Information Services (III) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-33287
Entity Registrant Name	Information Services Group Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5261587
Entity Address, Address Line One	2187 Atlantic Street
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06902
City Area Code	203
Local Phone Number	517-3100
Title of 12(b) Security	Shares of Common Stock, $0.001 par value
Trading Symbol	III
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		48,019,773
Entity Central Index Key	0001371489
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 38,141	$ 18,153
Accounts receivable and contract assets, net of allowance of $749 and $343, respectively	66,239	77,076
Prepaid expenses and other current assets	4,556	4,572
Total current assets	108,936	99,801
Restricted cash	91	88
Furniture, fixtures and equipment, net	5,003	6,014
Right-of-use lease assets	4,983	6,572
Goodwill	90,789	85,349
Intangible assets, net	15,962	16,605
Deferred tax assets	3,349	3,589
Other assets	957	737
Total assets	230,070	218,755
Current liabilities
Accounts payable	9,410	8,862
Current maturities of long-term debt	4,300	11,000
Contract liabilities	4,546	4,935
Accrued expenses and other current liabilities	25,622	16,454
Total current liabilities	43,878	41,251
Long-term debt, net of current maturities	74,564	74,823
Deferred tax liabilities	3,460	3,472
Operating lease liabilities	3,784	5,013
Other liabilities	10,772	4,522
Total liabilities	136,458	129,081
Commitments and contingencies (Note 9)
Stockholders' equity
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued
Common stock, $0.001 par value, 100,000 shares authorized; 48,112 shares issued and 47,954 outstanding at September 30, 2020 and 48,112 shares issued and 47,478 outstanding at December 31, 2019	48	48
Additional paid-in capital	245,731	245,572
Treasury stock (158 and 634 common shares, respectively, at cost)	(319)	(2,051)
Accumulated other comprehensive loss	(6,398)	(7,138)
Accumulated deficit	(145,450)	(146,757)
Total stockholders' equity	93,612	89,674
Total liabilities and stockholders' equity	$ 230,070	$ 218,755

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivables and contract assets, allowances	$ 749	$ 343
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	48,112	48,112
Common stock, shares outstanding	47,954	47,478
Treasury stock, shares	158	634

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Revenues	$ 61,635	$ 68,143	$ 182,739	$ 200,262
Operating expenses
Direct costs and expenses for advisors	36,762	37,725	111,539	116,636
Selling, general and administrative	20,318	23,092	60,792	70,327
Depreciation and amortization	1,581	1,672	4,641	5,031
Operating income	2,974	5,654	5,767	8,268
Interest income	61	41	188	133
Interest expense	(687)	(1,598)	(2,890)	(4,763)
Foreign currency transaction (loss) gain	(66)	7	14	(28)
Income before taxes	2,282	4,104	3,079	3,610
Income tax provision	227	2,373	1,772	2,363
Net income	$ 2,055	$ 1,731	$ 1,307	$ 1,247
Weighted average shares outstanding:
Basic (in shares)	47,880	47,426	47,599	46,704
Diluted (in shares)	49,908	48,404	49,546	47,204
Earnings per share:
Basic (in dollars per share)	$ 0.04	$ 0.04	$ 0.03	$ 0.03
Diluted (in dollars per share)	$ 0.04	$ 0.04	$ 0.03	$ 0.03
Comprehensive income:
Net income	$ 2,055	$ 1,731	$ 1,307	$ 1,247
Foreign currency translation, net of tax (expense) benefit of ($398), $294, ($207) and $309, respectively.	1,261	(927)	740	(982)
Comprehensive income	$ 3,316	$ 804	$ 2,047	$ 265

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Foreign currency translation, tax (expense) benefit	$ (398)	$ 294	$ (207)	$ 309

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In-Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 45	$ 235,998	$ (203)	$ (7,155)	$ (150,098)	$ 78,587
Balance (in shares) at Dec. 31, 2018	45,477
Increase (Decrease) in Stockholders' Equity
Net income					1,247	1,247
Other comprehensive income/(loss)				(982)		(982)
Treasury shares repurchased			(2,976)			(2,976)
Proceeds from issuance of ESPP shares		575				575
Proceeds from issuance of ESPP shares (in shares)	173
Issuance of treasury shares		(847)	847
Issuance of common stock for contingent earn-out	$ 1	864				865
Issuance of common stock for contingent earn-out (in shares)	243
Issuance of common stock for RSUs vested	$ 2	(2)
Issuance of common stock for RSUs vested (in shares)	2,221
Stock based compensation		7,150				7,150
Balance at Sep. 30, 2019	$ 48	243,738	(2,332)	(8,137)	(148,851)	84,466
Balance (in shares) at Sep. 30, 2019	48,114
Balance at Jun. 30, 2019	$ 48	241,983	(3,179)	(7,210)	(150,582)	81,060
Balance (in shares) at Jun. 30, 2019	48,063
Increase (Decrease) in Stockholders' Equity
Net income					1,731	1,731
Other comprehensive income/(loss)				(927)		(927)
Proceeds from issuance of ESPP shares		146				146
Proceeds from issuance of ESPP shares (in shares)	51
Issuance of treasury shares		(847)	847
Stock based compensation		2,456				2,456
Balance at Sep. 30, 2019	$ 48	243,738	(2,332)	(8,137)	(148,851)	84,466
Balance (in shares) at Sep. 30, 2019	48,114
Balance at Dec. 31, 2019	$ 48	245,572	(2,051)	(7,138)	(146,757)	$ 89,674
Balance (in shares) at Dec. 31, 2019	48,112					48,112,000
Increase (Decrease) in Stockholders' Equity
Net income					1,307	$ 1,307
Other comprehensive income/(loss)				740		740
Treasury shares repurchased			(5,052)			(5,052)
Proceeds from issuance of ESPP shares		(80)	479			399
Issuance of treasury shares		(6,305)	6,305
Stock based compensation		6,544				6,544
Balance at Sep. 30, 2020	$ 48	245,731	(319)	(6,398)	(145,450)	$ 93,612
Balance (in shares) at Sep. 30, 2020	48,112					48,112,000
Balance at Jun. 30, 2020	$ 48	244,257	(847)	(7,659)	(147,505)	$ 88,294
Balance (in shares) at Jun. 30, 2020	48,112
Increase (Decrease) in Stockholders' Equity
Net income					2,055	2,055
Other comprehensive income/(loss)				1,261		1,261
Treasury shares repurchased			(277)			(277)
Proceeds from issuance of ESPP shares		(21)	141			120
Issuance of treasury shares		(664)	664
Stock based compensation		2,159				2,159
Balance at Sep. 30, 2020	$ 48	$ 245,731	$ (319)	$ (6,398)	$ (145,450)	$ 93,612
Balance (in shares) at Sep. 30, 2020	48,112					48,112,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net income	$ 1,307	$ 1,247
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	2,023	2,022
Amortization of intangible assets	2,618	3,009
Deferred tax expense from stock issuances	972	172
Write-off of deferred financing costs	167
Amortization of deferred financing costs	313	460
Stock-based compensation	6,544	7,150
Provisions for accounts receivable	599	738
Deferred tax (benefit) provision	(984)	68
Loss on disposal of fixed assets		4
Changes in operating assets and liabilities:
Accounts receivable and contract assets	10,764	(8,090)
Prepaid expense and other assets	2,134	1,008
Accounts payable	323	189
Contract liabilities	(669)	(2,184)
Accrued expenses	11,196	9
Net cash provided by operating activities	37,307	5,802
Cash flows from investing activities
Purchase of furniture, fixtures and equipment	(795)	(1,115)
Neuralify acquisition (Note 4)	(2,282)
Net cash used in investing activities	(3,077)	(1,115)
Cash flows from financing activities
Principal payments on borrowings, net	(7,013)	(2,688)
Payment of contingent consideration		(865)
Proceeds from issuance of employee stock purchase plan shares	399	575
Debt financing costs	(934)
Payments related to tax withholding for stock-based compensation	(1,909)	(2,732)
Treasury shares repurchased	(5,052)	(2,976)
Net cash used in financing activities	(14,509)	(8,686)
Effect of exchange rate changes on cash	270	(433)
Net increase (decrease) in cash, cash equivalents, and restricted cash	19,991	(4,432)
Cash, cash equivalents, and restricted cash, beginning of period	18,241	18,725
Cash, cash equivalents, and restricted cash, end of period	38,232	14,293
Non-cash investing and financing activities:
Issuance of treasury stock for vested restricted stock awards	$ 6,305	$ 847

DESCRIPTION OF ORGANIZATION AND

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	9 Months Ended
	Sep. 30, 2020
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	NOTE 1—DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS ​ Information Services Group, Inc. (the “Company” or “ISG”) was founded in 2006 with the strategic vision to become a high-growth, leading provider of information-based advisory services. The Company specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; technology strategy and operations design; change management; market intelligence and technology research and analysis.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2020
BASIS OF PRESENTATION
BASIS OF PRESENTATION	NOTE 2—BASIS OF PRESENTATION ​ The accompanying unaudited condensed consolidated financial statements as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are considered necessary for a fair statement of the financial position of the Company as of September 30, 2020 and the results of operations for the three and nine months ended September 30, 2020 and 2019 and the cash flows for the nine months ended September 30, 2020 and 2019. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s audited consolidated financial statements. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. ​ Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the financial statements for the fiscal year ended December 31, 2019, which are included in the Company’s 2019 Annual Report on Form 10-K filed with the SEC. ​

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Use of Estimates ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. Additionally, ISG has to determine the nature and timing of the satisfaction of performance obligations, the standalone selling price (“SSP”) of certain performance obligations, among other judgments associated with revenue recognition. Numerous internal and external factors can affect estimates. Estimates are also used for (but not limited to): allowance for doubtful accounts; useful lives of furniture, fixtures and equipment and definite-lived intangible assets; depreciation expense; fair value assumptions in analyzing goodwill and other long-lived assets for impairment; income taxes and deferred tax asset valuation; and the valuation of stock-based compensation. ​ Restricted Cash ​ Restricted cash consists of cash and cash equivalents which the Company has committed for rent deposits. ​ Fair Value ​ The carrying value of the Company’s cash and cash equivalents, receivables, accounts payable, other current liabilities, and accrued interest approximated their fair values at September 30, 2020 and December 31, 2019 due to the short-term nature of these accounts. ​ Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to contingent consideration in a business combination. ​ Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: ​ ● Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; ​ ● Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and ​ ● Level 3 measurements include those that are unobservable and of a highly subjective measure. ​ The following tables summarize the assets measured at fair value on a recurring basis at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basis of Fair Value Measurements ​ ​ ​ September 30, 2020 ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents $ 17 $ — $ — $ 17 ​ Total $ 17 $ — $ — $ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration (1) $ — $ — $ 4,948 $ 4,948 ​ Total $ — $ — $ 4,948 $ 4,948 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basis of Fair Value Measurements ​ ​ ​ December 31, 2019 ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents $ 17 $ — $ — $ 17 ​ Total $ 17 $ — $ — $ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration (1) $ — $ — $ — $ — ​ Total $ — $ — $ — $ — ​ (1) ​ The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and the likelihood of the Company making payments. These cash outflow projections have then been discounted using a rate ​ The following table represents the change in the contingent consideration liability during the nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ ​ 2020 2019 Beginning Balance ​ $ — ​ $ 1,703 ​ Neuralify contingent consideration accrued ​ 4,900 ​ — ​ Payment of contingent consideration ​ — ​ (1,730) ​ Accretion of contingent consideration ​ 48 ​ 30 ​ Unrealized gain (loss) related to currency translation ​ — ​ (3) ​ Ending Balance ​ $ 4,948 ​ $ — ​ ​ The Company’s financial instruments include outstanding borrowings of $79.9 million at September 30, 2020 and $86.9 million at December 31, 2019, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings is approximately $78.8 million and $86.7 million at September 30, 2020 and December 31, 2019, respectively. The fair values of debt have been estimated using a discounted cash flow discount ​ Recently Issued Accounting Pronouncements ​ In June 2016, the FASB issued new guidance on the measurement of credit losses for financial assets measured at amortized cost, which includes accounts receivable, and available-for-sale debt securities. The new guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses and additional disclosures. As a smaller reporting company, this guidance is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2020
ACQUISITIONS
ACQUISITION	NOTE 4 — ACQUISITION ​ Neuralify Acquisition ​ On July 8, 2020, a subsidiary of the Company executed an Asset Purchase Agreement with Neuralify, LLC (“the Agreement”), a market leader in intelligent automation enablement solutions and services, and consummated the acquisition of substantially all of the assets and assumed certain liabilities of Neuralify, LLC. The primary reason for the acquisition was to expand the capabilities of ISG’s pure-play automation service line, ISG Automation. The purchase price was comprised of $2.3 million of cash consideration paid at closing and Neuralify, LLC will also have the right to receive additional consideration paid via earn-out payments during the next 18 months, if certain financial targets are met. The Company estimates such earn-out payments will be up to $4.9 million. ​ The following table summarizes the consideration transferred to acquire Neuralify, LLC and the amounts of identified assets acquired, and liabilities assumed as of the Agreement date: ​ ​ ​ ​ ​ Cash $ 2,282 Contingent consideration ​ 4,900 Total allocable purchase price ​ $ 7,182 ​ Recognized amounts of identifiable assets acquired and liabilities assumed as of the Agreement date: ​ ​ ​ ​ ​ Accounts receivable ​ $ 226 Contract assets ​ 1 Intangible assets ​ 1,970 Accounts payable ​ (79) Contract liabilities ​ (280) Net assets acquired ​ $ 1,838 ​ ​ ​ ​ Goodwill ​ $ 5,344 ​ The primary factors that drove the goodwill recognized, the majority of which is deductible for tax purposes, are the inclusion of legacy Neuralify software and workforce which expands the Company’s pure-play automation service line, ISG Automation. ​ Costs associated with this acquisition are included in the selling, general and administrative expenses in the condensed consolidated statement of comprehensive income and totaled $0.1 million during the nine months ended September 30, 2020. This business combination was accounted for under the acquisition method of accounting, and as such, the aggregate purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on estimated fair values as of the closing date. The purchase price allocations will be finalized after the completion of the valuation of certain intangible assets and any adjustments to the preliminary purchase price allocations are not expected to have a material impact on the Company’s results of operations. Based on the valuation and other factors as described above, the purchase price assigned to intangible assets and the amortization period were as follows: ​ ​ ​ ​ ​ ​ ​ ​ Purchase Price Estimated ​ Allocation Useful Lives Amortizable intangible assets: ​ ​ ​ ​ ​ Trademark and trade names ​ $ 240 3 years Software ​ ​ 160 ​ 7 years Customer relationships ​ ​ 1,560 ​ 7 years Noncompete agreements ​ ​ 10 ​ 2 years Total intangible assets ​ $ 1,970 ​ ​ ​ The Condensed Consolidated Statements of Comprehensive Income includes the results of the Neuralify acquisition subsequent to the closing. Had the acquisition occurred as of January 1, 2019, the impact on the Company’s results of operations would not have been material.

GOODWILL

GOODWILL	9 Months Ended
	Sep. 30, 2020
GOODWILL
GOODWILL	NOTE 5—GOODWILL ​ The changes in the carrying amount of goodwill for the period ended September 30, 2020 are as follows: ​ ​ ​ ​ ​ Balance as of December 31, 2019 $ 85,349 Neuralify Acquisition ​ 5,344 Foreign currency impact ​ 96 Balance as of September 30, 2020 $ 90,789 ​

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2020
REVENUE
REVENUE	NOTE 6—REVENUE ​ The majority of our revenue is derived from contracts that can span from a few months to several years. We enter into contracts that can include various combinations of services, which, depending on contract type, are sometimes capable of being distinct. If services are determined to be distinct, they are accounted for as separate performance obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the client and is the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct. For contracts with multiple performance obligations, including our managed service implementation and software and implementation contract types, the Company allocates the transaction price to each performance obligation using our best estimate of the standalone selling price, or SSP, of each distinct good or service in the contract. ​ Our contracts may include promises to transfer multiple services and products to a client. Determining whether services and products are considered distinct performance obligations that should be accounted for separately versus together may require judgment. ​ Estimates were required to determine the SSP for each distinct performance obligation identified within our managed service implementation contracts, software and implementation contracts, and research and subscription contracts. ​ Contract Balances ​ The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities). Our clients are billed based on the type of arrangement. A portion of our services is billed monthly based on hourly or daily rates. There are also client engagements in which we bill a fixed amount for our services. This may be one single amount covering the whole engagement or several amounts for various phases, functions, or milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits before revenue is recognized, resulting in contract liabilities. Contract assets and liabilities are reported in the current assets and current liabilities sections of the consolidated balance sheet, at the end of each reporting period, based on the timing of the satisfaction of the related performance obligation(s). See the table below for a breakdown of contract assets and contract liabilities. ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2020 2019 Contract assets ​ $ 29,569 ​ $ 28,529 Contract liabilities ​ $ 4,546 ​ $ 4,935 ​ Revenue recognized for the three months ended September 30, 2020 that was included in the contract liability balance at July 1, 2020 was $2.4 million and represented primarily revenue from our fixed fee and subscription contracts. ​ Revenue recognized for the nine months ended September 30, 2020 that was included in the contract liability balance at January 1, 2020 was $4.6 million and represented primarily revenue from our fixed fee and subscription contracts. ​ Disaggregation of Revenue ​ The following table presents our revenue disaggregated by geographic area for the three and nine months ended September 30, 2020 and 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ September 30, ​ ​ September 30, Geographic area ​ 2020 2019 ​ 2020 2019 Americas ​ $ 34,968 ​ $ 40,253 ​ ​ 103,422 ​ $ 118,738 Europe ​ ​ 20,928 ​ ​ 22,558 ​ 64,044 ​ ​ 67,562 Asia Pacific ​ ​ 5,739 ​ ​ 5,332 ​ ​ 15,273 ​ ​ 13,962 ​ ​ $ 61,635 ​ $ 68,143 ​ $ 182,739 ​ $ 200,262 ​ Remaining Performance Obligations As of September 30, 2020, the Company had $102.6 million of remaining performance obligations, the majority of which are expected to be satisfied within the next year.

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	9 Months Ended
	Sep. 30, 2020
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE	NOTE 7—NET INCOME PER COMMON SHARE ​ Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that would share in the net income of the Company. For the three and nine months ended September 30, 2020, 1.9 million and 3.7 million restricted stock units, respectively, have not been considered in the diluted earnings per share calculation, as the effect would be anti-dilutive. ​ The following tables set forth the computation of basic and diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2020 2019 2020 2019 Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 2,055 ​ $ 1,731 ​ $ 1,307 ​ $ 1,247 Weighted average common shares ​ 47,880 ​ 47,426 ​ 47,599 ​ 46,704 Earnings per share ​ $ 0.04 ​ $ 0.04 ​ $ 0.03 ​ $ 0.03 Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 2,055 ​ $ 1,731 ​ $ 1,307 ​ $ 1,247 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares ​ 47,880 ​ 47,426 ​ 47,599 ​ 46,704 Potential common shares ​ 2,028 ​ 978 ​ 1,947 ​ 500 Diluted weighted average common shares ​ 49,908 ​ 48,404 ​ 49,546 ​ 47,204 Diluted earnings per share ​ $ 0.04 ​ $ 0.04 ​ $ 0.03 ​ $ 0.03 ​

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2020
INCOME TAXES
INCOME TAXES	NOTE 8—INCOME TAXES ​ The Company’s effective tax rate for the three and nine months ended September 30, 2020 was 9.9% and 57.6% based on pretax income of $2.3 million and $3.1 million, respectively. The Company’s effective tax rate for the quarter ended September 30, 2020 was impacted by the earnings and losses in certain foreign jurisdictions, the impact of a tax law in a foreign jurisdiction, and the impact of vesting of restricted stock units. The Company’s effective tax rate for the three and nine months ended September 30, 2019 was 57.8% and 65.5%. The difference was primarily due to the impact of earnings and losses in certain foreign jurisdictions. The Company has recorded the impact of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) signed into law on March 27, 2020. The CARES Act implemented changes to raise the limitation on interest expense current deductibility and leasehold improvement asset classification for bonus depreciation eligibility, which allowed the Company to reduce prior accruals made for its 2019 income tax provision. The tax effect of these changes total $0.8 million and are included in Prepaid expenses and other current assets and Deferred tax assets; there is no impact on the Company’s effective tax rate for the three and nine months ended September 30, 2020 as a result of the CARES Act.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 9—COMMITMENTS AND CONTINGENCIES ​ The Company is subject to contingencies which arise through the ordinary course of business. All material liabilities of which management is aware are properly reflected in the financial statements at September 30, 2020 and December 31, 2019. ​ Neuralify Contingent Consideration ​

SEGMENT AND GEOGRAPHICAL INFORM

SEGMENT AND GEOGRAPHICAL INFORMATION	9 Months Ended
	Sep. 30, 2020
SEGMENT AND GEOGRAPHICAL INFORMATION
SEGMENT AND GEOGRAPHICAL INFORMATION	NOTE 10—SEGMENT AND GEOGRAPHICAL INFORMATION ​ The Company operates as one reportable segment consisting primarily of fact-based sourcing advisory services. The Company operates principally in the Americas, Europe and Asia Pacific. ​ Geographical revenue information for the segment is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Americas ​ $ 34,968 ​ $ 40,253 ​ $ 103,422 ​ $ 118,738 Europe ​ 20,928 ​ 22,558 ​ 64,044 ​ 67,562 Asia Pacific ​ 5,739 ​ 5,332 ​ 15,273 ​ 13,962 ​ ​ $ 61,635 ​ $ 68,143 ​ $ 182,739 ​ $ 200,262 ​ The segregation of revenues by geographic region is based upon the location of the legal entity performing the services. The Company does not measure or monitor gross profit or operating income by geography or by service line for the purposes of making operating decisions or allocating resources.

FINANCING ARRANGEMENTS AND LONG

FINANCING ARRANGEMENTS AND LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2020
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
FINANCING ARRANGEMENTS AND LONG-TERM DEBT	NOTE 11—FINANCING ARRANGEMENTS AND LONG-TERM DEBT ​ On March 10, 2020, the Company amended and restated its senior secured credit facility to include a $86.0 million term facility and to increase the revolving commitments per the revolving facility (the “2020 Credit Agreement”) from $30.0 million to $54.0 million. The material terms under the 2020 Credit Agreement are as follows: ● Each of the term loan facility and revolving credit facility has a maturity date of March 10, 2025 (the “Maturity Date”). ● The credit facility is secured by all of the equity interests owned by the Company, and its direct and indirect domestic subsidiaries and, subject to agreed exceptions, the Company’s direct and indirect “first-tier” foreign subsidiaries and a perfected first priority security interest in all of the Company’s and its direct and indirect domestic subsidiaries’ tangible and intangible assets. ● The Company’s direct and indirect existing and future wholly owned domestic subsidiaries serve as guarantors to the Company’s obligations under the senior secured facility. ● At the Company’s option, the credit facility bears interest at a rate per annum equal to either (i) the “Base Rate” (which is the highest of (a) the rate publicly announced from time to time by the administrative agent as its “prime rate”, (b) the Federal Funds Rate plus 0.5% per annum and (c) the Eurodollar Rate , plus 1.0%), plus the applicable margin (as defined below) or (ii) Eurodollar Rate (adjusted for maximum reserves) as determined by the Administrative Agent, plus the applicable margin. The applicable margin is adjusted quarterly based upon the Company’s quarterly leverage ratio. ● The term loan is repayable in nineteen consecutive quarterly installments of $1,075,000 each that commenced on June 30, 2020 and a final payment of the outstanding principal amount of the term loan on the Maturity Date. ● Mandatory repayments of term loans shall be required from (subject to agreed exceptions) (i) 100% of the proceeds from asset sales by the Company and its subsidiaries, (ii) 100% of the net proceeds from issuances of debt and equity by the Company and its subsidiaries and (iii) 100% of the net proceeds from insurance recovery and condemnation events of the Company and its subsidiaries. ● The senior secured credit facility contains a number of covenants that, among other things, place restrictions on matters customarily restricted in senior secured credit facilities, including restrictions on indebtedness (including guarantee obligations), liens, fundamental changes, sales or disposition of property or assets, investments (including loans, advances, guarantees and acquisitions), transactions with affiliates, dividends and other payments in respect of capital stock, optional payments and modifications of other material debt instruments, negative pledges and agreements restricting subsidiary distributions and changes in line of business. In addition, the Company is required to comply with a total leverage ratio and fixed charge coverage ratio. ● The senior secured credit facility contains customary events of default, including cross-default to other material agreements, judgment default and change of control. The Company’s financial statements include outstanding borrowings of $79.9 million and $86.9 million at September 30, 2020 and December 31, 2019, respectively, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings is approximately $78.8 million and $86.7 million at September 30, 2020 and December 31, 2019, respectively. The fair values of debt have been estimated using a discounted cash flow rate used to discount ​ As of September 30, 2020, the total principal outstanding under the term loan facility and revolving credit facility was $79.9 million and $0.0 million, respectively. The effective interest rate for the term loan facility and revolving credit facility as of September 30, 2020 was 2.48% and 2.40%, respectively. ​

RISKS AND UNCERTAINTIES

RISKS AND UNCERTAINTIES	9 Months Ended
	Sep. 30, 2020
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES	NOTE 12 - RISKS AND UNCERTAINTIES ​ On March 11, 2020, the World Health Organization declared the coronavirus (COVID-19) a pandemic, following the rapid spread of the disease from where it was first diagnosed, in China, to nations worldwide. The outbreak sparked responses across countries, states and cities worldwide to enforce various measures of social distancing and shelter-in-place orders and temporary closure of non-essential businesses to reduce further transmission of the virus. As a result of these measures, the US and global markets have seen significant disruption, the extent and duration of which remains highly uncertain. ​ The impact of COVID-19 pandemic continues to evolve and, therefore, the Company cannot predict with certainty the extent to which the pandemic will negatively impact our results of operations, cash flows and financial position, liquidity and ability to remain in compliance with our financial covenants. In the third quarter of 2020, the Company experienced a year-over-year revenue decline and this impact is expected to continue through at least the fourth quarter of 2020. Given the uncertainty of the marketplace, the Company has implemented business continuity plans to ensure that the Company is able to remain fully operational with a remote workforce, conducted financial modeling scenarios in order to ensure prudent cost containment, and has proactively implemented a series of cash conservation measures. These measures include actions taken in the second and third quarter of 2020 to reduce personnel costs and other operating expenses, including reductions in staffing and contractor levels, vendor spending, travel, and other measures. ​ The Company has financial covenants underlying its debt which require an adjusted EBITDA to Debt ratio of 3.25 . In light of the pandemic, there is uncertainty regarding the marketplace demand for the Company’s services and thus the Company’s future revenue generation. Accordingly, in light of this uncertainty, the Company has developed plans to further reduce operating expenses to the extent more prolonged revenue shortfalls are experienced which would prevent the Company from complying with its financial covenants. ​ Management's plans would allow the Company to generate sufficient cash flows to reduce the Company's outstanding net debt and enable the Company to comply with the terms of its debt arrangements. Accordingly, the Company believes that based upon current facts and circumstances, its existing cash coupled with the cash flows generated from operations will be sufficient to meet its cash needs for 12 months from the date of issuance of these financial statements.

RESTRUCTURING CHARGES

RESTRUCTURING CHARGES	9 Months Ended
	Sep. 30, 2020
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES	NOTE 13 — RESTRUCTURING CHARGES ​ 2020 Restructuring Plan ​ In the third quarter of 2020, the Company took restructuring actions to lower our operating expenses structurally and permanently relative to revenue and to accelerate the transformation of our business (the “September 2020 Plan”). Most of these actions are based on our recent experience and learning in the COVID-19 pandemic and a resulting review of our operations, which continues to address certain operating expenses such as occupancy expense and salaries and related expenses. ​ A summary of the activity affecting the Company's accrued contractual termination benefit liability for the period ended September 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ September 2020 Plan Balance at June 30, 2020 $ — Amounts accrued ​ 1,362 Amounts paid/incurred ​ (1,069) Balance at September 30, 2020 $ 293 ​ The $1.4 million of net restructuring charges was primarily related to contractual termination benefits, and was recorded in selling, general and administrative expenses. We expect that the remaining actions of the September 2020 Plan will be completed over the next three months .

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates	Use of Estimates ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates. Additionally, ISG has to determine the nature and timing of the satisfaction of performance obligations, the standalone selling price (“SSP”) of certain performance obligations, among other judgments associated with revenue recognition. Numerous internal and external factors can affect estimates. Estimates are also used for (but not limited to): allowance for doubtful accounts; useful lives of furniture, fixtures and equipment and definite-lived intangible assets; depreciation expense; fair value assumptions in analyzing goodwill and other long-lived assets for impairment; income taxes and deferred tax asset valuation; and the valuation of stock-based compensation.
Restricted Cash	Restricted Cash ​ Restricted cash consists of cash and cash equivalents which the Company has committed for rent deposits.
Fair Value	Fair Value ​ The carrying value of the Company’s cash and cash equivalents, receivables, accounts payable, other current liabilities, and accrued interest approximated their fair values at September 30, 2020 and December 31, 2019 due to the short-term nature of these accounts. ​ Fair value measurements were applied with respect to our nonfinancial assets and liabilities measured on a nonrecurring basis, which would consist of measurements primarily to contingent consideration in a business combination. ​ Fair value is the price that would be received upon a sale of an asset or paid upon a transfer of a liability in an orderly transaction between market participants at the measurement date (exit price). Market participants can use market data or assumptions in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or generally unobservable. The use of unobservable inputs is intended to allow for fair value determinations in situations where there is little, if any, market activity for the asset or liability at the measurement date. Under the fair-value hierarchy: ​ ● Level 1 measurements include unadjusted quoted market prices for identical assets or liabilities in an active market; ​ ● Level 2 measurements include quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets; and ​ ● Level 3 measurements include those that are unobservable and of a highly subjective measure. ​ The following tables summarize the assets measured at fair value on a recurring basis at the dates indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basis of Fair Value Measurements ​ ​ ​ September 30, 2020 ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents $ 17 $ — $ — $ 17 ​ Total $ 17 $ — $ — $ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration (1) $ — $ — $ 4,948 $ 4,948 ​ Total $ — $ — $ 4,948 $ 4,948 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basis of Fair Value Measurements ​ ​ ​ December 31, 2019 ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents $ 17 $ — $ — $ 17 ​ Total $ 17 $ — $ — $ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration (1) $ — $ — $ — $ — ​ Total $ — $ — $ — $ — ​ (1) ​ The fair value measurement of this contingent consideration is classified within Level 3 of the fair value hierarchy and reflects the Company’s own assumptions in measuring fair values using the income approach estimates, the Company considered certain performance projections, historical results, and industry trends. This amount was estimated through a valuation model that incorporated probability-weighted assumptions related to the achievement of these milestones and the likelihood of the Company making payments. These cash outflow projections have then been discounted using a rate ​ The following table represents the change in the contingent consideration liability during the nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ ​ 2020 2019 Beginning Balance ​ $ — ​ $ 1,703 ​ Neuralify contingent consideration accrued ​ 4,900 ​ — ​ Payment of contingent consideration ​ — ​ (1,730) ​ Accretion of contingent consideration ​ 48 ​ 30 ​ Unrealized gain (loss) related to currency translation ​ — ​ (3) ​ Ending Balance ​ $ 4,948 ​ $ — ​ ​ The Company’s financial instruments include outstanding borrowings of $79.9 million at September 30, 2020 and $86.9 million at December 31, 2019, which are carried at amortized cost. The fair value of debt is classified within Level 3 of the fair value hierarchy. The fair value of the Company's outstanding borrowings is approximately $78.8 million and $86.7 million at September 30, 2020 and December 31, 2019, respectively. The fair values of debt have been estimated using a discounted cash flow discount ​
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements ​ In June 2016, the FASB issued new guidance on the measurement of credit losses for financial assets measured at amortized cost, which includes accounts receivable, and available-for-sale debt securities. The new guidance replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses and additional disclosures. As a smaller reporting company, this guidance is effective for fiscal years beginning after December 15, 2022. The Company is currently evaluating the potential impact of adopting this guidance on its financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of assets measured at fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basis of Fair Value Measurements ​ ​ ​ September 30, 2020 ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents $ 17 $ — $ — $ 17 ​ Total $ 17 $ — $ — $ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration (1) $ — $ — $ 4,948 $ 4,948 ​ Total $ — $ — $ 4,948 $ 4,948 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basis of Fair Value Measurements ​ ​ ​ December 31, 2019 ​ ​ Level 1 Level 2 Level 3 Total Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash equivalents $ 17 $ — $ — $ 17 ​ Total $ 17 $ — $ — $ 17 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contingent consideration (1) $ — $ — $ — $ — ​ Total $ — $ — $ — $ — ​ (1)
Schedule of change in the contingent consideration liability	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ ​ 2020 2019 Beginning Balance ​ $ — ​ $ 1,703 ​ Neuralify contingent consideration accrued ​ 4,900 ​ — ​ Payment of contingent consideration ​ — ​ (1,730) ​ Accretion of contingent consideration ​ 48 ​ 30 ​ Unrealized gain (loss) related to currency translation ​ — ​ (3) ​ Ending Balance ​ $ 4,948 ​ $ — ​

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2020
ACQUISITIONS
Schedule of consideration transferred and the amounts of identified assets acquired, and liabilities assumed as of the Agreement date	The following table summarizes the consideration transferred to acquire Neuralify, LLC and the amounts of identified assets acquired, and liabilities assumed as of the Agreement date: ​ ​ ​ ​ ​ Cash $ 2,282 Contingent consideration ​ 4,900 Total allocable purchase price ​ $ 7,182 ​ Recognized amounts of identifiable assets acquired and liabilities assumed as of the Agreement date: ​ ​ ​ ​ ​ Accounts receivable ​ $ 226 Contract assets ​ 1 Intangible assets ​ 1,970 Accounts payable ​ (79) Contract liabilities ​ (280) Net assets acquired ​ $ 1,838 ​ ​ ​ ​ Goodwill ​ $ 5,344
Schedule of purchase price assigned to intangible assets and the amortization period	​ ​ ​ ​ ​ ​ ​ ​ Purchase Price Estimated ​ Allocation Useful Lives Amortizable intangible assets: ​ ​ ​ ​ ​ Trademark and trade names ​ $ 240 3 years Software ​ ​ 160 ​ 7 years Customer relationships ​ ​ 1,560 ​ 7 years Noncompete agreements ​ ​ 10 ​ 2 years Total intangible assets ​ $ 1,970 ​ ​

GOODWILL (Tables)

GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2020
GOODWILL
Schedule of changes in the carrying amount of goodwill	​ ​ ​ ​ ​ Balance as of December 31, 2019 $ 85,349 Neuralify Acquisition ​ 5,344 Foreign currency impact ​ 96 Balance as of September 30, 2020 $ 90,789

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2020
REVENUE
Schedule of contract assets and contract liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2020 2019 Contract assets ​ $ 29,569 ​ $ 28,529 Contract liabilities ​ $ 4,546 ​ $ 4,935
Schedule of revenue disaggregated by geographic area	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ September 30, ​ ​ September 30, Geographic area ​ 2020 2019 ​ 2020 2019 Americas ​ $ 34,968 ​ $ 40,253 ​ ​ 103,422 ​ $ 118,738 Europe ​ ​ 20,928 ​ ​ 22,558 ​ 64,044 ​ ​ 67,562 Asia Pacific ​ ​ 5,739 ​ ​ 5,332 ​ ​ 15,273 ​ ​ 13,962 ​ ​ $ 61,635 ​ $ 68,143 ​ $ 182,739 ​ $ 200,262

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	9 Months Ended
	Sep. 30, 2020
NET INCOME PER COMMON SHARE
Schedule of computation of basic and diluted earnings (loss) per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2020 2019 2020 2019 Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 2,055 ​ $ 1,731 ​ $ 1,307 ​ $ 1,247 Weighted average common shares ​ 47,880 ​ 47,426 ​ 47,599 ​ 46,704 Earnings per share ​ $ 0.04 ​ $ 0.04 ​ $ 0.03 ​ $ 0.03 Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 2,055 ​ $ 1,731 ​ $ 1,307 ​ $ 1,247 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted average common shares ​ 47,880 ​ 47,426 ​ 47,599 ​ 46,704 Potential common shares ​ 2,028 ​ 978 ​ 1,947 ​ 500 Diluted weighted average common shares ​ 49,908 ​ 48,404 ​ 49,546 ​ 47,204 Diluted earnings per share ​ $ 0.04 ​ $ 0.04 ​ $ 0.03 ​ $ 0.03

SEGMENT AND GEOGRAPHICAL INFO_2

SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2020
SEGMENT AND GEOGRAPHICAL INFORMATION
Schedule of geographical revenue information for the segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2020 2019 2020 2019 Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Americas ​ $ 34,968 ​ $ 40,253 ​ $ 103,422 ​ $ 118,738 Europe ​ 20,928 ​ 22,558 ​ 64,044 ​ 67,562 Asia Pacific ​ 5,739 ​ 5,332 ​ 15,273 ​ 13,962 ​ ​ $ 61,635 ​ $ 68,143 ​ $ 182,739 ​ $ 200,262

RESTRUCTURING CHARGES (Tables)

RESTRUCTURING CHARGES (Tables)	9 Months Ended
	Sep. 30, 2020
RESTRUCTURING CHARGES
Summary of the activity affecting the Company's accrued contractual termination benefit liability	​ ​ ​ ​ ​ ​ September 2020 Plan Balance at June 30, 2020 $ — Amounts accrued ​ 1,362 Amounts paid/incurred ​ (1,069) Balance at September 30, 2020 $ 293

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Liabilities:
Contingent consideration	$ 4,948	$ 1,703	$ 4,948
Business Combination, Contingent Consideration, Liability, Valuation Technique [Extensible List]			us-gaap:IncomeApproachValuationTechniqueMember
Business Combination, Contingent Consideration, Liability, Measurement Input [Extensible List]			us-gaap:MeasurementInputDiscountRateMember
Contingent consideration, measurement input			0.0250
Change in the contingent consideration liability
Beginning Balance		1,703
Neuralify contingent consideration accrued	4,900
Payment of contingent consideration		(1,730)
Accretion of contingent consideration	48	30
Unrealized gain (loss) related to currency translation		$ (3)
Ending Balance	4,948
Debt instrument, valuation technique, extensible list			us-gaap:ValuationTechniqueDiscountedCashFlowMember
Debt instrument, measurement input, extensible list			us-gaap:MeasurementInputDiscountRateMember
Debt instrument, measurement input			0.0248
Outstanding borrowings			$ 79,900	$ 86,900
Fair value of outstanding borrowing			78,800	86,700
Recurring
Assets:
Cash equivalents			17	17
Total			17	17
Liabilities:
Contingent consideration	4,948		4,948
Total			4,948
Change in the contingent consideration liability
Ending Balance	4,948
Recurring | Level1
Assets:
Cash equivalents			17	17
Total			17	$ 17
Recurring | Level3
Liabilities:
Contingent consideration	4,948		4,948
Total			$ 4,948
Change in the contingent consideration liability
Ending Balance	$ 4,948

ACQUISITION (Details)

ACQUISITION (Details) - USD ($) $ in Thousands	Jul. 08, 2020	Sep. 30, 2020
Business Acquisition [Line Items]
Contingent consideration		$ 4,900
Neuralify acquisition
Business Acquisition [Line Items]
Cash	$ 2,282
Contingent consideration	4,900
Total allocable purchase price	$ 7,182
Term of contingent consideration (in months)	18 months

ACQUISITION - Identified assets

ACQUISITION - Identified assets acquired, and liabilities assumed and acquisition costs (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Jul. 08, 2020	Dec. 31, 2019
Identified assets acquired, and liabilities assumed
Goodwill	$ 90,789		$ 85,349
Neuralify acquisition
Identified assets acquired, and liabilities assumed
Accounts receivable		$ 226
Contract assets		1
Intangible assets		1,970
Accounts payable		(79)
Contract liabilities		(280)
Net assets acquired		1,838
Goodwill		$ 5,344
Neuralify acquisition | Selling, general and administrative expenses
Identified assets acquired, and liabilities assumed
Acquisition related cost	$ 100

ACQUISITION - Amortizable intan

ACQUISITION - Amortizable intangible assets and period (Details) - Neuralify acquisition $ in Thousands	Jul. 08, 2020USD ($)
Amortizable intangible assets:
Total intangible assets	$ 1,970
Trademarks and trade names
Amortizable intangible assets:
Total intangible assets	$ 240
Estimated useful life	3 years
Software
Amortizable intangible assets:
Total intangible assets	$ 160
Estimated useful life	7 years
Customer relationships
Amortizable intangible assets:
Total intangible assets	$ 1,560
Estimated useful life	7 years
Noncompete agreements
Amortizable intangible assets:
Total intangible assets	$ 10
Estimated useful life	2 years

GOODWILL (Details)

GOODWILL (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Changes in the carrying amount of goodwill
Balance at the beginning	$ 85,349
Neuralify Acquisition	5,344
Foreign currency impact	96
Balance at the end	$ 90,789

REVENUE - Contract Balances (De

REVENUE - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
REVENUE
Contract assets	$ 29,569	$ 29,569	$ 28,529
Contract liabilities	4,546	4,546	$ 4,935
Revenue recognized, included in contract liability balance	$ 2,400	$ 4,600

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue
Revenues	$ 61,635	$ 68,143	$ 182,739	$ 200,262
Americas
Revenue
Revenues	34,968	40,253	103,422	118,738
Europe
Revenue
Revenues	20,928	22,558	64,044	67,562
Asia Pacific
Revenue
Revenues	$ 5,739	$ 5,332	$ 15,273	$ 13,962

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) $ in Millions	Sep. 30, 2020USD ($)
REVENUE
Remaining performance obligations	$ 102.6

NET INCOME PER COMMON SHARE - A

NET INCOME PER COMMON SHARE - Antidilutive Securities (Details) - shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Restricted stock units
Antidilutive securities
Securities considered antidilutive (in shares)	1.9	3.7

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic:
Net income	$ 2,055	$ 1,731	$ 1,307	$ 1,247
Weighted average common shares (in shares)	47,880	47,426	47,599	46,704
Earnings per share (in dollars per share)	$ 0.04	$ 0.04	$ 0.03	$ 0.03
Diluted:
Net income	$ 2,055	$ 1,731	$ 1,307	$ 1,247
Basic weighted average common shares (in shares)	47,880	47,426	47,599	46,704
Potential common shares (in shares)	2,028	978	1,947	500
Diluted weighted average common shares (in shares)	49,908	48,404	49,546	47,204
Diluted earnings per share (in dollars per share)	$ 0.04	$ 0.04	$ 0.03	$ 0.03

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
INCOME TAXES
Effective income tax rates (as a percent)	9.90%	57.80%	57.60%	65.50%
Pretax income	$ 2,282	$ 4,104	$ 3,079	$ 3,610
Tax effect	$ 800		$ 800
Impact on effective tax rate	0.00%		0.00%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2018
Contingent Consideration
Contingent consideration	$ 4,948	$ 1,703
Neuralify acquisition | Other liabilities
Contingent Consideration
Contingent consideration	$ 4,900

SEGMENT AND GEOGRAPHICAL INFO_3

SEGMENT AND GEOGRAPHICAL INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)segment	Sep. 30, 2019USD ($)
Segment and geographical information
Number of segments | segment			1
Revenues	$ 61,635	$ 68,143	$ 182,739	$ 200,262
Americas
Segment and geographical information
Revenues	34,968	40,253	103,422	118,738
Europe
Segment and geographical information
Revenues	20,928	22,558	64,044	67,562
Asia Pacific
Segment and geographical information
Revenues	$ 5,739	$ 5,332	$ 15,273	$ 13,962

FINANCING ARRANGEMENTS AND LO_2

FINANCING ARRANGEMENTS AND LONG-TERM DEBT (Details)	Mar. 10, 2020USD ($)installment	Sep. 30, 2020USD ($)	Mar. 09, 2020USD ($)	Dec. 31, 2019USD ($)
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings		$ 79,900,000		$ 86,900,000
Fair value of outstanding borrowing		$ 78,800,000		$ 86,700,000
Debt Instrument, Valuation Technique [Extensible List]		us-gaap:ValuationTechniqueDiscountedCashFlowMember
Debt Instrument, Measurement Input [Extensible List]		us-gaap:MeasurementInputDiscountRateMember
Debt instrument, measurement input		0.0248
Eurodollar Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Interest rate basis	Eurodollar Rate
Term loan facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings		$ 79,900,000
Effective interest rate (as a percent)		2.48%
Revolving facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Outstanding borrowings		$ 0
Effective interest rate (as a percent)		2.40%
2020 Credit Agreement
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Percentage of proceeds from asset sales used for mandatory repayments of the debt	100.00%
Percentage of net proceeds from issuances of debt and equity used for mandatory repayments of the debt	100.00%
Percentage of net proceeds from insurance recovery and condemnation events used for mandatory repayments of the debt	100.00%
2020 Credit Agreement | Federal Funds Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Applicable margin (as a percent)	0.50%
2020 Credit Agreement | Eurodollar Rate
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Applicable margin (as a percent)	1.00%
2020 Credit Agreement | Term loan facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity	$ 86,000,000
Number of quarterly installments | installment	19
Periodic repayment	$ 1,075,000
2020 Credit Agreement | Revolving facility
FINANCING ARRANGEMENTS AND LONG-TERM DEBT
Maximum borrowing capacity	$ 54,000,000		$ 30,000,000

RISKS AND UNCERTAINTIES (Detail

RISKS AND UNCERTAINTIES (Details)	9 Months Ended
	Sep. 30, 2020
RISKS AND UNCERTAINTIES
Adjusted EBITDA to Debt ratio	3.25

RESTRUCTURING CHARGES (Details)

RESTRUCTURING CHARGES (Details) - Contractual termination benefit liability - 2020 Restructuring Plan - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
RESTRUCTURING CHARGES
Amounts accrued	$ 1,362
Amounts paid/incurred	(1,069)
Balance at September 30, 2020	293	$ 293
Restructuring charges	$ 1,362
Term to complete the remaining restructuring actions (in months)		3 months
Selling, general and administrative expenses
RESTRUCTURING CHARGES
Amounts accrued		$ 1,400
Restructuring charges		$ 1,400