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|----------------------------------------------------------------|
|                                                                |  |  |
| New Jersey                                                     |   | 22-1899798 |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |   |
| 3565 Piedmont Road, NE, Building 3, Suite 700                  |   |   |
| Atlanta, Georgia                                               |   | 30305 |
| (Address of principal executive offices)                       |   | (Zip Code) |

|                                               |
|-----------------------------------------------|
|                                               |  |  |
| Large accelerated filer o                     |   | Accelerated filer o |
|                                          |   |   |
| Non-accelerated filer o                       |   | Smaller Reporting Company x |
| (Do not check if a smaller reporting company) |   |   |

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|                                                                                                          |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                          |  |
|                                                                                                     | Page No. |
| Part I — Financial Information                                                                |   |
| Item 1. Financial Statements                                                                             |   |
| Consolidated Statements of Income for the three and nine months ended June 30, 2016 and 2015 (Unaudited) | 3 |
| Consolidated Balance Sheets as of June 30, 2016 (Unaudited) and September 30, 2015                  | 4 |
| Consolidated Statements of Cash Flows for the nine months ended June 30, 2016 and 2015 (Unaudited)       | 5 |
| Notes to Consolidated Financial Statements (Unaudited)                                                   | 6 |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations      | 17 |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                                       | 27 |
| Item 4. Controls and Procedures                                                                          | 27 |
| Part II — Other Information                                                                   | 27 |
| Item 1. Legal Proceedings                                                                                | 27 |
| Item 1A. Risk Factors                                                                                    | 27 |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                      | 28 |
| Item 3. Defaults Upon Senior Securities                                                                  | 28 |
| Item 4. Mine Safety Disclosures                                                                          | 28 |
| Item 5. Other Information                                                                                | 28 |
| Item 6. Exhibits                                                                                         | 29 |
| Signatures                                                                                               | 30 |

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|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |  | (unaudited) |   | (unaudited) |
|                                            |  | Three Months Ended |   | Nine Months Ended |
|                                       |  | June 30, |   | June 30, |
|                                       |  | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Revenue                                    |  | $ | 24,989 |  |   | $ | 16,781 |  |   | $ | 58,482 |  |   | $ | 48,357 |  |
| Direct expenses                            |  | 19,533 |  |   | 13,743 |  |   | 46,885 |  |   | 40,055 |  |
| Gross margin                               |  | 5,456 |  |   | 3,038 |  |   | 11,597 |  |   | 8,302 |  |
| General and administrative expenses        |  | 3,374 |  |   | 2,270 |  |   | 8,402 |  |   | 6,719 |  |
| Depreciation and amortization expense      |   | 414 |  |   | 5 |  |   | 456 |  |   | 45 |  |
| Income from operations                     |  | 1,668 |  |   | 763 |  |   | 2,739 |  |   | 1,538 |  |
| Total other income (expense), net          |   | (374 | ) |   | (34 | ) |   | (1,076 | ) |   | (723 | ) |
| Income before income taxes                 |  | 1,294 |  |   | 729 |  |   | 1,663 |  |   | 815 |  |
| Income tax expense                         |  | 518 |  |   | 292 |  |   | 666 |  |   | 326 |  |
| Net income                                 |  | $ | 776 |  |   | $ | 437 |  |   | $ | 997 |  |   | $ | 489 |  |
|                                            |  |  |  |  |  |  |   |   |   |   |
| Net income per share - basic               |  | $ | 0.08 |  |  | $ | 0.05 |  |   | $ | 0.10 |  |   | $ | 0.05 |  |
| Net income per share - diluted             |   | $ | 0.07 |  |   | $ | 0.04 |  |   | $ | 0.09 |  |   | $ | 0.05 |  |
|                                       |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding |   |   |   |   |   |   |   |   |
| Basic                                      |  | 10,154 |  |  | 9,552 |  |   | 9,812 |  |   | 9,580 |  |
| Diluted                                    |  | 11,311 |  |  | 9,956 |  |   | 10,855 |  |   | 9,990 |  |

----

|                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                         |  |  |  |  |  |  |  |  |
|                                                                                                                                         |  | (unaudited) |   |  |
|                                                                                                                                         |  | June 30, 2016 |   | September 30, 2015 |
| ASSETS                                                                                                                                  |  |   |  |   |   |  |
| Current assets:                                                                                                                         |  |   |  |   |   |  |
| Cash and cash equivalents                                                                                                               |  | $ | 2,820 |  |   | $ | 5,558 |  |
| Accounts receivable, net                                                                                                                |  | 7,276 |  |   | 3,286 |  |
| Deferred taxes, net                                                                                                                     |   | 982 |  |   | 982 |  |
| Other current assets                                                                                                                    |  | 1,299 |  |   | 429 |  |
| Total current assets                                                                                                                    |  | 12,377 |  |   | 10,255 |  |
| Equipment and improvements, net                                                                                                         |  | 691 |  |   | 336 |  |
| Deferred taxes, net                                                                                                                     |   | 8,872 |  |   | 9,325 |  |
| Goodwill and other intangible assets, net                                                                                               |   | 43,009 |  |   | 8,595 |  |
| Other long-term assets                                                                                                                  |  | 161 |  |   | 113 |  |
| Total assets                                                                                                                            |  | $ | 65,110 |  |   | $ | 28,624 |  |
|                                                                                                                                    |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                              |   |   |  |   |   |  |
| Current liabilities:                                                                                                                    |   |   |  |   |   |  |
| Debt obligations - current                                                                                                              |   | $ | 4,363 |  |   | $ | — |  |
| Derivative financial instruments, at fair value                                                                                         |   | 177 |  |   | — |  |
| Accrued payroll                                                                                                                         |   | 3,763 |  |   | 2,795 |  |
| Accounts payable, accrued expenses, and other current liabilities                                                                       |   | 7,716 |  |   | 2,851 |  |
| Total current liabilities                                                                                                               |   | 16,019 |  |   | 5,646 |  |
| Debt obligations - long term                                                                                                            |   | 22,178 |  |   | — |  |
| Other long term liabilities                                                                                                             |   | 150 |  |   | 109 |  |
| Total liabilities                                                                                                                       |   | 38,347 |  |   | 5,755 |  |
| Commitments and contingencies                                                                                                           |   |  |  |   |  |  |
| Shareholders' equity:                                                                                                                   |   |   |   |   |
| Preferred stock, $.10 par value; authorized 5,000 shares, none issued and outstanding                                                   |   | — |  |   | — |  |
| Common stock, $.001 par value; authorized 40,000 shares; issued and outstanding 10,407 at June 30, 2016 and 9,551 at September 30, 2015 |   | 10 |  |   | 10 |  |
| Additional paid-in capital                                                                                                              |   | 79,272 |  |   | 76,375 |  |
| Accumulated deficit                                                                                                                     |   | (52,519 | ) |   | (53,516 | ) |
| Total shareholders’ equity                                                                                                        |   | 26,763 |  |   | 22,869 |  |
| Total liabilities and shareholders' equity                                                                                              |   | $ | 65,110 |  |   | $ | 28,624 |  |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |  |
|                                                                              |   | (unaudited) |
|                                                                              |   | Nine Months Ended |
|                                                                              |   | June 30, |
|                                                                              |   | 2016 |   | 2015 |
| Operating activities                                                              |   |   |  |   |   |  |
| Net income                                                                        |   | $ | 997 |  |   | $ | 489 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |  |   |   |  |
| Depreciation and amortization expense                                             |   | 507 |  |   | 45 |  |
| Non-cash equity grants                                                            |   | 384 |  |   | 418 |  |
| Loss on retirement of equipment                                                   |   | 3 |  |   | — |  |
| Deferred taxes, net                                                               |   | 453 |  |   | 326 |  |
| Settlement of retroactive payment claim, net                                      |   | — |  |   | 629 |  |
| Changes in operating assets and liabilities                                       |   |   |  |   |   |  |
| Accounts receivable                                                               |   | (3,990 | ) |   | (13 | ) |
| Prepaid expenses and other current assets                                         |   | (870 | ) |   | 91 |  |
| Accounts payable, accrued payroll, accrued expenses and other current liabilities |   | 5,833 |  |   | (782 | ) |
| Other long term assets/liabilities                                                |   | 63 |  |   | (21 | ) |
| Net cash from operating activities                                                |   | 3,380 |  |   | 1,182 |  |
|                                                                              |   |   |   |   |
| Investing activities                                                              |   |   |  |   |   |  |
| Acquisition of Danya, net of cash acquired                                        |   | (32,266 | ) |   | — |  |
| Purchase of equipment and improvements                                            |   | (462 | ) |   | (169 | ) |
| Net cash from investing activities                                                |   | (32,728 | ) |   | (169 | ) |
|                                                                              |   |   |   |   |
| Financing activities                                                              |   |   |  |   |   |  |
| Net borrowing on senior debt                                                      |   | 25,500 |  |   | — |  |
| Net borrowing on subordinated debt                                                |   | 2,500 |  |   | — |  |
| Deferred debt expense                                                             |   | (1,333 | ) |   | — |  |
| Repayments of capital lease obligations                                           |   | (70 | ) |   | — |  |
| Proceeds from issuance of stock                                                   |   | 13 |  |   | — |  |
| Repurchased shares of common stock held as treasury stock                         |   | — |  |   | (8 | ) |
| Repurchased shares of common stock subsequently canceled                          |   | — |  |   | (175 | ) |
| Net cash from financing activities                                                |   | 26,610 |  |   | (183 | ) |
|                                                                              |   |   |   |   |
| Net change in cash and cash equivalents                                           |   | (2,738 | ) |   | 830 |  |
| Cash and cash equivalents at beginning of period                                  |   | 5,558 |  |   | 3,908 |  |
| Cash and cash equivalents at end of period                                        |   | $ | 2,820 |  |   | $ | 4,738 |  |
|                                                                              |   |   |   |   |
| Supplemental disclosures of cash flow information                                 |   |   |  |   |   |  |
| Cash paid during the period for interest                                          |   | $ | 105 |  |   | $ | 27 |  |
| Cash paid during the period for income taxes                                      |   | $ | 105 |  |   | $ | — |  |
| Non-cash equity consideration for acquisition of Danya                            |   | $ | 2,500 |  |   | $ | — |  |

----

|         |                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------|
| • | Department of Defense and veteran health services, comprising approximately 54% of our current business base; |

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | Human services and solutions, approximately 41% of our current business base; and |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | Public health and life sciences, approximately 5% of our current business base. |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   |   |   |   | (in thousands) |   |
|                                   |   |   | June 30, |   | September 30, |
|                                   | Ref |   |   | 2016 |   |   |   | 2015 |   |
| Billed receivables                     |   |   |   | $ | 6,117 |  |   |   |   | $ | 2,498 |  |   |
| Unbilled receivables                   |   |   |   | 1,159 |  |   |   |   | 788 |  |   |
| Total accounts receivable              |   |   |   | 7,276 |  |   |   |   | 3,286 |  |   |
| Less:  Allowance for doubtful accounts | (a) |   |   | — |  |   |   |   | — |  |   |
| Accounts receivable, net               |   |   |   | $ | 7,276 |  |   |   |   | $ | 3,286 |  |   |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   | (in thousands) |   |
|                                            |   |   | June 30, |   | September 30, |
|                                            | Ref |   |   | 2016 |   |   |   | 2015 |   |
| Prepaid insurance and benefits                  |   |   |   | $ | 227 |  |   |   |   | $ | 156 |  |   |
| Due from seller, net working capital adjustment |   |   |   | 452 |  |   |   |   | — |  |   |
| Other prepaid expenses                          |   |   |   | 620 |  |   |   |   | 273 |  |   |
| Other current assets                            |   |   |   | $ | 1,299 |  |   |   |   | $ | 429 |  |   |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   |   |   | (in thousands) |   |
|                                           |   |   | June 30, |   | September 30, |
|                                           | Ref |   |   | 2016 |   |   |   | 2015 |   |
| Furniture and equipment                        |   |   |   | $ | 217 |  |   |   |   | $ | 197 |  |   |
| Computer equipment                             |   |   |   | 469 |  |   |   |   | 162 |  |   |
| Computer software                              |   |   |   | 404 |  |   |   |   | 297 |  |   |
| Leasehold improvements                         |   |   |   | 66 |  |   |   |   | 63 |  |   |
| Total fixed assets                             |   |   |   | 1,156 |  |   |   |   | 719 |  |   |
| Less accumulated depreciation and amortization |   |   |   | (465 | ) |   |   |   | (383 | ) |   |
| Equipment and improvements, net                | (a) |   |   | $ | 691 |  |   |   |   | $ | 336 |  |   |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                    |   |   |   | (in thousands) |   |
|                                                    |   |   | June 30, |   | September 30, |
|                                                    | Ref |   |   | 2016 |   |   |   | 2015 |   |
| Accrued payroll related to billed receivables           |   |   |   | $ | 2,980 |  |   |   |   | $ | 2,259 |  |   |
| Accrued payroll related to unbilled accounts receivable |   |   |   | 783 |  |   |   |   | 536 |  |   |
| Total accrued payroll                                   |   |   |   | $ | 3,763 |  |   |   |   | $ | 2,795 |  |   |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              |   |   |   | (in thousands) |   |
|                                                              |   |   | June 30, |   | September 30, |
|                                                              | Ref |   |   | 2016 |   |   |   | 2015 |   |
| Accounts payable                                                  |   |   |   | $ | 2,983 |  |   |   |   | $ | 87 |  |   |
| Accrued benefits                                                  |   |   |   | 1,152 |  |   |   |   | 267 |  |   |
| Accrued bonus and incentive compensation                          |   |   |   | 160 |  |   |   |   | 858 |  |   |
| Accrued workers compensation insurance                            |   |   |   | 805 |  |   |   |   | 945 |  |   |
| Other accrued expenses                                            |   |   |   | 2,616 |  |   |   |   | 694 |  |   |
| Accounts payable, accrued expenses, and other current liabilities | (a) |   |   | $ | 7,716 |  |   |   |   | $ | 2,851 |  |   |

----

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                   |   |   |   | (in thousands) |   |
|                                                                   |   |   | June 30, |   | September 30, |
|                                                                   | Ref |   |   | 2016 |   |   |   | 2015 |   |
| Bank revolving line of credit                                          |   |   |   | $ | 813 |  |   |   |   | $ | — |  |   |
| Bank term loan                                                         |   |   |   | 24,687 |  |   |   |   | — |  |   |
| Gross bank debt obligations                                            |   |   |   | 25,500 |  |   |   |   | — |  |   |
| Less unamortized debt issuance costs                                   |   |   |   | (1,288 | ) |   |   |   | — |  |   |
| Net bank debt obligation                                               | (a) |   |   | 24,212 |  |   |   |   | — |  |   |
| Less current portion of bank debt obligations                          |   |   |   | (4,363 | ) |   |   |   | — |  |   |
| Long term portion of bank debt obligation                              |   |   |   | 19,849 |  |   |   |   | — |  |   |
|                                                                        |   |   |   |  |   |   |   |  |   |
| Subordinated debt                                                      |   |   |   | 2,500 |  |   |   |   | — |  |   |
| Less unamortized debt issuance costs                                   |   |   |   | (171 | ) |   |   |   | — |  |   |
| Net subordinated debt                                                  | (b) |   |   | 2,329 |  |   |   |   | — |  |   |
| Total long term debt obligations                                       |   |   |   | $ | 22,178 |  |   |   |   | $ | — |  |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
| Ref (a): Maturity of the net bank debt obligation is as follows:       |
| Year 1                                                                 |   |   |   | $ | 4,363 |  |   |   |   | $ | — |  |   |
| Year 2                                                                 |   |   |   | 3,555 |  |   |   |   | — |  |   |
| Year 3                                                                 |   |   |   | 3,555 |  |   |   |   | — |  |   |
| Year 4                                                                 |   |   |   | 3,555 |  |   |   |   | — |  |   |
| Year 5                                                                 |   |   |   | 9,184 |  |   |   |   | — |  |   |
| Total net bank debt obligation                                         |   |   |   | $ | 24,212 |  |   |   |   | $ | — |  |   |
|                                                                   |   |   |   |   |   |   |   |   |   |
| Ref (b): Required maturity of the subordinated debt is beyond 5 years. |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   |   | (in thousands) |   | (in thousands) |
|                                     |   |   | Three Months Ended |   | Nine Months Ended |
|                                     |   |   | June 30, |   | June 30, |
|                                     | Ref |   | 2016 |  |   | 2015 |  |   | 2016 |  |   | 2015 |  |
| Interest income (expense), net           | (a) |   | $ | (206 | ) |   | $ | (23 | ) |   | $ | (206 | ) |   | $ | (72 | ) |
| Amortization of deferred financing costs | (b) |   | (50 | ) |   | — |  |   | (50 | ) |   | — |  |
| Other income (expense), net              | (c) |   | (25 | ) |   | (11 | ) |   | (25 | ) |   | (651 | ) |
| Acquisition expense                      | (d) |   | (93 | ) |   | — |  |   | (795 | ) |   | — |  |
| Total other income (expense), net        |   |   | $ | (374 | ) |   | $ | (34 | ) |   | $ | (1,076 | ) |   | $ | (723 | ) |

----

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |  |  |  |
|                                       |   | ($ in Millions) |
|                                       |   | As of June 30, 2016 |
| Lender                                     |   | Arrangement |   | Loan Balance |   | Interest |   | Maturity Date |
| Fifth Third Bank                           |   | Secured term loan $25 million ceiling (a) |   | $ | 24.7 |  |   | LIBOR* + 3.0% |   | 05/01/21 |
| Fifth Third Bank                           |   | Secured revolving line of credit $10 million ceiling  (b) |   | $ | 0.8 |  |   | LIBOR* + 3.0% |   | 05/01/18 |
| Wynnefield Capital                         |   | Subordinated notes (c) |   | $ | 2.5 |  |   | 4% per annum |   | 11/02/21 |
| * LIBOR rate as of June 30, 2016 was 0.46% |

----

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                       |   |   | (in thousands) |   | (in thousands) |
|                       |   |   | Three Months Ended |   | Nine Months Ended |
|                       | Ref |   | June 30, |   | June 30, |
|                       |   |   | 2016 |  |   | 2015 |  |   | 2016 |  |   | 2015 |  |
| DLH employees              |  |   | $ | 6 |  |   | $ | 72 |  |   | $ | 20 |  |   | $ | 241 |  |
| Non-employee directors     | (a) |   | 36 |  |   | — |  |   | 364 |  |   | 177 |  |
| Total stock option expense |   |   | $ | 42 |  |   | $ | 72 |  |   | $ | 384 |  |   | $ | 418 |  |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |
|                                            |   |   | (in thousands) |
|                                            |   |   | Nine Months Ended |
|                                            |   |   | June 30, |
|                                            | Ref |   | 2016 |  |   | 2015 |  |
| Unrecognized expense for DLH employees          | (a) |   | $ | 24 |  |   | $ | 105 |  |
| Unrecognized expense for non-employee directors | (b) |   | 36 |  |   | 125 |  |
| Total unrecognized expense                      |   |   | $ | 60 |  |   | $ | 230 |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         |   |   |   |   |   |   | (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, 2015 |   |   | 2,324 |  |   | $1.40 |   | 6.81 |   | $ | 3,649 |  |
| Granted                                      |  |   | — |  |   | — |   | 0 |   |   |  |
| Exercised                                    | (a) |   | (110 | ) |   | $1.40 |   |   |   |   |  |
| Options outstanding, June 30, 2016           |   |   | 2,214 |  |   | $1.40 |   | 6.01 |   | $ | 8,365 |  |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |
|                   |   |   | (in thousands) |
|                   |   |   | Number of Shares |
|                   |   |   | June 30, |
|                   | Ref |   | 2016 |   | 2015 |
| Vested and exercisable |   |   | 1,680 |  |   | 968 |  |
| Unvested               | (a) |   | 534 |  |   | 1,368 |  |
| Options outstanding    |   |   | 2,214 |  |   | 2,336 |  |

----

|                         |
|-------------------------|
|                         |  |  |
| Risk free interest rate | 1.01 | % |
| Contractual term        | 5 years |  |
| Dividend yield          | — | % |
| Expected lives          | 5 years |  |
| Expected volatility     | 74 | % |
| Fair value per warrant  | $3.31 |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                               |   | (in thousands) |
|                                                                               |   | Three Months Ended |   | Nine Months Ended |
|                                                                               |   | June 30, |   | June 30, |
|                                                                               |   | 2016 |   | 2015 |   | 2016 |   | 2015 |
| Numerator:                                                                         |   |   |   |   |   |   |   |   |
| Net income                                                                         |   | 776 |  |   | 437 |  |   | 997 |  |   | 489 |  |
| Denominator:                                                                       |   |   |   |   |   |   |   |   |
| Denominator for basic net income per share - weighted-average outstanding shares   |   | 10,154 |  |   | 9,552 |  |   | 9,812 |  |   | 9,580 |  |
| Effect of dilutive securities:                                                     |   |   |   |   |   |   |   |   |
| Stock options and restricted stock                                                 |   | 1,157 |  |   | 404 |  |   | 1,043 |  |   | 410 |  |
| Denominator for diluted net income per share - weighted-average outstanding shares |   | 11,311 |  |   | 9,956 |  |   | 10,855 |  |   | 9,990 |  |
|                                                                               |   |   |   |   |   |   |   |   |
| Net income per share - basic                                                       |   | $ | 0.08 |  |   | $ | 0.05 |  |   | $ | 0.10 |  |   | $ | 0.05 |  |
| Net income per share - diluted                                                     |   | $ | 0.07 |  |   | $ | 0.04 |  |   | $ | 0.09 |  |   | $ | 0.05 |  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   |   |   | Payments Due By Period |
| Obligations                      |   |   |   | Next 12 |   | 2-3 |   | 4-5 |   | More than 5 |
| (Amounts in thousands) | Ref | Total |   | Months |   | Years |   | Years |   | Years |
| Facility leases                  | (a) | $ | 4,417 |  |   | $ | 780 |  |   | $ | 1,731 |  |   | $ | 1,063 |  |   | $ | 843 |  |
| Equipment leases                 | (b) | 110 |  |   | 94 |  |   | 16 |  |   | — |  |   | — |  |
| Total Obligations                |   | $ | 4,527 |  |   | $ | 874 |  |   | $ | 1,747 |  |   | $ | 1,063 |  |   | $ | 843 |  |

----

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | borrowings of $30.0 million under the Company’s senior credit facility, |

|         |                                              |
|---------|----------------------------------------------|
| • | cash on hand of approximately $3.75 million, |

|         |                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 670,242 restricted shares of DLH common stock, valued at $2.5 million based on the 20 day volume-weighted average price (VWAP) of DLH stock, or $3.73 per share, and |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | $2.5 million pursuant to a subordinated loan arrangement with the Company’s largest stockholder. |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |
| (Amounts in thousands)               |   |   |
| Preliminary base purchase price for Danya      |   | $ | 38,750 |  |
| Estimated working capital deficit              |   | $ | (310 | ) |
| Estimated purchase price, net of cash acquired |   | $ | 38,440 |  |
|                                           |   |   |
| Estimated net assets acquired                  |   |   |
| Cash and cash equivalents                      |   | $ | 4,009 |  |
| Accounts receivable                            |   | 5,712 |  |
| Other current assets                           |   | 444 |  |
| Total current assets                           |   | 10,165 |  |
| Accounts payable and accrued expenses          |   | (5,543 | ) |
| Payroll liabilities                            |   | (1,432 | ) |
| Estimated net working capital surplus          |   | 3,190 |  |
| Property and equipment, net                    |   | 403 |  |
| Other long term assets                         |   | 81 |  |
| Net identifiable assets acquired               |   | 3,674 |  |
| Goodwill and other intangibles                 |   | 34,766 |  |
| Net assets acquired                            |   | $ | 38,440 |  |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   |   | (in thousands) |   | (in thousands) |
|                                   |   | Three Months Ended |   | Nine Months Ended |
|                                   |   | June 30, |   | June 30, |
| Pro forma results                      |   | 2016 |  |   | 2015 |  |   | 2016 |  |   | 2015 |  |
| Revenue                                |   | $ | 30,411 |  |   | $ | 26,828 |  |   | $ | 92,164 |  |   | $ | 83,359 |  |
| Net income                             |   | $ | 1,416 |  |   | $ | 415 |  |   | $ | 2,618 |  |   | $ | 657 |  |
|                                   |   |   |   |   |   |   |   |   |
| Number of shares outstanding - basic   |   | 11,123 |  |   | 10,933 |  |   | 11,051 |  |   | 10,961 |  |
| Number of shares outstanding - diluted |   | 12,280 |  |   | 11,337 |  |   | 12,094 |  |   | 11,371 |  |
|                                   |   |   |   |   |   |   |   |   |
| Basic earnings per share               |   | $0.13 |   | $0.04 |   | $0.24 |   | $0.06 |
| Diluted earnings per share             |   | $0.12 |   | $0.04 |   | $0.22 |   | $0.06 |

----

----

----

----

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                        |   | Three Months Ended |   | Change in |
| Consolidated Statement of Income: |   | June 30, 2016 |   | June 30, 2015 |   | $ |   | % of Rev |
| Revenue                                     |   | $ | 24,989 |  |   | 100.0 |  % |   | $ | 16,781 |  |   | 100.0 |  % |   | $ | 8,208 |  |   | — |  % |
| Direct expenses                             |   | 19,533 |  |   | 78.2 |  % |   | 13,743 |  |   | 81.9 |  % |   | 5,790 |  |   | (3.7 | )% |
| Gross margin                                |   | 5,456 |  |   | 21.8 |  % |   | 3,038 |  |   | 18.1 |  % |   | 2,418 |  |   | 3.7 |  % |
| General and administrative expenses         |   | 3,374 |  |   | 13.5 |  % |   | 2,270 |  |   | 13.5 |  % |   | 1,104 |  |   | — |  % |
| Depreciation and amortization expense       |   | 414 |  |   | 1.7 |  % |   | 5 |  |   | — |  % |   | 409 |  |   | 1.7 |  % |
| Income from operations                      |   | 1,668 |  |   | 6.7 |  % |   | 763 |  |   | 4.5 |  % |   | 905 |  |   | 2.2 |  % |
| Other income (expense), net                 |   | (374 | ) |   | (1.5 | )% |   | (34 | ) |   | (0.2 | )% |   | (340 | ) |   | (1.3 | )% |
| Income before income taxes                  |   | 1,294 |  |   | 5.2 |  % |   | 729 |  |   | 4.3 |  % |   | 565 |  |   | 0.9 |  % |
| Income tax expense                          |   | 518 |  |   | 2.1 |  % |   | 292 |  |   | 1.7 |  % |   | 226 |  |   | 0.4 |  % |
| Net income                                  |   | $ | 776 |  |   | 3.1 |  % |   | $ | 437 |  |   | 2.6 |  % |   | $ | 339 |  |   | 0.5 |  % |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share - basic                |   | $ | 0.08 |  |   |   |   | $ | 0.05 |  |   |   |   | $ | 0.03 |  |   |   |
| Net income per share - diluted              |   | $ | 0.07 |  |   |   |   | $ | 0.04 |  |   |   |   | $ | 0.03 |  |   |   |

----

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             |   | Nine Months Ended |   | Change in |
| Consolidated Statement of Income: |   | June 30, 2016 |   | June 30, 2015 |   | $ |   | % of Rev |  |
| Revenue                                          |   | $ | 58,482 |  |   | 100.0 |  % |   | $ | 48,357 |  |   | 100.0 |  % |   | $ | 10,125 |  |   | — |  % |
| Direct expenses                                  |   | 46,885 |  |   | 80.2 |  % |   | 40,055 |  |   | 82.8 |  % |   | 6,830 |  |   | (2.6 | )% |
| Gross margin                                     |   | 11,597 |  |   | 19.8 |  % |   | 8,302 |  |   | 17.2 |  % |   | 3,295 |  |   | 2.6 |  % |
| General and administrative expenses              |   | 8,402 |  |   | 14.4 |  % |   | 6,719 |  |   | 13.9 |  % |   | 1,683 |  |   | 0.5 |  % |
| Depreciation and amortization expense            |   | 456 |  |   | 0.8 |  % |   | 45 |  |   | 0.1 |  % |   | 411 |  |   | 0.7 |  % |
| Income from operations                           |   | 2,739 |  |   | 4.7 |  % |   | 1,538 |  |   | 3.2 |  % |   | 1,201 |  |   | 1.5 |  % |
| Other income (expense), net                      |   | (1,076 | ) |   | (1.8 | )% |   | (723 | ) |   | (1.5 | )% |   | (353 | ) |   | (0.3 | )% |
| Income before income taxes                       |   | 1,663 |  |   | 2.8 |  % |   | 815 |  |   | 1.7 |  % |   | 848 |  |   | 1.1 |  % |
| Income tax expense                               |   | 666 |  |   | 1.1 |  % |   | 326 |  |   | 0.7 |  % |   | 340 |  |   | 0.4 |  % |
| Net income                                       |   | $ | 997 |  |   | 1.7 |  % |   | $ | 489 |  |   | 1.0 |  % |   | $ | 508 |  |   | 0.7 |  % |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share - basic                     |   | $ | 0.10 |  |   |   |   | $ | 0.05 |  |   |   |   | $ | 0.05 |  |   |   |
| Net income per share - diluted                   |   | $ | 0.09 |  |   |   |   | $ | 0.05 |  |   |   |   | $ | 0.04 |  |   |   |
|                                             |   |   |   |   |   |   |   |   |   |   |   |   |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Acquisition expenses and interest expenses are excluded in the current year period.  Settlement of the retroactive payment claim, which is non-recurring, is excluded from the prior year period.  These expenditures do not relate to the ongoing operation of the existing business base, and they tend to vary significantly based on the timing of proposed transactions. We believe that segregating and excluding these expenses allow for improved comparability of results from period to period. |

----

|         |                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Equity compensation is excluded because it is non-cash in nature. We believe that excluding this expense allows for improved comparability of results from period to period. |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                              |   | Three Months Ended |   | Nine Months Ended |
|                                              |   | June 30, |   | June 30, |
|                                              |   | 2016 |   | 2015 |   | Change |   | 2016 |   | 2015 |   | Change |
| Net income                                        |   | $ | 776 |  |   | $ | 437 |  |   | $ | 339 |  |   | $ | 997 |  |   | $ | 489 |  |   | $ | 508 |  |
| (i) Interest and other (income) expense (net):    |   |   |   |   |   |   |   |   |   |   |   |   |
| (i)(a) Interest and other expense                 |   | 281 |  |   | 34 |  |   | 247 |  |   | 281 |  |   | 723 |  |   | (442 | ) |
| (i)(b) Acquisition expenses                       |   | 93 |  |   | — |  |   | 93 |  |   | 795 |  |   | — |  |   | 795 |  |
| (ii) Provision (benefit) for taxes                |   | 518 |  |   | 292 |  |   | 226 |  |   | 666 |  |   | 326 |  |   | 340 |  |
| (iii) Depreciation and amortization               |   | 414 |  |   | 5 |  |   | 409 |  |   | 456 |  |   | 45 |  |   | 411 |  |
| (iv) G&A expenses - equity grants             |   | 42 |  |   | 72 |  |   | (30 | ) |   | 384 |  |   | 418 |  |   | (34 | ) |
| Adjusted EBITDA                                   |   | $ | 2,124 |  |   | $ | 840 |  |   | $ | 1,284 |  |   | $ | 3,579 |  |   | $ | 2,001 |  |   | $ | 1,578 |  |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average outstanding shares fully diluted |   | 11,311 |  |   | 9,956 |  |   | 1,355 |  |   | 10,855 |  |   | 9,990 |  |   | 865 |  |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |
| (Amounts in Millions)                                              |   |   | Nine Months Ended |
|                                                               | Ref |   | 06/30/16 |
| Cash and cash equivalents                                          | (a) |   | $2.8 |
| Borrowing on line of credit                                        | (b) |   | $0.8 |
| Unused borrowing capacity on revolving line of credit              | (c) |   | $4.3 |
| Adjusted EBITDA                                                    | (d) |   | $3.6 |
| Cash flows from operating activities                               | (e) |   | $3.4 |
| Cash flows used in investing and financing activities, net         | (f) |   | $(6.1) |
| Working capital deficit (current assets minus current liabilities) | (g) |   | $(3.6) |

----

----

----

|                      |
|----------------------|
|                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                 |   |   |   |   |   |   |   |   |   |   | ($ in thousands) |
| Period               |   | Total Numberof SharesPurchased |   | Average PricePaid Per Share |   | Total Number ofShares Purchased As Part of PubliclyAnnounced Programs |   | Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program |
| April 2016           |   | — |  |   | $ | — |  |   |   | — |  |   |   |   | $ | 77 |  |   |
| May 2016             |   | — |  |   | $ | — |  |   |   | — |  |   |   |   | $ | 77 |  |   |
| June 2016            |   | — |  |   | $ | — |  |   |   | — |  |   |   |   | $ | 77 |  |   |
| Second Quarter Total |   | — |  |   | $ | — |  |   |   | — |  |   |   |   | $ | 77 |  |   |

----

|         |
|---------|
|         |  |  |  |  |  |  |  |  |  |  |
| Exhibit |   |   |   | Incorporated by Reference |   | Filed |
| Number  |   | Exhibit Description |   | Form |   | Dated |   | Exhibit |   | Herewith |
|    |   |   |   |   |   |   |   |   |   |   |
| 2.1     |   | Equity Purchase Agreement among the Company, Danya International LLC, DI Holdings, Inc. and the owners named therein. |   | 8-K |   | 5/6/16 |   | 2.1 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 4.1     |   | Form of Term Note issued pursuant to the Loan Agreement. |   | 8-K |   | 5/6/16 |   | 4.1 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 4.2     |   | Form of Revolving Credit Note issued pursuant to the Loan Agreement. |   | 8-K |   | 5/6/16 |   | 4.2 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 4.3     |   | Form of Subordinated Promissory Note issued to Subordinated Lenders. |   | 8-K |   | 5/6/16 |   | 4.3 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 4.4     |   | Form of Warrant issued to Subordinated Lenders. |   | 8-K |   | 5/6/16 |   | 4.4 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.1    |   | Consulting Agreement between the Company and Jeffrey Hoffman. |   | 8-K |   | 5/6/16 |   | 10.1 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.2    |   | Non-Competition Agreement between the Company and Jeffrey Hoffman. |   | 8-K |   | 5/6/16 |   | 10.2 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.3    |   | Loan Agreement among Fifth third Bank, DLH Holdings Corp., DLH Solutions, Inc. and Danya International, LLC. |   | 8-K |   | 5/6/16 |   | 10.3 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.4    |   | Form of Security Agreement entered into pursuant to the Loan Agreement. |   | 8-K |   | 5/6/16 |   | 10.4 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.5    |   | Form of Pledge Agreement entered into pursuant to the Loan Agreement. |   | 8-K |   | 5/6/16 |   | 10.5 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.6    |   | Note Purchase Agreement among the Company and the Subordinated Lenders. |   | 8-K |   | 5/6/16 |   | 10.6 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 10.7    |   | Subordination Agreement among the Company, Fifth Third Bank and the Subordinated Lenders. |   | 8-K |   | 5/6/16 |   | 10.7 |   |   |
|    |   |   |   |   |   |   |   |   |   |   |
| 31.1    |   | Certification of Chief Executive Officer pursuant to Section 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a) |   |   |   |   |   |   |   | X |
|    |   |   |   |   |   |   |   |   |   |   |
| 31.2    |   | Certification of Chief Financial Officer pursuant to Section 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a) |   |   |   |   |   |   |   | X |
|    |   |   |   |   |   |   |   |   |   |   |
| 32.1    |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 17 CFR 240.13a-14(b) or 17 CFR 240.15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code |   |   |   |   |   |   |   | X |
|    |   |   |   |   |   |   |   |   |   |   |
| 101     |   | The following financial information from the DLH Holdings Corp. Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2016, formatted in XBRL (eXtensible Business Reporting Language) and filed electronically herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statements of Cash Flows; and, (iv) the Notes to the Consolidated Financial Statements. |   |   |   |   |   |   |   | X |

----

|                        |
|------------------------|
|                        |  |  |  |
|                   |   | DLH HOLDINGS CORP. |
|                   |   |   |   |
|                   |   | By: | /s/ Zachary C. Parker |
|                   |   |   | Zachary C. Parker |
|                   |   |   | Chief Executive Officer |
|                   |   |   | (Principal Executive Officer) |
|                   |   |   |   |
|                   |   | By: | /s/ Kathryn M. JohnBull |
|                   |   |   | Kathryn M. JohnBull |
|                   |   |   | Chief Financial Officer |
|                   |   |   | (Principal Accounting Officer) |
|                   |   |   |   |
| Dated: August 10, 2016 |   |   |   |