Reportable Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

The Company has determined that it operates in two operating and reportable segments, Cyber & Engineering and Analytics, as the CODM reviews financial information presented for both segments on a disaggregated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

Adjusted gross margin is the primary measure of segment profitability used by the CODM to assess performance and to allocate resources to the segments. Research and development costs incurred that generate marketable intellectual property (“IP”) are added back to the gross margin to arrive at the adjusted gross margin. Certain customer contracts that generate lower gross margin (revenue less direct costs including fringe and overheard costs) than the thresholds set by the management are accepted as the work performed for these customer contracts also simultaneously generates reusable code and other IP that is used in the execution of future customer contracts that may potentially generate higher gross margin, or enhances the marketability of the products due to additional functionality or features.

The tables below present the Company’s operating segment results of operations for the following periods:

	Successor
	Year Ended December 31, 2021
	Cyber & Engineering			Analytics			Total
Revenues	$	74,879		$	70,699		$	145,578
Segment adjusted gross margin	17,480			31,756			49,236
Segment adjusted gross margin %	23		%	45		%	34		%
Research and development costs excluded from segment adjusted gross margin							(8,282)
Equity-based compensation excluded from segment adjusted gross margin							(6,886)
Operating expenses:
Selling, general and administrative							106,507
Research and development							6,033
Operating loss							(78,472)
Net increase in fair value of derivatives							33,353
Loss on extinguishment of debt							2,881
Interest expense							7,762
Loss before taxes							$	(122,468)
	Successor
	Period from May 22, 2020 through December 31, 2020
	Cyber & Engineering			Analytics			Total
Revenues	$	15,584		$	15,968		$	31,552
Segment adjusted gross margin	3,570			7,799			11,369
Segment adjusted gross margin %	23		%	49		%	36		%
Research and development costs excluded from segment adjusted gross margin							(2,694)
Operating expenses:
Selling, general and administrative							7,909
Research and development							530
Transaction expenses							10,091
Operating loss							(9,855)
Interest expense							616
Loss before taxes							$	(10,471)

The following table presents the assets by segment as of the following periods:

	Successor								Successor
	December 31, 2021								December 31, 2020
	Cyber & Engineering		Analytics		Corporate		Total		Cyber & Engineering		Analytics		Corporate		Total
Total assets	$	74,808	$	154,085	$	154,429	$	383,322	$	73,225	$	143,978	$	1,162	$	218,365

The Predecessor 2020 Period and Predecessor 2019 Period each comprise a single reportable segment. As a result, segment reporting for those periods is not presented.