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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2.
Revenue from Contracts with Customers
The Company recognizes revenue on
time-and-material
contracts over time as services are performed and expenses are incurred.
Time-and-material
contracts typically bill at an agreed-upon hourly rate, plus
out-of-pocket
expense reimbursement.
Out-of-pocket
expense reimbursement amounts vary by assignment, but on average represent less than 2% of total revenues.
The Company’s
time-and-material
and fixed price revenue streams are recognized over time as the customer receives and consumes the benefits of the Company’s performance as the work is performed.
In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied.
 
The Company recognizes revenue on fixed price contracts over time as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized.
We do not sell, lease or otherwise market computer software or hardware, and essentially 100% of our revenue is derived from the sale of data and analytics, IT staffing and Digital Transformation services. We expense sales commissions in the same period in which revenues are realized. These costs are recorded within selling, general and administrative expenses.
Each contract the Company enters into is assessed to determine the promised services to be performed and includes identification of the performance obligations required by the contract. In substantially all of our contracts, we have identified a single performance obligation for each contract either because the promised services are distinct, the contract qualifies as a series, or the promised services are highly interrelated and interdependent and therefore represent a combined single performance obligation.
Our Data and Analytics Services segment provides specialized capabilities in delivering data management and analytics services to customers globally. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Big Data, Analytics and Digital Transformation, which can be delivered using
on-site
and offshore resources.
Our IT staffing segment combines technical expertise with business process experience in a broad range of staffing services in digital and mainstream technologies, which can be delivered onshore as well as offshore. Our digital technology stack includes data management and analytics, cloud, mobility, social and automation. Our mainstream technologies include business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; and
e-Business
solutions. We work with businesses and institutions with significant
IT-spend
and recurring staffing needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. In late 2023, we expanded our service offerings to include engineering staffing services. Substantially all of our revenue is recognized over time.
The following table depicts the disaggregation of our revenues by contract type and operating segment:
 
    
Years Ended December 31,
  
    
2024
     
2023
     
2022
  
    
(Amounts in thousands)
  
Data and Analytics Services Segment
         
Time-and-material
Contracts
    $ 24,485      $ 25,307      $ 26,911  
Fixed-price Contracts
      12,140        9,051        13,683  
  
 
 
     
 
 
     
 
 
  
Subtotal Data and Analytics Services
   
$
36,625
 
   
$
34,358
 
   
$
40,594
 
  
 
 
     
 
 
     
 
 
  
IT Staffing Services Segment
         
Time-and-material
Contracts
    $  162,182      $  166,740      $  201,644  
Fixed-price Contracts
      136        —         —   
  
 
 
     
 
 
     
 
 
  
Subtotal IT Staffing Services
   
$
162,318
 
   
$
166,740
 
   
$
201,644
 
  
 
 
     
 
 
     
 
 
  
Total Revenues
   
$
198,943
 
   
$
201,098
 
   
$
242,238
 
  
 
 
     
 
 
     
 
 
  
The Company had two clients (CGI = 14.5% and Allegis = 10.7%) that exceeded 10% of total revenues in 2024. In 2023 and 2022, the Company had one client (CGI = 22.5% and 22.2%, respectively) that exceeded 10% of total revenues. Additionally, CGI accounted for 27.0% and 27.0% of the Company’s accounts receivable balance at December 31, 2024 and 2023, respectively.
 
The Company’s top ten clients represented approximately 54%, 53% and 53% of total revenues in 2024, 2023 and 2022, respectively. The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers:
 
    
Years Ended December 31,
  
    
2024
     
2023
     
2022
  
    
(Amounts in thousands)
  
United States
    $  195,455      $  197,246      $  236,187  
Canada
      1,041        2,474        4,215  
India and Other
      2,447        1,378        1,836  
  
 
 
     
 
 
     
 
 
  
Total
   
$
198,943
 
   
$
201,098
 
   
$
242,238
 
  
 
 
     
 
 
     
 
 
  
Contract assets, shown as unbilled receivables in the Consolidated Balance Sheets, primarily relate to the right to consideration for work completed, but not billed at the reporting date on contracts with customers. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities, shown as deferred revenue in the Consolidated Balance Sheets, primarily relate to contracts where advance payments or deposits have been received, but performance obligations have not yet been satisfied and revenue has not been recognized.
The following table presents the Company’s net accounts receivable from customers, contract assets and contract liabilities:
 
    
December 31,
  
    
2024
     
2023
  
    
(Amounts in thousands)
  
Receivables from contracts, beginning of year
    $  22,556      $  33,603  
Receivables from contracts, end of year
    $ 23,845      $ 22,556  
Contract assets, beginning of year
    $ 7,259      $ 8,719  
Contract assets, end of year
    $ 7,598      $ 7,259  
Contract liabilities, beginning of year
    $ 684      $ 207  
Contract liabilities, end of year
    $ 329      $ 684  
As the majority of our contracts are one year or less when considering cancellation options, we have utilized the optional exemption under ASC
606-10-50-14
to not disclose information about the remaining performance obligations for contracts which have original expected durations of one year or less.