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, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 1,173	$ (4,662)
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities:
Depreciation and amortization	1,867	733
Stock issued for services		189
Stock option expense	793	340
Provision for doubtful accounts	(44)	40
Change in fair value of derivative liability		2,251
Loss on extinguishment of debt		234
Loss on abandonment of fixed assets		15
Amortization of debt discount	215
Change in contingent consideration	(1,581)
Changes in operating assets and liabilities -
Accounts receivable	(100)	223
Accounts payable	343	(1,068)
Accrued compensation	(871)	54
Other current items, net	(1,086)	857
Long-term liabilities	14	144
Net cash provided by (used in) operating activities	723	(650)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(120)	(186)
Acquisition payments	(9,395)	(2,351)
Partial payment of earn-out		(225)
Net cash used in investing activities	(9,515)	(2,762)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from subordinated debt	4,107
Payments on the debt related to acquisitions	(492)
Proceeds from short-term debt, net		7,754
Proceeds from the issuance of preferred stock		1,826
Proceeds from the exercise of stock options		194
Payments on capital lease	(66)	(101)
Net proceeds (payments) from short-term debt	1,839	(497)
Net cash provided by financing activities	5,388	9,176
Net change in cash	(3,404)	5,764
Cash at beginning of year	5,932	168
Cash at end of year	2,528	5,932
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	1,070	274
Cash paid for taxes	3	4
Issuance of preferred shares for acquisition		(135)
Non-cash financing activities
Conversion of note payable		2,867
Issuance of shares for accrued board fees		69
Conversion of preferred stock		8,226
Issuance of stock for acquisition of Agile		865
Preferred stock and warrants issued for Scribe acquisitions		7,730
Stock paid for prepaid interest on subordinated note	566
Stock paid for fees in conection with subordinated note	23
Issuance of common stock for acquisition	2,197
Note issued in connection with acquisition	3,000
Earn-out liability, contingent consideration, and other liabilities incurred in connection with acquisition	4,246
Payment of contingent consideration with common shares	$ 544