Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,797)	$ (14,176)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Gain on Extingishment of Debt	(12,316)	0
Depreciation and amortization	4,102	4,458
Goodwill impairment charge	0	4,300
Non-cash lease expense	1,302	0
Stock Compensation expense	1,290	1,661
Provision for doubtful accounts	1,633	0
Deferred income taxes	100	396
Amortization of debt discount	1,334	634
Interest expense paid with common and preferred stock	1,288	1,224
Paid in kind interest on term loan	701	0
Change in acquisition deposit for working capital guarantee	(780)	0
Changes in operating assets and liabilities:
Accounts receivable	5,503	318
Accounts payable	(1,557)	1,390
Accrued compensation	1,139	(25)
Change in other assets, net of change in other liabilities	(1,697)	(731)
Cash provided by (used in) operating activities	245	(551)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(105)	(108)
Net cash used in investing activities	(105)	(108)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on term loan	(500)	(2,187)
Net proceeds from (payments on) subordinated debt	(1,724)	1,893
Payment on preferred stock redemption	(2,931)	0
Net proceeds from CARES Act Paycheck Protection Program Loans	19,927	0
Payments on finance leases	0	(37)
Net proceeds from (payments on) revolving credit	(2,390)	1,940
Net cash provided by financing activities	12,382	1,609
Net change in cash	12,522	950
Cash at beginning of period		4,055
Cash at end of period	16,577	4,163
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	7,375	7,373
Cash paid for taxes	29	75
Non-cash investing and financing activities
Conversion of 8% subordinated notes to common stock by related parties	1,000	0
Conversion of 10% subordinated notes to common stock	4,185	0
Conversion of series C preferred stock to common by related parties	93	0
Redemption of series B preferred stock	24,441	0
Redemption of series C preferred stock	34	0
Conversion of series B convertible preferred stock to common stock	0	1,238
Beneficial conversion features on subordinated debt	0	841
Accrued fees on term loan	4,978	0
Right-of-use assets, net of deferred rent	5,981	0
Operating lease liability	6,422	0
Acquisition of equipment with finance lease	$ 37	$ 102