ACQUISITIONS (Tables)

9 Months Ended

Sep. 29, 2024

Schedule of Business Acquisitions, by Acquisition

The final purchase price has been allocated to the assets acquired and liabilities as follows (in thousands):


Accounts receivable	$	3,476
Prepaid expenses and other assets	72
Property and equipment, net	145
Right-of-use asset - operating lease	141
Intangible assets	11,760
Goodwill (no deductible tax basis)	3,400
Current liabilities assumed	(2,621)
Lease liabilities - operating leases	(85)
Total net assets acquired	$	16,288

Cash	$	6,800

Hold back, working capital*	350
Hold back, indemnities*	850
Working capital adjustment*	679
Fair value of contingent consideration	7,609
Total fair value of consideration transferred for acquired business	$	16,288
*Included in Other current liabilities as of December 31, 2023

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The allocation of the intangible assets is as follows (in thousands):


	Estimated Fair Value		Estimated Useful Lives
Covenants not to compete	$	356	5 years
Client partner list	11,234		10 years
Computer software	170		5 years
Total	$	11,760

Business Acquisition, Pro Forma Information

The Company estimates what would have been reported if the revenues and net income of the Arroyo Consulting acquisition had taken place on the first day of Fiscal 2023 (in thousands, except income per share):


	Thirteen Weeks Ended		Thirty-nine Weeks Ended
	October 1, 2023		October 1, 2023
Revenues	$	83,484	$	246,403
Gross profit	$	29,979	$	88,506
Net income (loss)	$	2,640	$	(10,479)
Income (loss) per share:
Basic	$	0.24	$	(0.97)
Diluted	$	0.24	$	(0.97)