logistics & Technical Services. Our customers, a majority of whom are within the Departments of Defense ("DoD") and Veterans Affairs ("DVA"), benefit from proven business process management 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 its principal executive offices at 1776 Peachtree Street, Atlanta, Georgia 30309. Presently, the Company derives all of its revenue from agencies of the Federal government. 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 June 30, 2015 and 2014 , 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 continues to be the Department of Veterans Affairs (DVA), at 95% and 97% of revenue for the nine months ended June 30, 2015 and 2014 , respectively. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of June 30, 2015 and 2014 . We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. See Note 5, Supporting Financial Information-Accounts Receivable. DLH remains dependent upon the continuation of its relationship with the DVA. As of June 30, 2015 , awards from the DVA have anticipated periods of performance ranging from approximately one to up to three years . These agreements are subject to the Federal Acquisition Regulations. While there can be no assurance as to the actual amount of services that the Company will ultimately provide to the DVA under its current contracts, we believe that our strong working relationship and our effective service delivery support ongoing performance for the contract term. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationship with the DVA.

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Jun. 30, 2015
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The effective date of these revisions is for reporting periods beginning after December 15, 2016, with early application not permitted. The Company is evaluating the impact of this guidance. In June 2014, the FASB issued guidance related to accounting for share-based payments for certain performance stock awards. The effective date of this guidance is for annual periods and interim periods within those periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the impact of this guidance. In August 2014, the Financial Accounting Standards Board (FASB) issued guidance regarding management's going concern evaluations. The guidance requires management to evaluate, at each interim and annual reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued, and provide related disclosures. The guidance is effective for all entities for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not believe the standard will have a material impact on our financial statement disclosures. In June 2015, the Financial Accounting Standards Board (FASB) issued guidance covering a wide range of topics in the codification to make minor corrections or minor improvements. These changes are not expected to have a significant effect on current accounting practice or create a significant administrative cost. The guidance is effective for all entities beginning after December 15, 2015, and for annual and interim periods thereafter, and early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

Reclassifications

Reclassifications	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications	Reclassifications Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. Such reclassifications have no effect on previously reported results of operations or accumulated deficit.

Supporting Financial Informatio

Supporting Financial Information	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supporting Financial Information	Supporting Financial Information Accounts Receivable (in thousands) June 30, September 30, Ref 2015 2014 Billed receivables $ 2,523 $ 2,569 Unbilled receivables-retroactive payment claim (a) — 9,306 Unbilled receivables-other 556 497 Total unbilled receivables 556 9,803 Total accounts receivable 3,079 12,372 Less: Allowance for doubtful accounts (b) — — Accounts receivable, net $ 3,079 $ 12,372 Ref (a): As previously reported, during the fiscal year ended September 30, 2008, DLH Holdings Corp. (the “Company”) accrued salaries and benefits of $10.1 million related to the estimated resolution of retroactive payment cases asserted by the Department of Labor (“DOL”). During the same period, the Company recognized revenues of $10.8 million related to expected recovery of these costs, plus estimated indirect costs, under contractual arrangements with the Department of Veterans Affairs (“DVA”). At September 30, 2014, 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 September 30, 2014. In September 2014, we submitted a claim to the DVA seeking a final determination and resolution of this matter. During the quarter ended March 31, 2015, we were advised that the DOL would not take further action with respect to the retroactive payment cases and that it would not object to the DVA’s resolution of this matter with the Company. As a result, we had no obligation for the payment of these accrued salaries and benefits. Because no retroactive wage payments were required, we have no contractual recovery of costs from the DVA. Accordingly, in order to resolve this matter, on March 30, 2015, we entered into a mutual release of claims with the DVA, pursuant to which both parties agreed to fully release each other from any and all claims arising pursuant to this matter. As a result of the closure of this issue, as a part of our reporting for the quarter ended March 31, 2015, we removed the accruals of estimated revenue and expense which were recorded in the year ended September 30, 2008. Further, we reported a reduction of $9.3 million in accounts receivable, a reduction of $8.7 million in accrued liabilities for salaries to employees and related benefits, and a net charge to our earnings of approximately $629 thousand for the fiscal quarter ended March 31, 2015 relating to the resolution of this matter. The net expense related to this issue was non-cash and not related to income from current operations. Ref (b): Accounts receivable are non-interest bearing, unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both June 30, 2015 and September 30, 2014 . Other Current Assets (in thousands) June 30, September 30, Ref 2015 2014 Workers’ compensation receivable (a) $ 39 $ 199 Prepaid insurance expense 214 176 Prepaid benefits 53 — Other prepaid expenses 112 135 Other current assets $ 418 $ 510 Ref (a): 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. DLH estimates that the remaining workers compensation receivable of approximately $39 thousand will be received within the next twelve months. Equipment and improvements, net (in thousands) June 30, September 30, Ref 2015 2014 Furniture and equipment $ 139 $ 139 Computer equipment 292 126 Computer software 433 430 Leasehold improvements 24 24 Total fixed assets 888 719 Less accumulated depreciation and amortization (701 ) (656 ) Equipment and improvements, net (a) $ 187 $ 63 Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 5 ) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Accrued Payroll (in thousands) June 30, September 30, Ref 2015 2014 Accrued payroll related to billed receivables $ 1,759 $ 2,440 Accrued payroll related to retroactive payment claim (a) — 8,677 Accrued payroll related to unbilled accounts receivable 350 348 Total accrued payroll related to unbilled accounts receivable 350 9,025 Total accrued payroll $ 2,109 $ 11,465 Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”. Accounts Payable, Accrued Expenses, and Other Current Liabilities (in thousands) June 30, September 30, Ref 2015 2014 Accounts payable $ 128 $ 779 Accrued benefits 1,026 720 Accrued bonus and incentive compensation 558 693 Accrued workers compensation insurance 1,125 767 Other accrued expenses 312 339 Payroll tax accrual (a) 1,493 1,448 Accounts payable, accrued expenses, and other current liabilities $ 4,642 $ 4,746 Ref (a): From 2006 through 2009, DLH received notices from the Internal Revenue Service (“IRS”) claiming taxes, interest and penalties due related to payroll taxes. These notices are predominantly related to the former PEO operations which were sold in fiscal 2003. The liability includes estimated accrued penalties and interest totaling approximately $674 thousand . Other Income (Expense) (in thousands) (in thousands) Three Months Ended Nine Months Ended June 30, June 30, Ref 2015 2014 2015 2014 Interest expense, net $ (23 ) $ (24 ) $ (72 ) $ (75 ) Amortization of deferred financing costs — — — (10 ) Change in value of financial instruments (a) — — — 99 Miscellaneous other income (expense), net (b) (11 ) 7 (651 ) 9 Other income (expense), net (34 ) (17 ) (723 ) 23 Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures. Such instruments did not meet the requirements for qualified hedge accounting under GAAP. See Note 12 regarding maturity and closure of the convertible debentures. Ref (b): Current fiscal year activity reflects $629 thousand charge related to retroactive payment claim described above in “Accounts Receivable.”

Liquidity

Liquidity	9 Months Ended
	Jun. 30, 2015
Cash and Cash Equivalents [Abstract]
Liquidity	Liquidity At June 30, 2015 , the Company had cash and cash equivalents of approximately $4.7 million , net working capital of approximately $1.6 million , and an accumulated deficit of approximately $(62) million . For the nine months ended June 30, 2015 , the Company realized operating income of approximately $1.5 million and net income of approximately $489 thousand , as compared to operating income and net income of $559 thousand and $582 thousand respectively for the nine months ended June 30, 2014 . The Company has a credit facility with a lending institution which provides a maximum amount of $6 million . The current term of the credit facility expires on July 29, 2016 and thereafter shall automatically renew on each anniversary date thereof for subsequent twelve month terms unless terminated by either party. Presently, the maximum availability under this loan facility is $3 million , subject to eligible accounts receivable. The interest rate on both the Accounts Receivable and Unbilled Accounts portion of the loan was 4.0% at June 30, 2015 , and September 30, 2014 . At June 30, 2015 , our unused loan availability was approximately $2.5 million , comprised of a $1.4 million letter of credit reserve and $1.1 million of unused loan capacity. DLH required no borrowing on the credit facility during third quarter ended June 30, 2015 . Management believes, at present, that: (a) cash and cash equivalents of approximately $4.7 million as of June 30, 2015 ; (b) the amount available under its line of credit (which is limited to the amount of eligible assets); and (c) planned operating cash flow should be sufficient to support the Company's operations for twelve months from the date of these financial statements.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies 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, valuation allowances established against accounts receivable and deferred tax assets, and measurement of loss development on workers’ compensation claims. 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 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, 2014 , 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, 2014 . 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 nine months ended June 30, 2015 , 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 Income. 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. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either June 30, 2015 and 2014 . We report interest and penalties as a component of income tax expense. In the fiscal quarters ending June 30, 2015 and 2014 , we recognized no interest and no penalties related to income taxes. The Company has adequate net operating loss carryforwards to offset against any taxable income in the current period. The Company has deferred tax assets before valuation allowance of $15.4 million and $15.7 million as of June 30, 2015 and September 30, 2014 , respectively. We have recorded a valuation allowance of $11.1 million as of June 30, 2015 and $11.1 million on September 30, 2014 . Tax years open for examination are 2011 and forward. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 . Deposits held with financial institutions may exceed the $250,000 limit.

Stock-based Compensatin, Equity

Stock-based Compensatin, Equity Grants, and Warrants	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation, Equity Grants, and Warrants	Stock-based Compensation, Equity Grants, and Warrants Stock-based compensation expense All grants of equity are presently made under the 2006 Long Term Incentive Plan. As of June 30, 2015 , 0.9 million shares remained available for grant under the Plan. Options issued under the Plan are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of income: (in thousands) (in thousands) Three Months Ended Nine Months Ended Ref June 30, June 30, 2015 2014 2015 2014 DLH employees $ 72 $ 78 $ 241 $ 263 Non-employee directors (a) — — 177 109 Total compensation expense $ 72 $ 78 $ 418 $ 372 Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares vested immediately and stock expense was recognized accordingly. Unrecognized stock-based compensation expense (in thousands) Nine Months Ended June 30, Ref 2015 2014 Unrecognized expense for DLH employees (a) $ 105 $ 196 Unrecognized expense for non-employee directors (b) 125 150 Total unrecognized expense $ 230 $ 346 Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. Ref (b): Unrecognized stock expense related to prior years equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. The shares will vest and expense will be recorded upon future satisfaction of specified performance. Stock option activity for the nine months ended June 30, 2015 The aggregate intrinsic value in the table below 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. (in years) Weighted Weighted Average (in thousands) (in thousands) Average Remaining Aggregate Number of Exercise Contractual Intrinsic Ref Shares Price Term Value Options outstanding, September 30, 2014 2,380 $1.40 7.81 $ 1,589 Granted — — Canceled (a) (44 ) $1.40 Options outstanding, June 30 2015 2,336 $1.40 7.05 $ 3,128 Ref (a): Shares canceled upon termination of employment or expiration of period to complete performance conditions. Stock options shares outstanding, vested and unvested for the period ended (in thousands) Number of Shares June 30, Ref 2015 2014 Vested and exercisable 968 463 Unvested (a) 1,368 1,692 Options outstanding 2,336 2,155 Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company has financial instruments, including 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 June 30, 2015 and September 30, 2014 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share is calculated by dividing income 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 per share is calculated by dividing income available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method. (in thousands) Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income $ 437 $ 251 $ 489 $ 582 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 9,552 9,602 9,580 9,566 Effect of dilutive securities: Stock options and restricted stock 404 75 410 94 Denominator for diluted net income per share - weighted-average outstanding shares 9,956 9,677 9,990 9,660 Earnings per share - basic $ 0.05 $ 0.03 $ 0.05 $ 0.06 Earnings per share - diluted $ 0.04 $ 0.03 $ 0.05 $ 0.06

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations Payments Due By Period Obligations Less than 1-3 4-5 More than 5 (Amounts in thousands) Total 1 Year Years Years Years Loan Payable (1) $ — $ — $ — $ — — Operating Leases (2) 2,333 130 530 547 1,126 Total Obligations $ 2,333 $ 130 $ 530 $ 547 $ 1,126 (1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement. As of June 30, 2015 there were no outstanding amounts. (2) On April 27, 2015, as part of its facilities consolidation effort, the Company entered into a lease agreement (the “Lease”) with Piedmont Center, 1-4 LLC (the “Landlord”) for the premises known as Suite 700 at Three Piedmont Center, 3565 Piedmont Road, N.E. Atlanta, Georgia 30305. The rentable floor area of the demised premises is 12,275 square feet. The Lease expires 8.7 years following the “Rental Commencement Date”. The Rental Commencement Date will occur when the Landlord has substantially completed the build-out of the demised premises, including any tenant improvements. The Company currently expects the Rent Commencement Date to occur, and occupation of the demised premises to begin, during September 2015. Upon occupancy, the Company will pay base rental payments for the demised premises in the amount of $20,970 per month during the first year of the lease. The base rent due under the Lease shall increase yearly based on an agreed-upon annual rate of increase and in the final year of the Lease, the base rental payment will be $25,552 per month. Upon occupancy and conditioned upon the Company’s compliance with its obligations under the Lease, the Landlord will excuse a total of $120 thousand in rent due during the initial eight ( 8 ) months of the Lease term. Additionally, approximately 4,000 square feet of the leased premises will not be occupied, and rent will not be due, during the initial two years of the Lease term. The monthly rent payments under the Lease include budgeted operating expenses and real estate taxes, as such terms are defined in the Lease. However, the Company will make an additional payment each year if actual operating expenses exceed the budget. The Company has a right, at its option and subject to the terms of the Lease, to extend the term of the Lease for one ( 1 ) five year period at a market rate. In addition, the Landlord has agreed to provide the Company with a right of first refusal to lease additional space if the Landlord desires to lease a portion of certain adjacent premises. Workers Compensation We accrue workers compensation expense based on claims submitted, applying actuarial loss development factors to estimate the costs incurred but not yet recorded. Our accrued liability for claims development for the periods ended June 30, 2015 and September 30, 2014 was $1.1 million and $0.8 million , respectively. Legal Proceedings 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. 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. Collective Bargaining Agreement Union representation has been certified for non-management employees at our Chicago location. The Company and the union have entered into collective bargaining discussions. Management does not expect this agreement to materially impact results of operations in the future.

Equity and Convertible Debentur

Equity and Convertible Debentures Financing	9 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Equity and Convertible Debentures Financing	Equity and Convertible Debentures Financing Repurchases of Securities On September 18, 2013, the Company announced that our Board of Directors authorized a stock repurchase program (the Program) under which we could repurchase up to $350 thousand of shares of our common stock through open market transactions in compliance with Securities and Exchange Commission Rule 10b-18, privately negotiated transactions, or other means. This repurchase program does not have an expiration date. The following table provides certain information with respect to the status of our publicly announced stock repurchase program as of third quarter ended June 30, 2015 : Period Total Number of Shares Purchased Average Price Total Number of Shares Purchased As Part of Publicly Announced Programs ($ in thousands) Value of Shares that May Yet Be Purchased Under the Plan or Program First quarter total 1,353 $ 1.98 1,353 $ 256 Second quarter total 76,600 $ 2.25 76,600 $ 85 April 2015 3,907 $ 2.03 3,907 $ 77 May 2015 — — — $ 77 June 2015 — — — $ 77 Third quarter total 3,907 $ 2.03 3,907 $ 77 Convertible Debentures Financing As has been previously disclosed, certain entities affiliated with Wynnefield Capital, Inc., the Company’s largest stockholder, owned convertible debentures in an aggregate principal amount of $350 thousand and warrants to purchase an aggregate of 53,846 shares of common stock. These instruments were issued pursuant to a debenture purchase agreement in June 2011. The warrants were exercisable at a price of $0.96 until June 2016 and the conversion rate of the convertible debentures was $1.25 . Upon maturity on October 28, 2013, the principal amount of $210 thousand of convertible debentures was converted into $168 thousand shares of common stock and the principal amount of $140 thousand on the remaining debenture was repaid in full. In addition, in October 2013, the holders of the Warrants exercised such Warrants in full for 53,846 shares of common stock. A gain of $119 thousand was recognized, which represented the change in the fair value of the derivative immediately prior to conversion. 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 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 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2015
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.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
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, valuation allowances established against accounts receivable and deferred tax assets, and measurement of loss development on workers’ compensation claims. 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 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, 2014 , 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, 2014 . 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 nine months ended June 30, 2015 , 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 Income. 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. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either June 30, 2015 and 2014 . We report interest and penalties as a component of income tax expense. In the fiscal quarters ending June 30, 2015 and 2014 , we recognized no interest and no penalties related to income taxes. The Company has adequate net operating loss carryforwards to offset against any taxable income in the current period. The Company has deferred tax assets before valuation allowance of $15.4 million and $15.7 million as of June 30, 2015 and September 30, 2014 , respectively. We have recorded a valuation allowance of $11.1 million as of June 30, 2015 and $11.1 million on September 30, 2014 . Tax years open for examination are 2011 and forward.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 . Deposits held with financial institutions may exceed the $250,000 limit.

Supporting Financial Informat20

Supporting Financial Information (Tables)	9 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts Receivable (in thousands) June 30, September 30, Ref 2015 2014 Billed receivables $ 2,523 $ 2,569 Unbilled receivables-retroactive payment claim (a) — 9,306 Unbilled receivables-other 556 497 Total unbilled receivables 556 9,803 Total accounts receivable 3,079 12,372 Less: Allowance for doubtful accounts (b) — — Accounts receivable, net $ 3,079 $ 12,372 Ref (a): As previously reported, during the fiscal year ended September 30, 2008, DLH Holdings Corp. (the “Company”) accrued salaries and benefits of $10.1 million related to the estimated resolution of retroactive payment cases asserted by the Department of Labor (“DOL”). During the same period, the Company recognized revenues of $10.8 million related to expected recovery of these costs, plus estimated indirect costs, under contractual arrangements with the Department of Veterans Affairs (“DVA”). At September 30, 2014, 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 September 30, 2014. In September 2014, we submitted a claim to the DVA seeking a final determination and resolution of this matter. During the quarter ended March 31, 2015, we were advised that the DOL would not take further action with respect to the retroactive payment cases and that it would not object to the DVA’s resolution of this matter with the Company. As a result, we had no obligation for the payment of these accrued salaries and benefits. Because no retroactive wage payments were required, we have no contractual recovery of costs from the DVA. Accordingly, in order to resolve this matter, on March 30, 2015, we entered into a mutual release of claims with the DVA, pursuant to which both parties agreed to fully release each other from any and all claims arising pursuant to this matter. As a result of the closure of this issue, as a part of our reporting for the quarter ended March 31, 2015, we removed the accruals of estimated revenue and expense which were recorded in the year ended September 30, 2008. Further, we reported a reduction of $9.3 million in accounts receivable, a reduction of $8.7 million in accrued liabilities for salaries to employees and related benefits, and a net charge to our earnings of approximately $629 thousand for the fiscal quarter ended March 31, 2015 relating to the resolution of this matter. The net expense related to this issue was non-cash and not related to income from current operations. Ref (b): Accounts receivable are non-interest bearing, unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both June 30, 2015 and September 30, 2014 .
Schedule of Other Current Assets	Other Current Assets (in thousands) June 30, September 30, Ref 2015 2014 Workers’ compensation receivable (a) $ 39 $ 199 Prepaid insurance expense 214 176 Prepaid benefits 53 — Other prepaid expenses 112 135 Other current assets $ 418 $ 510 Ref (a): 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. DLH estimates that the remaining workers compensation receivable of approximately $39 thousand will be received within the next twelve months.
Equipment and Improvemnts, Net	Equipment and improvements, net (in thousands) June 30, September 30, Ref 2015 2014 Furniture and equipment $ 139 $ 139 Computer equipment 292 126 Computer software 433 430 Leasehold improvements 24 24 Total fixed assets 888 719 Less accumulated depreciation and amortization (701 ) (656 ) Equipment and improvements, net (a) $ 187 $ 63 Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 5 ) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred.
Accrued Payroll	Accrued Payroll (in thousands) June 30, September 30, Ref 2015 2014 Accrued payroll related to billed receivables $ 1,759 $ 2,440 Accrued payroll related to retroactive payment claim (a) — 8,677 Accrued payroll related to unbilled accounts receivable 350 348 Total accrued payroll related to unbilled accounts receivable 350 9,025 Total accrued payroll $ 2,109 $ 11,465 Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”.
Accounts Payable, Accrued Expenses, and Other Current Liabilities	Accounts Payable, Accrued Expenses, and Other Current Liabilities (in thousands) June 30, September 30, Ref 2015 2014 Accounts payable $ 128 $ 779 Accrued benefits 1,026 720 Accrued bonus and incentive compensation 558 693 Accrued workers compensation insurance 1,125 767 Other accrued expenses 312 339 Payroll tax accrual (a) 1,493 1,448 Accounts payable, accrued expenses, and other current liabilities $ 4,642 $ 4,746 Ref (a): From 2006 through 2009, DLH received notices from the Internal Revenue Service (“IRS”) claiming taxes, interest and penalties due related to payroll taxes. These notices are predominantly related to the former PEO operations which were sold in fiscal 2003. The liability includes estimated accrued penalties and interest totaling approximately $674 thousand .
Other Income (Expense)	Other Income (Expense) (in thousands) (in thousands) Three Months Ended Nine Months Ended June 30, June 30, Ref 2015 2014 2015 2014 Interest expense, net $ (23 ) $ (24 ) $ (72 ) $ (75 ) Amortization of deferred financing costs — — — (10 ) Change in value of financial instruments (a) — — — 99 Miscellaneous other income (expense), net (b) (11 ) 7 (651 ) 9 Other income (expense), net (34 ) (17 ) (723 ) 23 Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures. Such instruments did not meet the requirements for qualified hedge accounting under GAAP. See Note 12 regarding maturity and closure of the convertible debentures. Ref (b): Current fiscal year activity reflects $629 thousand charge related to retroactive payment claim described above in “Accounts Receivable.”

Stock-based Compensation, Equit

Stock-based Compensation, Equity Grants, and Warrants (Tables)	9 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation Expense	Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of income: (in thousands) (in thousands) Three Months Ended Nine Months Ended Ref June 30, June 30, 2015 2014 2015 2014 DLH employees $ 72 $ 78 $ 241 $ 263 Non-employee directors (a) — — 177 109 Total compensation expense $ 72 $ 78 $ 418 $ 372 Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares vested immediately and stock expense was recognized accordingly. Unrecognized stock-based compensation expense (in thousands) Nine Months Ended June 30, Ref 2015 2014 Unrecognized expense for DLH employees (a) $ 105 $ 196 Unrecognized expense for non-employee directors (b) 125 150 Total unrecognized expense $ 230 $ 346 Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. Ref (b): Unrecognized stock expense related to prior years equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. The shares will vest and expense will be recorded upon future satisfaction of specified performance.
Stock Option Activity	The aggregate intrinsic value in the table below 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. (in years) Weighted Weighted Average (in thousands) (in thousands) Average Remaining Aggregate Number of Exercise Contractual Intrinsic Ref Shares Price Term Value Options outstanding, September 30, 2014 2,380 $1.40 7.81 $ 1,589 Granted — — Canceled (a) (44 ) $1.40 Options outstanding, June 30 2015 2,336 $1.40 7.05 $ 3,128 Ref (a): Shares canceled upon termination of employment or expiration of period to complete performance conditions.
Stock Option Shares Outstanding, Vested and Expected to Vest	Stock options shares outstanding, vested and unvested for the period ended (in thousands) Number of Shares June 30, Ref 2015 2014 Vested and exercisable 968 463 Unvested (a) 1,368 1,692 Options outstanding 2,336 2,155 Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Diluted earnings per share	Diluted earnings per share is calculated using the treasury stock method. (in thousands) Three Months Ended Nine Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income $ 437 $ 251 $ 489 $ 582 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 9,552 9,602 9,580 9,566 Effect of dilutive securities: Stock options and restricted stock 404 75 410 94 Denominator for diluted net income per share - weighted-average outstanding shares 9,956 9,677 9,990 9,660 Earnings per share - basic $ 0.05 $ 0.03 $ 0.05 $ 0.06 Earnings per share - diluted $ 0.04 $ 0.03 $ 0.05 $ 0.06

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	9 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	Contractual Obligations Payments Due By Period Obligations Less than 1-3 4-5 More than 5 (Amounts in thousands) Total 1 Year Years Years Years Loan Payable (1) $ — $ — $ — $ — — Operating Leases (2) 2,333 130 530 547 1,126 Total Obligations $ 2,333 $ 130 $ 530 $ 547 $ 1,126 (1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement. As of June 30, 2015 there were no outstanding amounts. (2) On April 27, 2015, as part of its facilities consolidation effort, the Company entered into a lease agreement (the “Lease”) with Piedmont Center, 1-4 LLC (the “Landlord”) for the premises known as Suite 700 at Three Piedmont Center, 3565 Piedmont Road, N.E. Atlanta, Georgia 30305. The rentable floor area of the demised premises is 12,275 square feet. The Lease expires 8.7 years following the “Rental Commencement Date”. The Rental Commencement Date will occur when the Landlord has substantially completed the build-out of the demised premises, including any tenant improvements. The Company currently expects the Rent Commencement Date to occur, and occupation of the demised premises to begin, during September 2015.

Equity and Convertible Debent24

Equity and Convertible Debentures Financing Equity and Convertible Debentures Financings (Tables)	9 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Class of Treasury Stock [Table Text Block]	The following table provides certain information with respect to the status of our publicly announced stock repurchase program as of third quarter ended June 30, 2015 : Period Total Number of Shares Purchased Average Price Total Number of Shares Purchased As Part of Publicly Announced Programs ($ in thousands) Value of Shares that May Yet Be Purchased Under the Plan or Program First quarter total 1,353 $ 1.98 1,353 $ 256 Second quarter total 76,600 $ 2.25 76,600 $ 85 April 2015 3,907 $ 2.03 3,907 $ 77 May 2015 — — — $ 77 June 2015 — — — $ 77 Third quarter total 3,907 $ 2.03 3,907 $ 77

Business Overview (Details)

Business Overview (Details)	9 Months Ended
	Jun. 30, 2015employeebusiness_arealocation	Jun. 30, 2014
Concentration Risk [Line Items]
Minimum period for which entity has provided professional services to the U.S. Government (years)	25 years
Number of employees (employee) | employee	1,200
Minimum number of locations in which entity operates (location) | location	25
Number of broad integrated revenue streams	2
US Government [Member] | Revenue concentration | Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	100.00%	100.00%
DVA | Revenue concentration | Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	95.00%	97.00%
DVA | Minimum
Concentration Risk [Line Items]
Term of government contract	1 year
DVA | Maximum
Concentration Risk [Line Items]
Term of government contract	3 years

Supporting Financial Informat26

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2008	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 3,079			$ 3,079			$ 12,372
Less: Allowance for doubtful accounts	0			0			0
Accounts Receivable, Net	3,079			3,079			12,372
Revenue	16,781		$ 15,692	48,357	$ 44,914
Reduction of accrued payroll related to retroactive wage and benefit payments				8,677	0
Settlement of retroactive payment claim, net				629	$ 0
Billed Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	2,523			2,523			2,569
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	556			556			9,803
DVA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract revenue nonrecurring						$ 10,800
Department of Labor | Unfavorable Regulatory Action
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loss Contingency Accrual, Provision						$ 10,100
Employee-related Liabilities, Accrued Payroll Attributable to Retroactive Payment Cases	0			0			8,677
Reduction of accrued payroll related to retroactive wage and benefit payments		$ 8,700
Settlement of retroactive payment claim, net				629
Department of Labor | Unfavorable Regulatory Action | Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	0	$ 9,306		0
Accrued Income Receivable | Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 556			$ 556			$ 497

Supporting Financial Informat27

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Workers’ compensation receivable	$ 39	$ 199
Prepaid insurance expense	214	176
Prepaid benefits	53	0
Other prepaid expenses	112	135
Other current assets	$ 418	$ 510

Supporting Financial Informat28

Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Furniture and equipment	$ 139	$ 139
Computer equipment	292	126
Computer software	433	430
Leasehold improvements	24	24
Property, Plant and Equipment, Gross	888	719
Less accumulated depreciation and amortization	(701)	(656)
Equipment and improvements, net	$ 187	$ 63
Minimum | Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum | Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years

Supporting Financial Informat29

Supporting Financial Information - Accrued Payroll (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued payroll related to billed receivables	$ 1,759	$ 2,440
Accrued payroll related to unbilled accounts receivable	350	348
Total accrued payroll related to unbilled accounts receivable	350	9,025
Accrued payroll	2,109	11,465
Department of Labor | Unfavorable Regulatory Action
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued payroll related to retroactive payment claim	$ 0	$ 8,677

Supporting Financial Informat30

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 128	$ 779
Accrued benefits	1,026	720
Accrued bonus and incentive compensation	558	693
Accrued workers compensation insurance	1,125	767
Other accrued expenses	312	339
Payroll tax accrual	1,493	1,448
Total accrued expenses and other current liabilities	4,642	$ 4,746
Accrued interest and penalties	$ 674

Supporting Financial Informat31

Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest expense, net	$ (23)	$ (24)	$ (72)	$ (75)
Amortization of deferred financing costs	0	0	0	(10)
Change in value of financial instruments	0	0	0	99
Miscellaneous other income (expense), net	(11)	7	(651)	9
Other income (expense) net	$ (34)	$ (17)	(723)	23
Settlement of retroactive payment claim, net			(629)	$ 0
Unfavorable Regulatory Action | Department of Labor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Settlement of retroactive payment claim, net			$ (629)

Liquidity (Details)

Liquidity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 4,738,000	$ 3,841,000	$ 4,738,000	$ 3,841,000	$ 3,908,000	$ 3,408,000
Net working capital	1,600,000		1,600,000
Accumulated deficit	(61,755,000)		(61,755,000)		$ (62,244,000)
Operating income	763,000	268,000	1,538,000	559,000
Net income	437,000	$ 251,000	489,000	$ 582,000
Line of Credit Facility [Line Items]
Amount of unused availability under the line	2,500,000		2,500,000
Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum availability	6,000,000		6,000,000
Amount of unused availability under the line	1,100,000		1,100,000
Accounts receivables
Line of Credit Facility [Line Items]
Maximum availability	$ 3,000,000		$ 3,000,000
Interest rate (percent)	4.00%		4.00%
Unbilled receivables
Line of Credit Facility [Line Items]
Interest rate (percent)	4.00%		4.00%		4.00%
Letter of Credit
Line of Credit Facility [Line Items]
Amount of unused availability under the line	$ 1,400,000		$ 1,400,000

Significant Accounting Polici33

Significant Accounting Policies - Goodwill, Income Taxes, and Cash and Cash Equivalents (Details) - USD ($)	Jun. 30, 2015	Sep. 30, 2014
Goodwill [Line Items]
Goodwill	$ 8,595,000	$ 8,595,000
Deferred tax assets	15,400,000	15,700,000
Valuation allowance	11,100,000	$ 11,100,000
Cash, FDIC Insured Amount	$ 250,000

Stock-based Compensation, Equ34

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 72	$ 78	$ 418	$ 372
Total unrecognized expense	230	346	230	346
DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	105	196	105	196
Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	125	150	125	150
Selling, General and Administrative Expenses | DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	72	78	241	263
Selling, General and Administrative Expenses | Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 0	$ 0	$ 177	$ 109
Long Term Incentive Plan 2006 | Employee Stock Option
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares available for grant	0.9		0.9
Expiration term			10 years

Stock-based Compensation, Equ35

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Jun. 30, 2015
Number of Shares
Outstanding at the beginning of the period (in shares)	2,155	2,380
Granted (in shares)		0
Cancelled (in shares)		(44)
Outstanding at the end of the period (in shares)	2,380	2,336
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)		$ 1.40
Granted (in dollars per share)		0
Cancelled (in dollars per share)		1.40
Outstanding at the end of the period (in dollars per share)	$ 1.40	$ 1.40
Weighted Average Remaining Contractual Term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 9 months 22 days	7 years 18 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	7 years 9 months 22 days	7 years 18 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)		$ 1,589
Outstanding at the end of the period (in dollars)	$ 1,589	$ 3,128

Stock-based Compensation, Equ36

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested and exercisable	968		463
Unvested	1,368		1,692
Option outstanding	2,336	2,380	2,155

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator [Abstract]
Net income	$ 437	$ 251	$ 489	$ 582
Denominator [Abstract]
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares)	9,552	9,602	9,580	9,566
Effect of dilutive securities:
Stock options and restricted stock (shares)	404	75	410	94
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares)	9,956	9,677	9,990	9,660
Net income (loss) per share - basic (dollars per share)	$ 0.05	$ 0.03	$ 0.05	$ 0.06
Net income (loss) per share - diluted (dollars per share)	$ 0.04	$ 0.03	$ 0.05	$ 0.06

Commitment and Contingencies (D

Commitment and Contingencies (Details) $ in Thousands	Jun. 30, 2015USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Long-term Debt	$ 0
Long-term Debt, Less than 1 Year	0
Long-term Debt, 1-3 Years	0
Long-term Debt, 4-5 Years	0
Long-term Debt, after 5 years	0
Operating Leases, Future Minimum Payments Due	2,333
Operating Leases, Less than 1 Year	130
Operating Leases, 1-3 Years	530
Operating Leases, 4-5 years	547
Operating Leases, after 5 years	1,126
Contractual Obligation	2,333
Contractual Obligation, Less than 1 Year	130
Contractual Obligation, 1-3 Years	530
Contractual Obligation, 4-5 years	547
Contractual Obligation, after 5 years	$ 1,126

Commitment and Contingencies -

Commitment and Contingencies - Additional Information (Details)	Dec. 31, 2024USD ($)	Apr. 27, 2015USD ($)ft²loan_extension	Jun. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Area of real estate | ft²		12,275
Term of contract		8 years 8 months 12 days
Monthly rent expense		$ 20,970
Rent expense excused		$ 120,000
Term of excused rent		8 months
Unoccupied Area of Real Estate | ft²		4,000
Operating Lease, Term of Excused Rent Due to Unoccupied Space		2 years
Number of Lease Extensions | loan_extension		1
Renewal term		5 years
Accrued workers compensation insurance			$ 1,125,000	$ 767,000
Forecast
Accounts, Notes, Loans and Financing Receivable [Line Items]
Monthly rent expense	$ 25,552.46

Equity and Convertible Debent40

Equity and Convertible Debentures Financing - Repurchase of Securities (Details) - USD ($)	1 Months Ended			3 Months Ended
	Jun. 30, 2015	May. 31, 2015	Apr. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 18, 2013
Equity [Abstract]
Stock Repurchase Program, Authorized Amount							$ 350,000
($ in thousands) Value of Shares that May Yet Be Purchased Under the Plan or Program	$ 77,000	$ 77,000	$ 77,000	$ 77,000	$ 85,000	$ 256,000
Shares purchased (in shares)	0	0	3,907	3,907	76,600	1,353
Average Price Paid Per Share	$ 0	$ 0	$ 2.03	$ 2.03	$ 2.25	$ 1.98

Equity and Convertible Debent41

Equity and Convertible Debentures Financing (Details)	Oct. 28, 2013USD ($)	Jun. 01, 2011USD ($)$ / sharesshares	Oct. 31, 2013USD ($)shares	Dec. 31, 2013USD ($)
Convertible debentures
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Repayments of Long-term Debt	$ 140,000
Debenture Purchase Agreement
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Gain (Loss) on Conversion of Convertible Instruments			$ 119,000
Income (expense) recorded related to change in the fair value of financial instruments				$ 20,000
Debenture Purchase Agreement | Warrant
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Warrants issued to Debenture Purchasers (in shares) | shares		53,846
Debenture Purchase Agreement | Convertible debentures
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Aggregate principal amount of notes issued		$ 350,000
Class of Warrant or Right Adjusted Exercise Price of Warrants or Rights | $ / shares		$ 1.25
Debenture Purchase Agreement | Common Stock | Convertible debentures
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Shares of common stock under conversion feature | shares			168,000
Debenture Purchase Agreement | Warrant
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Warrants issued to Debenture Purchasers (in shares) | shares			53,846
Class of Warrant or Right Adjusted Exercise Price of Warrants or Rights | $ / shares		$ 0.96
Debt Instrument, Face Amount	$ 210,000
Accrued liability with respect to the warrants			$ 61,000