COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 7—COMMITMENTS AND CONTINGENCIES

The Company is subject to contingencies which arise through the ordinary course of business.  All material liabilities of which management is aware are properly reflected in the financial statements at September 30, 2015 and December 31, 2014.

STA Consulting Contingent Consideration

As of September 30, 2015, we have recorded a liability of $1.6 million representing the estimated fair value of contingent consideration related to the acquisition of STA Consulting and is classified as current and included in accrued expenses on the consolidated balance sheet. During the nine months ended September 30, 2015, the Company paid $1.7 million related to 2014 performance and the remaining contingent liability is expected to be paid in the first quarter of 2016.  The Company also increased the contingent consideration liability by $0.3 million for the nine months ended September 30, 2015 based on the latest estimates of future profit level due to completion of new projects.

CCI Contingent Consideration

As of September 30, 2015, we have recorded a liability of $1.0 million representing the estimated fair value of contingent consideration related to the acquisition of CCI Consulting, of which $0.5 million is classified as current and included in accrued expenses on the consolidated balance sheet.  The Company paid $0.6 million in April of 2015 related to 2014 performance and the remaining contingent liability is expected to be paid in the second quarter of 2016 and second quarter of 2017.  The Company also increased the contingent consideration liability by $0.1 million in the third quarter of 2015 based on the latest estimates of future profit level due to completion of new projects.

Saugatuck Contingent Consideration

As of September 30, 2015, we have recorded a liability of $1.0 million representing the estimated fair value of contingent consideration related to the acquisition of Saugatuck, of which $0.2 million is classified as current and included in accrued expenses on the consolidated balance sheet.