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Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events
25. Subsequent Events

In December 2019, a novel strain of coronavirus, the COVID-19 virus, was reported in Wuhan, China. On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of the COVID-19 virus. On March 11, 2020, the WHO declared the COVID-19 a global pandemic and on March 13, 2020, President Donald J. Trump declared the virus a national emergency in the United States.
As of the date of this report, both the health and economic aspects of COVID-19 are highly fluid and the future course of each is uncertain. As such, the ultimate impact the pandemic will have on the Company’s financial condition, liquidity, and future results of operations is highly uncertain and subject to change. Management is actively monitoring the situation on its financial condition, liquidity, operations, operations, industry, supplies, and workforce. Given the highly fluid situation of COVID-19 and the global response to prevent the spread, the Company is unable to estimate the impact of COVID-19 on our business operations, revenues and financial condition in fiscal year 2020.
The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown, which could impact the Company’s performance and trigger impairment of the Company’s goodwill and intangible assets.
The Company is dependent on its workforce being deployed to deliver its services. Social distancing and shelter-in-place directives may impact the Company’s ability to deploy its workforce effectively. With regard to our Nuclear Industry Training and Consulting (“NITC”) business segment, because of the embedded presence of our on-site workforce, if COVID-19 or a similar outbreak of infectious disease were to prevent our workers from being deployed to the applicable customer site. While expected to be temporary, it may disrupt our NITC service offerings, interrupt performance on our NITC contracts with clients and negatively impact our business, financial condition and results of operations. The safety of our employees, their families and our customers are of primary concern to GSE. The company operates consistent with  Federal and State guidelines. As a result, employees almost entirely work from home for the Performance Solutions segment, but for when required to be at the client site for essential project work. When at the client site, employees are required to become thoroughly familiar with client safety guidelines including COVID-19 guidelines. Performance Projects, since they are essential, for the most part continue without pause. For our staff augmentation, we have seen certain contract for NITC customers paused and or delayed as clients shrink their own on-premise workforces to the bare minimum in response to the pandemic; as a result the NITC business has seen its deployed billable employee base contract since the start of the pandemic. NITC still has a meaningful deployment of billable employees at client sites delivering essential services working at the direction of our customers. While we are still receiving new orders, we are experiencing a significant decline in the volume of new orders compared to prior periods. The COVID-19 crisis is still an evolving situation and we are unable to predict when it will end or the future impact it will have on the business and our operations will be. We have experienced current projects in our Performance Solutions and NITC segments being delayed or paused. The Company has been designated as an essential services provider for certain nuclear power and defense customers, which constitute greater than 90% of our business.
We have significant debt principal payments on our term loan due in June 2020, which a decline in sales due to the impact of COVID-19 on consumers, our customers, or our ability to satisfy performance obligations, may lead to the Company seeking debt restructuring and additional sources financing. Additionally, it is probable we fail to meet certain covenant provisions in our debt arrangements due to the impact of COVID-19. On April 17, 2020 the Company entered into an Amendment and Reaffirmation Agreement with the Bank granting certain waivers and improved leverage ratios. We have made principal payments of $3.0 million in January 2020, $1.0 million March 2020, and $0.75 million April 2020 with a scheduled $1.5 million payment in June 2020.
Although the Company cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, as described above, for these reasons and other reasons that may come to light if the pandemic and associated protective or preventative measures expand, we may experience a material adverse effect on our business operations, revenues and financial condition in fiscal year 2020. The Company expects that financial results for the fiscal year 2020 will be lower as a result of COVID-19.
CARES Act
On March 27, 2020, the CARES Act was enacted. The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the United States economy and fund a nationwide effort to curtail the effect of COVID-19. While the CARES Act provides sweeping tax changes in response to the COVID-19 pandemic, some of the more significant provisions which are expected to impact the Company’s financial statements include removal of certain limitations on utilization of net operating losses and increasing the ability to deduct interest expense, as well as amending certain provisions of the previously enacted Tax Cuts and Jobs Act. Due to the recent enactment of the CARES Act, the Company is unable to fully quantify the impact, if any, that the CARES Act will have on its financial position, results of operations or cash flows.

The Company has applied for, and has received, funds under the Paycheck Protection Program after the period end in the amount of $10.0 million serviced by Citizens Bank. The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further requires the Company to take into account our current business activity and our ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria.