Gse Systems (GVP) 10-Q 14 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
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 Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		19,833,103
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 9,831	$ 19,111
Restricted cash	9	960
Contract receivables, net	19,238	13,997
Prepaid expenses and other current assets	1,624	2,795
Total current assets	30,702	36,863
Equipment, software, and leasehold improvements	5,290	4,782
Accumulated depreciation	(4,125)	(3,719)
Equipment, software, and leasehold improvements, net	1,165	1,063
Software development costs, net	662	690
Goodwill	12,185	8,431
Intangible assets, net	6,597	2,604
Deferred tax assets	6,203	6,494
Other assets	37	37
Total assets	57,551	56,182
Current liabilities:
Current portion of long-term debt, net of debt issuance costs and original issue discount	1,901	0
Accounts payable	1,096	1,251
Accrued expenses	2,324	2,276
Accrued compensation	3,532	2,866
Billings in excess of revenue earned	7,810	14,543
Accrued warranty	1,105	1,433
Contingent consideration	0	1,701
Other current liabilities	1,035	1,182
Total current liabilities	18,803	25,252
Long-term debt, less current portion, net of debt issuance costs and original issue discount	7,089	0
Other liabilities	1,545	1,258
Total liabilities	27,437	26,510
Commitments and contingencies
Stockholders' equity:
Preferred stock $0.01 par value, 2,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock $0.01 par value; 60,000,000 shares authorized, 21,432,014 shares issued, 19,833,103 shares outstanding as of September 30, 2018; 30,000,000 shares authorized, 21,024,395 shares issued, 19,425,484 shares outstanding as of December 31, 2017	214	210
Additional paid-in capital	77,876	76,802
Accumulated deficit	(43,248)	(42,870)
Accumulated other comprehensive loss	(1,729)	(1,471)
Treasury stock at cost, 1,598,911 shares in 2018 and 2017	(2,999)	(2,999)
Total stockholders' equity	30,114	29,672
Total liabilities and stockholders' equity	$ 57,551	$ 56,182

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Stockholders' 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
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	60,000,000	30,000,000
Common stock, shares issued (in shares)	21,432,014	21,024,395
Common stock, shares outstanding (in shares)	19,833,103	19,425,484
Treasury stock (in shares)	1,598,911	1,598,911

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Revenue	$ 21,801	$ 15,409	[1]	$ 69,394	$ 48,876	[1]
Cost of revenue	16,380	11,185		52,735	35,513
Gross profit	5,421	4,224		16,659	13,363
Operating expenses:
Selling, general and administrative	4,366	4,374		13,686	11,740
Research and development	247	353		765	1,103
Restructuring charges	70	0		1,177	45
Depreciation	132	79		411	254
Amortization of definite-lived intangible assets	632	50		1,094	148
Total operating expenses	5,447	4,856		17,133	13,290
Operating (loss) income	(26)	(632)		(474)	73
Interest (expense) income, net	(114)	15		(153)	60
(Loss) gain on derivative instruments, net	(59)	71		(306)	226
Other (expense) income, net	(5)	33		24	(4)
(Loss) income before income taxes	(204)	(513)		(909)	355
Provision for income taxes	314	92		124	399
Net loss	$ (518)	$ (605)		$ (1,033)	$ (44)
Basic loss per common share (in dollars per share)	$ (0.03)	$ (0.03)		$ (0.05)	$ 0
Diluted loss per common share (in dollars per share)	$ (0.03)	$ (0.03)		$ (0.05)	$ 0
[1]	Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME [Abstract]
Net loss	$ (518)	$ (605)	$ (1,033)	$ (44)
Foreign currency translation adjustment	(31)	192	(258)	319
Comprehensive (loss) income	$ (549)	$ (413)	$ (1,291)	$ 275

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total
Cumulative effect of adopting ASC 606			$ 655			$ 655
Balance at Dec. 31, 2017	$ 210	$ 76,802	(42,870)	$ (1,471)	$ (2,999)	29,672
Balance (in shares) at Dec. 31, 2017	21,024,395				(1,598,911)
Stock-based compensation expense		1,370				1,370
Common stock issued for options exercised (in shares)	213,763
Common stock issued for options exercised	$ 2	37				39
Common stock issued for RSUs vested (in shares)	193,856
Common stock issued for RSUs vested	$ 2	(2)				0
Vested RSU shares withheld to pay taxes		(331)				(331)
Foreign currency translation adjustment				(258)		(258)
Net loss			(1,033)			(1,033)
Balance at Sep. 30, 2018	$ 214	$ 77,876	$ (43,248)	$ (1,729)	$ (2,999)	$ 30,114
Balance (in shares) at Sep. 30, 2018	21,432,014				(1,598,911)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (1,033)	$ (44)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation	411	254
Amortization of definite-lived intangible assets	1,094	148
Amortization of capitalized software development costs	353	352
Stock-based compensation expense	1,535	1,873
Bad debt expense	146	118
Loss (gain) on derivative instruments, net	306	(226)
Deferred income taxes	74	78
Changes in assets and liabilities:
Contract receivables, net	(3,165)	5,318
Prepaid expenses and other assets	948	770
Accounts payable, accrued compensation, and accrued expenses	(965)	(911)
Billings in excess of revenue earned	(5,800)	(5,204)
Accrued warranty	(256)	112
Other liabilities	(8)	359
Cash (used in) provided by operating activities	(6,360)	2,997
Cash flows from investing activities:
Capital expenditures	(510)	(64)
Capitalized software development costs	(325)	(126)
Cash used in investing activities	(10,470)	(8,645)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of debt issuance costs and original issue discount	10,154	0
Repayment of long-term debt	(1,164)	0
Proceeds from issuance of common stock on the exercise of stock options	39	276
Contingent consideration payments to Hyperspring, LLC	(1,701)	(414)
RSUs withheld to pay taxes	(331)	(952)
Cash provided by (used in) financing activities	6,997	(1,090)
Effect of exchange rate changes on cash	(398)	336
Net (decrease) in cash, cash equivalents and restricted cash	(10,231)	(6,402)
Cash, cash equivalents, and restricted cash, beginning balance	20,071	22,887
Cash, cash equivalents, and restricted cash, ending balance	9,840	16,485
Absolute Consulting, Inc. [Member]
Cash flows from investing activities:
Acquisition of subsidiaries, net of cash acquired	0	(8,455)
True North Consulting, LLC [Member]
Cash flows from investing activities:
Acquisition of subsidiaries, net of cash acquired	$ (9,635)	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation The consolidated interim financial statements included herein have been prepared by GSE Systems, Inc. (the Company, GSE, we, us, or our) and are unaudited. In the opinion of the Company's management, all adjustments and reclassifications of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. The results of operations for interim periods are not necessarily an indication of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 16, 2018. The Company has two reportable segments as follows: ● Performance Improvement Solutions (approximately 44% of revenue) Our Performance Improvement Solutions segment primarily encompasses our technical engineering and power plant high-fidelity simulation solutions and interactive computer-based tutorials/simulation focused on the process industry. This segment includes various simulation products, engineering services, and operation training systems delivered across the industries we serve: primarily nuclear and fossil fuel power generation, as well as the process industries. Our simulation solutions include the following: (1) simulation software and services, including operator training systems, for the nuclear power industry, (2) simulation software and services, including operator training systems, for the fossil power industry, and (3) simulation software and services for the process industries used to teach fundamental industry processes and control systems to newly hired employees and for ongoing workforce development and training. GSE and its predecessors have been providing these services since 1976. ● Nuclear Industry Training and Consulting (approximately 56% of revenue) Nuclear Industry Training and Consulting provides highly specialized and skilled nuclear operations instructors, procedure writers, technical engineers, and other consultants to the nuclear power industry. These employees work at our clients' facilities under client direction. Examples of these highly skilled positions are senior reactor operations instructors, procedure writers, project managers, work management specialists, planners and training material developers. This business is managed through the Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the Company's product and service portfolio. GSE and its predecessors have been providing these services since 1997. Financial information about the two business segments is provided in Note 18 of the accompanying condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP 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 financial statements as well as reported amounts of revenues and expenses during the reporting period. The Company's most significant estimates relate to revenue recognition on contracts with customers, allowance for doubtful accounts, product warranties, valuation of goodwill and intangible assets acquired, valuation of long-lived assets to be disposed of, valuation of contingent consideration issued in business acquisitions, valuation of stock-based compensation awards, and the recoverability of deferred tax assets. Actual results could differ from these estimates and those differences could be material. Revenue recognition The Company derives its revenue through three broad revenue streams: 1) System Design and Build (SDB), 2) Software, and 3) Training and Consulting services. We recognize revenue from SDB and software contracts mainly through the Performance Improvement Solutions segment and the training and consulting service contracts through both the Performance Improvement Solutions segment and Nuclear Industry Training and Consulting segment. The SDB contracts are typically fixed-price and consist of initial design, engineering, assembly and installation of training simulators which include hardware, software, labor, and post contract support (PCS) on the software. We generally have two main performance obligations for an SDB contract: the training simulator build and PCS. The training simulator build performance obligation generally includes hardware, software, and labor. The transaction price under the SDB contracts is allocated to each performance obligation based on its standalone selling price. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method as our performance creates or enhances assets with no alternative use to the Company, and we have an enforceable right to payment for performance completed to date. Cost-to-cost input method best measures the progress toward complete satisfaction of the performance obligation. PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation. In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. 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. The SDB contracts generally on the systems. The base warranty will not be accounted for as a separate performance obligation under the contract because it does not provide the customer with a service in addition to the assurance evaluated on a case by case basis to determine if it provides more than just assurance that the product operates as intended, which requires carve-out as a separate performance obligation. Revenue from the sale of perpetual standalone software licenses, which do not require significant modification or customization, is recognized upon its delivery to the customer. Revenue from the sale of term or subscription-based standalone software licenses, which do not require significant modification or customization, is recognized ratably over the term of such licenses following delivery to the customer. Delivery is considered to have occurred when the customer receives a copy of the software and is able to use and benefit from the software. A software license sale contract with multiple deliverables typically includes the following elements: license, installation and training services and PCS. The total transaction price of a software license sale contract is typically fixed, and is allocated to the identified performance obligations based on their relative standalone selling prices. Revenue is recognized as the performance obligations are satisfied. Specifically, license revenue is recognized when the software license is delivered to the customer; installation and training revenue is recognized when the installation and training is completed without regard to a detailed evaluation of the point in time criteria due to the short-term nature of the installation and training services (one to two days on average); and PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation. The contracts within the training and consulting services revenue stream are either time and materials (T&M) based or fixed-price based. Under a typical T&M contract, the Company is compensated based on the number of hours of approved time provided by temporary workers and the bill rates which are fixed per type of work, as well as approved expenses incurred. The customers are billed on a regular basis, such as weekly, biweekly or monthly. In accordance with Accounting Standards Codification (ASC) 606-10-55-18, we elected to apply the "right to invoice" practical expedient, under which we recognize revenue in the amount to which we have the right to invoice. The invoice amount represents the number of hours of approved time worked by each temporary worker multiplied by the bill rate for the type of work, as well as approved expenses incurred. Under a typical fixed-price contract, we recognize the revenue over the service period using the cost-to-cost input method as the Company's performance does not create an asset with an alternative use to the Company, and we have an enforceable right to payment for performance completed to date. Cost-to-cost input method best measures the progress toward complete satisfaction of the performance obligation. For contracts with multiple performance obligations, we allocate the contract price to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2018
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	2. Recent Accounting Pronouncements Accounting pronouncements recently adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers . Subsequently, the FASB issued a series of updates to the revenue recognition guidance in ASC 606, Revenue from Contracts with Customers . Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, the new accounting standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for the fiscal year ending December 31, 2018 and interim periods therein. We adopted ASU 2014-09 and all the related updates (collectively, the new revenue standard) on January 1, 2018 to (1) all new contracts This adoption primarily affected our software license sales with multiple deliverables, which typically include the following elements: license, installation and training services and PCS. Under the legacy The impact of adoption on our consolidated statement of operations and balance sheet was as follows ( in thousands Income Statement Three months ended September 30, 2018 Nine months ended September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change As Reported Balance without adoption of ASC 606 Effect of Change Revenue $ 21,801 $ 21,952 $ (151 ) $ 69,394 $ 69,666 $ (272 ) Gross profit 5,421 5,572 (151 ) 16,659 16,931 (272 ) Provision for income taxes 314 296 (18 ) 124 201 77 Net loss (518 ) (349 ) (169 ) (1,033 ) (838 ) (195 ) Balance Sheet September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change Contract receivables, net $ 19,238 $ 19,238 $ - Deferred tax assets 6,203 6,367 (164 ) Billings in excess of revenue earned 7,810 8,492 (682 ) Accumulated deficit (43,248 ) (43,766 ) 518 The impact of adoption on our consolidated statement of operations and balance sheet was as follows ( in thousands Income Statement Three months ended September 30, 2018 Nine months ended September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change As Reported Balance without adoption of ASC 606 Effect of Change Revenue $ 21,801 $ 21,952 $ (151 ) $ 69,394 $ 69,666 $ (272 ) Gross profit 5,421 5,572 (151 ) 16,659 16,931 (272 ) Provision for income taxes 314 296 (18 ) 124 201 77 Net loss (518 ) (349 ) (169 ) (1,033 ) (838 ) (195 ) Balance Sheet September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change Contract receivables, net $ 19,238 $ 19,238 $ - Deferred tax assets 6,203 6,367 (164 ) Billings in excess of revenue earned 7,810 8,492 (682 ) Accumulated deficit (43,248 ) (43,766 ) 518 In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The new guidance addresses eight specific cash flow issues and applies to all entities that are required to present a statement of cash flows. ASU 2016-15 was effective for fiscal reporting periods beginning after December 15, 2017, including interim reporting periods within those fiscal years. We adopted ASU 2016-15 on January 1, 2018, on a retrospective basis. Upon the adoption of ASU 2016-15, cash payments made to settle a contingent consideration liability from an acquisition in excess of the amount recognized at the acquisition date are classified as operating activities, which were previously presented as financing activities. The comparative statement of cash flows has been restated to include only the payments made to settle the contingent liability related to the original amount recognized at the acquisition date in the financing activities; previously, the payment of $0.4 million related to fair value adjustment and interest accretion of the contingent liability was included in financing activities. Upon the adoption of ASU 2016-15, it was reclassified as an operating activity. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the definition of a Business In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation Compensation – Stock Compensation Accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment

Basic and Diluted Loss per Comm

Basic and Diluted Loss per Common Share	9 Months Ended
	Sep. 30, 2018
Basic and Diluted Loss per Common Share [Abstract]
Basic and Diluted Loss per Common Share	3. Basic and Diluted Loss per Common Share Basic loss per share is computed by dividing net loss by weighted average number of outstanding common shares outstanding for the period. Diluted net loss per share adjusts the weighted average shares outstanding for the potential dilution that could occur if outstanding vested stock options were exercised, unless the impact of potential dilutive common shares outstanding has an anti-dilutive impact on diluted net loss per share. 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 share amounts) Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net loss $ (518 ) $ (605 ) $ (1,033 ) $ (44 ) Denominator: Weighted-average shares outstanding for basic loss per share 19,786,888 19,280,770 19,620,207 19,204,778 Effect of dilutive securities: Stock options and restricted stock units - - - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 19,786,888 19,280,770 19,620,207 19,204,778 Shares related to dilutive securities excluded because inclusion would be anti-dilutive 713,024 534,833 645,714 550,218

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2018
Acquisitions [Abstract]
Acquisitions	4. Acquisitions True North On May 11, 2018, GSE, through its wholly-owned subsidiary GSE Performance Solutions, Inc. (Performance Solutions), entered into a membership interest purchase agreement with Donald R. Horn, Jenny C. Horn, and True North Consulting LLC (the True North Purchase Agreement) to purchase 100% of the membership interests in True North Consulting LLC (True North) for $9.75 million. The purchase price was subject to customary pre- and post-closing working capital adjustments, resulting in total consideration of $9.9 million. The True North Purchase Agreement contains customary representations, warranties, covenants, and indemnification provisions subject to certain limitations. An escrow of $1.5 million was funded from the cash paid to the sellers Debt True North is a provider of technical engineering solutions to nuclear and fossil fuel power plants with an emphasis on regulatory-driven ASME code programs. Located in Montrose, Colorado, True North is a well-regarded service provider to leading companies in the power industry. The acquisition of True North is expected to broaden our engineering services offering, expand our relationships with several of the largest nuclear energy providers in the United States, and add a highly specialized, complimentary talent pool to our employee base. The following table summarizes the consideration paid to acquire True North and the preliminary fair value of the assets acquired and liabilities assumed at the date of the transaction. Due to the recent completion of the acquisition, the Company recorded the assets acquired and liabilities assumed at their preliminary estimated fair value. As of September 30, 2018, the Company had not finalized the determination of the fair value allocated to various assets and liabilities, including, but not limited to, contract receivables, prepaid expenses and other current assets, intangible assets, accounts payable, accrued expenses, accrued compensation and the residual amount allocated to goodwill. The following amounts except for cash are all reflected in the consolidated statement of cash flows within the "Acquisition of True North Consulting, net of cash acquired" line caption. ( in thousands Total purchase price $ 9,941 Purchase price allocation: Cash 306 Contract receivables 2,345 Prepaid expenses and other current assets 4 Property, and equipment, net 1 Intangible assets 5,088 Accounts payable, accrued expenses (1,420 ) Accrued compensation (137 ) Total identifiable net assets 6,187 Goodwill 3,754 Net assets acquired $ 9,941 The fair value of the assets acquired includes gross trade receivables of $2.3 million, of which the Company expects to collect in full. GSE did not acquire any other class of receivable as a result of the acquisition of True North. The goodwill is primarily attributable to broader engineering service offering to new and existing customers, the workforce of the acquired business and the significant synergies expected to arise after the acquisition of True North. The total amount of goodwill is expected to be tax deductible. All of the $3.8 million of goodwill was assigned to our Performance Improvement Solutions segment. As of the report date, the Company is still evaluating the impact of the True North acquisition on our reporting units. As discussed above, the goodwill amount is provisional pending receipt of the final valuations of various assets and liabilities. The Company identified other intangible assets of $5.1 million, including customer contracts and relationships, tradename, non-compete agreements, and alliance agreements, with amortization periods of four to fifteen years. The fair value of the intangible assets is provisional pending receipt of the final valuations for these assets. The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period: Intangible Assets Weighted average amortization period Fair Value (in years) (in thousands) Customer relationships 15 $ 3,758 Tradename 10 582 Non-compete agreements 4 221 Alliance agreements 5 527 Total $ 5,088 Absolute On September 20, 2017, GSE, through Performance Solutions, acquired 100% of the capital stock of Absolute Consulting, Inc. (Absolute) for $8.8 million pursuant to the Stock Purchase Agreement by and among Performance Solutions and the sellers of Absolute. The purchase price was subject to a customary working capital adjustment resulting in total consideration of $9.5 million. An indemnification escrow of $1.0 million was funded from the cash paid to the sellers and is available to GSE and Performance Solutions to satisfy indemnification claims until September 20, 2019. Absolute is a provider of technical consulting and staffing solutions to the global nuclear power industry. Located in Navarre, Florida, Absolute has established long-term relationships with blue-chip customers primarily in the nuclear power industry. The acquisition of Absolute is expected to strengthen the Company's global leadership in nuclear training and consulting solutions, add new capacities to our technical consulting and staffing solutions offerings and bring highly complementary customers, while deepening relationships with existing clients. The following table summarizes the consideration paid to acquire Absolute and the fair value of the assets acquired and liabilities assumed at the date of the transaction. (in thousands) Total purchase price $ 9,521 Purchase price allocation: Cash $ 455 Contract receivables 5,121 Prepaid expenses and other current assets 68 Property, and equipment, net 184 Intangible assets 2,569 Accounts payable, accrued expenses, and other liabilities (78 ) Accrued compensation (1,617 ) Total identifiable net assets 6,702 Goodwill 2,819 Net assets acquired $ 9,521 The goodwill is primarily attributable to the additional capacities to offer broader solutions to new and existing customers and the expected enhanced cost and growth synergies as a result of the acquisition. The total amount of goodwill that is expected to be tax deductible is $2.8 million. All of the $2.8 million of goodwill was assigned to our Nuclear Industry Training and Consulting segment. The fair value of the assets acquired includes gross trade receivables of $5.1 million, which was collected in full after acquisition. GSE did not acquire any other class of receivable as a result of the acquisition of Absolute. The Company identified $2.6 million of other intangible assets, including customer relationships and trademarks/names, with amortization periods of three to ten years. The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period: Intangible Assets Weighted average amortization period Fair Value (in years) (in thousands) Customer relationships 10 $ 1,856 Trademarks/Names 3 713 Total $ 2,569 Unaudited Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations for GSE, True North, and Absolute as if the business combinations had occurred on January 1, 2017. Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 ( unaudited and in thousands Revenue $ 21,801 $ 24,975 $ 72,564 $ 83,337 Net loss (361 ) (736 ) (2,178 ) (1,224 ) True North contributed revenue of $3.7 million and net loss of $(0.4) million to the Company for the period from May 11, 2018 to September 30, 2018. The pro forma financial information for all periods presented has been calculated after applying GSE's accounting policies and has also included pro forma adjustments resulting from these acquisitions, including amortization charges of the intangible assets identified from these acquisitions, interest expenses related to the financing transaction in connection with the acquisition of True North, and the related tax effects as if aforementioned companies were combined as of January 1, 2017. For the nine months ended September 30, 2018, the Company has incurred $0.5 million of transaction costs related to the acquisition of True North. These expenses are included in general and administrative expense on GSE's consolidated statements of operations and are reflected in pro forma loss for the nine months ended September 30, 2017, in the table above. The pro forma financial information is not intended to reflect the actual results of operations that would have occurred if the acquisition had been completed on January 1, 2017, nor is it intended to be an indication of future operating results.

Restructuring Activities

Restructuring Activities	9 Months Ended
	Sep. 30, 2018
Restructuring Activities [Abstract]
Restructuring Activities	5. Restructuring Activities On December 27, 2017, the board of GSE Systems, Inc. approved an international restructuring plan to streamline and optimize the Company's global operations. Beginning in December 2017, GSE has been in the process of consolidating its engineering services and R&D activities to Maryland and ceasing an unprofitable non-core business in the United Kingdom (UK). As a result, the Company closed its offices in Nyköping, Sweden; Chennai, India; and Stockton-on-Tees, UK. These actions are designed to improve Company productivity by eliminating duplicate employee functions, increasing GSE's focus on its core business, improving efficiency and maintaining the full range of engineering capabilities while reducing costs and organizational complexity. GSE eliminated approximately 40 positions due to these changes, primarily in Europe and India, and will undertake other cost-savings measures. The restructuring plan is expected to be completed by the end of 2018. As a result of these efforts, as shown in the table below, GSE expects to record a total restructuring charge of approximately $2.1 million, primarily related to workforce reductions, contract termination costs and asset write-offs due to the exit activities. As of September 30, 2018, we had recorded restructuring charges totaling $1.9 million ($1.2 million during the nine months ended September 30, 2018). In addition to the restructuring costs in the table below, the Company has an estimated $1.6 million of cumulative translation adjustments that will be charged against net income (loss) and an estimated $1.0 million of tax benefits that will be realized upon liquidation of these foreign entities. GSE expects to recognize the remaining restructuring costs, currency translation adjustments and tax benefits by the end of 2018. The following tables summarize the restructuring costs and restructuring liabilities at September 30, 2018: ( in thousands September 30, 2018 Total Expected Costs Costs Incurred to Date Expected Costs Remaining Employee termination benefits $ 824 $ 824 $ - Lease termination costs 591 591 - Assets write-offs/impairment 222 222 - Other restructuring costs 432 273 159 Total Restructuring costs $ 2,069 $ 1,910 $ 159 The restructuring costs related to our Performance Improvement Solutions segment and are included in the consolidated statements of operations within the "Restructuring charges" line caption. Employee termination benefits Lease termination costs Other Restructuring costs Total Balance as of January 1, 2018 $ 465 $ - $ 33 $ 498 Accruals 359 591 227 1,177 Payments (632 ) (613 ) (260 ) (1,505 ) Currency translation and other adjustments (11 ) 71 - 60 Balance as of September 30, 2018 $ 181 $ 49 $ - $ 230 The accrued employee termination benefits were included in "accrued compensation", and the accrued lease termination costs were included in "accrued expenses" in the consolidated balance sheets.

Contingent Consideration

Contingent Consideration	9 Months Ended
	Sep. 30, 2018
Contingent Consideration [Abstract]
Contingent Consideration	6. Contingent Consideration Acquisitions may include contingent consideration payments based on future financial measures of an acquired company. Under ASC 805, Business Combinations As of December 31, 2017, the remaining contingent consideration, related to our acquisition of Hyperspring in 2014 was $1.7 million, all of which was paid in January 2018. There was no contingent consideration liability as of September 30, 2018.

Contract Receivables

Contract Receivables	9 Months Ended
	Sep. 30, 2018
Contract Receivables [Abstract]
Contract Receivables	7. Contract Receivables Contract receivables represent the Company's unconditional rights to consideration due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months. The components of contract receivables are as follows: (in thousands) September 30, December 31, 2018 2017 Billed receivables $ 12,592 $ 8,154 Unbilled receivables 6,926 5,980 Allowance for doubtful accounts (280 ) (137 ) Total contract receivables, net $ 19,238 $ 13,997 Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce our receivables to their net realizable value when it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the receivable. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, and specific identification and review of customer accounts. During the nine months ended September 30, 2018 and 2017, the Company recorded allowances for doubtful accounts of $146,000 and $118,000, respectively. During October 2018, the Company invoiced $5.0 million of the unbilled amounts related to the balance at September 30, 2018. As of September 30, 2018, the Company had two customers that accounted for 19.7% and 13.1% of its consolidated contract receivables, respectively. As of December 31, 2017, the Company had one customer that accounted for 26.7% of its consolidated contract receivables.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2018
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid Expenses and Other Current Assets	8. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: (in thousands) September 30, December 31, 2018 2017 Inventory $ 261 $ 755 Income taxes receivable 296 418 Prepaid expenses 298 549 Other current assets 769 1,073 Total prepaid expenses and other current assets $ 1,624 $ 2,795 At September 30, 2018 and December 31, 2017, prepaid expenses and other current assets are comprised primarily of inventory and other current assets. Inventory has been purchased and used to support the construction of three major nuclear simulation projects related to a significant contract that was executed during the first quarter of 2016. Inventory is recorded at the lower of cost or net realizable value in accordance with ASC 330, Inventory.

Software Development Costs, Net

Software Development Costs, Net	9 Months Ended
	Sep. 30, 2018
Software Development Costs, Net [Abstract]
Software Development Costs, Net	9. Software Development Costs, Net 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 carrying amount of such asset to its estimated fair value based on the future discounted cash flows. The excess of any unamortized computer software costs over the related fair value is written down and charged to operations. Software development costs capitalized were $53,000 and $325,000 for the three and nine months ended September 30, 2018, respectively, and $38,000 and $126,000 for the three and nine months ended September 30, 2017, respectively. Total amortization expense was $150,000 and $353,000 for the three and nine months ended September 30, 2018, respectively, and $118,000 and $352,000 for the three and nine months ended September 30, 2017, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	10. Goodwill and Intangible Assets The Company's intangible assets include amounts recognized in connection with business acquisitions, including customer relationships, trade names, non-compete agreements and alliance agreements. 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. 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. GAAP. After the acquisition of Hyperspring on November 14, 2014, the Company determined that it had two reporting units, which are the same as our two operating segments: (i) Performance Improvement Solutions; and (ii) Nuclear Industry Training and Consulting (which includes Hyperspring and Absolute). The change in the net carrying amount of goodwill from December 31, 2017 through September 30, 2018 was comprised of the following items: ( in thousands Performance Improvement Solutions Nuclear Industry Training and Consulting Total Balance, January 1, 2018 $ - $ 8,431 $ 8,431 Acquisition 3,754 - 3,754 Balance, September 30, 2018 $ 3,754 $ 8,431 $ 12,185 No events or circumstances occurred during the current reporting period that would indicate impairment of such goodwill. Amortization of intangible assets other than goodwill is recognized on a straight-line basis over the estimated useful life of the intangible assets, except for 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, other than goodwill. There were no indications of impairment of intangible assets during the current reporting period. The increase in intangible assets during the three and nine months ended September 30, 2018 was due to the acquisition of True North. See Note 4, Acquisitions

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2018
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	11. 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. At September 30, 2018, and December 31, 2017, 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 fair value based upon their short-term nature. As discussed in Note 14, Debt based on Level 2 inputs since the debt carries a variable interest rate that is tied to the current LIBOR rate plus an applicable spread For the three and nine months ended September 30, 2018, the Company did not have any transfers between fair value Level 1, Level 2 or Level 3. The Company did not hold any non-financial assets or non-financial liabilities subject to fair value measurements on a recurring basis at September 30, 2018. The following table presents assets and liabilities measured at fair value at September 30, 2018: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds $ 852 $ - $ - $ 852 Foreign exchange contracts - 14 - 14 Total assets $ 852 $ 14 $ - $ 866 Liability awards $ - $ (404 ) $ - $ (404 ) Interest rate swap contract - (39 ) - (39 ) Total liabilities $ - $ (443 ) $ - $ (443 ) Money market funds at both September 30, 2018 and December 31, 2017 are included in cash and cash equivalents in the respective consolidated balance sheets. The following table presents assets and liabilities measured at fair value at December 31, 2017: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds $ 3,240 $ - $ - $ 3,240 Foreign exchange contracts - 201 - 201 Total assets $ 3,240 $ 201 $ - $ 3,441 Liability awards $ - $ (242 ) $ - $ (242 ) Contingent consideration - - (1,701 ) (1,701 ) Total liabilities $ - $ (242 ) $ (1,701 ) $ (1,943 ) The following table provides a roll-forward of the fair value of the contingent consideration categorized as Level 3 for the nine months ended September 30, 2018: (in thousands) Balance, January 1, 2018 $ 1,701 Payments made on contingent liabilities (1,701 ) Change in fair value - Balance, September 30, 2018 $ -

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2018
Derivative Instruments [Abstract]
Derivative Instruments	12. Derivative Instruments In the normal course of business, our operations are exposed to fluctuations in foreign currency values and interest rate changes. We may seek to control a portion of these risks through a risk management program that includes the use of derivative instruments. Foreign Currency Risk Management The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates and minimize credit exposure by limiting counterparties to nationally recognized financial institutions. As of September 30, 2018, the Company had foreign exchange contracts outstanding of approximately 112.5 million Japanese Yen, 3.2 million Euro, and 0.2 million Australian Dollars at fixed rates. The contracts expire on various dates through December 2018. At December 31, 2017, the Company had contracts outstanding of approximately 162.5 million Japanese Yen, 24,000 Euro, and 0.2 million Australian Dollars at fixed rates. Interest Rate Risk Management As discussed in Note 14, Debt , the Company entered into a new term loan to finance the acquisition of True North in May. The loan bears interest at adjusted one-month LIBOR plus a margin ranging between 2% and 2.75% depending on the overall leverage ratio of the Company. As part of our overall risk management policies, in June 2018, the Company entered into a pay-fixed, receive-floating interest rate swap contract with a notional amount of $9.0 million to reduce the impact associated with interest rate fluctuations . The notional value amortizes monthly in equal amounts based on the five-year principal repayment terms. The terms of the swap require the Company to pay interest on the basis of a fixed rate of 3.02%, and GSE will receive interest on the basis of one-month USD-LIBOR-BBA-Bloomberg. The Company reports all derivatives at fair value. These contracts are recognized as either assets or liabilities, depending upon the derivative's fair value. The estimated net fair values of the derivative contracts on the consolidated balance sheets are as follows: September 30, December 31, (in thousands) 2018 2017 Prepaid expenses and other current assets Foreign exchange contracts $ 14 $ 201 Total asset derivatives 14 201 Other liabilities Interest rate swaps (39 ) - Total liability derivatives (39 ) - Net fair value $ (25 ) $ 201 The Company has not designated the derivative contracts as hedges. The changes in the fair value of the derivative contracts are included in (loss) gain on derivative instruments, net, in the consolidated statements of operations. The foreign currency denominated contract 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 (loss) gain on derivative instruments, net, in the consolidated statements of operations. For the three and nine months ended September 30, 2018 and 2017, the Company recognized a net (loss) gain on its derivative instruments as outlined below: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Interest rate swap - change in fair value $ (28 ) $ - $ (39 ) $ - Foreign exchange contracts-change in fair value (14 ) 74 (178 ) 145 Remeasurement of related contract receivables, billings in excess of revenue earned, and subcontractor accruals (17 ) (3 ) (89 ) 81 (Loss) gain on derivative instruments, net $ (59 ) $ 71 $ (306 ) $ 226

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2018
Stock-Based Compensation [Abstract]
Stock-Based Compensation	13. Stock-Based Compensation The Company recognizes compensation expense for all equity-based compensation awards issued to employees and directors that are expected to vest. Compensation cost is based on the fair value of awards as of the grant date. The Company recognized $0.4 million and $0.5 million of stock-based compensation expense related to equity awards for the three months ended September 30, 2018 and 2017, respectively, and recognized $1.4 million and $1.8 million of stock-based compensation expense related to equity awards for the nine months ended September 30, 2018 and 2017, respectively, under the fair value method. In addition to the equity-based compensation expense recognized, the Company also recognized $105,000 and $92,000 of stock-based compensation related to the change in the fair value of cash-settled restricted stock units (RSUs) during the three months ended September 30, 2018 and 2017, respectively. During the nine months ended September 30, 2018 and 2017, the Company recorded an expense of $165,000 and a net reduction of $80,000 in the fair value of cash-settled RSUs, respectively. During the three and nine months ended September 30, 2018, the Company granted 0 and 388,526 time-based RSUs with an aggregate fair value of $0.0 million and $1.3 million, respectively. For the three and nine months ended September 30, 2017, the Company granted 0 and 396,677 time-based RSUs with an aggregate fair value of $0.0 million and $1.4 million, respectively. A portion of the time-based RSUs vest quarterly in equal amounts over the course of eight quarters, a portion vest one year after grant and the remainder vest annually in equal amounts over the course of three years. The fair value of the time-based RSUs is expensed ratably over the requisite service period, which ranges from one to three years. During the nine months ended September 30, 2018 and 2017, the Company did not grant performance-based RSUs or stock options.

Debt

Debt	9 Months Ended
	Sep. 30, 2018
Debt [Abstract]
Debt	14. Debt Citizens Bank The Company entered into a three-year, $5.0 million revolving line of credit facility (RLOC) with Citizens Bank, National Association (the Bank) on December 29, 2016, to fund general working capital needs. On May 11, 2018, GSE and Performance Solutions (collectively, the Borrower) entered into an Amended and Restated Credit and Security Agreement (the Credit Agreement) with the Bank, amending and restating the Company's existing Credit and Security Agreement with the Bank, which included a $5.0 million asset-based revolving credit facility between the Borrower and the Bank, to now include (a) a $5.0 million revolving credit facility not subject to a borrowing base, including a letter of credit sub-facility, and (b) a $25.0 million delayed draw term loan facility available to be drawn upon for up to 18 months and to finance certain permitted acquisitions by the Borrower. The credit facilities mature in five years and bear interest at LIBOR plus a margin that varies depending on the overall leverage ratio of the Borrower and its subsidiaries. Revolving loans are interest-only with principal due at maturity, while term loans require monthly payments of principal and interest based on an amortization schedule. The Borrower's obligations under the Credit Agreement are guaranteed by GSE's wholly-owned subsidiaries Hyperspring, Absolute, and True North and by any future material domestic subsidiaries (collectively, the Guarantors). The credit facilities are secured by liens on all assets of the Borrower and the Guarantors. RLOC We intend to continue using the RLOC for short-term working capital needs and the issuance of letters of credit in connection with business operations. Letter of credit issuance fees range between 1.25% and 2% depending on the Company's overall leverage ratio, and the Company pays an unused RLOC fee quarterly based on the average daily unused balance. At September 30, 2018, there were no outstanding borrowings under the RLOC and five letters of credit totaling $2.3 million. The amount available at September 30, 2018, after consideration of letters of credit was approximately $2.7 million. Term Loan As discussed in Note 4, Acquisitions At September 30, 2018, the outstanding long-term debt under the delayed draw term loan facility was as follows: Long-term debt, net of discount $ 8,990 Less: current portion of long-term debt (1,901 ) Long-term debt, less current portion $ 7,089 The Credit Agreement contains customary covenants and restrictions typical for a financing of this type that, among other things, require the Borrower to satisfy certain financial covenants and restrict the Borrower's and Guarantors' ability to incur additional debt, pay dividends and make distributions, make certain investments and acquisitions, repurchase its stock and prepay certain indebtedness, create liens, enter into agreements with affiliates, modify the nature of its business, enter into sale-leaseback transactions, transfer and sell material assets and merge or consolidate. Non-compliance with one or more of the covenants and restrictions after any applicable grace period could result in the obligations under the Credit Agreement becoming immediately due and payable and termination of the credit facilities. In addition to non-compliance with covenants and restrictions, the Credit Agreement also contains other customary events of default. If an event of default under the Credit Agreement occurs and is continuing, then the Bank may declare the obligations under the Credit Agreement to be immediately due and payable and may terminate the credit facilities. At September 30, 2018, the Company was in compliance with its financial covenants. BB&T Bank At September 30, 2018 and December 31, 2017, the cash collateral account with BB&T totaled $0.0 million and $1.0 million, respectively. The balances were classified as restricted cash on the consolidated balance sheets.

Product Warranty

Product Warranty	9 Months Ended
	Sep. 30, 2018
Product Warranty [Abstract]
Product Warranty	15. Product Warranty The Company accrues for estimated warranty costs at the time the related revenue is recognized based on historical experience and projected claims. The Company's SDB contracts generally provide a one-year base warranty on the systems. The portion of the warranty provision expected to be incurred within 12 months is classified as current within accrued warranty and totals $1.1 million, while the remaining $0.6 million is classified as long-term within other liabilities. The activity in the accrued warranty accounts is as follows: (in thousands) Balance, January 1, 2018 $ 1,953 Current period provision (73 ) Current period claims (183 ) Currency adjustment (10 ) Balance at September 30, 2018 $ 1,687

Revenue

Revenue	9 Months Ended
	Sep. 30, 2018
Revenue [Abstract]
Revenue	16. Revenue We generate revenue primarily through three broad revenue streams: 1) SDB, 2) Software, and 3) Training and Consulting Services. We recognize revenue from SDB and software contracts mainly through the Performance Improvement Solutions segment and the training and consulting service contracts through both the Performance Improvement Solutions segment and Nuclear Industry Training and Consulting segment. The following table represents a disaggregation of revenue by type of goods or services for the three and nine months ended September 30, 2018 and 2017, along with the reportable segment for each category: ( in thousands Three months ended September 30, Nine months ended September 30, 2018 2017 (1) 2018 2017 (1) Performance Improvement Solutions segment System Design and Build $ 5,109 $ 5,736 $ 19,904 $ 21,828 Software 586 889 2,001 2,436 Training and Consulting Services 4,154 2,112 8,709 5,829 Nuclear Industry Training and Consulting segment Training and Consulting Services 11,952 6,672 38,780 18,783 Total revenue $ 21,801 $ 15,409 $ 69,394 $ 48,876 (1) SDB contracts are typically fixed-priced, and we receive payments based on a billing schedule as established in our contracts. The transaction price for software contracts is generally fixed. Fees for software are normally due in advance of or shortly after delivery of the software. Fees for PCS are normally paid in advance of the service period. For Training and Consulting Services, the customers are generally billed on a regular basis, such as weekly, biweekly or monthly, for services provided. Contract liability, which we classify as billing in excess of revenue earned, relates to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied. The following table reflects the balance of contract liabilities and the revenue recognized in the reporting period that was included in the contract liabilities from contracts with customers: ( in thousands September 30, 2018 December 31, 2017 Billings in excess of revenue earned (BIE) $ 7,810 $ 14,543 Revenue recognized in the period from amounts included in BIE at the beginning of the period $ 9,934 N/A For an SDB contract, we generally have two main performance obligations: the training simulator build and PCS. The training simulator build generally includes hardware, software, and labor. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method. In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. 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. For the three and nine months ended September 30, 2018, the Company recognized revenue of $1.1 million related to performance obligations satisfied in previous periods. As of September 30, 2018, the aggregate amount of transaction price allocated to the remaining performance obligations of SDB, software and fixed-price training and consulting services contracts is $49.6 million. The Company will recognize the revenue as the performance obligations are satisfied, which is expected to occur over the next 12 months. Part of the training and consulting services contracts are T&M based. Under a typical T&M contract, the Company is compensated based on the number of hours of approved time provided by temporary workers and the bill rates, which are fixed per type of work, as well as approved expenses incurred. As part of our adoption of ASU 2014-09, we have elected to use the optional exemption under ASC 606-10-50-14(b), pursuant to which we have excluded disclosures of transaction prices allocated to remaining performance obligations under such contracts and when we expect to recognize the revenue.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Taxes [Abstract]
Income Taxes	17. Income Taxes The following table presents the (benefit) provision for income taxes and the effective tax rates: (in thousands) Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Provision for income taxes $ 314 $ 92 $ 124 $ 399 Effective tax rate (153.9 )% (17.9 )% (13.6 )% 112.4 % The Company's income tax (benefit) provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. Tax expense in 2018 is comprised mainly of federal income tax expense, foreign income tax expense, and state taxes. Tax expense in 2017 is comprised mainly of foreign income tax expense, Alternative Minimum Tax, state taxes, and deferred tax expense relating to the tax amortization of goodwill. Our effective tax rates were (153.9)% and (13.6%) for the three and nine months ended September 30, 2018. For the three months ended September 30, 2018, the difference between our effective tax rate of (153.9)% and the U.S. statutory federal income tax rate of 21% was primarily due to permanent differences, accruals related to uncertain tax positions for certain foreign tax contingencies, discrete item adjustments for the foreign taxes, and return to provision true-ups which were known as of September 30, 2018. For the nine months ended September 30, 2018, the difference between the effective tax rate of (13.6)% and the U.S. statutory federal income tax rate of 21% was primarily due to changes in jurisdictional income and the inclusion of income (loss) from an acquisition in the second quarter of 2018. Because of its net operating loss carryforwards, the Company is subject to U.S. federal and state income tax examinations from the year 1997 and forward. The Company is subject to foreign tax examinations by tax authorities for years 2011 forward for Sweden, 2015 forward for China, 2015 forward for India, and 2016 for the UK. An uncertain tax position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not ( i.e. The Company recognizes deferred tax assets to the extent that it is believed that these assets are more likely than not to be realized. The Company has evaluated all positive and negative evidence and determined that it will continue to assess a full valuation allowance on its Chinese, Swedish and U.K. net deferred assets as of September 30, 2018. The Company has determined that it is more likely than not that it will realize the benefits of its deferred taxes in the U.S. and India. The Company follows the guidance in SEC Staff Accounting Bulletin 118 (SAB 118), which provides additional clarification regarding the application of ASC 740 The Company recognizes the tax on GILTI as a period cost in the period the tax is incurred. Under this policy, we have not provided deferred taxes related to temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period. For the nine months ended September 30, 2018, there is no GILTI inclusion. The Company has made an entity classification (CTB) election to treat GSE UK as a disregarded entity effective January 1, 2018. Therefore, as of January 1, 2018, GSE UK is treated as a branch of the US for tax purposes. Accordingly, GSE UK's 2018 activity has been included in the US Company's income tax (benefit) provision. During the quarter ended June 30, 2018, the Company identified an immaterial error of $1.2 million, or $0.06 per share, in the December 31, 2017 financial statements related to the release of the valuation allowance against deferred tax assets attributable to windfall tax benefits recognized upon the adoption of ASU 2016-09. The portion relating to ASU 2016-09 should have been recorded to the consolidated statement of operations as an increase to our benefit for income taxes with a resulting increase to net income during the year ended December 31, 2017, however, the adjustment was recorded to accumulated deficit in the consolidated statement of changes in stockholders' equity. This had no impact to the ending accumulated deficit balance at December 31, 2017. Additionally, the Company identified a $0.7 million classification error between deferred tax asset and deferred tax liability at December 31, 2017 due to improper netting of deferred taxes by jurisdiction. Accordingly, we reclassified $0.7 million of deferred tax liabilities, which was included in other liabilities to deferred tax assets in our December 31, 2017 consolidated balance sheet. The Company evaluated the required changes and determined that their impact was not material. The financial statements for the year ended December 31, 2018 will reflect the correct comparative data.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Information [Abstract]
Segment Information	18. 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 engineering services include, but not limited to, plant design verification and validation, thermal performance evaluation and optimization programs, and engineering programs for plants for ASME code and ASME Section XI. The Company provides these services across all market segments. Example training applications include turnkey and custom training services. Contract terms are typically less than two 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 our Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the GSE product and service portfolio. As discussed in Note 4, Acquisitions 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 income before income taxes: (in thousands) Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Revenue: Performance Improvement Solutions $ 9,849 $ 8,737 $ 30,614 $ 30,093 Nuclear Industry Training and Consulting 11,952 6,672 38,780 18,783 21,801 15,409 69,394 48,876 Operating income: Performance Improvement Solutions 494 (892 ) 110 (6 ) Nuclear Industry Training and Consulting (520 ) 339 (584 ) 455 Change in fair value of contingent consideration, net - (79 ) - (376 ) Operating (loss) income (26 ) (632 ) (474 ) 73 Interest (expense) income, net (114 ) 15 (153 ) 60 (Loss) gain on derivative instruments, net (59 ) 71 (306 ) 226 Other (expense) income, net (5 ) 33 24 (4 ) (Loss) income before income taxes $ (204 ) $ (513 ) $ (909 ) $ 355 Effective January 2018, and due to the acquisition of Absolute, the Performance Improvement Solutions allocated corporate overhead to the Nuclear Industry Training and Consulting segment. For the three months ended September 30, 2018 and 2017, a total of $1.3 million and $0.7 million of corporate overhead, respectively, was allocated to Nuclear Industry Training and Consulting segment. For the nine months ended September 30, 2018 and 2017, a total of $3.4 million and $1.9 million of corporate overhead, respectively, was allocated to Nuclear Industry Training and Consulting segment. Prior period amounts were reclassified to reflect the change.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Information [Abstract]
Supplemental Cash Flow Information	19. Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: September 30, 2018 December 31, 2017 Cash and cash equivalents $ 9,831 $ 19,111 Restricted cash 9 960 Cash, cash equivalents, and restricted cash $ 9,840 $ 20,071

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated interim financial statements included herein have been prepared by GSE Systems, Inc. (the Company, GSE, we, us, or our) and are unaudited. In the opinion of the Company's management, all adjustments and reclassifications of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. The results of operations for interim periods are not necessarily an indication of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 16, 2018. The Company has two reportable segments as follows: ● Performance Improvement Solutions (approximately 44% of revenue) Our Performance Improvement Solutions segment primarily encompasses our technical engineering and power plant high-fidelity simulation solutions and interactive computer-based tutorials/simulation focused on the process industry. This segment includes various simulation products, engineering services, and operation training systems delivered across the industries we serve: primarily nuclear and fossil fuel power generation, as well as the process industries. Our simulation solutions include the following: (1) simulation software and services, including operator training systems, for the nuclear power industry, (2) simulation software and services, including operator training systems, for the fossil power industry, and (3) simulation software and services for the process industries used to teach fundamental industry processes and control systems to newly hired employees and for ongoing workforce development and training. GSE and its predecessors have been providing these services since 1976. ● Nuclear Industry Training and Consulting (approximately 56% of revenue) Nuclear Industry Training and Consulting provides highly specialized and skilled nuclear operations instructors, procedure writers, technical engineers, and other consultants to the nuclear power industry. These employees work at our clients' facilities under client direction. Examples of these highly skilled positions are senior reactor operations instructors, procedure writers, project managers, work management specialists, planners and training material developers. This business is managed through the Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the Company's product and service portfolio. GSE and its predecessors have been providing these services since 1997. Financial information about the two business segments is provided in Note 18 of the accompanying condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP 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 financial statements as well as reported amounts of revenues and expenses during the reporting period. The Company's most significant estimates relate to revenue recognition on contracts with customers, allowance for doubtful accounts, product warranties, valuation of goodwill and intangible assets acquired, valuation of long-lived assets to be disposed of, valuation of contingent consideration issued in business acquisitions, valuation of stock-based compensation awards, and the recoverability of deferred tax assets. Actual results could differ from these estimates and those differences could be material.
Revenue Recognition	Revenue recognition The Company derives its revenue through three broad revenue streams: 1) System Design and Build (SDB), 2) Software, and 3) Training and Consulting services. We recognize revenue from SDB and software contracts mainly through the Performance Improvement Solutions segment and the training and consulting service contracts through both the Performance Improvement Solutions segment and Nuclear Industry Training and Consulting segment. The SDB contracts are typically fixed-price and consist of initial design, engineering, assembly and installation of training simulators which include hardware, software, labor, and post contract support (PCS) on the software. We generally have two main performance obligations for an SDB contract: the training simulator build and PCS. The training simulator build performance obligation generally includes hardware, software, and labor. The transaction price under the SDB contracts is allocated to each performance obligation based on its standalone selling price. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method as our performance creates or enhances assets with no alternative use to the Company, and we have an enforceable right to payment for performance completed to date. Cost-to-cost input method best measures the progress toward complete satisfaction of the performance obligation. PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation. In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. 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. The SDB contracts generally on the systems. The base warranty will not be accounted for as a separate performance obligation under the contract because it does not provide the customer with a service in addition to the assurance evaluated on a case by case basis to determine if it provides more than just assurance that the product operates as intended, which requires carve-out as a separate performance obligation. Revenue from the sale of perpetual standalone software licenses, which do not require significant modification or customization, is recognized upon its delivery to the customer. Revenue from the sale of term or subscription-based standalone software licenses, which do not require significant modification or customization, is recognized ratably over the term of such licenses following delivery to the customer. Delivery is considered to have occurred when the customer receives a copy of the software and is able to use and benefit from the software. A software license sale contract with multiple deliverables typically includes the following elements: license, installation and training services and PCS. The total transaction price of a software license sale contract is typically fixed, and is allocated to the identified performance obligations based on their relative standalone selling prices. Revenue is recognized as the performance obligations are satisfied. Specifically, license revenue is recognized when the software license is delivered to the customer; installation and training revenue is recognized when the installation and training is completed without regard to a detailed evaluation of the point in time criteria due to the short-term nature of the installation and training services (one to two days on average); and PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation. The contracts within the training and consulting services revenue stream are either time and materials (T&M) based or fixed-price based. Under a typical T&M contract, the Company is compensated based on the number of hours of approved time provided by temporary workers and the bill rates which are fixed per type of work, as well as approved expenses incurred. The customers are billed on a regular basis, such as weekly, biweekly or monthly. In accordance with Accounting Standards Codification (ASC) 606-10-55-18, we elected to apply the "right to invoice" practical expedient, under which we recognize revenue in the amount to which we have the right to invoice. The invoice amount represents the number of hours of approved time worked by each temporary worker multiplied by the bill rate for the type of work, as well as approved expenses incurred. Under a typical fixed-price contract, we recognize the revenue over the service period using the cost-to-cost input method as the Company's performance does not create an asset with an alternative use to the Company, and we have an enforceable right to payment for performance completed to date. Cost-to-cost input method best measures the progress toward complete satisfaction of the performance obligation. For contracts with multiple performance obligations, we allocate the contract price to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2018
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Accounting pronouncements recently adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers . Subsequently, the FASB issued a series of updates to the revenue recognition guidance in ASC 606, Revenue from Contracts with Customers . Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized at an amount that reflects the consideration expected to be received in exchange for such goods or services. In addition, the new accounting standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for the fiscal year ending December 31, 2018 and interim periods therein. We adopted ASU 2014-09 and all the related updates (collectively, the new revenue standard) on January 1, 2018 to (1) all new contracts This adoption primarily affected our software license sales with multiple deliverables, which typically include the following elements: license, installation and training services and PCS. Under the legacy The impact of adoption on our consolidated statement of operations and balance sheet was as follows ( in thousands Income Statement Three months ended September 30, 2018 Nine months ended September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change As Reported Balance without adoption of ASC 606 Effect of Change Revenue $ 21,801 $ 21,952 $ (151 ) $ 69,394 $ 69,666 $ (272 ) Gross profit 5,421 5,572 (151 ) 16,659 16,931 (272 ) Provision for income taxes 314 296 (18 ) 124 201 77 Net loss (518 ) (349 ) (169 ) (1,033 ) (838 ) (195 ) Balance Sheet September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change Contract receivables, net $ 19,238 $ 19,238 $ - Deferred tax assets 6,203 6,367 (164 ) Billings in excess of revenue earned 7,810 8,492 (682 ) Accumulated deficit (43,248 ) (43,766 ) 518 In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The new guidance addresses eight specific cash flow issues and applies to all entities that are required to present a statement of cash flows. ASU 2016-15 was effective for fiscal reporting periods beginning after December 15, 2017, including interim reporting periods within those fiscal years. We adopted ASU 2016-15 on January 1, 2018, on a retrospective basis. Upon the adoption of ASU 2016-15, cash payments made to settle a contingent consideration liability from an acquisition in excess of the amount recognized at the acquisition date are classified as operating activities, which were previously presented as financing activities. The comparative statement of cash flows has been restated to include only the payments made to settle the contingent liability related to the original amount recognized at the acquisition date in the financing activities; previously, the payment of $0.4 million related to fair value adjustment and interest accretion of the contingent liability was included in financing activities. Upon the adoption of ASU 2016-15, it was reclassified as an operating activity. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the definition of a Business In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation Compensation – Stock Compensation Accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment

Recent Accounting Pronounceme_3

Recent Accounting Pronouncements (Tables)	9 Months Ended
	Sep. 30, 2018
Recent Accounting Pronouncements [Abstract]
Impact of Adoption on our Consolidated Statement of Operations and Balance Sheet	The impact of adoption on our consolidated statement of operations and balance sheet was as follows ( in thousands Income Statement Three months ended September 30, 2018 Nine months ended September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change As Reported Balance without adoption of ASC 606 Effect of Change Revenue $ 21,801 $ 21,952 $ (151 ) $ 69,394 $ 69,666 $ (272 ) Gross profit 5,421 5,572 (151 ) 16,659 16,931 (272 ) Provision for income taxes 314 296 (18 ) 124 201 77 Net loss (518 ) (349 ) (169 ) (1,033 ) (838 ) (195 ) Balance Sheet September 30, 2018 As Reported Balance without adoption of ASC 606 Effect of Change Contract receivables, net $ 19,238 $ 19,238 $ - Deferred tax assets 6,203 6,367 (164 ) Billings in excess of revenue earned 7,810 8,492 (682 ) Accumulated deficit (43,248 ) (43,766 ) 518

Basic and Diluted Loss per Co_2

Basic and Diluted Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2018
Basic and Diluted Loss per Common Share [Abstract]
Number of Common Shares and Common Share Equivalents Used in the Determination of Basic and Diluted Loss Per Share	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 share amounts) Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net loss $ (518 ) $ (605 ) $ (1,033 ) $ (44 ) Denominator: Weighted-average shares outstanding for basic loss per share 19,786,888 19,280,770 19,620,207 19,204,778 Effect of dilutive securities: Stock options and restricted stock units - - - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 19,786,888 19,280,770 19,620,207 19,204,778 Shares related to dilutive securities excluded because inclusion would be anti-dilutive 713,024 534,833 645,714 550,218

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2018
Business Acquisition [Abstract]
Business Acquisition, Pro Forma Information	Unaudited Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of operations for GSE, True North, and Absolute as if the business combinations had occurred on January 1, 2017. Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 ( unaudited and in thousands Revenue $ 21,801 $ 24,975 $ 72,564 $ 83,337 Net loss (361 ) (736 ) (2,178 ) (1,224 )
True North Consulting, LLC [Member]
Business Acquisition [Abstract]
Consideration Paid For Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid to acquire True North and the preliminary fair value of the assets acquired and liabilities assumed at the date of the transaction. Due to the recent completion of the acquisition, the Company recorded the assets acquired and liabilities assumed at their preliminary estimated fair value. As of September 30, 2018, the Company had not finalized the determination of the fair value allocated to various assets and liabilities, including, but not limited to, contract receivables, prepaid expenses and other current assets, intangible assets, accounts payable, accrued expenses, accrued compensation and the residual amount allocated to goodwill. The following amounts except for cash are all reflected in the consolidated statement of cash flows within the "Acquisition of True North Consulting, net of cash acquired" line caption. ( in thousands Total purchase price $ 9,941 Purchase price allocation: Cash 306 Contract receivables 2,345 Prepaid expenses and other current assets 4 Property, and equipment, net 1 Intangible assets 5,088 Accounts payable, accrued expenses (1,420 ) Accrued compensation (137 ) Total identifiable net assets 6,187 Goodwill 3,754 Net assets acquired $ 9,941
Fair Value of Intangible Assets Acquired and Related Weighted Average Amortization Period	The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period: Intangible Assets Weighted average amortization period Fair Value (in years) (in thousands) Customer relationships 15 $ 3,758 Tradename 10 582 Non-compete agreements 4 221 Alliance agreements 5 527 Total $ 5,088
Absolute Consulting, Inc. [Member]
Business Acquisition [Abstract]
Consideration Paid For Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid to acquire Absolute and the fair value of the assets acquired and liabilities assumed at the date of the transaction. (in thousands) Total purchase price $ 9,521 Purchase price allocation: Cash $ 455 Contract receivables 5,121 Prepaid expenses and other current assets 68 Property, and equipment, net 184 Intangible assets 2,569 Accounts payable, accrued expenses, and other liabilities (78 ) Accrued compensation (1,617 ) Total identifiable net assets 6,702 Goodwill 2,819 Net assets acquired $ 9,521
Fair Value of Intangible Assets Acquired and Related Weighted Average Amortization Period	The Company identified $2.6 million of other intangible assets, including customer relationships and trademarks/names, with amortization periods of three to ten years. The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period: Intangible Assets Weighted average amortization period Fair Value (in years) (in thousands) Customer relationships 10 $ 1,856 Trademarks/Names 3 713 Total $ 2,569

Restructuring Activities (Table

Restructuring Activities (Tables)	9 Months Ended
	Sep. 30, 2018
Restructuring Activities [Abstract]
Restructuring and Related Costs	The following tables summarize the restructuring costs and restructuring liabilities at September 30, 2018: ( in thousands September 30, 2018 Total Expected Costs Costs Incurred to Date Expected Costs Remaining Employee termination benefits $ 824 $ 824 $ - Lease termination costs 591 591 - Assets write-offs/impairment 222 222 - Other restructuring costs 432 273 159 Total Restructuring costs $ 2,069 $ 1,910 $ 159
Restructuring Reserve by Type of Cost	The restructuring costs related to our Performance Improvement Solutions segment and are included in the consolidated statements of operations within the "Restructuring charges" line caption. Employee termination benefits Lease termination costs Other Restructuring costs Total Balance as of January 1, 2018 $ 465 $ - $ 33 $ 498 Accruals 359 591 227 1,177 Payments (632 ) (613 ) (260 ) (1,505 ) Currency translation and other adjustments (11 ) 71 - 60 Balance as of September 30, 2018 $ 181 $ 49 $ - $ 230

Contract Receivables (Tables)

Contract Receivables (Tables)	9 Months Ended
	Sep. 30, 2018
Contract Receivables [Abstract]
Contract Receivables	The components of contract receivables are as follows: (in thousands) September 30, December 31, 2018 2017 Billed receivables $ 12,592 $ 8,154 Unbilled receivables 6,926 5,980 Allowance for doubtful accounts (280 ) (137 ) Total contract receivables, net $ 19,238 $ 13,997

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: (in thousands) September 30, December 31, 2018 2017 Inventory $ 261 $ 755 Income taxes receivable 296 418 Prepaid expenses 298 549 Other current assets 769 1,073 Total prepaid expenses and other current assets $ 1,624 $ 2,795

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets [Abstract]
Change in Net Carrying Amount of Goodwill	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. 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. GAAP. After the acquisition of Hyperspring on November 14, 2014, the Company determined that it had two reporting units, which are the same as our two operating segments: (i) Performance Improvement Solutions; and (ii) Nuclear Industry Training and Consulting (which includes Hyperspring and Absolute). The change in the net carrying amount of goodwill from December 31, 2017 through September 30, 2018 was comprised of the following items: ( in thousands Performance Improvement Solutions Nuclear Industry Training and Consulting Total Balance, January 1, 2018 $ - $ 8,431 $ 8,431 Acquisition 3,754 - 3,754 Balance, September 30, 2018 $ 3,754 $ 8,431 $ 12,185

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
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 September 30, 2018: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds $ 852 $ - $ - $ 852 Foreign exchange contracts - 14 - 14 Total assets $ 852 $ 14 $ - $ 866 Liability awards $ - $ (404 ) $ - $ (404 ) Interest rate swap contract - (39 ) - (39 ) Total liabilities $ - $ (443 ) $ - $ (443 ) Money market funds at both September 30, 2018 and December 31, 2017 are included in cash and cash equivalents in the respective consolidated balance sheets. The following table presents assets and liabilities measured at fair value at December 31, 2017: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Money market funds $ 3,240 $ - $ - $ 3,240 Foreign exchange contracts - 201 - 201 Total assets $ 3,240 $ 201 $ - $ 3,441 Liability awards $ - $ (242 ) $ - $ (242 ) Contingent consideration - - (1,701 ) (1,701 ) Total liabilities $ - $ (242 ) $ (1,701 ) $ (1,943 )
Rollforward of Fair Value of Contingent Consideration as Level 3	The following table provides a roll-forward of the fair value of the contingent consideration categorized as Level 3 for the nine months ended September 30, 2018: (in thousands) Balance, January 1, 2018 $ 1,701 Payments made on contingent liabilities (1,701 ) Change in fair value - Balance, September 30, 2018 $ -

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Instruments [Abstract]
Estimated Fair Value of the Contracts in the Consolidated Balance Sheets	The Company reports all derivatives at fair value. These contracts are recognized as either assets or liabilities, depending upon the derivative's fair value. The estimated net fair values of the derivative contracts on the consolidated balance sheets are as follows: September 30, December 31, (in thousands) 2018 2017 Prepaid expenses and other current assets Foreign exchange contracts $ 14 $ 201 Total asset derivatives 14 201 Other liabilities Interest rate swaps (39 ) - Total liability derivatives (39 ) - Net fair value $ (25 ) $ 201
Net (Loss) Gain on Derivative Instruments	For the three and nine months ended September 30, 2018 and 2017, the Company recognized a net (loss) gain on its derivative instruments as outlined below: Three months ended September 30, Nine months ended September 30, (in thousands) 2018 2017 2018 2017 Interest rate swap - change in fair value $ (28 ) $ - $ (39 ) $ - Foreign exchange contracts-change in fair value (14 ) 74 (178 ) 145 Remeasurement of related contract receivables, billings in excess of revenue earned, and subcontractor accruals (17 ) (3 ) (89 ) 81 (Loss) gain on derivative instruments, net $ (59 ) $ 71 $ (306 ) $ 226

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2018
Debt [Abstract]
Outstanding Long-term Debt	At September 30, 2018, the outstanding long-term debt under the delayed draw term loan facility was as follows: Long-term debt, net of discount $ 8,990 Less: current portion of long-term debt (1,901 ) Long-term debt, less current portion $ 7,089

Product Warranty (Tables)

Product Warranty (Tables)	9 Months Ended
	Sep. 30, 2018
Product Warranty [Abstract]
Activities in the Accrued Warranty Accounts	The Company accrues for estimated warranty costs at the time the related revenue is recognized based on historical experience and projected claims. The Company's SDB contracts generally provide a one-year base warranty on the systems. The portion of the warranty provision expected to be incurred within 12 months is classified as current within accrued warranty and totals $1.1 million, while the remaining $0.6 million is classified as long-term within other liabilities. The activity in the accrued warranty accounts is as follows: (in thousands) Balance, January 1, 2018 $ 1,953 Current period provision (73 ) Current period claims (183 ) Currency adjustment (10 ) Balance at September 30, 2018 $ 1,687

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue [Abstract]
Disaggregation of Revenue	The following table represents a disaggregation of revenue by type of goods or services for the three and nine months ended September 30, 2018 and 2017, along with the reportable segment for each category: ( in thousands Three months ended September 30, Nine months ended September 30, 2018 2017 (1) 2018 2017 (1) Performance Improvement Solutions segment System Design and Build $ 5,109 $ 5,736 $ 19,904 $ 21,828 Software 586 889 2,001 2,436 Training and Consulting Services 4,154 2,112 8,709 5,829 Nuclear Industry Training and Consulting segment Training and Consulting Services 11,952 6,672 38,780 18,783 Total revenue $ 21,801 $ 15,409 $ 69,394 $ 48,876 (1)
Balance of Contract Liabilities and Revenue Recognized in Reporting Period	The following table reflects the balance of contract liabilities and the revenue recognized in the reporting period that was included in the contract liabilities from contracts with customers: ( in thousands September 30, 2018 December 31, 2017 Billings in excess of revenue earned (BIE) $ 7,810 $ 14,543 Revenue recognized in the period from amounts included in BIE at the beginning of the period $ 9,934 N/A

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2018
Income Taxes [Abstract]
Provision for Income Taxes and Effective Tax Rates	The following table presents the (benefit) provision for income taxes and the effective tax rates: (in thousands) Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Provision for income taxes $ 314 $ 92 $ 124 $ 399 Effective tax rate (153.9 )% (17.9 )% (13.6 )% 112.4 %

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Information [Abstract]
Reconciliation of Segment Revenue to Consolidated Revenue and Operating Results to Consolidated Income Before Income Taxes	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 income before income taxes: (in thousands) Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Revenue: Performance Improvement Solutions $ 9,849 $ 8,737 $ 30,614 $ 30,093 Nuclear Industry Training and Consulting 11,952 6,672 38,780 18,783 21,801 15,409 69,394 48,876 Operating income: Performance Improvement Solutions 494 (892 ) 110 (6 ) Nuclear Industry Training and Consulting (520 ) 339 (584 ) 455 Change in fair value of contingent consideration, net - (79 ) - (376 ) Operating (loss) income (26 ) (632 ) (474 ) 73 Interest (expense) income, net (114 ) 15 (153 ) 60 (Loss) gain on derivative instruments, net (59 ) 71 (306 ) 226 Other (expense) income, net (5 ) 33 24 (4 ) (Loss) income before income taxes $ (204 ) $ (513 ) $ (909 ) $ 355

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Information [Abstract]
Reconciliation of Cash, Cash Equivalents and Restricted Cash Reported on Consolidated Balance Sheets	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: September 30, 2018 December 31, 2017 Cash and cash equivalents $ 9,831 $ 19,111 Restricted cash 9 960 Cash, cash equivalents, and restricted cash $ 9,840 $ 20,071

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2018SegmentStreamObligation
Summary of Significant Accounting Policies [Abstract]
Number of reportable segment | Segment	2
Revenue by major customers [Abstract]
Number of broad revenue streams | Stream	3
Number of performance obligations | Obligation	2
Warranty period	1 year
Minimum [Member]
Revenue by major customers [Abstract]
Average time period to complete installation and training	1 day
Maximum [Member]
Revenue by major customers [Abstract]
Average time period to complete installation and training	2 days
Revenue [Member] | Performance Improvement Solutions [Member]
Revenue by major customers [Abstract]
Percentage of revenue contributed by major customers	44.00%
Revenue [Member] | Nuclear Industry Training and Consulting [Member]
Revenue by major customers [Abstract]
Percentage of revenue contributed by major customers	56.00%

Recent Accounting Pronounceme_4

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017		Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 21,801	$ 15,409	[1]	$ 69,394	$ 48,876	[1]
Gross profit	5,421	4,224		16,659	13,363
Provision for income taxes	314	92		124	399
Net loss	(518)	$ (605)		(1,033)	(44)
Balance Sheet [Abstract]
Contract receivables, net	19,238			19,238
Deferred tax assets	6,203			6,203			$ 6,494
Billings in excess of revenue earned	7,810			7,810			14,543
Accumulated deficit	(43,248)			(43,248)			(42,870)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash (used in) provided by operating activities				(6,360)	2,997
Cash provided by (used in) financing activities				6,997	(1,090)
Effect of Change [Member]
Income Statement [Abstract]
Revenue	(151)			(272)
Gross profit	(151)			(272)
Provision for income taxes	(18)			77
Net loss	(169)			(195)
Balance Sheet [Abstract]
Contract receivables, net	0			0
Deferred tax assets	(164)			(164)
Billings in excess of revenue earned	(682)			(682)
Accumulated deficit	518			518			$ 655
Balance Without Adoption of ASC 606 [Member]
Income Statement [Abstract]
Revenue	21,952			69,666
Gross profit	5,572			16,931
Provision for income taxes	296			201
Net loss	(349)			(838)
Balance Sheet [Abstract]
Contract receivables, net	19,238			19,238
Deferred tax assets	6,367			6,367
Billings in excess of revenue earned	8,492			8,492
Accumulated deficit	$ (43,766)			$ (43,766)
ASU 2016-15 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash (used in) provided by operating activities					(400)
Cash provided by (used in) financing activities					$ 400
[1]	Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.

Basic and Diluted Loss per Co_3

Basic and Diluted Loss per Common Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Numerator [Abstract]
Net loss	$ (518)	$ (605)	$ (1,033)	$ (44)
Denominator [Abstract]
Weighted-average shares outstanding for basic loss per share (in shares)	19,786,888	19,280,770	19,620,207	19,204,778
Effect of dilutive securities [Abstract]
Stock options and restricted stock units (in shares)	0	0	0	0
Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share (in shares)	19,786,888	19,280,770	19,620,207	19,204,778
Shares related to dilutive securities excluded because inclusion would be anti-dilutive (in shares)	713,024	534,833	645,714	550,218

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	May 11, 2018	Sep. 20, 2017	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017		Dec. 31, 2017
Business Acquisition [Abstract]
Cash consideration before working capital adjustment		$ 8,750
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill			$ 12,185			$ 12,185	$ 12,185			$ 8,431
Business Combination, Acquired Receivables [Abstract]
Revenue			21,801	$ 15,409	[1]		69,394	$ 48,876	[1]
Net loss			(518)	(605)			(1,033)	(44)
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets acquired	$ 5,088	$ 2,569
Business Acquisition, Pro Forma Information [Abstract]
Revenue			21,801	24,975			72,564	83,337
Net loss			(361)	$ (736)			(2,178)	$ (1,224)
Minimum [Member]
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets, weighted average useful life	4 years	3 years
Maximum [Member]
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets, weighted average useful life	15 years	10 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets acquired	$ 3,758	$ 1,856
Finite-lived intangible assets, weighted average useful life	15 years	10 years
Trademarks/Names [Member]
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets acquired	$ 582	$ 713
Finite-lived intangible assets, weighted average useful life	10 years	3 years
Non-compete Agreements [Member]
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets acquired	$ 221
Finite-lived intangible assets, weighted average useful life	4 years
Alliance Agreements [Member]
Acquired Finite-Lived Intangible Assets [Abstract]
Finite-lived intangible assets acquired	$ 527
Finite-lived intangible assets, weighted average useful life	5 years
True North Consulting, LLC [Member]
Business Acquisition [Abstract]
Percentage of ownership interest acquired	100.00%
Business acquisition, name of acquired entity	True North Consulting LLC
Business acquisition, effective date of acquisition	May 11, 2018
Cash purchase price	$ 9,941
Cash consideration before working capital adjustment	9,750
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash	306
Contract receivables	2,345
Prepaid expenses and other current assets	4
Property, and equipment, net	1
Intangible assets	5,088
Accounts payable, accrued expenses, and other liabilities	(1,420)
Accrued compensation	(137)
Total identifiable net assets	6,187
Goodwill	3,754
Net assets acquired	9,941
Business Combination, Acquired Receivables [Abstract]
Tax deductible goodwill	3,754
Cash consideration in escrow	1,463
Proceeds from issuance of debt	$ 10,300
Transaction costs			$ 491			491	$ 491
Revenue						3,684
Net loss						$ (388)
Absolute Consulting, Inc. [Member]
Business Acquisition [Abstract]
Percentage of ownership interest acquired		100.00%
Business acquisition, name of acquired entity		Absolute Consulting, Inc.
Business acquisition, effective date of acquisition		Sep. 20, 2017
Cash purchase price		$ 9,521
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Cash		455
Contract receivables		5,121
Prepaid expenses and other current assets		68
Property, and equipment, net		184
Intangible assets		2,569
Accounts payable, accrued expenses, and other liabilities		(78)
Accrued compensation		(1,617)
Total identifiable net assets		6,702
Goodwill		2,819
Net assets acquired		9,521
Business Combination, Acquired Receivables [Abstract]
Tax deductible goodwill		2,819
Cash consideration in escrow		$ 1,000
[1]	Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.

Restructuring Activities (Detai

Restructuring Activities (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Position	Sep. 30, 2017USD ($)
Restructuring Activities [Abstract]
Restructuring and Related Cost, Expected Number of Positions Eliminated | Position			40
Restructuring and Related Cost, Expected Cost [Abstract]
Restructuring and Related Cost, Expected Cost, Total	$ 2,069		$ 2,069
Restructuring and Related Cost, Cost Incurred to Date	1,910		1,910
Restructuring and Related Cost, Expected Cost Remaining	159		159
Restructuring charges	70	$ 0	1,177	$ 45
Cumulative translation adjustment			1,600
Tax benefit			1,000
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			498
Accruals			1,177
Payments			(1,505)
Currency translation and other adjustments			60
Restructuring Reserve, Ending Balance	230		230
Employee Termination Benefits [Member]
Restructuring and Related Cost, Expected Cost [Abstract]
Restructuring and Related Cost, Expected Cost, Total	824		824
Restructuring and Related Cost, Cost Incurred to Date	824		824
Restructuring and Related Cost, Expected Cost Remaining	0		0
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			465
Accruals			359
Payments			(632)
Currency translation and other adjustments			(11)
Restructuring Reserve, Ending Balance	181		181
Lease Termination Costs [Member]
Restructuring and Related Cost, Expected Cost [Abstract]
Restructuring and Related Cost, Expected Cost, Total	591		591
Restructuring and Related Cost, Cost Incurred to Date	591		591
Restructuring and Related Cost, Expected Cost Remaining	0		0
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			0
Accruals			591
Payments			(613)
Currency translation and other adjustments			71
Restructuring Reserve, Ending Balance	49		49
Assets Write-offs/Impairment [Member]
Restructuring and Related Cost, Expected Cost [Abstract]
Restructuring and Related Cost, Expected Cost, Total	222		222
Restructuring and Related Cost, Cost Incurred to Date	222		222
Restructuring and Related Cost, Expected Cost Remaining	0		0
Other Restructuring Costs [Member]
Restructuring and Related Cost, Expected Cost [Abstract]
Restructuring and Related Cost, Expected Cost, Total	432		432
Restructuring and Related Cost, Cost Incurred to Date	273		273
Restructuring and Related Cost, Expected Cost Remaining	159		159
Restructuring Reserve [Roll Forward]
Restructuring Reserve, Beginning Balance			33
Accruals			227
Payments			(260)
Currency translation and other adjustments			0
Restructuring Reserve, Ending Balance	$ 0		$ 0

Contingent Consideration (Detai

Contingent Consideration (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Contingent Consideration [Abstract]
Contingent consideration accrued, current	$ 0	$ 1,701

Contract Receivables (Details)

Contract Receivables (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2018USD ($)	Sep. 30, 2018USD ($)Customer	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)Customer	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)Customer
Contract Receivables [Abstract]
Maximum term of contract receivables				12 months
Components of contract receivables [Abstract]
Billed receivables		$ 12,592		$ 12,592		$ 8,154
Unbilled receivables		6,926		6,926		5,980
Allowance for doubtful accounts		(280)		(280)		(137)
Total contract receivables, net		19,238		19,238		$ 13,997
Provision for Doubtful Accounts		$ 146	$ 118	146	$ 118
Unbilled Contract Receivables [Abstract]
Unbilled contract receivables billed during Oct 2018				$ (5,800)	$ (5,204)
Subsequent Event [Member]
Unbilled Contract Receivables [Abstract]
Unbilled contract receivables billed during Oct 2018	$ 5,000
Contract Receivable [Member]
Concentration Risk [Abstract]
Number of customers accounting for contract receivables | Customer		2		2		1
Percentage of contract receivables accounted by major customers						26.70%
Contract Receivable [Member] | Customer One [Member]
Concentration Risk [Abstract]
Percentage of contract receivables accounted by major customers				19.70%
Contract Receivable [Member] | Customer Two [Member]
Concentration Risk [Abstract]
Percentage of contract receivables accounted by major customers				13.10%

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) $ in Thousands	Sep. 30, 2018USD ($)Project	Dec. 31, 2017USD ($)
Prepaid Expenses and Other Current Assets [Abstract]
Inventory	$ 261	$ 755
Income tax receivable	296	418
Prepaid expenses	298	549
Other current assets	769	1,073
Total prepaid expenses and other current assets	$ 1,624	$ 2,795
Number of projects | Project	3

Software Development Costs, N_2

Software Development Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Software Development Costs, Net [Abstract]
Economic life of product			3 years
Software development costs capitalized	$ 53	$ 38	$ 325	$ 126
Capitalized software amortization	$ 150	$ 118	$ 353	$ 352

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)Segment
Goodwill and Intangible Assets [Abstract]
Number of reporting units | Segment	2
Number of operating segments | Segment	2
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 8,431
Acquisition	3,754
Goodwill, ending balance	12,185
Performance Improvement Solutions [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	0
Acquisition	3,754
Goodwill, ending balance	3,754
Nuclear Industry Training and Consulting [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	8,431
Acquisition	0
Goodwill, ending balance	$ 8,431

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Assets and liabilities measured at fair value [Abstract]
Money market funds	$ 852	$ 3,240
Foreign exchange contracts	14	201
Total assets	866	3,441
Liability awards	(404)	(242)
Interest rate swap contract	(39)
Contingent consideration		(1,701)
Total liabilities	(443)	(1,943)
Financial Liabilities Fair Value Disclosure [Abstract]
Loans payable, fair value disclosure	8,990
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and liabilities measured at fair value [Abstract]
Money market funds	852	3,240
Foreign exchange contracts	0	0
Total assets	852	3,240
Liability awards	0	0
Interest rate swap contract	0
Contingent consideration		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	14	201
Total assets	14	201
Liability awards	(404)	(242)
Interest rate swap contract	(39)
Contingent consideration		0
Total liabilities	(443)	(242)
Significant Unobservable Inputs (Level 3) [Member]
Assets and liabilities measured at fair value [Abstract]
Money market funds	0	0
Foreign exchange contracts	0	0
Total assets	0	0
Liability awards	0	0
Interest rate swap contract	0
Contingent consideration		(1,701)
Total liabilities	0	$ (1,701)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, January 1, 2018	1,701
Payments made on contingent liabilities	(1,701)
Change in fair value	0
Balance, September 30, 2018	$ 0

Derivative Instruments, Foreign

Derivative Instruments, Foreign Exchange Contracts (Details) - Foreign Exchange Contracts [Member] ¥ in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2018AUD ($)	Sep. 30, 2018EUR (€)	Sep. 30, 2018JPY (¥)	Dec. 31, 2017AUD ($)	Dec. 31, 2017EUR (€)	Dec. 31, 2017JPY (¥)
Derivative [Abstract]
Foreign exchange contract outstanding	$ 0.2	€ 3,200,000	¥ 112.5	$ 0.2	€ 24,000	¥ 162.5
Expiration date of contract	Dec. 31, 2018

Derivative Instruments, Interes

Derivative Instruments, Interest Rate Risk Management (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)
Interest Rate Swap [Member]
Derivative [Abstract]
Notional amount	$ 9
Principal repayment term	5 years
Fixed interest rate	3.02%
Term Loan [Member] | Minimum [Member]
Derivative [Abstract]
Debt instrument, basis spread on variable rate	2.00%
Term Loan [Member] | Maximum [Member]
Derivative [Abstract]
Debt instrument, basis spread on variable rate	2.75%
LIBOR [Member]
Derivative [Abstract]
Term of variable rate	1 month
LIBOR - BBA Bloomberg [Member]
Derivative [Abstract]
Term of variable rate	1 month

Derivative Instruments, Fair Va

Derivative Instruments, Fair Values Derivatives, Balance Sheet Location (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Estimated fair value of the contracts in the consolidated balance sheets [Abstract]
Asset derivatives	$ 14	$ 201
Liability derivatives	(39)	0
Net fair value	(25)	201
Foreign Exchange Contracts [Member] | Prepaid Expenses and Other Current Assets [Member]
Estimated fair value of the contracts in the consolidated balance sheets [Abstract]
Asset derivatives	14	201
Interest Rate Swaps [Member] | Other Liabilities [Member]
Estimated fair value of the contracts in the consolidated balance sheets [Abstract]
Liability derivatives	$ (39)	$ 0

Derivative Instruments, (Loss)

Derivative Instruments, (Loss) Gain on Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net (Loss) Gain on Derivative Instruments [Abstract]
Interest rate swap - change in fair value	$ (28)	$ 0	$ (39)	$ 0
Foreign exchange contracts- change in fair value	(14)	74	(178)	145
Remeasurement of related contract receivables, billings in excess of revenue earned, and subcontractor accruals	(17)	(3)	(89)	81
(Loss) gain on derivative instruments, net	$ (59)	$ 71	$ (306)	$ 226

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)shares	Sep. 30, 2017USD ($)shares	Sep. 30, 2018USD ($)Quartershares	Sep. 30, 2017USD ($)Quartershares
Share-based Compensation [Abstract]
Stock-based compensation expense	$ 402,000	$ 535,000	$ 1,370,000	$ 1,793,000
Minimum [Member]
Share-based Compensation [Abstract]
Requisite service period			1 year
Maximum [Member]
Share-based Compensation [Abstract]
Requisite service period			3 years
Restricted Stock Units [Member]
Share-based Compensation [Abstract]
Stock-based compensation expense	$ 105,000	$ 92,000	$ 165,000	$ 80,000
Granted time-based RSUs (in shares) | shares	0	0	388,526	396,677
Aggregate fair value for time-based RSUs	$ 0	$ 0	$ 1,259,530	$ 1,368,763
Number of quarters RSU's will vest quarterly | Quarter			8	8
Period in which RSU's will vest annually in equal amounts			3 years	3 years

Debt (Details)

Debt (Details)	May 11, 2018USD ($)	Sep. 30, 2018USD ($)LetterOfCredit	Dec. 31, 2017USD ($)	Dec. 29, 2016USD ($)
Loans Payable, by Type, Current and Noncurrent [Abstract]
Less: current portion of long-term debt		$ 1,901,000	$ 0
Long-term debt, less current portion		$ 7,089,000	0
LIBOR [Member]
Line of Credit Facility [Abstract]
Term of variable rate		1 month
Delayed Draw Term Loan [Member]
Loans Payable, by Type, Current and Noncurrent [Abstract]
Long-term debt, net of discount		$ 8,990,000
Less: current portion of long-term debt		1,901,000
Long-term debt, less current portion		$ 7,089,000
Citizen's Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Abstract]
Line of credit facility expiration period		3 years
Principal amount of the line of credit				$ 5,000,000
Line of credit facility term		5 years
Outstanding letter of credit balance		$ 0
Number of letters of credit | LetterOfCredit		5
Letters of credit, amount outstanding		$ 2,300,000
Line of credit facility, remaining borrowing capacity		$ 2,700,000
Citizen's Bank [Member] | Revolving Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Abstract]
Percentage of letter of credit fees per annum		1.25%
Citizen's Bank [Member] | Revolving Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Percentage of letter of credit fees per annum		2.00%
Citizen's Bank [Member] | Delayed Draw Term Loan [Member]
Line of Credit Facility [Abstract]
Line of credit facility expiration period		18 months
Principal amount of the line of credit	$ 25,000,000
Line of credit facility term		5 months
Cash consideration of TNC acquisition	9,941,000
Proceeds from issuance of debt	10,300,000
Repayments of debt	500,000
Payments of debt issuance costs	70,000
Loan origination fees	$ 75,000
Citizen's Bank [Member] | Delayed Draw Term Loan [Member] | Minimum [Member]
Line of Credit Facility [Abstract]
Debt instrument, basis spread on variable rate		2.00%
Citizen's Bank [Member] | Delayed Draw Term Loan [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Debt instrument, basis spread on variable rate		2.75%
BB&T Bank [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Abstract]
Cash collateral for letter of credit		$ 0	$ 1,000,000

Product Warranty (Details)

Product Warranty (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)
Product warranty provision [Abstract]
Warranty terms for SDB contracts	1 year
Accrued warranty, current	$ 1,106
Accrued warranty, noncurrent	581
Activities in product warranty account [Abstract]
Balance, January 1, 2018	1,953
Current period provision	(73)
Current period claims	(183)
Currency adjustment	(10)
Balance at September 30, 2018	$ 1,687

Revenue (Details)

Revenue (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018USD ($)Obligation	Sep. 30, 2017USD ($)		Sep. 30, 2018USD ($)StreamObligation	Sep. 30, 2017USD ($)		Dec. 31, 2017USD ($)
Disaggregation of Revenue [Abstract]
Revenue	$ 21,801	$ 15,409	[1]	$ 69,394	$ 48,876	[1]
Number of broad revenue streams | Stream				3
Contract with Customer, Asset and Liability [Abstract]
Billings in excess of revenue earned (BIE)	7,810			$ 7,810			$ 14,543
Revenue recognized in the period from amounts included in BIE at the beginning of the period				9,934
Amount of revenue recognized related to performance obligations satisfied in previous periods	$ 1,084			$ 1,084
Revenue, Performance Obligation [Abstract]
Number of performance obligations | Obligation	2			2
Remaining performance obligation	$ 49,612			$ 49,612
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Revenue, Performance Obligation [Abstract]
Expected period to recognize revenue as performance obligations are satisfied	12 months			12 months
Performance Improvement Solutions [Member]
Disaggregation of Revenue [Abstract]
Revenue	$ 9,849	8,737		$ 30,614	30,093
Performance Improvement Solutions [Member] | System Design and Build [Member]
Disaggregation of Revenue [Abstract]
Revenue	5,109	5,736	[1]	19,904	21,828	[1]
Performance Improvement Solutions [Member] | Software [Member]
Disaggregation of Revenue [Abstract]
Revenue	586	889	[1]	2,001	2,436	[1]
Performance Improvement Solutions [Member] | Training and Consulting Services [Member]
Disaggregation of Revenue [Abstract]
Revenue	4,154	2,112	[1]	8,709	5,829	[1]
Nuclear Industry Training and Consulting [Member]
Disaggregation of Revenue [Abstract]
Revenue	11,952	6,672		38,780	18,783
Nuclear Industry Training and Consulting [Member] | Training and Consulting Services [Member]
Disaggregation of Revenue [Abstract]
Revenue	$ 11,952	$ 6,672	[1]	$ 38,780	$ 18,783	[1]
[1]	Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Taxes [Abstract]
Provision for income taxes	$ 314		$ 92	$ 124	$ 399
Effective tax rate	(153.90%)		(17.90%)	(13.60%)	112.40%
U.S. statutory federal income tax rate				21.00%
Income Tax Examination [Abstract]
Probability of uncertain tax position to be recognized				50.00%
Percentage of tax position realized upon ultimate settlement				50.00%
ASU 2016-09 [Member]
Income Tax Examination [Abstract]
Immaterial error correction amount		$ 1,200
Immaterial error correction (in dollars per share)		$ 0.06
Classification error between deferred tax asset and deferred tax liability						$ 700
Sweden [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination				2,011
China [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination				2,015
India [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination				2,015
UK [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination				2,016
Federal [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination				1,997
State [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination				1,997

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended			5 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)		Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)Segment	Sep. 30, 2017USD ($)		May 11, 2018
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Number of reportable business segments | Segment					2
Contract term					2 years
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	$ 21,801	$ 15,409	[1]		$ 69,394	$ 48,876	[1]
Change in fair value of contingent consideration, net	0	(79)			0	(376)
Operating (loss) income	(26)	(632)			(474)	73
Interest (expense) income, net	(114)	15			(153)	60
(Loss) gain on derivative instruments, net	(59)	71			(306)	226
Other (expense) income, net	(5)	33			24	(4)
(Loss) income before income taxes	(204)	(513)			(909)	355
Performance Improvement Solutions [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	9,849	8,737			30,614	30,093
Operating (loss) income	494	(892)			110	(6)
Nuclear Industry Training and Consulting [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue	11,952	6,672			38,780	18,783
Operating (loss) income	(520)	339			(584)	455
Overhead costs	$ 1,253	$ 713			$ 3,390	$ 1,939
True North Consulting, LLC [Member]
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Percentage of ownership interest acquired								100.00%
Segment Reporting Information, Profit (Loss) [Abstract]
Total revenue				$ 3,684
[1]	Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 9,831	$ 19,111
Restricted cash	9	960
Cash, cash equivalents, and restricted cash	$ 9,840	$ 20,071	$ 16,485	$ 22,887