13.

Goodwill

During the first quarter of 2015, the Company made announcements regarding the Company’s earnings and noncompliance with one of our Prior Credit Facility covenants. On January 27, 2015, the Company announced its preliminary fourth quarter and full year 2014 results and that the Company was not in compliance with the Prior Credit Facility’s tangible net worth covenant. On March 16, 2015, the Company announced actual fourth quarter and full year 2014 results and that a waiver of the covenant breach had been obtained. As a result of these announcements, the Company’s stock price fluctuated greatly during the first quarter of 2015, dropping from a January 2

price of $6.41 to a March 31

price of $4.52.

Due to the decrease in the stock price that resulted and our first quarter loss, the Company noted that a goodwill impairment triggering event occurred during the first quarter of 2015. Therefore, we updated our fourth quarter goodwill impairment assessment using the two methods discussed in Note 8 of the Notes to Consolidated Financial Statements in the 2014 Form 10-K. The assessment used updated first quarter information which incorporated the Company’s stock price at March 31, 2015 and reduced gross margins used in our discounted cash flow model projections. Based on this revised testing, there was no goodwill impairment and we determined that the fair value of the Company’s equity was approximately 8% above the carrying value of the Company’s equity.

During the third quarter of 2015, the Company noted that the revenue projections used in our first quarter goodwill impairment assessment were higher than our actual results for the second and third quarters of 2015; therefore, the Company determined that a goodwill impairment triggering event occurred during the third quarter of 2015. As such, we updated our first quarter goodwill impairment assessment with third quarter 2015 information which incorporated the Company’s stock price at September 30, 2015 and reduced the projected revenue used in our discounted cash flow model. The forecasted cash flows took into consideration historical and recent results, backlog and near term projects, recent developments, strategic actions and management’s outlook for the future. The forecast and growth assumptions included, among other things, improved project performance, continuation of a strong base market, and margin improvements driven by incremental margin product opportunities and pursuing work in adjacent markets. Based on this revised testing, there was no goodwill impairment and we passed by an improved margin compared to that of our first quarter’s 2015 assessment margin.

Our third quarter goodwill impairment assessment’s concluded fair value could be negatively impacted if actual future performance falls short of the collective cash flow model assumptions or if our stock price is adversely affected. If based on future assessments, our goodwill is deemed to be impaired; the impairment would result in a charge to earnings which could be material.