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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left; margin-left: 27.1pt;">4. Acquisition</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">On September 20, 2017, GSE, through its wholly-owned subsidiary GSE Performance Solutions, Inc. (Performance Solutions), acquired 100% of the capital stock of Absolute Consulting, Inc. (Absolute) for $8.8 million pursuant to the Stock Purchase Agreement by and among Performance Solutions and the sellers of Absolute. The purchase price was subject to a customary working capital adjustment resulting in total consideration of $9.5 million. <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">An indemnification escrow of $1.0 million was funded from the cash paid to the sellers and is available to GSE and Performance Solutions to satisfy indemnification claims until September 20, 2019. </font>The acquisition of Absolute was completed on an all-cash transaction basis.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Absolute is a provider of technical consulting and staffing solutions to the global nuclear power industry. Located in Navarre, Florida, Absolute has established long-term relationships with blue-chip customers primarily in the nuclear power industry. The acquisition of Absolute is expected to strengthen the Company's global leadership in nuclear training and consulting solutions, add new capacities to our technical consulting and staffing solutions offerings and bring highly complementary customers, while deepening relationships with existing clients.</div><div><br /></div><div style="margin-bottom: 6pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table summarizes the consideration paid to acquire Absolute and the fair value of the assets acquired and liabilities assumed at the date of the transaction.</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left;">(in thousands)</div><div> </div><div> </div></td><td colspan="2" style="width: 36.73%; 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text-align: justify;">The goodwill is primarily attributable to the additional capacities to offer broader solutions to new and existing customers and the expected enhanced cost and growth synergies as a result of the acquisition. The total amount of goodwill that is expected to be tax deductible is $2.8 million. All of the $2.8 million of goodwill was assigned to our Nuclear Industry Training and Consulting segment.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The fair value of the assets acquired includes gross trade receivables of $5.1 million, which was collected in full after acquisition. GSE did not acquire any other class of receivable as a result of the acquisition of Absolute.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company identified $2.6 million of other intangible assets, including customer relationships and trademarks/names, with amortization periods of three to 10 years. The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 25.25%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Intangible Assets</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 43.26%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;"> Weighted average amortization period</div></td><td style="width: 4.82%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.86%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;"> Fair Value</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 43.26%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: center;"> (in years)</div></td><td style="width: 4.82%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.86%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: center;"> (in thousands)</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Customer relationships</div></td><td style="width: 4.81%; vertical-align: middle;"> </td><td style="width: 43.26%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">10</div></td><td style="width: 4.82%; vertical-align: middle;"> </td><td style="width: 3.87%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">$</div></td><td style="width: 17.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,856</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Trademarks/Names</div></td><td style="width: 4.81%; vertical-align: middle;"> </td><td style="width: 43.26%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">3</div></td><td style="width: 4.82%; vertical-align: middle;"> </td><td style="width: 3.87%; vertical-align: middle; border-bottom: #000000 1px solid;"> </td><td style="width: 17.99%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">713</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">Total</div></td><td style="width: 4.81%; vertical-align: middle;"> </td><td style="width: 43.26%; vertical-align: middle;"> </td><td style="width: 4.82%; vertical-align: middle;"> </td><td style="width: 3.87%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">$</div></td><td style="width: 17.99%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,569</div></td></tr></table><div><br /></div></div>
2569000
5121000
5121000
9521000
117000
118000
105000
29000
677000
690000
12410000
22887000
20071000
22765000
19111000
11763000
21747000
21625000
-7661000
-122000
0
0
0
0
3240000
3240000
2780000
2780000
30000000
30000000
21215884
21024395
0.01
0.01
210000
212000
19425484
19616973
21024395
-1598911
21215884
-1598911
-1541000
-173000
0.43
0.57
0.258
0.267
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;">Basis of Presentation</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The consolidated interim financial statements included herein have been prepared by GSE Systems, Inc. (the Company, GSE, we, us, or our) and are unaudited. In the opinion of the Company's management, all adjustments and reclassifications of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. The results of operations for interim periods are not necessarily an indication of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 16, 2018.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company has two reportable segments as follows:</div><div><br /></div><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27.1pt; vertical-align: top; align: right;">●</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Performance Improvement Solutions (approximately 43% of revenue)</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Our Performance Improvement Solutions segment primarily encompasses our technical engineering and power plant high-fidelity simulation solutions and interactive computer based tutorials/simulation focused on the process industry. This segment includes various simulation products, engineering services, and operation training systems delivered across the industries we serve: primarily nuclear and fossil fuel power generation, as well as the process industries. Our simulation solutions include the following: (1) simulation software and services, including operator training systems, for the nuclear power industry, (2) simulation software and services, including operator training systems, for the fossil power industry, and (3) simulation software and services for the process industries used to teach fundamental industry processes and control systems to newly hired employees and for ongoing workforce development and training. GSE and its predecessors have been providing these services since 1976.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27.1pt; vertical-align: top; align: right;">●</td><td style="width: auto; vertical-align: top; text-align: left;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Nuclear Industry Training and Consulting (approximately 57% of revenue)</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Nuclear Industry Training and Consulting provides highly specialized and skilled nuclear operations instructors, procedure writers, technical engineers, and other consultants to the nuclear power industry. These employees work at our clients' facilities under client direction. Examples of these highly skilled positions are senior reactor operations instructors, procedure writers, project managers, work management specialists, planners and training material developers. This business is managed through the Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the Company's product and service portfolio. GSE and its predecessors have been providing these services since 1997.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Financial information about the two business segments is provided in Note 18 of the accompanying condensed consolidated financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. The Company's most significant estimates relate to revenue recognition on contracts with customers, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">allowance for doubtful accounts, </font>product warranties, valuation of goodwill and intangible assets acquired, valuation of long-lived assets to be disposed of, valuation of contingent consideration issued in business acquisitions, valuation of stock based compensation awards, and the recoverability of deferred tax assets. Actual results could differ from these estimates and those differences could be material.</div><div><br /></div></div>
0
14543000
12592000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">SDB contracts are typically fixed-priced, and we receive payments based on a billing schedule as established in our contracts. The transaction price for software contracts is generally fixed. Fees for software are normally due in advance of or shortly after delivery of the software. Fees for PCS are normally paid in advance of the service period. For Training and Consulting Services, the customers are generally billed on a regular basis, such as weekly, biweekly or monthly, for services provided. Contract liability, which we classify as billing in excess of revenue earned, relates to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table reflects the balance of contract liabilities and the revenue recognized in the reporting period that was included in the contract liabilities from contracts with customers:</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">in thousands</font>)</div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 48.74%; vertical-align: bottom;"> </td><td style="width: 4.58%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.05%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31, 2018</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.05%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31, 2017</div></td></tr><tr><td style="width: 48.74%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Billings in excess of revenue earned (BIE)</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">12,592</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">14,543</div></td></tr><tr><td style="width: 48.74%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Revenue recognized in the period from amounts included in BIE at the beginning of the period</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5,115</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"> </td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">N/A</div></td></tr></table><div><br /></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For an SDB contract, we generally have two main performance obligations: the training simulator build and PCS. The training simulator build generally includes hardware, software, and labor. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method. In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For the three months ended March 31, 2018, the Company did not recognize significant revenue related to performance obligations satisfied in previous periods.</div></div>
5115000
22895000
16342000
22852000
43000
17997000
12220000
655000
655000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table represents a disaggregation of revenue by type of goods or services for the three months ended March 31, 2018 and 2017, along with the reportable segment for each category:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">in thousands</font>)</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td colspan="5" style="width: 45.76%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three Months Ended March 31,</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td colspan="2" style="width: 20.75%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td colspan="2" style="width: 20.75%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017<sup>(1)</sup></div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left;">Performance Improvement Solutions</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">System Design and Build</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7,495</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7,319</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Software</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">869</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">456</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Training and Consulting Services</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,537</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,895</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left;">Nuclear Industry Training and Consulting</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Training and Consulting Services</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">12,994</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,672</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td><td style="width: 15.61%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td><td style="width: 15.61%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Total revenue</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22,895</div></td><td style="width: 4.26%; vertical-align: middle;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">16,342</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"><sup>(1)</sup> Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.</div></div>
0.0225
P3Y
25000000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Prepaid expenses and other current assets consist of the following:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31,</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td colspan="2" style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td style="width: 4.37%; vertical-align: top;"> </td><td style="width: 15.09%; vertical-align: bottom;"> </td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: top;"> </td><td style="width: 19.45%; vertical-align: bottom;"> </td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Inventory</div></td><td style="width: 4.37%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">733</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">755</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Income taxes receivable</div></td><td style="width: 4.37%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">363</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"> </td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">418</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Prepaid expenses</div></td><td style="width: 4.37%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">628</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"> </td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">549</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Other current assets</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">956</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,073</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total prepaid expenses and other current assets</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,680</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,795</div></td></tr></table><div><br /></div></div>
0
-90000
7167000
6336000
6605000
7167000
-269000
-241000
6926000
103000
76000
2018-12-31
-242000
-272000
242000
272000
272000
242000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27pt; vertical-align: top; font-weight: bold; align: right;">12.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Derivative Instruments</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company utilizes forward foreign currency exchange contracts to manage market risks associated with the fluctuations in foreign currency exchange rates and minimize credit exposure by limiting counterparties to nationally recognized financial institutions.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">As of March 31, 2018, the Company had foreign exchange contracts outstanding of approximately 162.5 million Japanese Yen and 0.2 million Australian Dollars at fixed rates. The contracts expire on various dates through December 2018. At December 31, 2017, the Company had contracts outstanding of approximately 162.5 million Japanese Yen, 24,000 Euro, and 0.2 million Australian Dollars at fixed rates.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company has not designated the foreign exchange contracts as hedges and recorded the estimated net fair values of the contracts on the consolidated balance sheets as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 17.4%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.61%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31,</div></td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 17.4%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.61%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.81%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.6%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.21%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Asset derivatives</div></td><td style="width: 3.81%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.6%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.21%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 18pt;">Prepaid expenses and other current assets</div></td><td style="width: 3.81%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.6%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.21%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 18pt;">Net fair value</div></td><td style="width: 3.81%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.6%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The changes in the fair value of the foreign exchange contracts are included in loss on derivative instruments, net, in the consolidated statements of operations.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The foreign currency denominated contract receivables, billings in excess of revenue earned, and subcontractor accruals that are related to the outstanding foreign exchange contracts are remeasured at the end of each period into the functional currency using the current exchange rate at the end of the period. The gain or loss resulting from such remeasurement is also included in loss on derivative instruments, net, in the consolidated statements of operations.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For the three months ended March 31, 2018 and 2017, the Company recognized a net loss on its derivative instruments as outlined below:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 14.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.62%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Foreign exchange contracts - change in fair value</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(118)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(86)</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Remeasurement of related contract receivables,</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 18pt; text-indent: -7.2pt;"> and billings in excess of revenue earned</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(38)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(74)</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Loss on derivative instruments, net</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.17%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(156)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.03%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(160)</div></td></tr></table><div><br /></div><div><br /></div></div>
355000
443000
201000
201000
83000
83000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 29.5pt; vertical-align: top; font-weight: bold; align: right;">13.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Stock-Based Compensation</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company recognizes stock-based compensation expense for all equity-based awards issued to employees, directors and non-employees that are expected to vest.  Stock-based compensation expense is based on the fair value of awards as of the grant date.  The Company recognized $595,000 and $614,000 of stock-based compensation expense related to equity awards for the three months ended March 31, 2018 and 2017, respectively, under the fair value method. In addition to the stock-based compensation expense recognized, the Company also recognized $32,000 and $(18,000) of expense related to the change in the fair value of cash-settled restricted stock units (RSUs) during the three months ended March 31, 2018 and 2017, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">During the three months ended March 31, 2018, the Company granted 210,092 time-based RSUs to employees with an aggregate fair value of $682,799. During the three months ended March 31, 2017, the Company granted 223,802 time-based RSUs to employees with an aggregate fair value of $783,000. A portion of the time-based RSUs vest quarterly in equal amounts over the course of eight quarters and the remainder vest annually in equal amounts over the course of three years. The fair value of the time-based RSUs is expensed ratably over the requisite service period, which ranges from one to three years.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">During the three months ended March 31, 2018 and 2017, the Company did not grant performance-based RSUs or stock options.</div><div><br /></div></div>
-0.08
-0.01
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 36pt; vertical-align: top; font-weight: bold; align: right;">3.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Basic and Diluted Loss per Common Share</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Basic loss per share is based on the weighted average number of outstanding common shares for the period.  Diluted loss per share adjusts the weighted average shares outstanding for the potential dilution that could occur if outstanding vested stock options were exercised.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The number of common shares and common share equivalents used in the determination of basic and diluted loss per share were as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands, except for share amounts)</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.48%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.85%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Numerator:</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Net loss</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,496)</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(266)</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Denominator:</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Weighted-average shares outstanding for basic loss per share</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,514,385</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,094,382</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Effect of dilutive securities:</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 25.2pt; text-indent: -7.2pt;">Stock options and restricted stock units</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,514,385</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,094,382</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Shares related to dilutive securities excluded because inclusion would be anti-dilutive</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">763,200</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">564,833</div></td></tr></table><div><br /></div><div><br /></div></div>
-0.01
-0.08
10000
68000
-0.209
-0.378
2975000
2866000
1856000
2569000
713000
1701000
1701000
0
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27pt; vertical-align: top; font-weight: bold; align: right;">11.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Fair Value of Financial Instruments</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">ASC 820, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Fair Value Measurement </font>(ASC 820), defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The levels of the fair value hierarchy established by ASC 820 are:</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Level 1:  inputs are quoted prices, unadjusted, in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify; background-color: #ffffff;">Level 2:  inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  A Level 2 input must be observable for substantially the full term of the asset or liability.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Level 3:  inputs are unobservable and reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">At March 31, 2018, and December 31, 2017, the Company considers the recorded value of certain of its financial assets and liabilities, which consist primarily of cash equivalents, accounts receivable and accounts payable, to approximate fair value based upon their short-term nature.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For the three months ended March 31, 2018, the Company did not have any transfers between fair value Level 1, Level 2 or Level 3.  The Company did not hold any non-financial assets or non-financial liabilities subject to fair value measurements on a recurring basis at March 31, 2018.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table presents assets and liabilities measured at fair value at March 31, 2018:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 16.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Quoted Prices</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">in Active Markets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">for Identical Assets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 1)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Other Observable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 2)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Unobservable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 3)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Money market funds</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,780</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,780</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Foreign exchange contracts</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total assets</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,780</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,863</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Liability awards</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total liabilities</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Money market funds at both March 31, 2018 and December 31, 2017 are included in cash and cash equivalents in the respective consolidated balance sheets.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table presents assets and liabilities measured at fair value at December 31, 2017:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 16.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Quoted Prices</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">in Active Markets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">for Identical Assets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 1)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Other Observable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 2)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Unobservable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 3)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.33%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.33%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Money market funds</div></td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,240</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,240</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Foreign exchange contracts</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total assets</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,240</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,441</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Liability awards</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(242)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(242)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Contingent consideration</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total liabilities</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(242)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,943)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table provides a roll-forward of the fair value of the contingent consideration categorized as Level 3 for the three months ended March 31, 2018:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left;">(in thousands)</div></td><td colspan="2" style="width: 32.52%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 32.52%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 27.85%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance, January 1, 2018</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 27.85%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,701</div></td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Payments made on contingent liabilities</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 27.85%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Change in fair value</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 27.85%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance, March 31, 2018</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 27.85%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr></table><div><br /></div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table provides a roll-forward of the fair value of the contingent consideration categorized as Level 3 for the three months ended March 31, 2018:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left;">(in thousands)</div></td><td colspan="2" style="width: 32.52%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 32.52%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 27.85%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance, January 1, 2018</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 27.85%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,701</div></td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Payments made on contingent liabilities</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 27.85%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Change in fair value</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 27.85%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr><tr><td style="width: 67.48%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance, March 31, 2018</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 27.85%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr></table><div><br /></div><div><br /></div></div>
254000
0
P3Y
0
83000
83000
0
0
201000
201000
0
-156000
-160000
-118000
-86000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 29.5pt; vertical-align: top; font-weight: bold; align: right;">10.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Goodwill and Intangible Assets</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company's intangible assets include amounts recognized in connection with business acquisitions, including customer relationships, trade names, non-compete agreements, and contract backlog.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company reviews goodwill for impairment annually as of December 31 and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company tests goodwill at the reporting unit level. A reporting unit is an operating segment, or one level below an operating segment, as defined by U.S. GAAP. After the acquisition of Hyperspring on November 14, 2014, the Company determined that it had two reporting units, which are the same as our two operating segments: (i) Performance Improvement Solutions; and (ii) Nuclear Industry Training and Consulting (which includes Hyperspring and Absolute).  As of March 31, 2018, and December 31, 2017, goodwill of $8.4 million related to the Nuclear Industry Training and Consulting segment. No events or circumstances occurred during the current reporting period that would indicate impairment of such goodwill.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Amortization of intangible assets other than goodwill is recognized on a straight-line basis over the estimated useful life of the intangible assets, except for contract backlog and customer relationships which are recognized in proportion to the related projected revenue streams. Intangible assets with definite lives are reviewed for impairment if indicators of impairment arise. The Company does not have any intangible assets with indefinite useful lives, other than goodwill. There were no indications of impairment of intangible assets during the current reporting period.</div><div><br /></div></div>
8431000
8431000
2819000
4898000
4122000
43000
4855000
2014
2015
1997
2011
1997
2015
-1237000
-193000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 29.5pt; vertical-align: top; font-weight: bold; align: right;">17.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Income Taxes</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-right: 0.2pt;">The following table presents the provision for income taxes and the effective tax rates:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">($ in thousands)</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 14.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.62%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Provision for income taxes</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">259</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">73</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Effective tax rate</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(20.9%)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(37.8%)</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items arising in that quarter. Tax expense in 2018 is comprised mainly of federal income tax expense, foreign income tax expense, and state taxes. Tax expense in 2017 is comprised mainly of foreign income tax expense, Alternative Minimum Tax, state taxes, and deferred tax expense relating to the tax amortization of goodwill.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Our effective tax rate was (20.9%) for the three months ended March 31, 2018. The difference in our effective tax rate and the U.S. statutory federal income tax rate of 21% was primarily due to our China subsidiary which had a taxable income for the three months ended March 31, 2018 and the accruals related to uncertain tax positions for certain foreign tax contingencies.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Because of its net operating loss carryforwards, the Company is subject to U.S. federal and state income tax examinations from the year 1997 and forward. The Company is subject to foreign tax examinations by tax authorities for years 2011 forward for Sweden, 2014 forward for China, and 2015 forward for both India and the UK.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">An uncertain tax position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not (<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">i.e.</font>, a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities that have full knowledge of all relevant information. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Interest and penalties related to income taxes are accounted for as income tax expense.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company recognizes deferred tax assets to the extent that it is believed that these assets are more likely than not to be realized. The Company has evaluated all positive and negative evidence and determined that it will continue to assess a full valuation allowance on its Swedish and U.K. net deferred assets as of March 31, 2018. The Company has determined that it is more likely than not that it will realize the benefits of its deferred taxes in the U.S, China, and India.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company recognizes the tax on GILTI as a period cost in the period the tax is incurred. Under this policy, we have not provided deferred taxes related to temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company has made an entity classification (CTB) election to treat GSE UK as a disregarded entity effective January 1, 2018. Therefore, as of January 1, 2018, GSE UK is treated as a branch of the US for tax purposes. Accordingly, GSE UK's 2018 first quarter activity has been included in the US Company's income tax provision.</div><div><br /></div><div><br /></div></div>
73000
259000
231000
-28000
363000
418000
67000
-75000
-1127000
-3279000
-1184000
647000
-4937000
4683000
12000
523000
325000
154000
2800000
0
0
2604000
2456000
27000
22000
755000
733000
600000
700000
56855000
53058000
23696000
27183000
0
1701000
0
272000
242000
1943000
272000
0
22243000
25252000
P5Y
0
5000000
5000000
4300000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27pt; vertical-align: top; font-weight: bold; align: right;">7.</td><td style="width: auto; vertical-align: top; text-align: left;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Contract Receivables</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Contract receivables represent the Company's unconditional rights to considerations due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The components of contract receivables are as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31,</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td colspan="2" style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td style="width: 4.37%; vertical-align: top;"> </td><td style="width: 15.09%; vertical-align: bottom;"> </td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: top;"> </td><td style="width: 19.45%; vertical-align: bottom;"> </td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Billed receivables</div></td><td style="width: 4.37%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">10,823</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">8,154</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Unbilled receivables</div></td><td style="width: 4.37%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">8,071</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"> </td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5,980</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Allowance for doubtful accounts</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(137)</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(137)</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total contract receivables, net</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">18,757</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">13,997</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">During April 2018, the Company invoiced $2.8 million of the unbilled amounts related to the balance at March 31, 2018.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">As of March 31, 2018 and December 31, 2017, the Company had one customer that accounted for 25.8% and 26.7%, respectively, of its consolidated contract receivables.</div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 36pt; vertical-align: top; font-weight: bold; align: right;">14.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Debt</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;">Line of Credit</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;"><u>Citizens Bank</u></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company entered into a three-year, $5.0 million revolving line of credit facility (RLOC) with Citizens Bank on December 29, 2016, to fund general working capital needs. Working capital advances bear interest of one-month LIBOR plus 2.25% per annum and letter of credit fees are 1.25% per annum. The Company is not required to maintain a restricted cash collateral account at Citizens Bank for outstanding letters of credit and working capital advances.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The maximum availability under the RLOC is subject to a borrowing base equal to 80% of eligible accounts receivable, and is reduced for any issued and outstanding letters of credit and working capital advances.  At March 31, 2018, there were no outstanding borrowings on the RLOC and two letters of credit totaling $0.7 million. The amount available at March 31, 2018, after consideration of the borrowing base, letters of credit and working capital advances was approximately $4.3 million.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The credit facility agreement is subject to standard financial covenants and reporting requirements. At March 31, 2018, the Company was in compliance with its financial covenants.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;"><u>BB&T Bank</u></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">At March 31, 2018, the Company had two letters of credit with BB&T totaling $0.6 million, which have expired and are pending release by the bank and customer.  At March 31, 2018 and December 31, 2017, the cash collateral account with BB&T totaled $0.6 million and $1.0 million, respectively. The balances were classified as restricted cash on the consolidated balance sheets.</div><div><br /></div></div>
275.0
200.0
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27pt; vertical-align: top; font-weight: bold; align: right;">6.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Contingent Consideration</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Acquisitions may include contingent consideration payments based on future financial measures of an acquired company. Under ASC 805, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Business Combinations</font>, contingent consideration is required to be recognized at fair value as of the acquisition date. We estimate the fair value of these liabilities based on financial projections of the acquired companies and estimated probabilities of achievement. At each reporting date, the contingent consideration obligation is revalued to estimated fair value and changes in fair value subsequent to the acquisition are reflected in income or expense in the consolidated statements of operations, and could cause a material impact to our operating results. Changes in the fair value of contingent consideration obligations may result from changes in discount periods and rates, changes in the timing and amount of revenue and/or earnings estimates and changes in probability assumptions with respect to the likelihood of achieving the various earn-out criteria.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">As of December 31, 2017, the remaining contingent consideration, related to our acquisition of Hyperspring in 2014 was $1.7 million, all of which was paid in January 2018. There was no contingent liability as of March 31, 2018.</div><div><br /></div></div>
-1207000
-1720000
-423000
-73000
1090000
-5528000
-266000
-1496000
-1496000
15000
-1511000
2
2
-57000
-1128000
-338000
-110000
307000
-790000
6026000
4179000
1701000
0
1701000
0
37000
37000
956000
1073000
1931000
1453000
1182000
1410000
25000
-3000
93000
-45000
-45000
5000
0
411000
406000
1701000
597000
9521000
9800000
318000
44000
0.01
0.01
0
0
0
0
0
0
2000000
2000000
2795000
2680000
549000
628000
62000
57000
1433000
1186000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 36pt; vertical-align: top; font-weight: bold; align: right;">15.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Product Warranty</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company accrues for estimated warranty costs at the time the related revenue is recognized based on historical experience and projected claims. The Company's SDB contracts generally provide a one to two-year base warranty on the systems. The portion of the warranty provision expected to be incurred within 12 months is classified as current within accrued warranty and totals $1.2 million, while the remaining $0.7 million is classified as long-term within other liabilities. The activity in the accrued warranty accounts is as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 38.54%; vertical-align: top; background-color: #ffffff;"> </td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 38.54%; vertical-align: top; background-color: #ffffff;"> </td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance, January 1, 2018</div></td><td style="width: 7.55%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.99%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,953</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Current period provision</div></td><td style="width: 7.55%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.99%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">28</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Current period claims</div></td><td style="width: 7.55%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.99%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(103)</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Currency adjustment</div></td><td style="width: 7.55%; vertical-align: top; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 30.99%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance at March 31, 2018</div></td><td style="width: 7.55%; vertical-align: top; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.99%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,883</div></td></tr></table><div><br /></div><div><br /></div></div>
1274000
1063000
4782000
5102000
18757000
13987000
-10000
13997000
18874000
-117000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated loss before income taxes:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="6" style="width: 38.69%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div></td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td colspan="6" style="width: 38.69%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td colspan="2" style="width: 16.75%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td colspan="2" style="width: 17.21%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Revenue:</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Performance Improvement Solutions</div></td><td style="width: 2.91%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">9,901</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">9,670</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Nuclear Industry Training and Consulting</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right; background-color: #ffffff;">12,994</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,672</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22,895</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">16,342</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Operating income:</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Performance Improvement Solutions</div></td><td style="width: 2.91%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(790)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(110)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Nuclear Industry Training and Consulting</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(338)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">307</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Change in fair value of contingent consideration, net</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(254)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Operating loss</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,128)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(57)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Interest income, net</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">27</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Loss on derivative instruments, net</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(156)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(160)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Other income (expense), net</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">25</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(3)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Loss before income taxes</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,237)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(193)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr></table><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Effective January 2018, and due to the acquisition of Absolute, the Performance Improvement Solutions allocated corporate overhead to the Nuclear Industry Training and Consulting segment. For the three months ended March 31, 2018 and 2017, a total of $1.2 million and $0.6 million of corporate overhead, respectively, was allocated to Nuclear Industry Training and Consulting segment. Prior period amounts were reclassified to reflect the change.</div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27.1pt; vertical-align: top; font-weight: bold; align: right;">9.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Software Development Costs, Net</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Certain computer software development costs are capitalized in the accompanying consolidated balance sheets.  Capitalization of computer software development costs begins upon the establishment of technological feasibility. Capitalization ceases and amortization of capitalized costs begins when the software product is commercially available for general release to customers. Amortization of capitalized computer software development costs is included in cost of revenue and is determined using the straight-line method over the remaining estimated economic life of the product, typically three years. On an annual basis, and more frequently as conditions indicate, the Company assesses the recovery of the unamortized software development costs by estimating the net undiscounted cash flows expected to be generated by the sale of the product. If the undiscounted cash flows are not sufficient to recover the unamortized software costs the Company will write-down the carrying amount of such asset to its estimated fair value based on the future discounted cash flows. The excess of any unamortized computer software costs over the related fair value is written down and charged to operations.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Software development costs capitalized were approximately $105,000 and $29,000 for the three months ended March 31, 2018 and 2017, respectively.  Total amortization expense was approximately $118,000 and $117,000 for the three months ended March 31, 2018 and 2017, respectively.</div><div><br /></div></div>
402000
329000
81976
960000
647000
1140000
1140000
1000
-1000
0
1000000
600000
1000
0
120000
119000
917000
45000
264000
134000
519000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left;">5. Restructuring Activities</div><div><br /></div><div style="margin-bottom: 3pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify; margin-top: 3pt;">On December 27, 2017, the board of GSE Systems, Inc. approved an international restructuring plan to streamline and optimize the Company's global operations. Beginning in December 2017, GSE has been in the process of consolidating its engineering services and R&D activities to Maryland and ceasing an unprofitable non-core business in the U.K. As a result, the Company will be closing its offices in Nyköping, Sweden; Chennai, India; and Stockton-on-Tees, UK. These actions are designed to improve Company productivity by eliminating duplicate employee functions and increasing GSE's focus on its core business, improving efficiency and maintaining the full range of engineering capabilities while reducing costs and organizational complexity.</div><div style="margin-bottom: 3pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify; margin-top: 3pt;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">GSE expects to eliminate approximately 40 positions due to these changes, primarily in Europe and India, and will undertake other cost-savings measures. The restructuring plan is expected to be completed in 2018. As a result of these efforts, GSE expects to record a restructuring charge of approximately $1.8 million, primarily related to workforce reductions, contract termination costs and asset write-offs due to the exit activities. As of March 31, 2018, we had recorded a restructuring charge of $1.7 million. The amounts to be transferred from cumulative translation adjustments and included in determining net income for the period, in which the liquidation of these foreign entities are completed, are not included in the estimated total amount of restructuring charge. We expect to record the remaining charges and the translation adjustments by the end of 2018.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following tables summarize the restructuring costs and restructuring liabilities:</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">in thousands</font>)</div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 25.53%; vertical-align: bottom;"> </td><td style="width: 3.88%; vertical-align: bottom;"> </td><td colspan="8" style="width: 70.59%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31, 2018</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"> </td><td style="width: 3.88%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.46%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total Expected Costs</div></td><td style="width: 3.43%; vertical-align: middle;"> </td><td colspan="2" style="width: 22.05%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Costs Incurred to Date</div></td><td style="width: 3.43%; vertical-align: middle;"> </td><td colspan="2" style="width: 19.23%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Expected Costs Remaining</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Employee termination benefits</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 18.32%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">736</div></td><td style="width: 3.43%; vertical-align: top;"> </td><td style="width: 4.14%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 17.91%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">729</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Lease termination costs</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 18.32%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">555</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 17.91%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">519</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">36</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Assets write-offs/impairment</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 18.32%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">222</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 17.91%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">222</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Other restructuring costs</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 18.32%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">272</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 17.91%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">180</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 15.09%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">92</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Total Restructuring costs</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 18.32%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,785</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 17.91%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,650</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">135</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The restructuring costs related to our Performance Improvement Solutions segment and are included in the consolidated statement of operations within the "Restructuring charges" line caption.</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 31.75%; vertical-align: bottom;"> </td><td style="width: 1.82%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.27%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Employee termination benefits</div></td><td style="width: 1.6%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.45%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Lease termination costs</div></td><td style="width: 1.64%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.41%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Other Restructuring costs</div></td><td style="width: 1.42%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.63%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Balance as of January 1, 2018</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">465</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">33</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">498</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Accruals</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle;"> </td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">264</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle;"> </td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">519</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">134</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">917</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Payments</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle;"> </td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(406)</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle;"> </td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(5)</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(411)</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Currency translation and other adjustments</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">119</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">120</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Balance as of March 31, 2018</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.99%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">324</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.9%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">638</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">162</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,124</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The accrued employee termination benefits were included in "accrued compensation" line, and the accrued lease termination costs and other restructuring costs were included in "accrued expenses" in the consolidated balance sheets.</div><div><br /></div></div>
33000
465000
498000
0
1124000
638000
324000
162000
36000
7000
92000
135000
0
40
222000
736000
1785000
555000
272000
1650000
222000
519000
729000
180000
-42870000
-43711000
670000
655000
-42215000
-44381000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left;">16. Revenue</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">We generate revenue primarily through three broad revenue streams: 1) SDB, 2) Software, and 3) Training and Consulting Services. We recognize revenue from SDB and software contracts mainly through the Performance Improvement Solutions segment and the training and consulting service contracts through both the Performance Improvement Solutions segment and Nuclear Industry Training and Consulting segment.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table represents a disaggregation of revenue by type of goods or services for the three months ended March 31, 2018 and 2017, along with the reportable segment for each category:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">in thousands</font>)</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td colspan="5" style="width: 45.76%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three Months Ended March 31,</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td colspan="2" style="width: 20.75%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td colspan="2" style="width: 20.75%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017<sup>(1)</sup></div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left;">Performance Improvement Solutions</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">System Design and Build</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7,495</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7,319</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Software</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">869</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">456</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Training and Consulting Services</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,537</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,895</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: left;">Nuclear Industry Training and Consulting</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"> </td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Training and Consulting Services</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">12,994</div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom;"> </td><td style="width: 15.61%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,672</div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td><td style="width: 15.61%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td><td style="width: 4.26%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td><td style="width: 15.61%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"> </div></td></tr><tr><td style="width: 49.43%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Total revenue</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22,895</div></td><td style="width: 4.26%; vertical-align: middle;"> </td><td style="width: 5.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.61%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">16,342</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;"><sup>(1)</sup> Prior period amounts have not been adjusted under the modified retrospective transition method for the adoption of ASC 606.</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">SDB contracts are typically fixed-priced, and we receive payments based on a billing schedule as established in our contracts. The transaction price for software contracts is generally fixed. Fees for software are normally due in advance of or shortly after delivery of the software. Fees for PCS are normally paid in advance of the service period. For Training and Consulting Services, the customers are generally billed on a regular basis, such as weekly, biweekly or monthly, for services provided. Contract liability, which we classify as billing in excess of revenue earned, relates to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table reflects the balance of contract liabilities and the revenue recognized in the reporting period that was included in the contract liabilities from contracts with customers:</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">in thousands</font>)</div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 48.74%; vertical-align: bottom;"> </td><td style="width: 4.58%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.05%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31, 2018</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.05%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31, 2017</div></td></tr><tr><td style="width: 48.74%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Billings in excess of revenue earned (BIE)</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">12,592</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">14,543</div></td></tr><tr><td style="width: 48.74%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Revenue recognized in the period from amounts included in BIE at the beginning of the period</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5,115</div></td><td style="width: 4.58%; vertical-align: bottom;"> </td><td style="width: 6.23%; vertical-align: bottom;"> </td><td style="width: 14.82%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">N/A</div></td></tr></table><div><br /></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For an SDB contract, we generally have two main performance obligations: the training simulator build and PCS. The training simulator build generally includes hardware, software, and labor. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method. In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For the three months ended March 31, 2018, the Company did not recognize significant revenue related to performance obligations satisfied in previous periods.</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">As of March 31, 2018, the aggregate amount of transaction price allocated to the remaining performance obligations of SDB and Software contracts is $35.6 million. The Company will recognize the revenue as the performance obligations are satisfied, which is expected to occur over the next 12 months.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Training and consulting services contracts are primarily T&M based. Under a typical T&M contract, the Company is compensated based on the number of hours of approved time provided by temporary workers and the bill rates, which are fixed per type of work, as well as approved expenses incurred. As part of our adoption of ASU 2014-09, we have elected to use the optional exemption under ASC 606-10-50-14(b), pursuant to which we have excluded disclosures of transaction prices allocated to remaining performance obligations under such contracts and when we expect to recognize the revenue.</div><div><br /></div></div>
P12M
16342000
7319000
12994000
456000
1537000
22895000
7495000
1895000
869000
6672000
35570000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;">Revenue recognition</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company derives its revenue through three broad revenue streams: 1) System Design and Build (SDB), 2) Software, and 3) Training and Consulting services. We recognize revenue from SDB and software contracts mainly through the Performance Improvement Solutions segment and the training and consulting service contracts through both the Performance Improvement Solutions segment and Nuclear Industry Training and Consulting segment.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The SDB contracts are typically fixed-price and consist of initial design, engineering, assembly and installation of training simulators which include hardware, software, labor, and post contract support (PCS) on the software. We generally have two main performance obligations for an SDB contract: the training simulator build and PCS. The training simulator build performance obligation generally includes hardware, software, and labor. The transaction price under the SDB contracts is allocated to each performance obligation based on its standalone selling price. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method as our performance creates or enhances assets with no alternative use to the Company, and we have an enforceable right to payment for performance completed to date. Cost-to-cost input method best measures the progress toward complete satisfaction of the performance obligation. PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The SDB contracts generally </font>provide a one to two-year base warranty<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> on the systems. The base warranty will not be accounted for as a separate performance obligation under the contract because it does not provide the customer with a service in addition to the assurance </font>that the completed project complies with agreed-upon specifications. Warranties extended beyond our typical two-year period will be<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> evaluated on a case by case basis to determine if it provides more than just assurance that the product operates as intended, which requires carve-out as a separate performance obligation.</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Revenue from the sale of standalone software licenses, which do not require significant modification or customization is recognized upon its delivery to the customer. Delivery is considered to have occurred when the customer receives a copy of the software and is able to use and benefit from the software.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">A software license sale contract with multiple deliverables typically includes the following elements: license, installation and training services and PCS. The total transaction price of a software license sale contract is typically fixed, and is allocated to the identified performance obligations based on their relative standalone selling prices. Revenue is recognized as the performance obligations are satisfied. Specifically, license revenue is recognized when the software license is delivered to the customer; installation and training revenue is recognized when the installation and training is completed without regard to a detailed evaluation of the point in time criteria due to the short-term nature of the installation and training services (one to two days on average); and PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The contracts within the training and consulting services revenue stream are primarily time and materials (T&M) based. Under a typical T&M contract, the Company is compensated based on the number of hours of approved time provided by temporary workers and the bill rates which are fixed per type of work, as well as approved expenses incurred. The customers are billed on a regular basis, such as weekly, biweekly or monthly. In accordance with Accounting Standards Codification (ASC) 606-10-55-18, we elected to apply the "right to invoice" practical expedient, under which we recognize revenue in the amount to which we have the right to invoice. The invoice amount represents the number of hours of approved time worked by each temporary worker multiplied by the bill rate for the type of work, as well as approved expenses incurred.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For contracts with multiple performance obligations, we allocate the contract price to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers.</div></div>
6672000
12994000
22895000
9670000
9901000
16342000
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company accrues for estimated warranty costs at the time the related revenue is recognized based on historical experience and projected claims. The Company's SDB contracts generally provide a one to two-year base warranty on the systems. The portion of the warranty provision expected to be incurred within 12 months is classified as current within accrued warranty and totals $1.2 million, while the remaining $0.7 million is classified as long-term within other liabilities. The activity in the accrued warranty accounts is as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 38.54%; vertical-align: top; background-color: #ffffff;"> </td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 38.54%; vertical-align: top; background-color: #ffffff;"> </td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance, January 1, 2018</div></td><td style="width: 7.55%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.99%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,953</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Current period provision</div></td><td style="width: 7.55%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.99%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">28</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Current period claims</div></td><td style="width: 7.55%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.99%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(103)</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Currency adjustment</div></td><td style="width: 7.55%; vertical-align: top; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 30.99%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5</div></td></tr><tr><td style="width: 61.46%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Balance at March 31, 2018</div></td><td style="width: 7.55%; vertical-align: top; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.99%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,883</div></td></tr></table><div><br /></div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table presents assets and liabilities measured at fair value at March 31, 2018:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 16.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Quoted Prices</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">in Active Markets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">for Identical Assets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 1)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Other Observable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 2)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Unobservable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 3)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Money market funds</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,780</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,780</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Foreign exchange contracts</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total assets</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,780</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,863</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Liability awards</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total liabilities</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(272)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Money market funds at both March 31, 2018 and December 31, 2017 are included in cash and cash equivalents in the respective consolidated balance sheets.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table presents assets and liabilities measured at fair value at December 31, 2017:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 16.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Quoted Prices</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">in Active Markets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">for Identical Assets</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 1)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Other Observable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 2)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.33%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Significant</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Unobservable</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Inputs</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">(Level 3)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.33%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.33%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.26%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Money market funds</div></td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,240</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,240</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Foreign exchange contracts</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total assets</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,240</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">3,441</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Liability awards</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(242)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(242)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Contingent consideration</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total liabilities</div></td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(242)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.66%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,701)</div></td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.59%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,943)</div></td></tr><tr><td style="width: 21.83%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 10.66%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.67%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 11.59%; vertical-align: bottom; background-color: #ffffff;"> </td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The number of common shares and common share equivalents used in the determination of basic and diluted loss per share were as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands, except for share amounts)</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.48%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.85%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Numerator:</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Net loss</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,496)</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(266)</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Denominator:</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Weighted-average shares outstanding for basic loss per share</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,514,385</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,094,382</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Effect of dilutive securities:</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 25.2pt; text-indent: -7.2pt;">Stock options and restricted stock units</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Adjusted weighted-average shares outstanding and assumed conversions for diluted loss per share</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,514,385</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">19,094,382</div></td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 64.15%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Shares related to dilutive securities excluded because inclusion would be anti-dilutive</div></td><td style="width: 2.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.2%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.28%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">763,200</div></td><td style="width: 2.25%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 2.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"> </td><td style="width: 13.64%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">564,833</div></td></tr></table><div><br /></div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-right: 0.2pt;">The following table presents the provision for income taxes and the effective tax rates:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">($ in thousands)</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 14.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.62%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Provision for income taxes</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">259</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">73</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Effective tax rate</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(20.9%)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(37.8%)</div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="margin-bottom: 6pt; font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table summarizes the consideration paid to acquire Absolute and the fair value of the assets acquired and liabilities assumed at the date of the transaction.</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left;">(in thousands)</div><div> </div><div> </div></td><td colspan="2" style="width: 36.73%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Total purchase price</div></td><td style="width: 5.86%; vertical-align: top; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.87%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">9,521</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Purchase price allocation:</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Cash</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">455</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Contract receivables</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5,121</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Prepaid expenses and other current assets</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">68</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Property, and equipment, net</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">184</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Intangible assets</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,569</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Accounts payable, accrued expenses, and other liabilities</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(78)</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Accrued compensation</div></td><td style="width: 5.86%; vertical-align: top; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,617)</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Total identifiable net assets</div></td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,702</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Goodwill</div></td><td style="width: 5.86%; vertical-align: top; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,819</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Net assets acquired</div></td><td style="width: 5.86%; vertical-align: top; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 30.87%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">9,521</div></td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 59.68%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.86%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 30.87%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.6%; vertical-align: bottom; background-color: #ffffff;"> </td></tr></table><div><br /></div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company identified $2.6 million of other intangible assets, including customer relationships and trademarks/names, with amortization periods of three to 10 years. The following table summarizes the fair value of intangible assets acquired at the date of acquisition and the related weighted average amortization period:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 25.25%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Intangible Assets</div></td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 43.26%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;"> Weighted average amortization period</div></td><td style="width: 4.82%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.86%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;"> Fair Value</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"> </td><td style="width: 4.81%; vertical-align: bottom;"> </td><td style="width: 43.26%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: center;"> (in years)</div></td><td style="width: 4.82%; vertical-align: bottom;"> </td><td colspan="2" style="width: 21.86%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: center;"> (in thousands)</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Customer relationships</div></td><td style="width: 4.81%; vertical-align: middle;"> </td><td style="width: 43.26%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">10</div></td><td style="width: 4.82%; vertical-align: middle;"> </td><td style="width: 3.87%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">$</div></td><td style="width: 17.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,856</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Trademarks/Names</div></td><td style="width: 4.81%; vertical-align: middle;"> </td><td style="width: 43.26%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">3</div></td><td style="width: 4.82%; vertical-align: middle;"> </td><td style="width: 3.87%; vertical-align: middle; border-bottom: #000000 1px solid;"> </td><td style="width: 17.99%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">713</div></td></tr><tr><td style="width: 25.25%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">Total</div></td><td style="width: 4.81%; vertical-align: middle;"> </td><td style="width: 43.26%; vertical-align: middle;"> </td><td style="width: 4.82%; vertical-align: middle;"> </td><td style="width: 3.87%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: center;">$</div></td><td style="width: 17.99%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,569</div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASC 606 is as follows (in thousands):</font></div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 30.95%; vertical-align: bottom;"> </td><td style="width: 4.22%; vertical-align: bottom;"> </td><td colspan="8" style="width: 64.83%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Balance at <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">January 1, 2018</font></div></td></tr><tr><td style="width: 30.95%; vertical-align: bottom;"> </td><td style="width: 4.22%; vertical-align: bottom;"> </td><td colspan="2" style="width: 25.24%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">As Reported</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td colspan="2" style="width: 19.28%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Adoption of ASC 606</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.48%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">As Adjusted</div></td></tr><tr><td style="width: 30.95%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Contract receivables, net</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 21.44%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">13,997</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 4.42%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.85%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(10)</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 11.68%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">13,987</div></td></tr><tr><td style="width: 30.95%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Deferred tax assets</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"> </td><td style="width: 21.44%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7,167</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 4.42%; vertical-align: bottom;"> </td><td style="width: 14.85%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(241)</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"> </td><td style="width: 11.68%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,926</div></td></tr><tr><td style="width: 30.95%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Billings in excess of revenue earned</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"> </td><td style="width: 21.44%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">14,543</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 4.42%; vertical-align: bottom;"> </td><td style="width: 14.85%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(906)</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"> </td><td style="width: 11.68%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">13,637</div></td></tr><tr><td style="width: 30.95%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Accumulated deficit</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"> </td><td style="width: 21.44%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(42,870)</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 4.42%; vertical-align: bottom;"> </td><td style="width: 14.85%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">655</div></td><td style="width: 2.42%; vertical-align: bottom;"> </td><td style="width: 3.8%; vertical-align: bottom;"> </td><td style="width: 11.68%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(42,215)</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">The impact of adoption on our consolidated statement of operations and balance sheet was as follows (in thousands):</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">Income Statement</font></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 23.68%; vertical-align: bottom;"> </td><td style="width: 4.22%; vertical-align: bottom;"> </td><td colspan="8" style="width: 72.1%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">For the three months ended March 31, 2018</div></td></tr><tr><td style="width: 23.68%; vertical-align: bottom;"> </td><td style="width: 4.22%; vertical-align: bottom;"> </td><td colspan="2" style="width: 17.8%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">As Reported</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td colspan="2" style="width: 31.08%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Balance without adoption of ASC 606</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td colspan="2" style="width: 17.8%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Effect of Change</div></td></tr><tr><td style="width: 23.68%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Revenue</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22,895</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 7.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 23.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22,852</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">43</div></td></tr><tr><td style="width: 23.68%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Gross profit</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"> </td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">4,898</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 7.85%; vertical-align: bottom;"> </td><td style="width: 23.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">4,855</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"> </td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">43</div></td></tr><tr><td style="width: 23.68%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Provision for income taxes</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"> </td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">259</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 7.85%; vertical-align: bottom;"> </td><td style="width: 23.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">231</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"> </td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(28)</div></td></tr><tr><td style="width: 23.68%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Net loss</div></td><td style="width: 4.22%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"> </td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,496)</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 7.85%; vertical-align: bottom;"> </td><td style="width: 23.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,511)</div></td><td style="width: 2.72%; vertical-align: bottom;"> </td><td style="width: 4.93%; vertical-align: bottom;"> </td><td style="width: 12.87%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">15</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; background-color: #ffffff;">Balance Sheet</font></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 28.41%; vertical-align: bottom;"> </td><td style="width: 4.01%; vertical-align: bottom;"> </td><td colspan="8" style="width: 67.59%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31, 2018</div></td></tr><tr><td style="width: 28.41%; vertical-align: bottom;"> </td><td style="width: 4.01%; vertical-align: bottom;"> </td><td colspan="2" style="width: 17.03%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">As Reported</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td colspan="2" style="width: 28.12%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Balance without adoption of ASC 606</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td colspan="2" style="width: 17.02%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Effect of Change</div></td></tr><tr><td style="width: 28.41%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Contract receivables, net</div></td><td style="width: 4.01%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 12.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">18,757</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 7.21%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 20.9%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">18,874</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 12.22%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(117)</div></td></tr><tr><td style="width: 28.41%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Deferred tax assets</div></td><td style="width: 4.01%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"> </td><td style="width: 12.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,336</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 7.21%; vertical-align: bottom;"> </td><td style="width: 20.9%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,605</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"> </td><td style="width: 12.22%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(269)</div></td></tr><tr><td style="width: 28.41%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Billings in excess of revenue earned</div></td><td style="width: 4.01%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"> </td><td style="width: 12.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">12,592</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 7.21%; vertical-align: bottom;"> </td><td style="width: 20.9%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">13,648</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"> </td><td style="width: 12.22%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,056)</div></td></tr><tr><td style="width: 28.41%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Accumulated deficit</div></td><td style="width: 4.01%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"> </td><td style="width: 12.23%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(43,711)</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 7.21%; vertical-align: bottom;"> </td><td style="width: 20.9%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(44,381)</div></td><td style="width: 2.71%; vertical-align: bottom;"> </td><td style="width: 4.8%; vertical-align: bottom;"> </td><td style="width: 12.22%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">670</div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 31.75%; vertical-align: bottom;"> </td><td style="width: 1.82%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.27%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Employee termination benefits</div></td><td style="width: 1.6%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.45%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Lease termination costs</div></td><td style="width: 1.64%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.41%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Other Restructuring costs</div></td><td style="width: 1.42%; vertical-align: bottom;"> </td><td colspan="2" style="width: 15.63%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Balance as of January 1, 2018</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">465</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">33</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">498</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Accruals</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle;"> </td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">264</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle;"> </td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">519</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">134</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">917</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Payments</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle;"> </td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(406)</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle;"> </td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(5)</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle;"> </td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(411)</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Currency translation and other adjustments</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.99%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.9%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">119</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;"> </div></td><td style="width: 12.95%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">120</div></td></tr><tr><td style="width: 31.75%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Balance as of March 31, 2018</div></td><td style="width: 1.82%; vertical-align: middle;"> </td><td style="width: 2.28%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.99%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">324</div></td><td style="width: 1.6%; vertical-align: middle;"> </td><td style="width: 2.56%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.9%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">638</div></td><td style="width: 1.64%; vertical-align: middle;"> </td><td style="width: 2.46%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">162</div></td><td style="width: 1.42%; vertical-align: middle;"> </td><td style="width: 2.69%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">$</div></td><td style="width: 12.95%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,124</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The accrued employee termination benefits were included in "accrued compensation" line, and the accrued lease termination costs and other restructuring costs were included in "accrued expenses" in the consolidated balance sheets.</div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following tables summarize the restructuring costs and restructuring liabilities:</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">(<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">in thousands</font>)</div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 25.53%; vertical-align: bottom;"> </td><td style="width: 3.88%; vertical-align: bottom;"> </td><td colspan="8" style="width: 70.59%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31, 2018</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"> </td><td style="width: 3.88%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.46%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Total Expected Costs</div></td><td style="width: 3.43%; vertical-align: middle;"> </td><td colspan="2" style="width: 22.05%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Costs Incurred to Date</div></td><td style="width: 3.43%; vertical-align: middle;"> </td><td colspan="2" style="width: 19.23%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Expected Costs Remaining</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Employee termination benefits</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 18.32%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">736</div></td><td style="width: 3.43%; vertical-align: top;"> </td><td style="width: 4.14%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 17.91%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">729</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: top;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">7</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Lease termination costs</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 18.32%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">555</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 17.91%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">519</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">36</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Assets write-offs/impairment</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 18.32%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">222</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 17.91%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">222</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Other restructuring costs</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 18.32%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">272</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 17.91%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">180</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 15.09%; vertical-align: middle; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">92</div></td></tr><tr><td style="width: 25.53%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Total Restructuring costs</div></td><td style="width: 3.88%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 18.32%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,785</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 17.91%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,650</div></td><td style="width: 3.43%; vertical-align: bottom;"> </td><td style="width: 4.14%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: middle; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">135</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The restructuring costs related to our Performance Improvement Solutions segment and are included in the consolidated statement of operations within the "Restructuring charges" line caption.</div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For the three months ended March 31, 2018 and 2017, the Company recognized a net loss on its derivative instruments as outlined below:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="5" style="width: 33.59%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 14.67%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 15.62%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Foreign exchange contracts - change in fair value</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(118)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.03%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(86)</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Remeasurement of related contract receivables,</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 18pt; text-indent: -7.2pt;"> and billings in excess of revenue earned</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.17%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(38)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"> </td><td style="width: 10.03%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(74)</div></td></tr><tr><td style="width: 63.17%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Loss on derivative instruments, net</div></td><td style="width: 3.24%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 4.5%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.17%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(156)</div></td><td style="width: 3.3%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 5.6%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 10.03%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(160)</div></td></tr></table><div><br /></div><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The components of contract receivables are as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31,</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td colspan="2" style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td style="width: 4.37%; vertical-align: top;"> </td><td style="width: 15.09%; vertical-align: bottom;"> </td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: top;"> </td><td style="width: 19.45%; vertical-align: bottom;"> </td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Billed receivables</div></td><td style="width: 4.37%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">10,823</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">8,154</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Unbilled receivables</div></td><td style="width: 4.37%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">8,071</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"> </td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">5,980</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Allowance for doubtful accounts</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(137)</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(137)</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total contract receivables, net</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">18,757</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">13,997</div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company has not designated the foreign exchange contracts as hedges and recorded the estimated net fair values of the contracts on the consolidated balance sheets as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 17.4%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.61%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31,</div></td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 17.4%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td colspan="2" style="width: 16.61%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.81%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.6%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.21%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Asset derivatives</div></td><td style="width: 3.81%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.6%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: top; background-color: #ffffff;"> </td><td style="width: 13.21%; vertical-align: bottom; background-color: #ffffff;"> </td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 18pt;">Prepaid expenses and other current assets</div></td><td style="width: 3.81%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.6%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.21%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td></tr><tr><td style="width: 62.72%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 18pt;">Net fair value</div></td><td style="width: 3.81%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.6%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">83</div></td><td style="width: 3.26%; vertical-align: bottom; background-color: #ffffff;"> </td><td style="width: 3.4%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.21%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">201</div></td></tr></table><div><br /></div></div>
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 36pt; vertical-align: top; font-weight: bold; align: right;">18.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Segment Information</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company has two reportable business segments.  The Performance Improvement Solutions segment provides simulation, training and engineering products and services delivered across the breadth of industries we serve. Solutions include simulation for both training and engineering applications.  Example training applications include turnkey and custom training services, while engineering services include plant design verification and validation. The Company provides these services across all market segments. Contract terms are typically less than two years.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Nuclear Industry Training and Consulting segment provides specialized workforce solutions primarily to the nuclear industry, working at clients' facilities. This business is managed through our Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the GSE product and service portfolio.</div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated loss before income taxes:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="6" style="width: 38.69%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">Three months ended</div></td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td colspan="6" style="width: 38.69%; vertical-align: middle;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td colspan="2" style="width: 16.75%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td colspan="2" style="width: 17.21%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Revenue:</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Performance Improvement Solutions</div></td><td style="width: 2.91%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">9,901</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">9,670</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Nuclear Industry Training and Consulting</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right; background-color: #ffffff;">12,994</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">6,672</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22,895</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">16,342</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Operating income:</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Performance Improvement Solutions</div></td><td style="width: 2.91%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(790)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(110)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Nuclear Industry Training and Consulting</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(338)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">307</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 36pt; text-indent: -18pt;">Change in fair value of contingent consideration, net</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">-</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(254)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Operating loss</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,128)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(57)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Interest income, net</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">22</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">27</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Loss on derivative instruments, net</div></td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(156)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(160)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Other income (expense), net</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">25</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(3)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Loss before income taxes</div></td><td style="width: 2.91%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 13.84%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(1,237)</div></td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 14.25%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">(193)</div></td><td style="width: 2.18%; vertical-align: top;"> </td></tr><tr><td style="width: 61.31%; vertical-align: bottom;"> </td><td style="width: 2.91%; vertical-align: bottom;"> </td><td style="width: 13.84%; vertical-align: bottom;"> </td><td style="width: 2.55%; vertical-align: top;"> </td><td style="width: 2.96%; vertical-align: bottom;"> </td><td style="width: 14.25%; vertical-align: bottom;"> </td><td style="width: 2.18%; vertical-align: top;"> </td></tr></table><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Effective January 2018, and due to the acquisition of Absolute, the Performance Improvement Solutions allocated corporate overhead to the Nuclear Industry Training and Consulting segment. For the three months ended March 31, 2018 and 2017, a total of $1.2 million and $0.6 million of corporate overhead, respectively, was allocated to Nuclear Industry Training and Consulting segment. Prior period amounts were reclassified to reflect the change.</div></div>
3592000
4527000
627000
596000
P1Y
P3Y
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27pt; vertical-align: top; font-weight: bold; align: right;">1.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Summary of Significant Accounting Policies</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;">Basis of Presentation</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The consolidated interim financial statements included herein have been prepared by GSE Systems, Inc. (the Company, GSE, we, us, or our) and are unaudited. In the opinion of the Company's management, all adjustments and reclassifications of a normal and recurring nature necessary to present fairly the financial position, results of operations and cash flows for the periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. The results of operations for interim periods are not necessarily an indication of the results for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission on March 16, 2018.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company has two reportable segments as follows:</div><div><br /></div><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27.1pt; vertical-align: top; align: right;">●</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Performance Improvement Solutions (approximately 43% of revenue)</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Our Performance Improvement Solutions segment primarily encompasses our technical engineering and power plant high-fidelity simulation solutions and interactive computer based tutorials/simulation focused on the process industry. This segment includes various simulation products, engineering services, and operation training systems delivered across the industries we serve: primarily nuclear and fossil fuel power generation, as well as the process industries. Our simulation solutions include the following: (1) simulation software and services, including operator training systems, for the nuclear power industry, (2) simulation software and services, including operator training systems, for the fossil power industry, and (3) simulation software and services for the process industries used to teach fundamental industry processes and control systems to newly hired employees and for ongoing workforce development and training. GSE and its predecessors have been providing these services since 1976.</div><div style="background-color: #ffffff;"><br /></div><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27.1pt; vertical-align: top; align: right;">●</td><td style="width: auto; vertical-align: top; text-align: left;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Nuclear Industry Training and Consulting (approximately 57% of revenue)</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Nuclear Industry Training and Consulting provides highly specialized and skilled nuclear operations instructors, procedure writers, technical engineers, and other consultants to the nuclear power industry. These employees work at our clients' facilities under client direction. Examples of these highly skilled positions are senior reactor operations instructors, procedure writers, project managers, work management specialists, planners and training material developers. This business is managed through the Hyperspring and Absolute subsidiaries. The business model, management focus, margins and other factors clearly separate this business line from the rest of the Company's product and service portfolio. GSE and its predecessors have been providing these services since 1997.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Financial information about the two business segments is provided in Note 18 of the accompanying condensed consolidated financial statements.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. The Company's most significant estimates relate to revenue recognition on contracts with customers, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">allowance for doubtful accounts, </font>product warranties, valuation of goodwill and intangible assets acquired, valuation of long-lived assets to be disposed of, valuation of contingent consideration issued in business acquisitions, valuation of stock based compensation awards, and the recoverability of deferred tax assets. Actual results could differ from these estimates and those differences could be material.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: justify;">Revenue recognition</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company derives its revenue through three broad revenue streams: 1) System Design and Build (SDB), 2) Software, and 3) Training and Consulting services. We recognize revenue from SDB and software contracts mainly through the Performance Improvement Solutions segment and the training and consulting service contracts through both the Performance Improvement Solutions segment and Nuclear Industry Training and Consulting segment.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The SDB contracts are typically fixed-price and consist of initial design, engineering, assembly and installation of training simulators which include hardware, software, labor, and post contract support (PCS) on the software. We generally have two main performance obligations for an SDB contract: the training simulator build and PCS. The training simulator build performance obligation generally includes hardware, software, and labor. The transaction price under the SDB contracts is allocated to each performance obligation based on its standalone selling price. We recognize the training simulator build revenue over the construction and installation period using the cost-to-cost input method as our performance creates or enhances assets with no alternative use to the Company, and we have an enforceable right to payment for performance completed to date. Cost-to-cost input method best measures the progress toward complete satisfaction of the performance obligation. PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">In applying the cost-to-cost input method, we use the actual costs incurred to date relative to the total estimated costs to measure the work progress toward the completion of the performance obligation and recognize revenue accordingly. Estimated contract costs are reviewed and revised periodically as the work progresses, and the cumulative effect of any change in estimates is recognized in the period in which the change is identified. Estimated losses are recognized in the period such losses are identified. Uncertainties inherent in the performance of contracts include labor availability and productivity, material costs, change order scope and pricing, software modification and customer acceptance issues. The reliability of these cost estimates is critical to the Company's revenue recognition as a significant change in the estimates can cause the Company's revenue and related margins to change significantly from the amounts estimated in the early stages of the project.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The SDB contracts generally </font>provide a one to two-year base warranty<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> on the systems. The base warranty will not be accounted for as a separate performance obligation under the contract because it does not provide the customer with a service in addition to the assurance </font>that the completed project complies with agreed-upon specifications. Warranties extended beyond our typical two-year period will be<font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> evaluated on a case by case basis to determine if it provides more than just assurance that the product operates as intended, which requires carve-out as a separate performance obligation.</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">Revenue from the sale of standalone software licenses, which do not require significant modification or customization is recognized upon its delivery to the customer. Delivery is considered to have occurred when the customer receives a copy of the software and is able to use and benefit from the software.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">A software license sale contract with multiple deliverables typically includes the following elements: license, installation and training services and PCS. The total transaction price of a software license sale contract is typically fixed, and is allocated to the identified performance obligations based on their relative standalone selling prices. Revenue is recognized as the performance obligations are satisfied. Specifically, license revenue is recognized when the software license is delivered to the customer; installation and training revenue is recognized when the installation and training is completed without regard to a detailed evaluation of the point in time criteria due to the short-term nature of the installation and training services (one to two days on average); and PCS revenue is recognized ratably over the service period, as PCS is deemed as a stand-ready obligation.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The contracts within the training and consulting services revenue stream are primarily time and materials (T&M) based. Under a typical T&M contract, the Company is compensated based on the number of hours of approved time provided by temporary workers and the bill rates which are fixed per type of work, as well as approved expenses incurred. The customers are billed on a regular basis, such as weekly, biweekly or monthly. In accordance with Accounting Standards Codification (ASC) 606-10-55-18, we elected to apply the "right to invoice" practical expedient, under which we recognize revenue in the amount to which we have the right to invoice. The invoice amount represents the number of hours of approved time worked by each temporary worker multiplied by the bill rate for the type of work, as well as approved expenses incurred.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">For contracts with multiple performance obligations, we allocate the contract price to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers.</div></div>
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<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 27pt; vertical-align: top; font-weight: bold; align: right;">19.</td><td style="width: auto; vertical-align: top; text-align: justify;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Subsequent Events</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">On May 14, 2018, we announced that the Company acquired True North Consulting, LLC (True North) on May 11, 2018, a leading provider of specialty engineering solutions to the nuclear power industry. Founded in 1999 in Montrose, Colorado, True North generated revenue of approximately $11 million for the year ended December 31, 2017, of which over 85% came from the nuclear power industry. True North employs roughly 60 full-time and part-time professionals with expertise in areas such as in-service testing for engineering programs focused on ASME OM code including Appendix J, balance of plant programs, thermal performance, in-service inspection for specialty engineering including ASME Section XI and software solutions.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">The Company acquired True North for <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">approximately </font>$9.8 million in cash, consisting of <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">approximately </font>$8.3 million paid at close and <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">approximately </font>$1.5 million held in escrow for indemnity and leadership retention purposes. The transaction closed on May 11, 2018. Due to the timing and complexity of the acquisition, the Company had not completed the purchase accounting for the acquisition on the report issuance date.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify; margin-top: 3pt; margin-right: 0.2pt;">On May 11, 2018, the Company entered into an amended and restated credit agreement with Citizen's Bank, consisting of a five-year $5 million revolving line of credit and a five-year $25 million delayed draw term loan facility to fund acquisitions approved by the Lender. We drew down approximately $10.3 million to fund the acquisition of True North. Interest is based on a LIBOR spread of 200 to 275 basis points, depending on pre-defined leverage thresholds defined in the agreement.</div><div style="margin-top: 3pt;"><br /></div></div>
2999000
2999000
1598911
1598911
5980000
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19094382
19514385
19514385
19094382
P1Y
P2Y
P1Y
P2Y
<div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 36pt; vertical-align: top; font-weight: bold; align: right;">8. </td><td style="width: auto; vertical-align: top; text-align: left;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Prepaid Expenses and Other Current Assets</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">Prepaid expenses and other current assets consist of the following:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; width: 100%;"><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">(in thousands)</div></td><td colspan="2" style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">March 31,</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">December 31,</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td colspan="2" style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2018</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td colspan="2" style="width: 22.26%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; text-align: center;">2017</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"> </td><td style="width: 4.37%; vertical-align: top;"> </td><td style="width: 15.09%; vertical-align: bottom;"> </td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: top;"> </td><td style="width: 19.45%; vertical-align: bottom;"> </td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Inventory</div></td><td style="width: 4.37%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">733</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">755</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Income taxes receivable</div></td><td style="width: 4.37%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">363</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"> </td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">418</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Prepaid expenses</div></td><td style="width: 4.37%; vertical-align: bottom;"> </td><td style="width: 15.09%; vertical-align: bottom; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">628</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom;"> </td><td style="width: 19.45%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">549</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 7.2pt; text-indent: -7.2pt;">Other current assets</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 1px solid; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">956</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 1px solid;"> </td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 1px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">1,073</div></td></tr><tr><td style="width: 56.85%; vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left; margin-left: 14.4pt; text-indent: -7.2pt;">Total prepaid expenses and other current assets</div></td><td style="width: 4.37%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 15.09%; vertical-align: bottom; border-bottom: #000000 3px double; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,680</div></td><td style="width: 1.44%; vertical-align: bottom;"> </td><td style="width: 2.81%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: left;">$</div></td><td style="width: 19.45%; vertical-align: bottom; border-bottom: #000000 3px double;"><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: right;">2,795</div></td></tr></table><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; text-align: justify;">At March 31, 2018 and December 31, 2017, prepaid expenses and other current assets are comprised primarily of inventory and other current assets. Inventory is being purchased to support the construction of three major nuclear simulation projects related to a significant contract that was executed during the first quarter of 2016. Inventory is recorded at the lower of cost or net realizable value in accordance with ASC 330, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Inventory.</font> Other current assets primarily includes value-added tax receivables and cash deposited in a Swedish tax account.</div></div>
3
P12M
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1
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105000
76000
672000
0.5
0.5
1701000
0
-74000
-38000
0.8
2
2
2
0.0125
223802
210092
783000
682799
8
8
P3Y
P3Y
P2Y
628000
1174000
8750000
1000000
1500000
8300000
0.85
60