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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Sep. 30, 2014	Nov. 30, 2014	Mar. 31, 2014
Document and Entity Information
Entity Registrant Name	DLH Holdings Corp.
Entity Central Index Key	0000785557
Document Type	10-K
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,632,396
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	Yes
Entity Public Float			$ 11,328,416

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]
Revenue	$ 60,493	$ 53,506
Direct expenses	51,534	46,007
Gross margin	8,959	7,499
General and administrative expenses	8,089	7,130
Depreciation and amortization	106	121
Income from operations	764	248
Other expense, net	(4)	(407)
Income (loss) before income taxes	760	(159)
(Benefit) provision for income taxes	4,597	0
Net income (loss)	$ 5,357	$ (159)
Earnings Per Share [Abstract]
Income (loss) before taxes per share - basic (dollars per share)	$ 0.08	$ (0.02)
Income (loss) before taxes per share - diluted (dollars per share)	0.08	(0.02)
Net income (loss) per share - basic (dollars per share)	0.56	(0.02)
Net income (loss) per share - diluted (dollars per share)	$ 0.54	$ (0.02)
Weighted average common shares outstanding
Basic (in shares)	9,570	9,310
Diluted (in shares)	9,839	9,310

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Current assets:
Cash and cash equivalents	$ 3,908	$ 3,408
Accounts receivable, net	12,372	11,943
Deferred taxes, net	84	0
Other current assets	510	599
Total current assets	16,874	15,950
Equipment and improvements, net	63	156
Deferred taxes, net	4,513	0
Goodwill	8,595	8,595
Other long-term assets	27	1,057
Total assets	30,072	25,758
CURRENT LIABILITIES
Bank loan payable	0	1,313
Derivative financial instruments, at fair value	0	160
Accrued payroll	11,465	11,138
Accounts payable, accrued expenses, and other current liabilities	4,746	5,343
Total current liabilities	16,211	17,954
LONG TERM LIABILITIES
Other long term liability	15	20
Total liabilities	16,226	17,974
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Preferred stock, $.10 par value; authorized 5,000 shares, none issued and outstanding	0	0
Common stock, $.001 par value; authorized 40,000 shares; issued 9,568 at September 30, 2014 and 9,320 at September 30, 2013, outstanding 9,566 at September 30, 2014 and 9,318 at September 30, 2013	10	9
Additional paid-in capital	76,083	75,400
Accumulated deficit	(62,244)	(67,601)
Treasury stock, 2 shares at cost at September 30, 2014 and 2 shares at cost at September 30, 2013	(3)	(24)
Total shareholders’ equity	13,846	7,784
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 30,072	$ 25,758

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2014	Sep. 30, 2013
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	40,000,000	40,000,000
Common stock, issued shares	9,568,000	9,320,000
Common stock, outstanding shares	9,566,000	9,318,000
Treasury stock, shares	2,000	2,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating activities
Net income (loss)	$ 5,357	$ (159)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization including financing costs	116	299
Change in fair value of derivative financial instruments	(99)	41
Non-cash equity grants	472	206
Deferred expense (benefit)	(4,597)	0
Changes in operating assets and liabilities
Accounts receivable	(429)	1,085
Prepaid workers' compensation and other current assets	89	51
Other assets	1,030	(303)
Accounts payable, accrued payroll, accrued expenses and other current liabilities	(269)	628
Other long term liabilities	(5)	(43)
Net cash provided by operating activities	1,665	1,805
Investing activities
Purchase of equipment and improvements	(13)	(9)
Net cash used in investing activities	(13)	(9)
Financing activities
Net repayments on bank loan payable	(951)	(1,412)
Rights offering expenses	0	(14)
Repayments of capital lease obligations	(22)	(51)
Net repayment on convertible debentures	(140)	0
Proceeds from exercise of warrants	52	0
Repurchased shares of common stock held as treasury stock	21	0
Repurchased shares of common stock subsequently canceled	(112)	0
Net cash used in financing activities	(1,152)	(1,477)
Net increase in cash and cash equivalents	500	319
Cash and cash equivalents at beginning of period	3,408	3,089
Cash and cash equivalents at end of period	3,908	3,408
Supplemental disclosures of cash flow information
Cash paid during the period for interest	124	94
Cash paid during the period for income taxes	0	0
Non-cash settlement of warrants	$ 62	$ 0

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock
Beginning Balance, Shares at Sep. 30, 2012		9,266			2
Beginning Balance at Sep. 30, 2012	$ 7,750	$ 9	$ 75,207	$ (67,442)	$ (24)
Director restricted stock grants (shares)		52
Director restricted stock grants	54		54
Issuance of shares for services	12		12
Expense related to employee stock option grants	140		140
Fees related to rights offering	(13)		(13)
Net income	$ (159)			(159)
Ending Balance, Shares at Sep. 30, 2013	9,318	9,318			2
Ending Balance at Sep. 30, 2013	$ 7,784	$ 9	75,400	(67,601)	$ (24)
Director restricted stock grants (shares)		80
Director restricted stock grants	109		109
Expense related to employee stock option grants	363		363
Exercise of convertible debentures (shares)		168
Exercise of convertible debentures	210	$ 1	209
Exercise of warrants (shares)		54
Exercise of warrants	114		114
Cancellations of shares (shares)		(52)			(2)
Cancellation of shares	(88)		(112)		$ 24
Purchase of common stock	(3)				$ (3)
Purchase of common stock (shares)		(2)			2
Net income	5,357			5,357
Ending Balance, Shares at Sep. 30, 2014		9,566			2
Ending Balance at Sep. 30, 2014	$ 13,846	$ 10	$ 76,083	$ (62,244)	$ (3)

Basis of Presentation	12 Months Ended
Basis of Presentation	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles and with the instructions to Form 10-K and Regulation S-K.

Business Overview	12 Months Ended
Business Overview	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview For more than 25 years, DLH Holdings Corp. ("DLH"), has provided professional services to the U.S. Government. Headquartered in Atlanta, Georgia, DLH employs over 1,200 skilled technicians, logisticians, engineers, healthcare and support personnel at more than 25 locations around the United States. DLH’s operating subsidiary, DLH Solutions, Inc., is organized into two broad integrated revenue streams: Healthcare Delivery Solutions and Logistics & Technical Services. Our customers, a majority of whom are within the Departments of Defense ("DoD") and Veterans Affairs ("DVA"), benefit from proven business process management processes, technical excellence and differentiation, and cost management. The remaining portion of DLH's business is comprised of customers within the Center for Disease Control and Prevention, Departments of Justice, Agriculture, Interior and Federal Emergency Management Agency, at locations throughout the United States. DLH Holdings Corp. (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our") manages its operations from its principal executive offices at 1776 Peachtree Street, Atlanta, Georgia 30309. Presently, the Company derives all of its revenue from agencies of the federal government. A major customer is defined as a customer from whom the Company derives at least 10% of its revenues. In each of the fiscal years ended September 30, 2014 and 2013, revenue from the U.S. Government accounted, either directly or indirectly, for 100% of the Company’s total revenue. Within the U.S. Government, our largest customer continues to be the Department of Veterans Affairs (DVA), at 96% of revenue for the twelve months ended September 30, 2014 and 2013. In addition, all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of September 30, 2014 and 2013. We believe that the credit risk associated with our receivables is limited due to the credit worthiness of these customers. Accordingly, DLH remains dependent upon the continuation of its relationship with the DVA. As of September 30, 2014, contracts with the DVA have anticipated periods of performance ranging from approximately two to up to four years. These agreements are subject to the Federal Acquisition Regulations. While there can be no assurance as to the actual amount of services that the Company will ultimately provide to the DVA under its current contract, we believe that our strong working relationship and our effective service delivery support ongoing performance for the contract term. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationships with the DVA.

New Accounting Pronouncements	12 Months Ended
New Accounting Pronouncements	Sep. 30, 2014
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, this guidance expands related disclosure requirements. The effective date of these revisions is for reporting periods beginning after December 15, 2016, with early application not permitted. The Company is evaluating the impact of this revision. In June 2014, the FASB issued guidance related to accounting for share-based payments for certain performance stock awards. The effective date of this guidance is for reporting periods beginning after December 15, 2015, with early adoption permitted. The Company is evaluating the impact of this guidance. In August 2014, the Financial Accounting Standards Board (FASB) issued guidance regarding management's going concern evaluations. The guidance requires management to evaluate, at each interim and annual reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued, and provide related disclosures. The guidance is effective for all entities for annual periods ending after December 15, 2016, and for annual and interim periods thereafter, and early adoption is permitted. We do not believe the standard will have a material impact on our financial statement disclosures.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

Reclassifications	12 Months Ended
Reclassifications	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications	Reclassifications Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. These reclassifications had no effect on previously reported results of operations or accumulated deficit.

Supporting Financial Information Supporting Financial Information

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Accounts Receivable



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Billed receivables			$	2,569		$	2,408
Unbilled receivables	(a)		9,803			9,535
Total accounts receivable			12,372			11,943
Less: Allowance for doubtful accounts	(b)		—			—
Accounts receivable, net			$	12,372		$	11,943

Ref (a): Includes $9.3 million related to retroactive billings submitted to incorporate the impact of relevant wage determinations on certain contracts. Revenues related to these retroactive billings were recognized in fiscal 2008 in accordance with GAAP, as follows: (1) the Company developed and calculated an amount for such prior period services and had a contractual right to bill for such amounts under its arrangements, which was formalized in a contract modification (2) there were no remaining unfulfilled conditions for approval of such billings and (3) collectibility was reasonably assured based on historical practices with, and contractual requirements of, the DVA. The related direct costs, principally comprised of salaries and benefits, were accrued to match the recognized reimbursements from the Federal agency; upon approval, wages will be processed for payment to the employees. During the year ended September 30, 2008, DLH recognized revenues of $10.8 million revenue related to these non-recurring adjustments, of which $1.5 million was subsequently billed and collected. DLH has had ongoing interactions with the customer during fiscal 2014, and in September 2014, we submitted a claim to the DVA to seek a final determination by the DVA’s contracting officer of the amount due to DLH and immediate payment of such amount. We expect closure on this issue within the next twelve months.

Ref (b): Accounts receivable are unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. Our allowance for doubtful accounts was zero at both September 30, 2014 and 2013.

Other Current Assets



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Workers' compensation receivable	(a)		$	199		$	358
Prepaid insurance expense			176			143
Other prepaid expenses			135			98
Total other current assets			$	510		$	599

Ref (a): As part of the Company’s discontinued PEO operations, DLH had a workers’ compensation program with Zurich American Insurance Company (“Zurich”) which covered the period from March 22, 2002 through November 16, 2003, inclusive. DLH estimates that the remaining workers compensation receivable of approximately $0.2 million will be received within the next twelve months.

Debt Obligations



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Bank loan payable			$	—		$	951
Current portion of capital lease obligation			—			22
Convertible debenture, net	(a)		—			340
Total debt obligations			$	—		$	1,313

Ref (a): See Note 12 regarding maturity and closure of the convertible debenture.

Accrued Payroll



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Accrued current payroll			$	2,440		$	2,302
Accrued payroll related to unbilled accounts receivable			9,025			8,836
Total accrued payroll			$	11,465		$	11,138

Equipment and Improvements, net



			(in thousands)
		September 30,				September 30,
	Ref		2014				2013
Furniture and equipment			$	139			$	139
Computer equipment			126				126
Computer software			430				417
Leasehold improvements			24				24
			719				706
Less accumulated depreciation and amortization			(656		)		(550		)
Equipment and improvements, net	(a)		$	63			$	156

Ref (a): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 5) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred.

Accounts Payable, Accrued Expenses, and Other Current Liabilities



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Accounts payable			$	779		$	1,396
Accrued benefits			720			596
Accrued bonus and incentive compensation			693			860
Accrued workers compensation insurance			767			563
Other accrued expenses			339			534
Payroll tax accrual	(a)		1,448			1,394
Total accrued expenses and other current liabilities			$	4,746		$	5,343

Ref (a): From 2006 through 2009, DLH received notices from the Internal Revenue Service (“IRS”) claiming taxes, interest and penalties due related to payroll taxes. These notices are predominantly related to the former PEO operations which were sold in fiscal 2003. The liability includes estimated accrued penalties and interest through the date of the financial statements totaling approximately $630 thousand.

Other Income (Expense)



		(in thousands)
		Year Ended
		September 30,
	Ref	2014			2013
Interest expense, net		$	(99	)	$	(172	)
Amortization of deferred financing costs		(10		)	(177		)
Change in value of derivative financial instruments	(a)	99			(42		)
Other income (expense), net		6			(16		)
Total other expense, net		$	(4	)	$	(407	)

Ref (a): Represents the adjustment to fair value of embedded conversion feature and warrants related to the Company's convertible debentures. Such instruments did not meet the requirements for qualified hedge accounting under GAAP.

Liquidity	12 Months Ended
Liquidity	Sep. 30, 2014
Cash and Cash Equivalents [Abstract]
Liquidity	Liquidity At September 30, 2014, the Company had cash and cash equivalents of approximately $3.9 million, net working capital of approximately $0.7 million, and an accumulated deficit of approximately $(62.2) million. For the year ended September 30, 2014, the Company realized income before taxes of approximately 0.8 million, as compared to a loss before taxes of $(0.2) million for the year ended September 30, 2013. The Company has a credit facility with a lending institution which provides a maximum amount of $6 million and includes a maximum amount available under the unbilled facility of $1 million. The current term of the credit facility expires on July 29, 2015 and thereafter shall automatically renew on each anniversary date thereof for subsequent twelve month terms unless terminated by either party. Presently, the maximum availability under this loan facility is $3 million, subject to eligible accounts receivable, excluding retroactive billings. The interest rate on the Accounts Receivable portion of the loan was 4.0% at September 30, 2014, and 5.2% at September 30, 2013. The interest rate on the Unbilled Accounts portion was 4.0% at September 30, 2014, and 7.2% at September 30, 2013. At September 30, 2014, our loan availability was approximately $2.5 million, comprised of a $1.4 million letter of credit reserve and $1.1 million of unused loan capacity. Management believes, at present, that: (a) cash and cash equivalents of approximately $3.9 million as of September 30, 2014; (b) the amount available under its line of credit (which is limited to the amount of eligible assets); (c) planned operating cash flow; and (d) effects of cost reduction programs and initiatives should be sufficient to support the Company's operations for twelve months from the date of these financial statements.

- Definition

The entire disclosure for cash and cash equivalent footnotes, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify.

+ References + Details

Significant Accounting Policies	12 Months Ended
Significant Accounting Policies	Sep. 30, 2014
Accounting Policies [Abstract]
Significant Accounting Policies	7. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill, expected settlement amounts of accounts receivable, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and the valuation of derivative financial instruments associated with debt agreements. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations. Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The recognition of revenue from fixed rates is based upon objective criteria that generally do not require significant estimates that may change over time. DLH recognizes and records revenue on government contracts when it is realized, or realizable, and earned. DLH considers these requirements met when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured. Goodwill DLH continues to review its goodwill for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. At September 30, 2014, we performed a goodwill impairment evaluation. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2014. Factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. If an impairment write off of all the goodwill became necessary in future periods, a charge of up to $8.6 million would be expensed in the Consolidated Statement of Operations. All remaining goodwill is attributable to the DLH Solutions operating subsidiary. Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either September 30, 2014 and 2013. We report interest and penalties as a component of income tax expense. In the fiscal years ending September 30, 2014 and 2013, we recognized no interest and no penalties related to income taxes. The Company has adequate net operating loss carryforwards to offset against any taxable income in the current period. The Company recorded a valuation allowance against its net deferred tax assets of $11.1 million and $16.0 million at September 30, 2014 and 2013, respectively. Tax years open for examination are 2010 and forward. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit.

Stock-based Compensatin, Equity Grants, and Warrants

12 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation, Equity Grants, and Warrants

Stock-based compensation, equity grants, and warrants

Stock-based compensation expense

All grants of equity are presently made under the 2006 Long Term Incentive Plan. As of September 30, 2014, 0.9 million shares remained available for grant under the Plan. Options issued under the Plan are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares.

Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:



		(in thousands)
		Year Ended
	Ref	September 30,
		2014		2013
DLH employees		$	363	$	140
Non-employee directors	(a)	109		54
Warrants to consultants	(b)	—		12
Total compensation expense		$	472	$	206

Ref (a): Equity grants of restricted stock to non-employee directors, in accordance with DLH compensation policy for non-employee directors. The shares vested immediately and stock expense was recognized accordingly.

Ref (b): Warrants may be issued from time-to-time to non-employee third parties in order to induce them to enter into certain transactions with the Company. The Company recognizes non-cash expense related to such activity over the estimated period of performance.

Unrecognized stock-based compensation expense



		(in thousands)
		Period Ended
		September 30,
	Ref	2014		2013
Unrecognized expense for DLH employees	(a)	$	346	$	92
Unrecognized expense for non-employee directors	(b)	125		150
Total unrecognized expense		$	471	$	242

Ref (a): Compensation expense for the portion of equity awards for which the requisite service has not been rendered is recognized as the requisite service is rendered. The compensation expense for that portion of awards has been based on the grant-date fair value of those awards as calculated for recognition purposes under applicable guidance. For options that vest based on the Company’s common stock achieving and maintaining defined market prices, the Company values the awards with a binomial model that utilizes various probability factors and other criterion in establishing fair value of the grant. The related compensation expense is recognized over the derived service period determined in the valuation. This expense is expected to be recognized over the next 2.8 years, with a weighted average life of 1.2 years.

Ref (b): Unrecognized stock expense related to prior years equity grants of restricted stock to non-employee directors, based on performance criteria, in accordance with DLH compensation policy for non-employee directors. The shares will vest and expense will be recorded upon future satisfaction of specified performance.

Stock option activity for the year ended September 30, 2014:

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, 2012		1,363		$1.19	8.6	$	140
Granted		250		$0.95
Cancelled
Options outstanding, September 30, 2013		1,613		$1.15	7.9	$	388
Granted	(a)	830		$1.52
Cancelled		(63	)	$1.40
Options outstanding, September 30, 2014		2,380		$1.40	7.8	$	1,589

Ref (a): Option grants to DLH employees were valued using a binomial model, under the following criteria:


•	average risk free interest rates of 2.55% and 0.69% for 2014 and 2013, respectively;


•	expected volatility of 65.8% and 70.2% for 2014 and 2013, respectively;


•	contractual lives and expected lives were 10 years for both periods; and


•	no dividend yield was contemplated for either period.

The resulting average fair values were $0.76 and $0.22 for 2014 and 2013, respectively.

Stock options shares outstanding, vested and unvested for the period ended:



		(in thousands)
		Number of Shares
		September 30,
	Ref	2014	2013
Vested and exercisable	(a)	896	413
Unvested	(b)	1,484	1,200
Options outstanding		2,380	1,613

Ref (a): Weighted average exercise price of vested and exercisable shares was $1.41 and $1.61 at September 30, 2014 and 2013, respectively. Aggregate intrinsic value was $570 thousand and $49 thousand at September 30, 2014 and 2013, respectively. Weighted average contractual term was 8.0 years and 7.9 years at September 30, 2014 and 2013, respectively.

Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

Fair Value of Financial Instruments Fair Value of Financial Instruments

12 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The Company has financial instruments, including accounts receivable, accounts payable, loan payable, notes payable, and accrued expense. Due to the short term nature of these instruments, DLH estimates that the fair value of all financial instruments at September 30, 2014 and September 30, 2013 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets. In addition, the Company has historically presented certain common stock warrants and embedded conversion features associated with Convertible Debentures and has accounted for such derivative financial instruments at fair value. As further described in Note 12, those convertible debentures matured and the common stock warrants were exercised in the three months ended December 31, 2013.

In accordance with authoritative guidance the Company categorized its assets and liabilities based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy as set forth below. The three levels of the hierarchy are defined as follows:

Level 1-Unadjusted quoted prices in active markets for identical assets or liabilities. The Company currently does not have any Level 1 financial assets or liabilities.

Level 2-Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets, and inputs other than quoted prices that are observable for substantially the full term of the asset or liability. The Company currently does not have any Level 2 financial assets or liabilities.

Level 3-Unobservable inputs reflecting management's own assumptions about the input used in pricing the asset or liability.

The following table presents the Company's September 30, 2014 and 2013 liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (all Level 3):



	September 30,
	2014		2013
Liability:	—		—

Derivative financial instruments	$	—	$	160

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Earnings (Loss) Per Share

12 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Basic earnings (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings (loss) per share is calculated by dividing income (loss) available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method.



	(in thousands)
	Year Ended
	September 30, 2014
	2014		2013
Numerator:
Net income (loss)	$	5,357	$	(159	)
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares	9,570		9,310
Effect of dilutive securities:
Stock options and restricted stock	269
Denominator for diluted net income (loss) per share - weighted-average outstanding shares	9,839		9,310

Net income (loss) per share — basic	$	0.56	$	(0.02	)
Net income (loss) per share — diluted	$	0.54	$	(0.02	)

Commitment and Contingencies

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES:

Commitments and Contingencies

Contractual Obligations



			Payments Due By Period
Obligations			Less than		1-3		4-5
(Amounts in thousands)	Total		1 Year		Years		Years
Loan Payable (1)	$	—	$	—	$	—	$	—
Operating Leases	303		143		160		—
Total Obligations	$	303	$	143	$	160	$	—

(1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement.

Retroactive Billing Adjustments

The Company continues to support the Government’s review of the detailed supporting calculations for the retroactive billings described in Note 5 and to negotiate an incremental final amount related to indirect costs and fees applied to these retroactive billings. The additional indirect costs and fees are estimated to be between $0.4 million and $0.6 million. The Company has developed these estimates under the same contractual provisions applied to the sites that were settled in 2008. However, because these amounts remain subject to government review, no assurances can be given that any amounts the Company may receive will be within the range specified above. Refer to Note 5, Accounts Receivable for further information.

Workers Compensation

We accrue workers compensation expense based on claims submitted, applying actuarial loss development factors to estimate the costs incurred but not yet recorded. Our accrued liability for claims development for the years ended September 30, 2014 and 2013 was $767,000 and $563,000, respectively.

Legal Proceedings

As the Company has previously reported, it was advised of a claim by the U.S. Attorney based on an alleged omission to pay certain classes of employees the prevailing wages as required by the Service Contract Act during the years 2003-2010. On

December 12, 2013, the Company was further advised by the U.S. Attorney that, after a review of the merits of the complaint, the U.S. Department of Justice declined to intervene and the claim has been dismissed in its entirety.

Equity and Convertible Debentures Financing	12 Months Ended
Equity and Convertible Debentures Financing	Sep. 30, 2014
Equity [Abstract]
Equity and Convertible Debentures Financing	Equity and Convertible Debentures Financing As has been previously disclosed, certain entities affiliated with Wynnefield Capital, Inc., the Company’s largest stockholder, owned convertible debentures in an aggregate principal amount of $350,000 and warrants to purchase an aggregate of 53,846 shares of common stock. These instruments were issued pursuant to a debenture purchase agreement in June 2011. The warrants were exercisable at a price of $0.96 until June 2016 and the conversion rate of the convertible debentures was $1.25. As of September 30, 2013, the carrying value of these derivative instruments was $160,000, derived by applying a risk-free interest rate of 1.39% for the term of the warrants and the embedded conversion features of the debentures of 5 years and 27 months respectively, with expected volatility of approximately 70%. The resulting fair market values were $0.75 per warrant and $0.43 per $1.25 of debt. Upon maturity on October 28, 2013, the principal amount of $210,000 of convertible debentures was converted into 168,000 shares of common stock and the principal amount of $140,000 on the remaining debenture was repaid in full. In addition, in October 2013, the holders of the warrants exercised such warrants in full for 53,846 shares of common stock. A gain of $119 thousand was recognized, which represented the change in the fair value of the derivative immediately prior to conversion. Additionally, expense of $20 thousand was recorded in the three months ended December 31, 2013, related to fair valuation of the warrants. The accrued liability of $61 thousand with respect to the fair value of the warrants was reflected as additional paid in capital upon their exercise. The shares of the Company’s common stock issued upon conversion of the debentures were issued in reliance on the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended. The shares of the Company’s common stock issued upon exercise of the warrants were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended.

Income Taxes

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

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.

Due to our recent trend of positive operating results, in the fiscal year ended September 30, 2014 we realized a $4.6 million tax benefit, net, related to the release of a portion of our valuation allowance, to reflect the amount of our deferred tax asset that we expect to realize in future years. This release is based upon our current estimate of future taxable earnings based on results generated through the fiscal year ended September 30, 2014. To project taxable income in the carryforward period, we first estimated revenue for the carryforward period based on the expected performance under current contracts, plus expected changes in the contract base. Using these estimates of revenue, we assumed a proportional level of book income as was generated from the revenues recorded in the fiscal year ended September 30, 2014. We further assumed that tax goodwill amortization would continue through its 15 year life.

Using the taxable income projection, we calculated the amount of NOL utilization that would be achieved within each loss year’s carryforward period. Our estimate of future taxable income will be revised at least annually or more frequently upon the occurrence of an event which warrants a new estimate. In the fiscal year ended September 30 2013 the Company did not recognize a tax expense or benefit.

At September 30, 2014 the Company had net operating losses of approximately $40.8 million and $29.2 million for U.S. and state tax return purposes, respectively, and unutilized tax credits of approximately $1.1 million. As a result of previous business combinations and changes in its ownership, there is a substantial amount of NOLs that are subject to annual limitations on utilization. The U.S. NOLs begin to expire in 2021 and continue to expire through 2033.

An analysis of DLH's deferred tax asset and liability is as follows:



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Current deferred income tax asset:
Net operating loss carryforwards and tax credits	$	98		$	—
Accrued liabilities	122			—
Valuation allowance	(136		)	—
Net current deferred tax asset	$	84		$	—



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Deferred income tax asset (liability):
Net operating loss carry forwards and tax credits	$	16,556		$	16,944
Prepaid workers' compensation	273			225
Deferred rent	8			9
Accrued liabilities	336			431
Stock based compensation	646			500
Fixed and intangible assets	(2,176		)	(1,989		)
Other items, net	(129		)	(83		)
Valuation allowance	(11,001		)	(16,037		)
Net deferred tax asset	$	4,513		$	—

The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows:



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Current expense (benefit)	$	7		$	—
Deferred expense (benefit)	(4,604		)	—
Total expense (benefit)	$	(4,597	)	$	—

The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations:



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Federal statutory rate	$	258		$	(54	)
State taxes, net	46			—
Other permanent items	6			3
Tax credits	(7		)
Change in valuation allowance	(4,900		)	51
	$	(4,597	)	$	—

Quarterly Financial Data (Unaudited)

12 Months Ended

Sep. 30, 2014

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

A summary of quarterly information is as follows (in thousands, except per share data)



	2014 Quarters
	First		Second		Third		Fourth
Net revenues	$	14,477	$	14,745	$	15,692	$	15,579
Gross profit	2,112		2,199		2,308		2,340
Income (loss) from operations	66		225		268		205
Income (loss) before income taxes	$	133	$	198	$	251	$	178
(Benefit) provision for income taxes	$	—	$	—	$	—	$	(4,597	)
Net income (loss)	$	133	$	198	$	251	$	4,775
Earnings (loss) before taxes per share: (1) (2)
Basic	$	0.01	$	0.02	$	0.03	$	0.02
Diluted	$	0.01	$	0.02	$	0.03	$	0.02

Earnings (loss) per share: (1) (2)
Basic	$	0.01	$	0.02	$	0.03	$	0.50
Diluted	$	0.01	$	0.02	$	0.03	$	0.48



	2013 Quarters
	First			Second			Third		Fourth
Net revenues	$	12,994		$	13,007		$	13,460	$	14,045
Gross profit	1,788			1,771			1,975		1,964
Income (loss) from operations	(94		)	9			158		173
Income (loss) before income taxes	$	(128	)	$	(109	)	$	68	$	9
(Benefit) provision for income taxes	$	—		$	—		$	—	$	—
Net income (loss)	$	(128	)	$	(109	)	$	68	$	9
Earnings (loss) before taxes per share: (1) (2)
Basic	$	(0.01	)	$	(0.01	)	$	0.01	$	0.00
Diluted	$	(0.01	)	$	(0.01	)	$	0.01	$	0.00

Earnings (loss) per share: (1) (2)
Basic	$	(0.01	)	$	(0.01	)	$	0.01	$	0.00
Diluted	$	(0.01	)	$	(0.01	)	$	0.01	$	0.00

_______________________________________________________________________________


(1)	Sum of the quarterly net income (loss) per share amounts does not equal the full fiscal year net income (loss) per share amount due to the effect of changes during the year in the number of shares outstanding.

(2)

Earnings (loss) per share. Basic earnings (loss) per share is calculated by dividing net income by the weighted-average number of shares outstanding during the reported period. The calculation of diluted earnings per share is similar to basic earnings per share, except that the weighted-average number of shares outstanding includes the dilution from potential shares added from stock options, restricted stock awards and other stock awards.

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Employee Benefits Plans	Employee Benefit Plans As of September 30, 2014, 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 25% of each of the first 4% of a participant's elective contributions under the 401 (k) Plan. DLH recorded related expense of $5 in fiscal 2014 and $93 in fiscal year 2013. A participant is always fully vested in his or her elective contributions and vests in Company matching contributions over a 4 year period.

Subsequent Events	12 Months Ended
Subsequent Events	Sep. 30, 2014
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events: On October 8, 2014, employees at our Chicago location approved the adoption of union representation for non-management employees. The vote taken is still in the process of being certified and collective bargaining has not yet occurred. Management believes that is has good relations with its employees. We do not expect this event to have a material impact to our operating results in the future. Effective as of November 13, 2014, the Company granted an aggregate of 66,250 shares of non-restricted stock to its non-executive directors consistent with its compensation policy for non-executive directors. These shares were issued pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. Management has evaluated subsequent events through the date that the Company's financial statements were issued. Based on this evaluation, the Company has determined that no subsequent events have occurred which require disclosure through the date that these financial statements were issued.

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2014
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of goodwill, expected settlement amounts of accounts receivable, valuation allowances established against accounts receivable and deferred tax assets, measurement of loss development on workers’ compensation claims, and the valuation of derivative financial instruments associated with debt agreements. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill would have a material adverse effect on the Company’s financial position and results of operations.
Revenue Recognition	Revenue Recognition DLH’s revenue is derived from professional and other specialized service offerings to US Government agencies through a variety of contracts, some of which are fixed-price in nature and/or sourced through Federal Supply Schedules administered by the General Services Administration (“GSA”) at fixed unit rates or hourly arrangements. We generally operate as a prime contractor, but have also entered into contracts as a subcontractor. The recognition of revenue from fixed rates is based upon objective criteria that generally do not require significant estimates that may change over time. DLH recognizes and records revenue on government contracts when it is realized, or realizable, and earned. DLH considers these requirements met when: (a) persuasive evidence of an arrangement exists; (b) the services have been delivered to the customer; (c) the sales price is fixed or determinable and free of contingencies or significant uncertainties; and (d) collectibility is reasonably assured.
Goodwill	Goodwill DLH continues to review its goodwill for possible impairment or loss of value at least annually or more frequently upon the occurrence of an event or when circumstances indicate that a reporting unit’s carrying amount is greater than its fair value. At September 30, 2014, we performed a goodwill impairment evaluation. We performed both a qualitative and quantitative assessment of factors to determine whether it was necessary to perform the goodwill impairment test. Based on the results of the work performed, the Company has concluded that no impairment loss was warranted at September 30, 2014. Factors including non-renewal of a major contract or other substantial changes in business conditions could have a material adverse effect on the valuation of goodwill in future periods and the resulting charge could be material to future periods’ results of operations. If an impairment write off of all the goodwill became necessary in future periods, a charge of up to $8.6 million would be expensed in the Consolidated Statement of Operations. All remaining goodwill is attributable to the DLH Solutions operating subsidiary.
Income Taxes	Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either September 30, 2014 and 2013. We report interest and penalties as a component of income tax expense. In the fiscal years ending September 30, 2014 and 2013, we recognized no interest and no penalties related to income taxes. The Company has adequate net operating loss carryforwards to offset against any taxable income in the current period. The Company recorded a valuation allowance against its net deferred tax assets of $11.1 million and $16.0 million at September 30, 2014 and 2013, respectively. Tax years open for examination are 2010 and forward.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit.

- Definition

Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.

+ References + Details

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Supporting Financial Information (Tables)

12 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Billed receivables			$	2,569		$	2,408
Unbilled receivables	(a)		9,803			9,535
Total accounts receivable			12,372			11,943
Less: Allowance for doubtful accounts	(b)		—			—
Accounts receivable, net			$	12,372		$	11,943

Schedule of Other Current Assets



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Workers' compensation receivable	(a)		$	199		$	358
Prepaid insurance expense			176			143
Other prepaid expenses			135			98
Total other current assets			$	510		$	599

Schedule of Debt Obligations



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Bank loan payable			$	—		$	951
Current portion of capital lease obligation			—			22
Convertible debenture, net	(a)		—			340
Total debt obligations			$	—		$	1,313

Ref (a): See Note 12 regarding maturity and closure of the convertible debenture.

Schedule of Accrued Payroll



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Accrued current payroll			$	2,440		$	2,302
Accrued payroll related to unbilled accounts receivable			9,025			8,836
Total accrued payroll			$	11,465		$	11,138

Equipment and Improvemnts, Net



			(in thousands)
		September 30,				September 30,
	Ref		2014				2013
Furniture and equipment			$	139			$	139
Computer equipment			126				126
Computer software			430				417
Leasehold improvements			24				24
			719				706
Less accumulated depreciation and amortization			(656		)		(550		)
Equipment and improvements, net	(a)		$	63			$	156

Accounts Payable, Accrued Expenses, and Other Current Liabilities



			(in thousands)
		September 30,			September 30,
	Ref		2014			2013
Accounts payable			$	779		$	1,396
Accrued benefits			720			596
Accrued bonus and incentive compensation			693			860
Accrued workers compensation insurance			767			563
Other accrued expenses			339			534
Payroll tax accrual	(a)		1,448			1,394
Total accrued expenses and other current liabilities			$	4,746		$	5,343

Other Income (Expense)



		(in thousands)
		Year Ended
		September 30,
	Ref	2014			2013
Interest expense, net		$	(99	)	$	(172	)
Amortization of deferred financing costs		(10		)	(177		)
Change in value of derivative financial instruments	(a)	99			(42		)
Other income (expense), net		6			(16		)
Total other expense, net		$	(4	)	$	(407	)

Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Calculation of basic and diluted net income (loss) per share

Diluted earnings per share is calculated using the treasury stock method.



	(in thousands)
	Year Ended
	September 30, 2014
	2014		2013
Numerator:
Net income (loss)	$	5,357	$	(159	)
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares	9,570		9,310
Effect of dilutive securities:
Stock options and restricted stock	269
Denominator for diluted net income (loss) per share - weighted-average outstanding shares	9,839		9,310

Net income (loss) per share — basic	$	0.56	$	(0.02	)
Net income (loss) per share — diluted	$	0.54	$	(0.02	)

Stock-based Compensation, Equity Grants, and Warrants (Tables)

12 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation Expense

Stock-based compensation expense, shown in the table below, is recorded in general and administrative expenses included in our statement of operations:



		(in thousands)
		Year Ended
	Ref	September 30,
		2014		2013
DLH employees		$	363	$	140
Non-employee directors	(a)	109		54
Warrants to consultants	(b)	—		12
Total compensation expense		$	472	$	206

Unrecognized stock-based compensation expense



		(in thousands)
		Period Ended
		September 30,
	Ref	2014		2013
Unrecognized expense for DLH employees	(a)	$	346	$	92
Unrecognized expense for non-employee directors	(b)	125		150
Total unrecognized expense		$	471	$	242

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, 2012		1,363		$1.19	8.6	$	140
Granted		250		$0.95
Cancelled
Options outstanding, September 30, 2013		1,613		$1.15	7.9	$	388
Granted	(a)	830		$1.52
Cancelled		(63	)	$1.40
Options outstanding, September 30, 2014		2,380		$1.40	7.8	$	1,589

Ref (a): Option grants to DLH employees were valued using a binomial model, under the following criteria:


•	average risk free interest rates of 2.55% and 0.69% for 2014 and 2013, respectively;


•	expected volatility of 65.8% and 70.2% for 2014 and 2013, respectively;


•	contractual lives and expected lives were 10 years for both periods; and


•	no dividend yield was contemplated for either period.

The resulting average fair values were $0.76 and $0.22 for 2014 and 2013, respectively.

Stock Option Shares Outstanding, Vested and Expected to Vest



		(in thousands)
		Number of Shares
		September 30,
	Ref	2014	2013
Vested and exercisable	(a)	896	413
Unvested	(b)	1,484	1,200
Options outstanding		2,380	1,613

Ref (b): Certain awards vest upon satisfaction of certain performance criteria.

Fair Value of Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Liabilities measured at fair value on a recurring basis



	September 30,
	2014		2013
Liability:	—		—

Derivative financial instruments	$	—	$	160

Earnings (Loss) Per Share (Tables)

12 Months Ended

Sep. 30, 2014

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, 2014
	2014		2013
Numerator:
Net income (loss)	$	5,357	$	(159	)
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares	9,570		9,310
Effect of dilutive securities:
Stock options and restricted stock	269
Denominator for diluted net income (loss) per share - weighted-average outstanding shares	9,839		9,310

Net income (loss) per share — basic	$	0.56	$	(0.02	)
Net income (loss) per share — diluted	$	0.54	$	(0.02	)

Commitment and Contingencies (Tables)

12 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations]

Contractual Obligations



			Payments Due By Period
Obligations			Less than		1-3		4-5
(Amounts in thousands)	Total		1 Year		Years		Years
Loan Payable (1)	$	—	$	—	$	—	$	—
Operating Leases	303		143		160		—
Total Obligations	$	303	$	143	$	160	$	—

(1) Represents the amounts recorded in respect of the loan payable due to Presidential Financial Corporation in accordance with the loan agreement.

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of analysis of deferred tax asset and liability

An analysis of DLH's deferred tax asset and liability is as follows:



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Current deferred income tax asset:
Net operating loss carryforwards and tax credits	$	98		$	—
Accrued liabilities	122			—
Valuation allowance	(136		)	—
Net current deferred tax asset	$	84		$	—



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Deferred income tax asset (liability):
Net operating loss carry forwards and tax credits	$	16,556		$	16,944
Prepaid workers' compensation	273			225
Deferred rent	8			9
Accrued liabilities	336			431
Stock based compensation	646			500
Fixed and intangible assets	(2,176		)	(1,989		)
Other items, net	(129		)	(83		)
Valuation allowance	(11,001		)	(16,037		)
Net deferred tax asset	$	4,513		$	—

Summary of significant components of the expense (benefit) for income taxes from continuing operations

The significant components of the expense (benefit) for income taxes from continuing operations are summarized as follows:



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Current expense (benefit)	$	7		$	—
Deferred expense (benefit)	(4,604		)	—
Total expense (benefit)	$	(4,597	)	$	—

Schedule of significant differences between the Federal statutory rate and the entity's effective tax rate for continuing operations

The following table indicates the significant differences between the federal statutory rate and DLH's effective tax rate for continuing operations:



	Year Ended
	September 30,
(amounts in thousands)	2014			2013
Federal statutory rate	$	258		$	(54	)
State taxes, net	46			—
Other permanent items	6			3
Tax credits	(7		)
Change in valuation allowance	(4,900		)	51
	$	(4,597	)	$	—

Business Overview (Details)	3 Months Ended	9 Months Ended	12 Months Ended
Business Overview (Details)	Jun. 30, 2013	Jun. 30, 2013	Sep. 30, 2014 employee business_area location
Concentration Risk [Line Items]
Minimum period for which entity has provided professional services to the U.S. Government (years)			25 years
Number of employees (employee) \| employee			1,200
Minimum number of locations in which entity operates (location) \| location			25
Number of broad integrated revenue streams \| business_area			2
US Government [Member] \| Revenue concentration \| Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)			100.00%
DVA \| Revenue concentration \| Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	96.00%	97.00%	96.00%
DVA \| Minimum
Concentration Risk [Line Items]
Term of government contract			2 years
DVA \| Maximum
Concentration Risk [Line Items]
Term of government contract			4 years

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2008
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 12,372				$ 11,943				$ 12,372	$ 11,943
Less: Allowance for doubtful accounts	0				0				0	0
Accounts Receivable, Net	12,372				11,943				12,372	11,943
Retroactive billing									9,300
Revenue	15,579	$ 15,692	$ 14,745	$ 14,477	14,045	$ 13,460	$ 13,007	$ 12,994	60,493	53,506
Billed Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	2,569				2,408				2,569	2,408
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 9,803				$ 9,535				$ 9,803	$ 9,535
DVA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract revenue nonrecurring											$ 10,800
Revenue											$ 1,500

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Workers' compensation receivable	$ 199	$ 199	$ 358
Prepaid insurance expense	176		143
Other prepaid expenses	135		98
Other current assets	$ 510		$ 599

Supporting Financial Information - Debt Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Loans Payable to Bank, Current	$ 0	$ 951
Current portion of capital lease obligation	0	22
Convertible debenture, net	0	340
Bank loan payable	$ 0	$ 1,313

Supporting Financial Information - Accrued Payroll (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued current payroll	$ 2,440	$ 2,302
Accrued payroll	11,465	11,138
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued current payroll	$ 9,025	$ 8,836

Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Furniture and equipment	$ 139	$ 139
Computer equipment	126	126
Computer software	430	417
Leasehold improvements	24	24
Property, Plant and Equipment, Gross	719	706
Less accumulated depreciation and amortization	(656)	(550)
Equipment and improvements, net	$ 63	$ 156
Leasehold Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Leasehold Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 779		$ 1,396
Accrued benefits	720		596
Accrued bonus and incentive compensation	693		860
Accrued workers compensation insurance	767		563
Other accrued expenses	339		534
Payroll tax accrual	1,448		1,394
Total accrued expenses and other current liabilities	$ 4,746		$ 5,343
Accrued interest and penalties		$ 630

Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest expense, net	$ (99)	$ (172)
Amortization of deferred financing costs	(10)	(177)
Change in value of derivative financial instruments	99	(42)
Other expense, net	6	(16)
Other income (expense) net	$ (4)	$ (407)

Liquidity (Details) - USD ($)	3 Months Ended								12 Months Ended
Liquidity (Details) - USD ($)	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 3,908,000				$ 3,408,000				$ 3,908,000	$ 3,408,000	$ 3,089,000
Net working capital	663,000								663,000
Accumulated deficit	(62,244,000)				(67,601,000)				(62,244,000)	(67,601,000)
Income before taxes	178,000	$ 251,000	$ 198,000	$ 133,000	9,000	$ 68,000	$ (109,000)	$ (128,000)	760,000	(159,000)
Operating income	205,000	268,000	225,000	66,000	173,000	158,000	9,000	(94,000)	764,000	248,000
Net income (loss)	4,775,000	$ 251,000	$ 198,000	$ 133,000	$ 9,000	$ 68,000	$ (109,000)	$ (128,000)	5,357,000	$ (159,000)
Line of Credit Facility [Line Items]
Amount of unused availability under the line	2,540,000								2,540,000
Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum availability	6,000,000								6,000,000
Amount of unused availability under the line	1,100,000								1,100,000
Accounts receivables
Line of Credit Facility [Line Items]
Maximum availability	$ 3,000,000								$ 3,000,000
Interest rate (percent)	4.00%				5.20%				4.00%	5.20%
Unbilled receivables
Line of Credit Facility [Line Items]
Maximum availability	$ 1,000,000								$ 1,000,000
Interest rate (percent)	4.00%				7.20%				4.00%	7.20%
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Amount of unused availability under the line	$ 1,400,000								$ 1,400,000

Significant Accounting Policies - Goodwill And Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2013
Goodwill [Line Items]
Deferred Tax Assets, Valuation Allowance	$ 11,100	$ 16,037
Valuation allowance against deferred tax assets (percent)			100.00%
Maximum
Goodwill [Line Items]
Charge to be expensed, if an impairment of all the goodwill became necessary	$ 8,600

Stock-based Compensation, Equity Grants, and Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration term of options	10 years	10 years
Risk free interest rate (percent)	2.55%	0.69%
Expected volatility rate (percent)	65.80%	70.20%
Fair value per option (in dollars per share)	$ 0.76	$ 0.22
Weighted average exercise price of vested and exercisable shares (dollars per share)	$ 1.41	$ 1.61
Aggregate intrinsic value of vested and exercisable shares	$ 570	$ 49
Weighted average contractual term	8 years	7 years 10 months 24 days
Compensation expense recognition period	2 years 9 months 18 days
Compensation expense weighted average life	1 year 2 months 12 days
2006 Long Term Incentive Plan \| Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	0.9
Expiration term of options	10 years

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 472	$ 206
Total unrecognized expense	471	242
DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	346	92
Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	125	150
Selling, General and Administrative Expenses \| DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	363	140
Selling, General and Administrative Expenses \| Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	109	54
Selling, General and Administrative Expenses \| Consultants
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 0	$ 12

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Number of Shares
Outstanding at beginning of period (in shares)	1,613	1,363
Granted (in shares)	830	250
Cancelled (in shares)	(63)
Outstanding at end of period (in shares)	2,380	1,613	1,363
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.15	$ 1.19
Granted (in dollars per share)	1.52	0.95
Cancelled (in dollars per share)	1.40
Outstanding at end of period (in dollars per share)	$ 1.40	$ 1.15	$ 1.19
Share Based Compensation Arrangement by Share Based Payment, Award, Options Weighted Average Remaining Contractual Term [Abstract]
Outstanding	7 years 9 months 18 days	7 years 10 months 24 days	8 years 7 months 6 days
Share Based Compensation Arrangement by Share Based Payment, Award, Options Aggregate Intrinsic Value [Abstract]
Outstanding at the beginning of period (in dollars)	$ 388	$ 140
Outstanding at the end of period (in dollars)	$ 1,589	$ 388	$ 140

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Vested and exercisable	896	413
Unvested	1,484	1,200
Option outstanding	2,380	1,613	1,363

Fair Value of Financial Instruments - Liabilities measured at fair value on a recurring basis (Details) - Level 3 - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Liability	$ 0	$ 0
Recurring
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Derivative financial instruments	$ 0	$ 160

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Numerator [Abstract]
Net income (loss)	$ 4,775	$ 251	$ 198	$ 133	$ 9	$ 68	$ (109)	$ (128)	$ 5,357	$ (159)
Denominator [Abstract]
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares)									9,570	9,310
Effect of dilutive securities:
Stock options and restricted stock (shares)									269
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares)									9,839	9,310
Net income (loss) per share - basic (dollars per share)	$ 0.50	$ 0.03	$ 0.02	$ 0.01	$ 0.000000	$ 0.01	$ (0.01)	$ (0.01)	$ 0.56	$ (0.02)
Net income (loss) per share - diluted (dollars per share)	$ 0.48	$ 0.03	$ 0.02	$ 0.01	$ 0.000000	$ 0.01	$ (0.01)	$ (0.01)	$ 0.54	$ (0.02)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

Commitment and Contingencies (Details) - USD ($)	12 Months Ended
Commitment and Contingencies (Details) - USD ($)	Sep. 30, 2014	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accrued workers compensation expense	$ 767,000	$ 563,000
Minimum \| DVA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated additional indirect costs and fees associated with contract modification pending final approval	400,000
Maximum \| DVA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated additional indirect costs and fees associated with contract modification pending final approval	$ 600,000

Commitment and Contingencies - Contractual Obligations (Details) $ in Thousands	Sep. 30, 2014 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loan Payable, Less than 1 Year	$ 0
Loan Payable, 1-3 Years	0
Loan Payable, 4-5 Years	0
Total	0
Operating Leases, Less than 1 Year	143
Operating Leases, 1-3 Years	160
Operating Leases, 4-5 Years	0
Total	303
Less than 1 Year	143
Total Obligations, 1-3 Years	160
Total Obligations, 4-5 Years	0
Total	$ 303

Equity and Convertible Debentures Financing (Details)			1 Months Ended	9 Months Ended	12 Months Ended
Equity and Convertible Debentures Financing (Details)	Oct. 28, 2013 USD ($)	Jun. 01, 2011 USD ($) shares	Oct. 31, 2013 USD ($) shares	Jun. 30, 2014 USD ($) $ / shares	Sep. 30, 2014 USD ($) $ / shares
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Price per debt (dollars per share) \| $ / shares					$ 1.25
Accrued liability with respect to the warrants					$ 114,000
Convertible debentures
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Carrying Value					$ 160,000
Risk free interest rate (percent)					1.39%
Contractual term					27 months
Expected volatility (percent)					70.00%
Fair value per warrants per share or per $1.25 of debt (dollars per share) \| $ / shares					$ 0.43
Repayments of Long-term Debt	$ 140,000
Warrant
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Fair value per warrants per share or per $1.25 of debt (dollars per share) \| $ / shares					$ 0.75
Debenture Purchase Agreement
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Gain (Loss) on Conversion of Convertible Instruments			$ 119,000
Income (expense) recorded related to change in the fair value of financial instruments				$ 20,000
Debenture Purchase Agreement \| Warrant
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Warrants issued to Debenture Purchasers (in shares) \| shares		53,846
Debenture Purchase Agreement \| Convertible debentures
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Aggregate principal amount of notes issued		$ 350,000
Exercise price of warrants (dollars per share) \| $ / shares				$ 1.25
Debenture Purchase Agreement \| Common Stock \| Convertible debentures
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Shares of common stock under conversion feature \| shares			168,000
Debenture Purchase Agreement \| Warrant
EQUITY AND CONVERTIBLE DEBENTURES FINANCING
Warrants issued to Debenture Purchasers (in shares) \| shares			53,846
Exercise price of warrants (dollars per share) \| $ / shares				$ 0.96
Contractual term					5 years
Principal amount			$ 210,000
Accrued liability with respect to the warrants			$ 61,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Income Tax Examination [Line Items]
Income Tax Expense (Benefit)	$ 4,597	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ (4,597)	$ 0
Unutilized tax credits	1,100								1,100
U.S.
Income Tax Examination [Line Items]
Net operating losses	40,800								40,800
State
Income Tax Examination [Line Items]
Net operating losses	$ 29,200								$ 29,200

Income Taxes (Details 1) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Current deferred income tax asset:
Net operating loss carryforwards and tax credits	$ 98	$ 0
Accrued liabilities	122	0
Valuation allowance	(136)	0
Net current deferred tax asset	84	0
Deferred income tax asset (liability):
Prepaid workers' compensation	273	225
Net operating loss carry forwards and tax credits	16,556	16,944
Deferred rent	8	9
Stock based compensation	646	500
Accrued liabilities	336	431
Fixed and intangible assets	(2,176)	(1,989)
Other items, net	(129)	(83)
Valuation allowance	(11,001)	(16,037)
Net deferred tax asset	$ 4,513	$ 0

Income Taxes (Details 2) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Current expense (benefit)									$ 7	$ 0
Deferred expense (benefit)									(4,604)	0
Total expense (benefit)	$ 4,597	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ (4,597)	$ 0

Income Taxes (Details 3) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Federal statutory rate									$ 258	$ (54)
State taxes, net									46	0
Other permanent items									6	3
Tax credits									(7)
Change in valuation allowance									(4,900)	51
Total expense (benefit)	$ 4,597	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ (4,597)	$ 0

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2014	Sep. 30, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 15,579	$ 15,692	$ 14,745	$ 14,477	$ 14,045	$ 13,460	$ 13,007	$ 12,994	$ 60,493	$ 53,506
Gross Profit	2,340	2,308	2,199	2,112	1,964	1,975	1,771	1,788	8,959	7,499
Operating income	205	268	225	66	173	158	9	(94)	764	248
Income (loss) before income taxes	178	251	198	133	9	68	(109)	(128)	760	(159)
Income Tax Expense (Benefit)	(4,597)	0	0	0	0	0	0	0	4,597	0
Net income (loss)	$ 4,775	$ 251	$ 198	$ 133	$ 9	$ 68	$ (109)	$ (128)	$ 5,357	$ (159)
Income (loss) before taxes per share - basic (dollars per share)	$ 0.02	$ 0.03	$ 0.02	$ 0.01	$ 0.000000	$ 0.01	$ (0.01)	$ (0.01)	$ 0.08	$ (0.02)
Income (loss) before taxes per share - diluted (dollars per share)	0.02	0.03	0.02	0.01	0.000000	0.01	(0.01)	(0.01)	0.08	(0.02)
Net income (loss) per share - basic (dollars per share)	0.50	0.03	0.02	0.01	0.000000	0.01	(0.01)	(0.01)	0.56	(0.02)
Net income (loss) per share - diluted (dollars per share)	$ 0.48	$ 0.03	$ 0.02	$ 0.01	$ 0.000000	$ 0.01	$ (0.01)	$ (0.01)	$ 0.54	$ (0.02)

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013
Compensation and Retirement Disclosure [Abstract]
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	25.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	4.00%
Defined Contribution Plan, Cost Recognized	$ 5	$ 93
Defined Contribution Plan Employers Matching, Contribution Vesting Period	4 years