Revenues

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues

Revenues

All revenues were generated within the United States of America.

The table below presents total revenues by contract type for the following periods:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Time and materials	$	23,377	$	21,122	$	41,337	$	48,281
Firm fixed price	11,639		12,577		21,685		22,977
Cost-reimbursable	4,767		4,760		9,882		9,355
Total revenues	$	39,783	$	38,459	$	72,904	$	80,613

The majority of the Company’s revenue is recognized over time. Revenue derived from contracts that recognize revenue at a point in time was insignificant for all periods presented.

The table below summarizes the activity in the allowance for expected credit losses:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Beginning balance	$	171	$	980	$	230	$	98
Additions	73		675		73		1,557
Write-offs	(117)		—		(176)		—
Ending balance	$	127	$	1,655	$	127	$	1,655

Concentration of Risk

Revenue earned from customers contributing in excess of 10% of total revenues are presented in the tables below for the following periods:

	Three Months Ended June 30, 2024				Six Months Ended June 30, 2024
	Total		Percent of total revenues		Total		Percent of total revenues
Customer A	$	5,305	13	%	$	12,418	17	%
Customer B	5,832		15	%	12,182		17	%
Customer C	4,877		12	%	9,471		13	%
Customer D(1)	—		—	%	—		—	%
All others	23,769		60	%	38,833		53	%
Total revenues	$	39,783	100	%	$	72,904	100	%

	Three Months Ended June 30, 2023				Six Months Ended June 30, 2023
	Total		Percent of total revenues		Total		Percent of total revenues
Customer A	$	7,360	19	%	$	16,243	20	%
Customer B	5,027		13	%	11,790		15	%
Customer C	5,856		15	%	10,524		13	%
Customer D(1)	5,004		13	%	9,226		11	%
All others	15,212		40	%	32,830		41	%
Total revenues	$	38,459	100	%	$	80,613	100	%

(1) Customers that contributed in excess of 10% of consolidated revenues in any period presented have been included in all periods presented for comparability.

Contract Balances

The table below presents the contract assets and contract liabilities included on the consolidated balance sheets for the following periods:

	June 30, 2024		December 31, 2023
Contract assets	$	1,041	$	4,822
Contract liabilities	$	3,496	$	879

The change in contract assets between December 31, 2023 and June 30, 2024 was primarily driven by invoices being issued for services previously rendered. The change in contract liability balances between December 31, 2023 and June 30, 2024 was primarily driven by upfront payments for services yet to be rendered to customers. Revenue recognized in the six months ended June 30, 2024 that was included in the contract liability balance as of December 31, 2023 was $0.9 million.

When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimate has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment in the consolidated statements of operations. Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results.

The following table summarizes the impact of the net estimates at completion (“EAC”) adjustments on the Company’s operating results:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net EAC Adjustments, before income taxes	$	(104)	$	(1,631)	$	(344)	$	365
Net EAC Adjustments, net of income taxes	$	(82)	$	(1,288)	$	(271)	$	288
Net EAC Adjustments, net of income taxes, per diluted share	$	—	$	(0.01)	$	—	$	—

Remaining Performance Obligations

The Company includes in its computation of remaining performance obligations customer orders for which it has accepted signed sales orders and generally includes the funded and unfunded components of contracts that have been awarded. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $82.2 million. The Company expects to recognize approximately 93% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.