DLH (DLHC) 10-Q 13 Feb 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2018	Jan. 31, 2019
Document and Entity Information
Entity Registrant Name	DLH Holdings Corp.
Entity Central Index Key	785,557
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
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 Common Stock, Shares Outstanding		12,036,161

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 33,752	$ 30,215
Direct expenses (exclusive of depreciation and amortization shown below)	25,966	23,683
Gross margin	7,786	6,532
General and administrative expenses	4,666	4,880
Depreciation and amortization	563	506
Income from operations	2,557	1,146
Interest expense, net	177	278
Income before income taxes	2,380	868
Income tax expense	690	3,719
Net income (loss)	$ 1,690	$ (2,851)
Net income per share, basic (in dollars per share)	$ 0.14	$ (0.24)
Net income per share - diluted (in dollars per share)	$ 0.13	$ (0.24)
Weighted average common shares outstanding
Basic (in shares)	11,963	11,837
Diluted (in shares)	12,979	11,837

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Current assets:
Cash and cash equivalents	$ 4,325	$ 6,355
Accounts receivable	14,123	10,280
Other current assets	1,267	760
Total current assets	19,715	17,395
Equipment and improvements, net	1,444	1,566
Deferred taxes, net	3,596	4,137
Goodwill	25,989	25,989
Intangible assets, net	12,924	13,365
Other long-term assets	89	89
Total assets	63,757	62,541
CURRENT LIABILITIES
Accrued payroll	5,546	4,983
Accounts payable, accrued expenses, and other current liabilities	9,918	10,950
Total current liabilities	15,464	15,933
Total long term liabilities	6,953	7,190
Total liabilities	22,417	23,123
Commitments and contingencies
SHAREHOLDERS’ EQUITY
Common stock, $0.001 par value; authorized 40,000 shares; issued and outstanding 12,036 and 11,899 at December 31, 2018 and September 30, 2018, respectively	12	12
Additional paid-in capital	84,517	84,285
Accumulated deficit	(43,189)	(44,879)
Total shareholders’ equity	41,340	39,418
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 63,757	$ 62,541

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Sep. 30, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	40,000	40,000
Common stock, issued (in shares)	12,036	11,899
Common stock, outstanding (in shares)	12,036	11,899

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Operating activities
Net income (loss)	$ 1,690	$ (2,851)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization expense	563	506
Amortization of debt financing costs as interest expense	73	65
Stock based compensation expense	193	757
Deferred taxes, net	541	3,539
Changes in operating assets and liabilities
Accounts receivable	(3,843)	(931)
Other current assets	(507)	11
Accounts payable, accrued payroll, accrued expenses, and other current liabilities	(470)	(1,486)
Other long term assets/liabilities	4	(4)
Net cash used in operating activities	(1,756)	(394)
Investing activities
Purchase of equipment and improvements	0	(375)
Net cash used in investing activities	0	(375)
Financing activities
Repayments on senior debt	(313)	(937)
Repayments of capital lease obligations	0	(5)
Proceeds from issuance of stock upon exercise of options	39	24
Net cash used in financing activities	(274)	(918)
Net change in cash and cash equivalents	(2,030)	(1,687)
Cash and cash equivalents at beginning of period	6,355
Cash and cash equivalents at end of period	4,325	3,243
Supplemental disclosures of cash flow information
Cash paid during the period for interest	163	219
Cash paid during the period for income taxes	22	480
Supplemental disclosures of non-cash financing activity
Derivative warrant liability reclassified as equity	$ 0	$ (306)

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 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 Holdings Corp. and its subsidiaries (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our"), 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 ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In management's opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended December 31, 2018 are not necessarily indicative of the results that may be expected for the year ending September 30, 2019 . Amounts as of and for the periods ended December 31, 2018 and December 31, 2017 are unaudited. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 2018 filed with the Securities and Exchange Commission on December 12, 2018 .

Business Overview

Business Overview	3 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview DLH is a full-service provider of technology-enabled health and readiness enhancement services to government agencies including the Department of Veteran Affairs ("VA"), Department of Health and Human Services ("HHS"), Department of Defense ("DoD"), and other government agencies. DLH Holdings Corp. (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our") manages its operations from its principal executive offices in Atlanta, Georgia. We have complementary headquarters offices in Silver Spring, Maryland. We employ over 1,600 skilled employees working in more than 30 locations throughout the United States. Presently, 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. A major customer is defined as a customer from whom the Company derives at least 10% of its revenues. Our largest customer continues to be the VA, which comprised approximately 68% and 66% of revenue for the three months ended December 31, 2018 and 2017 , respectively. Additionally, HHS, which comprised approximately 30% and 32% of revenue for the three months ended December 31, 2018 and 2017 , respectively, represents a major customer. Our current contracts are within the following markets: Defense/VA ( 69% ), Human Services and Solutions ( 29% ) and Public Health/Life Sciences ( 2% ); of which 97% of these contracts have been awarded on a Time and Materials basis, 2% are Cost Plus Fixed Fee contracts and 1% are Firm Fixed Price contracts. For additional information, see Note 4, Revenue Recognition . In addition, substantially all accounts receivable, including contract assets, are from agencies of the U.S. Government as of December 31, 2018 and September 30, 2018 . We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The Company's current business base is 99% prime contracts and 1% subcontracts. We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. See Note 5, Supporting Financial Information-Accounts Receivable. The VA comprised approximately 68% and 66% of revenue for the three months ended December 31, 2018 and 2017 , which was 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 58% of the Company's current business base with the VA is derived from nine contracts (for pharmacy services), which are currently operating under extensions through April 30, 2019 pending completion of the procurement process for a new contract. We believe further extensions are possible until the procurement is completed. A single renewal request for proposal ("RFP") has currently been issued for these contracts that 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. The Company has 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. Further, the Company's contract with HHS in support of its Head Start program generated 28% and 28% of our revenue for the fiscal quarters ended December 31, 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 19999. Danya was acquired by the Company in May 2016. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationship with VA or HHS, or if the amount of services we provide to them was materially reduced. Given the uncertainty regarding both the outcome and the timing of the VA RFP discussed above, the Company has not reflected any current impact to its financial statements from this event.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In February 2016, the FASB issued new accounting guidance Accounting Standard Codification ("ASC") 842 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 with terms of more than twelve months. 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. 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. Accounting Standard Update ("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 $2.5 million of lease obligations as of December 31, 2018 that would be evaluated as the implementation of this guidance becomes effective. 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 after December 15, 2019 for both interim and annual reporting periods. The Company is currently assessing the potential impact of the adoption of ASU 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. ASU 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 adopted this standard in the first quarter of fiscal 2019 and adoption did not have a material impact on the Company’s consolidated financial statements. 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, 2018, including interim periods. 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition On October 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers for all open contracts and related amendments as of October 1, 2018 using the modified retrospective method. ASC 606 outlines a five-step model whereby revenue is recognized as performance obligations within the contract are satisfied. ASC 606 also requires new, expanded disclosures regarding revenue recognition. We recognized the impact of adopting ASC 606 but did not record an entry as the impact was immaterial at less than $10 thousand . Results for reporting periods beginning after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under ASC 605, the accounting standards in effect for those periods. In past periods, the Company recognized and recorded revenue on government contracts when: (a) persuasive evidence of an arrangement existed; (b) the services had been delivered to the customer; (c) the sales price was fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility was reasonably assured. We account for a contract when both we and the customer approve and commit; our rights and those of the customer are identified, payment terms are identified; the contract has commercial substance; and collectability of consideration is probable. At contract inception, we identify the distinct goods or services promised in the contract, referred to as performance obligations. Then we determine the total transaction price for the contract; which is the total consideration which we can expect in exchange for the promised goods or services in the contract. The transaction price may include fixed or variable amounts. Due to our contracts being predominantly time and material, the Company does not have variable consideration. The transaction price is allocated to each distinct performance obligation using our best estimate of the standalone selling price for each service promised in the contract. The primary method used to estimate standalone selling price is the hourly billing rate for each labor category identified in the contract with the customer. Revenue is recognized when, or as, the performance obligation is satisfied. We recognize revenue over time when there is a continuous transfer of control to our customer. For our U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. When control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. For services contracts, we satisfy our performance obligations as services are rendered. We use a cost-based input method to measure progress. Contract costs include labor, material and allocable indirect expenses. For time-and-material contracts, we bill the customer per labor hour and per material, and revenue is recognized in the amount invoiced since the amount corresponds directly to the value of our performance to date. We consider control to transfer when we have a present right to payment and our customer has legal title. Essentially, all of our contracts satisfy their performance obligations over time. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications impact performance obligations when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue and profit cumulatively. Furthermore, a significant change in one or more estimates could affect the profitability of our contracts. We recognize adjustments in estimated profit on contracts in the period identified. The impact of adjustments in contract estimates can be reflected in either revenue or operating expenses on the consolidated statement of operations. For time-and-materials contracts, revenue was recognized to the extent of billable rates times hours delivered plus materials and other reimbursable costs incurred. Revenue for cost-reimbursable contracts were recorded as reimbursable costs were incurred, including an estimated share of the applicable contractual fees earned. Contract costs were expensed as incurred. Estimated losses were recognized when identified. Contract assets - Amounts are invoiced as work progresses in accordance with agreed-upon contractual terms. Generally, revenue recognition occurs before we have the right to bill, resulting in contract assets. These contract assets are reported within receivables, net on our consolidated balance sheet and are invoiced in accordance with payment terms defined in each contract. Period end balances will vary from period to period due to agreed-upon contractual terms. Contract liabilities - Presently, we do not receive advances from our customers that exceed revenue earned, resulting in contract liabilities. The following table summarizes the contract balances recognized on the Company's consolidated balance sheets: December 31, September 30, 2018 2018 Contract Assets $ 479 $ 214 Contract Liabilities — — Disaggregation of revenue from contracts with customers We disaggregate our revenue from contracts with customers by customer, contract type, as well as whether the Company acts as prime contractor or sub-contractor. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories: Revenue by customer: Three months ended December 31, 2018 Department of Veterans Affairs $ 22,811 Department of Health and Human Services 10,267 Other 674 Total revenue $ 33,752 Revenue by contract type: Three months ended December 31, 2018 Time and materials $ 32,790 Cost plus fixed fee 609 Firm fixed price 353 Total revenue $ 33,752 Revenue by whether the company acts as a prime contractor or a subcontractor: Three months ended December 31, 2018 Prime $ 33,528 Subcontractor 224 Total revenue $ 33,752

Supporting Financial Informatio

Supporting Financial Information	3 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supporting Financial Information	Supporting Financial Information Accounts receivable (in thousands) December 31, September 30, Ref 2018 2018 Billed receivables $ 13,644 $ 10,066 Contract assets 479 214 Total accounts receivable 14,123 10,280 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 14,123 $ 10,280 Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. 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 December 31, 2018 or September 30, 2018 . Other current assets (in thousands) December 31, September 30, 2018 2018 Prepaid insurance and benefits $ 692 $ 401 Other receivables and prepaid expenses 575 359 Other current assets $ 1,267 $ 760 Equipment and improvements, net (in thousands) December 31, September 30, Ref 2018 2018 Furniture and equipment $ 326 $ 326 Computer equipment 751 751 Computer software 1,731 1,731 Leasehold improvements 66 66 Total fixed assets 2,874 2,874 Less accumulated depreciation and amortization (1,430 ) (1,308 ) Equipment and improvements, net (a) $ 1,444 $ 1,566 Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 7 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 expense was $0.1 million and $0.1 million for the three months ended December 31, 2018 and 2017 . Intangible Assets (in thousands) December 31, September 30, Ref 2018 2018 Intangible assets (a) Customer contracts and related customer relationships $ 16,626 $ 16,626 Covenants not to compete 480 480 Trade name 517 517 Intangible assets 17,623 17,623 Less accumulated amortization Customer contracts and related customer relationships (4,434 ) (4,018 ) Covenants not to compete (128 ) (116 ) Trade name (137 ) (124 ) Total accumulated amortization (4,699 ) (4,258 ) Intangible assets, net $ 12,924 $ 13,365 Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years . Total amount of amortization expense was $0.4 million and $0.4 million for the three months ended December 31, 2018 and 2017 . Estimated amortization expense for future years: (in thousands) Remaining Fiscal 2019 $ 1,321 Fiscal 2020 1,762 Fiscal 2021 1,762 Fiscal 2022 1,762 Fiscal 2023 1,762 Thereafter 4,555 Total amortization expense $ 12,924 Accounts payable, accrued expenses and other current liabilities (in thousands) December 31, September 30, 2018 2018 Accounts payable $ 3,853 $ 3,393 Accrued benefits 1,539 2,060 Accrued bonus and incentive compensation 525 2,191 Accrued workers compensation insurance 3,046 2,642 Other accrued expenses 955 664 Accounts payable, accrued expenses, and other current liabilities $ 9,918 $ 10,950 Debt obligations (in thousands) December 31, September 30, Ref 2018 2018 Bank term loan (a) $ 7,395 $ 7,708 Less unamortized debt issuance costs (677 ) (750 ) Net bank debt obligation 6,718 6,958 Less current portion of bank debt obligations — — Long term portion of bank debt obligation $ 6,718 $ 6,958 Ref (a): Maturity of the bank debt obligation as follows, in thousands: Fiscal 2019 $ — Fiscal 2020 1,562 Fiscal 2021 5,833 Total bank debt obligation $ 7,395 Interest expense (in thousands) Three Months Ended December 31, Ref 2018 2017 Interest expense (a) $ (104 ) $ (219 ) Amortization of debt financing costs as interest expense (b) (73 ) (65 ) Other income (expense), net — 6 Interest expense, net $ (177 ) $ (278 ) Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing

Credit Facilities

Credit Facilities	3 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Credit Facilities	Credit Facilities A summary of our loan facilities and subordinated debt financing as of December 31, 2018 is as follows: ($ in Millions) As of December 31, 2018 Lender Arrangement Loan Balance Interest Maturity Date Fifth Third Bank Secured term loan $25 million (a) $ 7.4 LIBOR* + 3.0% 5/1/2021 Fifth Third Bank Secured revolving line of credit $10 million ceiling (b) $ — LIBOR* + 3.0% 5/1/2021 *LIBOR rate as of December 31, 2018 was 2.34% (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 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 borrowing availability, based on eligible accounts receivables at December 31, 2018 , was $8.7 million . This capacity was comprised of $(1.3) million in a stand-by letter of credit and unused borrowing capacity of $10.0 million . The revolving line of credit has a maturity date of May 1, 2021 and is subject to loan covenants as described above in the Term Loan. DLH is fully compliant with those covenants.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Dec. 31, 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 and intangible assets, valuation allowances established against accounts receivable and deferred tax assets, excess cash flow payments on our term debt, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. Fair value of financial instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, contract assets, 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 . For the three months ended December 31, 2018 , the Company determined that 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. 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. Maintenance and repair costs are expensed as incurred. 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 December 31, 2018 or September 30, 2018 . We report interest and penalties as a component of income tax expense. In the three months ended December 31, 2018 and December 31, 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 simulation 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. Diluted earnings per share is calculated using the treasury stock method.

Stock-based Compensation, Equit

Stock-based Compensation, Equity Grants, and Warrants	3 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation, Equity Grants, and Warrants	Stock-based Compensation, Equity Grants, and Warrants Stock-based compensation expense Options issued under equity incentive plans are designated as either an incentive stock or a non-statutory stock option. No option is 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 December 31, 2018 , there were 1.5 million shares available for grant. Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations: (in thousands) Three months ended Ref December 31, 2018 2017 DLH employees $ 62 $ 64 Non-employee directors (a) 131 693 Total stock option expense $ 193 $ 757 Ref (a): Equity grants of restricted stock units, in accordance with DLH compensation policy for non-employee directors. The equity grants were made in the first quarter of fiscal 2019 and in total 90,000 restricted stock units were granted. Unrecognized stock-based compensation expense (in thousands) December 31, Ref 2018 2017 Unrecognized expense for DLH employees (a) $ 699 $ 1,076 Unrecognized expense for non-employee directors (b) 395 — Total unrecognized expense $ 1,094 $ 1,076 Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. The remaining term for the weighted average expense of these shares will be 2.94 years. Ref (b): Unrecognized stock expense related to current year's equity grants of restricted stock units to non-employee directors in accordance with DLH compensation policy for non-employee directors. Stock option activity for the three months ended December 31, 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 Shares Price Term Value Options outstanding September 30, 2018 2,134 $ 4.31 6.3 $ 6,949 Granted — $ — Exercised (35 ) $ 1.12 Options outstanding, December 31, 2018 2,099 $ 4.33 6.2 $ 5,103 Stock options shares outstanding, vested and unvested for the period ended (in thousands) Number of Shares December 31, September 30, Ref 2018 2018 Vested and exercisable (a) 1,300 1,335 Unvested 799 799 Options outstanding 2,099 2,134 Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 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. Three Months Ended December 31, 2018 2017 Numerator: Net income (loss) $ 1,690 $ (2,851 ) Denominator: Denominator for basic net income per share - weighted-average outstanding shares 11,963 11,837 Effect of dilutive securities: Stock options and restricted stock 1,016 — Denominator for diluted net income per share - weighted-average outstanding shares 12,979 11,837 Net income (loss) per share - basic $ 0.14 $ (0.24 ) Net income (loss) per share - diluted $ 0.13 $ (0.24 )

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contractual obligations as of December 31, 2018 Payments Due By Period Next 12 2-3 4-5 More than 5 (Amounts in thousands) Total Months Years Years Years Debt obligations $ 7,395 $ — $ 7,395 $ — $ — Facility leases 2,540 906 841 676 117 Equipment operating leases 32 21 11 — — Total obligations $ 9,967 $ 927 $ 8,247 $ 676 $ 117 Worker's compensation We accrue worker's 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 as of December 31, 2018 and September 30, 2018 was $3.0 million and $2.6 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	3 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company has determined that for the three months ended December 31, 2018 and 2017 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	3 Months Ended
	Dec. 31, 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. As of December 31, 2018 and September 30, 2018, the Company is reporting a $3.6 million and $4.1 million , respectively, deferred tax asset, which is presented on the balance sheets as deferred taxes in the long-term assets section.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
New Accounting Pronouncements and Adoption of New Accounting Standards	New Accounting Pronouncements In February 2016, the FASB issued new accounting guidance Accounting Standard Codification ("ASC") 842 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 with terms of more than twelve months. 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. 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. Accounting Standard Update ("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 $2.5 million of lease obligations as of December 31, 2018 that would be evaluated as the implementation of this guidance becomes effective. 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 after December 15, 2019 for both interim and annual reporting periods. The Company is currently assessing the potential impact of the adoption of ASU 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. ASU 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 adopted this standard in the first quarter of fiscal 2019 and adoption did not have a material impact on the Company’s consolidated financial statements. 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, 2018, including interim periods. 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 and intangible assets, valuation allowances established against accounts receivable and deferred tax assets, excess cash flow payments on our term debt, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs.
Revenue Recognition	Disaggregation of revenue from contracts with customers We disaggregate our revenue from contracts with customers by customer, contract type, as well as whether the Company acts as prime contractor or sub-contractor. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Revenue Recognition On October 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers for all open contracts and related amendments as of October 1, 2018 using the modified retrospective method. ASC 606 outlines a five-step model whereby revenue is recognized as performance obligations within the contract are satisfied. ASC 606 also requires new, expanded disclosures regarding revenue recognition. We recognized the impact of adopting ASC 606 but did not record an entry as the impact was immaterial at less than $10 thousand . Results for reporting periods beginning after October 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and will continue to be reported under ASC 605, the accounting standards in effect for those periods. In past periods, the Company recognized and recorded revenue on government contracts when: (a) persuasive evidence of an arrangement existed; (b) the services had been delivered to the customer; (c) the sales price was fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility was reasonably assured. We account for a contract when both we and the customer approve and commit; our rights and those of the customer are identified, payment terms are identified; the contract has commercial substance; and collectability of consideration is probable. At contract inception, we identify the distinct goods or services promised in the contract, referred to as performance obligations. Then we determine the total transaction price for the contract; which is the total consideration which we can expect in exchange for the promised goods or services in the contract. The transaction price may include fixed or variable amounts. Due to our contracts being predominantly time and material, the Company does not have variable consideration. The transaction price is allocated to each distinct performance obligation using our best estimate of the standalone selling price for each service promised in the contract. The primary method used to estimate standalone selling price is the hourly billing rate for each labor category identified in the contract with the customer. Revenue is recognized when, or as, the performance obligation is satisfied. We recognize revenue over time when there is a continuous transfer of control to our customer. For our U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. When control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. For services contracts, we satisfy our performance obligations as services are rendered. We use a cost-based input method to measure progress. Contract costs include labor, material and allocable indirect expenses. For time-and-material contracts, we bill the customer per labor hour and per material, and revenue is recognized in the amount invoiced since the amount corresponds directly to the value of our performance to date. We consider control to transfer when we have a present right to payment and our customer has legal title. Essentially, all of our contracts satisfy their performance obligations over time. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications impact performance obligations when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue and profit cumulatively. Furthermore, a significant change in one or more estimates could affect the profitability of our contracts. We recognize adjustments in estimated profit on contracts in the period identified. The impact of adjustments in contract estimates can be reflected in either revenue or operating expenses on the consolidated statement of operations. For time-and-materials contracts, revenue was recognized to the extent of billable rates times hours delivered plus materials and other reimbursable costs incurred. Revenue for cost-reimbursable contracts were recorded as reimbursable costs were incurred, including an estimated share of the applicable contractual fees earned. Contract costs were expensed as incurred. Estimated losses were recognized when identified. Contract assets - Amounts are invoiced as work progresses in accordance with agreed-upon contractual terms. Generally, revenue recognition occurs before we have the right to bill, resulting in contract assets. These contract assets are reported within receivables, net on our consolidated balance sheet and are invoiced in accordance with payment terms defined in each contract. Period end balances will vary from period to period due to agreed-upon contractual terms. Contract liabilities - Presently, we do not receive advances from our customers that exceed revenue earned, resulting in contract liabilities.
Fair Value of Financial Instruments	Fair value of financial instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, contract assets, 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.
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. Maintenance and repair costs are expensed as incurred.
Income Taxes	Income taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either December 31, 2018 or September 30, 2018 . We report interest and penalties as a component of income tax expense. In the three months ended December 31, 2018 and December 31, 2017 , we recognized no interest and no penalties related to income taxes.
Stock-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 simulation 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. Diluted earnings per share is calculated using the treasury stock method.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Schedule of Contract Balances Recognized on the Company's Consolidated Balance Sheets	The following table summarizes the contract balances recognized on the Company's consolidated balance sheets: December 31, September 30, 2018 2018 Contract Assets $ 479 $ 214 Contract Liabilities — —
Schedule of Disaggregation of Revenue From Contracts with Customers	The following series of tables presents our revenue disaggregated by these categories: Revenue by customer: Three months ended December 31, 2018 Department of Veterans Affairs $ 22,811 Department of Health and Human Services 10,267 Other 674 Total revenue $ 33,752 Revenue by contract type: Three months ended December 31, 2018 Time and materials $ 32,790 Cost plus fixed fee 609 Firm fixed price 353 Total revenue $ 33,752 Revenue by whether the company acts as a prime contractor or a subcontractor: Three months ended December 31, 2018 Prime $ 33,528 Subcontractor 224 Total revenue $ 33,752

Supporting Financial Informat_2

Supporting Financial Information (Tables)	3 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable	Accounts receivable (in thousands) December 31, September 30, Ref 2018 2018 Billed receivables $ 13,644 $ 10,066 Contract assets 479 214 Total accounts receivable 14,123 10,280 Less: Allowance for doubtful accounts (a) — — Accounts receivable, net $ 14,123 $ 10,280 Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. 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 December 31, 2018 or September 30, 2018 .
Schedule of Other Current Assets	Other current assets (in thousands) December 31, September 30, 2018 2018 Prepaid insurance and benefits $ 692 $ 401 Other receivables and prepaid expenses 575 359 Other current assets $ 1,267 $ 760
Schedule of Equipment and Improvements, Net	Equipment and improvements, net (in thousands) December 31, September 30, Ref 2018 2018 Furniture and equipment $ 326 $ 326 Computer equipment 751 751 Computer software 1,731 1,731 Leasehold improvements 66 66 Total fixed assets 2,874 2,874 Less accumulated depreciation and amortization (1,430 ) (1,308 ) Equipment and improvements, net (a) $ 1,444 $ 1,566 Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives ( 3 to 7 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 expense was $0.1 million and $0.1 million for the three months ended December 31, 2018 and 2017
Schedule of Intangible Assets	Intangible Assets (in thousands) December 31, September 30, Ref 2018 2018 Intangible assets (a) Customer contracts and related customer relationships $ 16,626 $ 16,626 Covenants not to compete 480 480 Trade name 517 517 Intangible assets 17,623 17,623 Less accumulated amortization Customer contracts and related customer relationships (4,434 ) (4,018 ) Covenants not to compete (128 ) (116 ) Trade name (137 ) (124 ) Total accumulated amortization (4,699 ) (4,258 ) Intangible assets, net $ 12,924 $ 13,365 Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years . Total amount of amortization expense was $0.4 million and $0.4 million for the three months ended December 31, 2018 and 2017
Schedule of Estimated Amortization of Intangible Assets	Estimated amortization expense for future years: (in thousands) Remaining Fiscal 2019 $ 1,321 Fiscal 2020 1,762 Fiscal 2021 1,762 Fiscal 2022 1,762 Fiscal 2023 1,762 Thereafter 4,555 Total amortization expense $ 12,924
Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities	Accounts payable, accrued expenses and other current liabilities (in thousands) December 31, September 30, 2018 2018 Accounts payable $ 3,853 $ 3,393 Accrued benefits 1,539 2,060 Accrued bonus and incentive compensation 525 2,191 Accrued workers compensation insurance 3,046 2,642 Other accrued expenses 955 664 Accounts payable, accrued expenses, and other current liabilities $ 9,918 $ 10,950
Schedule of Debt Obligations	Debt obligations (in thousands) December 31, September 30, Ref 2018 2018 Bank term loan (a) $ 7,395 $ 7,708 Less unamortized debt issuance costs (677 ) (750 ) Net bank debt obligation 6,718 6,958 Less current portion of bank debt obligations — — Long term portion of bank debt obligation $ 6,718 $ 6,958 Ref (a): Maturity of the bank debt obligation as follows, in thousands: Fiscal 2019 $ — Fiscal 2020 1,562 Fiscal 2021 5,833 Total bank debt obligation $ 7,395
Schedule of Expense	Interest expense (in thousands) Three Months Ended December 31, Ref 2018 2017 Interest expense (a) $ (104 ) $ (219 ) Amortization of debt financing costs as interest expense (b) (73 ) (65 ) Other income (expense), net — 6 Interest expense, net $ (177 ) $ (278 ) Ref (a): Interest expense on borrowing Ref (b): Amortizations of expenses related to securing financing

Credit Facilities (Tables)

Credit Facilities (Tables)	3 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of Credit Facilities	A summary of our loan facilities and subordinated debt financing as of December 31, 2018 is as follows: ($ in Millions) As of December 31, 2018 Lender Arrangement Loan Balance Interest Maturity Date Fifth Third Bank Secured term loan $25 million (a) $ 7.4 LIBOR* + 3.0% 5/1/2021 Fifth Third Bank Secured revolving line of credit $10 million ceiling (b) $ — LIBOR* + 3.0% 5/1/2021 *LIBOR rate as of December 31, 2018 was 2.34%

Stock-based Compensation, Equ_2

Stock-based Compensation, Equity Grants, and Warrants (Tables)	3 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-based Compensation Expense	Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations: (in thousands) Three months ended Ref December 31, 2018 2017 DLH employees $ 62 $ 64 Non-employee directors (a) 131 693 Total stock option expense $ 193 $ 757 Ref (a): Equity grants of restricted stock units, in accordance with DLH compensation policy for non-employee directors. The equity grants were made in the first quarter of fiscal 2019 and in total 90,000 restricted stock units were granted. Unrecognized stock-based compensation expense (in thousands) December 31, Ref 2018 2017 Unrecognized expense for DLH employees (a) $ 699 $ 1,076 Unrecognized expense for non-employee directors (b) 395 — Total unrecognized expense $ 1,094 $ 1,076 Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. The remaining term for the weighted average expense of these shares will be 2.94 years. Ref (b): Unrecognized stock expense related to current year's equity grants of restricted stock units to non-employee directors in accordance with DLH compensation policy for non-employee directors.
Schedule of Stock Option Activity	The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock. (in years) Weighted Weighted Average (in thousands) (in thousands) Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price Term Value Options outstanding September 30, 2018 2,134 $ 4.31 6.3 $ 6,949 Granted — $ — Exercised (35 ) $ 1.12 Options outstanding, December 31, 2018 2,099 $ 4.33 6.2 $ 5,103
Schedule of Option Shares Outstanding, Vested and Expected to Vest	Stock options shares outstanding, vested and unvested for the period ended (in thousands) Number of Shares December 31, September 30, Ref 2018 2018 Vested and exercisable (a) 1,300 1,335 Unvested 799 799 Options outstanding 2,099 2,134 Ref (a): Certain awards vest upon satisfaction of certain performance criteria.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2018
Earnings Per Share [Abstract]
Schedule of Diluted Earnings per Share	Diluted earnings per share is calculated using the treasury stock method. Three Months Ended December 31, 2018 2017 Numerator: Net income (loss) $ 1,690 $ (2,851 ) Denominator: Denominator for basic net income per share - weighted-average outstanding shares 11,963 11,837 Effect of dilutive securities: Stock options and restricted stock 1,016 — Denominator for diluted net income per share - weighted-average outstanding shares 12,979 11,837 Net income (loss) per share - basic $ 0.14 $ (0.24 ) Net income (loss) per share - diluted $ 0.13 $ (0.24 )

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Contractual Obligations	Contractual obligations as of December 31, 2018 Payments Due By Period Next 12 2-3 4-5 More than 5 (Amounts in thousands) Total Months Years Years Years Debt obligations $ 7,395 $ — $ 7,395 $ — $ — Facility leases 2,540 906 841 676 117 Equipment operating leases 32 21 11 — — Total obligations $ 9,967 $ 927 $ 8,247 $ 676 $ 117

Business Overview (Details)

Business Overview (Details)	3 Months Ended
	Dec. 31, 2018employeecontractlocationoption	Dec. 31, 2017
Revenue concentration | Customer concentration | US Federal Government
Concentration Risk [Line Items]
Concentration risk percentage	100.00%
Revenue concentration | Customer concentration | VA
Concentration Risk [Line Items]
Concentration risk percentage	68.00%	66.00%
Number of contracts	16
Revenue concentration | Customer concentration | VA | Pharmacy Services
Concentration Risk [Line Items]
Concentration risk percentage	58.00%
Number of contracts	9
Revenue concentration | Customer concentration | VA | Logistic Services
Concentration Risk [Line Items]
Number of contracts	7
Revenue concentration | Customer concentration | HHS
Concentration Risk [Line Items]
Concentration risk percentage	30.00%	32.00%
Revenue concentration | Customer concentration | Defense/VA
Concentration Risk [Line Items]
Concentration risk percentage	69.00%
Revenue concentration | Customer concentration | Human Services and Solutions
Concentration Risk [Line Items]
Concentration risk percentage	29.00%
Revenue concentration | Customer concentration | Public Health/Life Sciences
Concentration Risk [Line Items]
Concentration risk percentage	2.00%
Revenue concentration | Customer concentration | Public Health/Life Sciences | Time and materials
Concentration Risk [Line Items]
Concentration risk percentage	97.00%
Revenue concentration | Customer concentration | Public Health/Life Sciences | Cost plus fixed fee
Concentration Risk [Line Items]
Concentration risk percentage	2.00%
Revenue concentration | Customer concentration | Public Health/Life Sciences | Firm fixed price
Concentration Risk [Line Items]
Concentration risk percentage	1.00%
Revenue concentration | Customer concentration | Head Start Program
Concentration Risk [Line Items]
Concentration risk percentage	28.00%	28.00%
Revenue concentration | Customer concentration | Head Start Program | Time and materials
Concentration Risk [Line Items]
Government contract, number of option periods | option	4
Government contract, term of award	5 years
Revenue concentration | Revenue from Rights Concentration Risk [Member] | Prime
Concentration Risk [Line Items]
Concentration risk percentage	99.00%
Revenue concentration | Revenue from Rights Concentration Risk [Member] | Subcontractor
Concentration Risk [Line Items]
Concentration risk percentage	1.00%
UNITED STATES
Concentration Risk [Line Items]
Number of employees | employee	1,600
Number of locations in which entity operates | location	30

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Thousands	Oct. 01, 2018USD ($)
ASC 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of adoption of new accounting pronouncement in opening balance sheet (less than)	$ 10

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Contract Assets	$ 479	$ 214
Contract Liabilities	$ 0	$ 0

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total Revenue	$ 33,752	$ 30,215
Prime
Disaggregation of Revenue [Line Items]
Total Revenue	33,528
Subcontractor
Disaggregation of Revenue [Line Items]
Total Revenue	224
Time and materials
Disaggregation of Revenue [Line Items]
Total Revenue	32,790
Cost plus fixed fee
Disaggregation of Revenue [Line Items]
Total Revenue	609
Firm fixed price
Disaggregation of Revenue [Line Items]
Total Revenue	353
Department of Veterans Affairs
Disaggregation of Revenue [Line Items]
Total Revenue	22,811
Department of Health and Human Services
Disaggregation of Revenue [Line Items]
Total Revenue	10,267
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 674

Supporting Financial Informat_3

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Billed receivables	$ 13,644	$ 10,066
Contract assets	479	214
Total accounts receivable	14,123	10,280
Less: Allowance for doubtful accounts	0	0
Accounts receivable, net	$ 14,123	$ 10,280

Supporting Financial Informat_4

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid insurance and benefits	$ 692	$ 401
Other receivables and prepaid expenses	575	359
Other current assets	$ 1,267	$ 760

Supporting Financial Informat_5

Supporting Financial Information - Equipment and Improvements, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Furniture and equipment	$ 326		$ 326
Computer equipment	751		751
Computer software	1,731		1,731
Leasehold improvements	66		66
Total fixed assets	2,874		2,874
Less accumulated depreciation and amortization	(1,430)		(1,308)
Equipment and improvements, net	$ 1,444		$ 1,566
Minimum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets	3 years
Maximum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets	7 years
Leasehold Improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets	3 years
Leasehold Improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful of long-lived assets	7 years
Equipment
Property, Plant and Equipment [Line Items]
Depreciation of equipment	$ 100	$ 100

Supporting Financial Informat_6

Supporting Financial Information - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 17,623		$ 17,623
Total accumulated amortization	(4,699)		(4,258)
Intangible assets, net	$ 12,924		13,365
Estimated useful live of intangible assets	10 years
Amortization expense of intangible assets	$ 400	$ 400
Customer contracts and related customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	16,626		16,626
Total accumulated amortization	(4,434)		(4,018)
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	480		480
Total accumulated amortization	(128)		(116)
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	517		517
Total accumulated amortization	$ (137)		$ (124)

Supporting Financial Informat_7

Supporting Financial Information - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining Fiscal 2019	$ 1,321
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	$ 12,924	$ 13,365

Supporting Financial Informat_8

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 3,853	$ 3,393
Accrued benefits	1,539	2,060
Accrued bonus and incentive compensation	525	2,191
Accrued workers compensation insurance	3,046	2,642
Other accrued expenses	955	664
Accounts payable, accrued expenses, and other current liabilities	$ 9,918	$ 10,950

Supporting Financial Informat_9

Supporting Financial Information - Debt Obligations (Details) - Debt obligations - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
Bank term loan	$ 7,395	$ 7,708
Less unamortized debt issuance costs	(677)	(750)
Net bank debt obligation	6,718	6,958
Less current portion of bank debt obligations	0	0
Long term portion of bank debt obligation	$ 6,718	$ 6,958

Supporting Financial Informa_10

Supporting Financial Information - Maturities of Debt Obligations (Details) - Debt obligations - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Debt Instrument [Line Items]
Fiscal 2,019	$ 0
Fiscal 2,020	1,562
Fiscal 2,021	5,833
Total bank debt obligation	$ 7,395	$ 7,708

Supporting Financial Informa_11

Supporting Financial Information - Other Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest expense	$ (104)	$ (219)
Amortization of debt financing costs as interest expense	(73)	(65)
Other income (expense), net	0	6
Interest expense, net	$ (177)	$ (278)

Credit Facilities - Loan Facili

Credit Facilities - Loan Facilities and Subordinated Debt (Details) - Secured Debt - Fifth Third Bank Credit Facility	3 Months Ended
	Dec. 31, 2018USD ($)
Term Loans
Line of Credit Facility [Line Items]
Secured term loan, face amount	$ 25,000,000
Total bank debt obligation	$ 7,400,000
Term Loans | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	2.34%
Basis spread on variable rate percentage	3.00%
Line of Credit
Line of Credit Facility [Line Items]
Secured revolving line of credit, ceiling	$ 10,000,000
Total bank debt obligation	$ 0
Line of Credit | LIBOR
Line of Credit Facility [Line Items]
Interest rate percentage	2.34%
Basis spread on variable rate percentage	3.00%

Credit Facilities - Narrative (

Credit Facilities - Narrative (Details) - Secured Debt - Fifth Third Bank Credit Facility	1 Months Ended	3 Months Ended
	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Term Loans
Line of Credit Facility [Line Items]
Secured term loan, face amount		$ 25,000,000
Number of equal installment payments		59 months
Monthly installment payments		$ 312,500
Fixed charge coverage ratio		1.35
Ratio of debt to EBITDA at closing at thereafter		2.99
Ratio of debt to EBDTA for the period through December 31, 2017		3
Ratio of debt to EBDTA for the period ending September 30, 2018 through maturity		2.5
Voluntary repayments of lines of credit	$ 5,600,000
Period covered by voluntary repayment of line of credit	18 months
Term Loans | 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 EBDTA		75.00%
Ratio of funded indebtedness to adjusted EBDTA, actual		2.50
Term Loans | 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 EBDTA		50.00%
Term Loans | Maximum | Excess Cash Flows Less Than 2.50 Greater Than 2.00
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual		2.50
Term Loans | Minimum | Excess Cash Flows Less Than 2.50 Greater Than 2.00
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual		2
Line of Credit
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity		$ 10,000,000
Line of credit, current borrowing capacity		8,700,000
Line of credit, unused borrowing capacity		10,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, current borrowing capacity		$ 1,300,000

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 25,989,000		$ 25,989,000
Goodwill impairment			0
Uncertain tax positions	0		$ 0
Income tax interest expense	0	$ 0
Income tax penalties expense	0	$ 0
Cash, FDIC insured amount	$ 250,000
Employee Stock Option
Acquired Indefinite-lived Intangible Assets [Line Items]
Number of awards authorized for issuance (in shares)	0
Expiration term of share-based compensation plan	10 years
Minimum
Acquired Indefinite-lived Intangible Assets [Line Items]
Estimated useful of long-lived assets	3 years
Maximum
Acquired Indefinite-lived Intangible Assets [Line Items]
Estimated useful of long-lived assets	7 years

Stock-based Compensation, Equ_3

Stock-based Compensation, Equity Grants, and Warrants - Narrative (Details) - Employee Stock Option	3 Months Ended
	Dec. 31, 2018shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards authorized for issuance (in shares)	0
Expiration term of share-based compensation plan	10 years
Number of shares available for grant (in shares)	1,500,000

Stock-based Compensation, Equ_4

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	$ 193	$ 757
Total unrecognized expense	$ 1,094		$ 1,076
Weighted average share based compensation expense recognition period	2 years 11 months 8 days
Restricted Stock Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of restricted stock units granted (in shares)	90,000
DLH employees | Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	$ 62	64
Total unrecognized expense	699		1,076
Non-employee directors | Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	131	$ 693
Total unrecognized expense	$ 395		$ 0

Stock-based Compensation, Equ_5

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Number of Shares
Outstanding at the beginning of the period (in shares)	2,134
Granted (in shares)	0
Exercised (in shares)	(35)
Outstanding at the end of the period (in shares)	2,099	2,134
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 4.31
Granted (in dollars per share)	0
Exercised (in dollars per share)	1.12
Outstanding at the end of the period (in dollars per share)	$ 4.33	$ 4.31
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term	6 years 2 months 12 days	6 years 3 months 18 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 6,949
Outstanding at the end of the period (in dollars)	$ 5,103	$ 6,949

Stock-based Compensation, Equ_6

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands	Dec. 31, 2018	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested and exercisable (in shares)	1,300	1,335
Unvested (in shares)	799	799
Option outstanding (in shares)	2,099	2,134

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Numerator [Abstract]
Net income (loss)	$ 1,690	$ (2,851)
Denominator [Abstract]
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares)	11,963	11,837
Effect of dilutive securities:
Stock options and restricted stock (shares)	1,016	0
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares)	12,979	11,837
Net income per share, basic (in dollars per share)	$ 0.14	$ (0.24)
Net income per share - diluted (in dollars per share)	$ 0.13	$ (0.24)

Commitment and Contingencies -

Commitment and Contingencies - Contractual Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Long Term Debt and Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Total Obligations	$ 9,967
Next 12 Months	927
2-3 Years	8,247
4-5 Years	676
More than 5 Years	117
Facility leases
Operating Leases
Total operating leases	2,540
Next 12 Months	906
2-3 Years	841
4-5 Years	676
More than 5 Years	117
Equipment operating leases
Operating Leases
Total operating leases	32
Next 12 Months	21
2-3 Years	11
4-5 Years	0
More than 5 Years	0
Debt obligations
Debt Obligations
Total bank debt obligation	7,395	$ 7,708
Next 12 Months	0
2-3 Years	7,395
4-5 Years	0
More than 5 Years	$ 0

Commitment and Contingencies _2

Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Accrued workers compensation insurance	$ 3,046	$ 2,642

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Deferred taxes, net	$ 3,596	$ 4,137