Nevada
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001-14217
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88-0322261
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(State
or other jurisdiction
of
incorporation)
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(Commission
File
Number)
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(IRS
Employer
Identification
No.)
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654 N. Sam Houston Parkway E., Suite 400,
Houston, Texas
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77060-5914
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(Address
of principal executive offices)
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(Zip
Code)
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[ ]
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
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[ ]
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[ ]
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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[ ]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
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Title
of each class
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Trading
Symbol(s)
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Name of
each exchange on which registered
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Common Stock, $0.001 par value
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ENG
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The Nasdaq Stock Market LLC
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ENGlobal Corporation
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(Registrant)
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August 5, 2021
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/s/ Darren W. Spriggs
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(Date)
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Darren
W. Spriggs,
Chief Financial Officer, Treasurer
and Corporate Secretary
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For
the Three Months Ended
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For
the Six Months Ended
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||
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June
26, 2021
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June
27, 2020
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June
26, 2021
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June
27, 2020
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Revenue
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$11,079
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$17,882
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$23,528
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$37,142
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Gross
profit
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82
|
2,453
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1,086
|
5,713
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Selling, general
and administrative expenses
|
4,264
|
2,314
|
6,825
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4,447
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Operating profit
(loss)
|
(4,182)
|
139
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(5,739)
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1,266
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Net income
(loss)
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(4,256)
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68
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(4,210)
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1,169
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Three
Months Ended
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Three
Months Ended
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||||||
(amounts in
thousands)
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June
26, 2021
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June
27, 2020
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||||||
Segment
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Total
Revenue
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% of
Total Revenue
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Gross
Profit Margin
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Operating
Profit Margin
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Total
Revenue
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% of
Total Revenue
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Gross
Profit Margin
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Operating
Profit Margin
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Commercial
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$9,157
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82.7%
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(2.2)%
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(32.9)%
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$14,803
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82.8%
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12.9%
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7.3%
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Government
Services
|
1,922
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17.3%
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14.7%
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4.9%
|
3,079
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17.2%
|
17.6%
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12.8%
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Consolidated
|
11,079
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100.0%
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0.7%
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(37.7)%
|
17,882
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100.0%
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13.7%
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0.8%
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Six
Months Ended
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Six
Months Ended
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||||||
(amounts in
thousands)
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June
26, 2021
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June
27, 2020
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||||||
Segment
|
Total
Revenue
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% of
Total Revenue
|
Gross
Profit Margin
|
Operating
Profit Margin
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Total
Revenue
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% of
Total Revenue
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Gross
Profit Margin
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Operating
Profit Margin
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|
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Commercial
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$19,206
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81.6%
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3.7%
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(17.7)%
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$31,313
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84.3%
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15.2%
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9.9%
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Government
Services
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4,322
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18.4%
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8.6%
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(0.6)%
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5,829
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15.7%
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16.4%
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10.9%
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Consolidated
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23,528
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100.0%
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4.6%
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(24.4)%
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37,142
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100.0%
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15.4%
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3.4%
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(amounts in
thousands)
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As
of
June
26, 2021
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As
of
December
26, 2020
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Cash
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$29,175
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$13,706
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Working
capital
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28,691
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14,039
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For
the Three Months Ended
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For
the Six Months Ended
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||
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June
26, 2021
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June
27, 2020
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June
26, 2021
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June
27, 2020
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Operating
revenues
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$11,079
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$17,882
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$23,528
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$37,142
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Operating
costs
|
10,997
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15,429
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22,442
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31,429
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Gross
profit
|
82
|
2,453
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1,086
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5,713
|
|
|
|
|
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Selling, general
and administrative expenses
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4,264
|
2,314
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6,825
|
4,447
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Operating
profit (loss)
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(4,182)
|
139
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(5,739)
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1,266
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Other
income (expense):
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Other income,
net
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6
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1
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1,690
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2
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Interest expense,
net
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(57)
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(36)
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(115)
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(41)
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Income
(loss) from operations before income taxes
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(4,233)
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104
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(4,164)
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1,227
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Provision
for federal and state income taxes
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23
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36
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46
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58
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Net
income (loss)
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(4,256)
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68
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(4,210)
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1,169
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Basic
and diluted income (loss) per common share:
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$(0.14)
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$0.00
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$(0.15)
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$0.04
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Basic
and diluted weighted average shares used in computing income (loss)
per share:
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29,599
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27,413
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28,573
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27,413
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June
26, 2021
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December
26, 2020
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ASSETS
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Current
Assets:
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Cash
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$29,175
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$13,706
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Trade receivables,
net of allowances of $1,636 and $386
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6,572
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7,789
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Prepaid expenses
and other current assets
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398
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891
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Payroll taxes
receivable
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1,676
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—
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Contract
assets
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2,900
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4,090
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Total Current
Assets
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40,721
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26,476
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Property
and equipment, net
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1,135
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1,263
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Goodwill
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720
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720
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Other
assets
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Right of use
asset
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1,210
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1,628
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Deposits and other
assets
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402
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351
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Total Other
Assets
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1,612
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1,979
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Total
Assets
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$44,188
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$30,438
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LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
Liabilities:
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Accounts
payable
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$1,974
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$2,138
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Accrued
compensation and benefits
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2,479
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3,048
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Current portion of
leases
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1,180
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1,541
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Contract
liabilities
|
560
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1,258
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Current portion of
note
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4,974
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3,707
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Current portion of
deferred payroll tax
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519
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—
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Other current
liabilities
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344
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745
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Total Current
Liabilities
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12,030
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12,437
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Deferred
payroll tax
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519
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1,037
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Long-term
debt
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1,600
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2,733
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Long-term
leases
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467
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608
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Total
Liabilities
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14,616
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16,815
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Commitments
and Contingencies (Note 8)
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Stockholders’
Equity:
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Common stock -
$0.001 par value; 75,000,000
shares authorized; 35,134,564 shares issued and outstanding at June
26, 2021 and 27,560,686 shares issued and outstanding at December
26, 2020
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35
|
28
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Additional paid-in
capital
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57,309
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37,157
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Accumulated
deficit
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(27,772)
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(23,562)
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Total
Stockholders’ Equity
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29,572
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13,623
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Total Liabilities
and Stockholders’ Equity
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$44,188
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$30,438
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For
the Six Months Ended
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June
26, 2021
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June
27, 2020
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Cash
Flows from Operating Activities:
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Net income
(loss)
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$(4,210)
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$1,169
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Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
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Depreciation and
amortization
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187
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205
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Share-based
compensation expense
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107
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132
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Changes in current
assets and liabilities:
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Trade accounts
receivable
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1,217
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1,569
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Contract
assets
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1,190
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(1,256)
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Other current
assets
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(1,234)
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344
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Accounts
payable
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(164)
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(166)
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Accrued
compensation and benefits
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(569)
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977
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Contract
liabilities
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(698)
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(3,109)
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Income taxes
payable
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(54)
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219
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Other current
liabilities, net
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(347)
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(192)
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Net cash used in
operating activities
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$(4,575)
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$(108)
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Cash
Flows from Investing Activities:
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Property and
equipment acquired
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(88)
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(126)
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Net cash used in
investing activities
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$(88)
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$(126)
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Cash
Flows from Financing Activities:
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Issuance of common
stock, net
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20,052
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—
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Payments on finance
leases
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(55)
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(42)
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Proceeds from PPP
loan
|
—
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4,925
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Interest on PPP
loan
|
25
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—
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Proceeds from
revolving credit facility
|
110
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1,445
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Net cash provided
by (used in) financing activities
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$20,132
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$6,328
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Net change in
cash
|
15,469
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6,094
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Cash
at beginning of period
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13,706
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8,307
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Cash
at end of period
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$29,175
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$14,401
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Supplemental
disclosure of cash flow information:
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Cash paid during
the period for interest
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$115
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$12
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Right of use assets
obtained in exchange for new operating lease liability
|
$256
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$1,182
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Cash paid during
the period for income taxes (net of refunds)
|
$151
|
$86
|
Debt issuance
costs
|
$—
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$131
|