Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (14,347)	$ (17,763)
Adjustments to reconcile net loss to cash used in operating activities:
Gain on extingishment of debt	(12,316)	0
Depreciation and amortization	5,286	5,935
Goodwill impairment charge	8,850	4,300
Non-cash lease expense	1,623	0
Stock compensation expense	1,559	2,186
Provision for doubtful accounts	1,557	213
Deferred income taxes	130	154
Amortization of debt discount	1,779	909
Interest expense paid with common and preferred stock	1,288	1,666
Paid in kind interest on term loan	1,242	0
Change in acquisition deposit for working capital guarantee	(783)	(100)
Changes in operating assets and liabilities:
Accounts receivable	3,222	(284)
Accrued interest	95	0
Accounts payable	(2,156)	1,210
Accrued compensation	2,729	0
Change in other assets, net of change in other liabilities	(2,005)	1,180
Net cash used in operating activities	(2,247)	(394)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(119)	(209)
Net cash used in investing activities	(119)	(209)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on term loan	(500)	(2,687)
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 capital lease	0	(51)
Net (payments on) proceeds from revolving credit	(2,387)	2,290
Net cash provided by financing activities	12,385	1,445
Net change in cash	10,019	842
Cash at beginning of year	4,055	3,213
Cash at end of year	14,074	4,055
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	7,785	10,137
Cash paid for taxes	80	92
Non-cash investing and financing activities
Conversion of series B convertible preferred stock to common stock	0	1,238
Beneficial conversion features on subordinated debt	0	841
Acquisition of equipment with finance lease	184	102
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
Accrued fees on term loan	4,978	0
Right-of-use assets, net of deferred rent	6,246	0
Operating lease liability	$ 6,687	$ 0