0001628280-20-011819 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
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, 2020
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		12,354,406
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenue	$ 51,459	$ 38,700	$ 158,495	$ 106,208
Contract costs	39,615	30,038	123,895	82,744
General and administrative costs	6,323	4,811	18,497	13,462
Acquisition costs	0	1,247	0	1,391
Depreciation and amortization	1,721	914	5,340	2,037
Operating Costs and Expenses	47,659	37,010	147,732	99,634
Income from operations	3,800	1,690	10,763	6,574
Interest expense, net	813	562	2,659	1,284
Income before income taxes	2,987	1,128	8,104	5,290
Income tax expense	863	325	2,352	1,532
Net income	$ 2,124	$ 803	$ 5,752	$ 3,758
Net income per share - basic (in dollars per share)	$ 0.17	$ 0.07	$ 0.47	$ 0.31
Net income per share - diluted (in dollars per share)	$ 0.16	$ 0.06	$ 0.44	$ 0.29
Weighted average common stock outstanding
Basic (in shares)	12,354	12,036	12,246	12,011
Diluted (in shares)	13,228	13,077	13,050	13,048

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 658	$ 1,790
Accounts receivable	29,635	23,226
Other current assets	3,772	1,831
Total current assets	34,065	26,847
Equipment and improvements, net	3,769	5,343
Operating leases right-of-use assets	22,276
Deferred taxes, net	358	2,345
Goodwill	52,758	52,758
Intangible assets, net	37,594	41,208
Other long-term assets	620	757
Total assets	151,440	129,258
CURRENT LIABILITIES
Operating lease liabilities - current	1,768
Accrued payroll	9,488	8,852
Accounts payable, accrued expenses, and other current liabilities	24,253	20,633
Total current liabilities	35,509	29,485
Debt obligations - long term, net of deferred financing costs	42,542	53,629
Operating lease liabilities - long-term	21,686
Other long-term liabilities	0	573
Total long-term liabilities	64,228	54,202
Total liabilities	99,737	83,687
SHAREHOLDERS’ EQUITY
Common stock, $0.001 par value; authorized 40,000 shares; issued and outstanding 12,354 and 12,036 at June 30, 2020 and September 30, 2019, respectively	12	12
Additional paid-in capital	85,496	85,114
Accumulated deficit	(33,805)	(39,555)
Total shareholders’ equity	51,703	45,571
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 151,440	$ 129,258

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Sep. 30, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	40,000,000	40,000,000
Common stock, issued (in shares)	12,354,000	12,036,000
Common stock, outstanding (in shares)	12,354,000	12,036,000

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities
Net income	$ 5,752	$ 3,758
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,340	2,037
Amortization of deferred financing costs	551	799
Stock based compensation expense	566	591
Deferred taxes, net	1,987	1,253
Non-cash gain from lease modification	(121)	0
Changes in operating assets and liabilities
Accounts receivable	(6,409)	(925)
Other current assets	(1,941)	(376)
Accrued payroll	636	(68)
Accounts payable, accrued expenses, and other current liabilities	3,620	4,107
Other long-term assets/liabilities	726	(23)
Net cash provided by operating activities	10,707	11,153
Investing activities
Business acquisition, net of cash acquired	0	(66,520)
Purchase of equipment and improvements	(152)	(29)
Net cash used in investing activities	(152)	(66,549)
Financing activities
Borrowing on senior debt	0	70,000
Repayments of senior debt	(11,500)	(11,646)
Payment of debt financing costs	(3)	(3,347)
Repurchase of common stock	(211)	0
Proceeds from issuance of common stock upon exercise of options	27	39
Net cash (used in) provided by financing activities	(11,687)	55,046
Net change in cash and cash equivalents	(1,132)	(350)
Cash and cash equivalents at beginning of period	1,790	6,355
Cash and cash equivalents at end of period	658	6,005
Supplemental disclosures of cash flow information
Cash paid during the period for interest	2,207	645
Cash paid during the period for income taxes	$ 432	$ 675

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative-effect adjustment for adoption of ASC 842	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Deficit Cumulative-effect adjustment for adoption of ASC 842
Beginning Balance (in shares) at Sep. 30, 2018			11,899,000	0
Beginning Balance at Sep. 30, 2018	$ 39,418		$ 12	$ 0	$ 84,285	$ (44,879)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Expense related to director restricted stock unit (in shares)			102,000
Expense related to director restricted stock unit	395				395
Expense related to employee stock options	196				196
Exercise of stock options (in shares)			35,000
Exercise of stock options	39				39
Net income	3,758					803
Ending Balance (in shares) at Jun. 30, 2019			12,036,000	0
Ending Balance at Jun. 30, 2019	43,806		$ 12	$ 0	84,915	(41,121)
Beginning Balance (in shares) at Mar. 31, 2019			12,036,000	0
Beginning Balance at Mar. 31, 2019	42,804		$ 12	$ 0	84,716	(41,924)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Expense related to director restricted stock unit	199				199
Net income	803					3,758
Ending Balance (in shares) at Jun. 30, 2019			12,036,000	0
Ending Balance at Jun. 30, 2019	$ 43,806		$ 12	$ 0	84,915	(41,121)
Beginning Balance (in shares) at Sep. 30, 2019	12,036,000		12,036,000	0
Beginning Balance at Sep. 30, 2019	$ 45,571	$ (2)	$ 12	$ 0	85,114	(39,555)	$ (2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Expense related to director restricted stock unit (in shares)			90,000
Expense related to director restricted stock unit	260				260
Expense related to employee stock options	$ 306				306
Exercise of stock options (in shares)	345,000		345,000
Exercise of stock options	$ 27				27
Repurchases of common stock (in shares)				28,000
Repurchases of common stock	(113)			$ (113)
Cancellation of common stock (in shares)			(117,000)	(28,000)
Cancellation of common stock	(98)			$ 113	(211)
Net income	$ 5,752					5,752
Ending Balance (in shares) at Jun. 30, 2020	12,354,000		12,354,000	0
Ending Balance at Jun. 30, 2020	$ 51,703		$ 12	$ 0	85,496	(33,805)
Beginning Balance (in shares) at Mar. 31, 2020			12,354,000	0
Beginning Balance at Mar. 31, 2020	49,397		$ 12	$ 0	85,314	(35,929)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Expense related to director restricted stock unit	87				87
Expense related to employee stock options	95				95
Net income	$ 2,124					2,124
Ending Balance (in shares) at Jun. 30, 2020	12,354,000		12,354,000	0
Ending Balance at Jun. 30, 2020	$ 51,703		$ 12	$ 0	$ 85,496	$ (33,805)

Basis of Presentation	9 Months Ended
Basis of Presentation	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of DLH Holdings Corp. and its subsidiaries (together with its subsidiaries, "DLH" or the "Company" and also referred to as "we," "us" and "our"), all of which are wholly owned. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Certain figures presented for comparative purposes have been reclassified to conform to the presentation adopted on Form 10-K for the year ended September 30, 2019. The Company implemented this reclassification as it determined that including these indirect overhead costs within the category of “contract costs” rather than “general and administrative expenses” better reflects the relationship of these overhead costs to contract performance, as these costs are generally variable based on fluctuations in business volume. This reclassification does not result in any changes to the Company’s total operating costs and previously reported operating income, income before income taxes, or net income. In management's opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the period ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending September 30, 2020. Amounts as of and for the periods ended June 30, 2020 and June 30, 2019 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, 2019 filed with the Securities and Exchange Commission on December 11, 2019.

Business Overview	9 Months Ended
Business Overview	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Business Overview The Company is a full-service provider of technology-enabled health and human services, providing solutions to three market focus areas: Defense and Veterans' Health Solutions, Human Solutions and Services and Public Health and Life Sciences. We deliver domain-specific expertise, industry best-practices and innovations to customers across these markets leveraging seven core competencies: secure data analytics, clinical trials and laboratory services, case management, performance evaluation, system modernization, operational logistics and readiness, and strategic digital communications. The Company manages its operations from its principal executive offices in Atlanta, Georgia, and we have a complementary headquarters office in Silver Spring, Maryland. We employ over 2,000 skilled employees working in more than 30 locations throughout the United States and one location overseas. At present, the Company derives essentially all 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 two largest customers are the Department of Veteran Affairs ("VA") and the Department of Health and Human Services ("HHS"). The VA comprised approximately 47% and 65% of revenue for the nine months ended June 30, 2020 and 2019, respectively, and HHS comprised approximately 46% and 33% of revenue for the nine months ended June 30, 2020 and 2019, respectively.

New Accounting Pronouncements	9 Months Ended
New Accounting Pronouncements	Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In February 2016, the FASB issued an Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), to improve financial reporting about leasing transactions. This accounting standard requires organizations that lease assets, referred to as "Lessees", to recognize on the balance sheet right-of-use assets and lease liabilities. Per the ASU, we determine if a contract contains a lease by identifying an asset and determining if we have the right to control the use of the identified asset for a period of time in exchange for consideration. A contract conveys the right to control the use of an identified asset when the lessee has the right to direct the use of the identified asset and obtain substantially all economic benefits from its use throughout the period of its use. We also determine if a lease qualifies as an operating or finance lease. All Company leases at standard adoption were operating leases. The ASU also require lessees to identify and separate lease and non-lease components. The Company elected not to separate lease and non-lease components per the practical expedient provided in ASU 2018-11. Upon lease commencement, the lease liability and right-of-use asset are recorded on the balance sheet. The lease liability is measured as the present value of future minimum lease payments, including all probable renewals, to be made during the lease term. The right-of-use asset is measured as the present value of future minimum lease payments to be made during the lease term, including all probable renewals, plus lease payments made to the lessor before or at commencement and indirect costs paid less lease incentives received. DLH adopted this standard on October 1, 2019 and recognized initial right-of use assets and lease liabilities of $17.4 million and $18.0 million, respectively. At adoption, the Company elected several practical expediencies to facilitate the implementation of the new standard and did not recast comparative prior year information. As such we did not reassess and include initial direct costs in the measurement of right-of-use assets, capitalize leases with terms of 12 months or less, nor reassess lease classification of existing leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires companies to record an allowance for expected credit losses over the contractual term of certain financial assets, including short-term trade receivables and contract assets. Additionally, it expands disclosure requirements for credit quality of financial assets. ASU 2016-13 becomes effective for the Company in the first quarter of fiscal year 2021. We do not expect a material impact to our operating results, financial position or cash flows as a result of adopting this new standard. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies that an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new standard is effective for fiscal years beginning after December 15, 2019 for both interim and annual reporting periods. The Company adopted this standard in the first quarter of fiscal 2020 and adoption did not have an impact on the Company's consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Significant Accounting Policies	9 Months Ended
Significant Accounting Policies	Jun. 30, 2020
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, interest rate swaps, stock-based compensation, right of use assets and lease liabilities, valuation allowances established against accounts receivable and deferred tax assets, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs. Fair value of financial instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, contract assets, accrued expenses, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximated 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 The Company 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, 2019, we performed a goodwill impairment evaluation on the year-end carrying value of approximately $53 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, 2019. For the nine months ended June 30, 2020, the Company determined that no change in business conditions occurred which would have a material adverse effect on the valuation of goodwill. Our assessment incorporated effects of the COVID-19 pandemic, which is not expected to have a meaningful impact on our financial results. 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. Equipment and improvements Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred. Income taxes The Company 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, 2020 or September 30, 2019. We report interest and penalties as a component of income tax expense. In the three and nine months ended June 30, 2020 and June 30, 2019, we recognized no interest and no penalties related to income taxes. Stock-based equity compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial simulation option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock. Cash and cash equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit. Earnings per share Basic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method. Treasury Stock The Company periodically purchases its own common stock that is traded on public markets as part of announced stock repurchase programs. The repurchased common stock is classified as treasury stock on the consolidated balance sheets and held at cost. As of June 30, 2020, the Company did not hold any treasury stock. Interest Rate Swap The Company uses derivative financial instruments to manage interest rate risk associated with its variable rate debt. The Company's objective in using these interest rate derivatives is to manage its exposure to interest rate movements and reduce volatility of interest expense. The gains and losses due to changes in the fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the underlying debt. Offsetting changes in fair value of both the interest rate swaps and the hedged portion of the underlying debt both are recognized in interest expense in the Consolidated Statements of Operations. The Company does not hold or issue any derivative instrument for trading or speculative purposes.

Revenue Recognition

9 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

We account for a contract when both we and the customer approve and commit; our rights and those of the customer are identified, payment terms are identified; the contract has commercial substance; and collectability of consideration is probable. At contract inception, we identify the distinct goods or services promised in the contract, referred to as performance obligations. Then we determine the total transaction price for the contract; which is the total consideration which we can expect in exchange for the promised goods or services in the contract. The transaction price may include fixed or variable amounts. Due to our contracts being predominantly time and material, the Company does not have variable consideration. The transaction price is allocated to each distinct performance obligation using our best estimate of the standalone selling price for each service promised in the contract. The primary method used to estimate standalone selling price is the hourly billing rate for each labor category identified in the contract with the customer. Revenue is recognized as the performance obligation is satisfied.

We recognize revenue over time when there is a continuous transfer of control to our customer. For our U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. When control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. For services contracts, we satisfy our performance obligations as services are rendered. We use a cost-based input method to measure progress.

Contract costs include labor, material and allocable indirect expenses. For time-and-material contracts, we bill the customer per labor hour and per material, and revenue is recognized in the amount invoiced since the amount corresponds directly to the value of our performance to date. We consider control to transfer when we have a present right to payment. Essentially, all of our contracts satisfy their performance obligations over time. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications impact performance obligations when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue and profit cumulatively. Furthermore, a significant change in one or more estimates could affect the profitability of our contracts. We recognize adjustments in estimated profit on contracts in the period identified.

For time-and-materials contracts, revenue is recognized to the extent of billable rates times hours delivered plus materials and other reimbursable costs incurred. Revenue for cost-reimbursable contracts is recorded as reimbursable costs are incurred, including an estimated share of the applicable contractual fees earned. Contract costs are expensed as incurred. Estimated losses are recognized when identified.

Contract assets - Amounts are invoiced as work progresses in accordance with agreed-upon contractual terms. In part, revenue recognition occurs before we have the right to bill, resulting in contract assets. These contract assets are reported within receivables, net on our consolidated balance sheets and are invoiced in accordance with payment terms defined in each contract. Period end balances will vary from period to period due to agreed-upon contractual terms.

Contract liabilities - Amounts are a result of billings in excess of costs incurred.

The following table summarizes the contract balances recognized on the Company's consolidated balance sheets:


	(in thousands)
	June 30,		September 30,
	2020		2019

Contract assets	$	10,216	$	4,302
Contract liabilities	$	41	$	92

Disaggregation of revenue from contracts with customers

We disaggregate our revenue from contracts with customers by customer, contract type, as well as whether the Company acts as prime contractor or subcontractor. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following series of tables presents our revenue disaggregated by these categories:

Revenue by customer:


	(in thousands)						(in thousands)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019

Department of Veterans Affairs	$	24,783	$	23,056	$	74,402	$	68,563
Department of Health and Human Services	23,312		14,297		73,263		34,987
Other	3,364		1,347		10,830		2,658
Total revenue	$	51,459	$	38,700	$	158,495	$	106,208

Revenue by contract type:


	(in thousands)						(in thousands)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019

Time and materials	$	36,315	$	33,426	$	110,918	$	98,841
Cost reimbursable	13,841		4,545		43,887		5,791
Firm fixed price	1,303		729		3,690		1,576
Total revenue	$	51,459	$	38,700	$	158,495	$	106,208

Revenue by whether the Company acts as a prime contractor or a subcontractor:


	(in thousands)						(in thousands)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019

Prime contractor	$	47,649	$	36,882	$	147,464	$	103,947
Subcontractor	3,810		1,818		11,031		2,261
Total revenue	$	51,459	$	38,700	$	158,495	$	106,208

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Leases

9 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases

We have leases for facilities and office equipment. Our lease liabilities are recognized as the present value of the future minimum lease payments over the lease term. Our right-of-use assets are recognized as the present value of the future minimum lease payments over the lease term less unamortized lease incentives and the balance remaining in deferred rent liability under ASC 840 at September 30, 2019. Our lease payments consist of fixed and in-substance fixed amounts attributable to the use of the underlying asset over the lease term. Variable lease payments that do not depend on an index rate or are not in-substance fixed payments are excluded in the measurement of right-of-use assets and lease liabilities and are expensed in the period incurred. The incremental borrowing rate on our credit facility was used in determining the present value of future minimum lease payments. The Company does not have any finance leases.

Upon the adoption of ASC 842, we recorded operating lease right-of-use assets of $17.4 million, current and long-term operating lease liabilities of $3.6 million and $14.4 million, and a $2 thousand cumulative adjustment to accumulated deficit.

The impact of adopting the standard on our consolidated balance sheet at October 1, 2019 is as follows:


(in thousands)	Ref	September 30, 2019		ASC 842 Adjustments		October 1, 2019
Long-term assets:
Operating leases right-of-use assets		$	—	$	17,398	$	17,398

Current liabilities:
Deferred rent liability - short-term	(a)	44		(44)		—
Operating leases liabilities - current		—		3,645		3,645

Long-term liabilities:
Deferred rent liability - long-term	(b)	276		(276)		—
Unamortized tenant improvement allowance	(c)	297		(297)		—
Operating leases liabilities - long-term		—		14,372		14,372

Shareholders' equity:
Accumulated deficit		(39,555)		(2)		(39,557)

Ref (a): The balance of short-term deferred rent liability was presented in our most recent annual 10K report within accounts payable, accrued expenses, and other accrued liabilities on our consolidated balance sheet at September 30, 2019.

Ref (b): The balance of long-term deferred rent liability was presented in our most recent annual 10K report within total long-term liabilities on our consolidated balance sheet at September 30, 2019.

Ref (c): The balance of unamortized tenant improvement allowance was presented in our most recent annual 10K report within total long-term liabilities on our consolidated balance sheet at September 30, 2019.

The Company executed a modification of a lease during the fiscal quarter ending December 31, 2019 and recognized adjustments to the right-of-use asset and lease liabilities in accordance with ASC 842. As a result of the modification, a gain of $0.1 million was recognized. The gain represents the difference between the change in values of the right-of-use-asset and lease liabilities, which were $7.3 million and $7.2 million, respectively. For the nine months ended June 30, 2020, the increase to right-of-use assets and lease liabilities was $24.7 million and $25.2 million, respectively. For more information, refer to Note 6, Supporting Financial Information.

As of June 30, 2020, operating leases for facilities and equipment have remaining lease terms of 0.8 to 10.8 years.

The following table summarizes lease balances in our consolidated balance sheet at June 30, 2020:


	(in thousands)
	June 30, 2020


Operating lease right-of-use assets	$	22,276

Operating lease liabilities, current	$	1,768
Operating lease liabilities - long-term	21,686
Total operating lease liabilities	$	23,454

The Company's lease costs are included within general and administrative costs and for the three and nine months ending June 30, 2020, total lease costs for our operating leases are as follows:


	(in thousands)
	Three Months Ended		Nine Months Ended
	June 30, 2020		June 30, 2020
Lease Costs:
Operating	$	834	$	3,350
Short-term	30		133
Variable	28		51
Total lease costs	$	892	$	3,534

The Company's future minimum lease payments as of June 30, 2020 are as follows:


For the Fiscal Year Ending September 30,	(in thousands)
2020 (Remaining)	$	758
2021	3,156
2022	3,244
2023	3,264
2024	3,215
Thereafter	17,776
Total future lease payments	31,413
Less: imputed interest	(7,959)
Present value of future minimum lease payments	23,454
Less: current portion of operating lease liabilities	(1,768)
Long-term operating lease liabilities	$	21,686

Other information related to our leases are as follows:


	June 30, 2020
Weighted-average remaining lease term	9.5 years
Weighted-average discount rate	6.03	%


	(in thousands)
	Three Months Ended		Nine Months Ended
	June 30, 2020		June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities	$	336	$	2,803
Lease liabilities arising from obtaining right-of-use-assets	$	—	$	245

Supporting Financial Information

9 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supporting Financial Information

Accounts receivable


		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Billed receivables		$	19,419	$	18,924
Contract assets		10,216		4,302
Total accounts receivable		29,635		23,226
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	29,635	$	23,226

Ref (a): Accounts receivable are non-interest bearing, unsecured and carried at net realizable value. We evaluate our receivables on a quarterly basis and determine whether an allowance is appropriate based on specific collection issues. No allowance for doubtful accounts was deemed necessary at either June 30, 2020 or September 30, 2019.

Other current assets


	(in thousands)
	June 30,		September 30,
	2020		2019
Prepaid insurance and benefits	$	833	$	495
Other receivables	1,407		301
Other prepaid expenses	1,532		1,035
Other current assets	$	3,772	$	1,831

Equipment and improvements, net


		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Furniture and equipment		$	1,262	$	1,262
Computer equipment		1,171		1,043
Computer software		4,008		3,985
Leasehold improvements		1,595		1,595
Total equipment and improvements		8,036		7,885
Less accumulated depreciation and amortization		(4,267)		(2,542)
Equipment and improvements, net	(a)	$	3,769	$	5,343

Ref (a): Depreciation expense was $0.5 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and $1.7 million and $0.5 million for the nine months ended June 30, 2020 and 2019, respectively.

Intangible assets


		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Intangible assets	(a)
Customer contracts and related customer relationships		$	45,600	$	45,600
Covenants not to compete		480		480
Trade name		2,109		2,109
Total intangible assets		48,189		48,189
Less accumulated amortization
Customer contracts and related customer relationships		(10,010)		(6,590)
Covenants not to compete		(200)		(164)
Trade name		(385)		(227)
Total accumulated amortization		(10,595)		(6,981)
Intangible assets, net		$	37,594	$	41,208

Ref (a): Intangible assets subject to amortization. The intangibles are amortized on a straight-line basis over their estimated useful lives of 10 years. The total amount of amortization expense was $1.2 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and $3.6 million and $1.5 million for the nine months ended June 30, 2020 and 2019, respectively.


Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2020	$	1,205
Fiscal 2021	4,819
Fiscal 2022	4,819
Fiscal 2023	4,819
Fiscal 2024	4,819
Thereafter	17,113

Total amortization expense	$	37,594

Accounts payable, accrued expenses and other current liabilities


	(in thousands)
	June 30,		September 30,
	2020		2019
Accounts payable	$	11,827	$	10,054
Accrued benefits	2,963		2,252
Accrued bonus and incentive compensation	1,819		1,951
Accrued workers' compensation insurance	4,888		4,007
Other accrued expenses	2,756		2,369
Accounts payable, accrued expenses, and other current liabilities	$	24,253	$	20,633

Debt obligations


	(in thousands)
	June 30,		September 30,
	2020		2019

Bank term loan	$	44,500	$	56,000
Less unamortized deferred financing cost	(1,958)		(2,371)
Net bank debt obligation	42,542		53,629
Less current portion of term loan debt obligations	—		—
Long-term portion of bank debt obligation	$	42,542	$	53,629

Interest expense


		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2020		2019		2020		2019
Interest expense	(a)	$	(635)	$	(297)	$	(2,229)	$	(485)
Amortization of deferred financing costs	(b)	(178)		(265)		(551)		(799)

Other income (expense), net	(c)	—		—		121		—

Interest expense, net		$	(813)	$	(562)	$	(2,659)	$	(1,284)

Ref (a): Interest expense on borrowing

Ref (b): Amortization of expenses related to term loan and revolving line of credit

Ref (c): Gain on lease modification due to a lease amendment

Credit Facilities

9 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Credit Facilities

A summary of this loan facility as of June 30, 2020, is as follows:

Arrangement

Loan Balance

Interest

Maturity Date

Secured term loan $70 million (a)

44.5

million

LIBOR* + 3.5%

June 7, 2024

Secured revolving line of credit $25 million ceiling (b)

—

million

LIBOR* + 3.5%

June 7, 2024

*LIBOR rate as of June 30, 2020 was 0.17%

(a) Represents the principal amounts payable on our secured term loan. The $70.0 million secured term loan was secured by liens on substantially all of the assets of the Company. The principal of the term loan is payable in quarterly installments with the remaining balance due on June 7, 2024. Required amortization is 7.5% in years 1 and 2 of the term loan, 10.0% in years 3 and 4, and 12.5% in year 5, with the balance due at maturity.

The Credit Agreement requires compliance with a number of financial covenants and contains restrictions on our ability to engage in certain transactions. Among other matters, we must comply with limitations on the following: granting liens; incurring other indebtedness; maintenance of assets; investments in other entities and extensions of credit; mergers and consolidations; and changes in nature of business. The loan agreement also requires us to comply with certain quarterly financial covenants including: (i) a minimum fixed charge coverage ratio of at least 1.25 to 1.00 commencing with the quarter ending September 30, 2019, and for all subsequent periods, and (ii) a Funded Indebtedness to Adjusted EBITDA ratio not exceeding the ratio of 4.25:1.0 to 3.25:1.0 through maturity. Adjusted EBITDA ratio is calculated by dividing the Company's total interest-bearing debt by net income adjusted to exclude (i) interest and other expenses, (ii) provision for or benefit from income taxes, if any, (iii) depreciation and amortization, and (iv) non-recurring charges, losses or expenses to include transaction and non-cash equity expense. The term loan has an interest rate spread range from 2.5% to 4.5% depending on the funded indebtedness to adjusted EBITDA ratio. We are in compliance with all loan covenants and restrictions.

We are required to pay quarterly amortization payments, which commenced in September 2019 and ends in March 2024. The quarterly payments are equal installments which started in September 2019 at $1,312,500. The amortization amount will increase every two years by $437,500; the first will occur September 2021 and the final increase will occur in September 2023. In addition to quarterly payments of the outstanding indebtedness, the loan agreement also requires annual payments of a percentage of excess cash flow, as defined in the loan agreement. The loan agreement states that an excess cash flow recapture payment must be made equal to (a) 75% of the excess cash flow for the immediately preceding fiscal year in which indebtedness to consolidated EBITDA ratio is greater than or equal to 2.50:1.0; (b) 50% of the excess cash flow for the immediately preceding fiscal year in which the funded indebtedness to consolidated EBITDA Ratio is less than 2.50:1.0 but greater than or equal to 1.5:1.0; or (c) 0% of the excess cash flow for the immediately preceding fiscal year in which the funded indebtedness to consolidated EBITDA Ratio is less than 1.5:1.0. In addition, the Company must make additional mandatory prepayment of amounts outstanding based on proceeds received from asset sales and sales of certain equity securities or other indebtedness. The Company has made voluntary principal prepayments that satisfy mandatory principal amortization until September 2023. For additional information regarding the schedule of future payment obligations, please refer to Note 11, Commitments and Contingencies.

On September 30, 2019, we executed a floating-to-fixed interest rate swap with First National Bank ("FNB") as counter party. The notional amount in the floating-to-fixed interest rate swap is $36 million that matures in 2024. The remaining outstanding balance of our term loan is subject to interest rate fluctuations. On the notional amount, the Company pays a base fixed rate of 1.61%, plus applicable credit spread. As a result, for the nine months ended June 30, 2020, interest expense has been increased by less than $0.1 million.

(b) The secured revolving line of credit has a ceiling of up to $25.0 million. Borrowing on the line of credit is secured by liens on substantially all of the assets of the Company. The Company accessed funds from the revolving credit facility during the quarter but has no outstanding balance at June 30, 2020.

The Company's total borrowing availability, based on eligible accounts receivables at June 30, 2020, was $19.3 million. As part of the revolving credit facility, the lenders agreed to a sublimit of $3 million for letters of credit for the account of the Company, subject to applicable procedures.

The revolving line of credit has a maturity date of June 7, 2024 and is subject to loan covenants as described above. DLH is fully compliant with those covenants.

Stock-based Compensation, Equity Grants, and Warrants

9 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based Compensation, Equity Grants, and Warrants

Stock-based compensation expense

Options issued under equity incentive plans are designated as either an incentive stock or a non-statutory stock option. No option is granted with a term of more than 10 years from the date of grant. Exercisability of option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued shares. As of June 30, 2020, there were 1.1 million shares available for grant.

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


		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
	Ref	June 30,						June 30,
		2020		2019		2020		2019
DLH employees		$	95	$	67	$	306	$	196
Non-employee directors	(a)	87		132		260		395
Total stock option expense		$	182	$	199	$	566	$	591

Ref (a): Equity grants of restricted stock units, in accordance with DLH compensation policy for non-employee directors were made in the first quarter of fiscal 2020 and in total 77,500 restricted stock units were issued and outstanding.

Unrecognized stock-based compensation expense


		(in thousands)
		June 30,
	Ref	2020
Unrecognized expense for DLH employees	(a)	$	1,007
Unrecognized expense for non-employee directors		87
Total unrecognized expense		$	1,094

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. On a weighted average basis, this expense is expected to be recognized within the next 3.82 years.

Stock option activity for the nine months ended June 30, 2020

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, 2019		2,134	$	4.36	5.9	$	4,815
Granted	(a)	250	$	4.17	—	—
Exercised		(345)	$	1.05	—	—
Cancelled		(160)	$	1.29	—	—
Options outstanding, June 30, 2020		1,879	$	4.60	6.5	$	7,280

Ref (a): Utilizing a volatility of 50% along with assumptions of a 10-year term and the aforementioned 10-day stock price threshold results in an indicated range of value of the Options granted during the quarter ended December 31, 2019, as follows using the Monte Carlo Method.


									Volatility
									50%
						Vesting		Expected
		Strike		Stock		Threshold		Term	Calculated
Grant Date	Ref	Price		Price		Price		(Years)	Fair Value
October 18, 2019	(a)	$	4.17	$	4.17	Service		10	$	2.54
October 18, 2019		$	4.17	$	4.17	$	8.00	10	$	2.56
October 18, 2019		$	4.17	$	4.17	$	10.00	10	$	2.53

October 18, 2019		$	4.17	$	4.17	$	12.00	10	$	2.51


Notes:
Results based on 100,000 simulations

Ref (a): Options granted vest after completion of a one year service period.

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


		(in thousands)

		June 30,	September 30,
	Ref	2020	2019
Vested and exercisable	(a)	1,072	1,300
Unvested	(b)	807	834
Options outstanding		1,879	2,134

Ref (a): Weighted average exercise price of vested and exercisable shares was $1.61 and $1.51 at June 30, 2020 and September 30, 2019, respectively. Aggregate intrinsic value was approximately $5.9 million and $3.9 million at June 30, 2020 and September 30, 2019, respectively. Weighted average contractual term remaining was 3.2 and 3.8 years at June 30, 2020 and September 30, 2019, respectively.

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

Earnings Per Share

9 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

The below details the calculation of basic and diluted earnings per share for the periods indicated:


	(In thousands, except per share amounts)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
Numerator:
Net income	$	2,124	$	803	$	5,752	$	3,758
Denominator:
Denominator for basic net income per share - weighted-average outstanding shares	12,354		12,036		12,246		12,011
Effect of dilutive securities:
Stock options and restricted stock	874		1,041		804		1,037
Denominator for diluted net income per share - weighted-average outstanding shares	13,228		13,077		13,050		13,048

Net income per share - basic	$	0.17	$	0.07	$	0.47	$	0.31
Net income per share - diluted	$	0.16	$	0.06	$	0.44	$	0.29

Commitment and Contingencies

9 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Contractual obligations as of June 30, 2020


			Payments Due by Period
			Next 12		2-3		4-5		More than 5
(Amounts in thousands)	Total		Months		Years		Years		Years
Debt obligations	$	44,500	$	—	$	—	44,500		$	—
Facility leases	31,313		3,100		6,415		6,329		15,469
Equipment operating leases	100		34		44		22		—
Total obligations	$	75,913	$	3,134	$	6,459	$	50,851	$	15,469

Worker's compensation

We accrue worker's compensation expense based on claims submitted, applying actuarial loss development factors to estimate the costs incurred but not yet recorded. Our accrued liability for claims development as of June 30, 2020 and September 30, 2019 was $4.9 million and $4.0 million, respectively.

Legal proceedings

As a commercial enterprise and employer, the Company is subject to various claims and legal actions in the ordinary course of business. These matters can include professional liability, employment-relations issues, workers’ compensation, tax, payroll and employee-related matters, other commercial disputes arising in the course of its business, and inquiries and investigations by governmental agencies regarding our employment practices or other matters. The Company is not aware of any pending or threatened litigation that it believes is reasonably likely to have a material adverse effect on its results of operations, financial position or cash flows.

Related Party Transactions	9 Months Ended
Related Party Transactions	Jun. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsThe Company has determined that for the three and nine months ended June 30, 2020 there were no significant related party transactions that 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, 2020
Accounting Policies [Abstract]
New accounting pronouncements	New Accounting Pronouncements In February 2016, the FASB issued an Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), to improve financial reporting about leasing transactions. This accounting standard requires organizations that lease assets, referred to as "Lessees", to recognize on the balance sheet right-of-use assets and lease liabilities. Per the ASU, we determine if a contract contains a lease by identifying an asset and determining if we have the right to control the use of the identified asset for a period of time in exchange for consideration. A contract conveys the right to control the use of an identified asset when the lessee has the right to direct the use of the identified asset and obtain substantially all economic benefits from its use throughout the period of its use. We also determine if a lease qualifies as an operating or finance lease. All Company leases at standard adoption were operating leases. The ASU also require lessees to identify and separate lease and non-lease components. The Company elected not to separate lease and non-lease components per the practical expedient provided in ASU 2018-11. Upon lease commencement, the lease liability and right-of-use asset are recorded on the balance sheet. The lease liability is measured as the present value of future minimum lease payments, including all probable renewals, to be made during the lease term. The right-of-use asset is measured as the present value of future minimum lease payments to be made during the lease term, including all probable renewals, plus lease payments made to the lessor before or at commencement and indirect costs paid less lease incentives received. DLH adopted this standard on October 1, 2019 and recognized initial right-of use assets and lease liabilities of $17.4 million and $18.0 million, respectively. At adoption, the Company elected several practical expediencies to facilitate the implementation of the new standard and did not recast comparative prior year information. As such we did not reassess and include initial direct costs in the measurement of right-of-use assets, capitalize leases with terms of 12 months or less, nor reassess lease classification of existing leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires companies to record an allowance for expected credit losses over the contractual term of certain financial assets, including short-term trade receivables and contract assets. Additionally, it expands disclosure requirements for credit quality of financial assets. ASU 2016-13 becomes effective for the Company in the first quarter of fiscal year 2021. We do not expect a material impact to our operating results, financial position or cash flows as a result of adopting this new standard. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which simplifies the accounting for goodwill impairments by eliminating step two from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. ASU 2017-04 also clarifies that an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new standard is effective for fiscal years beginning after December 15, 2019 for both interim and annual reporting periods. The Company adopted this standard in the first quarter of fiscal 2020 and adoption did not have an impact on the Company's consolidated financial statements.
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, interest rate swaps, stock-based compensation, right of use assets and lease liabilities, valuation allowances established against accounts receivable and deferred tax assets, and measurement of loss development on workers’ compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company’s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs.
Fair value of financial instruments	Fair value of financial instruments The carrying amounts of the Company's cash and cash equivalents, accounts receivable, contract assets, accrued expenses, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair values of the Company's debt instruments approximated 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 assetsThe Company 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.
Equipment and improvements	Equipment and improvements Equipment and improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful asset lives (3 to 7 years) and the shorter of the initial lease term or estimated useful life for leasehold improvements. Maintenance and repair costs are expensed as incurred.
Income taxes	Income taxes The Company 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, 2020 or September 30, 2019. We report interest and penalties as a component of income tax expense. In the three and nine months ended June 30, 2020 and June 30, 2019, we recognized no interest and no penalties related to income taxes.
Stock-based equity compensation	Stock-based equity compensation The Company uses the fair value-based method for stock-based equity compensation. Options issued are designated as either an incentive stock or a non-statutory stock option. No option may be granted with a term of more than 10 years from the date of grant. Option awards may depend on achievement of certain performance measures determined by the Compensation Committee of our Board. Shares issued upon option exercise are newly issued common shares. All awards to employees and non-employees are recorded at fair value on the date of the grant and expensed over the period of vesting. The Company uses a binomial simulation option pricing model to estimate the fair value of each stock option at the date of grant. Any consideration paid by the option holders to purchase shares is credited to capital stock.
Cash and cash equivalents	Cash and cash equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Deposits held with financial institutions may exceed the $250,000 limit.
Earnings per share	Earnings per shareBasic earnings per share is calculated by dividing income available to common shareholders by the weighted average number of common stock outstanding and restricted stock grants that vested or are likely to vest during the period. Diluted earnings per share is calculated by dividing income available to common shareholders by the weighted average number of basic common shares outstanding, adjusted to reflect potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method.
Treasury stock	Treasury StockThe Company periodically purchases its own common stock that is traded on public markets as part of announced stock repurchase programs. The repurchased common stock is classified as treasury stock on the consolidated balance sheets and held at cost.
Interest rate swap	Interest Rate Swap The Company uses derivative financial instruments to manage interest rate risk associated with its variable rate debt. The Company's objective in using these interest rate derivatives is to manage its exposure to interest rate movements and reduce volatility of interest expense. The gains and losses due to changes in the fair value of the interest rate swap agreements completely offset changes in the fair value of the hedged portion of the underlying debt. Offsetting changes in fair value of both the interest rate swaps and the hedged portion of the underlying debt both are recognized in interest expense in the Consolidated Statements of Operations. The Company does not hold or issue any derivative instrument for trading or speculative purposes.
Revenue recognition	Revenue Recognition We account for a contract when both we and the customer approve and commit; our rights and those of the customer are identified, payment terms are identified; the contract has commercial substance; and collectability of consideration is probable. At contract inception, we identify the distinct goods or services promised in the contract, referred to as performance obligations. Then we determine the total transaction price for the contract; which is the total consideration which we can expect in exchange for the promised goods or services in the contract. The transaction price may include fixed or variable amounts. Due to our contracts being predominantly time and material, the Company does not have variable consideration. The transaction price is allocated to each distinct performance obligation using our best estimate of the standalone selling price for each service promised in the contract. The primary method used to estimate standalone selling price is the hourly billing rate for each labor category identified in the contract with the customer. Revenue is recognized as the performance obligation is satisfied. We recognize revenue over time when there is a continuous transfer of control to our customer. For our U.S. government contracts, this continuous transfer of control to the customer is supported by clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. When control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. For services contracts, we satisfy our performance obligations as services are rendered. We use a cost-based input method to measure progress. Contract costs include labor, material and allocable indirect expenses. For time-and-material contracts, we bill the customer per labor hour and per material, and revenue is recognized in the amount invoiced since the amount corresponds directly to the value of our performance to date. We consider control to transfer when we have a present right to payment. Essentially, all of our contracts satisfy their performance obligations over time. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications impact performance obligations when the modification either creates new or changes the existing enforceable rights and obligations. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue and profit cumulatively. Furthermore, a significant change in one or more estimates could affect the profitability of our contracts. We recognize adjustments in estimated profit on contracts in the period identified. For time-and-materials contracts, revenue is recognized to the extent of billable rates times hours delivered plus materials and other reimbursable costs incurred. Revenue for cost-reimbursable contracts is recorded as reimbursable costs are incurred, including an estimated share of the applicable contractual fees earned. Contract costs are expensed as incurred. Estimated losses are recognized when identified. Contract assets - Amounts are invoiced as work progresses in accordance with agreed-upon contractual terms. In part, revenue recognition occurs before we have the right to bill, resulting in contract assets. These contract assets are reported within receivables, net on our consolidated balance sheets and are invoiced in accordance with payment terms defined in each contract. Period end balances will vary from period to period due to agreed-upon contractual terms. Contract liabilities - Amounts are a result of billings in excess of costs incurred. Disaggregation of revenue from contracts with customers We disaggregate our revenue from contracts with customers by customer, contract type, as well as whether the Company acts as prime contractor or subcontractor. We believe these categories best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Revenue Recognition (Tables)

9 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Contract Balances Recognized on the Company's Consolidated Balance Sheets

The following table summarizes the contract balances recognized on the Company's consolidated balance sheets:


	(in thousands)
	June 30,		September 30,
	2020		2019

Contract assets	$	10,216	$	4,302
Contract liabilities	$	41	$	92

Schedule of Disaggregation of Revenue From Contracts with Customers

The following series of tables presents our revenue disaggregated by these categories:

Revenue by customer:


	(in thousands)						(in thousands)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019

Department of Veterans Affairs	$	24,783	$	23,056	$	74,402	$	68,563
Department of Health and Human Services	23,312		14,297		73,263		34,987
Other	3,364		1,347		10,830		2,658
Total revenue	$	51,459	$	38,700	$	158,495	$	106,208

Revenue by contract type:


	(in thousands)						(in thousands)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019

Time and materials	$	36,315	$	33,426	$	110,918	$	98,841
Cost reimbursable	13,841		4,545		43,887		5,791
Firm fixed price	1,303		729		3,690		1,576
Total revenue	$	51,459	$	38,700	$	158,495	$	106,208

Revenue by whether the Company acts as a prime contractor or a subcontractor:


	(in thousands)						(in thousands)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019

Prime contractor	$	47,649	$	36,882	$	147,464	$	103,947
Subcontractor	3,810		1,818		11,031		2,261
Total revenue	$	51,459	$	38,700	$	158,495	$	106,208

Leases (Tables)

9 Months Ended

Jun. 30, 2020

Leases [Abstract]

Schedule of Impact of Adopting Standard on Consolidated Balance Sheet

The impact of adopting the standard on our consolidated balance sheet at October 1, 2019 is as follows:


(in thousands)	Ref	September 30, 2019		ASC 842 Adjustments		October 1, 2019
Long-term assets:
Operating leases right-of-use assets		$	—	$	17,398	$	17,398

Current liabilities:
Deferred rent liability - short-term	(a)	44		(44)		—
Operating leases liabilities - current		—		3,645		3,645

Long-term liabilities:
Deferred rent liability - long-term	(b)	276		(276)		—
Unamortized tenant improvement allowance	(c)	297		(297)		—
Operating leases liabilities - long-term		—		14,372		14,372

Shareholders' equity:
Accumulated deficit		(39,555)		(2)		(39,557)

Schedule of Summarized Lease Balances in Consolidated Balance Sheet

The following table summarizes lease balances in our consolidated balance sheet at June 30, 2020:


	(in thousands)
	June 30, 2020


Operating lease right-of-use assets	$	22,276

Operating lease liabilities, current	$	1,768
Operating lease liabilities - long-term	21,686
Total operating lease liabilities	$	23,454

Schedule of Lease Costs and Other Information Related to Leases

The Company's lease costs are included within general and administrative costs and for the three and nine months ending June 30, 2020, total lease costs for our operating leases are as follows:


	(in thousands)
	Three Months Ended		Nine Months Ended
	June 30, 2020		June 30, 2020
Lease Costs:
Operating	$	834	$	3,350
Short-term	30		133
Variable	28		51
Total lease costs	$	892	$	3,534

Other information related to our leases are as follows:


	June 30, 2020
Weighted-average remaining lease term	9.5 years
Weighted-average discount rate	6.03	%


	(in thousands)
	Three Months Ended		Nine Months Ended
	June 30, 2020		June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities	$	336	$	2,803
Lease liabilities arising from obtaining right-of-use-assets	$	—	$	245

Schedule of Company's Future Lease Payments

The Company's future minimum lease payments as of June 30, 2020 are as follows:


For the Fiscal Year Ending September 30,	(in thousands)
2020 (Remaining)	$	758
2021	3,156
2022	3,244
2023	3,264
2024	3,215
Thereafter	17,776
Total future lease payments	31,413
Less: imputed interest	(7,959)
Present value of future minimum lease payments	23,454
Less: current portion of operating lease liabilities	(1,768)
Long-term operating lease liabilities	$	21,686

Supporting Financial Information (Tables)

9 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable

Accounts receivable


		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Billed receivables		$	19,419	$	18,924
Contract assets		10,216		4,302
Total accounts receivable		29,635		23,226
Less: Allowance for doubtful accounts	(a)	—		—
Accounts receivable, net		$	29,635	$	23,226

Schedule of Other Current Assets

Other current assets


	(in thousands)
	June 30,		September 30,
	2020		2019
Prepaid insurance and benefits	$	833	$	495
Other receivables	1,407		301
Other prepaid expenses	1,532		1,035
Other current assets	$	3,772	$	1,831

Schedule of Equipment and Improvements, Net

Equipment and improvements, net


		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Furniture and equipment		$	1,262	$	1,262
Computer equipment		1,171		1,043
Computer software		4,008		3,985
Leasehold improvements		1,595		1,595
Total equipment and improvements		8,036		7,885
Less accumulated depreciation and amortization		(4,267)		(2,542)
Equipment and improvements, net	(a)	$	3,769	$	5,343

Schedule of Intangible Assets

Intangible assets


		(in thousands)
		June 30,		September 30,
	Ref	2020		2019
Intangible assets	(a)
Customer contracts and related customer relationships		$	45,600	$	45,600
Covenants not to compete		480		480
Trade name		2,109		2,109
Total intangible assets		48,189		48,189
Less accumulated amortization
Customer contracts and related customer relationships		(10,010)		(6,590)
Covenants not to compete		(200)		(164)
Trade name		(385)		(227)
Total accumulated amortization		(10,595)		(6,981)
Intangible assets, net		$	37,594	$	41,208

Schedule of Estimated Amortization of Intangible Assets


Estimated amortization expense for future years:	(in thousands)
Remaining Fiscal 2020	$	1,205
Fiscal 2021	4,819
Fiscal 2022	4,819
Fiscal 2023	4,819
Fiscal 2024	4,819
Thereafter	17,113

Total amortization expense	$	37,594

Schedule of Accounts Payable, Accrued Expenses, and Other Current Liabilities

Accounts payable, accrued expenses and other current liabilities


	(in thousands)
	June 30,		September 30,
	2020		2019
Accounts payable	$	11,827	$	10,054
Accrued benefits	2,963		2,252
Accrued bonus and incentive compensation	1,819		1,951
Accrued workers' compensation insurance	4,888		4,007
Other accrued expenses	2,756		2,369
Accounts payable, accrued expenses, and other current liabilities	$	24,253	$	20,633

Schedule of Debt Obligations

Debt obligations


	(in thousands)
	June 30,		September 30,
	2020		2019

Bank term loan	$	44,500	$	56,000
Less unamortized deferred financing cost	(1,958)		(2,371)
Net bank debt obligation	42,542		53,629
Less current portion of term loan debt obligations	—		—
Long-term portion of bank debt obligation	$	42,542	$	53,629

Schedule of Interest Expense

Interest expense


		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
		June 30,						June 30,
	Ref	2020		2019		2020		2019
Interest expense	(a)	$	(635)	$	(297)	$	(2,229)	$	(485)
Amortization of deferred financing costs	(b)	(178)		(265)		(551)		(799)

Other income (expense), net	(c)	—		—		121		—

Interest expense, net		$	(813)	$	(562)	$	(2,659)	$	(1,284)

Ref (a): Interest expense on borrowing

Ref (b): Amortization of expenses related to term loan and revolving line of credit

Ref (c): Gain on lease modification due to a lease amendment

- 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://fasb.org/us-gaap/role/ref/legacyRef
-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=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 45
-Paragraph 2
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Credit Facilities (Tables)

9 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of Loan Facility

A summary of this loan facility as of June 30, 2020, is as follows:

Arrangement

Loan Balance

Interest

Maturity Date

Secured term loan $70 million (a)

44.5

million

LIBOR* + 3.5%

June 7, 2024

Secured revolving line of credit $25 million ceiling (b)

—

million

LIBOR* + 3.5%

June 7, 2024

*LIBOR rate as of June 30, 2020 was 0.17%

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

9 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

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


		(in thousands)						(in thousands)
		Three Months Ended						Nine Months Ended
	Ref	June 30,						June 30,
		2020		2019		2020		2019
DLH employees		$	95	$	67	$	306	$	196
Non-employee directors	(a)	87		132		260		395
Total stock option expense		$	182	$	199	$	566	$	591

Unrecognized stock-based compensation expense


		(in thousands)
		June 30,
	Ref	2020
Unrecognized expense for DLH employees	(a)	$	1,007
Unrecognized expense for non-employee directors		87
Total unrecognized expense		$	1,094

Schedule of 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, 2019		2,134	$	4.36	5.9	$	4,815
Granted	(a)	250	$	4.17	—	—
Exercised		(345)	$	1.05	—	—
Cancelled		(160)	$	1.29	—	—
Options outstanding, June 30, 2020		1,879	$	4.60	6.5	$	7,280

Schedule of Fair Value Assumptions of Stock Options


									Volatility
									50%
						Vesting		Expected
		Strike		Stock		Threshold		Term	Calculated
Grant Date	Ref	Price		Price		Price		(Years)	Fair Value
October 18, 2019	(a)	$	4.17	$	4.17	Service		10	$	2.54
October 18, 2019		$	4.17	$	4.17	$	8.00	10	$	2.56
October 18, 2019		$	4.17	$	4.17	$	10.00	10	$	2.53

October 18, 2019		$	4.17	$	4.17	$	12.00	10	$	2.51


Notes:
Results based on 100,000 simulations

Ref (a): Options granted vest after completion of a one year service period.

Schedule of Option Shares Outstanding, Vested and Expected to Vest

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


		(in thousands)

		June 30,	September 30,
	Ref	2020	2019
Vested and exercisable	(a)	1,072	1,300
Unvested	(b)	807	834
Options outstanding		1,879	2,134

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

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Schedule of Diluted Earnings per Share

The below details the calculation of basic and diluted earnings per share for the periods indicated:


	(In thousands, except per share amounts)
	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
Numerator:
Net income	$	2,124	$	803	$	5,752	$	3,758
Denominator:
Denominator for basic net income per share - weighted-average outstanding shares	12,354		12,036		12,246		12,011
Effect of dilutive securities:
Stock options and restricted stock	874		1,041		804		1,037
Denominator for diluted net income per share - weighted-average outstanding shares	13,228		13,077		13,050		13,048

Net income per share - basic	$	0.17	$	0.07	$	0.47	$	0.31
Net income per share - diluted	$	0.16	$	0.06	$	0.44	$	0.29

Commitment and Contingencies (Tables)

9 Months Ended

Jun. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Contractual Obligations

Contractual obligations as of June 30, 2020


			Payments Due by Period
			Next 12		2-3		4-5		More than 5
(Amounts in thousands)	Total		Months		Years		Years		Years
Debt obligations	$	44,500	$	—	$	—	44,500		$	—
Facility leases	31,313		3,100		6,415		6,329		15,469
Equipment operating leases	100		34		44		22		—
Total obligations	$	75,913	$	3,134	$	6,459	$	50,851	$	15,469

Business Overview (Details)	9 Months Ended
Business Overview (Details)	Jun. 30, 2020 employee business_area market location	Jun. 30, 2019
Concentration Risk [Line Items]
Number of market focus areas \| business_area	3
Number of market leveraging core competencies \| market	7
Revenue from Contract with Customer \| Customer concentration \| VA
Concentration Risk [Line Items]
Concentration risk percentage	47.00%	65.00%
Revenue from Contract with Customer \| Customer concentration \| HHS
Concentration Risk [Line Items]
Concentration risk percentage	46.00%	33.00%
U.S.
Concentration Risk [Line Items]
Number of employees \| employee	2,000
Number of locations in which entity operates	30
Overseas
Concentration Risk [Line Items]
Number of locations in which entity operates	1

New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Oct. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets	$ 22,276
Operating lease liability	$ 23,454
ASC 842
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets		$ 17,400
Operating lease liability		$ 18,000

Significant Accounting Policies (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Acquired Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 52,758,000		$ 52,758,000		$ 52,758,000
Goodwill impairment					0
Uncertain tax positions	0		0		$ 0
Income tax interest expense	0	$ 0	0	$ 0
Income tax penalties expense	0	$ 0	0	$ 0
Cash, FDIC insured amount	$ 250,000		$ 250,000
Treasury stock (in shares)	0		0
Employee Stock Option
Acquired Indefinite-lived Intangible Assets [Line Items]
Number of awards authorized for issuance (in shares)	0		0
Expiration term of share-based compensation plan			10 years
Minimum
Acquired Indefinite-lived Intangible Assets [Line Items]
Estimated useful of long-lived assets			3 years
Maximum
Acquired Indefinite-lived Intangible Assets [Line Items]
Estimated useful of long-lived assets			7 years

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 10,216	$ 4,302
Contract liabilities	$ 41	$ 92

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total Revenue	$ 51,459	$ 38,700	$ 158,495	$ 106,208
Prime contractor
Disaggregation of Revenue [Line Items]
Total Revenue	47,649	36,882	147,464	103,947
Subcontractor
Disaggregation of Revenue [Line Items]
Total Revenue	3,810	1,818	11,031	2,261
Time and materials
Disaggregation of Revenue [Line Items]
Total Revenue	36,315	33,426	110,918	98,841
Cost reimbursable
Disaggregation of Revenue [Line Items]
Total Revenue	13,841	4,545	43,887	5,791
Firm fixed price
Disaggregation of Revenue [Line Items]
Total Revenue	1,303	729	3,690	1,576
Department of Veterans Affairs
Disaggregation of Revenue [Line Items]
Total Revenue	24,783	23,056	74,402	68,563
Department of Health and Human Services
Disaggregation of Revenue [Line Items]
Total Revenue	23,312	14,297	73,263	34,987
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 3,364	$ 1,347	$ 10,830	$ 2,658

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Oct. 01, 2019	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets		$ 22,276
Operating lease liabilities - current		1,768
Operating lease liabilities - long-term		21,686
Accumulated deficit		33,805			$ 39,555
Gain recognized on lease modification		121	$ 0
Operating lease liability		23,454
Increase to right-of-use assets		24,700
Increase to lease liabilities		$ 25,200
Facilities and Equipment \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining lease term		9 months 18 days
Facilities and Equipment \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining lease term		10 years 9 months 18 days
Lease Modification
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets		$ 7,300
Gain recognized on lease modification	$ 100
Operating lease liability		$ 7,200
Cumulative-effect adjustment for adoption of ASC 842
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets				$ 17,398
Operating lease liabilities - current				3,645
Operating lease liabilities - long-term				14,372
Accumulated deficit				2
ASC 842
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets				17,400
Operating lease liability				$ 18,000

Leases - Impact of Adoption of Standard in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Oct. 01, 2019	Jun. 30, 2020	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets		$ 22,276
Deferred rent liability - short-term			$ 44
Operating leases liabilities - current		1,768
Deferred rent liability - long-term			276
Unamortized tenant improvement allowance			297
Operating lease liabilities - long-term		21,686
Accumulated deficit		$ (33,805)	$ (39,555)
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201602Member
ASC 842 Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets	$ 17,398
Deferred rent liability - short-term	(44)
Operating leases liabilities - current	3,645
Deferred rent liability - long-term	(276)
Unamortized tenant improvement allowance	(297)
Operating lease liabilities - long-term	14,372
Accumulated deficit	(2)
October 1, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating leases right-of-use assets	17,398
Deferred rent liability - short-term	0
Operating leases liabilities - current	3,645
Deferred rent liability - long-term	0
Unamortized tenant improvement allowance	0
Operating lease liabilities - long-term	14,372
Accumulated deficit	$ (39,557)

Leases - Summary of Lease Balances in Consolidated Balance Sheets (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 22,276
Operating lease liabilities - current	1,768
Operating lease liabilities - long-term	21,686
Total operating lease liabilities	$ 23,454

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2020
Leases [Abstract]
Operating	$ 834	$ 3,350
Short-term	30	133
Variable	28	51
Total lease costs	$ 892	$ 3,534

Leases - Company's Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Leases [Abstract]
2020 (Remaining)	$ 758
2021	3,156
2022	3,244
2023	3,264
2024	3,215
Thereafter	17,776
Total future lease payments	31,413
Less: imputed interest	(7,959)
Total operating lease liabilities	23,454
Less: current portion of operating lease liabilities	(1,768)
Long-term operating lease liabilities	$ 21,686

Leases - Other Information Related to Leases (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)
Leases [Abstract]
Weighted-average remaining lease term	9 years 6 months	9 years 6 months
Weighted-average discount rate	6.03%	6.03%
Cash paid for amounts included in the measurement of lease liabilities	$ 336	$ 2,803
Lease liabilities arising from obtaining right-of-use-assets	$ 0	$ 245

Supporting Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Billed receivables	$ 19,419	$ 18,924
Contract assets	10,216	4,302
Total accounts receivable	29,635	23,226
Less: Allowance for doubtful accounts	0	0
Accounts receivable, net	$ 29,635	$ 23,226

Supporting Financial Information - Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid insurance and benefits	$ 833	$ 495
Other receivables	1,407	301
Other prepaid expenses	1,532	1,035
Other current assets	$ 3,772	$ 1,831

Supporting Financial Information - Equipment and Improvements, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Furniture and equipment	$ 1,262		$ 1,262		$ 1,262
Computer equipment	1,171		1,171		1,043
Computer software	4,008		4,008		3,985
Leasehold improvements	1,595		1,595		1,595
Total equipment and improvements	8,036		8,036		7,885
Less accumulated depreciation and amortization	(4,267)		(4,267)		(2,542)
Equipment and improvements, net	3,769		3,769		$ 5,343
Depreciation expense	$ 500	$ 300	$ 1,700	$ 500

Supporting Financial Information - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 48,189		$ 48,189		$ 48,189
Total accumulated amortization	(10,595)		(10,595)		(6,981)
Intangible assets, net	37,594		$ 37,594		41,208
Estimated useful live of intangible assets			10 years
Amortization expense of intangible assets	1,200	$ 600	$ 3,600	$ 1,500
Customer contracts and related customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	45,600		45,600		45,600
Total accumulated amortization	(10,010)		(10,010)		(6,590)
Covenants not to compete
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	480		480		480
Total accumulated amortization	(200)		(200)		(164)
Trade name
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	2,109		2,109		2,109
Total accumulated amortization	$ (385)		$ (385)		$ (227)

Supporting Financial Information - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remaining Fiscal 2020	$ 1,205
Fiscal 2021	4,819
Fiscal 2022	4,819
Fiscal 2023	4,819
Fiscal 2024	4,819
Thereafter	17,113
Intangible assets, net	$ 37,594	$ 41,208

Supporting Financial Information - Accounts Payable, Accrued Expense and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable	$ 11,827	$ 10,054
Accrued benefits	2,963	2,252
Accrued bonus and incentive compensation	1,819	1,951
Accrued workers' compensation insurance	4,888	4,007
Other accrued expenses	2,756	2,369
Accounts payable, accrued expenses, and other current liabilities	$ 24,253	$ 20,633

Supporting Financial Information - Debt Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Long-term portion of bank debt obligation	$ 42,542	$ 53,629
Secured Debt
Debt Instrument [Line Items]
Bank term loan	44,500	56,000
Less unamortized deferred financing cost	(1,958)	(2,371)
Net bank debt obligation	42,542	53,629
Less current portion of term loan debt obligations	0	0
Long-term portion of bank debt obligation	$ 42,542	$ 53,629

Supporting Financial Information - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interest expense	$ (635)	$ (297)	$ (2,229)	$ (485)
Amortization of deferred financing costs	(178)	(265)	(551)	(799)
Other income (expense), net	0	0	121	0
Interest expense, net	$ (813)	$ (562)	$ (2,659)	$ (1,284)

Credit Facilities - Summary of Loan Facility (Details) - Secured Debt - USD ($)	9 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Line of Credit Facility [Line Items]
Total bank debt obligation	$ 44,500,000	$ 56,000,000
Term Loans
Line of Credit Facility [Line Items]
Secured term loan, face amount	70,000,000
Total bank debt obligation	$ 44,500,000
Term Loans \| LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate percentage	0.035%
Interest rate percentage	0.17%
Revolving Line of Credit
Line of Credit Facility [Line Items]
Secured revolving line of credit ceiling	$ 25,000,000
Total bank debt obligation	$ 0
Revolving Line of Credit \| LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate percentage	0.035%

Credit Facilities - Narrative (Details)	9 Months Ended
Credit Facilities - Narrative (Details)	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Interest Rate Swap
Line of Credit Facility [Line Items]
Derivative notional amount		$ 36,000,000
Derivative fixed interest rate		1.61%
Interest expense increase (less than)	$ 100,000
Secured Debt \| Term Loans
Line of Credit Facility [Line Items]
Secured term loan, face amount	$ 70,000,000
Required amortization percentage in year 1	7.50%
Required amortization percentage in year 2	7.50%
Required amortization percentage in year 3	10.00%
Required amortization percentage in year 4	10.00%
Required amortization percentage in year 5	12.50%
Fixed charge coverage ratio	1.25
Ratio of funded indebtedness to EBITDA through maturity	3.25
Debt quarterly installment payments	$ 1,312,500
Period of frequency to increase quarterly installment payments	2 years
Increase in quarterly periodic payments	$ 437,500
Secured Debt \| Term Loans \| Excess Cash Flows Greater Than Or Equal to 2.50
Line of Credit Facility [Line Items]
Percentage of excess cash flow for each year of funded indebtedness to EBDTA	75.00%
Ratio of funded indebtedness to adjusted EBDTA, actual	2.50
Secured Debt \| Term Loans \| Excess Cash Flows Less Than 2.50 [Member]
Line of Credit Facility [Line Items]
Percentage of excess cash flow for each year of funded indebtedness to EBDTA	50.00%
Secured Debt \| Term Loans \| Excess Cash Flows Equal to 1.50
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual	1.5
Secured Debt \| Term Loans \| Excess Cash Flows Less Than 1.50
Line of Credit Facility [Line Items]
Percentage of excess cash flow for each year of funded indebtedness to EBDTA	0.00%
Ratio of funded indebtedness to adjusted EBDTA, actual	1.5
Secured Debt \| Term Loans \| Maximum
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to EBITDA through maturity	4.25
Secured Debt \| Term Loans \| Maximum \| Excess Cash Flows Less Than 2.50 [Member]
Line of Credit Facility [Line Items]
Ratio of funded indebtedness to adjusted EBDTA, actual	2.50
Secured Debt \| Term Loans \| LIBOR
Line of Credit Facility [Line Items]
Interest rate spread	0.17%
Secured Debt \| Term Loans \| LIBOR \| Maximum
Line of Credit Facility [Line Items]
Interest rate spread	4.50%
Secured Debt \| Term Loans \| LIBOR \| Minimum
Line of Credit Facility [Line Items]
Interest rate spread	2.50%
Secured Debt \| Revolving Line of Credit
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 25,000,000
Line of credit, current borrowing capacity	19,300,000
Secured Debt \| Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, current borrowing capacity	$ 3,000,000

Stock-based Compensation, Equity Grants, and Warrants - Narrative (Details) - Employee Stock Option	9 Months Ended
	Jun. 30, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards authorized for issuance (in shares)	0
Expiration term of share-based compensation plan	10 years
Number of shares available for grant (in shares)	1,100,000

Stock-based Compensation, Equity Grants, and Warrants - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	$ 1,094			$ 1,094
Weighted average share based compensation expense recognition period				3 years 9 months 25 days
Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	182		$ 199	$ 566	$ 591
DLH employees
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	1,007			1,007
DLH employees \| Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	95		67	306	196
Non-employee directors
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized expense	87			87
Non-employee directors \| Restricted Stock Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of restricted stock units granted (in shares)		77,500
Non-employee directors \| Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock option expense	$ 87		$ 132	$ 260	$ 395

Stock-based Compensation, Equity Grants, and Warrants - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2020	Sep. 30, 2019
Number of Shares
Outstanding at the beginning of the period (in shares)	2,134,000
Granted (in shares)	250,000
Exercised (in shares)	(345,000)
Cancelled (in shares)	(160,000)
Outstanding at the end of the period (in shares)	1,879,000	2,134,000
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 4.36
Granted (in dollars per share)	4.17
Exercised (in dollars per share)	1.05
Cancelled (in dollars per share)	1.29
Outstanding at the end of the period (in dollars per share)	$ 4.60	$ 4.36
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term	6 years 6 months	5 years 10 months 24 days
Aggregate Intrinsic Value
Outstanding at the beginning of the period (in dollars)	$ 4,815
Outstanding at the end of the period (in dollars)	$ 7,280	$ 4,815

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Fair Value Assumptions (Details) - Employee Stock Option	9 Months Ended
	Jun. 30, 2020 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	50.00%
Expected term (Years)	10 years
Stock price threshold term	10 days
October 18, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	$ 4.17
Stock price (in dollars per share)	$ 4.17
Expected term (Years)	10 years
Calculated fair value (in dollars per share)	$ 2.54
October 18, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	4.17
Stock price (in dollars per share)	4.17
Threshold vesting price (in dollars per share)	$ 8.00
Expected term (Years)	10 years
Calculated fair value (in dollars per share)	$ 2.56
October 18, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	4.17
Stock price (in dollars per share)	4.17
Threshold vesting price (in dollars per share)	$ 10.00
Expected term (Years)	10 years
Calculated fair value (in dollars per share)	$ 2.53
October 18, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Strike price (in dollars per share)	4.17
Stock price (in dollars per share)	4.17
Threshold vesting price (in dollars per share)	$ 12.00
Expected term (Years)	10 years
Calculated fair value (in dollars per share)	$ 2.51
Service period	1 year

Stock-based Compensation, Equity Grants, and Warrants - Stock Options Outstanding, Vested and Unvested (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Vested and exercisable (in shares)	1,072		1,300
Unvested (in shares)	807		834
Option outstanding (in shares)	1,879		2,134
Weighted average exercise price (in dollars per share)	$ 1.61		$ 1.51
Aggregate intrinsic value	$ 5.9		$ 3.9
Weighted average remaining term	3 years 2 months 12 days	3 years 9 months 18 days

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net income	$ 2,124	$ 803	$ 5,752	$ 3,758
Denominator:
Denominator for basic net income (loss) per share - weighted-average outstanding shares (in shares)	12,354	12,036	12,246	12,011
Effect of dilutive securities:
Stock options and restricted stock (shares)	874	1,041	804	1,037
Denominator for diluted net income (loss) per share - weighted-average outstanding shares (in shares)	13,228	13,077	13,050	13,048
Net income per share - basic (in dollars per share)	$ 0.17	$ 0.07	$ 0.47	$ 0.31
Net income per share - diluted (in dollars per share)	$ 0.16	$ 0.06	$ 0.44	$ 0.29

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
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The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Commitment and Contingencies - Contractual Obligations (Details) $ in Thousands	Jun. 30, 2020 USD ($)
Operating Leases
Total future lease payments	$ 31,413
Total Obligations
Total Obligations	75,913
Next 12 Months	3,134
2-3 Years	6,459
4-5 Years	50,851
More than 5 Years	15,469
Facility leases
Operating Leases
Total future lease payments	31,313
Next 12 Months	3,100
2-3 Years	6,415
4-5 Years	6,329
More than 5 Years	15,469
Equipment operating leases
Operating Leases
Total future lease payments	100
Next 12 Months	34
2-3 Years	44
4-5 Years	22
More than 5 Years	0
Debt obligations
Debt obligations
Debt obligations	44,500
Next 12 Months	0
2-3 Years	0
4-5 Years	44,500
More than 5 Years	$ 0

Commitment and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Accrued workers' compensation insurance	$ 4,888	$ 4,007