Note 14 - Segment Information

9 Months Ended

Oct. 02, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14.   Segment Information

The Company follows ASC280, “Segment Reporting,” which establishes standards for companies to report information about operating segments, geographic areas and major customers. The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies (see Note 1 to the Company’s Condensed Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended January 2, 2021).

Segment operating income (loss) includes selling, general and administrative expenses directly attributable to that segment as well as charges for allocating corporate costs to each of the operating segments. The following tables reflect the results of the reportable segments consistent with the Company’s management system:

Thirteen Week Period Ended October 2, 2021	Engineering			Specialty Health Care		Information Technology		Corporate			Total
Revenue	$	16,482		$	19,646	$	9,343	$	-		$	45,471
Cost of services		12,694			14,115		6,448		-			33,257
Gross profit		3,788			5,531		2,895		-			12,214
Selling, general and administrative		3,816			4,393		2,123		-			10,332
Depreciation and amortization of property and equipment		120			99		31		-			250
Amortization of acquired intangible assets		6			-		-		-			6
Tax credit professional fees		-			-		-		50			50
Gain on sale of assets		(2,151	)		-		-		-			(2,151	)
Operating income (loss)	$	1,997		$	1,039	$	741	$	(50	)	$	3,727
Total assets as of October 2, 2021	$	29,020		$	26,483	$	8,560	$	6,228		$	70,291
Capital expenditures	$	16		$	168	$	35	$	139		$	358

Thirteen Week Period Ended September 26, 2020	Engineering			Specialty Health Care			Information Technology			Corporate		Total
Revenue	$	15,087		$	9,015		$	7,459		$	-	$	31,561
Cost of services		10,674			6,724			5,343			-		22,741
Gross profit		4,413			2,291			2,116			-		8,820
Selling, general and administrative		3,359			2,989			2,258			-		8,606
Depreciation and amortization of property and equipment		172			82			38			-		292
Amortization of acquired intangible assets		80			-			-			-		80
Operating income (loss)	$	802		$	(780	)	$	(180	)	$	-	$	(158	)
Total assets as of September 26, 2020	$	34,961		$	14,349		$	7,858		$	5,385	$	62,553
Capital expenditures	$	(37	)	$	7		$	8		$	271	$	249

Thirty-Nine Week Period Ended October 2, 2021	Engineering			Specialty Health Care		Information Technology		Corporate			Total
Revenue	$	47,882		$	63,723	$	27,348	$	-		$	138,953
Cost of services		36,875			47,564		19,184		-			103,623
Gross profit		11,007			16,159		8,164		-			35,330
Selling, general and administrative		10,512			12,858		6,026		-			29,396
Depreciation and amortization of property and equipment		428			260		87		-			775
Amortization of acquired intangible assets		95			-		-		-			95
Tax credit professional fees		-			-		-		170			170
Gain on sale of assets		(2,151	)		-		-		-			(2,151	)
Operating income (loss)	$	2,123		$	3,041	$	2,051	$	(170	)	$	7,045
Total assets as of October 2, 2021	$	29,020		$	26,483	$	8,560	$	6,228		$	70,291
Capital expenditures	$	55		$	235	$	44	$	165		$	499

Thirty-Nine Week Period Ended September 26, 2020	Engineering			Specialty Health Care			Information Technology			Corporate		Total
Revenue	$	43,288		$	41,896		$	24,062		$	-	$	109,246
Cost of services		30,673			33,037			17,370			-		81,080
Gross profit		12,615			8,859			6,692			-		28,166
Selling, general and administrative		10,073			10,682			7,082			-		27,837
Depreciation and amortization of property and equipment		380			235			78			-		793
Amortization of acquired intangible assets		240			-			-			-		240
Write-off of receivables and professional fees incurred related to arbitration		8,397			-			-			-		8,397
Operating loss	$	(6,575	)	$	(2,058	)	$	(468	)	$	-	$	(9,101	)
Total assets as of September 26, 2020	$	34,961		$	14,349		$	7,858		$	5,385	$	62,553
Capital expenditures	$	(7	)	$	17		$	43		$	347	$	400

The Company derives a majority of its revenue from offices in the United States. Revenue reported for each operating segment are all from external customers. The Company is domiciled in the United States and its segments operate in the United States, Canada, Puerto Rico and Serbia. Revenue by geographic area for the thirteen and thirty-nine week periods ended October 2, 2021 and September 26, 2020 are as follows:

	Thirteen Week Periods Ended				Thirty-Nine Week Periods Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Revenue
U. S.	$	41,584	$	25,628	$	124,337	$	91,793
Canada		1,912		3,543		8,371		11,186
Puerto Rico		1,245		1,433		4,128		4,018
Serbia		730		957		2,117		2,249
	$	45,471	$	31,561	$	138,953	$	109,246

Total assets by geographic area as of the reported periods are as follows:

	October 2, 2021		January 2, 2021
Total assets
U. S.	$	63,534	$	56,308
Canada		1,977		7,067
Puerto Rico		1,393		1,483
Serbia		3,387		3,481
	$	70,291	$	68,339