Gse Systems (GVP) 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Cover [Abstract]
Entity Registrant Name	GSE SYSTEMS INC
Entity Central Index Key	0000944480
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		20,621,413
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Address, State or Province	MD

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 7,660	$ 11,691
Contract receivables, net	11,143	17,207
Prepaid expenses and other current assets	1,717	1,880
Total current assets	20,520	30,778
Equipment, software and leasehold improvements, net of accumulated depreciation of ($4,659) and ($4,584)	683	939
Software development costs, net	642	641
Goodwill	13,339	13,339
Intangible assets, net	4,649	10,479
Deferred tax assets, net	0	57
Right-of-use assets, net	1,726	2,215
Other assets	58	61
Total assets	41,617	58,509
Current liabilities:
Line of credit	3,506	0
PPP Loan, current	447	0
Debt, net of issuance costs and discount	0	18,481
Accounts payable	482	1,097
Accrued expenses	983	1,871
Accrued compensation	2,240	1,876
Billings-in-excess of revenue earned	6,362	7,613
Accrued warranty	843	921
Income taxes payable	1,830	1,341
Other current liabilities	1,442	1,234
Total current liabilities	18,135	34,434
PPP Loan, noncurrent	9,597	0
Operating lease liabilities noncurrent	2,100	3,000
Other noncurrent liabilities	350	956
Total liabilities	30,182	38,390
Commitments and contingencies (Note 16)
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, 22,220,324 shares issued, 20,621,413 shares outstanding as of September 30, 2020; 21,838,963 shares issued, 20,240,052 shares outstanding as of December 31, 2019	222	218
Additional paid-in capital	79,676	79,400
Accumulated deficit	(63,722)	(54,654)
Accumulated other comprehensive loss	(1,742)	(1,846)
Treasury stock at cost, 1,598,911 shares at June 30, 2020 and December 31, 2019	(2,999)	(2,999)
Total stockholders' equity	11,435	20,119
Total liabilities and stockholders' equity	$ 41,617	$ 58,509

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
ASSETS
Accumulated depreciation	$ (4,737)	$ (4,584)
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	$ 0
Common stock, shares authorized (in shares)	60,000,000	60,000,000
Common stock, shares issued (in shares)	22,220,324	21,838,963
Common stock, shares outstanding (in shares)	20,621,413	20,240,052
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, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract]
Revenue	$ 12,922	$ 20,031	$ 44,967	$ 65,683
Cost of revenue	9,603	15,358	33,971	50,407
Gross profit	3,319	4,673	10,996	15,276
Operating expenses:
Selling, general and administrative	2,878	3,465	12,548	12,231
Research and development	137	130	526	526
Restructuring charges	185	740	195	742
Loss on impairment	0	0	4,302	5,464
Depreciation	76	107	254	300
Amortization of intangible assets	414	596	1,528	1,804
Total operating expenses	3,690	5,038	19,353	21,067
Operating loss	(371)	(365)	(8,357)	(5,791)
Interest expense, net	(128)	(288)	(556)	(812)
Gain (loss) on derivative instruments, net	31	(61)	35	(69)
Other (expense) income, net	(77)	59	(24)	62
Loss before income taxes	(545)	(655)	(8,902)	(6,610)
Provision for (benefit from) income taxes	116	568	166	(874)
Net loss	$ (661)	$ (1,223)	$ (9,068)	$ (5,736)
Net loss per common share - basic and diluted (in dollars per share)	$ (0.03)	$ (0.06)	$ (0.44)	$ (0.29)
Weighted average shares outstanding used to compute net loss per share - basic and diluted (in shares)	20,563,452	20,007,469	20,438,571	20,021,829

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) [Abstract]
Net loss	$ (661)	$ (1,223)	$ (9,068)	$ (5,736)
Cumulative translation adjustment	84	(89)	104	(149)
Comprehensive loss	$ (577)	$ (1,312)	$ (8,964)	$ (5,885)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2018	$ 214	$ 78,118	$ (42,569)	$ (1,635)	$ (2,999)	$ 31,129
Balance (in shares) at Dec. 31, 2018	21,485				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		1,238				1,238
Common stock issued for options exercised (in shares)	9
Common stock issued for options exercised	$ 1	89				90
Common stock issued for RSUs vested (in shares)	295
Common stock issued for RSUs vested	$ 3	(3)				0
Shares withheld to pay taxes		(304)				(304)
Foreign currency translation adjustment				(149)		(149)
Net loss			(5,736)			(5,736)
Balance at Sep. 30, 2019	$ 218	79,138	(48,305)	(1,784)	$ (2,999)	26,268
Balance (in shares) at Sep. 30, 2019	21,789				(1,599)
Balance at Jun. 30, 2019	$ 217	79,028	(47,082)	(1,695)	$ (2,999)	27,469
Balance (in shares) at Jun. 30, 2019	21,699				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		169				169
Common stock issued for options exercised (in shares)	0
Common stock issued for options exercised	$ 0	15				15
Common stock issued for RSUs vested (in shares)	90
Common stock issued for RSUs vested	$ 1	(1)				0
Shares withheld to pay taxes		(73)				(73)
Foreign currency translation adjustment				(89)		(89)
Net loss			(1,223)			(1,223)
Balance at Sep. 30, 2019	$ 218	79,138	(48,305)	(1,784)	$ (2,999)	26,268
Balance (in shares) at Sep. 30, 2019	21,789				(1,599)
Balance at Dec. 31, 2019	$ 218	79,400	(54,654)	(1,846)	$ (2,999)	20,119
Balance (in shares) at Dec. 31, 2019	21,839				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		357				357
Common stock issued for RSUs vested (in shares)	381
Common stock issued for RSUs vested	$ 4	(4)				0
Shares withheld to pay taxes		(77)				(77)
Foreign currency translation adjustment				104		104
Net loss			(9,068)			(9,068)
Balance at Sep. 30, 2020	$ 222	79,676	(63,722)	(1,742)	$ (2,999)	11,435
Balance (in shares) at Sep. 30, 2020	22,220				(1,599)
Balance at Jun. 30, 2020	$ 221	79,676	(63,061)	(1,826)	$ (2,999)	12,011
Balance (in shares) at Jun. 30, 2020	22,150				(1,599)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		33				33
Common stock issued for RSUs vested (in shares)	70
Common stock issued for RSUs vested	$ 1	(1)				0
Shares withheld to pay taxes		(32)				(32)
Foreign currency translation adjustment				84		84
Net loss			(661)			(661)
Balance at Sep. 30, 2020	$ 222	$ 79,676	$ (63,722)	$ (1,742)	$ (2,999)	$ 11,435
Balance (in shares) at Sep. 30, 2020	22,220				(1,599)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (9,068)	$ (5,736)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Loss on impairment	4,302	5,464
Depreciation	254	300
Amortization of intangible assets	1,528	1,804
Amortization of capitalized software development costs	248	293
Amortization of deferred financing fees	155	0
Change in fair value of contingent consideration	0	(1,200)
Stock-based compensation expense	357	1,150
Bad debt expense	103	48
(Gain) loss on derivative instruments, net	(35)	69
Deferred income taxes	57	(1,276)
Gain on sale of assets	(5)	(7)
Changes in assets and liabilities:
Contract receivables	6,114	7,314
Prepaid expenses and other assets	983	438
Accounts payable, accrued compensation and accrued expenses	(1,536)	(2,400)
Billings-in-excess of revenue earned	(1,195)	(6,777)
Accrued warranty	(285)	102
Other liabilities	(332)	82
Cash provided by (used in) operating activities	1,645	(332)
Cash flows from investing activities:
Capital expenditures	(4)	(127)
Capitalized software development costs	(250)	(326)
Proceeds from sale of equipment	11	8
Acquisition of DP Engineering, net of cash acquired	0	(13,521)
Cash used in investing activities	(243)	(13,966)
Cash flows from financing activities:
Proceeds from line of credit	4,200	0
Repayment of line of credit	(694)	0
Proceeds from issuance of long-term debt	0	14,263
Repayment of long-term debt	(18,480)	(3,029)
Interest rate swap	(209)	0
Proceeds from Paycheck Protection Program Loan	10,000	0
Proceeds from issuance of common stock	0	90
Shares withheld to pay taxes	(77)	(304)
Deferred financing costs	(80)	0
Cash (used in) provided by financing activities	(5,340)	11,020
Effect of exchange rate changes on cash and cash equivalents	(93)	(239)
Net decrease in cash and cash equivalents	(4,031)	(3,517)
Cash and cash equivalents at the beginning of the year	11,691	12,123
Cash and cash equivalents at the end of the period	$ 7,660	$ 8,606

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 Summary of Significant Accounting Policies Basis of Presentation GSE Systems, Inc. is a leading provider of professional and technical engineering, staffing services and simulation software to clients in the power and process industries. References in this report to "GSE" or "we" or "our" or "the Company" are to GSE Systems, Inc. and our subsidiaries, collectively. The consolidated interim financial statements included herein have been prepared by GSE and are unaudited. In the opinion of our 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 accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet data for the year ended December 31, 2019 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 our Annual Report on Form 10-K for the year ended December 31, 2019 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. Our most significant estimates relate to revenue recognition on contracts with customers, allowance for doubtful accounts, product warranties, valuation of goodwill and intangible assets acquired including the determination of fair value in impairment tests, 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 of these, and other items not listed, could differ from these estimates and those differences could be material. COVID-19 GSE employees began working remotely during the first quarter of 2020 due to the COVID-19 pandemic and will continue to do so when practical and as mandated by local, state and federal directives and regulations. Employees almost entirely work from home within our Performance Improvement Solutions ("Performance") segment, except when required to be at the client site for essential project work. Our Performance contracts, which are considered an essential service, are permitted to and mostly continue without pause; however, we have experienced certain delays in new business. For our staff augmentation business, we have seen certain contracts for our Nuclear Industry Training and Consulting ("NITC") customers paused or delayed as clients shrink their own on-premise workforces to the minimum operating levels in response to the pandemic; as a result, our NITC segment has experienced a decline in its billable employee base since the start of the pandemic. Although we cannot fully estimate the length or gravity of the impact of the COVID-19 pandemic to our business at this time, we have experienced delays in commencing new projects and thus our ability to recognize revenue has been delayed for some contracts. We have also experienced order reductions or other negative changes to orders due to the pandemic. We routinely monitor our operating expenses as a result of contract delays and have made adjustments to keep our gross profit at a sustainable level. As a result of the COVID-19 pandemic, we expect our financial results for the fiscal year 2020 to be lower than fiscal 2019 and forecasts we prepared at the beginning of the 2020 year. Going Concern As a result of the COVID-19 pandemic, we have experienced a negative impact on our fiscal 2020 financial position and results of operations. We will likely continue to experience delays in commencing work on outstanding orders or loss of orders altogether, disruption of our business as a result of worker illness or mandated shutdowns, and decline in our ability to refinance existing indebtedness and access new capital. We signed the Eighth Amendment and Reaffirmation Agreement (the “Eighth Amendment”) with , resulting in the full payoff of our long-term debt during the three months ended September 30, 2020, in response to the breach of our Adjusted EBITDA debt covenant during the three months ended June 30, 2020. The Eighth Amendment also altered or removed certain of our debt covenants and required a minimum US liquidity of $ 3.5 million to be tested biweekly (see Note 10). We continue to experience a negative impact to our results of operations and financial position from the COVID-19 pandemic. Based upon our current projections and outstanding balance on our revolving line of credit, we may be in violation of our leverage ratio in Q1 2021; however, we believe we have various options available to remediate or prevent the potential violation. Our options include continuing to development new revenue opportunities, reducing our operating costs such as our workforce, including reductions in compensation and benefits or eliminating fixed costs such as office space. In addition, we may further pay down outstanding debt balances by repatriating cash held in foreign operations. If necessary, we could potentially refinance our debt obligations, to an asset based or other loan arrangement. Also, working with our bank, we could potentially obtain additional debt amendments, including waivers of potential covenant breaches. We have no assurance that it will be possible to implement any of these on acceptable terms, however. We received $ 10 Including the proceeds from the PPP, we believe we have sufficient cash to meet our operating requirement needs for at least the next twelve months; however, since some of our loan covenants are related to operating performance and our operating performance continues to be impacted by the COVID-19 pandemic, we may be in violation with our amended debt covenants during fiscal 2021. If we are unable to maintain compliance with our covenants, the Bank may call our outstanding Revolving Line of Credit due, which may create substantial doubt regarding our ability to continue as a going concern.

Recent Accounting Policies

Recent Accounting Policies	9 Months Ended
	Sep. 30, 2020
Recent Accounting Policies [Abstract]
Recent Accounting Policies	Note 2 Recent Accounting Policies Accounting pronouncements recently adopted In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Simplifying the Test for Goodwill Impairment We adopted the new standard and began using the simplified approach on January 1, 2020. Accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities, Investments – Equity Method and Joint Ventures, and Derivatives and Hedging In September 2020, the FASB issued ASU 2020-10, Codification Improvements

Basic and Diluted (Loss) Income

Basic and Diluted (Loss) Income per Common Share	9 Months Ended
	Sep. 30, 2020
Basic and Diluted (Loss) Income per Common Share [Abstract]
Basic and Diluted (Loss) Income per Common Share	Note 3 Basic and Diluted Loss per Common Share Basic loss loss loss loss loss The number of common shares and common share equivalents used in the determination of basic and diluted loss (in thousands, except for share amounts) Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Numerator: Net loss $ (661 ) $ (1,223 ) $ (9,068 ) $ (5,736 ) Denominator: Weighted-average shares outstanding for basic loss per share 20,563,452 20,007,469 20,438,571 20,021,829 Effect of dilutive securities: Stock options and restricted stock units - - - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 20,563,452 20,007,469 20,438,571 20,021,829 Shares related to dilutive securities excluded from calculation because inclusion would be anti-dilutive 66,261 578,676 12,172 397,131

Paycheck Protection Program Loa

Paycheck Protection Program Loan	9 Months Ended
	Sep. 30, 2020
Paycheck Protection Program Loan [Abstract]
Paycheck Protection Program Loan	Note 4 Paycheck Protection Program Loan We entered into the PPP Loan agreement with our Bank, which was approved and funded on April 24, 2020, pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The PPP Loan matures on April 24, 2022 and bears interest at a rate of 1.0% The PPP Loan contains events of default and other provisions customary for a loan of this type. The Payroll Protection Program provides that (1) the use of PPP Loan amount shall be limited to certain qualifying expenses, (2) 100% The SBA provides for certain customary events of default, including if the Company (i) fails to do anything required by the Note and other Loan Documents; (ii) does not disclose, or anyone acting on its behalf does not disclose, any material fact to the Bank or the SBA; (iii) makes, or anyone acting on its behalf makes, a materially false or misleading representation to lender or the SBA; (iv) reorganizes, merges, consolidates or otherwise changes ownership or business structure without the Bank’s prior written consent; (v) takes certain prohibited actions after the Bank makes a determination that the PPP Loan is not entitled to full forgiveness. Upon default the Bank may require immediate payment of all amounts owing under the PPP Loan or file suit and obtain judgment. As of September 30, 2020, we have classified the $ 10 44 0.4 9.6 26 44 three and nine months ended September 30, 2020 As of September 30, 2020

Contract Receivables

Contract Receivables	9 Months Ended
	Sep. 30, 2020
Contract Receivables [Abstract]
Contract Receivables	Note 5 Contract Receivables Contract receivables represent our unconditional rights to consideration due from our domestic and international customers. We expect to collect all contract receivables within the next twelve months. The components of contract receivables were as follows: (in thousands) September 30, 2020 December 31, 2019 Billed receivables $ 5,319 $ 11,041 Unbilled receivables 6,239 6,624 Allowance for doubtful accounts (415 ) (458 ) Total contract receivables, net $ 11,143 $ 17,207 Management reviews collectability of receivables periodically and records an allowance for doubtful accounts to reduce the Company's receivables to their net realizable value when management determines it is probable that we will not be collect all amounts according to the contractual terms of the receivable. The allowance for doubtful accounts is based on historical trends of past due accounts, write-offs, specific identification and review of customer accounts. During the three months ended September 30, 2020 10 48 nine months ended September 30, 2020 2019 0.1 48 During the month of October 2020 September 30, 2020 As of September 30, 2020 two 9% 7% December 31, 2019 two 13% 10%

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	Note 6 Goodwill and Intangible Assets Goodwill We review 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. We test 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. We have determined that we have two two We reviewed our goodwill for impairment as of the first quarter of fiscal 2020, due to the COVID-19 interim triggering event. Based upon our analysis, we determined the fair value of our goodwill at the reporting unit level exceeded the carrying value and determined no impairment charge was required as of the period ended March 31, 2020. No other triggering event was noted during the nine months ended September 30, 2020 The table below reflects the net carrying amount of goodwill from January 1, 2020 to September 30, 2020 ( in thousands Performance NITC Total Balance at January 1, 2020 $ 4,908 $ 8,431 $ 13,339 Balance at September 30, 2020 $ 4,908 $ 8,431 $ 13,339 Intangible Assets Subject to Amortization 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. GSE does not have any intangible assets with indefinite useful lives other than goodwill. During the first quarter of fiscal 2020, we determined that the impact of the COVID-19 pandemic on our operations was an indicator of a triggering event that could result in an impairment of our long-lived assets. As such, we performed an interim analysis to determine if an impairment existed as of the period ended March 31, 2020 by its individual asset groupings, which management determined to be at the subsidiary level. We used a discounted cash flow analysis to test for impairment and concluded that the carrying value of the definite-lived intangible assets of DP Engineering exceeded its fair value by $ 4.3 Management determined no additional triggering impact occurred during the nine months ended September 30, 2020 Changes in the gross carrying amount, accumulated amortization and impairment of definite-lived intangible assets were as follows: ( in thousands As of September 30, 2020 Gross Carrying Amount Accumulated Amortization Impact of Impairment Net Amortized intangible assets: Customer relationships $ 11,730 $ (5,207 ) $ (3,102 ) $ 3,421 Trade names 2,467 (952 ) (778 ) 737 Developed technology 471 (471 ) - - Non-contractual customer relationships 433 (433 ) - - Noncompete agreements 949 (313 ) (422 ) 214 Alliance agreements 527 (250 ) - 277 Others 167 (167 ) - - Total $ 16,744 $ (7,793 ) $ (4,302 ) $ 4,649 (in thousands) As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 11,730 $ (4,079 ) $ 7,651 Trade names 2,467 (727 ) 1,740 Developed technology 471 (471 ) - Non-contractual customer relationships 433 (433 ) - Noncompete agreements 949 (217 ) 732 Alliance agreements 527 (171 ) 356 Others 167 (167 ) - Total $ 16,744 $ (6,265 ) $ 10,479 Amortization expense related to definite-lived intangible assets totaled $ 0.4 0.6 the three months ended September 30, 2020 and 2019 1.5 1.8 the nine months ended September 30, 2020 and 2019 (in thousands) Years ended December 31: 2020 $ 415 2021 1,213 2022 911 2023 640 2024 435 and thereafter 1,035 Total $ 4,649

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2020
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	Note 7 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. The Monte Carlo model was used to calculate the fair value of level 2 instrument liability award. The inputs used are current stock price, expected term, risk-free rate, number of trials, volatility and interest rates. 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. As of September 30, 2020 December 31, 2019 For the three and nine months ended September 30, 2020 and 2019 September 30, 2020 Money market funds as of both September 30, 2020 December 31, 2019 The following table presents assets measured at fair value at September 30, 2020 (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 $ 434 $ - $ - $ 434 Total assets $ 434 $ - $ - $ 434 The following table presents assets and liabilities measured at fair value at December 31, 2019 (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 $ 434 $ - $ - $ 434 Foreign exchange contracts - 49 - 49 Total assets $ 434 $ 49 $ - $ 483 Liability awards $ - $ (9 ) $ - $ (9 ) Interest rate swap contract - (160 ) - (160 ) Total liabilities $ - $ (169 ) $ - $ (169 ) As of December 31, 2019, we had classified our foreign exchange contracts within Other Assets. Our interest rate swap contract and liability awards were classified within other noncurrent assets as of the period ended December 31, 2019.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2020
Derivative Instruments [Abstract]
Derivative Instruments	Note 8 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 Our 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 our functional currency, using the current exchange rate at the end of the period. The gain or (loss) resulting from such remeasurement is also included in gain (loss) on derivative instruments, net in the consolidated statements of operations. We utilize foreign currency exchange contracts to manage market risks associated with fluctuations in foreign currency exchange rates and to minimize credit exposure by limiting counterparties to nationally recognized financial institutions. As of September 30, 2020 no Interest Rate Risk Management In June 2018, as part of our overall risk management policies, we 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 on our outstanding term loans (see Note 10) . The loan bears interest at adjusted one-month USD LIBOR, plus a margin ranging between 2.00% and 2.75% depending on our overall leverage ratio. The notional value amortizes monthly in equal amounts based on the 5 -year principal repayment terms. Per the terms of the swap, we are required to pay interest on the basis of a fixed rate of 3.02% , and we receive interest on the basis of one-month USD LIBOR. As discussed in Note 10, we 9.1 ccordingly, we exited the swap agreement related to this loan and paid $ 0.2 million in cash. For the periods presented, we did not elect to designate any of our derivative contracts as hedges. Changes in the fair value of the derivative contracts are included in gain (loss) on derivative instruments, net in the consolidated statements of operations. We recognized a net gain (loss) Three months ended Nine months ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Interest rate swap $ 25 $ (1 ) $ (49 ) $ (89 ) Foreign exchange contracts - (45 ) 17 25 Remeasurement of related contract receivables, billings-in-excess of revenue earned, and subcontractor accruals 6 (15 ) 67 (5 ) Gain (loss) on derivative instruments, net $ 31 $ (61 ) $ 35 $ (69 )

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2020
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 9 Stock-based Compensation We recognize compensation expense for all equity-based compensation awards issued to employees and directors that are expected to vest. Stock compensation is calculated based upon the fair value of awards as of the grant date. During the three months ended September 30, 2020 2019 0.03 0.2 0.4 1.2 nine months ended September 30, 2020 2019 0 60 three months ended September 30, 2020 2019 nine months ended September 30, 2020 6 88 2019 During the three and nine months ended September 30, 2020 130,000 170,000 0.1 0.2 three and nine months ended September 30, 2019 8,500 509,000 20 1.4 eight one three years one three years GSE’s 1995 long-term incentive program ("LTIP") provides for the issuance of performance-vesting and time-vesting restricted stock units to certain executives and employees. Vesting of the performance-vesting restricted stock units ("PRSU") is contingent upon the employee's continued employment and the Company's achievement of certain performance goals during designated performance periods as established by the Compensation Committee of the Company's Board of Directors. We recognize compensation expense, net of estimated forfeitures, for PRSU's on a straight-line basis over the performance period based on the probable outcome of achievement of the financial targets. At the end of each reporting period, we estimate the number of PRSUs that are expected to vest, based on the probability and extent to which the performance goals will be met, and take into account these estimates when calculating the expense for the period. If the number of shares expected to be earned changes during the performance period, we make a cumulative adjustment to compensation expense based on the revised number of shares expected to be earned. During the three months ended September 30, 2020 no nine months ended September 30, 2020 512,000 0.6 0.1 three months ended September 30, 2020 During the nine months ended September 30, 2019 350,000 0.9 three years 0.2 three months ended September 30, 2019 The Company did not grant any stock options for three and nine months ended September 30, 2020 and 2019

Debt

Debt	9 Months Ended
	Sep. 30, 2020
Debt [Abstract]
Debt	Note 10 Debt On December 29, 2016, we entered a 3 -year $ 5.0 million revolving line of credit facility with Citizens Bank National Association (the “Bank") to fund general working capital needs and acquisitions. On May 11, 2018, we entered into the Amended and Restated Credit and Security Agreement (the “Credit Agreement” or the “Credit Facility”) to (a) expand the $ 5.0 million revolving line of credit (the “RLOC”) to include a letter of credit sub-facility and not be subject to a borrowing base and (b) to add a $ 25.0 million term loan facility, available to finance permitted acquisitions over the following 18 months. The credit facility was subject to certain financial covenants and reporting requirements and was scheduled to mature in five years on May 11, 2023 and accrued interest at the one-month USD LIBOR, plus a margin that varies depending on our overall leverage ratio. On January 8, 2020, due to an expected violation of our covenants, we entered into the Sixth Amendment and Reaffirmation Agreement with an effective date of December 31, 2019, with our Bank to relax the fixed charge coverage ratio and leverage ratio and delay testing of both financial covenants. We agreed to an additional covenant, requiring us to maintain a consolidated Adjusted EBITDA target of $ 4.25 5.0 3.0 1.0 0.5 20 On April 17, 2020, we entered into the Seventh Amendment and Reaffirmation Agreement and effective March 31, 2020, which required us to maintain a minimum fixed charge coverage ratio of 1.25 3.00 2.50 2.25 0.75 0.5 50 On August 28, 2020, we signed the Eighth Amendment and Reaffirmation Agreement, “the Eighth Amendment”, with an effective date of June 29, 2020, due to violating our minimum Adjusted EBITDA covenant during the three months ended June 30, 2020. As part of the amendment, we agreed to pay $ 10 694 9.1 0.2 10 three months ended September 30, 2020 The amendment removed our minimum Adjusted 1.00 3.00 2.75 2.50 2.00 3.5 The PPP Loan does not factor into the expenses or liabilities used in the calculation of our debt covenants, unless we determine that more than $ 1 The Bank also agreed to remove its collateral agreement with the Company’s subsidiaries as part of the Eighth Amendment and repayment of our outstanding term loans during the three months ended September 30, 2020. Revolving Line of Credit (“RLOC”) During the three months ended September 30, 2020, we paid down $ 0.7 0.7 September 30, 2020 3.5 four 1.2 0.3 September 30, 2020 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% 2.00% Term Loans As part of the Eight Amendment and Reaffirmation Agreement discussed above, we repaid all of $ 9.1 three months ended September 30, 2020 We acquired DP Engineering on February 15, 2019 for approximately $ 13.5 14.3 2.00% 2.75% no To fund the acquisition of True North, we borrowed $ 10.3 0.5 one-month 2.00% 2.75% 70 75 September 30, 2020 0.1

Product Warranty

Product Warranty	9 Months Ended
	Sep. 30, 2020
Product Warranty [Abstract]
Product Warranty	Note 11 Product Warranty We accrue for estimated warranty costs at the time the related revenue is recognized and based on historical experience and projected claims. Our System Design and Build contracts generally include a one year 0.8 0.2 (in thousands) Balance at January 1, 2020 $ 1,323 Current period provision (136 ) Current period claims (149 ) Currency adjustment 9 Balance at September 30, 2020 $ 1,047

Revenue

Revenue	9 Months Ended
	Sep. 30, 2020
Revenue [Abstract]
Revenue	Note 12 Revenue We primarily generate revenue through three The following table represents a disaggregation of revenue by type of goods or services for three and nine months ended September 30, 2020 and 2019 Three months ended Nine months ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Performance segment SDB $ 2,473 $ 4,435 $ 9,535 $ 16,472 Software 942 786 2,575 2,170 Training and consulting 3,842 6,196 13,130 17,975 NITC segment Training and consulting 5,665 8,614 19,727 29,066 Total revenue $ 12,922 $ 20,031 $ 44,967 $ 65,683 SDB contracts are typically fixed-priced, and we receive payments based on a billing schedule established in our contracts. We generally have two The training simulator build generally includes hardware, software and labor. We recognize revenue for the training simulator build 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 towards the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically during the contract period, 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 our revenue recognition as a significant change in the estimates can cause our revenue and related margins to change significantly from the amounts estimated in the early stages of the project. The transaction price for Software contracts is generally fixed, and we recognize revenue upon delivery of the software, with fees due in advance or shortly after delivery of the software. We recognize Training and Consulting Services revenue as services are performed and bill our customers for services that we have provided on a regular basis (i.e. weekly, biweekly or monthly) and in time with revenue recognition. 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 revenue recognized in the reporting periods presented that was included in contract liabilities from contracts with customers as of the beginning of the periods presented: ( in thousands Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenue recognized in the period from amounts included in Billings-in-Excess of Revenue Earned at the beginning of the period $ 1,520 $ 762 $ 6,221 $ 8,615

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes [Abstract]
Income Taxes	Note 13 Income Taxes The following table presents the provision for (benefit from) income taxes and our effective tax rates: (in thousands) Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Loss before income taxes $ (545 ) $ (655 ) $ (8,902 ) $ (6,610 ) Provision for (benefit from) income taxes $ 116 $ 568 $ 166 $ (874 ) Effective tax rate (21.3 )% (86.7 )% (1.9 )% 13.2 % Our income tax expense (benefit) for the interim periods presented is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. Total income tax expense for the nine months ended September 30, 2020 nine months ended September 30, 2019 Our income effective tax rate was 21.3% 1.9% three and nine months ended September 30, 2020 three months ended September 30, 2020 21.3% 21% nine months ended September 30, 2020 1.9% 21% Because of our net operating loss carryforwards, we are subject to U.S. federal and state income tax examinations from the year 2000 2014 2015 2015 2016 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. 50% 50% We recognize deferred tax assets to the extent that it is believed that these assets are more likely than not to be realized. We have evaluated all positive and negative evidence and determined that we will continue to assess a full valuation allowance on our U.S., Swedish U.K., Chinese and Slovakian net deferred assets as of September 30, 2020

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Note 14 Leases We maintain leases of office facilities and equipment. Leases generally have remaining terms of one three years one five years Operating lease Right-of-Use ("ROU") assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The operating lease ROU assets represent the lease liability, plus any lease payments made at or before the commencement date, less any lease incentives received. Our real estate leases, which are comprised primarily of office spaces, represent most of our remaining lease liability. Most of our lease payments are fixed, although an immaterial portion of payments are variable in nature. Variable lease payments vary based on changes in facts and circumstances related to the use of the ROU and are recorded as incurred. We use an incremental borrowing rate based on rates available at commencement in determining the present value of future payments. We have lease agreements with lease and non-lease components, which are accounted for as a single lease. We apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. Lease contracts are evaluated at inception to determine whether they contain a lease and whether we obtain the right to control an identified asset. The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets ( in thousands As of Operating Leases Classification September 30, 2020 December 31, 2019 Leased Assets Operating lease - right of use assets Long term assets $ 1,726 $ 2,215 Lease Liabilities Operating lease liabilities - current Other current liabilities 1,141 1,153 Operating lease liabilities Long term liabilities 2,100 3,000 $ 3,241 $ 4,153 During the three months ended September 30, 2020 We executed a sublease agreement with a tenant to sublease 3,650 May 1, 2019 3,822 April 1, 2017 The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during the nine months ended September 30, 2020 and 2019 in thousands Three months ended Nine months ended Lease Cost Classification September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating lease cost (1) Selling, general and administrative expenses $ 207 $ 307 $ 625 $ 852 Short-term leases costs (2) Selling, general and administrative expenses - 46 1 119 Sublease income (3) Selling, general and administrative expenses (33 ) (43 ) (97 ) (75 ) Net lease cost $ 174 $ 310 $ 529 $ 896 (1) (2) (3) two The future minimum lease payments under non-cancellable operating leases are reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted operating lease liabilities as recognized at September 30, 2020 in thousands Operating Leases 2020 $ 319 2021 1,255 2022 1,166 2023 631 2024 116 and thereafter - Total lease payments $ 3,487 Less: Interest 246 Present value of lease payments $ 3,241 We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases. As noted in our lease accounting policy, we use the incremental borrowing rate as the lease discount rate. Lease Term and Discount Rate September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 2.83 3.51 Weighted-average discount rate Operating leases 5.00% 5.00% The table below sets out the classification of lease payments in the consolidated statement of cash flows. (in thousands) Nine months ended Cash paid for amounts included in measurement of liabilities September 30, 2020 September 30, 2019 Operating cash flows used in operating leases $ 1,015 $ 893 Right-of-use assets obtained in exchange for new operating leases $ - $ 1,777

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2020
Segment Information [Abstract]
Segment Information	Note 15 Segment Information We have two two years The NITC segment provides specialized workforce solutions primarily to the nuclear industry, working primarily at our 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 our products and service portfolio. Our primary measure of segment performance, as shown in the table below, excludes the loss on impairment of intangible assets and goodwill, the provision for loss on legal settlement, net (see Note 16) and the change in fair value of contingent consideration, net related to the DP Engineering acquisition in fiscal 2019, which do not accurately represent the ongoing operations of our operating segments. Management believes that excluding these discrete items from the segment measure of performance allows for better period over period comparison. 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. Inter-segment revenue is eliminated in consolidation and is not significant: Three months ended Nine months ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenue: Performance $ 7,257 $ 11,417 $ 25,240 $ 36,617 NITC 5,665 8,614 19,727 29,066 Total revenue 12,922 20,031 44,967 65,683 Operating loss: Performance (74 ) (25 ) (2,041 ) 31 NITC (1,249 ) (340 ) (2,105 ) (1,558 ) Gain on legal settlement, net 952 - 91 - Loss on impairment - - (4,302 ) (5,464 ) Change in fair value of contingent consideration, net - - - 1,200 Operating loss (371 ) (365 ) (8,357 ) (5,791 ) Interest expense, net (128 ) (288 ) (556 ) (812 ) Gain (loss) on derivative instruments, net 31 (61 ) 35 (69 ) Other (expense) income, net (77 ) 59 (24 ) 62 Loss before income taxes $ (545 ) $ (655 ) $ (8,902 ) $ (6,610 )

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 16 Commitments and Contingencies Joyce v. Absolute Consulting, Inc. On March 29, 2019, a former employee of Absolute Consulting, Inc., filed a putative class action against Absolute and the Company, Joyce v. Absolute Consulting Inc 1:19 cv 00868 RDB On August 17, 2020, Absolute entered into a Settlement Agreement with the plaintiffs, with a maximum settlement amount of $ 1.5 625 861 639 1.5 On September 29, 2020, the Company received $ 952 91 Per ASC 450 Accounting for Contingencies

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 17 Subsequent Events Management determined that there were no material significant events that occurred between the period ended September 30, 2020 and the date these financial statements were available for issuance.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies [Abstract]
Basis of Preparation	Basis of Presentation GSE Systems, Inc. is a leading provider of professional and technical engineering, staffing services and simulation software to clients in the power and process industries. References in this report to "GSE" or "we" or "our" or "the Company" are to GSE Systems, Inc. and our subsidiaries, collectively. The consolidated interim financial statements included herein have been prepared by GSE and are unaudited. In the opinion of our 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 accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. The accompanying balance sheet data for the year ended December 31, 2019 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 our Annual Report on Form 10-K for the year ended December 31, 2019 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. Our most significant estimates relate to revenue recognition on contracts with customers, allowance for doubtful accounts, product warranties, valuation of goodwill and intangible assets acquired including the determination of fair value in impairment tests, 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 of these, and other items not listed, could differ from these estimates and those differences could be material.
Going Concern	Going Concern As a result of the COVID-19 pandemic, we have experienced a negative impact on our fiscal 2020 financial position and results of operations. We will likely continue to experience delays in commencing work on outstanding orders or loss of orders altogether, disruption of our business as a result of worker illness or mandated shutdowns, and decline in our ability to refinance existing indebtedness and access new capital. We signed the Eighth Amendment and Reaffirmation Agreement (the “Eighth Amendment”) with , resulting in the full payoff of our long-term debt during the three months ended September 30, 2020, in response to the breach of our Adjusted EBITDA debt covenant during the three months ended June 30, 2020. The Eighth Amendment also altered or removed certain of our debt covenants and required a minimum US liquidity of $ 3.5 million to be tested biweekly (see Note 10). We continue to experience a negative impact to our results of operations and financial position from the COVID-19 pandemic. Based upon our current projections and outstanding balance on our revolving line of credit, we may be in violation of our leverage ratio in Q1 2021; however, we believe we have various options available to remediate or prevent the potential violation. Our options include continuing to development new revenue opportunities, reducing our operating costs such as our workforce, including reductions in compensation and benefits or eliminating fixed costs such as office space. In addition, we may further pay down outstanding debt balances by repatriating cash held in foreign operations. If necessary, we could potentially refinance our debt obligations, to an asset based or other loan arrangement. Also, working with our bank, we could potentially obtain additional debt amendments, including waivers of potential covenant breaches. We have no assurance that it will be possible to implement any of these on acceptable terms, however. We received $ 10 Including the proceeds from the PPP, we believe we have sufficient cash to meet our operating requirement needs for at least the next twelve months; however, since some of our loan covenants are related to operating performance and our operating performance continues to be impacted by the COVID-19 pandemic, we may be in violation with our amended debt covenants during fiscal 2021. If we are unable to maintain compliance with our covenants, the Bank may call our outstanding Revolving Line of Credit due, which may create substantial doubt regarding our ability to continue as a going concern.

Recent Accounting Policies (Pol

Recent Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Recent Accounting Policies [Abstract]
Recent Accounting Policies	Accounting pronouncements recently adopted In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Simplifying the Test for Goodwill Impairment We adopted the new standard and began using the simplified approach on January 1, 2020. Accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities, Investments – Equity Method and Joint Ventures, and Derivatives and Hedging In September 2020, the FASB issued ASU 2020-10, Codification Improvements

Basic and Diluted (Loss) Inco_2

Basic and Diluted (Loss) Income per Common Share (Tables)	9 Months Ended
	Sep. 30, 2020
Basic and Diluted (Loss) Income per Common Share [Abstract]
Earnings (Loss) Per Share, Basic and Diluted	The number of common shares and common share equivalents used in the determination of basic and diluted loss (in thousands, except for share amounts) Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Numerator: Net loss $ (661 ) $ (1,223 ) $ (9,068 ) $ (5,736 ) Denominator: Weighted-average shares outstanding for basic loss per share 20,563,452 20,007,469 20,438,571 20,021,829 Effect of dilutive securities: Stock options and restricted stock units - - - - Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share 20,563,452 20,007,469 20,438,571 20,021,829 Shares related to dilutive securities excluded from calculation because inclusion would be anti-dilutive 66,261 578,676 12,172 397,131

Contract Receivables (Tables)

Contract Receivables (Tables)	9 Months Ended
	Sep. 30, 2020
Contract Receivables [Abstract]
Contract Receivables	The components of contract receivables were as follows: (in thousands) September 30, 2020 December 31, 2019 Billed receivables $ 5,319 $ 11,041 Unbilled receivables 6,239 6,624 Allowance for doubtful accounts (415 ) (458 ) Total contract receivables, net $ 11,143 $ 17,207

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets [Abstract]
Net Carrying Amount of Goodwill	The table below reflects the net carrying amount of goodwill from January 1, 2020 to September 30, 2020 ( in thousands Performance NITC Total Balance at January 1, 2020 $ 4,908 $ 8,431 $ 13,339 Balance at September 30, 2020 $ 4,908 $ 8,431 $ 13,339
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	Changes in the gross carrying amount, accumulated amortization and impairment of definite-lived intangible assets were as follows: ( in thousands As of September 30, 2020 Gross Carrying Amount Accumulated Amortization Impact of Impairment Net Amortized intangible assets: Customer relationships $ 11,730 $ (5,207 ) $ (3,102 ) $ 3,421 Trade names 2,467 (952 ) (778 ) 737 Developed technology 471 (471 ) - - Non-contractual customer relationships 433 (433 ) - - Noncompete agreements 949 (313 ) (422 ) 214 Alliance agreements 527 (250 ) - 277 Others 167 (167 ) - - Total $ 16,744 $ (7,793 ) $ (4,302 ) $ 4,649 (in thousands) As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Amortized intangible assets: Customer relationships $ 11,730 $ (4,079 ) $ 7,651 Trade names 2,467 (727 ) 1,740 Developed technology 471 (471 ) - Non-contractual customer relationships 433 (433 ) - Noncompete agreements 949 (217 ) 732 Alliance agreements 527 (171 ) 356 Others 167 (167 ) - Total $ 16,744 $ (6,265 ) $ 10,479
Finite-Lived Intangible Assets, Future Amortization Expense	Amortization expense related to definite-lived intangible assets totaled $ 0.4 0.6 the three months ended September 30, 2020 and 2019 1.5 1.8 the nine months ended September 30, 2020 and 2019 (in thousands) Years ended December 31: 2020 $ 415 2021 1,213 2022 911 2023 640 2024 435 and thereafter 1,035 Total $ 4,649

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value of Financial Instruments [Abstract]
Assets and Liabilities Measured at Fair Value	The following table presents assets measured at fair value at September 30, 2020 (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 $ 434 $ - $ - $ 434 Total assets $ 434 $ - $ - $ 434 The following table presents assets and liabilities measured at fair value at December 31, 2019 (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 $ 434 $ - $ - $ 434 Foreign exchange contracts - 49 - 49 Total assets $ 434 $ 49 $ - $ 483 Liability awards $ - $ (9 ) $ - $ (9 ) Interest rate swap contract - (160 ) - (160 ) Total liabilities $ - $ (169 ) $ - $ (169 )

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Instruments [Abstract]
Net Gain (Loss) on Derivative Instruments	We recognized a net gain (loss) Three months ended Nine months ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Interest rate swap $ 25 $ (1 ) $ (49 ) $ (89 ) Foreign exchange contracts - (45 ) 17 25 Remeasurement of related contract receivables, billings-in-excess of revenue earned, and subcontractor accruals 6 (15 ) 67 (5 ) Gain (loss) on derivative instruments, net $ 31 $ (61 ) $ 35 $ (69 )

Product Warranty (Tables)

Product Warranty (Tables)	9 Months Ended
	Sep. 30, 2020
Product Warranty [Abstract]
Activities in the Accrued Warranty Accounts	We accrue for estimated warranty costs at the time the related revenue is recognized and based on historical experience and projected claims. Our System Design and Build contracts generally include a one year 0.8 0.2 (in thousands) Balance at January 1, 2020 $ 1,323 Current period provision (136 ) Current period claims (149 ) Currency adjustment 9 Balance at September 30, 2020 $ 1,047

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue [Abstract]
Disaggregation of Revenue	The following table represents a disaggregation of revenue by type of goods or services for three and nine months ended September 30, 2020 and 2019 Three months ended Nine months ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Performance segment SDB $ 2,473 $ 4,435 $ 9,535 $ 16,472 Software 942 786 2,575 2,170 Training and consulting 3,842 6,196 13,130 17,975 NITC segment Training and consulting 5,665 8,614 19,727 29,066 Total revenue $ 12,922 $ 20,031 $ 44,967 $ 65,683
Balance of Contract Liabilities and Revenue Recognized in Reporting Period	The following table reflects revenue recognized in the reporting periods presented that was included in contract liabilities from contracts with customers as of the beginning of the periods presented: ( in thousands Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenue recognized in the period from amounts included in Billings-in-Excess of Revenue Earned at the beginning of the period $ 1,520 $ 762 $ 6,221 $ 8,615

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2020
Income Taxes [Abstract]
Income Before Income Taxes by Domestic and Foreign Sources	The following table presents the provision for (benefit from) income taxes and our effective tax rates: (in thousands) Three months ended Nine months ended September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Loss before income taxes $ (545 ) $ (655 ) $ (8,902 ) $ (6,610 ) Provision for (benefit from) income taxes $ 116 $ 568 $ 166 $ (874 ) Effective tax rate (21.3 )% (86.7 )% (1.9 )% 13.2 %

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Classification of Operating ROU Assets and Lease Liabilities on the Balance Sheet	The following table summarizes the classification of operating ROU assets and lease liabilities on the consolidated balance sheets ( in thousands As of Operating Leases Classification September 30, 2020 December 31, 2019 Leased Assets Operating lease - right of use assets Long term assets $ 1,726 $ 2,215 Lease Liabilities Operating lease liabilities - current Other current liabilities 1,141 1,153 Operating lease liabilities Long term liabilities 2,100 3,000 $ 3,241 $ 4,153
Lease Income and Expenses	The table below summarizes lease income and expense recorded in the consolidated statements of operations incurred during the nine months ended September 30, 2020 and 2019 in thousands Three months ended Nine months ended Lease Cost Classification September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Operating lease cost (1) Selling, general and administrative expenses $ 207 $ 307 $ 625 $ 852 Short-term leases costs (2) Selling, general and administrative expenses - 46 1 119 Sublease income (3) Selling, general and administrative expenses (33 ) (43 ) (97 ) (75 ) Net lease cost $ 174 $ 310 $ 529 $ 896 (1) (2) (3) two
Future Minimum Lease Payments	The future minimum lease payments under non-cancellable operating leases are reflected below. This table also reflects the reconciliation of the undiscounted cash flows to the discounted operating lease liabilities as recognized at September 30, 2020 in thousands Operating Leases 2020 $ 319 2021 1,255 2022 1,166 2023 631 2024 116 and thereafter - Total lease payments $ 3,487 Less: Interest 246 Present value of lease payments $ 3,241
Operating Lease Weighted Average Remaining Lease Term And Discount Rate	We calculated the weighted-average remaining lease term, presented in years below and the weighted-average discount rate for our operating leases. As noted in our lease accounting policy, we use the incremental borrowing rate as the lease discount rate. Lease Term and Discount Rate September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating leases 2.83 3.51 Weighted-average discount rate Operating leases 5.00% 5.00%
Classification of Lease Payments in the Statement of Cash Flows	The table below sets out the classification of lease payments in the consolidated statement of cash flows. (in thousands) Nine months ended Cash paid for amounts included in measurement of liabilities September 30, 2020 September 30, 2019 Operating cash flows used in operating leases $ 1,015 $ 893 Right-of-use assets obtained in exchange for new operating leases $ - $ 1,777

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2020
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. Inter-segment revenue is eliminated in consolidation and is not significant: Three months ended Nine months ended (in thousands) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Revenue: Performance $ 7,257 $ 11,417 $ 25,240 $ 36,617 NITC 5,665 8,614 19,727 29,066 Total revenue 12,922 20,031 44,967 65,683 Operating loss: Performance (74 ) (25 ) (2,041 ) 31 NITC (1,249 ) (340 ) (2,105 ) (1,558 ) Gain on legal settlement, net 952 - 91 - Loss on impairment - - (4,302 ) (5,464 ) Change in fair value of contingent consideration, net - - - 1,200 Operating loss (371 ) (365 ) (8,357 ) (5,791 ) Interest expense, net (128 ) (288 ) (556 ) (812 ) Gain (loss) on derivative instruments, net 31 (61 ) 35 (69 ) Other (expense) income, net (77 ) 59 (24 ) 62 Loss before income taxes $ (545 ) $ (655 ) $ (8,902 ) $ (6,610 )

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) $ in Millions	Sep. 30, 2020USD ($)
Summary of Significant Accounting Policies [Abstract]
Liquidity	$ 3.5
Amount received from Paycheck Protection Program	$ 10

Basic and Diluted (Loss) Inco_3

Basic and Diluted (Loss) Income per Common Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator [Abstract]
Net loss	$ (661)	$ (1,223)	$ (9,068)	$ (5,736)
Denominator [Abstract]
Weighted-average shares outstanding for basic loss per share (in shares)	20,563,452	20,007,469	20,438,571	20,021,829
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)	20,563,452	20,007,469	20,438,571	20,021,829
Shares related to dilutive securities excluded from calculation because inclusion would be anti-dilutive (in shares)	66,261	578,676	12,172	397,131

Paycheck Protection Program L_2

Paycheck Protection Program Loan (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019
Debt Instruments [Abstract]
Amount received from Paycheck Protection Program	$ 10,000	$ 10,000
Long-term debt, current	$ 0	$ 0	$ 18,481
Paycheck Protection Program [Member]
Debt Instruments [Abstract]
Interest rate	1.00%	1.00%
Percentage of principal amount of loan guaranteed	100.00%	100.00%
Amount received from Paycheck Protection Program	$ 10,000	$ 10,000
Accrued interest	44	44
Long-term debt, current	400	400
Long-term debt	9,600	9,600
Interest expense	$ 26	$ 44

Contract Receivables (Details)

Contract Receivables (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2020USD ($)	Sep. 30, 2020USD ($)Customer	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Customer	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)Customer
Components of contract receivables [Abstract]
Billed receivables		$ 5,319		$ 5,319		$ 11,041
Unbilled receivables		6,239		6,239		6,624
Allowance for doubtful accounts		(415)		(415)		(458)
Total contract receivables, net		11,143		11,143		$ 17,207
Bad debt expense		$ 10	$ 48	103	$ 48
Unbilled Contract Receivables [Abstract]
Unbilled contract receivables invoiced				$ (1,195)	$ (6,777)
Contract Receivable [Member]
Concentration Risk [Abstract]
Number of customers accounting for contract receivables | Customer		2		2		2
Subsequent Event [Member]
Unbilled Contract Receivables [Abstract]
Unbilled contract receivables invoiced	$ 2,600
Maximum [Member] | Contract Receivable [Member]
Concentration Risk [Abstract]
Percentage of contract receivables accounted by major customers				9.00%		13.00%
Minimum [Member] | Contract Receivable [Member]
Concentration Risk [Abstract]
Percentage of contract receivables accounted by major customers				7.00%		10.00%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Segment	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Goodwill and Intangible Assets [Abstract]
Number of reporting units | Segment			2
Number of operating segments | Segment			2
Loss on impairment	$ 0	$ 0	$ 4,302	$ 5,464
Goodwill [Roll Forward]
Goodwill	13,339		13,339		$ 13,339
Amortized Intangible Assets [Abstract]
Gross carrying amount	16,744		16,744		16,744
Accumulated amortization	(7,793)		(7,793)		(6,265)
Impact of Impairment			(4,302)
Total	4,649		4,649		10,479
Amortization of definite-lived intangible assets	414	$ 596	1,528	$ 1,804
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2020	415		415
2021	1,213		1,213
2022	911		911
2023	640		640
2024	435		435
and thereafter	1,035		1,035
Total	4,649		4,649		10,479
Customer Relationships [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	11,730		11,730		11,730
Accumulated amortization	(5,207)		(5,207)		(4,079)
Impact of Impairment			(3,102)
Total	3,421		3,421		7,651
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	3,421		3,421		7,651
Trade Names [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	2,467		2,467		2,467
Accumulated amortization	(952)		(952)		(727)
Impact of Impairment			(778)
Total	737		737		1,740
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	737		737		1,740
Developed Technology [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	471		471		471
Accumulated amortization	(471)		(471)		(471)
Impact of Impairment			0
Total	0		0		0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	0		0		0
Non-Controlling Customer Relationships [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	433		433		433
Accumulated amortization	(433)		(433)		(433)
Impact of Impairment			0
Total	0		0		0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	0		0		0
Noncompete Agreement [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	949		949		949
Accumulated amortization	(313)		(313)		(217)
Impact of Impairment			(422)
Total	214		214		732
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	214		214		732
Alliance Agreements [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	527		527		527
Accumulated amortization	(250)		(250)		(171)
Impact of Impairment			0
Total	277		277		356
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	277		277		356
Others [Member]
Amortized Intangible Assets [Abstract]
Gross carrying amount	167		167		167
Accumulated amortization	(167)		(167)		(167)
Impact of Impairment			0
Total	0		0		0
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Total	0		0		0
Performance Improvement Solutions [Member]
Goodwill [Roll Forward]
Goodwill	4,908		4,908		4,908
Nuclear Industry Training and Consulting [Member]
Goodwill [Roll Forward]
Goodwill	$ 8,431		$ 8,431		$ 8,431

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets and Liabilities Measured at Fair Value [Abstract]
Money market funds	$ 434	$ 434
Foreign exchange contracts		49
Total assets	434	483
Liability awards		(9)
Interest rate swap contract		(160)
Total liabilities		(169)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Money market funds	434	434
Foreign exchange contracts		0
Total assets	434	434
Liability awards		0
Interest rate swap contract		0
Total liabilities		0
Significant Other Observable Inputs (Level 2) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Money market funds	0	0
Foreign exchange contracts		49
Total assets	0	49
Liability awards		(9)
Interest rate swap contract		(160)
Total liabilities		(169)
Significant Unobservable Inputs (Level 3) [Member]
Assets and Liabilities Measured at Fair Value [Abstract]
Money market funds	0	0
Foreign exchange contracts		0
Total assets	$ 0	0
Liability awards		0
Interest rate swap contract		0
Total liabilities		$ 0

Derivative Instruments, Foreign

Derivative Instruments, Foreign Exchange Contracts (Details)	Sep. 30, 2020Contract
Foreign Exchange Contracts [Member]
Derivative [Abstract]
Number of foreign exchange contracts outstanding	0

Derivative Instruments, Interes

Derivative Instruments, Interest Rate Risk Management (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2020USD ($)
Interest Rate Swap [Member]
Derivative [Abstract]
Notional amount	$ 9,000	$ 9,000
Principal repayment term		5 years
Fixed interest rate	3.02%	3.02%
Repayments of debt	$ 209	$ 200
Term Loan [Member]
Derivative [Abstract]
Repayments of debt		$ 9,100
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

Derivative Instruments, Net Gai

Derivative Instruments, Net Gain (Loss) on Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Gain (Loss) on Derivative Instruments [Abstract]
Interest rate swap - change in fair value	$ 25	$ (1)	$ (49)	$ (89)
Foreign exchange contracts	0	(45)	17	25
Remeasurement of related contract receivables, billings-in-excess of revenue earned, and subcontractor accruals	6	(15)	67	(5)
Gain (loss) on derivative instruments, net	$ 31	$ (61)	$ 35	$ (69)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)shares	Sep. 30, 2020USD ($)qtrshares	Sep. 30, 2019USD ($)shares
Stock Option [Member]
Share-based Compensation [Abstract]
Stock-based compensation expense	$ 33	$ 169	$ 357	$ 1,238
Restricted Stock Units [Member]
Share-based Compensation [Abstract]
Stock-based compensation expense	$ 0	$ (60)	$ 6	$ 88
Granted time-based RSUs (in shares) | shares	130,000	8,500	170,000	509,000
Aggregate fair value for time-based RSUs	$ 122	$ 20	$ 175	$ 1,400
Number of quarters time-based RSU's will vest quarterly | qtr			8
Vesting period of performance based RSU's			3 years
Granted performance-based RSUs (in shares) | shares	0		512,000	350,000
Aggregate fair value for performance-based RSUs			$ 570	$ 900
Cumulative adjustment	$ 100	$ 200
Restricted Stock Units [Member] | Minimum [Member]
Share-based Compensation [Abstract]
Period in which time-based RSU's will vest annually in equal amounts			1 year
Requisite service period for time-based RSU's			1 year
Restricted Stock Units [Member] | Maximum [Member]
Share-based Compensation [Abstract]
Period in which time-based RSU's will vest annually in equal amounts			3 years
Requisite service period for time-based RSU's			3 years

Debt (Details)

Debt (Details) $ in Thousands

Feb. 15, 2019USD ($)

May 11, 2018USD ($)

Sep. 30, 2020USD ($)Letter

Sep. 30, 2020USD ($)Letter

Mar. 31, 2022

Dec. 31, 2021

Sep. 30, 2021

Jun. 30, 2021

Mar. 31, 2021

Dec. 31, 2020

Sep. 15, 2020USD ($)

Aug. 28, 2020USD ($)

Jun. 30, 2020USD ($)

Apr. 17, 2020USD ($)

Mar. 31, 2020USD ($)

Jan. 08, 2020USD ($)

Jan. 06, 2020USD ($)

Jun. 28, 2019

Dec. 29, 2016USD ($)

Line of Credit Facility [Abstract]

Fixed charge coverage ratio

1.25

Liquidity

$ 3,500

$ 3,500

Leverage ratio

2.50

2.50

2.50

2.75

Interest Rate Swap [Member]

Line of Credit Facility [Abstract]

Line of credit facility term

5 years

Term Loan [Abstract]

Repayments of debt

$ 209

$ 200

Plan [Member]

Line of Credit Facility [Abstract]

Leverage ratio

2.25

2.25

2.25

2.25

LIBOR [Member]

Term Loan [Abstract]

Term of variable rate

1 month

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

Line of credit facility term

5 years

Outstanding letter of credit balance

$ 3,500

$ 3,500

Number of letters of credit | Letter

4

4

Outstanding letter of credit balance

$ 1,200

$ 1,200

Line of credit facility, remaining borrowing capacity

300

$ 300

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%

Sixth Amendment and Reaffirmation Agreement [Member]

Line of Credit Facility [Abstract]

EBITDA target

$ 4,250

Additional principal payable

$ 500

$ 1,000

$ 3,000

Term Loan [Abstract]

Debt issuance costs

$ 20

$ 20

Sixth Amendment and Reaffirmation Agreement [Member] | Minimum [Member]

Line of Credit Facility [Abstract]

Liquidity

$ 5,000

Seventh Amendment And Reaffirmation Agreement [Member]

Line of Credit Facility [Abstract]

Leverage ratio

1.25

Additional principal payable

$ 500

$ 750

Term Loan [Abstract]

Loan origination fees

$ 50

Seventh Amendment And Reaffirmation Agreement [Member] | Plan [Member]

Line of Credit Facility [Abstract]

Leverage ratio

3

3

2.25

2.25

2.25

2.25

2.25

2.50

Eighth Amendment and Reaffirmation Agreement [Member]

Line of Credit Facility [Abstract]

EBITDA target

$ 10,000

Maximum leverage ratio

1

Term Loan [Abstract]

Repayments of debt

$ 9,100

Debt issuance costs

$ 10

Eighth Amendment and Reaffirmation Agreement [Member] | Plan [Member]

Line of Credit Facility [Abstract]

Maximum leverage ratio

2

2.50

2.75

3

Eighth Amendment and Reaffirmation Agreement [Member] | Minimum [Member]

Line of Credit Facility [Abstract]

Liquidity

$ 3,500

Minimum amount expected to be forgiven

$ 1,000

Eighth Amendment and Reaffirmation Agreement [Member] | Revolving Credit Facility [Member]

Line of Credit Facility [Abstract]

Outstanding letter of credit balance

700

700

9,100

Line of credit facility, remaining borrowing capacity

$ 694

Delayed Draw Term Loan [Member]

Term Loan [Abstract]

Repayments of debt

$ 9,100

Delayed Draw Term Loan [Member] | Minimum [Member]

Term Loan [Abstract]

Debt instrument, basis spread on variable rate

2.00%

Delayed Draw Term Loan [Member] | Maximum [Member]

Term Loan [Abstract]

Debt instrument, basis spread on variable rate

2.75%

Delayed Draw Term Loan [Member] | Citizen's Bank [Member] | LIBOR [Member]

Term Loan [Abstract]

Term of variable rate

1 month

Delayed Draw Term Loan [Member] | Citizen's Bank [Member] | Maximum [Member]

Line of Credit Facility [Abstract]

Line of credit facility expiration period

18 months

Delayed Draw Term Loan [Member] | Citizen's Bank [Member] | Revolving Credit Facility [Member]

Line of Credit Facility [Abstract]

Principal amount of the line of credit

$ 25,000

DP Engineering Ltd, CO. [Member]

Term Loan [Abstract]

Cash purchase price

$ 13,500

Proceeds from issuance of debt

14,300

DP Engineering Ltd, CO. [Member] | Delayed Draw Term Loan [Member]

Term Loan [Abstract]

Debt issuance costs

$ 0

DP Engineering Ltd, CO. [Member] | Delayed Draw Term Loan [Member] | Minimum [Member]

Term Loan [Abstract]

Debt instrument, basis spread on variable rate

2.00%

DP Engineering Ltd, CO. [Member] | Delayed Draw Term Loan [Member] | Maximum [Member]

Term Loan [Abstract]

Debt instrument, basis spread on variable rate

2.75%

True North Consulting, LLC [Member] | Delayed Draw Term Loan [Member]

Term Loan [Abstract]

Proceeds from issuance of debt

10,300

Repayments of debt

500

Debt issuance costs

70

Loan origination fees

$ 75

Write-off of debt issuance costs

$ 100

True North Consulting, LLC [Member] | Delayed Draw Term Loan [Member] | LIBOR [Member]

Term Loan [Abstract]

Term of variable rate

1 month

True North Consulting, LLC [Member] | Delayed Draw Term Loan [Member] | Citizen's Bank [Member] | Minimum [Member]

Term Loan [Abstract]

Debt instrument, basis spread on variable rate

2.00%

True North Consulting, LLC [Member] | Delayed Draw Term Loan [Member] | Citizen's Bank [Member] | Maximum [Member]

Term Loan [Abstract]

Debt instrument, basis spread on variable rate

2.75%

Product Warranty (Details)

Product Warranty (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Product warranty provision [Abstract]
Warranty terms for SDB contracts	1 year
Accrued warranty, current	$ 843
Accrued warranty, noncurrent	204
Activities in product warranty account [Abstract]
Balance at January 1, 2020	1,323
Current period provision	(136)
Current period claims	(149)
Currency adjustment	9
Balance at September 30, 2020	$ 1,047

Revenue (Details)

Revenue (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)Obligation	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)StreamObligation	Sep. 30, 2019USD ($)
Disaggregation of Revenue [Abstract]
Revenue	$ 12,922	$ 20,031	$ 44,967	$ 65,683
Number of distinct revenue streams | Stream			3
Contract with Customer, Asset and Liability [Abstract]
Revenue recognized in the period from amounts included in Billings-in-Excess of Revenue Earned at the beginning of the period	$ 1,520	762	$ 6,221	8,615
Revenue, Performance Obligation [Abstract]
Number of performance obligations | Obligation	2		2
Performance Segment [Member]
Disaggregation of Revenue [Abstract]
Revenue	$ 7,257	11,417	$ 25,240	36,617
Performance Segment [Member] | SDB [Member]
Disaggregation of Revenue [Abstract]
Revenue	2,473	4,435	9,535	16,472
Performance Segment [Member] | Software [Member]
Disaggregation of Revenue [Abstract]
Revenue	942	786	2,575	2,170
Performance Segment [Member] | Training and Consulting [Member]
Disaggregation of Revenue [Abstract]
Revenue	3,842	6,196	13,130	17,975
NITC Segment [Member]
Disaggregation of Revenue [Abstract]
Revenue	5,665	8,614	19,727	29,066
NITC Segment [Member] | Training and Consulting [Member]
Disaggregation of Revenue [Abstract]
Revenue	$ 5,665	$ 8,614	$ 19,727	$ 29,066

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Taxes [Abstract]
Loss before income taxes	$ (545)	$ (655)	$ (8,902)	$ (6,610)
Provision for (benefit from) income taxes	$ 116	$ 568	$ 166	$ (874)
Effective tax rate	(21.30%)	(86.70%)	(1.90%)	13.20%
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%
Sweden [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2014
China [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2015
India [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2015
UK [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2016
Federal [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2000
State [Member]
Income Tax Examination [Abstract]
Income tax examination, year under examination			2000

Leases (Details)

Leases (Details) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
		Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)ft²Tenant	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Leased Assets [Abstract]
Operating lease - right of use assets		$ 1,726		$ 1,726		$ 2,215
Lease Liabilities [Abstract]
Operating lease liabilities - current		1,141		1,141		1,153
Operating lease liabilities - Noncurrent		2,100		2,100		3,000
Operating lease liability		3,241		$ 3,241		4,153
Sublease Agreement [Abstract]
Sublease square feet | ft²				3,650
Sublease date				May 1, 2019
Previously subleased square feet | ft²				3,822
Previous sublease date				Apr. 1, 2017
Number of tenants | Tenant				2
Consolidated Statement of Operations Information [Abstract]
Operating lease cost	[1]	207	$ 307	$ 625	$ 852
Short-term leases costs	[2]	0	46	1	119
Sublease income	[3]	(33)	(43)	(97)	(75)
Net lease cost		174	$ 310	529	896
Minimum Lease Payments [Abstract]
2020		319		319
2021		1,255		1,255
2022		1,166		1,166
2023		631		631
2024		116		116
and thereafter		0		0
Total lease payments		3,487		3,487
Less: Interest		246		246
Present value of lease payments		$ 3,241		$ 3,241		$ 4,153
Lease Term and Discount Rate [Abstract]
Weighted-average remaining lease term (in years)				2 years 9 months 29 days		3 years 6 months 4 days
Weighted-average discount rate		5.00%		5.00%		5.00%
Other Information [Abstract]
Operating cash flows used in operating leases				$ 1,015	893
Right-of-use assets obtained in exchange for new operating liabilities				$ 0	$ 1,777
Minimum [Member]
Lessee, Operating Lease, Description [Abstract]
Remaining operating lease terms		1 year		1 year
Renewal option period		1 year		1 year
Maximum [Member]
Lessee, Operating Lease, Description [Abstract]
Remaining operating lease terms		3 years		3 years
Renewal option period		5 years		5 years
[1]	Includes variable lease costs which are immaterial.
[2]	Include leases maturing less than twelve months from the report date.
[3]	Sublease portfolio consists of two tenants, which sublease parts of our principal executive office located at 1332 Londontown Blvd, Suite 200, Sykesville, MD.

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)Segment	Sep. 30, 2019USD ($)
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]
Revenue	$ 12,922	$ 20,031	$ 44,967	$ 65,683
Operating loss	(371)	(365)	(8,357)	(5,791)
Gain on legal settlement, net	952	0	91	0
Loss on impairment	0	0	(4,302)	(5,464)
Change in fair value of contingent consideration, net	0	0	0	1,200
Interest expense, net	(128)	(288)	(556)	(812)
Gain (loss) on derivative instruments, net	31	(61)	35	(69)
Other (expense) income, net	(77)	59	(24)	62
Loss before income taxes	(545)	(655)	(8,902)	(6,610)
Performance Segment [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Revenue	7,257	11,417	25,240	36,617
Operating loss	(74)	(25)	(2,041)	31
NITC Segment [Member]
Segment Reporting Information, Profit (Loss) [Abstract]
Revenue	5,665	8,614	19,727	29,066
Operating loss	$ (1,249)	$ (340)	$ (2,105)	$ (1,558)

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Sep. 08, 2020	Aug. 17, 2020	Sep. 30, 2020	Sep. 30, 2020	Sep. 29, 2020
Loss Contingency, Estimate [Abstract]
Initial payment on settlement	$ 625
Additional potential liability		$ 639
Escrow balance					$ 952,000
Provision for loss on legal settlement			$ 91,000	$ 91,000
Maximum [Member]
Loss Contingency, Estimate [Abstract]
Settlement amount		1,500
Estimated gross settlement		1,500
Minimum [Member]
Loss Contingency, Estimate [Abstract]
Estimated gross settlement		$ 861