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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Jul. 31, 2017
Document and Entity Information
Entity Registrant Name	DLH Holdings Corp.
Entity Central Index Key	0000785557
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		11,599,776

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Document Fiscal Year Focus			2017
Revenue	$ 29,256	$ 24,989	$ 85,272	$ 58,482
Direct expenses	22,871	19,533	66,805	46,885
Gross margin	6,385	5,456	18,467	11,597
General and administrative expenses	4,122	3,374	12,722	8,402
Depreciation and amortization	510	414	1,264	456
Income from operations	1,753	1,668	4,481	2,739
Other income (expense), net	(269)	(374)	(888)	(1,076)
Income before income taxes	1,484	1,294	3,593	1,663
Income tax expense (benefit), net	539	518	1,345	666
Net income	$ 945	$ 776	$ 2,248	$ 997
Net income per share, basic (in dollars per share)	$ 0.08	$ 0.08	$ 0.20	$ 0.10
Net income (loss) per share - diluted (in dollars per share)	$ 0.08	$ 0.07	$ 0.18	$ 0.09
Weighted average common shares outstanding
Basic (in shares)	11,299	10,154	11,250	9,812
Diluted (in shares)	12,445	11,311	12,417	10,855

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 4,601	$ 3,427	$ 2,820	$ 5,558
Accounts receivable, net	8,624	6,637
Other current assets	620	542
Total current assets	13,845	10,606
Equipment and improvements, net	1,163	644
Deferred taxes, net	10,411	11,415
Goodwill and other intangible assets, net	41,557	42,304
Other long-term assets	105	105
Total assets	67,081	65,074
CURRENT LIABILITIES
Loans Payable, Current	3,590	3,560
Derivative Liability, Current	253	204
Accrued payroll	3,445	3,616
Accounts payable, accrued expenses, and other current liabilities	8,826	7,136
Total current liabilities	16,114	14,516
LONG TERM LIABILITIES
Long-term Debt	16,215
Other long term liability		18,782
Total liabilities	32,329	33,298
Commitments
SHAREHOLDERS’ EQUITY
Preferred stock, $.10 par value; authorized 5,000 shares, none issued and outstanding	0	0
Common stock, $.001 par value; authorized 40,008 shares; issued and outstanding 11,590 at June 30, 2017 and 11,148 at September 30, 2016	12	11
Additional paid-in capital	82,624	81,897
Accumulated deficit	(47,884)	(50,132)
Total shareholders’ equity	34,752	31,776
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 67,081	$ 65,074

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.1	$ 0.1
Preferred stock, authorized shares	5,000	5,000
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	40,000
Common stock, issued shares	11,242	11,148
Common stock, outstanding shares	11,242	11,148

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities
Net income	$ 2,248	$ 997
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	1,264	507
Amortization of debt financing costs	194	0
Stock based compensation expense	613	384
Loss on retirement of equipment	0	3
Change in fair value of derivative financial instruments	(49)	0
Deferred taxes, net	1,004	453
Changes in operating assets and liabilities
Accounts receivable	(1,987)	(3,990)
Other current assets	(78)	(870)
Accounts payable, accrued payroll, accrued expenses and other current liabilities	1,519	5,833
Other long term assets/liabilities	145	63
Net cash provided by operating activities	4,971	3,380
Investing activities
Acquisition of Danya, net of cash acquired	(250)	(32,266)
Purchase of equipment and improvements	(785)	(462)
Net cash used in investing activities	(1,035)	(32,728)
Financing activities
Net (repayments) borrowings on senior debt	(2,813)	25,500
Net borrowing on subordinated debt	0	2,500
Deferred debt expense	0	(1,333)
Repayments of capital lease obligations	(62)	(70)
Proceeds from issuance of stock	113	13
Net cash used in (provided by) financing activities	(2,762)	26,610
Net change in cash and cash equivalents	1,174	(2,738)
Cash and cash equivalents at beginning of period	3,427	5,558
Cash and cash equivalents at end of period	4,601	2,820
Supplemental disclosures of cash flow information
Cash paid during the period for interest	662	105
Cash paid during the period for income taxes	390	105
Non-cash equity consideration for acquisition of Danya	$ 0	$ 2,500

Basis of Presentation	9 Months Ended
Basis of Presentation	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of DLH and its subsidiaries, all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by generally accepted accounting principles ("GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending September 30, 2017. Amounts for the periods June 30, 2017 and June 30, 2016 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, 2016 filed with the Securities and Exchange Commission on December 9, 2016.

Business Overview	9 Months Ended
Business Overview	Jun. 30, 2017
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 complimentary headquarters offices in Silver Spring, Maryland. We employ over 1,400 skilled employees working in more than 30 locations throughout the United States. On May 3, 2016, DLH acquired Danya International, LLC (“Danya”) which provides program management, information technology, consulting, training, and digital health promotion solutions to the federal government and other customers. We acquired Danya to expand our health IT capabilities, our presence in key targeted agencies, and raise our ability to compete and execute in more complex and challenging federal markets. This acquisition was in line with our strategic growth initiatives, and we intend to continue to consider other potential transactions to complement our organic growth in the future. 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 58% and 83% of revenue for the nine months ended June 30, 2017 and 2016, respectively. Additionally, HHS represents a major customer, comprising 32% of revenue for the nine months ended June 30, 2017. In addition, substantially all accounts receivable, including unbilled accounts receivable, are from agencies of the U.S. Government as of June 30, 2017 and September 30, 2016. We believe that the credit risk associated with our receivables is limited due to the creditworthiness of these customers. See Note 4, Supporting Financial Information-Accounts Receivable. As of June 30, 2017, awards from VA and HHS have anticipated periods of performance of up to three years. These agreements are subject to the Federal Acquisition Regulations. While there can be no assurance as to the actual amount of services that the Company will ultimately provide to VA and HHS under its current contracts, we believe that our strong working relationships and our effective service delivery support ongoing performance for the contract term. The Company's results of operations, cash flows and financial condition would be materially adversely affected in the event that we were unable to continue our relationship with VA or HHS.

New Accounting Pronouncements	9 Months Ended
New Accounting Pronouncements	Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued amended guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is now effective commencing with our 2018 fiscal year. The guidance allows either a full retrospective or modified retrospective transition method. The Company believes that the impact of adoption will be immaterial to the financial statements. In June 2014, the FASB issued guidance related to accounting for share-based payments for certain performance stock awards. In March 2016, the FASB issued updated guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The amendments in this update affect all entities that issue share-based payment awards to their employees. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this guidance and concluded that it will not significantly affect the Company. In September 2015, the FASB issued guidance regarding business combinations for which the accounting is incomplete by the end of the reporting period in which the combination occurs, and during the measurement period have an adjustment to provisional amounts recognized. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with earlier application permitted for financial statements that have not been issued. Refer to Note 4 for the impact of the adoption of this guidance. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all lease and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 10, the Company currently has approximately $4.3 million of lease obligations that would be evaluated as the implementation of this guidance becomes effective.

- 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=66092750

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=64853466&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=64853466&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=64853466&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=68064558&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=68064558&loc=d3e725-108305

+ Details

Supporting Financial Information

9 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Accounts receivable



		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Billed receivables		$	7,046	$	5,265
Unbilled receivables		1,578		1,372
Total accounts receivable		8,624		6,637
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	8,624	$	6,637

Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at fair value, which is net of an allowance for doubtful accounts. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at both June 30, 2017 and September 30, 2016.

Other current assets



		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Prepaid insurance and benefits		$	371	$	168
Total other prepaid expenses		249		374
Other current assets		$	620	$	542

Equipment and improvements, net



		(in thousands)
		June 30,			September 30,
	Ref	2017			2016
Furniture and equipment		$	243		$	638
Computer equipment		843			202
Computer software	(a)	1,239			309
Leasehold improvements		85			38
Total fixed assets		2,410			1,187
Less accumulated depreciation and amortization		(1,247		)	(543		)
Equipment and improvements, net	(b)	$	1,163		$	644

Ref (a): The Company is in the process of configuring a new Enterprise Resource Planning system. Capitalized costs include software licenses and implementation labor related to application development. Since the asset has not been placed in service, no depreciation related to the asset has been recognized. Prior to the asset being placed in service a useful life will be determined.

Ref (b): Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Depreciation expense for the periods ended June 30, 2017 and September 30, 2016, were $0.2 million for both periods.

Goodwill and Intangibles



					(in thousands)
	Ref	Goodwill			Customer Relationships (a)		Non Compete Agreement (a)			Trade Name (a)		Total
Gross Balance at September 30, 2016		$	34,745		$	7,247	$	1,370		$	—	$	43,362
Measurement period adjustment		(8,756		)	9,379		(890		)	517		250
Adjusted Gross Balance at June 30, 2017		$	25,989		$	16,626	$	480		$	517	$	43,612



				(in thousands)
	Ref	Goodwill		Customer Relationships (a)			Non Compete Agreement (a)			Trade Name (a)			Total
Accumulated amortization at September 30, 2016		$	—	$	(993	)	$	(65	)	$	—		$	(1,058	)
Prior period amortization adjustment		—		300			45			(21		)	324
Current period amortization		—		(1,246		)	(36		)	(39		)	(1,321		)
Total accumulated amortization		—		(1,939		)	(56		)	(60		)	(2,055		)
Net balance at June 30, 2017	(b)	$	25,989	$	14,687		$	424		$	457		$	41,557

Ref (a): Intangible assets subject to amortization.



Ref (b): Estimated amortization expense for future years:	(in thousands)
Year 1	$	1,762
Year 2	1,762
Year 3	1,762
Year 4	1,762
Year 5	1,762
Thereafter	6,758
	$	15,568

Ref (a): Intangibles acquired during the acquisition of Danya included customer relationships, a covenant not to compete, and a trade name. The intangibles are amortized on a straight-line basis over the estimated useful lives (10 years). Net amount of amortization expense for the quarter ended June 30, 2017 was $.4 million. The amortization for the nine months ended June 30, 2017 was $1.0 million.

Accounts payable, accrued expenses and other current liabilities



		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Accounts payable		$	5,001	$	4,324
Accrued benefits		1,323		1,197
Accrued bonus and incentive compensation		305		508
Accrued workers compensation insurance		1,248		981
Other accrued expenses		949		126
Accounts payable, accrued expenses, and other current liabilities		$	8,826	$	7,136

Debt obligations



		(in thousands)
		June 30,			September 30,
	Ref	2017				2016
Gross bank debt obligations	(a)	20,625				23,438
Less unamortized debt issuance costs		(1,028		)		(1,222		)
Net bank debt obligation		19,597				22,216
Less current portion of bank debt obligations		(3,590		)		(3,560		)
Long term portion of bank debt obligation	(b)	$	16,007			$	18,656

See Note 5 for terms of bank obligation

Ref (a): Maturity of the bank debt is as follows:
Year 1		$	3,750
Year 2		3,750
Year 3		3,750
Year 4		3,750
Year 5		5,625
Total net bank debt obligation		$	20,625

Ref (b): Amount included in long-term liabilities.

Other Income (Expense)



		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2017			2016			2017			2016
Interest expense, net	(a)	$	(219	)	$	(206	)	$	(662	)	$	(206	)
Amortization of deferred financing costs	(b)	(70		)	(50		)	(194		)	(50		)
Change in fair value of derivative financial instruments		3			—			(49		)
Other income (expense), net		17			(118		)	17			(820		)
Other income (expense), net		$	(269	)	$	(374	)	$	(888	)	$	(1,076	)

Ref (a): Interest expense on borrowing related to acquisition of Danya

Ref (b): Amortizations of expenses related to securing financing to acquire Danya

Credit Facilities

9 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Credit Facilities

A summary of our loan facilities and subordinated debt financing as of June 30, 2017 is as follows:



	($ in Millions)
	As of June 30, 2017
Lender	Arrangement	Loan Balance		Interest	Maturity Date
Fifth Third Bank	Secured term loan $25 million ceiling (a)	$	20.6	LIBOR* + 3.0%	May 1, 2021
Fifth Third Bank	Secured revolving line of credit $10 million ceiling (b)	$	—	LIBOR* + 3.0%	May 1, 2018
* LIBOR rate as of June 30, 2017 was 1.16%

(a) Represents the principal amounts payable on our Term Loan with Fifth Third Bank that partially funded our acquisition of Danya on May 3, 2016. The $25.0 million term loan from Fifth Third Bank was funded at closing and 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 beginning on June 1, 2016 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 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 3.5 to 1.0 for the period through September 30, 2016 to 2.5 to 1.0 for the period ending September 30, 2018.

In addition to monthly payments of the outstanding indebtedness, the loan agreement also requires prepayments of a percentage of excess cash flow, as defined in the loan agreement. Accordingly, a portion of our cash flow from operations may be dedicated to the repayment of our indebtedness.

(b) The secured revolving line of credit from Fifth Third Bank has a ceiling of up to $10.0 million, of which $5.0 million was drawn at closing to cover partial financing of the Danya purchase. 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 June 30, 2017, was $6.7 million. This capacity was comprised of $0.9 million in a stand-by letter of credit and unused borrowing capacity of $5.8 million.

The revolving line of credit is subject to loan covenants as described above in the Term Loan, and DLH is fully compliant with those covenants.

Management believes that: (a) cash and cash equivalents of approximately $4.6 million as of June 30, 2017; (b) the amount available under its line of credit that was in effect at June 30, 2017; and (c) planned operating cash flow should be sufficient to support the Company's operations for twelve months from the date of these financial statements.

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Jun. 30, 2017
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, measurement of loss development on workers’ compensation claims, and fair value of derivatives. 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 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. 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. Business Combinations In accordance with Accounting Standards Codifications 805, "Business Combinations" ("ASC 805") the Company records acquisitions under the purchase method of accounting, under which the acquisition purchase price is allocated to the assets acquired and the liabilities assumed based upon the respective fair values. The Company utilizes some estimates and in some instances, may retain the services of an independent third-party valuation firm to assist in determining the fair values of assets acquired, liabilities, assumed, and contingent considerations granted. Such estimates and valuation require the Company to make significant assumptions. These assumptions may include projections of future events and operating performance. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled revenues, accrued expenses, accrued earn outs payable, 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 We have used the acquisition method of accounting for the Danya transaction, whereby the assets acquired and liabilities assumed are recognized based upon their estimated fair values at the acquisition date. The fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition date. The Company believes the information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The Company finalized the fair values as of December 31, 2016. On the basis of the estimated assets acquired, the Company amortized $0.4 million and $1.0 million for the three and nine months ended June 30, 2017, respectively. 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, 2016, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $35 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, 2016. For the nine months ended June 30, 2017, 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 The Company acquired certain long lived intangibles assets as part of the acquisition of Danya. These assets are estimated at a fair value and amortized on a straight-line basis over their assessed useful lives. The assessed useful lives of the assets are 10 years. Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either June 30, 2017 or September 30, 2016. We report interest and penalties as a component of income tax expense. In the fiscal quarters ended June 30, 2017 and June 30, 2016, we recognized no interest and no penalties related to income taxes. Stock-based Equity Compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. Earnings (Loss) 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 (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. Reclassification We present financial statements consistent with a consolidation model for all entities. In connection with ensuring that presentation among the quarters was consistent, we reclassified an amount totaling $0.1 million in our income statement from general and administrative expense to direct expenses.

Stock-based Compensatin, Equity Grants, and Warrants

9 Months Ended

Jun. 30, 2017

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

Stock-based Compensation, Equity Grants, and Warrants

Stock-based compensation expense

Options issued under equity incentive plans were designated as either an incentive stock or a non-statutory stock option. No option was granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. As of June 30, 2017, there were 0.5 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)				(in thousands)
		Three Months Ended				Nine Months Ended
	Ref	June 30,				June 30,
		2017		2016		2017		2016
DLH employees		$	55	$	6	$	117	$	20
Non-employee directors	(a)	8		36		496		364
Total stock option expense		$	63	$	42	$	613	$	384

Ref (a): Equity grants of restricted stock, in accordance with DLH compensation policy for non-employee directors. The shares granted in the first quarters of fiscal years ending September 30, 2017 and 2016 vested immediately, and stock expense of approximately $456 thousand and $304 thousand, respectively were recognized accordingly.

Unrecognized stock-based compensation expense



		(in thousands)
		Nine Months Ended
		June 30,
	Ref	2017		2016
Unrecognized expense for DLH employees	(a)	$	398	$	24
Unrecognized expense for non-employee directors		—		36
Total unrecognized expense		$	398	$	60

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. The remaining term for the weighted average expense of these shares will be 2.5 years.

Stock option activity for the nine months ended June 30, 2017

The aggregate intrinsic value in the table below represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in the money options on those dates. This amount will change based on the fair market value of the Company’s stock.



					(in years)
					Weighted
				Weighted	Average	(in thousands)
		(in thousands)		Average	Remaining	Aggregate
		Number of		Exercise	Contractual	Intrinsic
	Ref	Shares		Price	Term	Value
Options outstanding, September 30, 2016		2,226		$1.43	5.8	$	7,581
Canceled		—
Granted	(a)	400		$5.94
Exercised		(397	)	$3.00
Options outstanding, June 30, 2017		2,229		$3.66	6.5	$	7,490

Ref (a): Options granted to DLH employees were valued using a Black Scholes calculation, under the following criteria:

•average yield rate of 2.46% was used

•contractual lives and expected lives were 10 years for all grants

•probability of exercise was based on reaching the market price

•monthly price volatility factor of 12% was used

•no dividend yield was contemplated

The resulting fair values ranged from $0.93 to $1.47, depending on the market measure of the stock price

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



		Number of Shares
		(in thousands)
		June 30,	September 30,
	Ref	2017	2016
Vested and exercisable		1,562	1,909
Unvested	(a)	667	317
Options outstanding		2,229	2,226

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

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Fair Value of Financial Instruments

9 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three level hierarchy. These levels are:

Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2 - Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3 - Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

Observable inputs are based on market data obtained from independent sources.

In May 2016 we issued warrants to purchase 53,619 shares of common stock. Using a binomial pricing model, we valued the warrants at $253 thousand and $204 thousand as of June 30, 2017 and September 30, 2016, respectively.

Assumptions used in valuing the warrants as of June 30, 2017 included:



Risk free interest rate	1.55	%
Contractual term	5 years
Dividend yield	—	%
Expected lives	3.8 years
Expected volatility	143	%
Fair value per warrant	$5.29

The Company recorded a benefit on the revaluation of the warrant liability of $3 thousand for the quarter ended June 30, 2017. For the nine months ended June 30, 2017 the company recorded a charge of $49 thousand related to the revaluation of the warrant liability. The benefit is recorded and classified in other income (expense) in the accompanying consolidated statements of operations.

The Company has issued warrants to purchase stock as described above. The liability is classified as a Level 3 expense for all periods.

Change in Level 3 liabilities for the nine months ending June 30, 2017:





	Beginning Balance		Realized/Unrealized		Purchases and		Ending Balance		Change in Realized (gains) losses for liabilities held at
	September 30, 2016		(Gains) Losses		Settlements		June 30, 2017		June 30, 2017
Warrant issued to acquire common stock	$	204	$	49	$	—	$	253	$	49

The Company has other financial instruments, including accounts receivable, accounts payable, loan payable, notes payable, and accrued expense. Due to the short term nature of these instruments, DLH estimates that the fair value of all financial instruments at June 30, 2017 and September 30, 2016 does not differ materially from the aggregate carrying values of these financial instruments recorded in the accompanying consolidated balance sheets.

- 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 Per Share

9 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings (Loss) Per Share

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



	(in thousands)
	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Numerator:
Net income	$	945	$	776	$	2,248	$	997
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares	11,299		10,154		11,250		9,812
Effect of dilutive securities:
Stock options and restricted stock	1,146		1,157		1,167		1,043
Denominator for diluted net income per share - weighted-average outstanding shares	12,445		11,311		12,417		10,855

Net income per share - basic	$	0.08	$	0.08	$	0.20	$	0.10
Net income per share - diluted	$	0.08	$	0.07	$	0.18	$	0.09

Commitment and Contingencies

9 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments



				Payments Due By Period
Obligations				Next 12		2-3		4-5		More than 5
(Amounts in thousands)	Ref	Total		Months		Years		Years		Years
Debt Obligations	(a)	$	20,625	$	3,750	$	7,500	$	9,375
Facility leases	(b)	$	3,909	$	914	$	1,718	$	648	$	629
Equipment operating leases	(c)	434		102		204		128		—
Total Obligations		$	24,968	$	4,766	$	9,422	$	10,151	$	629

Ref (a): Amounts due under term loan agreement described in Note 5.

Ref (b):Represents amounts committed on facility lease agreements as of June 30, 2017.

Ref (c): Represents remaining amounts committed as of June 30, 2017 on operating lease arrangements..

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 as of June 30, 2017 and September 30, 2016 was $1.25 million and $0.98 million, respectively.

Legal Proceedings

The Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows.

Related Party Disclosure	9 Months Ended
Related Party Disclosure	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions. The Company has determined that for the quarter ended June 30, 2017 there were no significant related party transactions that have occurred which require disclosure through the date that these financial statements were issued.

Subsequent Events	9 Months Ended
Subsequent Events	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events. Management has evaluated subsequent events through the date that the Company's financial statements were issued. Based on this evaluation, the Company has determined that no other subsequent events have occurred which require disclosure through the date that these financial statements were issued.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued amended guidance for revenue recognition. Subsequently, the FASB issued an amendment to defer for one year the effective date of the new guidance on revenue recognition, as well as issued additional clarifying amendments. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosure to help the users of the financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. The new guidance supersedes most current revenue recognition guidance, including industry-specific guidance, and is now effective commencing with our 2018 fiscal year. The guidance allows either a full retrospective or modified retrospective transition method. The Company believes that the impact of adoption will be immaterial to the financial statements. In June 2014, the FASB issued guidance related to accounting for share-based payments for certain performance stock awards. In March 2016, the FASB issued updated guidance intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements. The amendments in this update affect all entities that issue share-based payment awards to their employees. For public business entities, the amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this guidance and concluded that it will not significantly affect the Company. In September 2015, the FASB issued guidance regarding business combinations for which the accounting is incomplete by the end of the reporting period in which the combination occurs, and during the measurement period have an adjustment to provisional amounts recognized. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update, with earlier application permitted for financial statements that have not been issued. Refer to Note 4 for the impact of the adoption of this guidance. In February 2016, the FASB issued new accounting guidance related to leases. This update, effective for the Company beginning October 1, 2019, will replace existing guidance in GAAP and will require lessees to recognize lease assets and lease liabilities on the balance sheet for all lease and disclose key information about leasing arrangements. When implemented, lessees and lessors will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As shown in Note 10, the Company currently has approximately $4.3 million of lease obligations that would be evaluated as the implementation of this guidance becomes effective.
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, measurement of loss development on workers’ compensation claims, and fair value of derivatives. 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	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. 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. Business Combinations In accordance with Accounting Standards Codifications 805, "Business Combinations" ("ASC 805") the Company records acquisitions under the purchase method of accounting, under which the acquisition purchase price is allocated to the assets acquired and the liabilities assumed based upon the respective fair values. The Company utilizes some estimates and in some instances, may retain the services of an independent third-party valuation firm to assist in determining the fair values of assets acquired, liabilities, assumed, and contingent considerations granted. Such estimates and valuation require the Company to make significant assumptions. These assumptions may include projections of future events and operating performance. Fair Value of Financial Instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, unbilled revenues, accrued expenses, accrued earn outs payable, 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 We have used the acquisition method of accounting for the Danya transaction, whereby the assets acquired and liabilities assumed are recognized based upon their estimated fair values at the acquisition date. The fair values of assets acquired and liabilities assumed are based on the information that was available as of the acquisition date. The Company believes the information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. The Company finalized the fair values as of December 31, 2016. On the basis of the estimated assets acquired, the Company amortized $0.4 million and $1.0 million for the three and nine months ended June 30, 2017, respectively. 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, 2016, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $35 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, 2016. For the nine months ended June 30, 2017, 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.
Income Taxes	Income Taxes DLH accounts for income taxes in accordance with the liability method, whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reflected on the consolidated balance sheet when it is determined that it is more likely than not that the asset will be realized. This guidance also requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax asset will not be realized. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. We had no uncertain tax positions at either June 30, 2017 or September 30, 2016. We report interest and penalties as a component of income tax expense. In the fiscal quarters ended June 30, 2017 and June 30, 2016, we recognized no interest and no penalties related to income taxes.
Long-lived Assets	Long Lived Assets The Company acquired certain long lived intangibles assets as part of the acquisition of Danya. These assets are estimated at a fair value and amortized on a straight-line basis over their assessed useful lives. The assessed useful lives of the assets are 10 years.
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 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 (Loss) 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 (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. Reclassification We present financial statements consistent with a consolidation model for all entities. In connection with ensuring that presentation among the quarters was consistent, we reclassified an amount totaling $0.1 million in our income statement from general and administrative expense to direct expenses.

- 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

Supporting Financial Information (Tables)

9 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable

Accounts receivable



		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Billed receivables		$	7,046	$	5,265
Unbilled receivables		1,578		1,372
Total accounts receivable		8,624		6,637
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	8,624	$	6,637

Schedule of Other Current Assets

Other current assets



		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Prepaid insurance and benefits		$	371	$	168
Total other prepaid expenses		249		374
Other current assets		$	620	$	542

Equipment and Improvemnts, Net

Equipment and improvements, net



		(in thousands)
		June 30,			September 30,
	Ref	2017			2016
Furniture and equipment		$	243		$	638
Computer equipment		843			202
Computer software	(a)	1,239			309
Leasehold improvements		85			38
Total fixed assets		2,410			1,187
Less accumulated depreciation and amortization		(1,247		)	(543		)
Equipment and improvements, net	(b)	$	1,163		$	644

Schedule of Intangible Assets and Goodwill



					(in thousands)
	Ref	Goodwill			Customer Relationships (a)		Non Compete Agreement (a)			Trade Name (a)		Total
Gross Balance at September 30, 2016		$	34,745		$	7,247	$	1,370		$	—	$	43,362
Measurement period adjustment		(8,756		)	9,379		(890		)	517		250
Adjusted Gross Balance at June 30, 2017		$	25,989		$	16,626	$	480		$	517	$	43,612



				(in thousands)
	Ref	Goodwill		Customer Relationships (a)			Non Compete Agreement (a)			Trade Name (a)			Total
Accumulated amortization at September 30, 2016		$	—	$	(993	)	$	(65	)	$	—		$	(1,058	)
Prior period amortization adjustment		—		300			45			(21		)	324
Current period amortization		—		(1,246		)	(36		)	(39		)	(1,321		)
Total accumulated amortization		—		(1,939		)	(56		)	(60		)	(2,055		)
Net balance at June 30, 2017	(b)	$	25,989	$	14,687		$	424		$	457		$	41,557

Ref (a): Intangible assets subject to amortization.



Ref (b): Estimated amortization expense for future years:	(in thousands)
Year 1	$	1,762
Year 2	1,762
Year 3	1,762
Year 4	1,762
Year 5	1,762
Thereafter	6,758
	$	15,568

Goodwill and Intangibles



					(in thousands)
	Ref	Goodwill			Customer Relationships (a)		Non Compete Agreement (a)			Trade Name (a)		Total
Gross Balance at September 30, 2016		$	34,745		$	7,247	$	1,370		$	—	$	43,362
Measurement period adjustment		(8,756		)	9,379		(890		)	517		250
Adjusted Gross Balance at June 30, 2017		$	25,989		$	16,626	$	480		$	517	$	43,612

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense



Ref (b): Estimated amortization expense for future years:	(in thousands)
Year 1	$	1,762
Year 2	1,762
Year 3	1,762
Year 4	1,762
Year 5	1,762
Thereafter	6,758
	$	15,568

Accounts Payable, Accrued Expenses, and Other Current Liabilities

ccrued expenses and other current liabilities



		(in thousands)
		June 30,		September 30,
	Ref	2017		2016
Accounts payable		$	5,001	$	4,324
Accrued benefits		1,323		1,197
Accrued bonus and incentive compensation		305		508
Accrued workers compensation insurance		1,248		981
Other accrued expenses		949		126
Accounts payable, accrued expenses, and other current liabilities		$	8,826	$	7,136

Long-term Debt Instruments

Debt obligations



		(in thousands)
		June 30,			September 30,
	Ref	2017				2016
Gross bank debt obligations	(a)	20,625				23,438
Less unamortized debt issuance costs		(1,028		)		(1,222		)
Net bank debt obligation		19,597				22,216
Less current portion of bank debt obligations		(3,590		)		(3,560		)
Long term portion of bank debt obligation	(b)	$	16,007			$	18,656

See Note 5 for terms of bank obligation

Ref (a): Maturity of the bank debt is as follows:
Year 1		$	3,750
Year 2		3,750
Year 3		3,750
Year 4		3,750
Year 5		5,625
Total net bank debt obligation		$	20,625

Ref (b): Amount included in long-term liabilities.

Other Income (Expense)



		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2017			2016			2017			2016
Interest expense, net	(a)	$	(219	)	$	(206	)	$	(662	)	$	(206	)
Amortization of deferred financing costs	(b)	(70		)	(50		)	(194		)	(50		)
Change in fair value of derivative financial instruments		3			—			(49		)
Other income (expense), net		17			(118		)	17			(820		)
Other income (expense), net		$	(269	)	$	(374	)	$	(888	)	$	(1,076	)

Ref (a): Interest expense on borrowing related to acquisition of Danya

Ref (b): Amortizations of expenses related to securing financing to acquire Danya

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Credit Facilities (Tables)

9 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Credit Facilities

A summary of our loan facilities and subordinated debt financing as of June 30, 2017 is as follows:



	($ in Millions)
	As of June 30, 2017
Lender	Arrangement	Loan Balance		Interest	Maturity Date
Fifth Third Bank	Secured term loan $25 million ceiling (a)	$	20.6	LIBOR* + 3.0%	May 1, 2021
Fifth Third Bank	Secured revolving line of credit $10 million ceiling (b)	$	—	LIBOR* + 3.0%	May 1, 2018
* LIBOR rate as of June 30, 2017 was 1.16%

(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

The revolving line of credit is subject to loan covenants as described above in the Term Loan, and DLH is fully compliant with those covenants.

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

9 Months Ended

Jun. 30, 2017

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)				(in thousands)
		Three Months Ended				Nine Months Ended
	Ref	June 30,				June 30,
		2017		2016		2017		2016
DLH employees		$	55	$	6	$	117	$	20
Non-employee directors	(a)	8		36		496		364
Total stock option expense		$	63	$	42	$	613	$	384

Unrecognized stock-based compensation expense



		(in thousands)
		Nine Months Ended
		June 30,
	Ref	2017		2016
Unrecognized expense for DLH employees	(a)	$	398	$	24
Unrecognized expense for non-employee directors		—		36
Total unrecognized expense		$	398	$	60

Stock Option Activity



					(in years)
					Weighted
				Weighted	Average	(in thousands)
		(in thousands)		Average	Remaining	Aggregate
		Number of		Exercise	Contractual	Intrinsic
	Ref	Shares		Price	Term	Value
Options outstanding, September 30, 2016		2,226		$1.43	5.8	$	7,581
Canceled		—
Granted	(a)	400		$5.94
Exercised		(397	)	$3.00
Options outstanding, June 30, 2017		2,229		$3.66	6.5	$	7,490

Stock Option Shares Outstanding, Vested and Expected to Vest

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



		Number of Shares
		(in thousands)
		June 30,	September 30,
	Ref	2017	2016
Vested and exercisable		1,562	1,909
Unvested	(a)	667	317
Options outstanding		2,229	2,226

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

Fair Value of Financial Instruments (Tables)

9 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis

The Company has issued warrants to purchase stock as described above. The liability is classified as a Level 3 expense for all periods.

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Assumptions used in valuing the warrants as of June 30, 2017 included:



Risk free interest rate	1.55	%
Contractual term	5 years
Dividend yield	—	%
Expected lives	3.8 years
Expected volatility	143	%
Fair value per warrant	$5.29

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

Change in Level 3 liabilities for the nine months ending June 30, 2017:





	Beginning Balance		Realized/Unrealized		Purchases and		Ending Balance		Change in Realized (gains) losses for liabilities held at
	September 30, 2016		(Gains) Losses		Settlements		June 30, 2017		June 30, 2017
Warrant issued to acquire common stock	$	204	$	49	$	—	$	253	$	49

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Diluted earnings per share

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



	(in thousands)
	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Numerator:
Net income	$	945	$	776	$	2,248	$	997
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares	11,299		10,154		11,250		9,812
Effect of dilutive securities:
Stock options and restricted stock	1,146		1,157		1,167		1,043
Denominator for diluted net income per share - weighted-average outstanding shares	12,445		11,311		12,417		10,855

Net income per share - basic	$	0.08	$	0.08	$	0.20	$	0.10
Net income per share - diluted	$	0.08	$	0.07	$	0.18	$	0.09

Commitment and Contingencies (Tables)

9 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule



				Payments Due By Period
Obligations				Next 12		2-3		4-5		More than 5
(Amounts in thousands)	Ref	Total		Months		Years		Years		Years
Debt Obligations	(a)	$	20,625	$	3,750	$	7,500	$	9,375
Facility leases	(b)	$	3,909	$	914	$	1,718	$	648	$	629
Equipment operating leases	(c)	434		102		204		128		—
Total Obligations		$	24,968	$	4,766	$	9,422	$	10,151	$	629

Ref (a): Amounts due under term loan agreement described in Note 5.

Ref (b):Represents amounts committed on facility lease agreements as of June 30, 2017.

Ref (c): Represents remaining amounts committed as of June 30, 2017 on operating lease arrangements..

Business Overview (Details)	9 Months Ended
Business Overview (Details)	Jun. 30, 2017 employee location	Jun. 30, 2016
Concentration Risk [Line Items]
Number of employees (employee) \| employee	1,400
Minimum number of locations in which entity operates (location) \| location	30
US Government [Member] \| Revenue concentration \| Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	100.00%
Human Services and Solutions [Member] \| Revenue concentration \| Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	32.00%
Department of Veterans Affairs [Member] \| Revenue concentration \| Customer concentration
Concentration Risk [Line Items]
Concentration risk percentage (percent)	58.00%	83.00%

New Accounting Pronouncements - Narrative (Details) $ in Millions	Jun. 30, 2017 USD ($)
Accounting Changes and Error Corrections [Abstract]
Operating Leases, Future Minimum Payments Due	$ 4.3

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 8,624	$ 6,637
Less: Allowance for doubtful accounts	0	0
Accounts Receivable, Net	8,624	6,637
Billed Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	7,046	5,265
Unbilled Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total accounts receivable	$ 1,578	$ 1,372

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Document Fiscal Year Focus	2017
Prepaid insurance and benefits	$ 371	$ 168
Total other prepaid expenses	249	374
Other current assets	$ 620	$ 542

Supporting Financial Information - Equipment and Improvements, net (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Document Fiscal Year Focus	2017
Furniture and equipment	$ 243	$ 638
Computer equipment	843	202
Computer software	1,239	309
Leasehold improvements	85	38
Property, Plant and Equipment, Gross	2,410	1,187
Less accumulated depreciation and amortization	(1,247)	(543)
Equipment and improvements, net	1,163	644
Depreciation	$ 200	$ 200
Minimum \| Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum \| Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years

Supporting Financial Information - Goodwill and Intangible Asset Adjustment (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2017 USD ($)
Goodwill [Roll Forward]
Goodwill, Gross Period Start	$ 34,745
Goodwill, Measurement Period Adjustment	(8,756)
Goodwill, Gross Period End	25,989
Goodwill and Finite Lived Intangible Assets Total [Roll Forward]
Goodwill and Finite-Lived Intangible Assets, Gross Period End	43,362
Goodwill Purchase Accounting Adjustment and Finite-Lived Intangible Asset Measurement Period Adjustment	250
Goodwill and Finite-Lived Intangible Assets, Gross Period End	43,612
Customer Relationships [Member]
Indefinite-lived Intangible Assets [Roll Forward]
Finite-Lived Intangible Assets, Gross, Period Start	7,247
Finite-Lived Intangible Assets, Measurement Period Adjustment	9,379
Finite-Lived Intangible Assets, Gross, Period End	16,626
Noncompete Agreements [Member]
Indefinite-lived Intangible Assets [Roll Forward]
Finite-Lived Intangible Assets, Gross, Period Start	1,370
Finite-Lived Intangible Assets, Measurement Period Adjustment	(890)
Finite-Lived Intangible Assets, Gross, Period End	480
Trade Names [Member]
Indefinite-lived Intangible Assets [Roll Forward]
Finite-Lived Intangible Assets, Gross, Period Start	0
Finite-Lived Intangible Assets, Measurement Period Adjustment	517
Finite-Lived Intangible Assets, Gross, Period End	$ 517

Supporting Financial Information - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ (2,055)	$ (1,058)
Goodwill, Gross		0
Intangible Assets, Gross (Excluding Goodwill)		324
Amortization of Intangible Assets	(1,321)
Goodwill	25,989		$ 35,000
Finite-Lived Intangible Assets, Net	15,568
Goodwill and other intangible assets, net	41,557	42,304
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	(1,939)	(993)
Finite-Lived Intangible Assets, Gross		300
Amortization of Intangible Assets	(1,246)
Finite-Lived Intangible Assets, Net	14,687
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	(56)	(65)
Finite-Lived Intangible Assets, Gross		45
Amortization of Intangible Assets	(36)
Finite-Lived Intangible Assets, Net	424
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	(60)	0
Finite-Lived Intangible Assets, Gross		$ (21)
Amortization of Intangible Assets	(39)
Finite-Lived Intangible Assets, Net	$ 457

Supporting Financial Information - Intangible Assets Amortization Expense (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finite-Lived Intangible Asset, Useful Life		10 years
Year 1	$ 1,762	$ 1,762
Year 2	1,762	1,762
Year 3	1,762	1,762
Year 4	1,762	1,762
Year 5	1,762	1,762
Thereafter	6,758	6,758
Finite-Lived Intangible Assets, Net	15,568	15,568
Amortization of Intangible Assets	$ 400	$ 1,000

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Document Fiscal Year Focus	2017
Accounts payable	$ 5,001	$ 4,324
Accrued benefits	1,323	1,197
Accrued bonus and incentive compensation	305	508
Accrued workers compensation insurance	1,248	981
Other accrued expenses	949	126
Total accrued expenses and other current liabilities	$ 8,826	$ 7,136

Supporting Financial Information - Long-term Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Document Fiscal Year Focus	2017
Long-term Debt	$ 20,625
Long-term Debt, Excluding Current Maturities	16,215
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	3,750
Notes Payable to Banks [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	20,625	$ 23,438
Unamortized Debt Issuance Expense	1,028	1,222
Long-term Debt	19,597	22,216
Long-term Debt, Current Maturities	(3,590)	(3,560)
Long-term Debt, Excluding Current Maturities	16,007	$ 18,656
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	3,750
Long-term Debt, Maturities, Repayments of Principal in Year Two	3,750
Long-term Debt, Maturities, Repayments of Principal in Year Three	3,750
Long-term Debt, Maturities, Repayments of Principal in Year Four	3,750
Long-term Debt, Maturities, Repayments of Principal in Year Five	$ 5,625

Supporting Financial Information - Other Income (Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Document Fiscal Year Focus			2017
Interest expense, net	$ (219)	$ (206)	$ (662)		$ (206)
Amortization of deferred financing costs	(70)	(50)	(194)	$ 0	(50)
Increase (Decrease) in Derivative Assets and Liabilities	3	0	(49)
Other income (expense), net	17	(118)	17		$ (820)
Other income (expense) net	$ (269)	$ (374)	$ (888)	$ (1,076)

Credit Facilities (Details)	May 03, 2016 USD ($)	Jun. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Line of Credit Facility [Line Items]
Ratio of Debt to Earnings Before Interest, Taxes, Depreciations, and Amortization, Period Two	3.5
Ratio of Debt to Earnings Before Interest, Taxes, Depreciations, and Amortization, Period Three	2.5
Fixed Charge Coverage Ratio	1.35
Ratio of Debt to Earnings Before Interest, Taxes, Depreciations, and Amortization	2.99
Line of Credit Facility, Current Borrowing Capacity		$ 6,700,000
Cash and cash equivalents		4,601,000	$ 3,427,000	$ 2,820,000	$ 5,558,000
Term Loans
Line of Credit Facility [Line Items]
Maximum availability		25,000,000
Line of Credit
Line of Credit Facility [Line Items]
Maximum availability		10,000,000
Loan Balance		5,000,000
Debt Instrument, Unused Borrowing Capacity, Amount		5,800,000
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity		$ 900,000
Term Loan with Fifth Third Bank [Member] \| Term Loans
Line of Credit Facility [Line Items]
Maximum availability	$ 25,000,000
Line of Credit Facility, Periodic Payment, Principal	$ 312,500

Credit Facilities - Schedule of Credit Facilities (Details)		9 Months Ended
	May 03, 2016	Jun. 30, 2017 USD ($)
Line of Credit Facility [Line Items]
Ratio of Debt to Earnings Before Interest, Taxes, Depreciations, and Amortization	2.99
Loan Balance		$ 20,625,000
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Interest rate (percent)		1.00%
Term Loans
Line of Credit Facility [Line Items]
Maximum availability		$ 25,000,000
Term Loans \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on loan		3.00%
Line of Credit
Line of Credit Facility [Line Items]
Loan Balance		$ 0
Maximum availability		$ 10,000,000
Line of Credit \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on loan		3.00%

Significant Accounting Policies - Goodwill, Income Taxes, and Cash and Cash Equivalents (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization of acquired intangible assets			$ 1,321,000
Goodwill and other intangible assets, net	$ 25,989,000		25,989,000			$ 35,000,000
Cash, FDIC Insured Amount					$ 250,000
Direct expenses	22,871,000	$ 19,533,000	66,805,000	$ 46,885,000
General and administrative expenses	4,122,000	$ 3,374,000	12,722,000	$ 8,402,000
Danya
Acquired Indefinite-lived Intangible Assets [Line Items]
Amortization of acquired intangible assets	$ 400,000		$ 1,000,000
Property, Plant and Equipment, Useful Life			10 years
Reclassification Adjustment
Acquired Indefinite-lived Intangible Assets [Line Items]
Direct expenses			$ 100,000
General and administrative expenses			$ (100,000)

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Document Fiscal Year Focus			2017
Total compensation expense	$ 63	$ 42	$ 613	$ 384
Unrecognized stock-based compensation expense	398	60	$ 398	60
Weighted average share based compensation expense recognition period			2 years 6 months
DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized stock-based compensation expense	398	24	$ 398	24
Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized stock-based compensation expense	0	36	0	36
Selling, General and Administrative Expenses \| DLH Employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	55	6	117	20
Selling, General and Administrative Expenses \| Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense	$ 8	$ 36	496	364
Restricted Stock [Member] \| Non-employee Directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total compensation expense			$ 456	$ 304
Long Term Incentive Plan 2006 \| Employee Stock Option
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares available for grant					0.5
Expiration term			10 years

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Number of Shares
Outstanding at the beginning of the period (in shares)	2,226
Granted (in shares)	400
Cancelled (in shares)	(397)
Outstanding at the end of the period (in shares)	2,229	2,226
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 1.43
Granted (in dollars per share)	5.94
Exercised (in dollars per share)	3.00
Outstanding at the end of the period (in dollars per share)	$ 3.66	$ 1.43
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term	6 years 6 months	5 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 7,581
Outstanding at the end of the period (in dollars)	$ 7,490	$ 7,581
Employee Stock Option
Aggregate Intrinsic Value
Average yield	2.46%
Contractual and expected life of grants	10 years
Price volatility	12.00%
Maximum \| Employee Stock Option
Aggregate Intrinsic Value
Vair value share price (in dollars per share)	$ 0.93
Minimum \| Employee Stock Option
Aggregate Intrinsic Value
Vair value share price (in dollars per share)	$ 1.47

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - shares shares in Thousands	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Document Fiscal Year Focus	2017
Vested and exercisable	1,562	1,909
Unvested	667	317
Option outstanding	2,229	2,226

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Derivative Liability, Current	$ 253	$ 253	$ 204
Charge (benefit) from revaluation of warrant liability	$ (3)	$ 49
Wynnefiled Capital, Bank Term Loan
Debt Instrument [Line Items]
Class of Warrant or Right, Outstanding		53,619

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset, expected to be settled within one year or normal operating cycle, if longer. Includes assets not subject to a master netting arrangement and not elected to be offset.

+ References + Details

Fair Value of Financial Instruments - Fair Value Assumptions (Details) - $ / shares	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Assumptions, Risk Free Interest Rate	1.55%
Fair Value Assumptions, Expected Term	5 years
Fair Value Assumptions, Expected Dividend Rate	0.00%
Fair Value Assumptions, Expected Lives	3 years 9 months 18 days
Fair Value Assumptions, Weighted Average Volatility Rate	143.00%
Fair Value Assumptions, Exercise Price		$ 5.29

Fair Value of Financial Instruments (Change in Level 3) (Details) - Warrant [Member] - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	$ 253	$ 204
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	49
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases, (Sales), Issuances, (Settlements)	0
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)	$ 49

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Document Fiscal Year Focus			2017
Numerator [Abstract]
Net income	$ 945	$ 776	$ 2,248	$ 997
Denominator [Abstract]
Denominator for basic net income (loss) per share - weighted-average outstanding shares (shares)	11,299	10,154	11,250	9,812
Effect of dilutive securities:
Stock options and restricted stock (shares)	1,146	1,157	1,167	1,043
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (shares)	12,445	11,311	12,417	10,855
Net income (loss) per share - basic (dollars per share)	$ 0.08	$ 0.08	$ 0.20	$ 0.10
Net income (loss) per share - diluted (in dollars per share)	$ 0.08	$ 0.07	$ 0.18	$ 0.09

Commitment and Contingencies (Details) $ in Thousands	Jun. 30, 2017 USD ($)
Operating Leased Assets [Line Items]
Loan Balance	$ 20,625
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months	3,750
Long-term Debt, Maturing in Years Two and Three	7,500
Long-term Debt, Maturing in Years Four and Five	9,375
Operating Leases, Future Minimum Payments Due	4,300
Contractual Obligation	24,968
Contractual Obligation, Less than 1 Year	4,766
Contractual Obligation, 1-3 Years	9,422
Contractual Obligation, 4-5 years	10,151
Contractual Obligation, after 5 years	629
Facility Leases [Member]
Operating Leased Assets [Line Items]
Operating Leases, Future Minimum Payments Due	3,909
Operating Leases, Less than 1 Year	914
Operating Leases, 1-3 Years	1,718
Operating Leases, 4-5 years	648
Operating Leases, after 5 years	629
Equipment Leases [Member]
Operating Leased Assets [Line Items]
Operating Leases, Future Minimum Payments Due	434
Operating Leases, Less than 1 Year	102
Operating Leases, 1-3 Years	204
Operating Leases, 4-5 years	$ 128

Commitment and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Accrued workers compensation insurance	$ 1,248	$ 981

Related Party Disclosure (Details)	9 Months Ended
Related Party Disclosure (Details)	Jun. 30, 2017 shares
Wynnefiled Capital, Bank Term Loan
Related Party Transaction [Line Items]
Class of Warrant or Right, Outstanding	53,619