DLH (DLHC) 10-K12 Dec 182018 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Sep. 30, 2018	Nov. 30, 2018	Mar. 31, 2018
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, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,899,494
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 38,686,852

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Revenue	$ 133,236	$ 115,662
Direct expenses (exclusive of depreciation and amortization shown below)	103,034	89,812
Gross margin	30,202	25,850
General and administrative expenses	19,178	17,466
Depreciation and amortization	2,242	1,754
Income from operations	8,782	6,630
Interest expense, net	(1,116)	(1,228)
Income before income taxes	7,666	5,402
Income tax expense	5,830	2,114
Net income	$ 1,836	$ 3,288
Earnings Per Share [Abstract]
Net income per share - basic (in dollars per share)	$ 0.15	$ 0.29
Net income per share - diluted (in dollars per share)	$ 0.14	$ 0.27
Weighted average common shares outstanding
Basic (in shares)	11,881	11,345
Diluted (in shares)	12,873	12,352

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 6,355	$ 4,930
Accounts receivable	10,280	11,911
Other current assets	760	598
Total current assets	17,395	17,439
Equipment and improvements, net	1,566	1,391
Deferred taxes, net	4,137	9,639
Goodwill	25,989	25,989
Intangible assets, net	13,365	15,127
Other long-term assets	89	139
Total assets	62,541	69,724
Current liabilities:
Debt obligations - current	0	6,518
Derivative financial instruments, at fair value	0	306
Accrued payroll	4,983	3,723
Accounts payable, accrued expenses, and other current liabilities	10,950	10,895
Total current liabilities	15,933	21,442
Other long term liability	7,190	12,427
Total liabilities	23,123	33,869
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Common stock, $.001 par value; authorized 40,000 shares; issued and outstanding 11,899 and 11,767 at September 30, 2018 and 2017, respectively.	12	12
Additional paid-in capital	84,285	82,687
Accumulated deficit	(44,879)	(46,844)
Total shareholders’ equity	39,418	35,855
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 62,541	$ 69,724

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2018	Sep. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares (in shares)	40,000	40,000
Common stock, issued shares (in shares)	11,889	11,767
Common stock, outstanding shares (in shares)	11,889	11,767

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities
Net income	$ 1,836	$ 3,288
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	2,242	1,724
Amortization of debt financing costs as interest expense	275	268
Change in fair value of derivative financial instruments	0	102
Stock based compensation expense	1,375	662
Loss on retirement of equipment	0	31
Deferred taxes, net	5,502	1,776
Changes in operating assets and liabilities
Accounts receivable	1,631	(5,274)
Other current assets	(162)	(56)
Accounts payable, accrued payroll, accrued expenses and other current liabilities	1,314	3,945
Other long term assets/liabilities	64	58
Net cash provided by operating activities	14,077	6,524
Investing activities
Acquisition, net of cash acquired	0	(250)
Purchase of equipment and improvements	(654)	(1,064)
Net cash used in investing activities	(654)	(1,314)
Financing activities
Repayments on senior debt	(11,979)	(3,750)
Repayments of capital lease obligations	0	(86)
Payment of deferred financing costs	(65)	0
Proceeds from stock option exercise	46	129
Net cash used in financing activities	(11,998)	(3,707)
Net change in cash and cash equivalents	1,425	1,503
Cash and cash equivalents at beginning of year	4,930	3,427
Cash and cash equivalents at end of year	6,355	4,930
Supplemental disclosures of cash flow information
Cash paid during the year for interest	800	883
Cash paid during the year for income taxes	876	337
Non-cash issuance of stock upon exercise of options	25	0
Derivative warrant liability reclassified as equity	$ (306)	$ 0

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning Balance (shares) at Sep. 30, 2016		11,148
Beginning Balance at Sep. 30, 2016	$ 31,776	$ 11	$ 81,897	$ (50,132)
Directors' stock grants (shares)		103
Directors' stock grants	496		496
Expense related to employee stock options	166		166
Exercise of stock options (shares)		516
Exercise of stock options	129	$ 1	128
Net Income	$ 3,288			3,288
Ending Balance (shares) at Sep. 30, 2017	11,767	11,767
Ending Balance at Sep. 30, 2017	$ 35,855	$ 12	82,687	(46,844)
Directors' stock grants (shares)		93
Directors' stock grants	1,109		1,109
Expense related to employee stock options	266		266
Exercise of stock options (shares)		39
Exercise of stock options	46	$ 0	46
Net Income	$ 1,836			1,836
Ending Balance (shares) at Sep. 30, 2018	11,889	11,899
Ending Balance at Sep. 30, 2018	$ 39,418	$ 12	84,285	(44,879)
Change in accounting principle - reclassification of warrant liability	$ 306		$ 177	$ 129

Basis of Presentation

Basis of Presentation	12 Months Ended
Basis of Presentation	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles and with the instructions to Form 10-K, Regulation S-X, and Regulation S-K. Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year presentation.

Business Overview

Business Overview	12 Months Ended
Business Overview	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview At present, the Company derives 100% of its revenue from agencies of the Federal government, primarily as a prime contractor but also as a subcontractor to other Federal prime contractors. Our current contracts are within the following markets: Defense/VA ( 65% ), Human Services and Solutions ( 31% ) and Public Health/Life Sciences ( 4% ); of which 95% of these contracts have been awarded on a Time and Materials basis, 3% are Cost plus Fixed Fee contracts and 2% are Firm Fixed Price contracts. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of September 30, 2018 and 2017 . We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. The Company’s current business base is 99% prime contracts and 1% subcontracts. Our largest customer continues to be the VA, which comprised approximately 63% and 62% of revenue for the years ended September 30, 2018 and 2017 , respectively. HHS, which comprised approximately 34% and 34% of revenue for the year ended September 30, 2018 and 2017 , respectively, is also a major customer. 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 VA and HHS under its current contracts, we believe that our strong working relationships and our effective service delivery support ongoing performance for the terms of the contracts. Our results of operations, cash flows and financial condition would be materially adversely affected if we were unable to continue our relationship with either of these customers, or if the amount of services we provide to them was materially reduced. DLH’s revenues from the VA are derived from 16 separate contracts related to its performance of pharmacy and logistics services in support of the VA’s consolidated mail outpatient pharmacy program. Approximately 57% of the Company’s current business base with the VA is derived from nine contracts (for pharmacy services) that are currently operating under extensions through April 2019 pending completion of the procurement process for a new contract. A single renewal request for proposal (“RFP”) has currently been issued for these nine contracts and we expect further extensions until the procurement process is completed. The RFP, however, requires the prime contractor be a service-disabled veteran owned small business (SDVOSB), which precludes the Company from bidding on the RFP as a prime contractor. We have joined an SDVOSB team as a subcontractor to respond to this RFP. Should the contract be awarded to an SDVOSB partner of DLH, the Company expects to continue to perform a significant amount of the contract’s volume of business. The remaining seven contracts for logistics services to the VA are performed under contracts which do not expire until May 2019, and the Company believes that these contracts will be similarly extended during the procurement process. These contracts may be subject to the same requirement of awarding to a SDVOSB prime contractor. Our contract with HHS in support of its Head Start program generated 31% and 29% of our revenue from HHS for the fiscal years ended September 30, 2018 and 2017 , respectively. This contract is on a time and materials basis and consists of a base period of four option periods for a total term of five years through April 2020. The Company's Danya subsidiary has provided these similar services to HHS since 1999. Danya was acquired by the Company in May 2016

New Accounting Pronouncements

New Accounting Pronouncements	12 Months Ended
New Accounting Pronouncements	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued amended revenue recognition guidance, including subsequent amendments, which was summarized into ASC 606, "Revenue from Contracts with Customers". ASC 606 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services unless those contracts are within the scope of other standards. The new guidance outlines a single comprehensive model for entities to apply in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of 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 required improved disclosures to help users of the financial statements better understand the nature, timing, and potential uncertainty of revenue that is recognized. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the FASB amended ASC 340-40 to provide guidance on costs to obtain contracts with customers. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, using either a full retrospective approach or a modified approach. The Company adopted the standard on a modified retrospective basis on October 1, 2018, whereby the cumulative effect of applying the standard was recognized through shareholders’ equity on the date of adoption. In interim periods of our fiscal year ending September 30, 2019, we will be required to provide additional disclosures regarding the amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. Upon adoption on October 1, 2018, the Company recorded a net increase to shareholders’ equity of approximately $0.1 million . This amount related principally to the proportional recognition of revenue on fixed price services contracts. As part of our implementation process, we reviewed representative contracts within each revenue stream, updated accounting policies and procedures, and internal controls over financial reporting. We evaluated the cumulative equity adjustment and updated financial reporting and footnote disclosures as required by the new standard. We have substantially completed our implementation process in 2018. We do not expect that ASC 606 will have a material impact to our pattern of revenue recognition. Revenue for our current contract base is predominantly ( 95% ) recognized on a time and materials basis, as the performance obligation is satisfied. An additional 3% of our revenue is derived from cost plus fixed fee contract arrangements, under which revenue is recognized as reimbursement of costs incurred in satisfaction of performance obligations, plus a proportional share of the fee earned. The final 2% of our revenue is derived from short-term (one year or less) fixed price services contracts. Revenue from fixed price services contracts is currently recognized evenly throughout the period of performance, but under ASC 606 we will estimate satisfaction of performance obligations on a proportional basis using a cost-to-cost input method. The adoption of ASC 340-40 will require capitalization of certain costs to obtain and fulfill a contract, with amortization of those deferred costs over the contract’s period of performance as underlying performance obligations are satisfied. In February 2016, the FASB issued new accounting guidance related to leases. This new accounting guidance is intended to improve financial reporting about leasing transactions. This accounting standard will require organizations that lease assets referred to as “Lessees” to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. An organization is to provide disclosures designed to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements concerning additional information about the amounts recorded in the financial statements. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, new guidance will require both types of leases (i.e., operating and finance) to be recognized. Finance leases will be accounted for in substantially the same manner as capital leases. Public companies will be required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all companies and organizations. ASU 2018-11 allows companies to elect not to recast comparative period presented when transitioning to ASC 842. The Company does not have a large portfolio of leases and is not likely to see a significant increase in balance sheet assets and liabilities resulting from the adoption of this new lease accounting guidance. As shown in Note 10, the Company currently has approximately $2.8 million of active lease commitments that will be evaluated as the implementation of this new lease accounting guidance becomes effective. In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230) . This amendment provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on October 1, 2017 and its adoption did not have a material impact on the Company’s consolidated cash flows. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and clarifies that an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new standard is effective for fiscal years beginning January 1, 2020 for both interim and annual reporting periods. The Company is currently assessing the potential impact of the adoption of ASC 2017-04 on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting . ASC 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company will adopt this standard in the first quarter of fiscal 2019 and its adoption is not expected to have a material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company has elected to adopt the provisions of this ASU in the current fiscal year. See Note 8. Common Stock Warrants. In June 2018, the FASB issued ASU 2018-07 Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company is currently assessing the potential impact on the Company’s consolidated financial statements and related disclosures.

Supporting Financial Informatio

Supporting Financial Information	12 Months Ended
Supporting Financial Information	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supporting Financial Information	Supporting Financial Information Accounts receivable (in thousands) September 30, September 30, Ref 2018 2017 Billed receivables $ 10,066 $ 11,862 Unbilled receivables 214 49 Total accounts receivable 10,280 11,911 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 10,280 $ 11,911 Ref (a): Accounts receivable are non-interest bearing, unsecured and 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. No allowance for doubtful accounts was deemed necessary at either September 30, 2018 or September 30, 2017 . Other current assets (in thousands) September 30, September 30, Ref 2018 2017 Prepaid insurance and benefits $ 401 $ 240 Other receivables and prepaid expenses 359 358 Other current assets $ 760 $ 598 Equipment and improvements, net (in thousands) September 30, September 30, Ref 2018 2017 Furniture and equipment $ 326 $ 331 Computer equipment 751 715 Computer software (a) 1,731 1,108 Leasehold improvements 66 66 Total fixed assets 2,874 2,220 Less accumulated depreciation and amortization (1,308 ) (829 ) Equipment and improvements, net (b) $ 1,566 $ 1,391 Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.3 million and $0.7 million as of September 30, 2018 and 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service as of January 1, 2018 with an estimated useful life of 5 years. Ref (b): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $479 thousand and $287 thousand for the years ended September 30, 2018 and 2017 , respectively. Intangibles assets, net (in thousands) September 30, September 30, Ref 2018 2017 Intangible assets (a) Customer contracts and related customer relationships $ 16,626 $ 16,626 Covenants not to compete 480 480 Trade name 517 517 Total intangible assets 17,623 17,623 Less accumulated amortization Customer contracts and related customer relationships (4,018 ) (2,355 ) Covenants not to compete (116 ) (68 ) Trade name (124 ) (73 ) Total accumulated amortization (4,258 ) (2,496 ) Intangible assets, net $ 13,365 $ 15,127 Ref (a): Intangible assets are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense for the years ended September 30, 2018 and 2017 was $1.8 million and $1.4 million , respectively. Estimated amortization expense for future years: (in thousands) Fiscal 2019 $ 1,762 Fiscal 2020 1,762 Fiscal 2021 1,762 Fiscal 2022 1,762 Fiscal 2023 1,762 Thereafter 4,555 Total amortization expense $ 13,365 Accounts payable, accrued expenses and other current liabilities (in thousands) September 30, September 30, 2018 2017 Accounts payable $ 3,393 $ 5,205 Accrued benefits 2,060 1,831 Accrued bonus and incentive compensation 2,191 1,544 Accrued workers compensation insurance 2,642 1,598 Other accrued expenses 664 717 Accounts payable, accrued expenses, and other current liabilities $ 10,950 $ 10,895 Debt obligations (in thousands) September 30, September 30, Ref 2018 2017 Bank term loan (a) $ 7,708 $ 19,688 Less unamortized debt issuance costs (750 ) (961 ) Net bank debt obligation 6,958 18,727 Less current portion of bank debt obligations — (6,518 ) Long term portion of bank debt obligation $ 6,958 $ 12,209 Ref (a): Maturity of the bank debt obligation as follows, in thousands: Fiscal 2019 $ — Fiscal 2020 1,875 Fiscal 2021 5,833 Total bank debt obligation $ 7,708 Interest expense (in thousands) Years Ended September 30, Ref 2018 2017 Interest expense (a) $ (800 ) $ (883 ) Amortization of debt financing costs as interest expense (b) (275 ) (268 ) Change in fair value of derivative financial instruments — (102 ) Other income (expense), net (41 ) 25 Interest expense, net $ (1,116 ) $ (1,228 ) Ref (a): Interest expense on borrowing Ref (b): Amortization of expenses related to securing financing

Cash and Credit Facilities

Cash and Credit Facilities	12 Months Ended
Cash and Credit Facilities	Sep. 30, 2018
Cash and Cash Equivalents [Abstract]
Cash and Credit Facilities	Cash and Credit Facilities A summary of our loan facilities and subordinated debt financing as of September 30, 2018 is as follows: ($ in Millions) As of September 30, 2018 Lender Arrangement Loan Balance Interest Maturity Date Fifth Third Bank Secured term loan $25 million (a) $ 7.7 LIBOR* + 3.0% 05/01/21 Fifth Third Bank Secured revolving line of credit $10 million ceiling (b) $ — LIBOR* + 3.0% 05/01/21 * LIBOR rate as of September 30, 2018 was 2.08% (a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank. The $25.0 million term loan from Fifth Third Bank is secured by liens on substantially all of the assets of the Company. The principal of the Term Loan is payable in fifty-nine consecutive monthly installments of $312,500 with the remaining balance due on May 1, 2021 . The Term Loan agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. We are in compliance with all loan covenants and restrictions. Among other matters, we must comply with limitations on: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain quarterly financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.35 to 1.0 commencing with the quarter ending June 30, 2016, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 2.99 to 1.0 at closing and thereafter a ratio ranging from 3.0 to 1.0 for the period through June 30, 2018 to 2.5 to 1.0 for the period ending September 30, 2018 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, including acquisition expenses, net, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) G&A expenses - equity grants. In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires annual payments of a percentage of excess cash flow, as defined in the loan agreement. The loan agreement states that an excess cash flow recapture payment must be made equal to (a) 75% of the excess cash flow for each year in which the Funded Indebtedness to Adjusted EBITDA ratio is greater than or equal to 2.50 :1.0, or (b) 50% of the Excess Cash Flow for each fiscal year in which the funded indebtedness to Adjusted EBITDA Ratio is less than 2.50 :1.0 but greater than or equal to 2.0 :1.0. DLH made an excess cash flow payment of $2.9 million in January 2018, and based on its funded indebtedness to Adjusted EBITDA ratio, does not expect to make any future excess cash flow payments. Additionally, DLH made a voluntary prepayment of term debt of $5.6 million in September 2018, which has been attributed to the scheduled monthly payments for the upcoming 18 months through March 2020. (b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million . Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. The Company's total remaining borrowing availability, based on eligible accounts receivables at September 30, 2018 , was $8.9 million . This capacity was further reduced by $1.3 million in a stand-by letter of credit and thus unused borrowing capacity of $7.6 million . The revolving line of credit is subject to loan covenants as described above in the Term Loan, and DLH is fully compliant with those covenants.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
Significant Accounting Policies	Sep. 30, 2018
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, measurement of prepaid workers’ compensation, valuation allowances established against deferred tax assets, measurement of contingent liabilities, accounts payable, workers’ compensation claims, and accrued expenses and the valuation of derivative financial instruments associated with debt agreements. In addition, the Company estimates overhead charges and allocates such charges throughout the year. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations. Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. DLH recognizes and records revenue on government contracts 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. Refer to Note 3 for discussion of the adoption of ASC 606, which is effective as of October 1, 2018, and the Company's estimated impact of implementation. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled receivables, accrued expenses, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates. Goodwill and other intangible assets DLH continues to review its goodwill and other intangible assets 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, 2018, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $26 million . 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, 2018, as no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Notwithstanding this evaluation, 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. There were no impairments during the year ended September 30, 2017. Long Lived Assets Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. 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 September 30, 2018 and 2017 . We report interest and penalties as a component of income tax expense. In the years ended September 30, 2018 and 2017 , we recognized no interest and no penalties related to income taxes. Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued 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 common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. 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. Earnings per Share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common stock 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 such as common stock warrants and stock options. Diluted earnings per share is calculated using the treasury stock method.

Stock-based Compensation and Eq

Stock-based Compensation and Equity Grants	12 Months Ended
Stock-based Compensation and Equity Grants	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation and Equity Grants	Stock-based compensation and equity grants Stock-based compensation expense Options issued under equity incentive plans were designated as either an incentive stock or a non-statutory stock option. No option was 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. As of September 30, 2018 , there were 1.7 million shares available for grant under the Company's 2016 Omnibus Equity Incentive Plan. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our consolidated statement of operations: (in thousands) Year Ended Ref September 30, 2018 2017 DLH employees $ 266 $ 166 Non-employee directors (a) 1,109 496 Total stock option expense $ 1,375 $ 662 Ref (a): Equity grants, in accordance with DLH compensation policy for non-employee directors. During the fiscal year ended September 30, 2018, the Company revised its Board compensation policy to provide that equity grants were earned ratably throughout the year rather than retrospectively in the quarter following the completion of the fiscal year. On November 9, 2018 the Company issued 101,667 shares of cliff-vested common stock to non-employee members of the Company's Board of Directors, in accordance with DLH's revised compensation policy for non-employee directors. Unrecognized stock-based compensation expense (in thousands) Year Ended September 30, Ref 2018 2017 Unrecognized expense for DLH employees (a) $ 876 $ 299 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 Monte Carlo 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 within the next 4.25 years. Stock option activity for the year ended September 30, 2018 : 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, 2016 2,226 $1.40 5.8 $ 7,581 Granted (a) 400 $5.94 Exercised or canceled (632 ) $1.28 Options outstanding, September 30 , 2017 1,994 $3.83 6.4 $ 8,489 Granted (b) 217 $6.33 Exercised or canceled (77 ) $3.70 Options outstanding, September 30, 2018 2,134 $4.31 6.3 $ 6,949 Ref (a): Option grants to DLH employees in the fiscal year ended September 30, 2017 were valued using a binomial model, under the following criteria: September 30, 2017 Risk free interest rate 2.46 % Contractual term 10 years Dividend yield — % Expected lives 10 years Expected volatility 144 % Fair value per option $0.93 - $1.47 Ref (b): Utilizing a volatility range of 50% along with assumptions of a 10 year term and the aforementioned 10 -day stock price threshold results in an indicated range of value of the Options granted during the current fiscal year ended September 30, 2018, as follows using the Monte Carlo Method. Volatility 50% Vesting Expected Strike Stock Threshold Risk-Free Term Calculated Grant Date Price Price Price Rate (Years) Fair Value 11/29/2017 $ 6.46 $ 6.46 $ 12.00 2.4 % 10 $ 3.98 12/01/2017 $ 6.28 $ 6.28 $ 8.00 2.4 % 10 $ 3.87 12/01/2017 $ 6.28 $ 6.28 $ 10.00 2.4 % 10 $ 3.82 Notes: Results based on 100,000 simulations Stock options shares outstanding, vested and unvested for the period ended: (in thousands) Number of Shares September 30, Ref 2018 2017 Vested and exercisable (a) 1,335 1,327 Unvested (b) 799 667 Options outstanding 2,134 1,994 Ref (a): Weighted average exercise price of vested and exercisable shares was $1.50 and $1.45 at September 30, 2018 and 2017, respectively. Aggregate intrinsic value was $5.7 million and $6.8 million at September 30, 2018 and 2017, respectively. Weighted average contractual term remaining was 4.5 years and 5.0 years at September 30, 2018 and 2017, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

Common Stock Warrants

Common Stock Warrants	12 Months Ended
Common Stock Warrants	Sep. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Common Stock Warrants	Common Stock Warrants During the current fiscal year, the Company adopted the provisions of Accounting Standards Update ("ASU") 2017-11, "Earning Per Share (Topic 260): Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815). The amendments in Part I of this ASU change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The fair value of a financial instrument with a down round features is now permitted to be classified as a component of stockholder's equity, as opposed to a liability as it was previously required to be reported. In addition, the recorded fair value of the financial instruments is no longer required to be subsequently revalued. Should the down round feature of the financial instrument be triggered due to a change in the underlying strike price, the change in the fair value would be treated as a dividend and as a reduction of income available to common stockholders in accordance with the guidance of ASC-260. Prior accounting treatment: In connection with issuing subordinated debt to finance its May 2, 2016 acquisition, the Company issued warrants to purchase 53,619 shares of Common Stock. These warrants contain certain pricing previsions which apply if the Company sells or issues Common Stock or Common Stock equivalents at a price that is less than the exercise price of the warrants, over the life of the warrants, excluding certain exempt issuances. In addition, these warrants may only be exercised with cash. Accordingly, the Company recognized a liability for these warrants based on their fair value as of the date of grant. The initial warrant liability recognized on the related warrants totaled $177 thousand . At each subsequent quarter end, the Company then remeasured the fair value of the warrants, and recorded the change in the warrant liability as a component of net income. As of September 30, 2017, the warrant liability was valued at $306 thousand . Current accounting treatment: The Company chose a modified retrospective adoption, and therefore, is recognizing the cumulative effect of the change as an adjustment to retained earnings in the period of adoption. The warrant liability has been eliminated from the Company's balance sheet as of September 30, 2018. The fair value of the warrant liability has been reduced by $306 thousand by reclassifying this liability to retained earnings and additional paid in capital by $129 thousand and $177 thousand , respectively.

Earnings Per Share

Earnings Per Share	12 Months Ended
Earnings Per Share	Sep. 30, 2018
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) Year Ended September 30, 2018 2017 Numerator: Net income $ 1,836 $ 3,288 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 11,881 11,345 Effect of dilutive securities: Stock options and restricted stock 992 1,007 Denominator for diluted net income per share - weighted-average outstanding shares 12,873 12,352 Net income per share - basic $ 0.15 $ 0.29 Net income per share - diluted $ 0.14 $ 0.27

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual Obligations as of September 30, 2018 : Payments Due By Period Contractual obligations Next 12 2-3 4-5 More than 5 (Amounts in thousands) Ref Total Months Years Years Years Debt obligations $ 7,708 $ — $ 7,708 $ — $ — Facility leases 2,764 901 988 672 203 Equipment operating leases 38 22 16 — — Total Contractual Obligations $ 10,510 $ 923 $ 8,712 $ 672 $ 203 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 September 30, 2018 and September 30, 2017 was $2.6 million and $1.6 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.

Related Party Transactions

Related Party Transactions	12 Months Ended
Related Party Transactions	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company has determined that for the years ended September 30, 2018 and 2017 and through the filing date of this report, there were no significant related party transactions that have occurred which require disclosure through the date that these financial statements were issued.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Sep. 30, 2018
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. We also set up a valuation allowance, reducing the carrying value of deferred tax assets if it is more likely than not that some or all of the deferred tax asset will not be realized, as based on estimated future taxable income. Presently, the Company has no deferred tax asset valuation allowances. During the fiscal year ending September 30, 2018 , the Company recognized a $3.4 million write-down of deferred tax assets from revaluation of our net operating loss carryforwards from the previously recognized federal income tax rate of 34% to the 21% rate in the 2017 Tax Act enacted in December 2017. In addition to this discrete item the Company recognized $2.4 million of income tax expense associated with current operations resulting in total income tax expense of $5.8 million for the 2018 fiscal year. The fiscal year 2018 effective tax rate, excluding the discrete item associated with the deferred tax asset write-down was 32.2% as compared to the prior year effective tax rate of 39.1% . At September 30, 2018 and 2017, respectively, the Company had federal net operating losses of approximately $23.8 million and $31.5 million . The Company utilized approximately $7.7 million of federal net operating losses to offset taxes otherwise currently due. The federal NOLs begin to expire in 2021 and continue to expire through 2033. The Company has no material state net operating losses carryforward. A provision of the 2017 Tax Act repealed the alternative minimum tax (AMT). Additionally, prior AMT paid is either creditable against regular tax liability or refundable. For tax years beginning after 2017 and before 2022, 50 percent of AMT credits are refundable; from 2022, the credits are fully refundable. The Company has AMT credits of $369 thousand as of the year ended September 30, 2018, of which 50 percent has been established as an income tax receivable in current assets. An analysis of DLH's deferred tax asset and liability is as follows: Year Ended September 30, (amounts in thousands) 2018 2017 Deferred income tax asset: Net operating loss carry forwards $ 5,005 $ 10,786 AMT credit carryforward 185 316 Stock based compensation 140 236 Accrued expenses 1,202 1,303 Other items, net 45 241 Total deferred tax asset 6,577 12,882 Deferred tax liability: Fixed and intangible assets (2,440 ) (3,243 ) Net deferred tax asset $ 4,137 $ 9,639 The significant components of income tax expense for income taxes from continuing operations are summarized as follows: Year Ended September 30, (amounts in thousands) 2018 2017 Current expense $ 328 $ 338 Deferred expense 5,502 1,776 Total expense $ 5,830 $ 2,114 The following table indicates the significant differences between our income taxes at the federal statutory rate and DLH's effective tax rate for continuing operations: Year Ended September 30, (amounts in thousands) 2018 2017 Federal statutory rate $ 1,861 $ 1,837 State taxes, net 393 260 Other permanent items 77 17 Miscellaneous true up of prior year deferred 134 — Discrete item (a) 3,365 — Total $ 5,830 $ 2,114 (a): Write-down of deferred tax assets due to change in federal income tax rate from the 2017 Tax Act. We file income tax returns in the U.S. federal jurisdiction and in various state jurisdictions. We are no longer subject to income tax examinations for years before 2015.

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
Quarterly Financial Data (Unaudited)	Sep. 30, 2018
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) 2018 Quarters First Second Third Fourth Revenue $ 30,215 $ 34,401 $ 36,131 $ 32,489 Gross margin 6,532 7,448 8,338 7,885 Income from operations 1,146 2,204 2,614 2,819 Interest expense, net (278 ) (261 ) (262 ) (315 ) Income before income taxes 868 $ 1,943 2,352 2,504 Income tax expense (1) 3,719 $ 627 738 747 Net income (loss) $ (2,851 ) $ 1,316 $ 1,614 $ 1,757 Earnings (loss) per share: Basic $ (0.24 ) $ 0.11 $ 0.14 $ 0.15 Diluted $ (0.24 ) $ 0.10 $ 0.13 $ 0.14 2017 Quarters First Second Third Fourth Revenue $ 26,111 $ 29,905 $ 29,256 $ 30,390 Gross margin 5,811 6,401 6,385 7,253 Income from operations 889 1,839 1,753 2,149 Interest expense, net (364 ) (255 ) (269 ) (340 ) Income before income taxes 525 1,584 1,484 1,809 Income tax expense 201 605 539 769 Net income $ 324 $ 979 $ 945 $ 1,040 Earnings per share: Basic $ 0.03 $ 0.09 $ 0.08 $ 0.09 Diluted $ 0.03 $ 0.08 $ 0.08 $ 0.08 _______________________________________________________________________________ (1) Refer to Note 12, Income Taxes, for a detailed explanation of the $3.4 million income tax discrete charge in fiscal year 2018, related to the 2017 Tax Cut and Jobs Act.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2018
Retirement Benefits [Abstract]
Employee Benefits Plans	Employee Benefit Plans As of September 30, 2018 , 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 a participant's elective contributions under the 401 (k) Plan. DLH recorded related expense of $222 thousand in fiscal 2018 and $154 thousand in fiscal year 2017 . A participant is always fully vested in his or her elective contributions and vests in Company matching contributions over a four year period.

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2018
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 further subsequent events have occurred which require disclosure through the date that these financial statements were issued.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles and with the instructions to Form 10-K, Regulation S-X, and Regulation S-K.
Reclassifications	Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year presentation.
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued amended revenue recognition guidance, including subsequent amendments, which was summarized into ASC 606, "Revenue from Contracts with Customers". ASC 606 affects any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services unless those contracts are within the scope of other standards. The new guidance outlines a single comprehensive model for entities to apply in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of 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 required improved disclosures to help users of the financial statements better understand the nature, timing, and potential uncertainty of revenue that is recognized. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. In addition, the FASB amended ASC 340-40 to provide guidance on costs to obtain contracts with customers. For a public entity, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, using either a full retrospective approach or a modified approach. The Company adopted the standard on a modified retrospective basis on October 1, 2018, whereby the cumulative effect of applying the standard was recognized through shareholders’ equity on the date of adoption. In interim periods of our fiscal year ending September 30, 2019, we will be required to provide additional disclosures regarding the amount by which each financial statement line item is affected in the current reporting period by the application of this ASU as compared to the guidance that was in effect before the change. Upon adoption on October 1, 2018, the Company recorded a net increase to shareholders’ equity of approximately $0.1 million . This amount related principally to the proportional recognition of revenue on fixed price services contracts. As part of our implementation process, we reviewed representative contracts within each revenue stream, updated accounting policies and procedures, and internal controls over financial reporting. We evaluated the cumulative equity adjustment and updated financial reporting and footnote disclosures as required by the new standard. We have substantially completed our implementation process in 2018. We do not expect that ASC 606 will have a material impact to our pattern of revenue recognition. Revenue for our current contract base is predominantly ( 95% ) recognized on a time and materials basis, as the performance obligation is satisfied. An additional 3% of our revenue is derived from cost plus fixed fee contract arrangements, under which revenue is recognized as reimbursement of costs incurred in satisfaction of performance obligations, plus a proportional share of the fee earned. The final 2% of our revenue is derived from short-term (one year or less) fixed price services contracts. Revenue from fixed price services contracts is currently recognized evenly throughout the period of performance, but under ASC 606 we will estimate satisfaction of performance obligations on a proportional basis using a cost-to-cost input method. The adoption of ASC 340-40 will require capitalization of certain costs to obtain and fulfill a contract, with amortization of those deferred costs over the contract’s period of performance as underlying performance obligations are satisfied. In February 2016, the FASB issued new accounting guidance related to leases. This new accounting guidance is intended to improve financial reporting about leasing transactions. This accounting standard will require organizations that lease assets referred to as “Lessees” to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. An organization is to provide disclosures designed to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements concerning additional information about the amounts recorded in the financial statements. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, new guidance will require both types of leases (i.e., operating and finance) to be recognized. Finance leases will be accounted for in substantially the same manner as capital leases. Public companies will be required to adopt the new leasing standard for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all companies and organizations. ASU 2018-11 allows companies to elect not to recast comparative period presented when transitioning to ASC 842. The Company does not have a large portfolio of leases and is not likely to see a significant increase in balance sheet assets and liabilities resulting from the adoption of this new lease accounting guidance. As shown in Note 10, the Company currently has approximately $2.8 million of active lease commitments that will be evaluated as the implementation of this new lease accounting guidance becomes effective. In August 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230) . This amendment provides guidance on the presentation and classification of specific cash flow items to improve consistency within the statement of cash flows. The Company adopted ASU No. 2016-15 on October 1, 2017 and its adoption did not have a material impact on the Company’s consolidated cash flows. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and clarifies that an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new standard is effective for fiscal years beginning January 1, 2020 for both interim and annual reporting periods. The Company is currently assessing the potential impact of the adoption of ASC 2017-04 on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting . ASC 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company will adopt this standard in the first quarter of fiscal 2019 and its adoption is not expected to have a material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued new accounting guidance related to certain equity-linked financial instruments with down round features, such as warrants. The guidance provides for a scope exception from derivative accounting if the instruments qualify for equity classification. Should the instruments qualify for equity classification, they would no longer be considered liabilities subject to fair value measurement at each reporting period. This update is effective for the Company as of its fiscal year beginning October 1, 2019, with early adoption permitted. The Company has elected to adopt the provisions of this ASU in the current fiscal year. See Note 8. Common Stock Warrants. In June 2018, the FASB issued ASU 2018-07 Improvements to Nonemployee Share-Based Payment Accounting , which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company is currently assessing the potential impact on the Company’s consolidated financial statements and related disclosures.
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, measurement of prepaid workers’ compensation, valuation allowances established against deferred tax assets, measurement of contingent liabilities, accounts payable, workers’ compensation claims, and accrued expenses and the valuation of derivative financial instruments associated with debt agreements. In addition, the Company estimates overhead charges and allocates such charges throughout the year. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations.
Revenue Recognition	Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. Revenue on time and materials contracts is recognized based on hours performed times the applicable hourly rate, plus materials and other direct costs incurred on the contract. Revenue on fixed fee for service contracts is recognized over the period of performance of the contract. Revenue on cost reimbursable contracts is recognized equal to allowable costs incurred, plus a ratable portion of the applicable fee. DLH recognizes and records revenue on government contracts 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.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled receivables, accrued expenses, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximate fair value because the underlying interest rates approximate market rates that the Company could obtain for similar instruments at the balance sheet dates.
Goodwill and other intangible assets	Goodwill and other intangible assets DLH continues to review its goodwill and other intangible assets 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, 2018, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $26 million . 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, 2018, as no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Notwithstanding this evaluation, 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. There were no impairments during the year ended September 30, 2017.
Long Lived Assets	Long Lived Assets Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements.
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.
Share-based Equity Compensation	Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued 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 common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock.
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.
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 stock 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 such as common stock warrants and stock options. Diluted earnings per share is calculated using the treasury stock method.

Supporting Financial Informat_2

Supporting Financial Information (Tables)	12 Months Ended
Supporting Financial Information (Tables)	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts receivable (in thousands) September 30, September 30, Ref 2018 2017 Billed receivables $ 10,066 $ 11,862 Unbilled receivables 214 49 Total accounts receivable 10,280 11,911 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 10,280 $ 11,911 Ref (a): Accounts receivable are non-interest bearing, unsecured and 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. No allowance for doubtful accounts was deemed necessary at either September 30, 2018 or September 30, 2017 .
Schedule of Other Current Assets	Other current assets (in thousands) September 30, September 30, Ref 2018 2017 Prepaid insurance and benefits $ 401 $ 240 Other receivables and prepaid expenses 359 358 Other current assets $ 760 $ 598
Schedule of Equipment and Improvements, Net	Equipment and improvements, net (in thousands) September 30, September 30, Ref 2018 2017 Furniture and equipment $ 326 $ 331 Computer equipment 751 715 Computer software (a) 1,731 1,108 Leasehold improvements 66 66 Total fixed assets 2,874 2,220 Less accumulated depreciation and amortization (1,308 ) (829 ) Equipment and improvements, net (b) $ 1,566 $ 1,391 Ref (a): The Company implemented a new Enterprise Resource Planning system on January 1, 2018. Capitalized costs include $1.3 million and $0.7 million as of September 30, 2018 and 2017, respectively, of software licenses and implementation labor related to application development. The asset was placed in service as of January 1, 2018 with an estimated useful life of 5 years. Ref (b): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation of equipment was $479 thousand and $287 thousand for the years ended September 30, 2018 and 2017 , respectively.
Schedule of Intangible Assets, Net	Intangibles assets, net (in thousands) September 30, September 30, Ref 2018 2017 Intangible assets (a) Customer contracts and related customer relationships $ 16,626 $ 16,626 Covenants not to compete 480 480 Trade name 517 517 Total intangible assets 17,623 17,623 Less accumulated amortization Customer contracts and related customer relationships (4,018 ) (2,355 ) Covenants not to compete (116 ) (68 ) Trade name (124 ) (73 ) Total accumulated amortization (4,258 ) (2,496 ) Intangible assets, net $ 13,365 $ 15,127 Ref (a): Intangible assets are amortized on a straight-line basis over their estimated useful lives of 10 years. Total amount of amortization expense for the years ended September 30, 2018 and 2017 was $1.8 million and $1.4 million , respectively.
Schedule of Estimated Future Amortization Expense of Finite-lived Intangibles	Estimated amortization expense for future years: (in thousands) Fiscal 2019 $ 1,762 Fiscal 2020 1,762 Fiscal 2021 1,762 Fiscal 2022 1,762 Fiscal 2023 1,762 Thereafter 4,555 Total amortization expense $ 13,365
Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities	Accounts payable, accrued expenses and other current liabilities (in thousands) September 30, September 30, 2018 2017 Accounts payable $ 3,393 $ 5,205 Accrued benefits 2,060 1,831 Accrued bonus and incentive compensation 2,191 1,544 Accrued workers compensation insurance 2,642 1,598 Other accrued expenses 664 717 Accounts payable, accrued expenses, and other current liabilities $ 10,950 $ 10,895
Schedule of Debt Obligations	Debt obligations (in thousands) September 30, September 30, Ref 2018 2017 Bank term loan (a) $ 7,708 $ 19,688 Less unamortized debt issuance costs (750 ) (961 ) Net bank debt obligation 6,958 18,727 Less current portion of bank debt obligations — (6,518 ) Long term portion of bank debt obligation $ 6,958 $ 12,209 Ref (a): Maturity of the bank debt obligation as follows, in thousands: Fiscal 2019 $ — Fiscal 2020 1,875 Fiscal 2021 5,833 Total bank debt obligation $ 7,708
Schedule of Interest Expense	Interest expense (in thousands) Years Ended September 30, Ref 2018 2017 Interest expense (a) $ (800 ) $ (883 ) Amortization of debt financing costs as interest expense (b) (275 ) (268 ) Change in fair value of derivative financial instruments — (102 ) Other income (expense), net (41 ) 25 Interest expense, net $ (1,116 ) $ (1,228 ) Ref (a): Interest expense on borrowing Ref (b): Amortization of expenses related to securing financing

Cash and Credit Facilities (Tab

Cash and Credit Facilities (Tables)	12 Months Ended
Cash and Credit Facilities (Tables)	Sep. 30, 2018
Cash and Cash Equivalents [Abstract]
Schedule of Loan Facilities and Subordinated Debt Financing	A summary of our loan facilities and subordinated debt financing as of September 30, 2018 is as follows: ($ in Millions) As of September 30, 2018 Lender Arrangement Loan Balance Interest Maturity Date Fifth Third Bank Secured term loan $25 million (a) $ 7.7 LIBOR* + 3.0% 05/01/21 Fifth Third Bank Secured revolving line of credit $10 million ceiling (b) $ — LIBOR* + 3.0% 05/01/21 * LIBOR rate as of September 30, 2018 was 2.08%

Stock-based Compensation and _2

Stock-based Compensation and Equity Grants (Tables)	12 Months Ended
Stock-based Compensation and Equity Grants (Tables)	Sep. 30, 2018
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 consolidated statement of operations: (in thousands) Year Ended Ref September 30, 2018 2017 DLH employees $ 266 $ 166 Non-employee directors (a) 1,109 496 Total stock option expense $ 1,375 $ 662 Ref (a): Equity grants, in accordance with DLH compensation policy for non-employee directors. During the fiscal year ended September 30, 2018, the Company revised its Board compensation policy to provide that equity grants were earned ratably throughout the year rather than retrospectively in the quarter following the completion of the fiscal year. On November 9, 2018 the Company issued 101,667 shares of cliff-vested common stock to non-employee members of the Company's Board of Directors, in accordance with DLH's revised compensation policy for non-employee directors. Unrecognized stock-based compensation expense (in thousands) Year Ended September 30, Ref 2018 2017 Unrecognized expense for DLH employees (a) $ 876 $ 299 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 Monte Carlo 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 within the next 4.25 years.
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, 2016 2,226 $1.40 5.8 $ 7,581 Granted (a) 400 $5.94 Exercised or canceled (632 ) $1.28 Options outstanding, September 30 , 2017 1,994 $3.83 6.4 $ 8,489 Granted (b) 217 $6.33 Exercised or canceled (77 ) $3.70 Options outstanding, September 30, 2018 2,134 $4.31 6.3 $ 6,949
Stock Options Fair Value Assumptions	Ref (a): Option grants to DLH employees in the fiscal year ended September 30, 2017 were valued using a binomial model, under the following criteria: September 30, 2017 Risk free interest rate 2.46 % Contractual term 10 years Dividend yield — % Expected lives 10 years Expected volatility 144 % Fair value per option $0.93 - $1.47 Ref (b): Utilizing a volatility range of 50% along with assumptions of a 10 year term and the aforementioned 10 -day stock price threshold results in an indicated range of value of the Options granted during the current fiscal year ended September 30, 2018, as follows using the Monte Carlo Method. Volatility 50% Vesting Expected Strike Stock Threshold Risk-Free Term Calculated Grant Date Price Price Price Rate (Years) Fair Value 11/29/2017 $ 6.46 $ 6.46 $ 12.00 2.4 % 10 $ 3.98 12/01/2017 $ 6.28 $ 6.28 $ 8.00 2.4 % 10 $ 3.87 12/01/2017 $ 6.28 $ 6.28 $ 10.00 2.4 % 10 $ 3.82 Notes: Results based on 100,000 simulations
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 2018 2017 Vested and exercisable (a) 1,335 1,327 Unvested (b) 799 667 Options outstanding 2,134 1,994 Ref (a): Weighted average exercise price of vested and exercisable shares was $1.50 and $1.45 at September 30, 2018 and 2017, respectively. Aggregate intrinsic value was $5.7 million and $6.8 million at September 30, 2018 and 2017, respectively. Weighted average contractual term remaining was 4.5 years and 5.0 years at September 30, 2018 and 2017, respectively. Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2018
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, 2018 2017 Numerator: Net income $ 1,836 $ 3,288 Denominator: Denominator for basic net income per share - weighted-average outstanding shares 11,881 11,345 Effect of dilutive securities: Stock options and restricted stock 992 1,007 Denominator for diluted net income per share - weighted-average outstanding shares 12,873 12,352 Net income per share - basic $ 0.15 $ 0.29 Net income per share - diluted $ 0.14 $ 0.27

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
Commitments and Contingencies (Tables)	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligations	Contractual Obligations as of September 30, 2018 : Payments Due By Period Contractual obligations Next 12 2-3 4-5 More than 5 (Amounts in thousands) Ref Total Months Years Years Years Debt obligations $ 7,708 $ — $ 7,708 $ — $ — Facility leases 2,764 901 988 672 203 Equipment operating leases 38 22 16 — — Total Contractual Obligations $ 10,510 $ 923 $ 8,712 $ 672 $ 203

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Sep. 30, 2018
Income Tax Disclosure [Abstract]
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) 2018 2017 Deferred income tax asset: Net operating loss carry forwards $ 5,005 $ 10,786 AMT credit carryforward 185 316 Stock based compensation 140 236 Accrued expenses 1,202 1,303 Other items, net 45 241 Total deferred tax asset 6,577 12,882 Deferred tax liability: Fixed and intangible assets (2,440 ) (3,243 ) Net deferred tax asset $ 4,137 $ 9,639
Significant Components of the Expense (Benefit) From Continuing Operations	The significant components of income tax expense for income taxes from continuing operations are summarized as follows: Year Ended September 30, (amounts in thousands) 2018 2017 Current expense $ 328 $ 338 Deferred expense 5,502 1,776 Total expense $ 5,830 $ 2,114
Significant Differences Between the Income Taxes at Federal Statutory Rate and Effective Tax Rate	The following table indicates the significant differences between our income taxes at the federal statutory rate and DLH's effective tax rate for continuing operations: Year Ended September 30, (amounts in thousands) 2018 2017 Federal statutory rate $ 1,861 $ 1,837 State taxes, net 393 260 Other permanent items 77 17 Miscellaneous true up of prior year deferred 134 — Discrete item (a) 3,365 — Total $ 5,830 $ 2,114 (a): Write-down of deferred tax assets due to change in federal income tax rate from the 2017 Tax Act.

Quarterly Financial Data (Una_2

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
Quarterly Financial Data (Unaudited) (Tables)	Sep. 30, 2018
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	A summary of quarterly information is as follows (in thousands, except per share data) 2018 Quarters First Second Third Fourth Revenue $ 30,215 $ 34,401 $ 36,131 $ 32,489 Gross margin 6,532 7,448 8,338 7,885 Income from operations 1,146 2,204 2,614 2,819 Interest expense, net (278 ) (261 ) (262 ) (315 ) Income before income taxes 868 $ 1,943 2,352 2,504 Income tax expense (1) 3,719 $ 627 738 747 Net income (loss) $ (2,851 ) $ 1,316 $ 1,614 $ 1,757 Earnings (loss) per share: Basic $ (0.24 ) $ 0.11 $ 0.14 $ 0.15 Diluted $ (0.24 ) $ 0.10 $ 0.13 $ 0.14 2017 Quarters First Second Third Fourth Revenue $ 26,111 $ 29,905 $ 29,256 $ 30,390 Gross margin 5,811 6,401 6,385 7,253 Income from operations 889 1,839 1,753 2,149 Interest expense, net (364 ) (255 ) (269 ) (340 ) Income before income taxes 525 1,584 1,484 1,809 Income tax expense 201 605 539 769 Net income $ 324 $ 979 $ 945 $ 1,040 Earnings per share: Basic $ 0.03 $ 0.09 $ 0.08 $ 0.09 Diluted $ 0.03 $ 0.08 $ 0.08 $ 0.08 _______________________________________________________________________________ (1) Refer to Note 12, Income Taxes, for a detailed explanation of the $3.4 million income tax discrete charge in fiscal year 2018, related to the 2017 Tax Cut and Jobs Act.

Business Overview (Details)

Business Overview (Details)	12 Months Ended
Business Overview (Details)	Sep. 30, 2018contractoption	Sep. 30, 2017
Concentration Risk [Line Items]
Business base percentage, prime contracts	99.00%
Business base percentage, subcontracts	1.00%
Customer concentration \| Time and Materials
Concentration Risk [Line Items]
Concentration risk percentage	95.00%
Customer concentration \| Cost Plus Fixed Fee
Concentration Risk [Line Items]
Concentration risk percentage	3.00%
Customer concentration \| Firm Fixed Price
Concentration Risk [Line Items]
Concentration risk percentage	2.00%
Customer concentration \| Defense/VA
Concentration Risk [Line Items]
Concentration risk percentage	65.00%
Customer concentration \| HSS
Concentration Risk [Line Items]
Concentration risk percentage	31.00%
Customer concentration \| Public Health/Life Sciences
Concentration Risk [Line Items]
Concentration risk percentage	4.00%
Customer concentration \| Public Health/Life Sciences \| Time and Materials
Concentration Risk [Line Items]
Concentration risk percentage	95.00%
Customer concentration \| Public Health/Life Sciences \| Cost Plus Fixed Fee
Concentration Risk [Line Items]
Concentration risk percentage	3.00%
Customer concentration \| Public Health/Life Sciences \| Firm Fixed Price
Concentration Risk [Line Items]
Concentration risk percentage	2.00%
Customer concentration \| Revenue concentration \| US Federal Government
Concentration Risk [Line Items]
Concentration risk percentage	100.00%
Customer concentration \| Revenue concentration \| HSS
Concentration Risk [Line Items]
Concentration risk percentage	34.00%	34.00%
Customer concentration \| Revenue concentration \| VA
Concentration Risk [Line Items]
Concentration risk percentage	63.00%	62.00%
Number of contracts	16
Customer concentration \| Revenue concentration \| VA \| Pharmacy Services
Concentration Risk [Line Items]
Concentration risk percentage	57.00%
Number of contracts	9
Customer concentration \| Revenue concentration \| VA \| Logistic Services
Concentration Risk [Line Items]
Number of contracts	7
Customer concentration \| Revenue concentration \| Head Start Program \| Time and Materials
Concentration Risk [Line Items]
Concentration risk percentage	31.00%	29.00%
Number of option periods of contract \| option	4
Term of contract	5 years

New Accounting Pronouncements (

New Accounting Pronouncements (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Oct. 01, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle - reclassification of warrant liability	$ 306
Operating lease obligations	$ 2,800
Customer concentration \| Time and Materials
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage	95.00%
Customer concentration \| Cost Plus Fixed Fee
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage	3.00%
Customer concentration \| Firm Fixed Price
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage	2.00%
Subsequent Event \| ASU 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle - reclassification of warrant liability		$ 100

Supporting Financial Informat_3

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 10,280	$ 11,911
Less: Allowance for doubtful accounts	0	0
Accounts receivable, net	10,280	11,911
Billed Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	10,066	11,862
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 214	$ 49

Supporting Financial Informat_4

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid insurance and benefits	$ 401	$ 240
Other receivables and prepaid expenses	359	358
Other current assets	$ 760	$ 598

Supporting Financial Informat_5

Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Line Items]
Furniture and equipment	$ 326,000	$ 331,000
Computer equipment	751,000	715,000
Computer software	1,731,000	1,108,000
Leasehold improvements	66,000	66,000
Total fixed assets	2,874,000	2,220,000
Less accumulated depreciation and amortization	(1,308,000)	(829,000)
Equipment and improvements, net	1,566,000	1,391,000
New Enterprise Resource Planning (ERP) System
Property, Plant and Equipment [Line Items]
Capitalized computer software	$ 1,300,000	700,000
Estimated amortization period of capitalized computer software	5 years
Leasehold Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	3 years
Leasehold Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives of property and equipment	7 years
Equipment
Property, Plant and Equipment [Line Items]
Depreciation	$ 479,000	$ 287,000

Supporting Financial Informat_6

Supporting Financial Information - Intangible Assets, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 17,623	$ 17,623
Less accumulated amortization	(4,258)	(2,496)
Intangible assets, net	$ 13,365	15,127
Finite-lived intangibles estimated useful lives	10 years
Amortization expense of intangibles	$ 1,800	1,400
Customer contracts and related customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	16,626	16,626
Less accumulated amortization	(4,018)	(2,355)
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	480	480
Less accumulated amortization	(116)	(68)
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	517	517
Less accumulated amortization	$ (124)	$ (73)

Supporting Financial Informat_7

Supporting Financial Information - Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal 2,019	$ 1,762
Fiscal 2,020	1,762
Fiscal 2,021	1,762
Fiscal 2,022	1,762
Fiscal 2,023	1,762
Thereafter	4,555
Intangible assets, net	$ 13,365	$ 15,127

Supporting Financial Informat_8

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 3,393	$ 5,205
Accrued benefits	2,060	1,831
Accrued bonus and incentive compensation	2,191	1,544
Accrued workers compensation insurance	2,642	1,598
Other accrued expenses	664	717
Accounts payable, accrued expenses, and other current liabilities	$ 10,950	$ 10,895

Supporting Financial Informat_9

Supporting Financial Information - Debt Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Net bank debt obligation	$ 7,708
Maturity of Debt Obligations
Fiscal 2,019	0
Notes Payable to Banks
Debt Instrument [Line Items]
Bank term loan	7,708	$ 19,688
Less unamortized debt issuance costs	(750)	(961)
Net bank debt obligation	6,958	18,727
Less current portion of bank debt obligations	0	(6,518)
Long term portion of bank debt obligation	6,958	12,209
Maturity of Debt Obligations
Fiscal 2,019	0
Fiscal 2,020	1,875
Fiscal 2,021	5,833
Total bank debt obligation	$ 7,708	$ 19,688

Supporting Financial Informa_10

Supporting Financial Information - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest expense									$ (800)	$ (883)
Amortization of debt financing costs as interest expense									(275)	(268)
Change in fair value of derivative financial instruments									0	(102)
Other income (expense), net									(41)	25
Interest expense, net	$ (315)	$ (262)	$ (261)	$ (278)	$ (340)	$ (269)	$ (255)	$ (364)	$ (1,116)	$ (1,228)

Cash and Credit Facilities - Su

Cash and Credit Facilities - Summary of Loan Facilities and Subordinated Debt Financing (Details) - Secured Debt - Fifth Third Bank Credit Facility	12 Months Ended
	Sep. 30, 2018USD ($)
Term loan
Debt Instrument [Line Items]
Secured term loan, face amount	$ 25,000,000
Total bank debt obligation	$ 7,700,000
Term loan \| LIBOR
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage	2.08%
Debt instrument, basis spread on variable rate	3.00%
Revolving Line of Credit
Debt Instrument [Line Items]
Secured revolving line of credit, ceiling	$ 10,000,000
Total bank debt obligation	$ 0
Revolving Line of Credit \| LIBOR
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage	2.08%
Debt instrument, basis spread on variable rate	3.00%

Cash and Credit Facilities - Na

Cash and Credit Facilities - Narrative (Details) - Secured Debt - Fifth Third Bank Credit Facility	1 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)	Jan. 31, 2018USD ($)	Sep. 30, 2018USD ($)
Term loan
Line of Credit Facility [Line Items]
Secured term loan, face amount	$ 25,000,000		$ 25,000,000
Debt payment term for consecutive monthly installments			59 months
Debt monthly installments amount			$ 312,500
Fixed charge coverage ratio			1.35
Ratio of debt to EBITDA, period one			2.99
Ratio of debt to EBITDA, period two			3
Ratio of debt to EBITDA, period three			2.5
Repayments of lines of credit		$ 2,900,000
Voluntary repayment of line of credit	$ 5,600,000
Period covered by voluntary repayment of line of credit	18 months
Term loan \| Excess Cash Flows Greater Than or Equal to 2.50
Line of Credit Facility [Line Items]
Percentage of excess cash flow for each year of funded indebtedness to adjusted EBITDA			75.00%
Ratio of funded indebtedness to adjusted EBIDTA			2.50
Term loan \| Excess Cash Flows Less Than 2.50 Greater Than 2.00
Line of Credit Facility [Line Items]
Percentage of excess cash flow for each year of funded indebtedness to adjusted EBITDA			50.00%
Term loan \| Excess Cash Flows Less Than 2.50 Greater Than 2.00 \| Maximum
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBIDTA			2.50
Term loan \| Excess Cash Flows Less Than 2.50 Greater Than 2.00 \| Minimum
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBIDTA			2
Revolving Line of Credit
Line of Credit Facility [Line Items]
Line of credit ceiling	$ 10,000,000		$ 10,000,000
Remaining borrowing availability	8,900,000		8,900,000
Unused borrowing capacity	7,600,000		7,600,000
Stand-by Letters of Credit
Line of Credit Facility [Line Items]
Remaining borrowing availability	$ 1,300,000		$ 1,300,000

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($)	12 Months Ended
Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Goodwill [Line Items]
Goodwill	$ 25,989,000	$ 25,989,000
Goodwill impairment loss	0	0
Uncertain tax positions	0	0
Tax interest	0	0
Tax penalties	0	$ 0
FDIC insurance limit amount	$ 250,000
Employee Stock Option
Goodwill [Line Items]
Number of options that may be granted with a term of more than 10 years from date of grant (in shares)	0
Expiration term of options	10 years
Leasehold Improvements \| Minimum
Goodwill [Line Items]
Estimated useful lives of property and equipment	3 years
Leasehold Improvements \| Maximum
Goodwill [Line Items]
Estimated useful lives of property and equipment	7 years

Stock-based Compensation and _3

Stock-based Compensation and Equity Grants - Narrative (Details) - Employee Stock Option	12 Months Ended
	Sep. 30, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options that may be granted with a term of more than 10 years from date of grant (in shares)	0
Expiration term of options	10 years
2016 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options that may be granted with a term of more than 10 years from date of grant (in shares)	0
Expiration term of options	10 years
Number of shares available for grant (in shares)	1,700,000

Stock-based Compensation and _4

Stock-based Compensation and Equity Grants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	Nov. 09, 2018	Sep. 30, 2018	Sep. 30, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense		$ 1,375	$ 662
Period for recognition of related compensation expense		4 years 3 months
Selling, General and Administrative Expenses \| DLH employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense		$ 266	166
Total unrecognized expense		876	299
Selling, General and Administrative Expenses \| Non-employee directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense		$ 1,109	$ 496
Selling, General and Administrative Expenses \| Non-employee directors \| Common Stock \| Subsequent Event
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of cliff-vested shares of common stock issued (in shares)	101,667

Stock-based Compensation and _5

Stock-based Compensation and Equity Grants - Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Number of Shares
Outstanding at beginning of period (in shares)	1,994	2,226
Granted (in shares)	217	400
Exercised or canceled (in shares)	(77)	(632)
Outstanding at end of period (in shares)	2,134	1,994	2,226
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 3.83	$ 1.40
Granted (in dollars per share)	6.33	5.94
Exercised or canceled (in dollars per share)	3.70	1.28
Outstanding at end of period (in dollars per share)	$ 4.31	$ 3.83	$ 1.40
Weighted Average Remaining Contractual Term
Options outstanding at the of period (in years)	6 years 3 months 18 days	6 years 4 months 24 days	5 years 9 months 18 days
Aggregate Intrinsic Value
Options outstanding at the end of period (in dollars)	$ 6,949	$ 8,489	$ 7,581

Stock-based Compensation and _6

Stock-based Compensation and Equity Grants - Stock Options Fair Value Assumptions (Details) - $ / shares	Dec. 01, 2017	Nov. 29, 2017	Sep. 30, 2018	Sep. 30, 2017
11/29/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)		$ 6.46
Stock price (in dollars per share)		6.46
Vesting threshold price (in dollars per share)		12
Calculated fair value (in dollars per share)		$ 3.98
12/01/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	$ 6.28
Stock price (in dollars per share)	6.28
Vesting threshold price (in dollars per share)	8
Calculated fair value (in dollars per share)	3.87
12/01/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	6.28
Stock price (in dollars per share)	6.28
Vesting threshold price (in dollars per share)	10
Calculated fair value (in dollars per share)	$ 3.82
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate				2.46%
Contractual term			10 years	10 years
Dividend yield				0.00%
Expected lives				10 years
Expected volatility			50.00%	144.00%
Stock price threshold term			10 days
Employee Stock Option \| 11/29/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate		2.40%
Contractual term		10 years
Employee Stock Option \| 12/01/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	2.40%
Contractual term	10 years
Employee Stock Option \| 12/01/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free interest rate	2.40%
Contractual term	10 years
Employee Stock Option \| Lower Range Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per option (in dollars per share)				$ 0.93
Employee Stock Option \| Upper Range Limit
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per option (in dollars per share)				$ 1.47

Stock-based Compensation and _7

Stock-based Compensation and Equity Grants - Stock Options Outstanding, Vested and Unvested (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested and exercisable (in shares)	1,335	1,327
Unvested (in shares)	799	667
Options outstanding (in shares)	2,134	1,994	2,226
Weighted average exercise price of vested and exercisable shares (in dollars per share)	$ 1.50	$ 1.45
Aggregate intrinsic value of vested and exercisable shares	$ 5.7	$ 6.8
Weighted average contractual term remaining of vested and exercisable shares	4 years 6 months 12 days	5 years

Common Stock Warrants (Details)

Common Stock Warrants (Details) - USD ($) $ in Thousands	May 02, 2016	Sep. 30, 2018	Sep. 30, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Warrants issued in connection with subordinated debt (in shares)	53,619
Warrant liability	$ 177	$ 0	$ 306
Change in accounting principle - reclassification of warrant liability		306
Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Change in accounting principle - reclassification of warrant liability		129
Additional Paid-In Capital
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Change in accounting principle - reclassification of warrant liability		177
ASU 2017-11 \| Warrants
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Change in accounting principle - reclassification of warrant liability		(306)
ASU 2017-11 \| Retained Earnings
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Change in accounting principle - reclassification of warrant liability		129
ASU 2017-11 \| Additional Paid-In Capital
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Change in accounting principle - reclassification of warrant liability		$ 177

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017
Numerator:
Net income	$ 1,757	$ 1,614	$ 1,316	$ (2,851)	$ 1,040	$ 945	$ 979	$ 324	$ 1,836	$ 3,288
Denominator:
Denominator for basic net income per share - weighted-average outstanding shares (in shares)									11,881	11,345
Effect of dilutive securities:
Stock options and restricted stock (in shares)									992	1,007
Denominator for diluted net income per share - weighted-average outstanding shares (in shares)									12,873	12,352
Net income per share - basic (in dollars per share)	$ 0.15	$ 0.14	$ 0.11	$ (0.24)	$ 0.09	$ 0.08	$ 0.09	$ 0.03	$ 0.15	$ 0.29
Net income per share - diluted (in dollars per share)	$ 0.14	$ 0.13	$ 0.10	$ (0.24)	$ 0.08	$ 0.08	$ 0.08	$ 0.03	$ 0.14	$ 0.27

Commitments and Contingencies -

Commitments and Contingencies - Contractual Obligations (Details) $ in Thousands	Sep. 30, 2018USD ($)
Maturity of Debt Obligations
Net bank debt obligation	$ 7,708
Next 12 Months	0
2-3 Years	7,708
4-5 Years	0
More than 5 Years	0
Maturity Operating Leases
Total Lease Obligations	2,800
Maturity Total Contractual Obligations
Total Contractual Obligations	10,510
Next 12 Months	923
2-3 Years	8,712
4-5 Years	672
More than 5 Years	203
Facility leases
Maturity Operating Leases
Total Lease Obligations	2,764
Next 12 Months	901
2-3 Years	988
4-5 Years	672
More than 5 Years	203
Equipment capital leases
Maturity Operating Leases
Total Lease Obligations	38
Next 12 Months	22
2-3 Years	16
4-5 Years	0
More than 5 Years	$ 0

Commitments and Contingencies_2

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Workers' compensation liability	$ 2.6	$ 1.6

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017
Income Tax Examination [Line Items]
Write-down of deferred tax assets from revaluation of net operating losses due to change in federal tax rate									$ 3,400
Current income tax expense									328	$ 338
Income tax benefit	$ 747	$ 738	$ 627	$ 3,719	$ 769	$ 539	$ 605	$ 201	$ 5,830	$ 2,114
Effective income tax rate									32.20%	39.10%
ATM credits receivable	369								$ 369
Federal
Income Tax Examination [Line Items]
Income tax expense associated with current operations									2,400
Net operating losses	$ 23,800				$ 31,500				23,800	$ 31,500
Net operating losses utilized to offset taxes otherwise currently due									$ 7,700

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Deferred income tax asset:
Net operating loss carry forwards	$ 5,005	$ 10,786
AMT credit carryforward	185	316
Stock based compensation	140	236
Accrued expenses	1,202	1,303
Other items, net	45	241
Total deferred tax asset	6,577	12,882
Deferred tax liability:
Fixed and intangible assets	(2,440)	(3,243)
Net deferred tax asset	$ 4,137	$ 9,639

Income Taxes - Income Tax Expen

Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Current expense									$ 328	$ 338
Deferred expense									5,502	1,776
Total expense	$ 747	$ 738	$ 627	$ 3,719	$ 769	$ 539	$ 605	$ 201	$ 5,830	$ 2,114

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate									$ 1,861	$ 1,837
State taxes, net									393	260
Other permanent items									77	17
Miscellaneous true up of prior year deferred									134	0
Discrete item (a)									3,365	0
Total expense	$ 747	$ 738	$ 627	$ 3,719	$ 769	$ 539	$ 605	$ 201	$ 5,830	$ 2,114

Quarterly Financial Data (Una_3

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Sep. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 32,489	$ 36,131	$ 34,401	$ 30,215	$ 30,390	$ 29,256	$ 29,905	$ 26,111	$ 133,236	$ 115,662
Gross margin	7,885	8,338	7,448	6,532	7,253	6,385	6,401	5,811	30,202	25,850
Income from operations	2,819	2,614	2,204	1,146	2,149	1,753	1,839	889	8,782	6,630
Interest expense, net	(315)	(262)	(261)	(278)	(340)	(269)	(255)	(364)	(1,116)	(1,228)
Income before income taxes	2,504	2,352	1,943	868	1,809	1,484	1,584	525	7,666	5,402
Income tax expense	747	738	627	3,719	769	539	605	201	5,830	2,114
Net income	$ 1,757	$ 1,614	$ 1,316	$ (2,851)	$ 1,040	$ 945	$ 979	$ 324	$ 1,836	$ 3,288
Basic (in dollars per share)	$ 0.15	$ 0.14	$ 0.11	$ (0.24)	$ 0.09	$ 0.08	$ 0.09	$ 0.03	$ 0.15	$ 0.29
Diluted (in dollars per share)	$ 0.14	$ 0.13	$ 0.10	$ (0.24)	$ 0.08	$ 0.08	$ 0.08	$ 0.03	$ 0.14	$ 0.27
Write-down of deferred tax assets from revaluation of net operating losses due to change in federal tax rate									$ 3,400

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Sep. 30, 2017
Retirement Benefits [Abstract]
Defined contribution plan, recorded expense	$ 222	$ 154
Defined contribution plan, matching contributions period	4 years