Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 24, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GSE SYSTEMS INC | ||
Entity Central Index Key | 944,480 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 27,315,219 | ||
Entity Common Stock, Shares Outstanding | 17,911,859 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 11,084 | $ 13,583 |
Restricted cash | 1,771 | 613 |
Contract receivables, net | 13,053 | 15,768 |
Prepaid expenses and other current assets | 2,506 | 1,994 |
Total current assets | 28,414 | 31,958 |
Equipment, software and leasehold improvements | 7,003 | 7,055 |
Accumulated depreciation | 5,407 | 5,229 |
Equipment, software and leasehold improvements, net | 1,596 | 1,826 |
Software development costs, net | 1,145 | 1,414 |
Goodwill | 5,612 | 5,612 |
Intangible assets, net | 775 | 1,279 |
Long-term restricted cash | 1,779 | 3,591 |
Other assets | 50 | 548 |
Total assets | 39,371 | 46,228 |
Current liabilities | ||
Long-term Line of Credit | 0 | 339 |
Accounts payable | 1,238 | 2,330 |
Accrued expenses | 1,723 | 1,554 |
Accrued compensation and payroll taxes | 2,431 | 2,595 |
Billings in excess of revenue earned | 9,229 | 9,915 |
Accrued warranty | 1,614 | 1,456 |
Current contingent consideration | 2,647 | 2,842 |
Other current liabilities | 826 | 473 |
Total current liabilities | 19,708 | 21,504 |
Contingent consideration | 1,085 | 1,948 |
Other liabilities | 210 | 38 |
Total liabilities | 21,003 | 23,490 |
Stockholder's equity | ||
Preferred stock $.01 par value, 2,000,000 shares authorized, no shares issued or outstanding at December 31, 2015 and 2014 | 0 | 0 |
Common stock $.01 par value, 30,000,000 shares authorized, 19,510,770 shares issued and 17,911,859 shares outstanding at December 31, 2015, 19,486,770 shares issued and 17,887,859 shares outstanding at December 31, 2014 | 195 | 195 |
Additional paid-in capital | 73,481 | 72,917 |
Accumulated deficit | (50,849) | (46,144) |
Accumulated other comprehensive loss | (1,460) | (1,231) |
Treasury stock at cost, 1,598,911 shares in 2015 and 2014 | 2,999 | 2,999 |
Total stockholders' equity | 18,368 | 22,738 |
Total liabilities and stockholders' equity | $ 39,371 | $ 46,228 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholder's equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 19,510,770 | 19,486,770 |
Common Stock, Shares, Outstanding | 17,911,859 | 17,887,859 |
Treasury stock at cost (in shares) | 1,598,911 | 1,598,911 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Contract revenue | $ 56,803 | $ 37,536 |
Cost of revenue | 42,406 | 26,744 |
Write-down of capitalized software development costs | (1,538) | 0 |
Gross profit | 12,859 | 10,792 |
Operating expenses | ||
Selling, general and administrative | 14,217 | 16,306 |
Business Exit Costs | 1,791 | 1,264 |
Depreciation | 493 | 545 |
Amortization of definite-lived intangible assets | 494 | 193 |
Total operating expenses | 16,995 | 18,308 |
Operating loss | (4,136) | (7,516) |
Interest income, net | 88 | 143 |
Gain (loss) on derivative instruments, net | (40) | 209 |
Other income (expense), net | (146) | 1 |
Loss before income taxes | (4,234) | (7,163) |
Provision for income taxes | 471 | 166 |
Net loss | $ (4,705) | $ (7,329) |
Basic loss per common share | $ (0.26) | $ (0.41) |
Diluted loss per common share | $ (0.26) | $ (0.41) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||
Net loss | $ (4,705) | $ (7,329) |
Foreign currency translation adjustment | (229) | (617) |
Comprehensive loss | $ (4,934) | $ (7,946) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2013 | $ 195 | $ 72,205 | $ (38,815) | $ (614) | $ (2,999) | $ 29,972 |
Balance (in shares) at Dec. 31, 2013 | 19,486,770 | (1,598,911) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 712 | 712 | ||||
Net issuances of stock pursuant to stock compensation plans | $ 0 | 0 | 0 | |||
Net issuances of stock pursuant to stock compensation plans (in shares) | 0 | |||||
Foreign currency translation adjustment | (617) | (617) | ||||
Non-cash income tax adjustment | 0 | 0 | ||||
Treasury stock at cost | $ 0 | 0 | ||||
Treasury stock at cost (in shares) | 0 | |||||
Net loss | (7,329) | (7,329) | ||||
Balance at Dec. 31, 2014 | $ 195 | 72,917 | (46,144) | (1,231) | $ (2,999) | $ 22,738 |
Balance (in shares) at Dec. 31, 2014 | 19,486,770 | (1,598,911) | 17,887,859 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 526 | $ 526 | ||||
Common stock issued for options exercised (in shares) | 14,000 | |||||
Common stock issued for options exercised | 23 | 23 | ||||
Common stock issued for services provided (in shares) | 10,000 | |||||
Common stock issued for services provided | 15 | 15 | ||||
Foreign currency translation adjustment | (229) | (229) | ||||
Net loss | (4,705) | (4,705) | ||||
Balance at Dec. 31, 2015 | $ 195 | $ 73,481 | $ (50,849) | $ (1,460) | $ (2,999) | $ 18,368 |
Balance (in shares) at Dec. 31, 2015 | 19,510,770 | (1,598,911) | 17,911,859 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | ||
Net loss | $ (4,705) | $ (7,329) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Write-down of capitalized software development costs | (1,538) | 0 |
Depreciation | 493 | 545 |
Amortization of definite-lived intangible assets | 494 | 193 |
Capitalized software amortization | (341) | (252) |
Change in fair value of contingent consideration | 849 | 229 |
Stock-based compensation expense | 541 | 712 |
Equity loss on investments | (233) | (55) |
Gain (loss) on derivative instruments, net | (40) | 209 |
Deferred income taxes | 171 | (22) |
Changes in assets and liabilities | ||
Contract receivables, net | (2,530) | (10,347) |
Prepaid expenses and other assets | 501 | (2,433) |
Accounts payable, accrued compensation and accrued expenses | (947) | (2,136) |
Billings in excess of revenue earned | (552) | 2,441 |
Accrued warranty reserves | 171 | (395) |
Other liabilities | 320 | (467) |
Net cash provided by operating activities | 1,016 | 6,649 |
Cash flows from investing activities | ||
Capital expenditures | 277 | 398 |
Capitalized Software Development Costs | 1,610 | 646 |
Payments to Acquire Equity Method Investments | 0 | 250 |
Acquisition of Hyperspring, LLC, net of cash acquired | 0 | 2,848 |
Restrictions of cash as collateral under letters of credit | 1,222 | 3,172 |
Releases of cash as collateral under letters of credit | 1,876 | 34 |
Net cash used in investing activities | (1,233) | (7,280) |
Cash flows from financing activities | ||
Proceeds from (Repayments of) Lines of Credit | (339) | (410) |
Proceeds from issuance of common stock | 23 | 0 |
Payments of the liability-classified contingent consideration arrangements | 1,700 | 500 |
Net cash used in financing activities | (2,016) | (910) |
Effect of exchange rate changes on cash | (266) | (519) |
Net decrease in cash and cash equivalents | (2,499) | (2,060) |
Cash and cash equivalents at beginning of year | 13,583 | 15,643 |
Cash and cash equivalents at end of period | $ 11,084 | $ 13,583 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Business and Basis of Presentation [Abstract] | |
Business and Basis of Presentation | 1. Business and Basis of Presentation GSE Systems, Inc. ("GSE Systems", "GSE" or the "Company") improves human performance through a series of technologies and services that systematically helps clients with everything from recruiting and selecting the right person for the job to training that individual throughout their career from entry-level to expert. The Company improves plant performance with a combination of engineering, simulation and plant services that help clients get their plants producing revenue faster, running them safely and responsibly decommissioning them. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Investments in partnerships, joint ventures, and less-than-majority owned subsidiaries in which the Company has significant influence are accounted for under the equity method. Revisions Historically, the Company recognized revenue on multiple element arrangements which included sales of its EnVision software product as delivery occurred on each element except post contract support ("PCS"). PCS revenue was recognized ratably over the PCS term. During the fourth quarter of 2015, management determined that that Company had not established vendor specific objective evidence ("VSOE") of the fair value for any of the elements in multiple element transactions including sales of its EnVision software licenses. Accordingly, the consolidated financial statements have been revised to recognize all revenue on multiple element transactions including EnVision software license sales ratably over the PCS terms on these transactions since VSOE did not exist for any of the non-software elements in these multiple element transactions. The revision to revenue resulted in a decrease to revenue and an increase in operating loss of $587,000 for the year ended December 31, 2014. The revision also had the effect of increasing billings in excess by $1.2 million, decreasing unbilled receivables by $62,000, increasing prepaid expenses and other current assets by $291,000 and increasing the accumulated deficit by $415,000 at December 31, 2014as a result of the cumulative adjustment for prior periods. Certain prior year amounts have also been revised in the consolidated statements of cash flows to reflect the corrections to Net loss and changes in billings in excess, prepaid expenses and other assets. The revision had no impact on cash provided by operations or the net decrease in cash and cash equivalents. The Company assessed the materiality of these misstatements on prior periods' consolidated financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality Accounting Changes and Error Corrections Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements The following are selected line items from the Company's consolidated financial statements illustrating the effect of these corrections. GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2014 As Reported Adjustment As Revised ASSETS Contract receivables, net $ 15,830 $ (62 ) $ 15,768 Prepaid expenses and other current assets 1,703 291 1,994 Total currents assets 31,729 229 31,958 Total assets $ 45,999 $ 229 $ 46,228 LIABILITIES AND STOCKHOLDERS' EQUITY Billings in excess of revenue earned $ 8,684 $ 1,231 $ 9,915 Total current liabilities $ 20,273 $ 1,231 $ 21,504 Total liabilities $ 22,259 $ 1,231 $ 23,490 Accumulated deficit $ (45,142 ) $ (1,002 ) $ (46,144 ) Total stockholders' equity $ 23,740 $ (1,002 ) $ 22,738 Total liabilities and stockholders' equity $ 45,999 $ 229 $ 46,228 GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31, 2014 As Reported Adjustment As Revised Contract revenue $ 37,930 $ (394 ) $ 37,536 Cost of revenue 26,551 193 26,744 Gross profit 11,379 (587 ) 10,792 Operating loss (6,929 ) (587 ) (7,516 ) Loss before income taxes (6,576 ) (587 ) (7,163 ) Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Basic loss per common share $ (0.38 ) $ (0.03 ) $ (0.41 ) Diluted loss per common share $ (0.38 ) $ (0.03 ) $ (0.41 ) GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) Year ended December 31, 2014 (in thousands) As Reported Adjustment As Revised Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Comprehensive loss $ (7,359 ) $ (587 ) $ (7,946 ) GSE SYSTEMS, INC, AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands) Accumulated Deficit Total Stockholders' Equity As Reported Adjustment As Revised As Reported Adjustment As Revised Balance, December 31, 2013 $ (38,400 ) $ (415 ) $ (38,815 ) $ 30,387 $ (415 ) $ 29,972 Net loss (6,742 ) (587 ) (7,329 ) (6,742 ) (587 ) (7,329 ) Balance, December 31, 2014 $ (45,142 ) $ (1,002 ) $ (46,144 ) $ 23,740 $ (1,002 ) $ 22,738 GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2014 As Reported Adjustment As Revised Cash flows from operating activities: Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Changes in assets and liabilities: Contract receivables, net 10,285 62 10,347 Prepaid expenses and other assets 2,240 193 2,433 Billings in excess of revenue earned 2,109 332 2,441 Net cash provided by operating activities $ 6,649 $ - $ 6,649 Net decrease in cash and cash equivalents $ (2,060 ) $ - $ (2,060 ) Accounting estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates the estimates used, including but not limited to those related to revenue recognition, the allowance for doubtful accounts, estimates of future warranty costs, impairments of goodwill and other intangible assets and contingent consideration to be paid in business acquisitions, valuation of stock based compensation awards, and income taxes. Actual results could differ from these estimates. Revenue recognition The Company recognizes revenue through (1) fixed price contracts on the sale of uniquely designed/customized systems containing hardware, software and other materials which apply only to the Performance Improvement Solutions segment as well as (2) time and material contracts primarily through Nuclear Industry Training and Consulting support and service agreements. In accordance with ASC 605-35 , Construction-Type and Production-Type Contracts ) Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project. As the Company recognizes revenue under the percentage-of-completion method, it provides an accrual for estimated future warranty costs based on historical and projected claims experience. The Company's long-term contracts generally provide for a one-year warranty on parts, labor and any bug fixes as it relates to customized software embedded in the systems. The Company's system design contracts do not normally provide for "post contract support" ("PCS") in terms of software upgrades, software enhancements or telephone support. In order to obtain PCS, the customers must normally purchase a separate contract. Such PCS arrangements are generally for a one-year period renewable annually and include customer support, unspecified software upgrades, and maintenance releases. The Company recognizes revenue from these contracts ratably over the life of the agreements. Revenue from the sale of software licenses without other elements in the contract and which do not require significant modifications or customization for the Company's modeling tools are recognized when the license agreement is signed, the license fee is fixed and determinable, delivery has occurred, and collection is considered probable. We utilize written contracts as a means to establish the terms and conditions by which products support and services are sold to customers. Delivery is considered to have occurred when title and risk of loss have been transferred to the customer, which generally occurs after a license key has been delivered electronically to the customer. The Company also recognizes revenue from the sale of software licenses from contracts with multiple deliverables. These software license sales are evaluated under ASC 985-605, Software Revenue Recognition The Company recognizes revenue under time and materials contracts primarily from the Nuclear Industry Training and Consulting segment and certain cost-reimbursable contracts. Revenue on time and material contracts is recognized as services are rendered and performed. Under a typical time-and-materials billing arrangement, customers are billed on a regularly scheduled basis, such as biweekly or monthly. Any unbilled amounts are typically billed the following month. Under cost-reimbursable contracts, which are subject to a contract ceiling amount, we are reimbursed for allowable costs and paid a fee, which may be fixed or performance based. However, if costs exceed the contract ceiling or are not allowable under the provisions of the contract or applicable regulations, we may not be able to obtain reimbursement for all such costs. Cash and cash equivalents Cash and cash equivalents represent cash and highly liquid investments including money market accounts with maturities of three months or less at the date of purchase. Restricted cash Restricted cash consists of the cash collateralization of outstanding letters of credit used for various advance payment, bid, surety and performance bonds, and negative foreign exchange positions which have been segregated into restricted money market accounts with BB&T Bank. BB&T Bank has complete and unconditional control over the restricted money market accounts. At December 31, 2015 and 2014, the Company had approximately $3.5 million and $4.2 million, respectively, of cash in escrow accounts with BB&T Bank. The restricted cash balance has been classified within the consolidated balance sheets as follows: $1.8 million of current assets and $1.8 million of long term assets at December 31, 2015, respectively, compared to $613,000 of current assets and $3.6 million of long-term assets at December 31, 2014. The Company recorded interest income of $10,000 and $7,000 from the escrow accounts for the years ended December 31, 2015 and 2014, respectively. The interest earned on these restricted funds is added to the restricted cash balance. The Company classifies the restriction and release of the cash collateralization of outstanding letters of credit as an investing activity within the consolidated statements of cash flows, as these deposits are not related to borrowings against our line of credit. Contract receivables, net Contract receivables include recoverable costs and accrued profit not billed which represents revenue recognized in excess of amounts billed. Billings in excess of costs and estimated earnings on uncompleted contracts in the accompanying consolidated balance sheets represent advanced billings to clients on contracts in advance of work performed. Generally, such amounts will be earned and recognized over the next twelve months. Billed receivables are recorded at invoiced amounts. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, and specific identification and review of customer accounts. The activity in the allowance for doubtful accounts is as follows: (in thousands) As of and for the years ended December 31, 2015 2014 Beginning balance $ 22 $ 2 Current year provision 101 22 Acquired allowance for doubtful accounts - 20 Current year write-offs (20 ) (22 ) Ending balance $ 103 $ 22 Equipment, software and leasehold improvements, net Equipment and purchased software are recorded at cost and depreciated using the straight-line method with estimated useful lives ranging from three to ten years. Leasehold improvements are amortized over the life of the lease or the estimated useful life, whichever is shorter, using the straight-line method. Upon sale or retirement, the cost and related depreciation are eliminated from the respective accounts and any resulting gain or loss is included in operations. Maintenance and repairs are charged to expense as incurred. Software development costs Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon the establishment of technological feasibility. Capitalization ceases and amortization of capitalized costs begins when the software product is commercially available for general release to customers. Amortization of capitalized computer software development costs is included in cost of revenue and is determined using the straight-line method over the remaining estimated economic life of the product, typically three years. On an annual basis, and more frequently as conditions indicate, the Company assesses the recovery of the unamortized software development costs by estimating the net undiscounted cash flows expected to be generated by the sale of the product. If the undiscounted cash flows are not sufficient to recover the unamortized software costs the Company will write-down the investment to its estimated fair value based on the future undiscounted cash flows. The excess of any unamortized computer software costs over the related net realizable value is written down and charged to costs of revenue. Development expenditures Development expenditures incurred to meet customer specifications under contracts are charged to contract costs. Company sponsored development expenditures are either charged to operations as incurred and are included in selling, general and administrative expenses or are capitalized as software development costs. See Note 8, Software development costs, net Impairment of long-lived assets Long-lived assets, such as equipment, purchased software, capitalized software development costs, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized at the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. During the third quarter of 2015, the Company's new CEO conducted a review of the Company's organizational cost structure and software development plans. Based upon this review, the Company made the decision to terminate its Enterprise Data Management ("EDM") software development program and recorded a $1.5 million write-down of the capitalized balance of its EDM software development projects in the third quarter 2015. Goodwill and intangible assets The Company's intangible assets include amounts recognized in connection with business acquisitions, including customer relationships, contract backlog and software. Intangible assets are initially valued at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Amortization is recognized on a straight-line basis over the estimated useful life of the intangible assets, except for contract backlog and contractual customer relationships which are recognized in proportion to the related projected revenue streams. Intangible assets with definite lives are reviewed for impairment if indicators of impairment arise. The Company does not have any intangible assets with indefinite useful lives. Goodwill represents the excess of costs over fair value of assets of businesses acquired. The company reviews goodwill for impairment annually as of December 31 and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable in accordance with Accounting Standard Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, Intangibles — Goodwill and Other ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Under ASU 2011-08, an entity is not required to perform step one of the goodwill impairment test for a reporting unit if it is more likely than not that its fair value is greater than its carrying amount. For the annual goodwill impairment test as of December 31, 2015, the Company performed a quantitative step one goodwill impairment test and concluded that the fair values of each of the reporting units exceeded their respective carrying values. For the annual goodwill impairment test as of December 31, 2014, the Company performed a qualitative assessment as permitted by ASU 2011-08 for the goodwill on reporting units and determined that it was more likely than not that the fair values of each of the reporting units exceeded their respective carrying values. If it is determined as a result of the qualitative assessment permitted by ASU 2011-08 that the fair value of a reporting unit is greater than its carrying value, then no additional testing is performed. If the Step 0 test indicates the fair value of a reporting unit is less than its carrying value, the Company performs the additional impairment test in accordance with the provisions of ASC 350. Foreign currency translation Balance sheet accounts for foreign operations are translated at the exchange rate as of the balance sheet date, and income statement accounts are translated at the average exchange rate for the period. The resulting translation adjustments are included in accumulated other comprehensive loss. Transaction gains and losses resulting from changes in exchange rates are recorded in operating loss in the period in which they occur. For the years ended December 31, 2015, and 2014, foreign currency transaction losses were approximately $30,000 and $180,000, respectively. Accrued warranty As the Company recognizes revenue under the percentage-of-completion method, it provides an accrual for estimated future warranty costs based on historical experience and projected claims for contracts which contain a warranty provision. The activity in the accrued warranty accounts is as follows: (in thousands) As of and for the years ended December 31, 2015 2014 Beginning balance $ 1,456 $ 1,851 Current year provision 626 660 Current year claims (455 ) (1,025 ) Currency adjustment (13 ) (30 ) Ending balance $ 1,614 $ 1,456 Income taxes Income taxes are provided under the asset and liability method. Under this method, deferred income taxes are determined based on the differences between the consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. A provision is made for the Company's current liability for federal, state and foreign income taxes and the change in the Company's deferred income tax assets and liabilities. We establish accruals for uncertain tax positions taken or expected to be taken in a tax return when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Favorable or unfavorable adjustment of the accrual for any particular issue would be recognized as an increase or decrease to income tax expense in the period of a change in facts and circumstances. Interest and penalties related to income taxes are accounted for as income tax expense. Stock-based compensation Compensation expense related to share based awards is recognized on a pro rata straight-line basis based on the value of share awards that are scheduled to vest during the requisite service period. During the years ended December 31, 2015, and 2014 the Company recognized $541,000, and $712,000, respectively, of pre-tax stock-based compensation expense under the fair value method. As of December 31, 2015, the Company had $1.1 million of unrecognized compensation expense related to the unvested portion of outstanding share based awards expected to be recognized through October 2019. Loss per share Basic loss per share is based on the weighted average number of outstanding common shares for the period. Diluted loss per share adjusts the weighted average shares outstanding for the potential dilution that could occur if outstanding vested stock options were exercised. The number of common shares and common share equivalents used in the determination of basic and diluted loss per share were as follows: (in thousands, except for per share data) Years ended December 31, 2015 2014 Numerator: Net loss attributed to common stockholders $ (4,705 ) $ (7,329 ) Denominator: Weighted-average shares outstanding for basic loss per share 17,892,891 17,887,859 Effect of dilutive securities: Stock options and restricted stock units - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 17,892,891 17,887,859 Shares related to dilutive securities excluded because inclusion would be anti-dilutive 2,492,710 2,811,709 Conversion of outstanding stock options and restricted stock units was not assumed for the years ended December 31, 2015 and 2014 because the impact was anti-dilutive. Significant Customers and Concentration of credit risk The Company is subject to concentration of credit risk with respect to contract receivables. Credit risk on contract receivables is mitigated by the nature of the Company's worldwide customer base and its credit policies. The Company's customers are not concentrated in any specific geographic region, but are concentrated in the energy industry. The following customer accounted for more than 10% of the Company's consolidated contract receivables for the indicated periods: December 31, 2015 2014 State Nuclear Power Automation System Engineering Co. 0.7% 10.2% In addition, we have a concentration of revenue from a single customer, which accounted for approximately 15.9% of our consolidated revenue for the year ended December 31, 2015. No other single customer accounted for more than 10% of our consolidated revenue in 2015. In 2014, we did not have a single customer who accounted for more than 10% of our consolidated revenue. Fair values of financial instruments The carrying amounts of current assets and current liabilities reported in the consolidated balance sheets approximate fair value due to their short term duration. Contingent consideration for business acquisitions Acquisitions may include contingent consideration payments based on future financial measures of an acquired company. Contingent consideration is required to be recognized at fair value as of the acquisition date. The Company estimates the fair value of these liabilities based on financial projections of the acquired companies and estimated probabilities of achievement. At each reporting date, the contingent consideration obligation is revalued to estimated fair value and changes in fair value subsequent to the acquisition are reflected in income or expense in the consolidated statements of operations, and could cause a material impact to our operating results. Changes in the fair value of contingent consideration obligations may result from changes in discount periods and rates, changes in the timing and amount of revenue and/or earnings estimates and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. Derivative instruments The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates. It is the Company's policy to use such derivative financial instruments to protect against market risk arising in the normal course of business in order to reduce the impact of these exposures. The Company minimizes credit exposure by limiting counterparties to nationally recognized financial institutions. As of December 31, 2015, the Company had foreign exchange contracts outstanding of approximately 2.1 million Euro, 1.3 million Canadian Dollars, 0.5 million Pounds Sterling, and 0.4 million Australian Dollars. At December 31, 2014, the Company had foreign exchange contracts outstanding of approximately 1.4 million Euro, 0.8 million Australian Dollars, 0.5 million Malaysian Ringgit, and 0.3 million Pounds Sterling at fixed rates. The contracts expire on various dates through January 2017. The Company had not designated the foreign exchange contracts as hedges and had recorded the estimated fair value of the contracts in the consolidated balance sheet as follows: December 31, (in thousands) 2015 2014 Asset derivatives Prepaid expenses and other current assets $ 115 $ 71 Other assets 6 21 121 92 Liability derivatives Other current liabilities (57 ) (23 ) Other liabilities - (1 ) (57 ) (24 ) Net fair value $ 64 $ 68 The changes in the fair value of the foreign exchange contracts are included in gain (loss) on derivative instruments, net in the consolidated statements of operations. The foreign currency denominated trade receivables, unbilled receivables, billings in excess of revenue earned and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each period into the functional currency using the current exchange rate at the end of the period. The gain or loss resulting from such remeasurement is also included in gain (loss) on derivative instruments net in the consolidated statements of operations. For the years ended December 31, 2015, and 2014, the Company recognized a gain (loss) on its derivative instruments net as outlined below: Years ended December 31, (in thousands) 2015 2014 Foreign exchange contracts- change in fair value $ (6 ) $ 365 Remeasurement of related contract receivables and billings in excess of revenue earned (34 ) (156 ) $ (40 ) $ 209 Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers , which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today's guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for the Company in the first quarter of its fiscal year ending December 31, 2018, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently in the process of evaluating the impact of its pending adoption of this ASU on the Company's consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," ("ASU 2016-02"). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company is still evaluating the impact of the pending adoption of the new standard on the consolidated financial statements, and the Company expects that upon adoption the recognition of ROU assets and lease liabilities could be material. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | 3. Acquisitions Hyperspring, LLC On November 14, 2014, (the "Closing Date") the Company, through its operating subsidiary, GSE Power Systems, Inc. (now GSE Performance Solutions, Inc. "GSE Performance"), acquired Hyperspring, LLC ("Hyperspring") pursuant to an Amended Membership Interests Purchase Agreement ("Purchase Agreement") with the sellers of Hyperspring ("Sellers"). Hyperspring, headquartered in Huntsville, Alabama, specializes in training and development, plant operations support services, and staff augmentation, primarily in the United States nuclear power industry. Hyperspring operates as a wholly-owned subsidiary of GSE Performance. The purchase price allocation included customer relationship intangible assets valued at $779,000 which are being amortized over seven years. GSE Performance paid the Sellers an aggregate of $3.0 million in cash at the closing date. On September 24, 2015, Hyperspring was awarded a three year contract by the Tennessee Valley Authority ("TVA"), with substantially the same scope and profit margin as its expiring TVA contract. In accordance with the Purchase Agreement, the former owners were paid $1.2 million in October 2015 due to the successful renewal of the TVA contract. In addition, GSE Performance may be required, pursuant to the terms of the Purchase Agreement, to pay the Sellers up to an additional $2.4 million in each of the three years subsequent to the acquisition date based on earnings before interest, taxes, depreciation, and amortization ("EBITDA") thresholds. Based upon EBITDA for the period ended November 13, 2015, the Sellers earned $1.4 million which was paid in January 2016. Hyperspring's results of operations are included in the consolidated financial statements for the period beginning November 14, 2014. The following table summarizes the purchase price and purchase price allocation for the acquisition of Hyperspring on November 14, 2014. Hyperspring ( in thousands Cash purchase price $ 3,000 Fair value of contingent consideration 3,953 Total purchase price $ 6,953 Purchase price allocation: Cash $ 152 Contract receivables 1,719 Prepaid expenses and other current assets 23 Property and equipment, net 12 Intangible assets 779 Goodwill 5,612 Total assets 8,297 Line of credit 749 Accounts payable, accrued expenses, and other liabilities 586 Billings in excess of revenue earned 9 Total liabilities 1,344 Net assets acquired $ 6,953 Contingent Consideration ASC 805, Business Combinations As of December 31, 2015 and 2014, current contingent consideration totaled $2.6 million and $2.8 million, respectively. As of December 31, 2015 and 2014, the Company also had accrued contingent consideration totaling $1.1 million and $1.9 million, respectively, which is included in long-term liabilities on the consolidated balance sheet and represents the portion of contingent consideration estimated to be payable greater than twelve months from the balance sheet date. The breakdown of contingent consideration as it relates to the Company's acquisitions is given below. (in thousands) December 31, 2015 2014 Hyperspring, LLC $ 2,647 $ 2,152 IntelliQlik, LLC - 213 EnVision Systems, Inc. - 477 Current contingent consideration $ 2,647 $ 2,842 Hyperspring, LLC $ 1,085 $ 1,948 Contingent consideration $ 1,085 $ 1,948 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets | 4. Goodwill and Intangible Assets Goodwill The Company reviews goodwill for impairment annually as of December 31 and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company tests goodwill at the reporting unit level. A reporting unit is an operating segment, or one level below an operating segment, as defined by U.S. generally accepted accounting principles. After the acquisition of Hyperspring on November 14, 2014, the Company determined that it had two reporting units which are the same as the two operating segments: (i) Performance Improvement Solutions; and (ii) Nuclear Industry Training and Consulting (which includes Hyperspring). As of December 31, 2015 and 2014, goodwill of $5.6 million related to the Nuclear Industry Training and Consulting segment. No impairment of goodwill was recorded in 2015 or 2014. Intangible Assets Subject to Amortization The following table shows the gross carrying amount and accumulated amortization of definite-lived intangible assets: (in thousands) As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets Customer relationships $ 1,425 $ (1,061 ) $ 364 Non-contractual customer relationships 911 (669 ) 242 Developed technology 471 (295 ) 176 In process research and development 152 (142 ) 10 Contract backlog 36 (36 ) - Trade names and other 29 (29 ) - Foreign currency translation (28 ) 11 (17 ) Total $ 2,996 $ (2,221 ) $ 775 (in thousands) As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets Customer relationships $ 1,425 $ (695 ) $ 730 Non-contractual customer relationships 911 (618 ) 293 Developed technology 471 (236 ) 235 In process research and development 152 (136 ) 16 Contract backlog 36 (36 ) - Trade names and other 29 (29 ) - Foreign currency translation 7 (2 ) 5 Total $ 3,031 $ (1,752 ) $ 1,279 Amortization is recognized on a straight-line basis over the estimated useful life of the intangible asset, except for contractual customer relationships and contract backlog for which amortization is recognized in proportion to the related projected revenue stream. The Company reviews specific definite-lived intangible assets for impairment when events occur that may impact their value in accordance with the respective accounting guidance for long-lived assets. No impairment charges were recorded for the years ended December 31, 2015 and 2014. Amortization expense related to definite-lived intangible assets totaled $494,000 and $193,000 for the years ended December 31, 2015 and 2014, respectively. The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years and thereafter: (in thousands) Years ended December 31,: 2016 $ 294 2017 204 2018 158 2019 71 2020 33 Thereafter 15 $ 775 |
Contract Receivables
Contract Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Contract Receivables [Abstract] | |
Contract Receivables | 5. Contract Receivables Contract receivables represent balances due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months. Recoverable costs and accrued profit not billed represent costs incurred and associated profit accrued on contracts that will become billable upon future milestones or completion of contracts. The components of contract receivables are as follows: (in thousands) December 31, 2015 2014 Billed receivables $ 9,831 $ 10,792 Recoverable costs and accrued profit not billed 3,325 4,998 Allowance for doubtful accounts (103 ) (22 ) Total contract receivables, net $ 13,053 $ 15,768 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets consist of the following: (in thousands) December 31, 2015 2014 Prepaid expenses $ 639 $ 539 Deferred income taxes- current 18 27 Income tax receivable 425 533 Other current assets 1,424 895 Total $ 2,506 $ 1,994 |
Equipment, Software, and Leaseh
Equipment, Software, and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2015 | |
Equipment, Software and Leasehold Improvements [Abstract] | |
Equipment, Software and Leasehold Improvements | 7. Equipment, Software and Leasehold Improvements, net Equipment, software and leasehold improvements, net consist of the following: (in thousands) December 31, 2015 2014 Computer equipment $ 3,211 $ 3,235 Software 1,474 1,429 Leasehold improvements 542 543 Furniture and fixtures 1,776 1,848 7,003 7,055 Accumulated depreciation (5,407 ) (5,229 ) Equipment, software and leasehold improvements, net $ 1,596 $ 1,826 Depreciation expense was $493,000 and $545,000 for the years ended December 31, 2015 and 2014, respectively. |
Software Development Costs, net
Software Development Costs, net | 12 Months Ended |
Dec. 31, 2015 | |
Software Development Costs, net [Abstract] | |
Software Development Costs | 8. Software Development Costs, net Software development costs, net consist of the following: (in thousands) December 31, 2015 2014 Beginning balance $ 1,414 $ 1,020 Additions 1,610 646 Amortization (341 ) (252 ) Impairments (1,538 ) - Ending balance $ 1,145 $ 1,414 Software development costs capitalized were $1.6 million and $646,000 for the years ended December 31, 2015 and 2014, respectively. Amortization of capitalized software development costs was $341,000 and $252,000 for the years ended December 31, 2015 and 2014, respectively, and was included in cost of revenue in the consolidated statements of operations. During the third quarter of 2015, the Company's new CEO conducted a review of the Company's organizational cost structure and software development plans. Based upon this review, the Company made the decision to terminate its Enterprise Data Management ("EDM") software development program and recorded a $1.5 million write-down of the capitalized balance of its EDM software development projects in the third quarter 2015. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | 9. Fair Value of Financial Instruments ASC 820, Fair Value Measurement The levels of the fair value hierarchy established by ASC 820 are: Level 1: inputs are quoted prices, unadjusted, in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2: inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. A Level 2 input must be observable for substantially the full term of the asset or liability. Level 3: inputs are unobservable and reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability. The Company considers the recorded value of certain of its financial assets and liabilities, which consist primarily of cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities at December 31, 2015 and 2014 based upon the short-term nature of the assets and liabilities. The Company had $5.4 million and $7.5 million deposited in unrestricted money market accounts on December 31, 2015 and 2014, respectively. As of December 31, 2015, the Company was contingently liable for twelve standby letters of credit and one surety bond totaling $3.6 million which represent advance payment and performance bonds on twelve contracts. The Company has deposited the full value of twelve standby letters of credit, $3.5 million, into money market escrow accounts which have been restricted in that the Company does not have access to these funds until the related letters of credit have expired. The cash has been recorded on the Company's consolidated balance sheets at December 31, 2015 as restricted cash and long-term restricted cash depending on the expiration date of the underlying letters of credit. The following table presents assets and liabilities measured at fair value at December 31, 2015: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total Money market funds $ 8,979 $ - $ - $ 8,979 Foreign exchange contracts - 121 - 121 Total assets $ 8,979 $ 121 $ - $ 9,100 Foreign exchange contracts $ - $ (57 ) $ - $ (57 ) Contingent consideration liability - - (3,732 ) (3,732 ) Total liabilities $ - $ (57 ) $ (3,732 ) $ (3,789 ) The following table presents assets and liabilities measured at fair value at December 31, 2014: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total Money market funds $ 11,661 $ - $ - $ 11,661 Foreign exchange contracts - 92 - 92 Total assets $ 11,661 $ 92 $ - $ 11,753 Foreign exchange contracts $ - $ (24 ) $ - $ (24 ) Contingent consideration liability - - (4,790 ) (4,790 ) Total liabilities $ - $ (24 ) $ (4,790 ) $ (4,814 ) For the years ended December 31, 2015 and 2014, the Company did not have any transfers between fair value Level 1 and Level 2. The Company did not hold any non-financial assets or non-financial liabilities subject to fair value measurements on a recurring basis at December 31, 2015 or 2014. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 10. Long-Term Debt At December 31, 2015 and 2014, the Company had no long-term debt. Line of Credit BB&T Bank At December 31, 2015, the Company had a Master Loan and Security Agreement and Revolving Credit Note with BB&T Bank. The Company's former bank, Susquehanna Bank, was acquired by BB&T Bank effective November 8, 2015. The Company and its subsidiary, GSE Performance Solutions, Inc., are jointly and severally liable as co-borrowers. The loan agreement provides a $7.5 million revolving line of credit for the purpose of (i) issuing stand-by letters of credit and (ii) providing working capital. Working capital advances bear interest at a rate equal to the Wall Street Journal Prime Rate of Interest, floating with a floor of 4 1/2%. The agreement expires on June 30, 2016. As collateral for the Company's obligations, the Company granted a first lien and security interest in all of the assets of the Company, including but not limited to, accounts receivable, proceeds and products, intangibles, trademarks, patents, intellectual property, machinery and equipment. On September 9, 2014, the Company signed a Third Comprehensive Amendment to the Master Loan and Security Agreement. According to the Third Amendment, the Company is to maintain a segregated cash collateral account at Susquehanna Bank (now BB&T Bank) equal to the greater of (i) $3.0 million or (ii) the aggregate principal amounts of all Loans outstanding under the Revolving Credit Facility (including any issued and outstanding letters of credit, working capital advances, and negative foreign exchange positions) as security for the Company's obligations. Under this Amendment, BB&T Bank shall have complete and unconditional control over the cash collateral account. On September 30, 2014, Susquehanna Bank collateralized the outstanding letters of credit issued under the line of credit. At December 31, 2015 and 2014 the cash collateral account totaled $3.5 million and $4.2 million, respectively, and was classified as restricted cash on the consolidated balance sheets. The credit agreement contains certain restrictive covenants regarding future acquisitions and incurrence of debt. On July 31, 2015, the Company signed a Fifth Comprehensive Amendment to the Master Loan and Security Agreement in which the Company's financial covenants were reduced from four to two, and the covenant targets were adjusted. As of Covenant December 31, 2015 Minimum tangible capital base Must exceed $10.5 million $10.8 million Quick ratio Must exceed 1.00 : 1.00 1.44 : 1.00 As of December 31, 2015, the Company was in compliance with its financial covenants as defined above. IberiaBank On November 14, 2014, the acquisition date, Hyperspring had a $1.0 million working capital line of credit with IberiaBank. Hyperspring used the IberiaBank line of credit as needed mainly to provide for payroll funding. The line was replenished through collection of receivables obtained in the following weeks. Interest was payable monthly at a rate of the prime rate of interest as published in the money rate section of the Wall Street Journal plus 2.50%. The effective rate at November 14, 2014 was 5.75%. The line was secured by all accounts and was guaranteed by the members of Hyperspring. On December 7, 2014, the working capital line of credit matured while the Company was renegotiating the new terms with IberiaBank subsequent to the acquisition of Hyperspring. On January 22, 2015, a promissory note was executed between Hyperspring and IberiaBank to extend the $1.0 million line of credit. Under the new terms, interest is payable monthly at the rate of 1.00 percentage points over the prime rate of interest as published in the money rate section of the Wall Street Journal. The effective rate at the date of the promissory note was 4.25 %. The line is secured by all accounts of Hyperspring and guaranteed by GSE Systems, Inc. The maturity date of the line of credit is July 6, 2016. At December 31, 2014, the outstanding balance on the line of credit was $339,000. The outstanding balance on the line of credit was repaid in 2015 and no additional borrowings have been made against the line of credit. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 11. Income Taxes The consolidated loss before income taxes, by domestic and foreign sources, is as follows: (in thousands) Years ended December 31, 2015 2014 Domestic $ (4,260 ) $ (5,195 ) Foreign 26 (1,968 ) Total $ (4,234 ) $ (7,163 ) The provision for income taxes is as follows: (in thousands) Years ended December 31, 2015 2014 Current: Federal $ - $ - State 12 10 Foreign 288 178 Subtotal 300 188 Deferred: Federal 146 24 Foreign 25 (46 ) Subtotal 171 (22 ) Total $ 471 $ 166 The Company is entitled to a deduction for federal and state tax purposes with respect to employees' stock option activity. As of December 31, 2015, the Company had $4.7 million of unrecognized excess tax deductions related to compensation for stock option exercises which will be recognized when the net operating loss carryforwards are fully utilized and those excess tax benefits result in a reduction to income taxes payable. The effective income tax rate differed from the statutory federal income tax rate due to the following: Effective Tax Rate Percentage (%) Years ended December 31, 2015 2014 Statutory federal income tax rate 34.0% 34.0% State income taxes, net of federal tax benefit (0.2)% (0.1)% Effect of foreign operations (3.0)% (10.2)% Change in valuation allowance (33.8)% (22.8)% Permanent differences (3.6)% (2.1)% Other (4.5)% (1.3)% Effective tax rate (11.1)% (2.5)% Deferred income taxes arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. A summary of the tax effect of the significant components of the deferred income tax liabilities is as follows: (in thousands) As of December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 8,732 $ 7,745 Capital loss carryforwards 954 615 Accruals 766 485 Reserves 615 521 Alternative minimum tax credit carryforwards 166 166 Stock-based compensation expense 1,450 1,445 Other 199 39 Total deferred tax asset 12,882 11,016 Valuation allowance (12,082 ) (10,006 ) Total deferred tax asset less valuation allowance 800 1,010 Deferred tax liabilities: Undistributed earnings of foreign subsidiary (17 ) (102 ) Software development costs (446 ) (542 ) Other (538 ) (397 ) Total deferred tax liability (1,001 ) (1,041 ) Net deferred tax liability $ (201 ) $ (31 ) In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities and projected future income in making this assessment. Management believes that the Company will achieve profitable operations in future years that will enable the Company to recover the benefit of its deferred tax assets. However, other than for a portion of the deferred tax assets that are related to the Company's Indian subsidiary, the Company presently does not have sufficient objective evidence to substantiate the recovery of the deferred tax assets. Accordingly, the Company has established a full $12.1 million valuation allowance on its U.S., Swedish, and Chinese deferred tax assets at December 31, 2015. The valuation allowance for deferred tax assets increased by $2.1 million in 2015 and increased by $2.9 million in 2014. The Company has a deferred tax liability in the amount of $170,000 and $24,000 at December 31, 2015, and 2014, respectively, relating to the tax amortization of goodwill that cannot be offset by deferred tax assets because the anticipated reversal of the deferred tax liability is outside of the anticipated reversal of the deferred tax assets. At December 31, 2015, the Company's largest deferred tax asset of $7.9 million primarily relates to a U.S. net operating loss carryforward of $21.9 million which expires in various amounts between 2020 and 2035. The amount of U.S. loss carryforward which can be used by the Company each year is limited due to changes in the Company's ownership which occurred in 2003. Thus, a portion of the Company's loss carryforward may expire unutilized. Uncertain Tax Positions Domestic Uncertain Tax Positions In 2014 the Company accrued $2,000 of interest and penalties related to its domestic uncertain tax positions. These uncertain positions expired in 2015. Foreign Uncertain Tax Positions During 2015 and 2014, the Company recorded $130,000 and $23,000, respectively, of tax liabilities for certain foreign tax contingencies. The Company recorded these uncertain tax positions in other current liabilities on the consolidated balance sheets. In 2014 the Company accrued no interest and penalties related to its foreign uncertain tax positions; $167,000 was accrued in 2015. The following table outlines the Company's foreign uncertain tax liabilities. China Ukraine (in thousands) Tax Interest and Penalties Tax Interest and Penalties Total Balance, December 31, 2013 $ 199,000 $ - $ 61,000 $ - $ 260,000 Increases 23,000 - - - 23,000 Decreases - - - - - Balance, December 31, 2014 $ 222,000 $ - $ 61,000 $ - $ 283,000 Increases 3,000 152,000 - 15,000 170,000 Decreases - - 40,000 - 40,000 Balance, December 31, 2015 $ 225,000 $ 152,000 $ 21,000 $ 15,000 $ 413,000 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2015 | |
Capital Stock [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 12. Capital Stock The Company's Board of Directors has authorized 32,000,000 total shares of capital stock, of which 30,000,000 are designated as common stock and 2,000,000 are designated as preferred stock. The Board of Directors has the authority to establish one or more classes of preferred stock and to determine, within any class of preferred stock, the preferences, rights and other terms of such class. As of December 31, 2015, the Company has reserved 4,832,240 shares of common stock for issuance, 2,222,333 shares upon exercise of outstanding stock options, and 1,367,500 shares upon vesting of restricted stock units. The Company has 1,242,407 shares for future grants under the Company's 1995 Long-Term Incentive Plan. Preferred Stock Rights On March 21, 2011, the Board of Directors of the Company declared a dividend, payable to holders of record as of the close of business on April 1, 2011, of one preferred stock purchase right (a "Right") for each outstanding share of common stock, par value $0.01 per share, of the Company (the "Common Stock"). In addition, the Company will issue one Right with each new share of Common Stock issued. In connection therewith, on March 21, 2011, the Company entered into a Stockholder Protection Rights Agreement (as amended from time to time, the Rights Agreement) with Continental Stock Transfer & Trust Company, as Rights Agent, which has a term of three years, unless amended by the Board of Directors in accordance with the terms of the Rights Agreement. On March 21, 2014, the Rights Agreement was amended to extend the term an additional two years. The Rights Agreement expired on March 21, 2016. The Rights will initially trade with and be inseparable from the Common Stock and will not be evidenced by separate certificates unless they become exercisable. Each Right entitles its holder to purchase from the Company one-hundredth of a share of participating preferred stock having economic and voting terms similar to the Common Stock at an exercise price of $8.00 per Right, subject to adjustment in accordance with the terms of the Rights Agreement, once the Rights become exercisable. Under the Rights Agreement, the Rights become exercisable if any person or group acquires 20% or more of the Common Stock or, in the case of any person or group that owned 20% or more of the Common Stock as of March 21, 2011, upon the acquisition of any additional shares by such person or group. The Company, its subsidiaries, employee benefit plans of the Company or any of its subsidiaries and any entity holding Common Stock for or pursuant to the terms of any such plan are accepted. Upon exercise of the Right in accordance with the Rights Agreement, the holder would be able to purchase a number of shares of Common Stock from the Company having an aggregate market price (as defined in the Rights Agreement) equal to twice the then-current exercise price for an amount in cash equal to the then-current exercise price. In addition, the Company may, in certain circumstances and pursuant to the terms of the Rights Agreement, exchange the Rights for one share of Common Stock or an equivalent security for each Right or, alternatively, redeem the Rights for $0.001 per Right. The Rights will not prevent a takeover of our Company, but may cause substantial dilution to a person that acquires 20% or more of the Company's Common Stock. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation Long-term incentive plan During 1995, the Company established the 1995 Long-Term Incentive Stock Option Plan (the "Plan"), which permits the granting of stock options (including incentive stock options and nonqualified stock options) stock appreciation rights, restricted or unrestricted stock awards, phantom stock, performance awards or any combination of these to employees, directors or consultants. The Plan expires on June 30, 2018; the total number of shares that could be issued under the Plan is 6,500,000. As of December 31, 2015, 1,667,760 shares have been issued under the Plan, 2,222,333 stock options and 1,367,500 restricted stock units ("RSUs") were outstanding under the Plan, while 1,242,407 stock options remained to be granted under the Plan. The Company recognizes compensation expense on a pro rata straight-line basis over the requisite service period for stock-based compensation awards with both graded and cliff vesting terms. The Company recognizes the cumulative effect of a change in the number of awards expected to vest in compensation expense in the period of change. The Company has not capitalized any portion of its stock-based compensation. During the years ended December 31, 2015 and 2014, the Company recognized $541,000 and $712,000, respectively, of stock-based compensation expense under the fair value method. Stock options Options to purchase shares of the Company's common stock under the Plan expire in either seven or ten years from the date of grant and become exercisable in three, five, or seven installments with a certain percentage of options vesting on the first anniversary of the grant date and additional options vesting on each of the subsequent anniversaries of the grant date, subject to acceleration under certain circumstances. Information with respect to stock option activity as of and for the year ended December 31, 2015 is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2014 2,708,273 $ 3.12 Options granted 240,000 1.58 Options exercised (14,000 ) 1.65 Options forfeited (711,940 ) 2.97 Options outstanding at December 31, 2015 2,222,333 3.01 $ 831 2.78 Options expected to vest 218,522 1.76 $ 142 3.74 Options exercisable at December 31, 2015 2,003,811 $ 3.15 $ 689 2.68 Information with respect to stock option activity as of and for the year ended December 31, 2014 is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2013 3,035,987 $ 3.38 Options granted 158,573 2.03 Options exercised - - Options forfeited 486,287 4.35 Options outstanding at December 31, 2014 2,708,273 3.12 $ - 3.55 Options expected to vest 681,983 2.23 $ - 4.48 Options exercisable at December 31, 2014 2,026,290 $ 3.42 $ - 3.23 A summary of the status of the Company's nonvested options as of and for the year ended December 31, 2015 is presented below. Number of Shares Weighted Average Fair Value Nonvested options at December 31, 2014 681,983 $ 1.22 Options granted 240,000 0.55 Options forfeited (295,903 ) 0.94 Options vested during the period (407,558 ) 1.21 Nonvested options at December 31, 2015 218,522 $ 0.89 A summary of the status of the Company's nonvested options as of and for the year ended December 31, 2014 is presented below. Number of Shares Weighted Average Fair Value Nonvested options at December 31, 2013 1,287,801 $ 1.33 Options granted 158,573 0.67 Options forfeited (190,433 ) 1.29 Options vested during the period (573,958 ) 1.29 Nonvested options at December 31, 2014 681,983 $ 1.22 The Company uses a Black-Scholes valuation model to estimate the fair value of the options at grant date based on the assumptions noted in the following table. Volatility represents an average of market estimates for implied volatility of GSE common stock. The expected life is estimated based on an analysis of options already exercised and any foreseeable trends or changes in recipients' behavior. The risk-free interest rate is an interpolation of the relevant U.S. Treasury security maturities as of each applicable grant date: Years ended December 31, 2015 2014 Risk-free interest rates 0.93 - 2.04% 1.29 - 2.15% Dividend yield 0% 0% Expected life 3.03 - 7.00 years 3.81 - 7.00 years Volatility 45.94 - 49.44% 49.89 - 50.34% Weighted average volatility 47.45% 50.06% As of December 31, 2015, the Company had $1.1 million of unrecognized compensation expense related to the unvested portion of outstanding stock options expected to be recognized on a pro-rata straight line basis over a weighted average remaining service period of approximately 3.74 years. The Company received cash for the exercise price associated with stock options exercised of $23,000 during the year ended December 31, 2015. No stock options were exercised during the year ended December 31, 2014. The total intrinsic value realized by participants on stock options exercised was $6,000 during the year ended December 31, 2015. Restricted Stock Units ("RSUs") I Number of Shares Weighted Average Fair Value Nonvested RSUs at December 31, 2014 - $ - RSUs granted 1,367,500 0.76 RSUs forfeited - - RSUs vested - - Nonvested RSUs at December 31, 2015 1,367,500 $ 0.76 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Leases The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of December 31, 2015 are as follows: (in thousands) Gross Future Minimum Lease Payments 2016 $ 1,036 2017 930 2018 771 2019 750 2020 604 Thereafter 1,562 Total $ 5,653 Total rent expense under operating leases for the years ended December 31, 2015 and 2014, was approximately $1.2 million and $1.4 million, respectively. Standby letters of credit, bank guarantees, surety bonds and performance bonds As of December 31, 2015, the Company was contingently liable for twelve standby letters of credit and one surety bond totaling $3.6 million which represent advance payment and performance bonds on twelve contracts. The Company has deposited the full value of twelve standby letters of credit, $3.5 million, into money market escrow accounts which have been restricted in that the Company does not have access to these funds until the related letters of credit have expired. The cash has been recorded on the Company's consolidated balance sheets at December 31, 2015 as restricted cash and long-term restricted cash depending on the expiration date of the underlying letters of credit. Contingencies Various actions and proceedings are presently pending to which the Company is a party. In the opinion of management, the aggregate liabilities, if any, arising from such actions are not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefits [Abstract] | |
Employee Benefits | 15. Employee Benefits The Company has a qualified defined contribution plan that covers all U.S. employees under Section 401(k) of the Internal Revenue Code. Under this plan, the Company's stipulated basic contribution matches a portion of the participants' contributions based upon a defined schedule for GSE Performance Improvement Solutions employees. The Company's contributions to the plan were approximately $268,000 and $256,000 for the years ended December 31, 2015 and 2014, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Segment Information | 16. Segment Information The Company has two reportable business segments. The Performance Improvement Solutions segment provides simulation, training and engineering products and services delivered across the breadth of industries we serve. Solutions include simulation for both training and engineering applications. Example training applications include turnkey and custom training services, while engineering services include plant design verification and validation. The Company provides these services across all market segments. Contracts typically range from 10 months to three years. The Nuclear Industry Training and Consulting segment provides specialized workforce solutions primarily to the nuclear industry, working at clients' facilities. This business is managed through the Hyperspring subsidiary. The business model, management focus, margins and other factors clearly separate this business line from the rest of the GSE product and service portfolio. Hyperspring has been providing these services since 2005. The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated loss before income taxes. Prior year amounts have been revised to correct misstatements that were deemed to be immaterial to both the current and prior periods. Nuclear Industry Training and Consulting's results are included in 2014 beginning on November 14, 2014, the date Hyperspring was acquired by the Company. (in thousands) Years ended December 31, 2015 2014 Contract revenue: Performance Improvement Solutions $ 37,074 $ 35,281 Nuclear Industry Training and Consulting 19,729 2,255 $ 56,803 $ 37,536 Operating income (loss): Performance Improvement Solutions $ (4,465 ) $ (7,392 ) Nuclear Industry Training and Consulting 1,178 105 Loss on change in fair value of contingent consideration, net (849 ) (229 ) Operating loss $ (4,136 ) $ (7,516 ) Interest income, net 88 143 Gain (loss) on derivative instruments, net (40 ) 209 Other income (expense), net (146 ) 1 Loss before income taxes $ (4,234 ) $ (7,163 ) Additional information relating to segments is as follows: (in thousands) December 31, 2015 2014 Identifiable assets: Performance Improvement Solutions $ 30,634 $ 38,538 Nuclear Industry Training and Consulting 8,884 8,090 Intercompany receivable elimination (147 ) (400 ) Total assets $ 39,371 $ 46,228 For the years ended December 31, 2015 and 2014, 71% and 61%, respectively, of the Company's consolidated revenue was from customers in the nuclear power industry. The Company designs, develops and delivers business and technology solutions to the energy industry worldwide. Revenue, operating loss and total assets for the Company's United States, European, and Asian subsidiaries as of and for the years ended December 31, 2015 and 2014 are as follows: (in thousands) Year ended December 31, 2015 United States Europe Asia Eliminations Consolidated Contract revenue $ 49,585 $ 5,260 $ 1,958 $ - $ 56,803 Transfers between geographic locations 1,400 183 1,429 (3,012 ) - Total contract revenue $ 50,985 $ 5,443 $ 3,387 $ (3,012 ) $ 56,803 Operating loss $ (4,053 ) $ (1 ) $ (82 ) $ - $ (4,136 ) Total assets, at December 31 $ 102,325 $ 4,991 $ 3,915 $ (71,860 ) $ 39,371 (in thousands) Year ended December 31, 2014 United States Europe Asia Eliminations Consolidated Contract revenue $ 28,644 $ 6,414 $ 2,478 $ - $ 37,536 Transfers between geographic locations 2,176 741 1,242 (4,159 ) - Total contract revenue $ 30,820 $ 7,155 $ 3,720 $ (4,159 ) $ 37,536 Operating loss $ (5,330 ) $ (2,094 ) $ (92 ) $ - $ (7,516 ) Total assets, at December 31 $ 116,586 $ 5,828 $ 4,694 $ (80,880 ) $ 46,228 Approximately 31% and 52%, of the Company's 2015 and 2014 revenue, respectively, was derived from international sales of its products and services from all of its subsidiaries. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Supplemental Disclosure of Cash Flow Information | 18. Supplemental Disclosure of Cash Flow Information (in thousands) Year ended December 31, 2015 2014 Cash paid: Interest $ 3 $ 1 Income taxes $ 119 $ 395 Non-cash financing activities: Hyperspring (1) $ - $ 3,953 IntelliQlik, LLC (2) - 207 Total accrued contingent consideration $ - $ 4,160 (1) Total accrued contingent consideration recorded on November 14, 2014, the date of the Hyperspring acquisition. (2) Total accrued contingent consideration recorded on November 14, 2014, the date of the Company's investment in IntelliQlik. |
Equity Method Investments and J
Equity Method Investments and Joint Ventures | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures [Text Block] | 17. Equity Method Investments Investments in partnerships, joint ventures, and less-than-majority owned subsidiaries in which the Company has significant influence are accounted for under the equity method. As of December 31, 2015 and 2014, the Company had the following equity investments. IntelliQlik, LLC In conjunction with the Hyperspring acquisition, the Company invested $250,000 for a 50% interest in IntelliQlik, LLC ("IntelliQlik"). IntelliQlik is developing a software platform for online learning and learning management for the energy market and is jointly owned by GSE Performance Solutions Inc. and a former member of Hyperspring. GSE Performance Solutions was obligated to contribute an additional $250,000 should IntelliQlik attain certain development milestones by September 30, 2015. GSE concluded that the required development milestones had not been met and did not contribute the additional $250,000 investment. The Company wrote-off the remaining $126,000 balance of its IntelliQlik investment in the third quarter 2015. The loss was recorded under other income (expense), net in the consolidated statements of operations. General Simulation Engineering RUS Limited Liability Company On May 22, 2013, the Company and Electrobalt Holding, a Russian Federation closed joint-stock company, created a 50/50 joint venture called General Simulation Engineering RUS Limited Liability Company ("GSE RUS"). The carrying value of the investment was $0 as of December 31, 2015 and 2014. Schedule of Equity Losses We had the following net losses from equity method investments during the years ended December 31, 2015 and 2014. The losses from equity method investments are included in other income (expense), net within the consolidated statements of operations. (in thousands) Years ended December 31, 2015 2014 Equity Method Investments IntelliQlik, LLC $ (233 ) $ (17 ) General Simulation Engineering RUS LLC - (38 ) Total loss from equity method investments $ (233 ) $ (55 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. Subsequent Events Pursuant to the terms of the Hyperspring Purchase Agreement, GSE Performance was required to pay the Sellers an additional $1.4 million based on EBITDA thresholds for the year ended November 13, 2015. The Sellers were paid on January 8, 2016. On March 17, 2016, GSE was awarded a contract to design, engineer and deliver three full scope simulator systems to an existing client, a major nuclear power plant operator based in the southern United States. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Investments in partnerships, joint ventures, and less-than-majority owned subsidiaries in which the Company has significant influence are accounted for under the equity method. |
Revisions | Revisions Historically, the Company recognized revenue on multiple element arrangements which included sales of its EnVision software product as delivery occurred on each element except post contract support ("PCS"). PCS revenue was recognized ratably over the PCS term. During the fourth quarter of 2015, management determined that that Company had not established vendor specific objective evidence ("VSOE") of the fair value for any of the elements in multiple element transactions including sales of its EnVision software licenses. Accordingly, the consolidated financial statements have been revised to recognize all revenue on multiple element transactions including EnVision software license sales ratably over the PCS terms on these transactions since VSOE did not exist for any of the non-software elements in these multiple element transactions. The revision to revenue resulted in a decrease to revenue and an increase in operating loss of $587,000 for the year ended December 31, 2014. The revision also had the effect of increasing billings in excess by $1.2 million, decreasing unbilled receivables by $62,000, increasing prepaid expenses and other current assets by $291,000 and increasing the accumulated deficit by $415,000 at December 31, 2014as a result of the cumulative adjustment for prior periods. Certain prior year amounts have also been revised in the consolidated statements of cash flows to reflect the corrections to Net loss and changes in billings in excess, prepaid expenses and other assets. The revision had no impact on cash provided by operations or the net decrease in cash and cash equivalents. The Company assessed the materiality of these misstatements on prior periods' consolidated financial statements in accordance with SEC Staff Accounting Bulletin ("SAB") No. 99, Materiality Accounting Changes and Error Corrections Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements The following are selected line items from the Company's consolidated financial statements illustrating the effect of these corrections. GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2014 As Reported Adjustment As Revised ASSETS Contract receivables, net $ 15,830 $ (62 ) $ 15,768 Prepaid expenses and other current assets 1,703 291 1,994 Total currents assets 31,729 229 31,958 Total assets $ 45,999 $ 229 $ 46,228 LIABILITIES AND STOCKHOLDERS' EQUITY Billings in excess of revenue earned $ 8,684 $ 1,231 $ 9,915 Total current liabilities $ 20,273 $ 1,231 $ 21,504 Total liabilities $ 22,259 $ 1,231 $ 23,490 Accumulated deficit $ (45,142 ) $ (1,002 ) $ (46,144 ) Total stockholders' equity $ 23,740 $ (1,002 ) $ 22,738 Total liabilities and stockholders' equity $ 45,999 $ 229 $ 46,228 GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31, 2014 As Reported Adjustment As Revised Contract revenue $ 37,930 $ (394 ) $ 37,536 Cost of revenue 26,551 193 26,744 Gross profit 11,379 (587 ) 10,792 Operating loss (6,929 ) (587 ) (7,516 ) Loss before income taxes (6,576 ) (587 ) (7,163 ) Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Basic loss per common share $ (0.38 ) $ (0.03 ) $ (0.41 ) Diluted loss per common share $ (0.38 ) $ (0.03 ) $ (0.41 ) GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) Year ended December 31, 2014 (in thousands) As Reported Adjustment As Revised Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Comprehensive loss $ (7,359 ) $ (587 ) $ (7,946 ) GSE SYSTEMS, INC, AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands) Accumulated Deficit Total Stockholders' Equity As Reported Adjustment As Revised As Reported Adjustment As Revised Balance, December 31, 2013 $ (38,400 ) $ (415 ) $ (38,815 ) $ 30,387 $ (415 ) $ 29,972 Net loss (6,742 ) (587 ) (7,329 ) (6,742 ) (587 ) (7,329 ) Balance, December 31, 2014 $ (45,142 ) $ (1,002 ) $ (46,144 ) $ 23,740 $ (1,002 ) $ 22,738 GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2014 As Reported Adjustment As Revised Cash flows from operating activities: Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Changes in assets and liabilities: Contract receivables, net 10,285 62 10,347 Prepaid expenses and other assets 2,240 193 2,433 Billings in excess of revenue earned 2,109 332 2,441 Net cash provided by operating activities $ 6,649 $ - $ 6,649 Net decrease in cash and cash equivalents $ (2,060 ) $ - $ (2,060 ) |
Accounting estimates | Accounting estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates the estimates used, including but not limited to those related to revenue recognition, the allowance for doubtful accounts, estimates of future warranty costs, impairments of goodwill and other intangible assets and contingent consideration to be paid in business acquisitions, valuation of stock based compensation awards, and income taxes. Actual results could differ from these estimates. |
Revenue recognition | Revenue recognition The Company recognizes revenue through (1) fixed price contracts on the sale of uniquely designed/customized systems containing hardware, software and other materials which apply only to the Performance Improvement Solutions segment as well as (2) time and material contracts primarily through Nuclear Industry Training and Consulting support and service agreements. In accordance with ASC 605-35 , Construction-Type and Production-Type Contracts ) Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project. As the Company recognizes revenue under the percentage-of-completion method, it provides an accrual for estimated future warranty costs based on historical and projected claims experience. The Company's long-term contracts generally provide for a one-year warranty on parts, labor and any bug fixes as it relates to customized software embedded in the systems. The Company's system design contracts do not normally provide for "post contract support" ("PCS") in terms of software upgrades, software enhancements or telephone support. In order to obtain PCS, the customers must normally purchase a separate contract. Such PCS arrangements are generally for a one-year period renewable annually and include customer support, unspecified software upgrades, and maintenance releases. The Company recognizes revenue from these contracts ratably over the life of the agreements. Revenue from the sale of software licenses without other elements in the contract and which do not require significant modifications or customization for the Company's modeling tools are recognized when the license agreement is signed, the license fee is fixed and determinable, delivery has occurred, and collection is considered probable. We utilize written contracts as a means to establish the terms and conditions by which products support and services are sold to customers. Delivery is considered to have occurred when title and risk of loss have been transferred to the customer, which generally occurs after a license key has been delivered electronically to the customer. The Company also recognizes revenue from the sale of software licenses from contracts with multiple deliverables. These software license sales are evaluated under ASC 985-605, Software Revenue Recognition The Company recognizes revenue under time and materials contracts primarily from the Nuclear Industry Training and Consulting segment and certain cost-reimbursable contracts. Revenue on time and material contracts is recognized as services are rendered and performed. Under a typical time-and-materials billing arrangement, customers are billed on a regularly scheduled basis, such as biweekly or monthly. Any unbilled amounts are typically billed the following month. Under cost-reimbursable contracts, which are subject to a contract ceiling amount, we are reimbursed for allowable costs and paid a fee, which may be fixed or performance based. However, if costs exceed the contract ceiling or are not allowable under the provisions of the contract or applicable regulations, we may not be able to obtain reimbursement for all such costs. |
Cash and Cash Equivalents, Unrestricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents represent cash and highly liquid investments including money market accounts with maturities of three months or less at the date of purchase. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted cash Restricted cash consists of the cash collateralization of outstanding letters of credit used for various advance payment, bid, surety and performance bonds, and negative foreign exchange positions which have been segregated into restricted money market accounts with BB&T Bank. BB&T Bank has complete and unconditional control over the restricted money market accounts. At December 31, 2015 and 2014, the Company had approximately $3.5 million and $4.2 million, respectively, of cash in escrow accounts with BB&T Bank. The restricted cash balance has been classified within the consolidated balance sheets as follows: $1.8 million of current assets and $1.8 million of long term assets at December 31, 2015, respectively, compared to $613,000 of current assets and $3.6 million of long-term assets at December 31, 2014. The Company recorded interest income of $10,000 and $7,000 from the escrow accounts for the years ended December 31, 2015 and 2014, respectively. The interest earned on these restricted funds is added to the restricted cash balance. The Company classifies the restriction and release of the cash collateralization of outstanding letters of credit as an investing activity within the consolidated statements of cash flows, as these deposits are not related to borrowings against our line of credit. |
Contract receivables | Contract receivables, net Contract receivables include recoverable costs and accrued profit not billed which represents revenue recognized in excess of amounts billed. Billings in excess of costs and estimated earnings on uncompleted contracts in the accompanying consolidated balance sheets represent advanced billings to clients on contracts in advance of work performed. Generally, such amounts will be earned and recognized over the next twelve months. Billed receivables are recorded at invoiced amounts. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, and specific identification and review of customer accounts. The activity in the allowance for doubtful accounts is as follows: (in thousands) As of and for the years ended December 31, 2015 2014 Beginning balance $ 22 $ 2 Current year provision 101 22 Acquired allowance for doubtful accounts - 20 Current year write-offs (20 ) (22 ) Ending balance $ 103 $ 22 |
Equipment, software and leasehold improvements, net | Equipment, software and leasehold improvements, net Equipment and purchased software are recorded at cost and depreciated using the straight-line method with estimated useful lives ranging from three to ten years. Leasehold improvements are amortized over the life of the lease or the estimated useful life, whichever is shorter, using the straight-line method. Upon sale or retirement, the cost and related depreciation are eliminated from the respective accounts and any resulting gain or loss is included in operations. Maintenance and repairs are charged to expense as incurred. |
Software development costs | Software development costs Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon the establishment of technological feasibility. Capitalization ceases and amortization of capitalized costs begins when the software product is commercially available for general release to customers. Amortization of capitalized computer software development costs is included in cost of revenue and is determined using the straight-line method over the remaining estimated economic life of the product, typically three years. On an annual basis, and more frequently as conditions indicate, the Company assesses the recovery of the unamortized software development costs by estimating the net undiscounted cash flows expected to be generated by the sale of the product. If the undiscounted cash flows are not sufficient to recover the unamortized software costs the Company will write-down the investment to its estimated fair value based on the future undiscounted cash flows. The excess of any unamortized computer software costs over the related net realizable value is written down and charged to costs of revenue. |
Development expenditures | Development expenditures Development expenditures incurred to meet customer specifications under contracts are charged to contract costs. Company sponsored development expenditures are either charged to operations as incurred and are included in selling, general and administrative expenses or are capitalized as software development costs. See Note 8, Software development costs, net |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, such as equipment, purchased software, capitalized software development costs, and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized at the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. During the third quarter of 2015, the Company's new CEO conducted a review of the Company's organizational cost structure and software development plans. Based upon this review, the Company made the decision to terminate its Enterprise Data Management ("EDM") software development program and recorded a $1.5 million write-down of the capitalized balance of its EDM software development projects in the third quarter 2015. |
Goodwill and Intangible Assets | Goodwill and intangible assets The Company's intangible assets include amounts recognized in connection with business acquisitions, including customer relationships, contract backlog and software. Intangible assets are initially valued at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Amortization is recognized on a straight-line basis over the estimated useful life of the intangible assets, except for contract backlog and contractual customer relationships which are recognized in proportion to the related projected revenue streams. Intangible assets with definite lives are reviewed for impairment if indicators of impairment arise. The Company does not have any intangible assets with indefinite useful lives. Goodwill represents the excess of costs over fair value of assets of businesses acquired. The company reviews goodwill for impairment annually as of December 31 and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable in accordance with Accounting Standard Intangibles - Goodwill and Other (Topic 350): Testing Goodwill for Impairment, Intangibles — Goodwill and Other ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Under ASU 2011-08, an entity is not required to perform step one of the goodwill impairment test for a reporting unit if it is more likely than not that its fair value is greater than its carrying amount. For the annual goodwill impairment test as of December 31, 2015, the Company performed a quantitative step one goodwill impairment test and concluded that the fair values of each of the reporting units exceeded their respective carrying values. For the annual goodwill impairment test as of December 31, 2014, the Company performed a qualitative assessment as permitted by ASU 2011-08 for the goodwill on reporting units and determined that it was more likely than not that the fair values of each of the reporting units exceeded their respective carrying values. If it is determined as a result of the qualitative assessment permitted by ASU 2011-08 that the fair value of a reporting unit is greater than its carrying value, then no additional testing is performed. If the Step 0 test indicates the fair value of a reporting unit is less than its carrying value, the Company performs the additional impairment test in accordance with the provisions of ASC 350. |
Foreign currency translation | Foreign currency translation Balance sheet accounts for foreign operations are translated at the exchange rate as of the balance sheet date, and income statement accounts are translated at the average exchange rate for the period. The resulting translation adjustments are included in accumulated other comprehensive loss. Transaction gains and losses resulting from changes in exchange rates are recorded in operating loss in the period in which they occur. For the years ended December 31, 2015, and 2014, foreign currency transaction losses were approximately $30,000 and $180,000, respectively. |
Warranty | Accrued warranty As the Company recognizes revenue under the percentage-of-completion method, it provides an accrual for estimated future warranty costs based on historical experience and projected claims for contracts which contain a warranty provision. The activity in the accrued warranty accounts is as follows: (in thousands) As of and for the years ended December 31, 2015 2014 Beginning balance $ 1,456 $ 1,851 Current year provision 626 660 Current year claims (455 ) (1,025 ) Currency adjustment (13 ) (30 ) Ending balance $ 1,614 $ 1,456 |
Income taxes | Income taxes Income taxes are provided under the asset and liability method. Under this method, deferred income taxes are determined based on the differences between the consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. A provision is made for the Company's current liability for federal, state and foreign income taxes and the change in the Company's deferred income tax assets and liabilities. We establish accruals for uncertain tax positions taken or expected to be taken in a tax return when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Favorable or unfavorable adjustment of the accrual for any particular issue would be recognized as an increase or decrease to income tax expense in the period of a change in facts and circumstances. Interest and penalties related to income taxes are accounted for as income tax expense. |
Stock-based compensation | Stock-based compensation Compensation expense related to share based awards is recognized on a pro rata straight-line basis based on the value of share awards that are scheduled to vest during the requisite service period. During the years ended December 31, 2015, and 2014 the Company recognized $541,000, and $712,000, respectively, of pre-tax stock-based compensation expense under the fair value method. As of December 31, 2015, the Company had $1.1 million of unrecognized compensation expense related to the unvested portion of outstanding share based awards expected to be recognized through October 2019. |
Income (Loss) per share | Loss per share Basic loss per share is based on the weighted average number of outstanding common shares for the period. Diluted loss per share adjusts the weighted average shares outstanding for the potential dilution that could occur if outstanding vested stock options were exercised. The number of common shares and common share equivalents used in the determination of basic and diluted loss per share were as follows: (in thousands, except for per share data) Years ended December 31, 2015 2014 Numerator: Net loss attributed to common stockholders $ (4,705 ) $ (7,329 ) Denominator: Weighted-average shares outstanding for basic loss per share 17,892,891 17,887,859 Effect of dilutive securities: Stock options and restricted stock units - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 17,892,891 17,887,859 Shares related to dilutive securities excluded because inclusion would be anti-dilutive 2,492,710 2,811,709 Conversion of outstanding stock options and restricted stock units was not assumed for the years ended December 31, 2015 and 2014 because the impact was anti-dilutive. |
Concentration of credit risk | Significant Customers and Concentration of credit risk The Company is subject to concentration of credit risk with respect to contract receivables. Credit risk on contract receivables is mitigated by the nature of the Company's worldwide customer base and its credit policies. The Company's customers are not concentrated in any specific geographic region, but are concentrated in the energy industry. The following customer accounted for more than 10% of the Company's consolidated contract receivables for the indicated periods: December 31, 2015 2014 State Nuclear Power Automation System Engineering Co. 0.7% 10.2% In addition, we have a concentration of revenue from a single customer, which accounted for approximately 15.9% of our consolidated revenue for the year ended December 31, 2015. No other single customer accounted for more than 10% of our consolidated revenue in 2015. In 2014, we did not have a single customer who accounted for more than 10% of our consolidated revenue. |
Fair values of financial instruments | Fair values of financial instruments The carrying amounts of current assets and current liabilities reported in the consolidated balance sheets approximate fair value due to their short term duration. |
Contingent Consideration for Business Acquisitions | Contingent consideration for business acquisitions Acquisitions may include contingent consideration payments based on future financial measures of an acquired company. Contingent consideration is required to be recognized at fair value as of the acquisition date. The Company estimates the fair value of these liabilities based on financial projections of the acquired companies and estimated probabilities of achievement. At each reporting date, the contingent consideration obligation is revalued to estimated fair value and changes in fair value subsequent to the acquisition are reflected in income or expense in the consolidated statements of operations, and could cause a material impact to our operating results. Changes in the fair value of contingent consideration obligations may result from changes in discount periods and rates, changes in the timing and amount of revenue and/or earnings estimates and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria. |
Derivative instruments | Derivative instruments The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates. It is the Company's policy to use such derivative financial instruments to protect against market risk arising in the normal course of business in order to reduce the impact of these exposures. The Company minimizes credit exposure by limiting counterparties to nationally recognized financial institutions. As of December 31, 2015, the Company had foreign exchange contracts outstanding of approximately 2.1 million Euro, 1.3 million Canadian Dollars, 0.5 million Pounds Sterling, and 0.4 million Australian Dollars. At December 31, 2014, the Company had foreign exchange contracts outstanding of approximately 1.4 million Euro, 0.8 million Australian Dollars, 0.5 million Malaysian Ringgit, and 0.3 million Pounds Sterling at fixed rates. The contracts expire on various dates through January 2017. The Company had not designated the foreign exchange contracts as hedges and had recorded the estimated fair value of the contracts in the consolidated balance sheet as follows: December 31, (in thousands) 2015 2014 Asset derivatives Prepaid expenses and other current assets $ 115 $ 71 Other assets 6 21 121 92 Liability derivatives Other current liabilities (57 ) (23 ) Other liabilities - (1 ) (57 ) (24 ) Net fair value $ 64 $ 68 The changes in the fair value of the foreign exchange contracts are included in gain (loss) on derivative instruments, net in the consolidated statements of operations. The foreign currency denominated trade receivables, unbilled receivables, billings in excess of revenue earned and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each period into the functional currency using the current exchange rate at the end of the period. The gain or loss resulting from such remeasurement is also included in gain (loss) on derivative instruments net in the consolidated statements of operations. For the years ended December 31, 2015, and 2014, the Company recognized a gain (loss) on its derivative instruments net as outlined below: Years ended December 31, (in thousands) 2015 2014 Foreign exchange contracts- change in fair value $ (6 ) $ 365 Remeasurement of related contract receivables and billings in excess of revenue earned (34 ) (156 ) $ (40 ) $ 209 |
Reclassification | Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. |
New accounting standards | Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers , which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today's guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. This guidance will be effective for the Company in the first quarter of its fiscal year ending December 31, 2018, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently in the process of evaluating the impact of its pending adoption of this ASU on the Company's consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," ("ASU 2016-02"). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company is still evaluating the impact of the pending adoption of the new standard on the consolidated financial statements, and the Company expects that upon adoption the recognition of ROU assets and lease liabilities could be material. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Revisions | The following are selected line items from the Company's consolidated financial statements illustrating the effect of these corrections. GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, 2014 As Reported Adjustment As Revised ASSETS Contract receivables, net $ 15,830 $ (62 ) $ 15,768 Prepaid expenses and other current assets 1,703 291 1,994 Total currents assets 31,729 229 31,958 Total assets $ 45,999 $ 229 $ 46,228 LIABILITIES AND STOCKHOLDERS' EQUITY Billings in excess of revenue earned $ 8,684 $ 1,231 $ 9,915 Total current liabilities $ 20,273 $ 1,231 $ 21,504 Total liabilities $ 22,259 $ 1,231 $ 23,490 Accumulated deficit $ (45,142 ) $ (1,002 ) $ (46,144 ) Total stockholders' equity $ 23,740 $ (1,002 ) $ 22,738 Total liabilities and stockholders' equity $ 45,999 $ 229 $ 46,228 GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31, 2014 As Reported Adjustment As Revised Contract revenue $ 37,930 $ (394 ) $ 37,536 Cost of revenue 26,551 193 26,744 Gross profit 11,379 (587 ) 10,792 Operating loss (6,929 ) (587 ) (7,516 ) Loss before income taxes (6,576 ) (587 ) (7,163 ) Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Basic loss per common share $ (0.38 ) $ (0.03 ) $ (0.41 ) Diluted loss per common share $ (0.38 ) $ (0.03 ) $ (0.41 ) GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) Year ended December 31, 2014 (in thousands) As Reported Adjustment As Revised Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Comprehensive loss $ (7,359 ) $ (587 ) $ (7,946 ) GSE SYSTEMS, INC, AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands) Accumulated Deficit Total Stockholders' Equity As Reported Adjustment As Revised As Reported Adjustment As Revised Balance, December 31, 2013 $ (38,400 ) $ (415 ) $ (38,815 ) $ 30,387 $ (415 ) $ 29,972 Net loss (6,742 ) (587 ) (7,329 ) (6,742 ) (587 ) (7,329 ) Balance, December 31, 2014 $ (45,142 ) $ (1,002 ) $ (46,144 ) $ 23,740 $ (1,002 ) $ 22,738 GSE SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2014 As Reported Adjustment As Revised Cash flows from operating activities: Net loss $ (6,742 ) $ (587 ) $ (7,329 ) Changes in assets and liabilities: Contract receivables, net 10,285 62 10,347 Prepaid expenses and other assets 2,240 193 2,433 Billings in excess of revenue earned 2,109 332 2,441 Net cash provided by operating activities $ 6,649 $ - $ 6,649 Net decrease in cash and cash equivalents $ (2,060 ) $ - $ (2,060 ) |
Schedule of Allowance for Doubtful Accounts | The activity in the allowance for doubtful accounts is as follows: (in thousands) As of and for the years ended December 31, 2015 2014 Beginning balance $ 22 $ 2 Current year provision 101 22 Acquired allowance for doubtful accounts - 20 Current year write-offs (20 ) (22 ) Ending balance $ 103 $ 22 |
Schedule of Warranties | The activity in the accrued warranty accounts is as follows: (in thousands) As of and for the years ended December 31, 2015 2014 Beginning balance $ 1,456 $ 1,851 Current year provision 626 660 Current year claims (455 ) (1,025 ) Currency adjustment (13 ) (30 ) Ending balance $ 1,614 $ 1,456 |
Schedule of Earnings Per Share, Basic and Diluted | The number of common shares and common share equivalents used in the determination of basic and diluted loss per share were as follows: (in thousands, except for per share data) Years ended December 31, 2015 2014 Numerator: Net loss attributed to common stockholders $ (4,705 ) $ (7,329 ) Denominator: Weighted-average shares outstanding for basic loss per share 17,892,891 17,887,859 Effect of dilutive securities: Stock options and restricted stock units - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 17,892,891 17,887,859 Shares related to dilutive securities excluded because inclusion would be anti-dilutive 2,492,710 2,811,709 |
Percentage of Receivable by Major Customers | The Company is subject to concentration of credit risk with respect to contract receivables. Credit risk on contract receivables is mitigated by the nature of the Company's worldwide customer base and its credit policies. The Company's customers are not concentrated in any specific geographic region, but are concentrated in the energy industry. The following customer accounted for more than 10% of the Company's consolidated contract receivables for the indicated periods: December 31, 2015 2014 State Nuclear Power Automation System Engineering Co. 0.7% 10.2% |
Schedule of Foreign Exchange Contracts, Statement of Financial Position | As of December 31, 2015, the Company had foreign exchange contracts outstanding of approximately 2.1 million Euro, 1.3 million Canadian Dollars, 0.5 million Pounds Sterling, and 0.4 million Australian Dollars. At December 31, 2014, the Company had foreign exchange contracts outstanding of approximately 1.4 million Euro, 0.8 million Australian Dollars, 0.5 million Malaysian Ringgit, and 0.3 million Pounds Sterling at fixed rates. The contracts expire on various dates through January 2017. The Company had not designated the foreign exchange contracts as hedges and had recorded the estimated fair value of the contracts in the consolidated balance sheet as follows: December 31, (in thousands) 2015 2014 Asset derivatives Prepaid expenses and other current assets $ 115 $ 71 Other assets 6 21 121 92 Liability derivatives Other current liabilities (57 ) (23 ) Other liabilities - (1 ) (57 ) (24 ) Net fair value $ 64 $ 68 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | For the years ended December 31, 2015, and 2014, the Company recognized a gain (loss) on its derivative instruments net as outlined below: Years ended December 31, (in thousands) 2015 2014 Foreign exchange contracts- change in fair value $ (6 ) $ 365 Remeasurement of related contract receivables and billings in excess of revenue earned (34 ) (156 ) $ (40 ) $ 209 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the purchase price and purchase price allocation for the acquisition of Hyperspring on November 14, 2014. Hyperspring ( in thousands Cash purchase price $ 3,000 Fair value of contingent consideration 3,953 Total purchase price $ 6,953 Purchase price allocation: Cash $ 152 Contract receivables 1,719 Prepaid expenses and other current assets 23 Property and equipment, net 12 Intangible assets 779 Goodwill 5,612 Total assets 8,297 Line of credit 749 Accounts payable, accrued expenses, and other liabilities 586 Billings in excess of revenue earned 9 Total liabilities 1,344 Net assets acquired $ 6,953 |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | As of December 31, 2015 and 2014, current contingent consideration totaled $2.6 million and $2.8 million, respectively. As of December 31, 2015 and 2014, the Company also had accrued contingent consideration totaling $1.1 million and $1.9 million, respectively, which is included in long-term liabilities on the consolidated balance sheet and represents the portion of contingent consideration estimated to be payable greater than twelve months from the balance sheet date. The breakdown of contingent consideration as it relates to the Company's acquisitions is given below. (in thousands) December 31, 2015 2014 Hyperspring, LLC $ 2,647 $ 2,152 IntelliQlik, LLC - 213 EnVision Systems, Inc. - 477 Current contingent consideration $ 2,647 $ 2,842 Hyperspring, LLC $ 1,085 $ 1,948 Contingent consideration $ 1,085 $ 1,948 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible Assets Subject to Amortization The following table shows the gross carrying amount and accumulated amortization of definite-lived intangible assets: (in thousands) As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets Customer relationships $ 1,425 $ (1,061 ) $ 364 Non-contractual customer relationships 911 (669 ) 242 Developed technology 471 (295 ) 176 In process research and development 152 (142 ) 10 Contract backlog 36 (36 ) - Trade names and other 29 (29 ) - Foreign currency translation (28 ) 11 (17 ) Total $ 2,996 $ (2,221 ) $ 775 (in thousands) As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets Customer relationships $ 1,425 $ (695 ) $ 730 Non-contractual customer relationships 911 (618 ) 293 Developed technology 471 (236 ) 235 In process research and development 152 (136 ) 16 Contract backlog 36 (36 ) - Trade names and other 29 (29 ) - Foreign currency translation 7 (2 ) 5 Total $ 3,031 $ (1,752 ) $ 1,279 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense related to definite-lived intangible assets totaled $494,000 and $193,000 for the years ended December 31, 2015 and 2014, respectively. The following table shows the estimated amortization expense of the definite-lived intangible assets for the next five years and thereafter: (in thousands) Years ended December 31,: 2016 $ 294 2017 204 2018 158 2019 71 2020 33 Thereafter 15 $ 775 |
Contract Receivables (Tables)
Contract Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Contract Receivables [Abstract] | |
Components of Contract Receivables | Contract receivables represent balances due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months. Recoverable costs and accrued profit not billed represent costs incurred and associated profit accrued on contracts that will become billable upon future milestones or completion of contracts. The components of contract receivables are as follows: (in thousands) December 31, 2015 2014 Billed receivables $ 9,831 $ 10,792 Recoverable costs and accrued profit not billed 3,325 4,998 Allowance for doubtful accounts (103 ) (22 ) Total contract receivables, net $ 13,053 $ 15,768 |
Prepaid Expenses and Other Cu32
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following: (in thousands) December 31, 2015 2014 Prepaid expenses $ 639 $ 539 Deferred income taxes- current 18 27 Income tax receivable 425 533 Other current assets 1,424 895 Total $ 2,506 $ 1,994 |
Equipment, Software, and Leas33
Equipment, Software, and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equipment, Software and Leasehold Improvements [Abstract] | |
Equipment, Software and Leasehold Improvements | Equipment, software and leasehold improvements, net consist of the following: (in thousands) December 31, 2015 2014 Computer equipment $ 3,211 $ 3,235 Software 1,474 1,429 Leasehold improvements 542 543 Furniture and fixtures 1,776 1,848 7,003 7,055 Accumulated depreciation (5,407 ) (5,229 ) Equipment, software and leasehold improvements, net $ 1,596 $ 1,826 |
Software Development Costs (Tab
Software Development Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Software Development Costs, net [Abstract] | |
Schedule of Software Development Costs | Software development costs, net consist of the following: (in thousands) December 31, 2015 2014 Beginning balance $ 1,414 $ 1,020 Additions 1,610 646 Amortization (341 ) (252 ) Impairments (1,538 ) - Ending balance $ 1,145 $ 1,414 |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table presents assets and liabilities measured at fair value at December 31, 2015: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total Money market funds $ 8,979 $ - $ - $ 8,979 Foreign exchange contracts - 121 - 121 Total assets $ 8,979 $ 121 $ - $ 9,100 Foreign exchange contracts $ - $ (57 ) $ - $ (57 ) Contingent consideration liability - - (3,732 ) (3,732 ) Total liabilities $ - $ (57 ) $ (3,732 ) $ (3,789 ) The following table presents assets and liabilities measured at fair value at December 31, 2014: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total Money market funds $ 11,661 $ - $ - $ 11,661 Foreign exchange contracts - 92 - 92 Total assets $ 11,661 $ 92 $ - $ 11,753 Foreign exchange contracts $ - $ (24 ) $ - $ (24 ) Contingent consideration liability - - (4,790 ) (4,790 ) Total liabilities $ - $ (24 ) $ (4,790 ) $ (4,814 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
BB&T Bank Loan Agreement debt covenants | On September 9, 2014, the Company signed a Third Comprehensive Amendment to the Master Loan and Security Agreement. According to the Third Amendment, the Company is to maintain a segregated cash collateral account at Susquehanna Bank (now BB&T Bank) equal to the greater of (i) $3.0 million or (ii) the aggregate principal amounts of all Loans outstanding under the Revolving Credit Facility (including any issued and outstanding letters of credit, working capital advances, and negative foreign exchange positions) as security for the Company's obligations. Under this Amendment, BB&T Bank shall have complete and unconditional control over the cash collateral account. On September 30, 2014, Susquehanna Bank collateralized the outstanding letters of credit issued under the line of credit. At December 31, 2015 and 2014 the cash collateral account totaled $3.5 million and $4.2 million, respectively, and was classified as restricted cash on the consolidated balance sheets. The credit agreement contains certain restrictive covenants regarding future acquisitions and incurrence of debt. On July 31, 2015, the Company signed a Fifth Comprehensive Amendment to the Master Loan and Security Agreement in which the Company's financial covenants were reduced from four to two, and the covenant targets were adjusted. As of Covenant December 31, 2015 Minimum tangible capital base Must exceed $10.5 million $10.8 million Quick ratio Must exceed 1.00 : 1.00 1.44 : 1.00 As of December 31, 2015, the Company was in compliance with its financial covenants as defined above. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The consolidated loss before income taxes, by domestic and foreign sources, is as follows: (in thousands) Years ended December 31, 2015 2014 Domestic $ (4,260 ) $ (5,195 ) Foreign 26 (1,968 ) Total $ (4,234 ) $ (7,163 ) |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is as follows: (in thousands) Years ended December 31, 2015 2014 Current: Federal $ - $ - State 12 10 Foreign 288 178 Subtotal 300 188 Deferred: Federal 146 24 Foreign 25 (46 ) Subtotal 171 (22 ) Total $ 471 $ 166 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate differed from the statutory federal income tax rate due to the following: Effective Tax Rate Percentage (%) Years ended December 31, 2015 2014 Statutory federal income tax rate 34.0% 34.0% State income taxes, net of federal tax benefit (0.2)% (0.1)% Effect of foreign operations (3.0)% (10.2)% Change in valuation allowance (33.8)% (22.8)% Permanent differences (3.6)% (2.1)% Other (4.5)% (1.3)% Effective tax rate (11.1)% (2.5)% |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes arise from temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. A summary of the tax effect of the significant components of the deferred income tax liabilities is as follows: (in thousands) As of December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 8,732 $ 7,745 Capital loss carryforwards 954 615 Accruals 766 485 Reserves 615 521 Alternative minimum tax credit carryforwards 166 166 Stock-based compensation expense 1,450 1,445 Other 199 39 Total deferred tax asset 12,882 11,016 Valuation allowance (12,082 ) (10,006 ) Total deferred tax asset less valuation allowance 800 1,010 Deferred tax liabilities: Undistributed earnings of foreign subsidiary (17 ) (102 ) Software development costs (446 ) (542 ) Other (538 ) (397 ) Total deferred tax liability (1,001 ) (1,041 ) Net deferred tax liability $ (201 ) $ (31 ) |
Summary of Income Tax Contingencies [Table Text Block] | The following table outlines the Company's foreign uncertain tax liabilities. China Ukraine (in thousands) Tax Interest and Penalties Tax Interest and Penalties Total Balance, December 31, 2013 $ 199,000 $ - $ 61,000 $ - $ 260,000 Increases 23,000 - - - 23,000 Decreases - - - - - Balance, December 31, 2014 $ 222,000 $ - $ 61,000 $ - $ 283,000 Increases 3,000 152,000 - 15,000 170,000 Decreases - - 40,000 - 40,000 Balance, December 31, 2015 $ 225,000 $ 152,000 $ 21,000 $ 15,000 $ 413,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | Information with respect to stock option activity as of and for the year ended December 31, 2015 is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2014 2,708,273 $ 3.12 Options granted 240,000 1.58 Options exercised (14,000 ) 1.65 Options forfeited (711,940 ) 2.97 Options outstanding at December 31, 2015 2,222,333 3.01 $ 831 2.78 Options expected to vest 218,522 1.76 $ 142 3.74 Options exercisable at December 31, 2015 2,003,811 $ 3.15 $ 689 2.68 Information with respect to stock option activity as of and for the year ended December 31, 2014 is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Options outstanding at December 31, 2013 3,035,987 $ 3.38 Options granted 158,573 2.03 Options exercised - - Options forfeited 486,287 4.35 Options outstanding at December 31, 2014 2,708,273 3.12 $ - 3.55 Options expected to vest 681,983 2.23 $ - 4.48 Options exercisable at December 31, 2014 2,026,290 $ 3.42 $ - 3.23 |
Schedule of Nonvested Share Activity | A summary of the status of the Company's nonvested options as of and for the year ended December 31, 2015 is presented below. Number of Shares Weighted Average Fair Value Nonvested options at December 31, 2014 681,983 $ 1.22 Options granted 240,000 0.55 Options forfeited (295,903 ) 0.94 Options vested during the period (407,558 ) 1.21 Nonvested options at December 31, 2015 218,522 $ 0.89 A summary of the status of the Company's nonvested options as of and for the year ended December 31, 2014 is presented below. Number of Shares Weighted Average Fair Value Nonvested options at December 31, 2013 1,287,801 $ 1.33 Options granted 158,573 0.67 Options forfeited (190,433 ) 1.29 Options vested during the period (573,958 ) 1.29 Nonvested options at December 31, 2014 681,983 $ 1.22 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The Company uses a Black-Scholes valuation model to estimate the fair value of the options at grant date based on the assumptions noted in the following table. Volatility represents an average of market estimates for implied volatility of GSE common stock. The expected life is estimated based on an analysis of options already exercised and any foreseeable trends or changes in recipients' behavior. The risk-free interest rate is an interpolation of the relevant U.S. Treasury security maturities as of each applicable grant date: Years ended December 31, 2015 2014 Risk-free interest rates 0.93 - 2.04% 1.29 - 2.15% Dividend yield 0% 0% Expected life 3.03 - 7.00 years 3.81 - 7.00 years Volatility 45.94 - 49.44% 49.89 - 50.34% Weighted average volatility 47.45% 50.06% |
Restricted Stock Units | Restricted Stock Units ("RSUs") I Number of Shares Weighted Average Fair Value Nonvested RSUs at December 31, 2014 - $ - RSUs granted 1,367,500 0.76 RSUs forfeited - - RSUs vested - - Nonvested RSUs at December 31, 2015 1,367,500 $ 0.76 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company is obligated under certain noncancelable operating leases for office facilities and equipment. Future minimum lease payments under noncancelable operating leases as of December 31, 2015 are as follows: (in thousands) Gross Future Minimum Lease Payments 2016 $ 1,036 2017 930 2018 771 2019 750 2020 604 Thereafter 1,562 Total $ 5,653 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated loss before income taxes. Prior year amounts have been revised to correct misstatements that were deemed to be immaterial to both the current and prior periods. Nuclear Industry Training and Consulting's results are included in 2014 beginning on November 14, 2014, the date Hyperspring was acquired by the Company. (in thousands) Years ended December 31, 2015 2014 Contract revenue: Performance Improvement Solutions $ 37,074 $ 35,281 Nuclear Industry Training and Consulting 19,729 2,255 $ 56,803 $ 37,536 Operating income (loss): Performance Improvement Solutions $ (4,465 ) $ (7,392 ) Nuclear Industry Training and Consulting 1,178 105 Loss on change in fair value of contingent consideration, net (849 ) (229 ) Operating loss $ (4,136 ) $ (7,516 ) Interest income, net 88 143 Gain (loss) on derivative instruments, net (40 ) 209 Other income (expense), net (146 ) 1 Loss before income taxes $ (4,234 ) $ (7,163 ) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Additional information relating to segments is as follows: (in thousands) December 31, 2015 2014 Identifiable assets: Performance Improvement Solutions $ 30,634 $ 38,538 Nuclear Industry Training and Consulting 8,884 8,090 Intercompany receivable elimination (147 ) (400 ) Total assets $ 39,371 $ 46,228 |
Schedule of Segment Reporting Information, by Segment | For the years ended December 31, 2015 and 2014, 71% and 61%, respectively, of the Company's consolidated revenue was from customers in the nuclear power industry. The Company designs, develops and delivers business and technology solutions to the energy industry worldwide. Revenue, operating loss and total assets for the Company's United States, European, and Asian subsidiaries as of and for the years ended December 31, 2015 and 2014 are as follows: (in thousands) Year ended December 31, 2015 United States Europe Asia Eliminations Consolidated Contract revenue $ 49,585 $ 5,260 $ 1,958 $ - $ 56,803 Transfers between geographic locations 1,400 183 1,429 (3,012 ) - Total contract revenue $ 50,985 $ 5,443 $ 3,387 $ (3,012 ) $ 56,803 Operating loss $ (4,053 ) $ (1 ) $ (82 ) $ - $ (4,136 ) Total assets, at December 31 $ 102,325 $ 4,991 $ 3,915 $ (71,860 ) $ 39,371 (in thousands) Year ended December 31, 2014 United States Europe Asia Eliminations Consolidated Contract revenue $ 28,644 $ 6,414 $ 2,478 $ - $ 37,536 Transfers between geographic locations 2,176 741 1,242 (4,159 ) - Total contract revenue $ 30,820 $ 7,155 $ 3,720 $ (4,159 ) $ 37,536 Operating loss $ (5,330 ) $ (2,094 ) $ (92 ) $ - $ (7,516 ) Total assets, at December 31 $ 116,586 $ 5,828 $ 4,694 $ (80,880 ) $ 46,228 |
Supplemental Disclosure of Ca41
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Disclosure of Cash Flow Information [Abstract] | |
Schedule of Supplemental Disclosure of Cash Flow Information | (in thousands) Year ended December 31, 2015 2014 Cash paid: Interest $ 3 $ 1 Income taxes $ 119 $ 395 Non-cash financing activities: Hyperspring (1) $ - $ 3,953 IntelliQlik, LLC (2) - 207 Total accrued contingent consideration $ - $ 4,160 (1) Total accrued contingent consideration recorded on November 14, 2014, the date of the Hyperspring acquisition. (2) Total accrued contingent consideration recorded on November 14, 2014, the date of the Company's investment in IntelliQlik. |
Equity Method Investments and42
Equity Method Investments and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | Schedule of Equity Losses We had the following net losses from equity method investments during the years ended December 31, 2015 and 2014. The losses from equity method investments are included in other income (expense), net within the consolidated statements of operations. (in thousands) Years ended December 31, 2015 2014 Equity Method Investments IntelliQlik, LLC $ (233 ) $ (17 ) General Simulation Engineering RUS LLC - (38 ) Total loss from equity method investments $ (233 ) $ (55 ) |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Segmentshares | Dec. 31, 2014USD ($)shares | |
Summary of Significant Accounting Policies [Abstract] | ||
Term of warranty | 1 year | |
Period of post customer support service (PCS) | 1 year | |
Cash and Cash Equivalents [Abstract] | ||
Money market accounts | $ 5,400,000 | $ 7,500,000 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 1,771,000 | 613,000 |
Long-term restricted cash | $ 1,779,000 | 3,591,000 |
Maximum maturity period for highly liquid investments to be considered cash equivalents | 3 months | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Beginning balance | $ 22,000 | 2,000 |
Current year provision | 101,000 | 22,000 |
Allowance for Doubtful Accounts Receivable, Write-offs | (20,000) | (22,000) |
Allowance for Doubtful Accounts Receivable, Business Combination, Acquired Receivables, Period Increase (Decrease) | 0 | 20,000 |
Allowance for Doubtful Accounts Receivable, Period Increase (Decrease), Total | 81,000 | 20,000 |
Ending balance | $ 103,000 | 22,000 |
Software Development Costs, net [Abstract] | ||
Software Development Costs Useful Life | 3 years | |
Write down of capitalized software development costs | 0 | |
Development Expenditures [Abstract] | ||
Development Expenditures | $ 3,100,000 | 3,800,000 |
Goodwill and Intangible Assets [Abstract] | ||
Number of Reporting Units | Segment | 2 | |
Foreign Currency Translation [Abstract] | ||
Foreign currency transaction gains (losses) | $ (30,000) | (180,000) |
Product Warranty [Roll Forward] | ||
Beginning balance | 1,456,000 | 1,851,000 |
Current year provision | 626,000 | 660,000 |
Current year claims | (455,000) | (1,025,000) |
Currency adjustment | (13,000) | (30,000) |
Standard Product Warranty Accrual, Period Increase (Decrease), Total | 158,000 | (395,000) |
Ending balance | 1,614,000 | 1,456,000 |
Stock-Based Compensation [Abstract] | ||
Share based compensation expense | 541,000 | 712,000 |
Unrecognized compensation expense | 1,100,000 | |
Numerator: [Abstract] | ||
Net income (loss) attributed to common stockholders | $ (4,705,000) | $ (7,329,000) |
Denominator: [Abstract] | ||
Weighted-average shares outstanding for basic earnings per share (in shares) | shares | 17,892,891 | 17,887,859 |
Effect of Dilutive Securities: [Abstract] | ||
Employee stock options and warrants (in shares) | shares | 0 | 0 |
Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share (in shares) | shares | 17,892,891 | 17,887,859 |
Shares related to dilutive securities excluded because inclusion would be anti-dilutive (in shares) | shares | 2,492,710 | 2,811,709 |
In the money options and warrants (in shares) | shares | 0 | |
Interest-bearing Deposits [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalent Item, Description | Restricted cash consists of the cash collateralization of outstanding letters of credit used for various advance payment, bid, surety and performance bonds, and negative foreign exchange positions which have been segregated into restricted money market accounts with BB&T Bank. | |
Restricted cash | $ 1,771,000 | $ 613,000 |
Long-term restricted cash | 1,779,000 | 3,591,000 |
Interest Income, Other Domestic Deposits | $ 10,000 | $ 7,000 |
Equipment, Software and Leasehold Improvements, net [Member] | Maximum [Member] | ||
Equipment, software and leasehold improvements, net [Abstract] | ||
Estimated useful life | 10 years | |
Equipment, Software and Leasehold Improvements, net [Member] | Minimum [Member] | ||
Equipment, software and leasehold improvements, net [Abstract] | ||
Estimated useful life | 3 years |
Summary of Significant Accoun44
Summary of Significant Accounting Policies, Revisions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | ||||
Contract receivables, net | $ 13,053 | $ 15,768 | ||
Prepaid expenses and other current assets | 2,506 | 1,994 | ||
Total current assets | 28,414 | 31,958 | ||
Total assets | 39,371 | 46,228 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Billings in excess of revenue earned | 9,229 | 9,915 | ||
Total current liabilities | 19,708 | 21,504 | ||
Total liabilities | 21,003 | 23,490 | ||
Accumulated deficit | (50,849) | (46,144) | ||
Total stockholders' equity | $ 18,368 | $ 22,738 | 18,368 | 22,738 |
Total liabilities and stockholders' equity | 39,371 | 46,228 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Contract revenue | 56,803 | 37,536 | ||
Cost of revenue | 42,406 | 26,744 | ||
Gross profit | 12,859 | 10,792 | ||
Operating loss | (4,136) | (7,516) | ||
Loss before income taxes | (4,234) | (7,163) | ||
Net loss | $ (4,705) | $ (7,329) | ||
Basic loss per common share | $ (0.26) | $ (0.41) | ||
Diluted loss per common share | $ (0.26) | $ (0.41) | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (4,705) | $ (7,329) | ||
Comprehensive loss | (4,934) | (7,946) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | 22,738 | 29,972 | ||
Net loss | (4,705) | (7,329) | ||
Balance | 18,368 | 22,738 | ||
Cash flows from operating activities | ||||
Net loss | (4,705) | (7,329) | ||
Changes in assets and liabilities | ||||
Contract receivables, net | (2,530) | (10,347) | ||
Prepaid expenses and other assets | 501 | (2,433) | ||
Billings in excess of revenue earned | (552) | 2,441 | ||
Net cash provided by operating activities | 1,016 | 6,649 | ||
Net decrease in cash and cash equivalents | (2,499) | (2,060) | ||
Accumulated Deficit [Member] | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total stockholders' equity | (46,144) | (38,815) | $ (50,849) | (46,144) |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net loss | (4,705) | (7,329) | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | (4,705) | (7,329) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (46,144) | (38,815) | ||
Net loss | (4,705) | (7,329) | ||
Balance | (50,849) | (46,144) | ||
Cash flows from operating activities | ||||
Net loss | (4,705) | (7,329) | ||
Scenario, Previously Reported [Member] | ||||
ASSETS | ||||
Contract receivables, net | 15,830 | |||
Prepaid expenses and other current assets | 1,703 | |||
Total current assets | 31,729 | |||
Total assets | 45,999 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Billings in excess of revenue earned | 8,684 | |||
Total current liabilities | 20,273 | |||
Total liabilities | 22,259 | |||
Accumulated deficit | (45,142) | |||
Total stockholders' equity | 23,740 | 23,740 | 23,740 | |
Total liabilities and stockholders' equity | 45,999 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Contract revenue | 37,930 | |||
Cost of revenue | 26,551 | |||
Gross profit | 11,379 | |||
Operating loss | (6,929) | |||
Loss before income taxes | (6,576) | |||
Net loss | $ (6,742) | |||
Basic loss per common share | $ (0.38) | |||
Diluted loss per common share | $ (0.38) | |||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (6,742) | |||
Comprehensive loss | (7,359) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | 23,740 | 30,387 | ||
Net loss | (6,742) | |||
Balance | 23,740 | |||
Cash flows from operating activities | ||||
Net loss | (6,742) | |||
Changes in assets and liabilities | ||||
Contract receivables, net | (10,285) | |||
Prepaid expenses and other assets | (2,240) | |||
Billings in excess of revenue earned | 2,109 | |||
Net cash provided by operating activities | 6,649 | |||
Net decrease in cash and cash equivalents | (2,060) | |||
Scenario, Previously Reported [Member] | Accumulated Deficit [Member] | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total stockholders' equity | (45,142) | (38,400) | (45,142) | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net loss | (6,742) | |||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | (6,742) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (45,142) | (38,400) | ||
Net loss | (6,742) | |||
Balance | (45,142) | |||
Cash flows from operating activities | ||||
Net loss | (6,742) | |||
Restatement Adjustment [Member] | ||||
ASSETS | ||||
Contract receivables, net | (62) | |||
Prepaid expenses and other current assets | 291 | |||
Total current assets | 229 | |||
Total assets | 229 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Billings in excess of revenue earned | 1,231 | |||
Total current liabilities | 1,231 | |||
Total liabilities | 1,231 | |||
Accumulated deficit | (1,002) | |||
Total stockholders' equity | (1,002) | (1,002) | (1,002) | |
Total liabilities and stockholders' equity | 229 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Contract revenue | (394) | |||
Cost of revenue | 193 | |||
Gross profit | (587) | |||
Operating loss | (587) | |||
Loss before income taxes | (587) | |||
Net loss | $ (587) | |||
Basic loss per common share | $ (0.03) | |||
Diluted loss per common share | $ (0.03) | |||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (587) | |||
Comprehensive loss | (587) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | (1,002) | (415) | ||
Net loss | (587) | |||
Balance | (1,002) | |||
Cash flows from operating activities | ||||
Net loss | (587) | |||
Changes in assets and liabilities | ||||
Contract receivables, net | (62) | |||
Prepaid expenses and other assets | (193) | |||
Billings in excess of revenue earned | 332 | |||
Net cash provided by operating activities | 0 | |||
Net decrease in cash and cash equivalents | 0 | |||
Restatement Adjustment [Member] | Accumulated Deficit [Member] | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total stockholders' equity | (1,002) | (415) | $ (1,002) | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net loss | (587) | |||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | (587) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance | $ (1,002) | (415) | ||
Net loss | (587) | |||
Balance | (1,002) | |||
Cash flows from operating activities | ||||
Net loss | $ (587) |
Summary of Significant Accoun45
Summary of Significant Accounting Policies, Concentration of Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue by major customers [Abstract] | ||
Percentage of revenue contributed by major customers (in hundredths) | 15.90% | |
Net Receivables [Member] | ||
Receivable by major customers [Abstract] | ||
Concentration Risk, Benchmark Description | more than 10% of the Company’s consolidated contract receivables | |
Revenue by major customers [Abstract] | ||
Concentration Risk, Benchmark Description | more than 10% of the Company’s consolidated contract receivables | |
Net Receivables [Member] | State Nuclear Power Automation System Engineering Co. [Member] | ||
Receivable by major customers [Abstract] | ||
Percentage of receivables contributed by major customers (in hundredths) | 0.70% | 10.20% |
Revenue [Member] | ||
Receivable by major customers [Abstract] | ||
Concentration Risk, Benchmark Description | more than 10% of our consolidated revenue | |
Revenue by major customers [Abstract] | ||
Concentration Risk, Benchmark Description | more than 10% of our consolidated revenue |
Summary of Significant Accoun46
Summary of Significant Accounting Policies, Derivative Instruments, Foreign Exchange Contracts (Details) € in Millions, ¥ in Millions, £ in Millions, MYR in Millions, CAD in Millions, AUD in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2015GBP (£) | Dec. 31, 2015CAD | Dec. 31, 2015EUR (€) | Dec. 31, 2015AUD | Dec. 31, 2015JPY (¥) | Dec. 31, 2015MYR | Dec. 31, 2014GBP (£) | Dec. 31, 2014EUR (€) | Dec. 31, 2014AUD | Dec. 31, 2014JPY (¥) | Dec. 31, 2014MYR | |
Derivative [Line Items] | |||||||||||
Derivative, Maturity Date | Jan. 30, 2017 | ||||||||||
Foreign Exchange Contract [Member] | Canada, Dollars | |||||||||||
Derivative [Line Items] | |||||||||||
Foreign exchange contract outstanding | CAD | CAD 1.3 | ||||||||||
Foreign Exchange Contract [Member] | Japan, Yen | |||||||||||
Derivative [Line Items] | |||||||||||
Foreign exchange contract outstanding | ¥ | ¥ 0 | ¥ 0 | |||||||||
Foreign Exchange Contract [Member] | United Kingdom, Pounds | |||||||||||
Derivative [Line Items] | |||||||||||
Foreign exchange contract outstanding | £ | £ 0.5 | £ 0.3 | |||||||||
Foreign Exchange Contract [Member] | Euro Member Countries, Euro | |||||||||||
Derivative [Line Items] | |||||||||||
Foreign exchange contract outstanding | € | € 2.1 | € 1.4 | |||||||||
Foreign Exchange Contract [Member] | Australia, Dollars | |||||||||||
Derivative [Line Items] | |||||||||||
Foreign exchange contract outstanding | AUD | AUD 0.4 | AUD 0.8 | |||||||||
Foreign Exchange Contract [Member] | Malaysia, Ringgits | |||||||||||
Derivative [Line Items] | |||||||||||
Foreign exchange contract outstanding | MYR | MYR 0 | MYR 0.5 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies, Derivative Instruments, Fair Values Derivatives, Balance Sheet Location (Details) - Foreign Exchange Contract [Member] - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Estimated fair value of the contracts in the consolidated balance sheets [Abstract] | ||
Asset derivatives | $ 121 | $ 92 |
Liability derivatives | 57 | 24 |
Net fair value | 64 | 68 |
Other Current Assets [Member] | ||
Estimated fair value of the contracts in the consolidated balance sheets [Abstract] | ||
Asset derivatives | 115 | 71 |
Other Noncurrent Assets [Member] | ||
Estimated fair value of the contracts in the consolidated balance sheets [Abstract] | ||
Asset derivatives | 6 | 21 |
Other Current Liabilities [Member] | ||
Estimated fair value of the contracts in the consolidated balance sheets [Abstract] | ||
Liability derivatives | 57 | 23 |
Other Noncurrent Liabilities [Member] | ||
Estimated fair value of the contracts in the consolidated balance sheets [Abstract] | ||
Liability derivatives | $ 0 | $ 1 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies, Derivative Instruments, Gain (Loss) On Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange contracts- change in fair value | $ (6) | $ 365 |
Remeasurement of related contract receivables, billings in excess of revenue earned, and subcontractor accruals | (34) | (156) |
Gain on derivative instruments, net | $ (40) | $ 209 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Nov. 14, 2014 | |
Business Acquisition [Line Items] | |||
Payments of the liability-classified contingent consideration arrangements | $ 1,700,000 | $ 500,000 | |
Payments to Acquire Equity Method Investments | $ 0 | 250,000 | |
Business Acquisition, Period Results Included in Combined Entity | 1 month 15 days | ||
Business Combinations Purchase Price Allocation [Abstract] | |||
Goodwill | $ 5,612,000 | 5,612,000 | |
Business Acquisition, Pro Forma Information [Abstract] | |||
Revenue | 56,803,000 | 53,217,000 | |
Operating income (loss) | (3,577,000) | (7,287,000) | |
Net income (loss) | $ (4,146,000) | $ (7,115,000) | |
Earnings (loss) per common share - basic | $ (0.23) | $ (0.40) | |
Earnings (loss) per common share - diluted | $ (0.23) | $ (0.40) | |
Business Acquisition, Period Results Included in Combined Entity | 1 month 15 days | ||
Hyperspring, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Name of Acquired Entity | Hyperspring, LLC | ||
Business Acquisition, Effective Date of Acquisition | Nov. 14, 2014 | ||
Percentage of ownership interest acquired (in hundredths) | 100.00% | ||
Cash purchase price | $ 3,000,000 | ||
Fair value of contingent consideration | 3,953,000 | ||
Business Combination, Consideration Transferred, Total | 6,953,000 | ||
Business Combinations Purchase Price Allocation [Abstract] | |||
Cash | 152,000 | ||
Contract receivables | 1,719,000 | ||
Prepaid expenses and other current assets | 23,000 | ||
Property, plant and equipment, net | 12,000 | ||
Intangible assets | 779,000 | $ 779,000 | |
Goodwill | 5,612,000 | ||
Total assets | 8,297,000 | ||
Line of credit | 749,000 | ||
Accounts payable, accrued expenses and other liabilities | 586,000 | ||
Billings in excess of revenue earned | 9,000 | ||
Total liabilities | 1,344,000 | ||
Net assets acquired | 6,953,000 | ||
Hyperspring, LLC [Member] | EBITDA Target [Member] | |||
Business Acquisition [Line Items] | |||
Payments of the liability-classified contingent consideration arrangements | $ 1,400,000 | ||
Business Combination, Contingent Consideration Arrangements, Description | certain EBITDA (earnings before interest, taxes, depreciation and amortization) targets | ||
Hyperspring, LLC [Member] | Tennessee Valley Authority Renewal Target [Member] | |||
Business Acquisition [Line Items] | |||
Payments of the liability-classified contingent consideration arrangements | $ 1,200,000 | ||
Business Combination, Contingent Consideration Arrangements, Description | Hyperspring was awarded a three year contract by TVA with substantially the same scope and profit margin as its expiring TVA contract. | ||
Hyperspring, LLC [Member] | EBITDA TARGET YEAR 1 [Member] | EBITDA Target [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 2,400,000 | ||
Hyperspring, LLC [Member] | EBITDA TARGET YEAR 2 [Member] | EBITDA Target [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 | ||
Hyperspring, LLC [Member] | EBITDA TARGET YEAR 3 [Member] | EBITDA Target [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,400,000 | ||
Hyperspring, LLC [Member] | Contingent Consideration Case 1 [Member] | EBITDA Target [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition Contingent Consideration Agreement | for the three-year period ending November 13, 2017 | ||
Hyperspring, LLC [Member] | Contractual Customer Relationships [Member] | |||
Business Combinations Purchase Price Allocation [Abstract] | |||
Intangible assets | $ 779,000 | ||
Hyperspring, LLC [Member] | Contractual Customer Relationships [Member] | Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||
IntelliQlik, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Name of Acquired Entity | IntelliQlik, LLC | ||
Business Acquisition, Effective Date of Acquisition | Nov. 14, 2014 | ||
Percentage of ownership interest acquired (in hundredths) | 50.00% | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 250,000 | ||
Payments to Acquire Equity Method Investments | $ 250,000 |
Acquisitions, Contingent Consid
Acquisitions, Contingent Consideration by Acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other current liabilities [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent Consideration, Liability | $ 2,647 | $ 2,842 |
Other non current liabilities [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent Consideration, Liability | 1,085 | 1,948 |
Hyperspring, LLC [Member] | Other current liabilities [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent Consideration, Liability | 2,647 | 2,152 |
Hyperspring, LLC [Member] | Other non current liabilities [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent Consideration, Liability | 1,085 | 1,948 |
IntelliQlik, LLC [Member] | Other current liabilities [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent Consideration, Liability | 0 | 213 |
EnVision Systems, Inc. [Member] | Other current liabilities [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Contingent Consideration, Liability | $ 0 | $ 477 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 5,612 | |
Ending balance | 5,612 | $ 5,612 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,996 | 3,031 |
Accumulated amortization | 2,221 | 1,752 |
Total | 775 | 1,279 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | 294 | |
2,017 | 204 | |
2,018 | 158 | |
2,019 | 71 | |
2,020 | 33 | |
Thereafter | 15 | |
Total | 775 | |
Amortization of definite-lived intangible assets | 494 | 193 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,425 | 1,425 |
Accumulated amortization | 1,061 | 695 |
Total | 364 | 730 |
Non Contractual Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 911 | 911 |
Accumulated amortization | 669 | 618 |
Total | 242 | 293 |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 471 | 471 |
Accumulated amortization | 295 | 236 |
Total | 176 | 235 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 152 | 152 |
Accumulated amortization | 142 | 136 |
Total | 10 | 16 |
Contract Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 36 | 36 |
Accumulated amortization | 36 | 36 |
Total | 0 | 0 |
Trade Names and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 29 | 29 |
Accumulated amortization | 29 | 29 |
Total | 0 | 0 |
Foreign Currency Translation [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | (28) | 7 |
Accumulated amortization | (11) | 2 |
Total | $ (17) | $ 5 |
Contract Receivables (Details)
Contract Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Contract Receivables [Abstract] | |||
Maximum term of contract receivables | 12 months | ||
Components of contract receivables [Abstract] | |||
Billed receivables | $ 9,831 | $ 10,792 | |
Recoverable costs and accrued profit not billed | 3,325 | 4,998 | |
Allowance for doubtful accounts | 103 | 22 | $ 2 |
Total contract receivables, net | $ 13,053 | $ 15,768 |
Prepaid Expenses and Other Cu53
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Prepaid expenses | $ 639 | $ 539 |
Deferred income taxes - current | 18 | 27 |
Value added tax receivable | 425 | 533 |
Other current assets | 1,424 | 895 |
Total | $ 2,506 | $ 1,994 |
Equipment, Software, and Leas54
Equipment, Software, and Leasehold Improvements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equipment, Software and Leasehold Improvements [Line Items] | ||
Equipment, software and leasehold improvements | $ 7,003 | $ 7,055 |
Accumulated depreciation | 5,407 | 5,229 |
Equipment, software and leasehold improvements, net | 1,596 | 1,826 |
Depreciation | 493 | 545 |
Computer Equipment [Member] | ||
Equipment, Software and Leasehold Improvements [Line Items] | ||
Equipment, software and leasehold improvements | 3,211 | 3,235 |
Software [Member] | ||
Equipment, Software and Leasehold Improvements [Line Items] | ||
Equipment, software and leasehold improvements | 1,474 | 1,429 |
Leasehold Improvements [Member] | ||
Equipment, Software and Leasehold Improvements [Line Items] | ||
Equipment, software and leasehold improvements | 542 | 543 |
Furniture and Fixtures [Member] | ||
Equipment, Software and Leasehold Improvements [Line Items] | ||
Equipment, software and leasehold improvements | $ 1,776 | $ 1,848 |
Software Development Costs (Det
Software Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Capitalized Development Costs [Line Items] | ||
Capitalized Computer Software, Net, Beginning Balance | $ 1,414 | $ 1,020 |
Capitalized Computer Software, Additions | 1,610 | 646 |
Capitalized software amortization | (341) | (252) |
Write-down of capitalized software development costs | (1,538) | 0 |
Capitalized Computer Software, Period Increase (Decrease), Total | (269) | 394 |
Capitalized Computer Software, Net, Ending Balance | $ 1,145 | $ 1,414 |
Fair Value of Financial Instr56
Fair Value of Financial Instruments (Details) $ in Thousands | Dec. 31, 2015USD ($)LetterBondContract | Dec. 31, 2014USD ($) |
Performance Bond Abstract | ||
Number of Standby Letters of Credit | Letter | 12 | |
Number of Surety Bonds | Bond | 1 | |
Letter of Credit and Surety Bonds | $ 3,600 | |
Number of Performance and Bid Bonds issued in relation to contracts | Contract | 12 | |
Number of stand by letters of credit deposited in escrow accounts | Letter | 12 | |
Restricted cash and investments | $ 3,500 | $ 4,200 |
Unrestricted cash | 5,400 | 7,500 |
Assets and liabilities measured at fair value [Abstract] | ||
Money market funds | 8,979 | 11,661 |
Foreign exchange contracts - Assets | 121 | 92 |
Total assets | 9,100 | 11,753 |
Foreign exchange contracts - Liabilities | 57 | 24 |
Contingent consideration liability | 3,732 | 4,790 |
Total liabilities | 3,789 | 4,814 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets and liabilities measured at fair value [Abstract] | ||
Money market funds | 8,979 | 11,661 |
Foreign exchange contracts - Assets | 0 | 0 |
Total assets | 8,979 | 11,661 |
Foreign exchange contracts - Liabilities | 0 | 0 |
Contingent consideration liability | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value [Abstract] | ||
Money market funds | 0 | 0 |
Foreign exchange contracts - Assets | 121 | 92 |
Total assets | 121 | 92 |
Foreign exchange contracts - Liabilities | 57 | 24 |
Contingent consideration liability | 0 | 0 |
Total liabilities | 57 | 24 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value [Abstract] | ||
Money market funds | 0 | 0 |
Foreign exchange contracts - Assets | 0 | 0 |
Total assets | 0 | 0 |
Foreign exchange contracts - Liabilities | 0 | 0 |
Contingent consideration liability | 3,732 | 4,790 |
Total liabilities | $ 3,732 | $ 4,790 |
Long-Term Debt (Details)
Long-Term Debt (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Quarter | Dec. 31, 2014USD ($) | |
Line of Credit Facility [Line Items] | ||
Restricted cash and investments | $ 3,500 | $ 4,200 |
BB&T Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal amount of the line of credit | $ 7,500 | |
Line of Credit Facility, Affiliated Borrower | GSE Systems, Inc. and GSE Performance Solutions, Inc. | |
Line of Credit Facility, Interest Rate Description | Working capital advances bear interest at a rate equal to the Wall Street Journal Prime Rate of Interest, floating with a floor of 4 1/2% | |
Expiration date of credit agreement | Jun. 30, 2016 | |
Minimum Cash Balance Requirement | $ 3,000 | |
Number of consecutive quarters entity must attain positive net income | Quarter | 2 | |
BB&T Bank [Member] | Revolving Credit Facility [Member] | Minimum tangible capital base [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Covenant Terms | Must exceed $10.5 million | |
Line of Credit Facility, Covenant Compliance | $10.8 million | |
BB&T Bank [Member] | Revolving Credit Facility [Member] | Quick Ratio [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Covenant Terms | Must exceed 1.00 : 1.00 | |
Line of Credit Facility, Covenant Compliance | 1.44 : 1.00 | |
IberiaBank [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Principal amount of the line of credit | $ 1,000 | |
Line of Credit Facility, Affiliated Borrower | Hyperspring, LLC | |
Line of Credit Facility, Interest Rate Description | interest is payable monthly at the rate of 1.00 percentage points over the prime rate of interest as published in the money rate section of the Wall Street Journal | |
Line of Credit Facility, Interest Rate During Period | 4.25% | |
Line of Credit Facility, Collateral | The line is secured by all accounts of Hyperspring and guaranteed by GSE Systems, Inc. | |
Line of credit facility term | 1 year | |
Expiration date of credit agreement | Jul. 6, 2016 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | $ 339 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Loss) from Continuing Operations [Abstract] | ||
Domestic | $ (4,260,000) | $ (5,195,000) |
Foreign | 26,000 | (1,968,000) |
Loss before income taxes | (4,234,000) | (7,163,000) |
Current: [Abstract] | ||
Federal | 0 | 0 |
State | 12,000 | 10,000 |
Foreign | 288,000 | 178,000 |
Subtotal | 300,000 | 188,000 |
Deferred [Abstract] | ||
Federal | 146,000 | 24,000 |
Foreign | 25,000 | (46,000) |
Subtotal | 171,000 | (22,000) |
Total | $ 471,000 | $ 166,000 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||
Statutory federal income tax rate (in hundredths) | 34.00% | 34.00% |
State income taxes, net of federal tax benefit (in hundredths) | (0.20%) | (0.10%) |
Effect of foreign operations (in hundredths) | (3.00%) | (10.20%) |
Change in valuation allowance (in hundredths) | (33.80%) | (22.80%) |
Permanent differences (in hundredths) | (3.60%) | (2.10%) |
Other (in hundreths) | (4.50%) | (1.30%) |
Effective tax rate (in hundredths) | (11.10%) | (2.50%) |
Non-cash income tax adjustment | $ 0 | |
Deferred Tax Assets, Net [Abstract] | ||
Net operating loss carryforwards | $ 8,732,000 | 7,745,000 |
Capital loss carryforwards | 954,000 | 615,000 |
Accruals | 766,000 | 485,000 |
Reserves | 615,000 | 521,000 |
Alternative minimum tax credit carryforwards | 166,000 | 166,000 |
Stock-based compensation expense | 1,450,000 | 1,445,000 |
Other | 199,000 | 39,000 |
Total deferred tax asset | 12,882,000 | 11,016,000 |
Valuation allowance | (12,082,000) | (10,006,000) |
Total deferred tax assets less valuation allowance | 800,000 | 1,010,000 |
Deferred Tax Liabilities: [Abstract] | ||
Undistributed earnings of foreign subsidiaries | (17,000) | (102,000) |
Software development costs | (446,000) | (542,000) |
Other | (538,000) | (397,000) |
Total deferred tax liabilities | (1,001,000) | (1,041,000) |
Net deferred tax asset (liability) | (201,000) | (31,000) |
Change in valuation allowance | 2,076,000 | 2,949,000 |
Deferred Tax Liabilities, Goodwill | 170,000 | 24,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 7,900,000 | |
Operating loss carryforwards | 21,900,000 | |
Operating Loss Carryforwards, expiration dates [Line Items] | ||
Valuation allowance | 12,082,000 | 10,006,000 |
Unrecognized tax benefits from stock option exercises | 4,700,000 | |
Income Tax Contingency [Line Items] | ||
Tax liabilities for certain foreign tax contingencies | $ 130,000 | $ 23,000 |
Maximum [Member] | ||
Operating Loss Carryforwards, expiration dates [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2035 | |
Minimum [Member] | ||
Operating Loss Carryforwards, expiration dates [Line Items] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2020 |
Income Taxes, Uncertain Tax Lia
Income Taxes, Uncertain Tax Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 283,000 | $ 260,000 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 170,000 | 23,000 |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 40,000 | 0 |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 130,000 | 23,000 |
Unrecognized Tax Benefits, Ending Balance | 413,000 | 283,000 |
Domestic Tax Authority [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Income tax penalties and interest expense on tax liabilities for certain foreign tax contingencies | 0 | 2,000 |
Foreign Tax Authority [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Income tax penalties and interest expense on tax liabilities for certain foreign tax contingencies | 167,000 | 0 |
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | Unrecognized Tax Liabilities [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | 222,000 | 199,000 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 3,000 | 23,000 |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 3,000 | 23,000 |
Unrecognized Tax Benefits, Ending Balance | 225,000 | 222,000 |
Foreign Tax Authority [Member] | State Administration of Taxation, China [Member] | Income Tax Penalties and Interest Accrued [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | 0 | 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 152,000 | |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 152,000 | 0 |
Unrecognized Tax Benefits, Ending Balance | 152,000 | 0 |
Foreign Tax Authority [Member] | State Fiscal Service of Ukraine [Member] | Unrecognized Tax Liabilities [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | 61,000 | 61,000 |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | 40,000 | |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | (40,000) | 0 |
Unrecognized Tax Benefits, Ending Balance | 21,000 | 61,000 |
Foreign Tax Authority [Member] | State Fiscal Service of Ukraine [Member] | Income Tax Penalties and Interest Accrued [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning Balance | 0 | 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 15,000 | |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 15,000 | 0 |
Unrecognized Tax Benefits, Ending Balance | $ 15,000 | $ 0 |
Capital Stock (Details)
Capital Stock (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013shares | Dec. 31, 2011 | Mar. 21, 2011$ / sharesRightshares | |
Capital Stock [Abstract] | |||||
Capital stock, shares authorized (in shares) | 32,000,000 | ||||
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | |||
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 0 | ||||
Share Repurchase Program | |||||
Stock repurchased during period | $ | $ 0 | ||||
Long Term Incentive Stock Option Plan 1995 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved for issuance (in shares) | 4,832,240 | ||||
Shares under options and warrants outstanding (in shares) | 2,222,333 | 2,708,273 | 3,035,987 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,367,500 | ||||
Shares of common stock remaining to be granted (in shares) | 1,242,407 | ||||
Preferred Stock Rights Agreement [Member] | |||||
Preferred Stock Rights | |||||
Date on which dividends payable was declared by Board of Directors | Mar. 21, 2011 | ||||
Number of preferred stock purchase right declared for each outstanding common stock (per right) | Right | 1 | ||||
Number of rights issued with each issuance of common stock (per right) | Right | 1 | ||||
Term of stockholder protection rights agreement | 3 years | ||||
Rights Agreement Amendment Date | Mar. 21, 2014 | ||||
Term of the Rights Agreement extension | 2 years | ||||
Rights Agreement Expiration Date | Mar. 21, 2016 | ||||
Fraction of participating preferred stock that can be exercised as a result of right | $ / shares | 0.01 | ||||
Exercise price of right (in dollars per share) | $ / shares | $ 8 | ||||
Percentage of common stock required to exercise the right (in hundredths) | 20.00% | ||||
Minimum percentage of common stock owned for right to become exercisable (in hundredths) | 20.00% | ||||
Redemption price per right (in dollars per share) | $ / shares | 0.001 | ||||
Number of common stock exchange for rights (in shares) | 1 | ||||
Percentage of common stock acquired to cause substantial dilution (in hundredths) | 20.00% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Installment$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Stock-Based Compensation [Abstract] | ||
Share based compensation expense | $ | $ 541,000 | $ 712,000 |
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested RSUs, beginning balance (in shares) | 0 | |
RSUs Granted | 1,367,500 | |
RSUs Forfeited | 0 | |
RSUs Vested | 0 | |
RSUs, Period Increase (Decrease), Total | 1,367,500 | |
Nonvested RSUs, ending balance (in shares) | 0 | |
Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Weighted average fair value at beginning of period (in dollars per share) | $ / shares | $ 0 | |
Nonvested, weighted average exercise price, RSUs granted (in dollars per share) | $ / shares | 0.76 | |
Nonvested, weighted average exercise price, RSUs forfeited (in dollars per share) | $ / shares | 0 | |
Nonvested, weighted average exercise price, RSUs vested (in dollars per share) | $ / shares | 0 | |
Weighted average fair value at end of period (in dollars per share) | $ / shares | $ 0.76 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Unrecognized compensation expense | $ | $ 1,100,000 | |
Cash received from exercise of stock options | $ | 23,000 | $ 0 |
Aggregate intrinsic value of stock options exercised | $ | $ 6,000 | $ 0 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk free interest rate, minimum (in hundredths) | 0.93% | 1.29% |
Risk free interest rate, maximum (in hundredths) | 2.04% | 2.15% |
Dividend yield (in hundredths) | 0.00% | 0.00% |
Volatility rate, minimum (in hundredths) | 45.94% | 49.89% |
Volatility rate, maximum (in hundredths) | 49.44% | 50.34% |
Weighted average volatility (in hundredths) | 47.45% | 50.06% |
Employee Stock Option [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life | 3 years 11 days | 3 years 9 months 22 days |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life | 7 years | 7 years |
Long Term Incentive Stock Option Plan 1995 [Member] | ||
Share-based Payment Award [Line Items] | ||
Term expiration for option to purchase shares, minimum | 7 years | |
Term expiration for option to purchase shares, maximum | 10 years | |
Plan Expiration | Jun. 30, 2018 | |
Number of shares authorized (in shares) | 6,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Issued Upon Exercise of Options | 1,667,760 | |
Stock options remaining to be granted (in shares) | 1,242,407 | |
Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares under option and warrant, beginning balance (in shares) | 2,708,273 | 3,035,987 |
Options granted (in shares) | 240,000 | 158,573 |
Options exercised (in shares) | 14,000 | 0 |
Options forfeited (in shares) | 711,940 | 486,287 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Period Increase (Decrease), Total | (485,940) | (327,714) |
Shares under options and warrant, ending balance (in shares) | 2,222,333 | 2,708,273 |
Options expected to vest (in shares) | 218,522 | 681,983 |
Options and warrants exercisable, ending balance (in shares) | 2,003,811 | 2,026,290 |
Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted average exercise price, shares under option and warrant, beginning balance (in dollars per share) | $ / shares | $ 3.12 | $ 3.38 |
Weighted average exercise price, options granted (in dollars per share) | $ / shares | 1.58 | 2.03 |
Weighted average exercise price, options exercised (in dollars per share) | $ / shares | 1.65 | 0 |
Weighted average exercise price, options forfeited (in dollars per share) | $ / shares | 2.97 | 4.35 |
Weighted average exercise price, shares under options and warrant, ending balance (in dollars per share) | $ / shares | 3.01 | 3.12 |
Weighted average exercise price, options expected to vest (in dollars per share) | $ / shares | 1.76 | 2.23 |
Weighted average exercise price, options and warrants exercisable, beginning balance (in dollars per share) | $ / shares | $ 3.15 | $ 3.42 |
Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Aggregate intrinsic value, shares under option and warrant, beginning of period | $ | $ 831,000 | $ 0 |
Aggregate intrinsic value, options expected to vest | $ | 142,000 | 0 |
Aggregate intrinsic value, options and warrants exercisable, ending balance | $ | $ 689,000 | $ 0 |
Weighted average remaining contractual life, shares under option and warrant, beginning of period | 2 years 9 months 11 days | 3 years 6 months 18 days |
Weighted average remaining contractual life, options expected to vest | 3 years 8 months 26 days | 4 years 5 months 23 days |
Weighted average remaining contractual life, options and warrants exercisable, end of period | 2 years 8 months 5 days | 3 years 2 months 23 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Options granted (in shares) | 240,000 | 158,573 |
Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested RSUs, ending balance (in shares) | 1,367,500 | |
Long Term Incentive Stock Option Plan 1995 [Member] | Installments One [Member] | ||
Share-based Payment Award [Line Items] | ||
Number of Installments | Installment | 3 | |
Long Term Incentive Stock Option Plan 1995 [Member] | Installments Two [Member] | ||
Share-based Payment Award [Line Items] | ||
Number of Installments | Installment | 5 | |
Long Term Incentive Stock Option Plan 1995 [Member] | Installments Three [Member] | ||
Share-based Payment Award [Line Items] | ||
Number of Installments | Installment | 7 | |
Long Term Incentive Stock Option Plan 1995 [Member] | Non-vested Share Activity [Member] | ||
Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options granted (in shares) | 240,000 | 158,573 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested options, beginning balance (in shares) | 681,983 | 1,287,801 |
Options granted (in shares) | 240,000 | 158,573 |
Options forfeited | (295,903) | (190,433) |
Options vested during the period | (407,558) | (573,958) |
Period Increase (Decrease), Total | (463,461) | (605,818) |
Nonvested options, ending balance (in shares) | 218,522 | 681,983 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested, Weighted average exercise price, shares under option and warrant, beginning balance (in dollars per share) | $ / shares | $ 1.22 | $ 1.33 |
Nonvested, Weighted average exercise price, options granted (in dollars per share) | $ / shares | 0.55 | 0.67 |
Nonvested, Weighted average exercise price, options forfeited (in dollars per share) | $ / shares | 0.94 | 1.29 |
Nonvested, Weighted average exercise price, options vested (in dollars per share) | $ / shares | 1.21 | 1.29 |
Nonvested, Weighted average exercise price, shares under option and warrant, ending balance (in dollars per share) | $ / shares | $ 0.89 | $ 1.22 |
Commitments and Contingencies62
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)LetterBondContract | Dec. 31, 2014USD ($) | |
Operating Leases, Future Minimum Payments Due [Abstract] | ||
2,016 | $ 1,036 | |
2,017 | 930 | |
2,018 | 771 | |
2,019 | 750 | |
2,020 | 604 | |
Thereafter | 1,562 | |
Total | 5,653 | |
Rent Expense [Abstract] | ||
Rent expense | 1,200 | $ 1,400 |
Standby Letters of Credit, Bank Guarantees, Surety Bonds and Performance Bonds [Abstract] | ||
Standby letters of credit and surety bonds | $ 3,600 | |
Number of Standby Letters of Credit | Letter | 12 | |
Number of Surety Bonds | Bond | 1 | |
Number of Bid Bonds Contract | Contract | 12 | |
NumberOfStandByLettersOfCreditDepositedInEscrowAccounts | Letter | 12 | |
Restricted cash and investments | $ 3,500 | $ 4,200 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Benefits [Abstract] | ||
Company's contribution to the plan | $ 268,000 | $ 256,000 |
Segment Information, Loss befor
Segment Information, Loss before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Revenues | $ 56,803 | $ 37,536 |
Operating loss | (4,136) | (7,516) |
Change in fair value of contingent consideration | 849 | 229 |
Interest income, net | 88 | 143 |
Gain (loss) on derivative instruments, net | (40) | 209 |
Other expense, net | (146) | 1 |
Loss before income taxes | (4,234) | (7,163) |
Performance Improvement Solutions [Member] | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Revenues | 37,074 | 35,281 |
Operating loss | (4,465) | (7,392) |
Nuclear Industry Training and Consulting [Member] | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Revenues | 19,729 | 2,255 |
Operating loss | 1,178 | 105 |
Corporate Segment [Member] | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Change in fair value of contingent consideration | $ 849 | $ 229 |
Segment Information, Reconcilia
Segment Information, Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 39,371 | $ 46,228 |
Performance Improvement Solutions [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 30,634 | 38,538 |
Nuclear Industry Training and Consulting [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 8,884 | 8,090 |
Intersegment Eliminations [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ (147) | $ (400) |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | |
Segment Information [Abstract] | ||
Percentage of revenues derived from customers in the nuclear power industry | 71.00% | 61.00% |
Number of reportable business segments | Segment | 2 | |
Contract range, minimum | 10 months | |
Contract range, maximum | 3 years | |
Segment Reporting Information [Line Items] | ||
Contract revenue | $ 56,803 | $ 37,536 |
Total contract revenue | 56,803 | 37,536 |
Operating income (loss) | (4,136) | (7,516) |
Assets | $ 39,371 | $ 46,228 |
Percentage of revenues derived from international sales | 31.00% | 52.00% |
Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | $ 0 | $ 0 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total contract revenue | 50,985 | 30,820 |
Operating income (loss) | (4,053) | (5,330) |
Assets | 102,325 | 116,586 |
United States [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 49,585 | 28,644 |
United States [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 1,400 | 2,176 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total contract revenue | 5,443 | 7,155 |
Operating income (loss) | (1) | (2,094) |
Assets | 4,991 | 5,828 |
Europe [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 5,260 | 6,414 |
Europe [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 183 | 741 |
Asia [Member] | ||
Segment Reporting Information [Line Items] | ||
Total contract revenue | 3,387 | 3,720 |
Operating income (loss) | (82) | (92) |
Assets | 3,915 | 4,694 |
Asia [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 1,958 | 2,478 |
Asia [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 1,429 | 1,242 |
Geography Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 0 | |
Total contract revenue | (3,012) | (4,159) |
Operating income (loss) | 0 | 0 |
Assets | (71,860) | (80,880) |
Geography Eliminations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | 0 | |
Geography Eliminations [Member] | Intersegment Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Contract revenue | $ (3,012) | $ (4,159) |
Supplemental Disclosure of Ca67
Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Paid [Abstract] | ||
Interest | $ (3) | $ (1) |
Income Taxes Paid, Net [Abstract] | ||
Income taxes | 119 | 395 |
Noncash or Part Noncash Acquisitions [Line Items] | ||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | 0 | 4,160 |
Hyperspring, LLC [Member] | ||
Noncash or Part Noncash Acquisitions [Line Items] | ||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | 0 | 3,953 |
IntelliQlik, LLC [Member] | ||
Noncash or Part Noncash Acquisitions [Line Items] | ||
Noncash or Part Noncash Acquisition, Other Liabilities Assumed | $ 0 | $ 207 |
Equity Method Investments and68
Equity Method Investments and Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||
Equity loss on investments | $ (233) | $ (55) |
Payments to Acquire Equity Method Investments | 0 | 250 |
Equity Method Investment, Other than Temporary Impairment | 126 | |
IntelliQlik, LLC [Member] | ||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||
Equity loss on investments | (233) | (17) |
Equity Method Investments | $ 0 | 440 |
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity Method Investment, Description of Principal Activities | IntelliQlik is developing a software platform for online learning and learning management for the energy market | |
Payments to Acquire Equity Method Investments | $ 250 | |
Obligation to contribute additional investment | 250 | |
Business Combination, Contingent Consideration, Liability | 0 | |
General Simulation Engineering RUS LLC [Member] | ||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||
Equity loss on investments | 0 | (38) |
Equity Method Investments | $ 0 | $ 0 |
Equity Method Investment, Ownership Percentage | 50.00% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||
Payments of the liability-classified contingent consideration arrangements | $ 1,700 | $ 500 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Subsequent Event, Date | Jan. 8, 2016 | |
Subsequent Event, Description | Pursuant to the terms of the Hyperspring Purchase Agreement, GSE Performance was required to pay the Sellers an additional $1.4 million based on EBITDA thresholds for the year ended November 13, 2015. | |
Payments of the liability-classified contingent consideration arrangements | $ 1,400 | |
Subsequent Event 2 [Member] | ||
Subsequent Event [Line Items] | ||
Subsequent Event, Description | On March 17, 2016, GSE was awarded a contract to design, engineer and deliver three full scope simulator systems to an existing client, a major nuclear power plant operator based in the southern United States. |