SEGMENT AND GEOGRAPHIC DATA

12 Months Ended

Dec. 31, 2020

Segment Reporting

The Company operates in three reportable segments: the Hudson regional businesses of Americas, Asia Pacific, and Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, investor relations, legal, accounting, tax and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them, and have been allocated to the segments as management service expenses, and are included in the segments’ non-operating other income (expense). Segment information is presented in accordance with ASC 280, “Segments Reporting.” This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S.

GAAP. Accounts receivable and long-lived assets are the only significant assets separated by segment for internal reporting purposes. The following information is presented net of discontinued operations. For more information see Note 5.


	Americas		Asia Pacific		Europe		Corporate		Inter-segment elimination		Total
For the Year Ended December 31, 2020
Revenue, from external customers	$	10,866	$	75,633	$	14,949	$	—	$	—	$	101,448
Inter-segment revenue	97		6		—		—		(103)		—
Total revenue	$	10,963	$	75,639	$	14,949	$	—	$	(103)	$	101,448
Adjusted net revenue, from external customers (a)	$	9,598	$	19,814	$	9,669	$	—	$	—	$	39,081
Inter-segment adjusted net revenue	97		6		(102)		—		(1)		—
Total adjusted net revenue	$	9,695	$	19,820	$	9,567	$	—	$	(1)	$	39,081



EBITDA (loss) (b)	$	(1,044)	$	2,877	$	481	$	(2,992)	$	—	$	(678)
Depreciation and amortization	(99)		(51)		(24)		(5)		—		(179)
Interest income, net	—		2		—		147		—		149
Intercompany interest (expense) income, net	—		(322)		—		322		—		—
Income (loss) from continuing operations before income taxes	$	(1,143)	$	2,506	$	457	$	(2,528)	$	—	$	(708)
PPP Loan forgiveness	$	1,326	$	—	$	—	$	—	$	—	$	1,326
Provision for (benefit from) income taxes	$	35	$	552	$	(83)	$	31	$	—	$	535
As of December 31, 2020
Accounts receivable, net	$	3,177	$	7,580	$	2,690	$	(2)	$	—	$	13,445
Long-lived assets, net of accumulated depreciation and amortization	$	3,508	$	63	$	27	$	5	$	—	$	3,603
Total assets	$	8,316	$	14,651	$	7,917	$	14,502	$	—	$	45,386


	Americas		Asia Pacific		Europe		Corporate		Inter-segment elimination		Total
For the Year Ended December 31, 2019
Revenue, from external customers	$	13,565	$	61,438	$	18,808	$	—	$	—	$	93,811
Inter-segment revenue	74		—		2		—		(76)		—
Total revenue	$	13,639	$	61,438	$	18,810	$	—	$	(76)	$	93,811
Adjusted net revenue, from external customers (a)	$	12,291	$	21,177	$	10,098	$	—	$	—	$	43,566
Inter-segment adjusted net revenue	72		(69)		3		—		(6)		—
Total adjusted net revenue	$	12,363	$	21,108	$	10,101	$	—	$	(6)	$	43,566



EBITDA (loss) (b)	$	60	$	2,194	$	84	$	(4,252)	$	—	$	(1,914)
Depreciation and amortization	(18)		(39)		(23)		(5)		—		(85)
Interest income, net	—		(4)		—		621		—		617
Intercompany interest (expense) income, net	—		(390)		—		390		—		—
Income (loss) from continuing operations before income taxes	$	42	$	1,761	$	61	$	(3,246)	$	—	$	(1,382)
(Benefit from) provision for income taxes	$	(277)	$	378	$	24	$	(665)	$	—	$	(540)
As of December 31, 2019
Accounts receivable, net	$	2,101	$	6,931	$	3,729	$	34	$	—	$	12,795
Long-lived assets, net of accumulated depreciation and amortization	$	33	$	104	$	38	$	11	$	—	$	186
Total assets	$	4,245	$	12,461	$	7,336	$	22,662	$	—	$	46,704

(a) Adjusted net revenue are net of the Direct contracting costs and reimbursed expenses caption on the Consolidated Statements of Operations. Direct contracting costs and reimbursed expenses include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. The region where services are provided, the mix of RPO recruitment and contracting, and the functional nature of the staffing services provided can affect operating income and EBITDA. The salaries, commissions, payroll taxes, and employee benefits related to recruitment professionals are included under the caption “Salaries and related” in the Consolidated Statements of Operations.

(b)SEC Regulation S-K 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company’s operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company’s profitability.

Geographic Data Reporting

A summary of revenues for the years ended December 31, 2020 and 2019 and net assets by geographic area as of December 31, 2020 and 2019 from continuing operations were as follows:


Information by geographic region	Australia		United Kingdom		United States		Other		Total
For the Year Ended December 31, 2020
Revenue (a)	$	68,039	$	12,930	$	9,595	$	10,884	$	101,448
For the Year Ended December 31, 2019
Revenue (a)	$	53,274	$	16,864	$	12,369	$	11,304	$	93,811
As of December 31, 2020
Long-lived assets, net (b)	$	22	$	27	$	3,512	$	42	$	3,603
Net assets	$	5,384	$	3,286	$	19,169	$	6,441	$	34,280
As of December 31, 2019
Long-lived assets, net (b)	$	34	$	38	$	45	$	69	$	186
Net assets	$	4,001	$	2,332	$	24,007	$	5,694	$	36,034

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.

(b) Comprised of property and equipment, intangible and goodwill, net of accumulated depreciation and amortization.