Cover
Cover - shares | 9 Months Ended | |
Sep. 25, 2021 | Nov. 04, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | ENGlobal Corporation | |
Entity Central Index Key | 0000933738 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-28 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 25, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Common Stock Shares Outstanding | 35,208,061 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-14217 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 88-0322261 | |
Entity Address Address Line 1 | 11740 Katy Fwy – Energy Tower III | |
Entity Address Address Line 2 | 11th floor | |
Entity Address City Or Town | Houston | |
Entity Address State Or Province | TX | |
Entity Address Postal Zip Code | 77079 | |
Security 12b Title | Common Stock, $0.001 par value | |
Trading Symbol | ENG | |
Security Exchange Name | NASDAQ | |
City Area Code | 281 | |
Local Phone Number | 878-1000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Condensed Consolidated Statements of Operations (Unaudited) | ||||
Operating revenues | $ 5,921 | $ 15,729 | $ 29,449 | $ 52,871 |
Operating costs | 6,735 | 14,585 | 29,177 | 46,014 |
Gross profit (loss) | (814) | 1,144 | 272 | 6,857 |
Selling, general and administrative expenses | 3,089 | 2,174 | 9,914 | 6,621 |
Operating profit (loss) | (3,903) | (1,030) | (9,642) | 236 |
Other income (expense): | ||||
Other income, net | 6,371 | 4 | 8,061 | 6 |
Interest expense, net | (46) | (62) | (161) | (103) |
Income (loss) from operations before income taxes | 2,422 | (1,088) | (1,742) | 139 |
Provision for federal and state income taxes | 21 | 22 | 67 | 80 |
Net income (loss) | $ 2,401 | $ (1,110) | $ (1,809) | $ 59 |
Basic and diluted income (loss) per common share: | $ 0.07 | $ (0.04) | $ (0.06) | $ 0 |
Basic and diluted weighted average shares used in computing income (loss) per share: | 35,159 | 27,507 | 30,776 | 27,529 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 25, 2021 | Dec. 26, 2020 |
Current Assets: | ||
Cash | $ 24,699,000 | $ 13,706,000 |
Trade receivables, net of allowances of $1,673 and $386 | 5,310,000 | 7,789,000 |
Prepaid expenses and other current assets | 217,000 | 891,000 |
Payroll taxes receivable | 3,065,000 | 0 |
Contract assets | 3,655,000 | 4,090,000 |
Total Current Assets | 36,946,000 | 26,476,000 |
Property and equipment, net | 1,117,000 | 1,263,000 |
Goodwill | 720,000 | 720,000 |
Other assets | ||
Right of use asset | 3,179,000 | 1,628,000 |
Deposits and other assets | 375,000 | 351,000 |
Total Other Assets | 3,554,000 | 1,979,000 |
Total Assets | 42,337,000 | 30,438,000 |
Current Liabilities: | ||
Accounts payable | 1,439,000 | 2,138,000 |
Accrued compensation and benefits | 1,963,000 | 3,048,000 |
Current portion of leases | 1,126,000 | 1,541,000 |
Contract liabilities | 664,000 | 1,258,000 |
Current portion of note | 0 | 3,707,000 |
Current portion of deferred payroll tax | 519,000 | 0 |
Other current liabilities | 255,000 | 745,000 |
Total Current Liabilities | 5,966,000 | 12,437,000 |
Deferred payroll tax | 519,000 | 1,037,000 |
Long-term debt | 1,377,000 | 2,733,000 |
Long-term leases | 2,502,000 | 608,000 |
Total Liabilities | 10,364,000 | 16,815,000 |
Stockholders' Equity: | ||
Common stock - $0.001 par value; 75,000,000 shares authorized; 35,208,061 shares issued and outstanding at September 25, 2021 and 27,560,686 shares issued and outstanding at December 26, 2020 | 35,000 | 28,000 |
Additional paid-in capital | 57,309,000 | 37,157,000 |
Accumulated deficit | (25,371,000) | (23,562,000) |
Total Stockholders' Equity | 31,973,000 | 13,623,000 |
Total Liabilities and Stockholders' Equity | $ 42,337,000 | $ 30,438,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 25, 2021 | Sep. 26, 2020 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ (1,809,000) | $ 59,000 |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | ||
Depreciation and amortization | 355,000 | 313,000 |
Share-based compensation expense | 166,000 | 177,000 |
Forgiveness of PPP Loan | (4,974,000) | 0 |
Changes in current assets and liabilities: | ||
Trade accounts receivable | 2,479,000 | (1,268,000) |
Contract assets | 435,000 | 807,000 |
Other current assets | (2,415,000) | 620,000 |
Accounts payable | (699,000) | (177,000) |
Accrued compensation and benefits | (1,085,000) | 883,000 |
Contract liabilities | (594,000) | (2,706,000) |
Income taxes payable | (32,000) | (76,000) |
Other current liabilities, net | (458,000) | (361,000) |
Net cash used in operating activities | (8,631,000) | (1,729,000) |
Cash Flows from Investing Activities: | ||
Property and equipment acquired | (187,000) | (228,000) |
Net cash used in investing activities | (187,000) | (228,000) |
Cash Flows from Financing Activities: | ||
Issuance of common stock, net | 19,993,000 | 0 |
Payments on finance leases | (94,000) | (64,000) |
Proceeds from PPP loan | 0 | 4,937,000 |
Interest on PPP loan | 25,000 | 0 |
Proceeds (payments) from revolving credit facility | (113,000) | 1,476,000 |
Net cash provided by financing activities | 19,811,000 | 6,349,000 |
Net change in cash | 10,993,000 | 4,392,000 |
Cash at beginning of period | 13,706,000 | 8,307,000 |
Cash at end of period | 24,699,000 | 12,699,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 155,000 | 103,000 |
Right of use assets obtained in exchange for new operating lease liability | 2,613,000 | 963,000 |
Cash paid during the period for income taxes (net of refunds) | 151,000 | 16,000 |
Debt issuance costs | 0 | 140,000 |
Leased assets obtained in exchange for new finance lease liabilities | 0 | 219,000 |
Non-cash transaction: PPP loan forgiveness | $ 4,974,000 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance, amount at Dec. 28, 2019 | $ 27,000 | $ 36,934,000 | $ (22,937,000) | |
Net Income (Loss) | $ 59,000 | 59,000 | ||
Share-based compensation - employee | 177,000 | |||
Common stock issued | 1,000 | 0 | ||
Balance, amount at Sep. 26, 2020 | 14,261,000 | 28,000 | 37,111,000 | (22,878,000) |
Balance, amount at Jun. 27, 2020 | 27,000 | 37,066,000 | (21,768,000) | |
Net Income (Loss) | (1,110,000) | (1,110,000) | ||
Share-based compensation - employee | 45,000 | |||
Common stock issued | 1,000 | 0 | ||
Balance, amount at Sep. 26, 2020 | 14,261,000 | 28,000 | 37,111,000 | (22,878,000) |
Balance, amount at Dec. 26, 2020 | 13,623,000 | 28,000 | 37,157,000 | (23,562,000) |
Net Income (Loss) | (1,809,000) | (1,809,000) | ||
Share-based compensation - employee | 166,000 | |||
Common stock issued | 7,000 | 19,986,000 | ||
Balance, amount at Sep. 25, 2021 | 31,973,000 | 35,000 | 57,309,000 | (25,371,000) |
Balance, amount at Jun. 26, 2021 | 28,000 | 57,309,000 | (27,772,000) | |
Net Income (Loss) | 2,401,000 | 2,401,000 | ||
Share-based compensation - employee | 59,000 | |||
Common stock issued | 7,000 | (59,000) | ||
Balance, amount at Sep. 25, 2021 | $ 31,973,000 | $ 35,000 | $ 57,309,000 | $ (25,371,000) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 25, 2021 | |
BASIS OF PRESENTATION | |
NOTE 1 - BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of ENGlobal Corporation (which may be referred to as “ENGlobal,” the “Company,” “we,” “us,” or “our”) were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission. Accordingly, these condensed financial statements do not include all of the information or note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 26, 2020, included in the Company’s 2020 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The condensed financial statements included herein are unaudited for the three month and nine month periods ended September 25, 2021 and September 26, 2020, and in the case of the condensed balance sheet as of December 26, 2020 have been derived from the audited financial statements of the Company. These financial statements reflect all adjustments (consisting of normal recurring adjustments), which are, in the opinion of management, necessary to fairly present the results for the periods presented. The Company has assessed subsequent events through the date of filing of these condensed financial statements with the Securities and Exchange Commission and believes that the disclosures made herein are adequate to make the information presented herein not misleading. We had no items of other comprehensive income in any period presented; therefore, no other components of comprehensive income are presented. Each of our quarters is comprised of 13 weeks. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 9 Months Ended |
Sep. 25, 2021 | |
ACCOUNTING STANDARDS | |
NOTE 2 - ACCOUNTING STANDARDS | NOTE 2 – ACCOUNTING STANDARDS Revenue Recognition A majority of sales of fabrication and assembled systems are under fixed-price contracts. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We generally recognize revenue over time as we perform because of continuous transfer of control to the customer. Our customer typically controls the work in process as evidenced either by contractual termination clauses or by our rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to the Company. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or service to be provided, which measures the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. We generally use the cost-to-cost method on the labor portion of a project for revenue recognition to measure progress of our contracts because it best depicts the transfer of control to the customer which occurs as we consume the materials on the contracts. Therefore, revenues and estimated profits are recorded proportionally as labor costs are incurred. Under the typical payment terms of our fixed-price contracts, the customer pays us progress payments. These progress payments are based on quantifiable measures of performance or on the achievement of specified events or milestones. The customer may retain a small portion of the contract price until completion of the contract. Revenue recognized in excess of billings is recorded as a contract asset on the balance sheet. Amounts billed and due from our customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer should we fail to adequately complete some or all of our obligations under the contract. For some contracts we may receive advance payments from the customer. We record a liability for these advance payments in contract liabilities on the balance sheet. The advance payment typically is not considered a significant financing component because it is used to meet working capital demand that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract. To determine proper revenue recognition for contracts, we evaluate whether two or more contracts should be combined and accounted for as one single performance obligation or whether a single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate a single contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. For most of our contracts, we provide a significant service of integrating a complex set of tasks and components into a single project. Hence, the entire contract is accounted for as one performance obligation. Less commonly, we may provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling price of the promised goods or services underlying each performance obligation and use the expected cost plus margin approach to estimate the standalone selling price of each performance obligation. Due to the nature of the work required to be performed on many of our performance obligations, the estimation of total revenue and cost at completion is complex, subject to variables and requires significant judgment. We estimate variable consideration at the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of our contract modifications are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase or a reduction of revenue) on a cumulative catch-up basis. We have a standard, monthly process in which management reviews the progress and execution of our performance obligations. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule, technical requirements, and other contractual requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation, execution by our subcontractors, the availability and timing of funding from our customer and overhead cost rates, among other variables. Based on this analysis, any adjustments to revenue, operating costs and the related impact to operating income are recognized as necessary in the period they become known. These adjustments may result from positive performance and may result in an increase in operating income during the performance of individual performance obligations if we determine we will be successful in mitigating risks surrounding the technical, schedule and cost aspects of those performance obligations or realizing related opportunities. When estimates of total costs to be incurred exceed total estimates to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss becomes known. Likewise, these adjustments may result in a decrease in operating income if we determine we will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net revenue, operating costs and the related impact to operating income are recognized monthly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a performance obligation’s percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our performance obligations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 25, 2021 | |
REVENUE RECOGNITION | |
NOTE 3 - REVENUE RECOGNITION | NOTE 3 – REVENUE RECOGNITION Our revenue by contract type was as follows (dollars in thousands): For the Three Months Ended For the Nine Months Ended September 25, 2021 September 26, 2020 September 25, 2021 September 26, 2020 Fixed-price revenue $ 2,743 $ 10,863 $ 17,536 $ 28,785 Time-and-material revenue 3,178 4,866 11,913 24,086 Total Revenue 5,921 15,729 29,449 52,871 |
CONTRACT ASSETS AND CONTRACT LI
CONTRACT ASSETS AND CONTRACT LIABILITIES | 9 Months Ended |
Sep. 25, 2021 | |
CONTRACT ASSETS AND CONTRACT LIABILITIES | |
NOTE 4 - CONTRACT ASSETS AND CONTRACT LIABILITIES | NOTE 4 – CONTRACT ASSETS AND CONTRACT LIABILITIES Our contract assets consist of unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Our contract liabilities consist of advance payments and billings in excess of costs incurred. Costs, estimated earnings and billings on uncompleted contracts consisted of the following (dollars in thousands): September 25, 2021 December 26, 2020 Costs incurred on uncompleted contracts $ 34,712 $ 39,154 Estimated earnings on uncompleted contracts 4,958 4,388 Earned revenues 39,670 43,542 Less: billings to date 36,679 40,710 Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts $ 2,991 $ 2,832 Contract assets $ 3,655 $ 4,090 Contract liabilities (664 ) (1,258 ) Net contract assets $ 2,991 $ 2,832 |
DEBT
DEBT | 9 Months Ended |
Sep. 25, 2021 | |
DEBT | |
NOTE 5 - DEBT | NOTE 5 – DEBT The components of debt were as follows (dollars in thousands): September 25, 2021 December 26, 2020 PPP Loan (1) $ — $ 4,949 Revolving Credit Facility (2) 1,377 1,491 Total debt 1,377 6,440 Amount due within one year — 3,707 Total long-term debt $ 1,377 $ 2,733 (1) On April 13, 2020, the Company was granted an unsecured loan (the “PPP Loan”) from Origin Bank in the aggregate principal amount of $4,915,800pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The PPP Loan is evidenced by a promissory note, dated as of April 13, 2020 (the “Note”), by ENGlobal in favor of Origin Bank, as lender. The PPP Loan balance has increased due to accrued interest. On November 30, 2020, our lender, Origin Bank, transmitted our PPP Loan forgiveness application to the U.S. Small Business Administration. On July 12, 2021, we received notification from Origin Bank that the PPP Loan was forgiven in full by the U.S. Small Business Administration at which time the Company recognized the extinguishment of debt as Other Income. (2) On May 21, 2020 (the “Closing Date”), the Company and its wholly owned subsidiaries, ENGlobal U.S., Inc. and ENGlobal Government Services, Inc. (collectively, the “Borrowers”) entered into a Loan and Security Agreement (the “Revolving Credit Facility”) with Pacific Western Bank dba Pacific Western Business Finance, a California state-chartered bank (the “Lender”), pursuant to which the Lender agreed to extend credit to the Borrowers in the form of revolving loans (each a “Loan” and collectively, the “Loans”) in the aggregate amount of up to $6.0 million (the “Maximum Credit Limit”). Set forth below are certain of the material terms of the Revolving Credit Facility: Credit Limit Interest Collateral Maturity: The maturity date is May 20, 2023 and shall be automatically extended for additional periods of one-year each, if written notice of termination is not given by one party to the other at least thirty days prior to the maturity date. Loan Fee Termination Fee Covenants The future scheduled maturities of our debt are (in thousands): Revolving Credit Facility 2021 $ — 2022 — 2023 1,377 Thereafter — Total $ 1,377 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 25, 2021 | |
SEGMENT INFORMATION | |
NOTE 6 - SEGMENT INFORMATION | NOTE 6 – SEGMENT INFORMATION Our segments are strategic business units that offer our services and products to customers in their respective industry segments. The operating performance of our segments is regularly reviewed with operational leaders in charge of these segments, the chief executive officer (“CEO”), the chief financial officer (“CFO”) and others. This group represents the chief operating decision maker (“CODM”) for ENGlobal. We have identified four strategic markets where we have a long history of delivering project solutions and can provide complete project execution. These four targeted markets include: (i) Renewables, (ii) Automation, (iii) Oil, Gas, and Petrochemicals, and (iv) Government Services. Within the Renewables group, our focus is to design and build production facilities for hydrogen and associated products, together with converting existing production facilities to produce products from renewable feedstock sources. These projects often utilize technologies that are more fuel efficient, and therefore reduce the associated carbon footprint of the facility. Our scope of work on these projects will typically include front-end development, engineering, procurement, mechanical fabrication, automation and commissioning services, and may be performed in conjunction with a construction partner. Our Automation group provides the design and programming of automated control systems as well as designs, fabricates, integrates and commissions modular systems that include remote instrumentation control stations, on-line process analytical data, continuous emission monitoring, and electric power distribution. Often these packaged systems are housed in a fabricated metal enclosure, modular building or freestanding metal rack, which are commonly included in our scope of work. We provide automation engineering, procurement, fabrication, systems integration, programing and on-site commissioning services to our clients for both new and existing facilities. Our Oil, Gas, and Petrochemicals group focuses on providing engineering, procurement and automation services as well as fabricated products to downstream refineries and petrochemical facilities as well as midstream pipeline, storage and other transportation related companies. These services are often applied to small capital improvement and maintenance projects within refineries and petrochemical facilities. For our transportation clients, we work on facilities that include pumping, compression, gas processing, metering, storage terminals, product loading and blending systems. In addition, this group designs, programs and maintains supervisory control and data acquisition (“SCADA”) systems for our transportation clients. This group also provides engineering, fabrication and automation services to clients who have operations in the U.S. oil and gas exploration and development markets. The operations are usually associated with the completion, purification, storage and transmission of the oil and gas from the well head to the terminal or pipeline destination. Our Government Services group provides services related to the engineering, design, installation and maintenance of automated fuel handling and tank gauging systems for the U.S. military across the globe. We have two reportable segments: Commercial and Government Services. Our Renewables, Automation, and Oil, Gas, and Petrochemical groups are aggregated into one reportable segment, Commercial. Revenues, operating income, and identifiable assets for each segment are set forth in the following table. The amount identified as Corporate includes those activities that are not allocated to the operating segments and includes costs related to business development, executive functions, finance, accounting, safety, human resources and information technology. The segment information for the three months and nine months ended September 26, 2020 and as of December 26, 2020 has been recast to align with our current reportable segments. Segment information is as follows (dollars in thousands): Commercial Government Services Corporate Consolidated For the three months ended September 25, 2021: Revenue $ 3,935 $ 1,986 $ — $ 5,921 Gross profit (loss) (1,089 ) 275 — (814 ) Gross profit (loss) margin (27.7 )% 13.8 % (13.7 )% SG&A 1,534 280 1,275 3,089 Operating loss (2,623 ) (5 ) (1,275 ) (3,903 ) Other income, net 6,371 Interest expense, net (46 ) Tax expense (21 ) Net income 2,401 Commercial Government Services Corporate Consolidated For the three months ended September 26, 2020: Revenue $ 13,867 $ 1,862 $ — $ 15,729 Gross profit 985 159 — 1,144 Gross profit margin 7.1 % 8.5 % 7.3 % SG&A 826 165 1,183 2,174 Operating income (loss) 159 (6 ) (1,183 ) (1,030 ) Other income, net 4 Interest expense, net (62 ) Tax expense (22 ) Net loss (1,110 ) Commercial Government Services Corporate Consolidated For the nine months ended September 25, 2021: Revenue $ 23,141 $ 6,308 $ — $ 29,449 Gross profit (loss) (375 ) 647 — 272 Gross profit margin (1.6 )% 10.3 % 0.9 % SG&A 5,643 677 3,594 9,914 Operating loss (6,018 ) (30 ) (3,594 ) (9,642 ) Other income, net 8,061 Interest expense, net (161 ) Tax expense (67 ) Net loss (1,809 ) Commercial Government Services Corporate Consolidated For the nine months ended September 26, 2020: Revenue $ 45,180 $ 7,691 $ — $ 52,871 Gross profit 5,740 1,117 — 6,857 Gross profit margin 12.7 % 14.5 % 13.0 % SG&A 2,488 485 3,648 6,621 Operating income (loss) 3,252 632 (3,648 ) 236 Other income, net 6 Interest expense, net (103 ) Tax expense (80 ) Net income 59 Total assets by segment are as follows (dollars in thousands): Total Assets by Segment As of September 25, 2021 As of December 26, 2020 (dollars in thousands) Commercial $ 8,725 $ 11,130 Government Services 3,398 3,151 Corporate 30,214 16,157 Consolidated $ 42,337 $ 30,438 |
FEDERAL AND STATE INCOME TAXES
FEDERAL AND STATE INCOME TAXES | 9 Months Ended |
Sep. 25, 2021 | |
FEDERAL AND STATE INCOME TAXES | |
NOTE 7 - FEDERAL AND STATE INCOME TAXES | NOTE 7 – FEDERAL AND STATE INCOME TAXES The Company accounts for income taxes in accordance with FASB Accounting Standards Codification 740, “Income Taxes” (“ASC 740”). Under ASC 740-270 we estimate an annual effective tax rate based on year-to-date operating results and our projection of operating results for the remainder of the year. We apply this annual effective tax rate to the year-to-date operating results. If our actual results differ from the estimated annual projection, our estimated annual effective tax rate can change affecting the tax expense for successive interim results as well as the estimated annual tax expense results. Certain states are not included in the calculation of the estimated annual effective tax rate because the underlying basis for the tax is related to revenues and not taxable income. Amounts for Texas margin taxes are reported as income tax expense. The Company applies a more likely than not recognition threshold for all tax uncertainties. The FASB guidance for uncertain tax positions only allows the recognition of those tax benefits, based on their technical merits that are greater than 50 percent likelihood of being sustained upon examination by the taxing authorities. Management has reviewed the Company’s tax positions and determined there are no uncertain tax positions requiring recognition in the financial statements. U.S. federal tax returns prior to 2018 and Texas margins tax returns prior to 2017 are closed. Generally, the applicable statues of limitations are three to four years from their filings. The Company recorded income tax expense of $21 thousand for the three months ended September 25, 2021 as compared to income tax expense of $22 thousand for the three months ended September 26, 2020. The effective income tax rate for the three months ended September 25, 2021 was 0.9% as compared to (2.0)% for the three months ended September 26, 2020. The Company recorded income tax expense of $67 thousand for the nine months ended September 25, 2021 as compared to income tax expense of $80 thousand for the nine months ended September 26, 2020. The effective income tax rate for the nine months ended September 25, 2021 was (3.8)% as compared to 57.6% for the nine months ended September 26, 2020. As of September 25, 2021, the Company has a gross federal net operating loss carry-forward of approximately $39.4 million, which will begin to expire in 2032. Under the Tax Cuts and Jobs Act of 2017 ("TCJA"), net operating losses ("NOLs") generated in tax year 2018 and forward have an indefinite carryforward but are limited to 80% of taxable income when utilized. For NOLs incurred in tax year 2017 and prior, the limitation to 80% of taxable income does not apply, but the NOLs are subject to expiration. The provisions were subsequently amended further under the CARES Act on March 27, 2020. The CARES Act amended the net operating loss provisions in the 2017 Tax Cuts and Jobs Act (“TCJA”) and allows for the carryback of NOLs arising in the taxable years ending December 31, 2017 and before January 1, 2021, to each of the five taxable years preceding the taxable year of the loss. Additionally, the 80% limitation related to application of NOLs towards current federal taxable income has been removed for taxable years prior to January 1, 2021; thereby allowing 100% of the NOL to be applied to federal taxable income. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 25, 2021 | |
Commitments and Contingencies (Note 8) | |
NOTE 8 - COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES From time to time, ENGlobal or one or more of its subsidiaries is involved in various legal proceedings or is subject to claims that arise in the ordinary course of business alleging, among other things, claims of breach of contract or negligence in connection with the performance or delivery of goods and/or services. The outcome of any such claims or proceedings cannot be predicted with certainty. Management is not aware of any pending or threatened lawsuits or proceedings that are expected to have a material effect on our financial position, results of operations or liquidity. We carry a broad range of insurance coverage, including general and business automobile liability, commercial property, professional errors and omissions, workers’ compensation insurance, directors’ and officers’ liability insurance and a general umbrella policy, all with standard self-insured retentions/deductibles. We also provide health insurance to our employees (including vision and dental) which is partially self-funded for these claims. Provisions for expected future payments are accrued based on our experience, and specific stop loss levels provide protection for the Company. We believe we have adequate reserves for the self-funded portion of our insurance policies. We are not aware of any material litigation or claims that are not covered by these policies or which are likely to materially exceed the Company’s insurance limits. |
LEASES
LEASES | 9 Months Ended |
Sep. 25, 2021 | |
LEASES | |
NOTE 9 - LEASES | NOTE 9 – LEASES The Company leases land, office space and equipment. Arrangements are assessed at inception to determine if a lease exists and, with the adoption of ASC 842, “Leases,” right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Because the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate at the inception of a lease to calculate the present value of lease payments. The Company has elected to apply the short-term lease exception for all asset classes, excluding lease liabilities from the balance sheet and recognizing the lease payments in the period they are incurred. The components of lease expense were as follows (dollars in thousands): Three Months Ended Nine Months Ended Financial Statement Classification September 25, 2021 September 26, 2020 September 25, 2021 September 26, 2020 Finance leases: Amortization expense SG&A Expense $ 19 $ 26 $ 61 $ 64 Interest expense Interest expense, net 4 5 13 15 Total finance lease expense 23 31 74 79 Operating leases: Operating costs Operating costs 131 135 391 506 Selling, general and administrative expenses SG&A Expense 462 459 1,327 1,364 Total operating lease expense 593 594 1,718 1,870 Total lease expense $ 616 $ 625 $ 1,792 $ 1,949 Supplemental balance sheet information related to leases was as follows (dollars in thousands): Financial Statement Classification September 25, 2021 December 26, 2020 ROU Assets: Operating leases Right of use asset $ 3,179 $ 1,628 Finance leases Property and equipment, net 352 442 Total ROU Assets: $ 3,531 $ 2,070 Lease liabilities: Current liabilities Operating leases Current portion of leases $ 1,013 $ 1,421 Finance leases Current portion of leases 113 120 Noncurrent Liabilities: Operating leases Long-term leases 2,267 286 Finance leases Long-term leases 235 322 Total lease liabilities $ 3,628 $ 2,149 The weighted average remaining lease term and weighted average discount rate were as follows: At September 25, 2021 Weighted average remaining lease term (years) Operating leases 5.3 Finance leases 3.8 Weighted average discount rate Operating leases 1.0 % Finance leases 5.1 % Maturities of operating lease liabilities as of September 25, 2021 are as follows (dollars in thousands): Years ending: Operating leases Finance leases Total 2021 (remaining months) 267 33 300 2022 931 114 1,045 2023 336 93 429 2024 232 73 305 2025 and thereafter 1,541 56 1,597 Total lease payments 3,307 369 3,676 Less: imputed interest (27 ) (21 ) (48 ) Total lease liabilities $ 3,280 $ 348 $ 3,628 |
EMPLOYEE RETENTION CREDIT
EMPLOYEE RETENTION CREDIT | 9 Months Ended |
Sep. 25, 2021 | |
EMPLOYEE RETENTION CREDIT | |
NOTE 10 - EMPLOYEE RETENTION CREDIT | NOTE 10 – EMPLOYEE RETENTION CREDIT Pursuant to the CARES Act, the Company is eligible for an employee retention credit subject to certain criteria. Since there is no US GAAP guidance for for-profit business entities that receive government assistance that is not in the form of a loan, an income tax credit or revenue from a contract with a customer, we determined the appropriate accounting treatment by analogy to other guidance. We accounted for the employee retention credit by analogy to International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, of International Financial Reporting Standards (IFRS). Under an IAS 20 analogy, a business entity would recognize the employee retention credit on a systematic basis over the periods in which the entity recognizes the payroll expenses for which the grant (i.e., tax credit) is intended to compensate when there is reasonable assurance (i.e., it is probable) that the entity will comply with any conditions attached to the grant and the grant (i.e., tax credit) will be received. We have accounted for the $1.7 million and $1.4 million employee retention credits in the first and third quarters of 2021, respectively, as other income on the Statement of Operations and as a receivable on the Balance Sheet. |
STOCKHOLDER'S EQUITY
STOCKHOLDER'S EQUITY | 9 Months Ended |
Sep. 25, 2021 | |
STOCKHOLDER'S EQUITY | |
NOTE 11 - STOCKHOLDER'S EQUITY | NOTE 11 – STOCKHOLDERS’ EQUITY On January 29, 2021, the Company entered into an at market issuance sales agreement (the “ATM Agreement”) with B. Riley Securities, Inc. pursuant to which the Company may offer and sell shares of the Company’s common stock having an aggregate offering price of up to $25 million to or through B. Riley, as sales agent, from time to time, in an “at the market offering”. Under the ATM Agreement, the Company will pay B. Riley an aggregate commission of 3% of the gross sales price per share of common stock sold under the ATM Agreement. The Company is not obligated to make any sales under the ATM Agreement and any determination by the Company to do so will be dependent, among other things, on market conditions and the Company’s capital raising needs. In April 2021, 400,538 shares of common stock were issued pursuant to the ATM Agreement for net proceeds of approximately $1.4 million. On June 1, 2021, the Company entered into a securities purchase agreement (the “Purchase Agreement”) pursuant to which the Company sold and issued an aggregate of 7,142,859 shares of the Company’s common stock to certain institutional investors at an offering price of $2.80 per share in a registered direct offering priced at-the-market under NASDAQ rules for net proceeds of approximately $18.7 million after deducting the fees of A.G.P./Alliance Global Partners, the placement agent, and related offering expenses of approximately $1.3 million. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
REVENUE RECOGNITION (Tables) | |
Schedule of Revenue by contract type | For the Three Months Ended For the Nine Months Ended September 25, 2021 September 26, 2020 September 25, 2021 September 26, 2020 Fixed-price revenue $ 2,743 $ 10,863 $ 17,536 $ 28,785 Time-and-material revenue 3,178 4,866 11,913 24,086 Total Revenue 5,921 15,729 29,449 52,871 |
CONTRACT ASSETS AND CONTRACT _2
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | |
Schedule of Costs, estimated earnings and billings on uncompleted contracts | September 25, 2021 December 26, 2020 Costs incurred on uncompleted contracts $ 34,712 $ 39,154 Estimated earnings on uncompleted contracts 4,958 4,388 Earned revenues 39,670 43,542 Less: billings to date 36,679 40,710 Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts $ 2,991 $ 2,832 Contract assets $ 3,655 $ 4,090 Contract liabilities (664 ) (1,258 ) Net contract assets $ 2,991 $ 2,832 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
DEBT | |
Schedule of Debt | September 25, 2021 December 26, 2020 PPP Loan (1) $ — $ 4,949 Revolving Credit Facility (2) 1,377 1,491 Total debt 1,377 6,440 Amount due within one year — 3,707 Total long-term debt $ 1,377 $ 2,733 |
Schedule of Maturities of debt | Revolving Credit Facility 2021 $ — 2022 — 2023 1,377 Thereafter — Total $ 1,377 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
SEGMENT INFORMATION | |
Schedule of Segment information | Commercial Government Services Corporate Consolidated For the three months ended September 25, 2021: Revenue $ 3,935 $ 1,986 $ — $ 5,921 Gross profit (loss) (1,089 ) 275 — (814 ) Gross profit (loss) margin (27.7 )% 13.8 % (13.7 )% SG&A 1,534 280 1,275 3,089 Operating loss (2,623 ) (5 ) (1,275 ) (3,903 ) Other income, net 6,371 Interest expense, net (46 ) Tax expense (21 ) Net income 2,401 Commercial Government Services Corporate Consolidated For the three months ended September 26, 2020: Revenue $ 13,867 $ 1,862 $ — $ 15,729 Gross profit 985 159 — 1,144 Gross profit margin 7.1 % 8.5 % 7.3 % SG&A 826 165 1,183 2,174 Operating income (loss) 159 (6 ) (1,183 ) (1,030 ) Other income, net 4 Interest expense, net (62 ) Tax expense (22 ) Net loss (1,110 ) Commercial Government Services Corporate Consolidated For the nine months ended September 25, 2021: Revenue $ 23,141 $ 6,308 $ — $ 29,449 Gross profit (loss) (375 ) 647 — 272 Gross profit margin (1.6 )% 10.3 % 0.9 % SG&A 5,643 677 3,594 9,914 Operating loss (6,018 ) (30 ) (3,594 ) (9,642 ) Other income, net 8,061 Interest expense, net (161 ) Tax expense (67 ) Net loss (1,809 ) Commercial Government Services Corporate Consolidated For the nine months ended September 26, 2020: Revenue $ 45,180 $ 7,691 $ — $ 52,871 Gross profit 5,740 1,117 — 6,857 Gross profit margin 12.7 % 14.5 % 13.0 % SG&A 2,488 485 3,648 6,621 Operating income (loss) 3,252 632 (3,648 ) 236 Other income, net 6 Interest expense, net (103 ) Tax expense (80 ) Net income 59 |
Schedule of assets by segment | Total Assets by Segment As of September 25, 2021 As of December 26, 2020 (dollars in thousands) Commercial $ 8,725 $ 11,130 Government Services 3,398 3,151 Corporate 30,214 16,157 Consolidated $ 42,337 $ 30,438 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 25, 2021 | |
LEASES | |
Schedule of Lease expense | Three Months Ended Nine Months Ended Financial Statement Classification September 25, 2021 September 26, 2020 September 25, 2021 September 26, 2020 Finance leases: Amortization expense SG&A Expense $ 19 $ 26 $ 61 $ 64 Interest expense Interest expense, net 4 5 13 15 Total finance lease expense 23 31 74 79 Operating leases: Operating costs Operating costs 131 135 391 506 Selling, general and administrative expenses SG&A Expense 462 459 1,327 1,364 Total operating lease expense 593 594 1,718 1,870 Total lease expense $ 616 $ 625 $ 1,792 $ 1,949 |
Schedule of Supplemental balance sheet information related to leases | Financial Statement Classification September 25, 2021 December 26, 2020 ROU Assets: Operating leases Right of use asset $ 3,179 $ 1,628 Finance leases Property and equipment, net 352 442 Total ROU Assets: $ 3,531 $ 2,070 Lease liabilities: Current liabilities Operating leases Current portion of leases $ 1,013 $ 1,421 Finance leases Current portion of leases 113 120 Noncurrent Liabilities: Operating leases Long-term leases 2,267 286 Finance leases Long-term leases 235 322 Total lease liabilities $ 3,628 $ 2,149 |
Schedule of Weighted average remaining lease term and weighted average discount rate | At September 25, 2021 Weighted average remaining lease term (years) Operating leases 5.3 Finance leases 3.8 Weighted average discount rate Operating leases 1.0 % Finance leases 5.1 % |
Schedule of Maturities of operating lease liabilities | Years ending: Operating leases Finance leases Total 2021 (remaining months) 267 33 300 2022 931 114 1,045 2023 336 93 429 2024 232 73 305 2025 and thereafter 1,541 56 1,597 Total lease payments 3,307 369 3,676 Less: imputed interest (27 ) (21 ) (48 ) Total lease liabilities $ 3,280 $ 348 $ 3,628 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Total revenue | $ 5,921 | $ 15,729 | $ 29,449 | $ 52,871 |
Fixed-Price Revenue | ||||
Total revenue | 2,743 | 10,863 | 17,536 | 28,785 |
Time-and-Material Revenue | ||||
Total revenue | $ 3,178 | $ 4,866 | $ 11,913 | $ 24,086 |
CONTRACT ASSETS AND CONTRACT _3
CONTRACT ASSETS AND CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 |
CONTRACT ASSETS AND CONTRACT LIABILITIES (Tables) | ||
Costs incurred on uncompleted contracts | $ 34,712 | $ 39,154 |
Estimated earnings on uncompleted contracts | 4,958 | 4,388 |
Earned revenues | 39,670 | 43,542 |
Less: billings to date | 36,679 | 40,710 |
Net costs and estimated earnings in excess of billings (billings in excess of costs) on uncompleted contracts | 2,991 | 2,832 |
Contract assets | 3,655 | 4,090 |
Contract liabilities | (664) | (1,258) |
Net contract assets | $ 2,991 | $ 2,832 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 |
DEBT | ||
PPP loan | $ 0 | $ 4,949 |
Revolving credit facility | 1,377 | 1,491 |
Total debt | 1,377 | 6,440 |
Amount due within one year | 0 | 3,707 |
Total long-term debt | $ 1,377 | $ 2,733 |
DEBT (Details 1)
DEBT (Details 1) - USD ($) | Sep. 25, 2021 | Dec. 26, 2020 |
Long-term debt | $ 1,377,000 | $ 6,440,000 |
Revolving Credit Facility | ||
2021 | 0 | |
2022 | 0 | |
2023 | 1,377,000 | |
Thereafter | 0 | |
Long-term debt | $ 1,377,000 |
DEBT (Details Narrative)
DEBT (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 25, 2021 | May 21, 2020 | Apr. 13, 2020 | |
Interest rate per annum | 2.00% | ||
Interest per month | $ 7,500 | ||
Loan fee percentage | 1.00% | ||
Revolving Credit Facility | |||
Borrowers accounts percentage | 85.00% | ||
Borrowering unbilled account percentage | 75.00% | ||
Borrowers Unbilled Accounts | $ 3,000,000 | ||
Borrowers fixed price accounts percentages | 20.00% | ||
Borrowers fixed price accounts amount | $ 250,000 | ||
Credit limit under the Revolving Credit Facility | $ 1,700,000 | ||
Termination first anniversary rate | 1.00% | ||
Termination fee percentage | 2.00% | ||
Termination second anniversary rate | 0.05% | ||
ENGlobal U S [Member] | |||
Borrowers of revolving loan | $ 6,000,000 | ||
PPP Loan | |||
Granted an unsecured loan | $ 4,915,800 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | Dec. 26, 2020 | |
Revenue | $ 5,921,000 | $ 15,729,000 | $ 29,449,000 | $ 52,871,000 | |
Gross profit (loss) | $ (814,000) | $ 1,144,000 | $ 272,000 | $ 6,857,000 | |
Gross profit margin | 13.70% | 7.30% | 0.90% | 13.00% | |
SG&A | $ 3,089,000 | $ 2,174,000 | $ 9,914,000 | $ 6,621,000 | |
Operating income (loss) | (3,903,000) | (1,030,000) | (9,642,000) | 236,000 | |
Other income, net | 6,371,000 | 4,000 | 8,061,000 | 6,000 | |
Interest expense, net | (46,000) | (62,000) | (161,000) | (103,000) | |
Tax expense | (21,000) | (22,000) | (67,000) | (80,000) | |
Net Income (Loss) | 2,401,000 | (1,110,000) | (1,809,000) | 59,000 | |
Total assets | 42,337,000 | 42,337,000 | $ 30,438,000 | ||
Commercial | |||||
Revenue | 3,935,000 | 13,867,000 | 23,141,000 | 45,180,000 | |
Gross profit (loss) | $ (1,089,000) | $ 985,000 | $ (375,000) | $ 5,740,000 | |
Gross profit margin | (27.70%) | 7.10% | (1.60%) | 12.70% | |
SG&A | $ 1,534,000 | $ 826,000 | $ 5,643,000 | $ 2,488,000 | |
Operating income (loss) | (2,623,000) | 159,000 | (6,018,000) | 3,252,000 | |
Total assets | 8,725,000 | 8,725,000 | 11,130,000 | ||
Government Services | |||||
Revenue | 1,986,000 | 1,862,000 | 6,308,000 | 7,691,000 | |
Gross profit (loss) | $ 275,000 | $ 159,000 | $ 647,000 | $ 1,117,000 | |
Gross profit margin | 13.80% | 8.50% | 10.30% | 14.50% | |
SG&A | $ 280,000 | $ 165,000 | $ 677,000 | $ 485,000 | |
Operating income (loss) | (5,000) | (6,000) | (30,000) | 632,000 | |
Total assets | 3,398,000 | 3,398,000 | 3,151,000 | ||
Corporate | |||||
Revenue | 0 | 0 | 0 | 0 | |
Gross profit (loss) | 0 | 0 | 0 | 0 | |
SG&A | 1,275,000 | 1,183,000 | 3,594,000 | 3,648,000 | |
Operating income (loss) | (1,275,000) | $ (1,183,000) | (3,594,000) | $ (3,648,000) | |
Total assets | $ 30,214,000 | $ 30,214,000 | $ 16,157,000 |
SEGMENT INFORMATION (Details Na
SEGMENT INFORMATION (Details Narrative) | 9 Months Ended |
Sep. 25, 2021integer | |
SEGMENT INFORMATION | |
Number of reportable segments | 2 |
FEDERAL AND STATE INCOME TAXES
FEDERAL AND STATE INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
FEDERAL AND STATE INCOME TAXES (Details Narrative) | ||||
Provision for federal and state income taxes | $ 21 | $ 22 | $ 67 | $ 80 |
Effective income tax rate | 0.90% | (2.00%) | (3.80%) | 57.60% |
Threshold for uncertain tax positions tax benefits description | The Company applies a more likely than not recognition threshold for all tax uncertainties. The FASB guidance for uncertain tax positions only allows the recognition of those tax benefits, based on their technical merits that are greater than 50 percent likelihood of being sustained upon examination by the taxing authorities. |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 25, 2021 | Sep. 26, 2020 | Sep. 25, 2021 | Sep. 26, 2020 | |
Total finance lease expense | $ 23 | $ 31 | $ 74 | $ 79 |
Total operating lease expense | 593 | 594 | 1,718 | 1,870 |
Total lease expense | 616 | 625 | 1,792 | 1,949 |
SG&A Expense | ||||
Total finance lease expense | 19 | 26 | 61 | 64 |
Total operating lease expense | 462 | 459 | 1,327 | 1,364 |
Interest Expense, Net | ||||
Total finance lease expense | 4 | 5 | 13 | 15 |
Operating Costs | ||||
Total operating lease expense | $ 131 | $ 135 | $ 391 | $ 506 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Thousands | Sep. 25, 2021 | Dec. 26, 2020 |
ROU assets | $ 3,531 | $ 2,070 |
Current lease liabilities - operating leases | 1,013 | 1,421 |
Current lease liabilities - finance leases | 113 | 120 |
Noncurrent lease liabilities - operating leases | 2,267 | 286 |
Noncurrent lease liabilities - finance leases | 235 | 322 |
Total lease liabilities | 3,628 | 2,149 |
ROU assets - operating leases | 3,179 | 1,628 |
Property, Plant and Equipment [Member] | ||
ROU assets - finance leases | 352 | 442 |
Right of Use Asset | ||
ROU assets - operating leases | $ 3,179 | $ 1,628 |
LEASES (Details 2)
LEASES (Details 2) | 9 Months Ended |
Sep. 25, 2021 | |
LEASES | |
Weighted average remaining lease term (years) - operating leases | 5 years 3 months 18 days |
Weighted average remaining lease term (years) - finance leases | 3 years 9 months 18 days |
Weighted average discount rate - operating leases | 1.00% |
Weighted average discount rate - finance leases | 5.10% |
LEASES (Details 3)
LEASES (Details 3) - USD ($) | Sep. 25, 2021 | Dec. 26, 2020 |
Operating Leases | ||
2021 (remaining months) | $ 267,000 | |
2022 | 931,000 | |
2023 | 336 | |
2024 | 232 | |
2025 and thereafter | 1,541 | |
Total lease payments | 3,307,000 | |
Less: imputed interest | (27,000) | |
Total lease liabilities | 3,280,000 | |
Finance Leases | ||
2021 (remaining months) | 33,000 | |
2022 | 114,000 | |
2023 | 93,000 | |
2024 | 73,000 | |
2025 and thereafter | 56,000 | |
Total lease payments | 369,000 | |
Less: imputed interest | (21,000) | |
Total lease liabilities | 348,000 | |
Total | ||
2021 (remaining months) | 300,000 | |
2022 | 1,045,000 | |
2023 | 429,000 | |
2024 | 305,000 | |
2025 and thereafter | 1,597,000 | |
Total lease payments | 3,676,000 | |
Less: imputed interest | 48,000 | |
Total lease liabilities | $ 3,628,000 | $ 2,149,000 |
EMPLOYEE RETENTION CREDIT (Deta
EMPLOYEE RETENTION CREDIT (Details Narrative) - USD ($) $ in Millions | Sep. 25, 2021 | Mar. 27, 2021 |
EMPLOYEE RETENTION CREDIT (Details Narrative) | ||
Employee retention credit | $ 1.4 | $ 1.7 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |||
Sep. 25, 2021 | Jun. 01, 2021 | Apr. 30, 2021 | Jan. 29, 2021 | |
ATM Agreement [Member] | ||||
Stock issued | 400,538 | |||
Proceeds from stock issued | $ 1.4 | |||
ATM Agreement [Member] | B. Riley Securities [Member] | ||||
Maximum offering price of common stock | $ 25 | |||
Percentage of gross sale price commission | 3.00% | |||
Purchase Agreement [Member] | ||||
Stock issued | 7,142,859 | |||
Proceeds from stock issued | 18.7 | |||
Offering price | $ 2.80 | |||
Proffessional fees | $ 1.3 |