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SUPPLEMENTAL FINANCIAL STATEMENT DATA

9 Months Ended

Sep. 30, 2022

SUPPLEMENTAL FINANCIAL STATEMENT DATA

4. SUPPLEMENTAL FINANCIAL STATEMENT DATA

Accounts Receivable

From time to time, in connection with factoring agreements, the Company sells trade accounts receivable without recourse to third party purchasers in exchange for cash. During the nine months ended September 30, 2022, the Company did not sell any trade accounts receivable. During the nine months ended October 1, 2021, the Company sold trade accounts receivable and received cash proceeds of $8.0 million. The discounts on the trade accounts receivable sold were $0.8 million and were recorded within “Other, net” in other income (expense) in the condensed consolidated financial statements.

Equipment and Leasehold Improvements


	September 30,		December 31,
	2022		2021
	(in thousands)
Furniture and fixtures	$	4,065	$	4,070
Computer hardware and software		33,085		26,425
Leasehold improvements		3,083		3,011
Equipment under finance leases		5,204		3,286
Automobiles, trucks, and field equipment		3,102		3,099
Subtotal		48,539		39,891
Accumulated depreciation and amortization		(27,392)		(23,134)
Equipment and leasehold improvements, net	$	21,147	$	16,757

Included in accumulated depreciation and amortization is $0.8 million and $0.6 million of amortization expense related to equipment held under finance leases for the nine months ended September 30, 2022 and for fiscal year 2021, respectively.

Accrued Liabilities


	September 30,		December 31,
	2022		2021
	(in thousands)
Accrued subcontractor costs	$	34,624	$	19,727
Other		5,013		2,750
Compensation and payroll taxes		3,676		2,244
Accrued bonuses		3,606		7,767
Employee withholdings		3,396		2,665
Accrued workers’ compensation insurance		681		527
Total accrued liabilities	$	50,996	$	35,680

Goodwill


	December 31,		Additional		Additions /		September 30,
	2021		Purchase Cost		Adjustments		2022
	(in thousands)
Reporting Unit:
Energy	$	129,375	$	—	$	—	$	129,375
Engineering and Consulting		749		—		—		749
	$	130,124	$	—	$	—	$	130,124

The Company tests for impairment, at a minimum, on an annual basis or earlier when certain events or changes in circumstances indicate that goodwill may more likely than not be impaired. During the quarter ended September 30, 2022, although the Company experienced declines in the market price of its stock, such decreases did not result in the Company’s market capitalization decreasing below book value. Subsequent to the end of the quarter, the Company’s market capitalization based upon its stock price has fluctuated below book value. The fair value of the Company using a market capitalization approach based on the Company’s share price would also include a control premium not reflected in the current share price based on recent transactions that have occurred in the Company’s industry. This indicative fair value exceeded the Company’s book value; therefore, the Company does not believe it is more likely than not that goodwill was impaired as of September 30, 2022.

If there are further decreases in the Company’s stock price for a sustained period or other unfavorable factors, the Company may be required to perform a goodwill impairment assessment, which may result in a recognition of goodwill impairment that could be material to the consolidated financial statements.

Intangible Assets


	September 30, 2022				December 31, 2021
	Gross		Accumulated		Gross		Accumulated		Amortization
	Amount		Amortization		Amount		Amortization		Period
	(in thousands)								(in years)
Finite:
Backlog	$	7,944	$	7,872	$	7,944	$	7,222	1.0
Tradename		15,911		10,492		15,911		8,997	2.5	-	6.0
Non-compete agreements		1,420		1,420		1,420		1,413	4.0	-	5.0
Developed technology		15,810		11,141		15,500		8,950	8.0
Customer relationships		58,149		24,127		58,149		19,939	5.0	-	8.0
Total finite intangible assets		99,234		55,052		98,924		46,521
In-process research and technology ⁽¹⁾		—		—		310		—
Total intangible assets	$	99,234	$	55,052	$	99,234	$	46,521

(1)

In-process research and technology will not be amortized until put into use.

During the nine months ended September 30, 2022, the Company reclassified $0.3 million of in-process research and technology to developed technology and commenced amortization over its estimated useful life.