Note 15 - Segment Information

We have two reportable business segments. Our Performance segment provides simulation, training and engineering products and services delivered across the breadth of industries we serve. The Performance segment provides simulations for both training and engineering applications. Examples of engineering services include, but are not limited to, plant design verification and validation, thermal performance evaluation and optimization programs and engineering programs for plants for the ASME "(American Society of Mechanical Engineers") code and ASME Section XI. We provide these services through GSE, True North and DP Engineering across all market segments. Examples of training applications include turnkey and custom training services, and our contract terms are typically less than two years.

The NITC segment provides specialized workforce solutions primarily to the nuclear industry, working primarily at our 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 our products and service portfolio.

Our primary measure of segment performance, as shown in the table below, excludes the loss on impairment of intangible assets and goodwill, the provision for loss on legal settlement, net (see Note 16) and the change in fair value of contingent consideration, net related to the DP Engineering acquisition in fiscal 2019, which do not accurately represent the ongoing operations of our operating segments. Management believes that excluding these discrete items from the segment measure of performance allows for better period over period comparison.

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 income before income taxes. Inter-segment revenue is eliminated in consolidation and is not significant:

	Three months ended						Nine months ended
(in thousands)	September 30, 2020			September 30, 2019			September 30, 2020			September 30, 2019

Revenue:
Performance	$	7,257		$	11,417		$	25,240		$	36,617
NITC		5,665			8,614			19,727			29,066
Total revenue		12,922			20,031			44,967			65,683

Operating loss:
Performance		(74	)		(25	)		(2,041	)		31
NITC		(1,249	)		(340	)		(2,105	)		(1,558	)
Gain on legal settlement, net		952			-			91			-
Loss on impairment		-			-			(4,302	)		(5,464	)
Change in fair value of contingent consideration, net		-			-			-			1,200

Operating loss		(371	)		(365	)		(8,357	)		(5,791	)

Interest expense, net		(128	)		(288	)		(556	)		(812	)
Gain (loss) on derivative instruments, net		31			(61	)		35			(69	)
Other (expense) income, net		(77	)		59			(24	)		62
Loss before income taxes	$	(545	)	$	(655	)	$	(8,902	)	$	(6,610	)