DLH (DLHC) 10-K 16 Dec 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2015	Nov. 30, 2015	Mar. 31, 2015
Document and Entity Information
Entity Registrant Name	DLH Holdings Corp.
Entity Central Index Key	785,557
Document Type	10-K
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
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
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Public Float			$ 8,419,975

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 65,346,000	$ 60,493,000
Direct expenses	53,658,000	51,534,000
Gross margin	11,688,000	8,959,000
General and administrative expenses	9,137,000	8,089,000
Depreciation and amortization	55,000	106,000
Income from operations	2,496,000	764,000
Total other income (expense), net	744,000	(4,000)
Income before income taxes	3,240,000	760,000
Income tax expense(benefit)	5,488,000	4,597,000
Net income	$ 8,728,000	$ 5,357,000
Earnings Per Share [Abstract]
Net income (loss) per share - basic (dollars per share)	$ 0.91	$ 0.56
Net income (loss) per share - diluted (dollars per share)	$ 0.87	$ 0.54
Weighted average common shares outstanding
Basic (in shares)	9,573	9,570
Diluted (in shares)	10,039	9,839

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents		$ 5,558	$ 3,908
Accounts receivable, net		3,286	12,372
Deferred taxes, net		982	84
Other current assets		429	510
Total current assets		10,255	16,874
Equipment and improvements, net		336	63
Deferred taxes, net		9,325	4,513
Goodwill		8,595	8,595
Other long-term assets		113	27
Total assets		28,624	30,072
CURRENT LIABILITIES
Accrued payroll		2,795	11,465
Accounts payable, accrued expenses, and other current liabilities		2,851	4,746
Total current liabilities		5,646	16,211
LONG TERM LIABILITIES
Other long term liability		109	15
Total liabilities		$ 5,755	$ 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 September 30, 2015 and 9,568 at September 30, 2014; outstanding 9,551 at September 30, 2015 and 9,566 at September 30, 2014		10	10
Additional paid-in capital		76,375	76,083
Accumulated deficit		(53,516)	(62,244)
Treasury stock, 0 shares at cost at September 30, 2015 and 2 shares at cost at September 30, 2014		0	(3)
Total shareholders’ equity	[1]	22,869	13,846
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$ 28,624	$ 30,072
[1]	(1) Sum of the detail may not equal the Balance total due to rounding.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 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	2,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net income	$ 8,728	$ 5,357
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization including financing costs	55	116
Change in fair value of derivative financial instruments	0	(99)
Non-cash equity grants	479	472
Deferred taxes, net	(5,710)	(4,597)
Settlement of retroactive payment claim, net	629	0
Settlement of legacy payroll tax issue, net	(1,477)	0
Changes in operating assets and liabilities
Accounts receivable	(220)	(429)
Other current assets	83	89
Other assets	0	1,030
Accounts payable, accrued payroll, accrued expenses and other current liabilities	(506)	(269)
Other long term assets/liabilities	(78)	(5)
Net cash provided by operating activities	1,983	1,665
Investing activities
Purchase of equipment and improvements	(142)	(13)
Net cash used in investing activities	(142)	(13)
Financing activities
Net payments on bank loan payable	0	(951)
Repayments of capital lease obligations	(8)	(22)
Net repayment on convertible debentures	0	(140)
Proceeds from stock purchase	0	52
Repurchased shares of common stock held as treasury stock	0	21
Repurchased shares of common stock subsequently canceled	(183)	(112)
Net cash used in financing activities	(191)	(1,152)
Net decrease in cash and cash equivalents	1,650	500
Cash and cash equivalents at beginning of period	3,908	3,408
Cash and cash equivalents at end of period	5,558	3,908
Supplemental disclosures of cash flow information
Cash paid during the period for interest	36	124
Equipment purchases with capital leases	187	0
Cash paid during the period for income taxes	0	0
Non-cash settlement of warrants	0	62
Reduction of accounts receivable related to retroactive payment claim	$ (9,306)	0
Reduction of accrued payroll related to retroactive wage and benefit payments		$ 0

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands		Total		Common Stock	Additional Paid-in Capital		Retained Earnings	Treasury Stock
Beginning Balance, Shares at Sep. 30, 2013				9,318,000				2,000
Beginning Balance at Sep. 30, 2013		$ 7,784	[1]	$ 9	$ 75,400	[1]	$ (67,601)	$ (24)
Director restricted stock grants (shares)				80,000
Director restricted stock grants	[1]	109			109
Expense related to employee stock option grants	[1]	363			363
Exercise of convertible debentures (shares)				168,000
Exercise of convertible debentures	[1]	210			209
Exercise of warrants (shares)				54,000
Exercise of warrants		114	[1]	$ 1	114	[1]
Cancellations of shares (shares)				(52,000)				(2,000)
Cancellations of shares		(88)	[1]		(112)	[1]		$ 24
Purchase of common stock (shares)				(2,000)				(2,000)
Purchase of common stock		(3)	[1]					$ (3)
Net income		$ 5,357	[1]				5,357
Ending Balance, Shares at Sep. 30, 2014		9,566,000		9,566,000				2,000
Ending Balance at Sep. 30, 2014		$ 13,846	[1]	$ 10	76,083	[1]	(62,244)	$ (3)
Director restricted stock grants (shares)				66,000
Director restricted stock grants	[1]	177			177
Expense related to employee stock option grants	[1]	302			302
Purchase of common stock (shares)				(81,000)				(2,000)
Purchase of common stock		(183)	[1]		(186)	[1]		$ 3
Net income		$ 8,728	[1]				8,728
Ending Balance, Shares at Sep. 30, 2015		9,551,000		9,551,000				0
Ending Balance at Sep. 30, 2015		$ 22,869	[1]	$ 10	$ 76,375	[1]	$ (53,516)	$ 0
[1]	(1) Sum of the detail may not equal the Balance total due to rounding.

Basis of Presentation

Basis of Presentation	12 Months Ended
	Sep. 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 and with the instructions to Form 10-K and Regulation S-K.

Business Overview

Business Overview	12 Months Ended
	Sep. 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 1,250 skilled technicians, logisticians, engineers, healthcare and support personnel at more than 30 locations around the United States. DLH’s operating subsidiary, DLH Solutions, Inc., provides services and solutions in two major market areas: Healthcare Delivery Solutions and Logistics & Technical Services. Our government customers, a majority of whom are within the Departments of Veterans Affairs (“DVA”) and Defense (“DoD”), benefit from our proven leadership, processes, technical excellence, industry-leading productivity and affordability enhancement tools, and Lean Six Sigma-based quality improvement processes. The remaining portion of DLH’s business is comprised of customers within other Federal agencies, including the Departments of Interior, Justice, and Agriculture 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 3565 Piedmont Road NE, Building 3 Suite 700, Atlanta Georgia 30305. 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 years ended September 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 96% of revenue for the twelve months ended September 30, 2015 and 2014 . In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of September 30, 2015 and 2014 . We believe that the credit risk associated with our receivables is limited due to the credit worthiness of these customers. Accordingly, DLH remains dependent upon the continuation of its relationship with the DVA. As of September 30, 2015 , contracts with 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 contract, 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 relationships with the DVA.

New Accounting Pronouncements

New Accounting Pronouncements	12 Months Ended
	Sep. 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. In August 2015, the FASB issued updated guidance deferring the effective date for all entities by one year. Public business entities should apply the guidance to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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. In August 2015, the Financial Accounting Standards Board (FASB) issued guidance regarding presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, adding SEC paragraphs in conjunction with simplifying the presentation of debt issuance costs. The guidance requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. This standard is not expected to have a material impact on the Company's consolidated financial statements. In September 2015, Financial Accounting Standards Board (FASB) issued guidance regarding business combinations for which the accounting is incomplete by the end of the reporting period in which the combination occurs, and during the measurement period have an adjustment to provisional amounts recognized. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with earlier application permitted for financial statements that have not been issued. This standard is not expected to have a material impact on the Company’s consolidated financial statements.

Supporting Financial Informatio

Supporting Financial Information Supporting Financial Information	12 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supporting Financial Information	Supporting Financial Information Accounts Receivable (in thousands) September 30, September 30, Ref 2015 2014 Billed receivables $ 2,498 $ 2,569 Unbilled receivables-retroactive payment claim (a) — 9,306 Unbilled receivables-other 788 497 Total unbilled receivables 788 9,803 Total accounts receivable 3,286 12,372 Less: Allowance for doubtful accounts (b) — — Accounts receivable, net $ 3,286 $ 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 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 September 30, 2015 and 2014 . Other Current Assets (in thousands) September 30, September 30, Ref 2015 2014 Workers’ compensation receivable (a) $ 29 $ 199 Prepaid insurance expense 156 176 Other prepaid expenses 244 135 Other current assets $ 429 $ 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 $29 thousand will be received within the next twelve months. Accrued Payroll (in thousands) September 30, September 30, Ref 2015 2014 Accrued payroll related to billed receivables $ 2,259 $ 2,440 Accrued payroll related to retroactive payment claim (a) $ — $ 8,677 Accrued payroll related to unbilled accounts receivable $ 536 $ 348 Total accrued payroll related to unbilled accounts receivable (a) $ 536 $ 9,025 Total accrued payroll $ 2,795 $ 11,465 Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”. Equipment and Improvements, net (in thousands) September 30, September 30, Ref 2015 2014 Furniture and equipment $ 197 $ 139 Computer equipment 162 126 Computer software 297 430 Leasehold improvements 63 24 Total fixed assets 719 719 Less accumulated depreciation and amortization (383 ) (656 ) Equipment and improvements, net (a) $ 336 $ 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 7 ) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Accounts Payable, Accrued Expenses, and Other Current Liabilities (in thousands) September 30, September 30, Ref 2015 2014 Accounts payable $ 87 $ 779 Accrued benefits 267 720 Accrued bonus and incentive compensation 858 693 Accrued workers compensation insurance 945 767 Other accrued expenses 694 339 Payroll tax payable (a) — 1,448 Total Accrued expenses and other current liabilities $ 2,851 $ 4,746 Ref (a): In prior periods, DLH had received notices from the IRS claiming taxes, interest and penalties were due related to payroll taxes. These notices were predominantly related to the former PEO operations which were sold in fiscal year 2003. During fiscal year ended September 30, 2015 , DLH engaged tax counsel who was able to demonstrate that there were no taxes due related to this legacy issue. In September 2015 , DLH received confirmation from the IRS that no taxes, interest, or penalties were due or otherwise payable. Other Income (Expense) (in thousands) Year Ended September 30, Ref 2015 2014 Interest expense, net $ (80 ) $ (99 ) Amortization of deferred financing costs — (10 ) Change in value of financial instruments (a) — 99 Miscellaneous other income (expense), net (b) 824 6 Total other income (expense), net $ 744 $ (4 ) Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures in prior year ended September 30, 2014 . Ref (b): Current year miscellaneous other income includes $1.5 million from resolution of the legacy payroll tax issue in fourth quarter 2015 , partially offset by the $0.6 million , net, March 2015 non-cash settlement of the retroactive payment issue.

Liquidity

Liquidity	12 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents [Abstract]
Liquidity	Liquidity At September 30, 2015 , the Company had cash and cash equivalents of approximately $5.6 million , net working capital of approximately $4.6 million . For the year ended September 30, 2015 , the Company realized income before taxes of approximately $3.2 million , as compared to $0.8 million for the year ended September 30, 2014 . The Company has a credit facility with a lending institution which provides a maximum amount of $6.0 million and includes a maximum amount available under the unbilled facility of $1.0 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 $3.0 million , subject to eligible accounts receivable. The interest rate on the acounts receivable portion of the loan was 4.0% at September 30, 2015 , and September 30, 2014 . The interest rate on the unbilled accounts portion was 4.0% at September 30, 2015 , and September 30, 2014 . At September 30, 2015 , our loan availability was approximately $2.64 million , comprised of a $1.35 million letter of credit reserve and $1.29 million of unused loan capacity. Management believes, at present, that: (a) cash and cash equivalents of approximately $5.6 million as of September 30, 2015 ; (b) the amount available under its line of credit (which is limited to the amount of eligible assets); (c) planned operating cash flow; and (d) 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.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Sep. 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, expected settlement amounts of accounts receivable, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and the valuation of derivative financial instruments associated with debt agreements. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. 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. We account for the effect of a change in accounting estimate during the period in which the change occurs. 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, 2015 , 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, 2015 . 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. 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. 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 not be sustained upon examination. We had no uncertain tax positions at either September 30, 2015 and 2014 . We report interest and penalties as a component of income tax expense. In the fiscal years ending September 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 recorded a valuation allowance against its net deferred tax assets of $1.8 million and $11.1 million at September 30, 2015 and 2014 , respectively. 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	12 Months Ended
	Sep. 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 September 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. 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 operations: (in thousands) Year Ended Ref September 30, 2015 2014 DLH employees $ 302 $ 363 Non-employee directors (a) 177 109 Total compensation expense $ 479 $ 472 Ref (a): Equity grants of restricted stock to non-employee directors, 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) Period Ended September 30, Ref 2015 2014 Unrecognized expense for DLH employees (a) $ 44 $ 346 Unrecognized expense for non-employee directors (b) 96 125 Total unrecognized expense $ 140 $ 471 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. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. This expense is expected to be recognized over the next 1.8 years , with a weighted average life of 1.2 years . 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 year ended September 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, 2013 1,613 $1.15 7.9 $ 388 Granted (a) 830 $1.52 Canceled (63 ) $1.40 Options outstanding, September 30 , 2014 2,380 $1.40 7.8 $ 1,589 Canceled (56 ) $1.40 Options outstanding, September 30, 2015 2,324 $1.40 6.8 $ 3,649 Ref (a): Option grants to DLH employees were valued using a binomial model, under the following criteria: • average risk free interest rates of 2.55% for 2014; • expected volatility of 65.8% for 2014; • contractual lives and expected lives were 10 years for 2014; and • no dividend yield was contemplated for either period. The resulting average fair values were $0.76 for 2014. No grants new grants issued for 2015. Stock options shares outstanding, vested and unvested for the period ended: (in thousands) Number of Shares September 30, Ref 2015 2014 Vested and exercisable (a) 1,093 896 Unvested (b) 1,231 1,484 Options outstanding 2,324 2,380 Ref (a): Weighted average exercise price of vested and exercisable shares was $1.40 and $1.41 at September 30, 2015 and 2014 , respectively. Aggregate intrinsic value was $1.6 million and $0.6 million at September 30, 2015 and 2014 , respectively. Weighted average contractual term was 7.3 years and 8.0 years at September 30, 2015 and 2014 , respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

Fair Value of Financial Instrum

Fair Value of Financial Instruments Fair Value of Financial Instruments	12 Months Ended
	Sep. 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 September 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 (Loss) Per Share

Earnings (Loss) Per Share	12 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Earnings (Loss) 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 (loss) 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) Year Ended September 30, 2015 2014 Numerator: Net income $ 8,728 $ 5,357 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 9,573 9,570 Effect of dilutive securities: Stock options and restricted stock 466 269 Denominator for diluted net income per share - weighted-average outstanding shares 10,039 9,839 Net income per share - basic (a) $ 0.91 $ 0.56 Net income per share - diluted (a) $ 0.87 $ 0.54 Ref (a): For fiscal years ended September 30, 2015 and September 30, 2014 , we realized a $5.5 million and $4.6 million tax benefit, respectively, related to the release of a portion of our valuation allowance to reflect the amount of our deferred tax asset that we expect to realize in future years. This resulted in an improvement of net income per share basic and diluted for both fiscal years.

Commitment and Contingencies

Commitment and Contingencies	12 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations Payments Due By Period Obligations Less than 2-3 4-5 More than 5 (Amounts in thousands) Total 1 Year Years Years Years Loan Payable (1) $ — $ — $ — $ — $ — Operating Leases (2) 2,298 161 530 550 1,057 Total Obligations $ 2,298 $ 161 $ 530 $ 550 $ 1,057 (1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement. (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 Rental Commencement Date began on September 1, 2015. 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. 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 years ended September 30, 2015 and 2014 was $945 thousand and $767 thousand , respectively. Legal Proceedings 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.

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes DLH accounts for income taxes in accordance with the liability method. Under this method, 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 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. DLH recorded a $5.5 million and $4.6 million benefit for income tax for fiscal year ended September 30, 2015 and 2014, respectively.The benefit related principally to the release of a portion of our valuation allowance, to reflect the amount of our deferred tax asset that we expect to realize in future years. For each fiscal year, that release was based upon our estimate of future taxable earnings based on results generated. To project taxable income in the carryforward period, we first estimated revenue for the carryforward period based on the expected performance under current contracts, plus expected changes in the contract base. Using these estimates of revenue, we assumed a proportional level of book income as was generated from the revenues recorded in each fiscal year. We further assumed that tax goodwill amortization would continue through its 15 year life. Using the taxable income projection, we calculated the amount of NOL utilization that would be achieved within each loss year’s carryforward period. Our estimate of future taxable income will be revised at least annually or more frequently upon the occurrence of an event which warrants a new estimate. At September 30, 2015 the Company had net operating losses of approximately $36.8 million and $2.4 million for U.S. and state tax return purposes, respectively. The NOLs begin to expire in 2021 and continue to expire through 2033. As a result of our analysis of state net operating losses, we determined that a substantial portion of those losses related to jurisdictions for which a future benefit is not anticipated. Further, we analyzed our unutilized tax credits and determined that it is not likely that we will realize a future benefit from those credits. Accordingly, we reduced our deferred tax assets in the fiscal year ended September 30, 2015 to reflect the expected realization of benefit from these tax attributes. An analysis of DLH's deferred tax asset and liability is as follows: Year Ended September 30, (amounts in thousands) 2015 2014 Current deferred income tax asset: Net operating loss carryforwards and tax credits $ 391 $ 98 Accrued liabilities 753 122 Valuation allowance (162 ) (136 ) Net current deferred tax asset $ 982 $ 84 Year Ended September 30, (amounts in thousands) 2015 2014 Deferred income tax asset (liability): Net operating loss carry forwards and tax credits $ 12,524 $ 16,556 Stock based compensation 767 646 Fixed and intangible assets (2,379 ) (2,176 ) Other items, net 5 488 Valuation allowance (1,592 ) (11,001 ) Net deferred tax asset $ 9,325 $ 4,513 The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows: Year Ended September 30, (amounts in thousands) 2015 2014 Current expense (benefit) $ 220 $ 7 Deferred expense (benefit) (5,708 ) (4,604 ) Total expense (benefit) $ (5,488 ) $ (4,597 ) The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations: Year Ended September 30, (amounts in thousands) 2015 2014 Federal statutory rate $ 1,134 $ 258 State taxes, net 155 46 Other permanent items 7 6 Change in valuation allowance (6,784 ) (4,907 ) $ (5,488 ) $ (4,597 ) We file income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. We are no longer subject to federal income tax examinations for years before 2013 and to state and local income tax examinations by tax authorities for years before 2011.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Sep. 30, 2015
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	Quarterly Financial Data (Unaudited) A summary of quarterly information is as follows (in thousands, except per share data) 2015 Quarters First Second Third Fourth Revenue $ 15,682 $ 15,893 $ 16,781 $ 16,990 Gross margin 2,533 2,730 3,038 3,387 Income from operations (1) 259 515 763 958 Other income (expense), net (2) (36 ) (651 ) (34 ) 1,466 Income (loss) before income taxes $ 223 $ (136 ) $ 729 $ 2,424 Income tax expense(benefit) (2) $ 89 $ (54 ) $ 292 (5,814 ) Net income (loss) $ 134 $ (82 ) $ 437 $ 8,238 Earnings (loss) per share: (3) Basic $ 0.01 $ (0.01 ) $ 0.05 $ 0.86 Diluted $ 0.01 $ (0.01 ) $ 0.04 $ 0.82 2014 Quarters First Second Third Fourth Revenue $ 14,477 $ 14,745 $ 15,692 $ 15,579 Gross margin 2,112 2,199 2,308 2,340 Income from operations 66 225 268 205 Other income (expense), net 67 (27 ) (17 ) (27 ) Income before income taxes $ 133 $ 198 $ 251 $ 178 Income tax expense(benefit) (2) $ — $ — $ — $ (4,597 ) Net income $ 133 $ 198 $ 251 $ 4,775 Earnings per share: (3) Basic $ 0.01 $ 0.02 $ 0.03 $ 0.50 Diluted $ 0.01 $ 0.02 $ 0.03 $ 0.48 _______________________________________________________________________________ (1) Sum of the quarterly amounts may not equal the full fiscal year due to the effect of rounding. (2) Refer to Note 4, Supporting Financial Information, for detailed explanation of the settlement of the retroactive payment claim in second quarter 2015, favorable closure of the legacy payroll tax payable in fourth quarter 2015, and income tax benefit recorded in fourth quarter 2015 and fourth quarter 2014. (3) Sum of the quarterly net income (loss) per share amounts may not equal the full fiscal year net income per share amount due to the effect of changes during the year in the number of shares outstanding.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefits Plans	Employee Benefit Plans As of September 30, 2015 , DLH and its subsidiaries maintain the DLH 401(k) Plan (the "401(k) Plan") , a defined contribution and supplemental pension plan for the benefit of its eligible employees. DLH may provide a discretionary matching contribution of of a participant's elective contributions under the 401 (k) Plan. DLH recorded related expense of $24.0 thousand in fiscal 2015 and $5.0 thousand in fiscal year 2014 . A participant is always fully vested in his or her elective contributions and vests in Company matching contributions over a 4 year period.

Subsequent Events

Subsequent Events	12 Months Ended
	Sep. 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 Polici21

Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 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, expected settlement amounts of accounts receivable, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and the valuation of derivative financial instruments associated with debt agreements. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. 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. We account for the effect of a change in accounting estimate during the period in which the change occurs.
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, 2015 , 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, 2015 . 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. 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. 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 not be sustained upon examination
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 Informat22

Supporting Financial Information (Tables)	12 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	(in thousands) September 30, September 30, Ref 2015 2014 Billed receivables $ 2,498 $ 2,569 Unbilled receivables-retroactive payment claim (a) — 9,306 Unbilled receivables-other 788 497 Total unbilled receivables 788 9,803 Total accounts receivable 3,286 12,372 Less: Allowance for doubtful accounts (b) — — Accounts receivable, net $ 3,286 $ 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 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 September 30, 2015 and 2014 .
Schedule of Other Current Assets	(in thousands) September 30, September 30, Ref 2015 2014 Workers’ compensation receivable (a) $ 29 $ 199 Prepaid insurance expense 156 176 Other prepaid expenses 244 135 Other current assets $ 429 $ 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 $29 thousand will be received within the next twelve months.
Schedule of Accrued Payroll	(in thousands) September 30, September 30, Ref 2015 2014 Accrued payroll related to billed receivables $ 2,259 $ 2,440 Accrued payroll related to retroactive payment claim (a) $ — $ 8,677 Accrued payroll related to unbilled accounts receivable $ 536 $ 348 Total accrued payroll related to unbilled accounts receivable (a) $ 536 $ 9,025 Total accrued payroll $ 2,795 $ 11,465 Ref (a): Related to retroactive payment claim described above in “Accounts Receivable”.
Equipment and Improvemnts, Net	(in thousands) September 30, September 30, Ref 2015 2014 Furniture and equipment $ 197 $ 139 Computer equipment 162 126 Computer software 297 430 Leasehold improvements 63 24 Total fixed assets 719 719 Less accumulated depreciation and amortization (383 ) (656 ) Equipment and improvements, net (a) $ 336 $ 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 7 ) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred.
Accounts Payable, Accrued Expenses, and Other Current Liabilities	Accounts Payable, Accrued Expenses, and Other Current Liabilities (in thousands) September 30, September 30, Ref 2015 2014 Accounts payable $ 87 $ 779 Accrued benefits 267 720 Accrued bonus and incentive compensation 858 693 Accrued workers compensation insurance 945 767 Other accrued expenses 694 339 Payroll tax payable (a) — 1,448 Total Accrued expenses and other current liabilities $ 2,851 $ 4,746 Ref (a): In prior periods, DLH had received notices from the IRS claiming taxes, interest and penalties were due related to payroll taxes. These notices were predominantly related to the former PEO operations which were sold in fiscal year 2003. During fiscal year ended September 30, 2015 , DLH engaged tax counsel who was able to demonstrate that there were no taxes due related to this legacy issue. In September 2015 , DLH received confirmation from the IRS that no taxes, interest, or penalties were due or otherwise payable.
Other Income (Expense)	Other Income (Expense) (in thousands) Year Ended September 30, Ref 2015 2014 Interest expense, net $ (80 ) $ (99 ) Amortization of deferred financing costs — (10 ) Change in value of financial instruments (a) — 99 Miscellaneous other income (expense), net (b) 824 6 Total other income (expense), net $ 744 $ (4 ) Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures in prior year ended September 30, 2014 . Ref (b): Current year miscellaneous other income includes $1.5 million from resolution of the legacy payroll tax issue in fourth quarter 2015 , partially offset by the $0.6 million , net, March 2015 non-cash settlement of the retroactive payment issue.

Significant Accounting Polici23

Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Calculation of basic and diluted net income (loss) per share	Diluted earnings per share is calculated using the treasury stock method. (in thousands) Year Ended September 30, 2015 2014 Numerator: Net income $ 8,728 $ 5,357 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 9,573 9,570 Effect of dilutive securities: Stock options and restricted stock 466 269 Denominator for diluted net income per share - weighted-average outstanding shares 10,039 9,839 Net income per share - basic (a) $ 0.91 $ 0.56 Net income per share - diluted (a) $ 0.87 $ 0.54 Ref (a): For fiscal years ended September 30, 2015 and September 30, 2014 , we realized a $5.5 million and $4.6 million tax benefit, respectively, related to the release of a portion of our valuation allowance to reflect the amount of our deferred tax asset that we expect to realize in future years. This resulted in an improvement of net income per share basic and diluted for both fiscal years.

Stock-based Compensation, Equit

Stock-based Compensation, Equity Grants, and Warrants (Tables)	12 Months Ended
	Sep. 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 operations: (in thousands) Year Ended Ref September 30, 2015 2014 DLH employees $ 302 $ 363 Non-employee directors (a) 177 109 Total compensation expense $ 479 $ 472 Ref (a): Equity grants of restricted stock to non-employee directors, 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) Period Ended September 30, Ref 2015 2014 Unrecognized expense for DLH employees (a) $ 44 $ 346 Unrecognized expense for non-employee directors (b) 96 125 Total unrecognized expense $ 140 $ 471 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. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. This expense is expected to be recognized over the next 1.8 years , with a weighted average life of 1.2 years . 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	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, 2013 1,613 $1.15 7.9 $ 388 Granted (a) 830 $1.52 Canceled (63 ) $1.40 Options outstanding, September 30 , 2014 2,380 $1.40 7.8 $ 1,589 Canceled (56 ) $1.40 Options outstanding, September 30, 2015 2,324 $1.40 6.8 $ 3,649 Ref (a): Option grants to DLH employees were valued using a binomial model, under the following criteria: • average risk free interest rates of 2.55% for 2014; • expected volatility of 65.8% for 2014; • contractual lives and expected lives were 10 years for 2014; and • no dividend yield was contemplated for either period. The resulting average fair values were $0.76 for 2014.
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 September 30, Ref 2015 2014 Vested and exercisable (a) 1,093 896 Unvested (b) 1,231 1,484 Options outstanding 2,324 2,380 Ref (a): Weighted average exercise price of vested and exercisable shares was $1.40 and $1.41 at September 30, 2015 and 2014 , respectively. Aggregate intrinsic value was $1.6 million and $0.6 million at September 30, 2015 and 2014 , respectively. Weighted average contractual term was 7.3 years and 8.0 years at September 30, 2015 and 2014 , respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	12 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Diluted earnings per share	Diluted earnings per share is calculated using the treasury stock method. (in thousands) Year Ended September 30, 2015 2014 Numerator: Net income $ 8,728 $ 5,357 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 9,573 9,570 Effect of dilutive securities: Stock options and restricted stock 466 269 Denominator for diluted net income per share - weighted-average outstanding shares 10,039 9,839 Net income per share - basic (a) $ 0.91 $ 0.56 Net income per share - diluted (a) $ 0.87 $ 0.54 Ref (a): For fiscal years ended September 30, 2015 and September 30, 2014 , we realized a $5.5 million and $4.6 million tax benefit, respectively, related to the release of a portion of our valuation allowance to reflect the amount of our deferred tax asset that we expect to realize in future years. This resulted in an improvement of net income per share basic and diluted for both fiscal years.

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	12 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligations]	Contractual Obligations Payments Due By Period Obligations Less than 2-3 4-5 More than 5 (Amounts in thousands) Total 1 Year Years Years Years Loan Payable (1) $ — $ — $ — $ — $ — Operating Leases (2) 2,298 161 530 550 1,057 Total Obligations $ 2,298 $ 161 $ 530 $ 550 $ 1,057 (1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement. (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 Rental Commencement Date began on September 1, 2015. 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. 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.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of analysis of deferred tax asset and liability	An analysis of DLH's deferred tax asset and liability is as follows: Year Ended September 30, (amounts in thousands) 2015 2014 Current deferred income tax asset: Net operating loss carryforwards and tax credits $ 391 $ 98 Accrued liabilities 753 122 Valuation allowance (162 ) (136 ) Net current deferred tax asset $ 982 $ 84 Year Ended September 30, (amounts in thousands) 2015 2014 Deferred income tax asset (liability): Net operating loss carry forwards and tax credits $ 12,524 $ 16,556 Stock based compensation 767 646 Fixed and intangible assets (2,379 ) (2,176 ) Other items, net 5 488 Valuation allowance (1,592 ) (11,001 ) Net deferred tax asset $ 9,325 $ 4,513
Summary of significant components of the expense (benefit) for income taxes from continuing operations	The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows: Year Ended September 30, (amounts in thousands) 2015 2014 Current expense (benefit) $ 220 $ 7 Deferred expense (benefit) (5,708 ) (4,604 ) Total expense (benefit) $ (5,488 ) $ (4,597 )
Schedule of significant differences between the Federal statutory rate and the entity's effective tax rate for continuing operations	The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations: Year Ended September 30, (amounts in thousands) 2015 2014 Federal statutory rate $ 1,134 $ 258 State taxes, net 155 46 Other permanent items 7 6 Change in valuation allowance (6,784 ) (4,907 ) $ (5,488 ) $ (4,597 )

Quarterly Financial Data (Una28

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Sep. 30, 2015
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	A summary of quarterly information is as follows (in thousands, except per share data) 2015 Quarters First Second Third Fourth Revenue $ 15,682 $ 15,893 $ 16,781 $ 16,990 Gross margin 2,533 2,730 3,038 3,387 Income from operations (1) 259 515 763 958 Other income (expense), net (2) (36 ) (651 ) (34 ) 1,466 Income (loss) before income taxes $ 223 $ (136 ) $ 729 $ 2,424 Income tax expense(benefit) (2) $ 89 $ (54 ) $ 292 (5,814 ) Net income (loss) $ 134 $ (82 ) $ 437 $ 8,238 Earnings (loss) per share: (3) Basic $ 0.01 $ (0.01 ) $ 0.05 $ 0.86 Diluted $ 0.01 $ (0.01 ) $ 0.04 $ 0.82 2014 Quarters First Second Third Fourth Revenue $ 14,477 $ 14,745 $ 15,692 $ 15,579 Gross margin 2,112 2,199 2,308 2,340 Income from operations 66 225 268 205 Other income (expense), net 67 (27 ) (17 ) (27 ) Income before income taxes $ 133 $ 198 $ 251 $ 178 Income tax expense(benefit) (2) $ — $ — $ — $ (4,597 ) Net income $ 133 $ 198 $ 251 $ 4,775 Earnings per share: (3) Basic $ 0.01 $ 0.02 $ 0.03 $ 0.50 Diluted $ 0.01 $ 0.02 $ 0.03 $ 0.48 _______________________________________________________________________________ (1) Sum of the quarterly amounts may not equal the full fiscal year due to the effect of rounding. (2) Refer to Note 4, Supporting Financial Information, for detailed explanation of the settlement of the retroactive payment claim in second quarter 2015, favorable closure of the legacy payroll tax payable in fourth quarter 2015, and income tax benefit recorded in fourth quarter 2015 and fourth quarter 2014. (3) Sum of the quarterly net income (loss) per share amounts may not equal the full fiscal year net income per share amount due to the effect of changes during the year in the number of shares outstanding.

Business Overview (Details)

Business Overview (Details)	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2013	Sep. 30, 2015employeelocationbusiness_area	Sep. 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			1,250
Minimum number of locations in which entity operates (location) | location			30
Number of broad integrated revenue streams | business_area			2
US Government [Member] | Revenue concentration | Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)			100.00%
DVA | Revenue concentration | Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	96.00%	97.00%	95.00%	96.00%
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 Informat30

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2008
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable		$ 3,286	$ 12,372
Less: Allowance for doubtful accounts		0	0
Accounts Receivable, Net		3,286	12,372
Retroactive billing	$ 9,300
Accrued liabilites for salaries to employees and related benefits			0
Accrued interest and penalties	$ (629)
Billed Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable		2,498	2,569
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable		788	9,803
DVA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract revenue nonrecurring				$ 10,800
Unfavorable Regulatory Action | Department of Labor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued salaries and benefits				$ 10,100
Accrued liabilites for salaries to employees and related benefits		(8,677)
Unfavorable Regulatory Action | Department of Labor | Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable		0	9,306
Accrued Income Receivable [Member] | Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable		$ 788	$ 497

Supporting Financial Informat31

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Workers’ compensation receivable	$ 29	$ 199
Prepaid insurance expense	156	176
Other prepaid expenses	244	135
Other current assets	$ 429	$ 510

Supporting Financial Informat32

Supporting Financial Information - Accrued Payroll (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued payroll related to billed receivables	$ 2,259	$ 2,440
Accrued payroll related to unbilled accounts receivable	536	348
Total accrued payroll related to unbilled accounts receivable	536	9,025
Accrued payroll	2,795	11,465
Unfavorable Regulatory Action | Department of Labor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued payroll related to retroactive payment claim	$ 0	$ 8,677

Supporting Financial Informat33

Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Property, Plant and Equipment [Line Items]
Furniture and equipment	$ 197	$ 139
Computer equipment	162	126
Computer software	297	430
Leasehold improvements	63	24
Property, Plant and Equipment, Gross	719	719
Less accumulated depreciation and amortization	(383)	(656)
Equipment and improvements, net	$ 336	$ 63
Leasehold Improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Leasehold Improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years

Supporting Financial Informat34

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 87	$ 779
Accrued benefits	267	720
Accrued bonus and incentive compensation	858	693
Accrued workers compensation insurance	945	767
Other accrued expenses	694	339
Payroll tax payable	0	1,448
Total accrued expenses and other current liabilities	$ 2,851	$ 4,746

Supporting Financial Informat35

Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest expense, net									$ (80)	$ (99)
Amortization of deferred financing costs									0	(10)
Change in value of financial instruments									0	99
Miscellaneous other income (expense), net									824	6
Other income (expense) net	$ 1,466	$ (34)	$ (651)	$ (36)	$ (27)	$ (17)	$ (27)	$ 67	744	(4)
Settlement of legacy payroll tax issue, net									$ (1,477)	$ 0
Accrued interest and penalties			$ (629)

Liquidity (Details)

Liquidity (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Line of Credit Facility [Line Items]
Cash and cash equivalents	$ 5,558,000				$ 3,908,000				$ 5,558,000	$ 3,908,000	$ 3,408,000
Net working capital	4,600,000								4,600,000
Income before taxes	2,424,000	$ 729,000	$ (136,000)	$ 223,000	$ 178,000	$ 251,000	$ 198,000	$ 133,000	3,240,000	$ 760,000
Amount of unused availability under the line	2,640,000								2,640,000
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	1,290,000								1,290,000
Unbilled receivables
Line of Credit Facility [Line Items]
Maximum availability	$ 1,000,000								$ 1,000,000
Interest rate (percent)	4.00%				4.00%				4.00%	4.00%
Accounts receivables
Line of Credit Facility [Line Items]
Maximum availability	$ 3,000,000								$ 3,000,000
Interest rate (percent)	4.00%								4.00%
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Amount of unused availability under the line	$ 1,350,000								$ 1,350,000

Significant Accounting Polici37

Significant Accounting Policies - Goodwill And Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Goodwill [Line Items]
Goodwill	$ 8,595	$ 8,595
Valuation allowance against net deferred tax assets	$ (1,800)	$ 11,100

Stock-based Compensation, Equ38

Stock-based Compensation, Equity Grants, and Warrants - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration term of options		10 years
Risk free interest rate (percent)		2.55%
Expected volatility rate (percent)		65.80%
Fair value per option (in dollars per share)		$ 0.76
Weighted average exercise price of vested and exercisable shares (dollars per share)	$ 1.40	$ 1.41
Aggregate intrinsic value of vested and exercisable shares	$ 1.6	$ 0.6
Weighted average contractual term	7 years 3 months 11 days	8 years
Compensation expense recognition period	1 year 9 months 18 days
Compensation expense weighted average life	1 year 2 months 12 days
2006 Long Term Incentive Plan | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	0.9
Expiration term of options	10 years

Stock-based Compensation, Equ39

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 479	$ 472
Total unrecognized expense	140	471
DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	44	346
Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	96	125
Selling, General and Administrative Expenses | DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	302	363
Selling, General and Administrative Expenses | Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 177	$ 109

Stock-based Compensation, Equ40

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Number of Shares
Outstanding at beginning of period (in shares)	2,380	1,613
Granted (in shares)		830
Cancelled (in shares)	(56)	(63)
Outstanding at end of period (in shares)	2,324	2,380	1,613
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.40	$ 1.15
Granted (in dollars per share)		1.52
Cancelled (in dollars per share)	1.40	1.40
Outstanding at end of period (in dollars per share)	$ 1.40	$ 1.40	$ 1.15
Share Based Compensation Arrangement by Share Based Payment, Award, Options Weighted Average Remaining Contractual Term [Abstract]
Outstanding	6 years 9 months 22 days	7 years 9 months 22 days	7 years 10 months 24 days
Share Based Compensation Arrangement by Share Based Payment, Award, Options Aggregate Intrinsic Value [Abstract]
Outstanding at the beginning of period (in dollars)	$ 1,589	$ 388
Outstanding at the end of period (in dollars)	$ 3,649	$ 1,589	$ 388

Stock-based Compensation, Equ41

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested and exercisable	1,093	896
Unvested	1,231	1,484
Option outstanding	2,324	2,380	1,613

Earnings (Loss) Per Share (Deta

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net income	$ 8,238,000	$ 437,000	$ (82,000)	$ 134,000	$ 4,775,000	$ 251,000	$ 198,000	$ 133,000	$ 8,728,000	$ 5,357,000
Denominator:
Denominator for basic net income per share - weighted-average outstanding shares									9,573	9,570
Effect of dilutive securities:
Stock options and restricted stock									466	269
Denominator for diluted net income per share - weighted-average outstanding shares									10,039	9,839
Net income (loss) per share - basic (dollars per share)	$ 0.86	$ 0.05	$ (0.01)	$ 0.01	$ 0.50	$ 0.03	$ 0.02	$ 0.01	$ 0.91	$ 0.56
Net income (loss) per share - diluted (dollars per share)	$ 0.82	$ 0.04	$ (0.01)	$ 0.01	$ 0.48	$ 0.03	$ 0.02	$ 0.01	$ 0.87	$ 0.54
Income tax expense(benefit)	$ 5,814,000	$ (292,000)	$ 54,000	$ (89,000)	$ 4,597,000	$ 0	$ 0	$ 0	$ 5,488,000	$ 4,597,000

Commitment and Contingencies -

Commitment and Contingencies - Contractual Obligations (Details) $ in Thousands	Sep. 30, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loan Payable, Less than 1 Year	$ 0
Loan Payable, 1-3 Years	0
Loan Payable, 4-5 Years	0
Loan Payable, More than 5 years	0
Total	0
Operating Leases, Less than 1 Year	161
Operating Leases, 1-3 Years	530
Operating Leases, 4-5 Years	550
Operating Leases,More than 5 Years	1,057
Total	2,298
Less than 1 Year	161
Total Obligations, 1-3 Years	530
Total Obligations, 4-5 Years	550
Total Obligations, More than 5 Years	1,057
Total	$ 2,298

Commitment and Contingencies (D

Commitment and Contingencies (Details)	Dec. 31, 2024USD ($)	Apr. 27, 2015USD ($)ft²loan_extension	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Area of Real Estate Property | ft²		12,275
Accrued workers compensation insurance			$ 945,000	$ 767,000
Lessee Leasing Arrangements, Operating Leases, Term of Contract		8 years 8 months 12 days
Operating Leases, Rent Expenses Per Month, Net		$ 20,970
Operating Lease, Rent Expense Excused		$ 120,000
Leesee Leasing Arrangement, Operating Leases, Term of Excused Rent		8 months
Unoccupied Area of Real Estate | ft²		4,000
Lessee Leasing Arrangements, Operating Leases, Initial Term of Contract		2 years
Lessee Leasing Arrangements, Operating Leases, Number of Extensions | loan_extension		1
Lessee Leasing Arrangements, Operating Leases, Renewal Term		5 years
Forecast
Accounts, Notes, Loans and Financing Receivable [Line Items]
Operating Leases, Rent Expenses Per Month, Net	$ 25,552

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Income Tax Examination [Line Items]
Income Tax Expense (Benefit)	$ (5,814,000)	$ 292,000	$ (54,000)	$ 89,000	$ (4,597,000)	$ 0	$ 0	$ 0	$ (5,488,000)	$ (4,597,000)
Document Period End Date									Sep. 30, 2015
U.S.
Income Tax Examination [Line Items]
Net operating losses	36,800,000								$ 36,800,000
State
Income Tax Examination [Line Items]
Net operating losses	$ 2,400,000								$ 2,400,000

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Current deferred income tax asset:
Net operating loss carryforwards and tax credits	$ 391	$ 98
Accrued liabilities	753	122
Valuation allowance	(162)	(136)
Net current deferred tax asset	982	84
Deferred income tax asset (liability):
Net operating loss carry forwards and tax credits	12,524	16,556
Stock based compensation	767	646
Fixed and intangible assets	(2,379)	(2,176)
Other items, net	5	488
Valuation allowance	(1,592)	(11,001)
Net deferred tax asset	$ 9,325	$ 4,513

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Current expense (benefit)									$ 220,000	$ 7,000
Deferred expense (benefit)									(5,708,000)	(4,604,000)
Total expense (benefit)	$ (5,814,000)	$ 292,000	$ (54,000)	$ 89,000	$ (4,597,000)	$ 0	$ 0	$ 0	$ (5,488,000)	$ (4,597,000)

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Federal statutory rate									$ 1,134,000	$ 258,000
State taxes, net									155,000	46,000
Other permanent items									7,000	6,000
Change in valuation allowance									(6,784,000)	(4,907,000)
Total expense (benefit)	$ (5,814,000)	$ 292,000	$ (54,000)	$ 89,000	$ (4,597,000)	$ 0	$ 0	$ 0	$ (5,488,000)	$ (4,597,000)

Quarterly Financial Data (Una49

Quarterly Financial Data (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2015	Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 16,990,000	$ 16,781,000	$ 15,893,000	$ 15,682,000	$ 15,579,000	$ 15,692,000	$ 14,745,000	$ 14,477,000	$ 65,346,000	$ 60,493,000
Gross Profit	3,387,000	3,038,000	2,730,000	2,533,000	2,340,000	2,308,000	2,199,000	2,112,000	11,688,000	8,959,000
Operating income	958,000	763,000	515,000	259,000	205,000	268,000	225,000	66,000	2,496,000	764,000
Other income (expense), net (2)	1,466,000	(34,000)	(651,000)	(36,000)	(27,000)	(17,000)	(27,000)	67,000	744,000	(4,000)
Income before income taxes	2,424,000	729,000	(136,000)	223,000	178,000	251,000	198,000	133,000	3,240,000	760,000
Income Tax Expense (Benefit)	5,814,000	(292,000)	54,000	(89,000)	4,597,000	0	0	0	5,488,000	4,597,000
Net income	$ 8,238,000	$ 437,000	$ (82,000)	$ 134,000	$ 4,775,000	$ 251,000	$ 198,000	$ 133,000	$ 8,728,000	$ 5,357,000
Net income (loss) per share - basic (dollars per share)	$ 0.86	$ 0.05	$ (0.01)	$ 0.01	$ 0.50	$ 0.03	$ 0.02	$ 0.01	$ 0.91	$ 0.56
Net income (loss) per share - diluted (dollars per share)	$ 0.82	$ 0.04	$ (0.01)	$ 0.01	$ 0.48	$ 0.03	$ 0.02	$ 0.01	$ 0.87	$ 0.54

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Defined Contribution Plan, Cost Recognized	$ 24	$ 5
Defined Contribution Plan Employers Matching, Contribution Vesting Period	4 years