8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

September 20, 2021

Date of Report (Date of earliest event reported)

GSE SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-14785	52-1868008
(State of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

6940 Columbia Gateway Dr, Suite 470, Columbia, MD  21046

(Address of principal executive offices and zip code)

(410) 970-7800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

(17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

(17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 Par Value	GVP	The NASDAQ Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

  Item 7.01.   Regulation FD Disclosure

GSE Systems, Inc. (the “Company”) has prepared an updated investor presentation concerning its business that it intends to post on its website, www.gses.com, as well as to use in connection with meetings with investors and other interested parties and in connection with presentations and speeches to various audiences. A copy of the updated investor presentation is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The information furnished in this Item 7.01, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Except for historical information contained in the updated investor presentation attached as an exhibit hereto, the investor presentation contains forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary notes in the investor presentation regarding these forward-looking statements.

Item 9.01. Financial Statements and Exhibits  

99.1 Updated Investor Presentation dated September 20, 2021

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

GSE SYSTEMS, INC.
By:	/s/ Daniel W. Pugh
	Daniel W. Pugh
	Chief Legal and Risk Officer

Date: September 20, 2021

EX-99.1

Exhibit 99.1

 Investor PresentationGSE Systems, Inc. (“GSE Solutions”)NASDAQ: GVPSeptember 21, 2021 

 Forward Looking Statements and Non-GAAP Financial Measures  This presentation, our remarks, and answers to questions contain statements that are considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. These statements reflect our current expectations concerning future events and results. We use words such as “expect,” “intend,” “believe,” “may,” “will,” “should,” “could,” “anticipate,” and similar expressions to identify forward-looking statements, but their absence does not mean a statement is not forward-looking. These statements are not guarantees of our future performance and are subject to risks, uncertainties, and other important factors that could cause our actual performance or achievements to be materially different from those we project. For a full discussion of these risks, uncertainties, and factors, we encourage you to read our documents on file with the Securities and Exchange Commission, including those set forth in our periodic reports under the forward-looking statements and risk factors sections. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.This presentation, our remarks, and answers to questions include references to Adjusted EBITDA, adjusted net income, and adjusted earnings per share (“adjusted EPS”), which do not adhere to generally accepted accounting principles (“GAAP”). We define EBITDA as earnings before interest, taxes, depreciation and amortization (“EBITDA”). “Adjusted EBITDA” excludes from EBITDA certain non-recurring gains and expense including non-cash loss on impairment, impact of the change in fair value of contingent consideration, restructuring charges, stock-based compensation expense, impact of the change in fair value of derivative instruments, and acquisition-related expense. References to “Adjusted net income” excludes from net income non-cash loss on impairment, impact of the change in fair value of contingent consideration, restructuring charges, stock-based compensation expense, impact of the change in fair value of derivative instruments, acquisition-related expense, and amortization of intangible assets related to acquisitions. We define adjusted EPS as adjusted net income divided by fully diluted shares of common stock issued and outstanding. EBITDA, Adjusted EBITDA, Adjusted net income, and adjusted EPS are reconciled to net income, the most directly comparable GAAP measure, in the financial tables included in the Appendix to this presentation. We believe that this additional information and the reconciliation we provide may be useful to help evaluate our operations. This information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results.We undertake no duty to update or revise the information in light of new information, future events or otherwise, although we may do so from time to time as management believes is appropriate. Any such updating may be made through the filing of reports or documents with the Securities and Exchange Commission, through press releases or through other public disclosures. 

   GSE: Future of Power Operations  Our mission is to deliver advanced engineering services & products, and flexible workforce solutions that support a stable grid, clean energy production and the decarbonization of the power industry. 

 Corporate Overview 

 GSE Solutions At A Glance  More than four decades of proven industry experience, more than 1,100 installations, and hundreds of customers in over 50 countries spanning the globeDelivers unique and essential engineering and workforce solutions, services and products Solutions include performance optimization, regulatory compliance, simulation, training, and staffing One of the few publicly held independent companies serving the clean energy sector of nuclear power and adjacent industriesGSE supports the future of clean energy production and the decarbonization of the power industry  Ticker | Exchange  GVP | Nasdaq  Headquarters  Maryland  Number of Employees  ~380  Recent price (9/16/21)   $1.35  Shares outstanding  ~20.6M  Market cap (9/16/21)  ~$27.8M  Total cash (6/30/21)  ~$3.8M  Total debt1 (6/30/21)  ~$12.4M  Enterprise value2  ~$36.4M  Revenue (2020)  ~$57.6M  EV / Revenue2  ~0.6x  Insider ownership3  ~1.56M shares  1 Total debt includes a Paycheck Protection Program loan of approximately $10M received under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). 2 Enterprise Value and EV/Revenue are estimates based on the Recent Price, Market Cap, Total Cash and Total Debt amounts as of the dates provided herein and do not represent the Enterprise Value or EV/Revenue as of the date of this presentation. 3Per proxy dated 4/30/2021. 

 GSE Senior Leadership   Kyle Loudermilk President and Chief Executive Officer20+ years of executive experience at publicly-listed MicroStrategy. AspenTech, and PE-backed Datatel/Ellucian Strong track record revitalizing technology companiesBS, MS, Chemical Engineering – Columbia University; Harvard University General Management Program  Emmett Pepe, CPA Chief Financial Officer30+ years of experience in finance management across a variety of business sectors Focus on the software and telecommunicationExecutive positions at MicroStrategy, BroadSoft, Software AG, and webMethodsBS, Accounting – Penn State University  Bahram Meyssami PhD Chief Technology Officer25+ years of experience in the software industryFormer positions at Aspen Technology, Datatel, University of MarylandBS, MS, PhD Chemical Engineering – University of Maryland  Don Horn President, Engineering Performance Group 25+ years in energy industry, focused on managerial and engineering responsibilitiesElectrical engineering experience with Foster Wheeler, Houston Lighting & Power, and FluorBS in Electrical Engineering – Colorado State University  Brian Greene Vice President, Workforce Solutions Group 15+ years of staffing industry experience More than a decade with System One, with a particular focus on staffing for the nuclear energy and engineering sectorsBA, English – University of West Georgia 

   The GSE Workforce Solutions division makes sure the right people and skills are in place for customer operations to run smoothly. Our experts help identify solutions and talent to address workforce gaps.     How We Work  Engineering design and implementation services Simulators that enhance design and performanceOptimizing plant performance and engineering program applications  The GSE Engineering is a highly experienced team focused on creating innovative ways to meet our customers’ needs using a combination of our industry-leading services and products.  Flexible staffing services End-to-end workforce management programsKnowledge transfer support as aging workforce retireSpecialized nuclear training programs 

                     CONSULTING    SIMULATION  Virtual CommissioningAdvanced ModelingSystem DesignGeneric SimulationFull-Scope Custom SimulationOn-Demand PlatformEngineering Simulators    PLANT MODIFICATIONSMechanical, Electrical, I&CCivil/StructuralFire ProtectionDigital Upgrades      DECOMMISSION SERVICESAssessment/ ReadinessProcedures10 CFR 72 ComplianceLicense Termination  Staff AugmentationSchedule/Plan EstimatesProject ManagementProcedure Development      TRAINING  Turn-key ProgramsCustom Programs & DevelopmentOn-Demand TrainingAssessmentsCertified Instructors      ENGINEERING PROGRAMSASME OM CodeIn-Service Inspect/TestAppendix JBalance of PlantEngineering Programs SoftwareTraining Courses      THERMAL PERFORMANCEAssessment ModelingHeat Balance AnalysisMegawatt ImprovementOnline MonitoringTraining CoursesThermal Performance Software    ENGINEERINGSERVICESSystems UpgradesLife ExtensionLicense Renewal  Specialty Engineering EOCPRA Evaluations  Solutions: Engineering Services & Technology  STAFFING  Nuclear OperationsProgram CompliancePerformance Analysis Work ManagementCorrective ActionsLicense & RegulatoryDesign for Inspectability 

 Representative Global Blue-Chip Customers1   1The trademarks above are the property of the referenced companies; GSE disclaims ownership of such marks. Inclusion of a representative customer herein is not intended to suggest endorsement or recommendation.   

 Business Model: How We Make Money  ~45%12-15%Technical / High-Value StaffingTime and material contractsAs service is performed billing occurs  ~5%80-90%SoftwareSale of perpetual license with recurring MX, or SaaS annual subscriptionLicense upon delivery, ratable recognition over life of MX agreement  Workforce Solutions   Software1  % of RevenueGross MarginPrimarily SellingBusiness ModelAccounting  1 Software is a component of GSE’s Engineering group  Engineering   ~55%30-40+%Engineering Modeling & Modification ServicesFixed price, and time and material contractsPercent complete, or as service is performed billing occurs 

 Growing Software MX Revenue Streams  Revenue history34% 2019-2020 (total software)147% 2020-2021 (over time software)Types of softwareWorkforce training Engineering scenariosAnalytics analysisProgram supportWhy softwareBetter marginsImplementing modernization of systems for better data knowledgeSupport virtual workforce with web-based solutions We have experts to develop and deploy  +147%   Software & Support Revenue – Over time (in $M) 

 Web-based Employee Training Software  Dynamic Simulation Modeling Software  Engineering Program Software  Investing in the Future of Software  The most accurate, highest-level of advanced modeling used to test engineering changes, system design and human factors engineering.  EnVision On-Demand integrates computer-based tutorials and simulations to provide anytime, anywhere access to training content.  EP-Plus is a modern, easy to use engineering programs software suite, built on industry standards and best practices by leading experts.  Fleet Thermal System Monitoring Software  TSM Enterprise is a suite of calculation modules that provide timesaving methods of tracking thermal performance in plant applications. 

 Won a multiyear subscription for EnVision by a global energy company          Announced two MSAs with a total value of $35M at US major utility  COVID Business Challenges & Outcomes  CHALLENGESClients reduced/postponed staff augmentation engagementsProject stoppage at client facilities due to onsite outbreakDelay in nonessential engineering services projects   Leveraged technology to stay connected with clients  ACTIONSPrioritized the health and safety of employees and clientsMigrated a significant portion of employees to work remotePursued a hybrid virtual/in-person selling/delivery approach  Opportunity to lower costs and reduce real estate footprint   Secured three contracts with total value of $8.7M for training & staffing  POSITIVE OUTCOMES      PPP loan forgiven, GSE is exiting pandemic with stronger balance sheet 

 Industry Growth Drivers 

     Utilities NEED Experienced Partners & Expert Solutions                  What’s Driving The Market  Delivering environmental equity   Widening skills gap and aging workforce  Awareness of the value of nuclear power as a source for carbon-free energy  Demand for carbon-free electricity    Restart of nuclear reactors post-Fukushima  Development of advanced small modular reactors  The new administration’s plans to cut carbon emissions  NEEDStaff Support  NEEDTraining Programs  NEEDOptimization Programs  NEEDEngineeringModifications    NEEDSimulationSolutions    Modernizing operations    NEEDSoftware Solutions 

 Investing in Environmental Equity  New Executive Actions: Clean EnergyCharged to create a carbon-free power sector by 2035 US on a path to a net-zero economy by 2050Re-establish the President’s Council of Advisors on Science and TechnologyCreation of jobs and skilled-trades to accelerate clean energy and transmission projects Plan to increase the resilience of facilities and operationsLikely phaseout and elimination of fossil fuel subsidies      GSE is positioned as an essential enabler of US decarbonization.   2050  2035  2025  2021  US on path to net-zero economy   Carbon-free power sector created  Embrace new technologies like SMRs  Strategy & solution building 

         GSE Growth Roadmap  expand services and technology to the aging nuclear fleet to improve operations, enhance safety and extend plant lifedevelop new innovative software and technologies to modernize and analyze systemsextend capabilities through a customized approach to offer true and compelling value  aggressively address cross-over services that fit with natural gas/renewables, wind, solar and hydrogencontinue to work and expand partnerships into advance reactors and small modular reactors (SMR)continue to innovate and improve  Organic GrowthDEEPEN  New Approaches INTEGRATE  deepen partnerships customers and vendorsexpand cross selling effortsimprove power generation assets and operations with products, services and maintenance contractsexpand to adjacent marketsbuild and expand talent network  Utilize TechnologyOPTIMIZE  Boosting efficiency & driving to net zero carbon emissions  0-3 years  3-5 years  5-7 years 

 The Robust Nuclear Industry…  TODAY: Global nuclear reactor installed base1: 441     Operable Nuclear Reactors – Top 10 Countries  1Source: International Atomic Energy Agency - Power Reactor Information System (August 2020)2Source: World Nuclear Association (August 2017)3Source: Extrapolated from The Conversation, August 2018; International Atomic Energy Agency  Years    Lifespan  Average US Nuclear Plant is ~40 Years Old1  Million Metric Tons, 2019  CO2 Emissions Avoided by the US Power Industry  Plants are here for the long-termAn average nuclear plant spans 60 years - existing fleet requires 20-40 years depending on if licenses get extended to 80 yearsNuclear leads in reducing CO2 emissions“Nuclear energy is America’s top source of carbon-free electricity and avoids more than 1/2 billion tons of carbon emissions each year.”GSE solutions them help sustain & growGSE maintenance, services and technology support the aging nuclear fleet to improve operations, enhance safety and extend plant life.  Benefits GSE 

 SMRs & Traditional Nuclear Reactors: Key Differences  Safe, Clean, & Affordable Nuclear Power OptionModularityLower Capital InvestmentSiting FlexibilityGreater EfficiencyIncreasing Grid StabilitySafeguards & Security / NonproliferationUS Industry, Manufacturing and Job GrowthEconomic Development   Negative Public Awareness - Sometimes viewed by the general public as a dangerous or unstableMore Expensive to Build - Conventional reactor designs are considered multi-billion-dollar infrastructure projectsHigher Operating Costs - although lower than coal, oil, and gas alternativesLarger Footprint SMR need 35-acre footprint, while a traditional nuclear plant generating the same amount of electricity requires nearly 500 acres Although smaller land footprint than other clean energy technologies such as solar and wind.  https://www.energy.gov/ne/benefits-small-modular-reactors-smrshttps://www.clean-energy-ideas.com/nuclear-energy/pros-and-cons-of-nuclear-energy/  SMALL MODUAL REACTORS  TRADITIONAL REACTORS        

 Small Modular Reactors (SMR) Gain Traction in 2020-2021  FUTURE OPPORTUNITIES IN SMRSMR solution supports our mission * “A promising new non-emitting technology that has the potential to produce reliable electricity in Canada, supporting the country’s transition to net-zero emissions by 2050.”GSE’s partner NuScale is expected to have first SMR operational by 2027NuScale has invested more than $900m in SMR technology*Others are developing SMRs including GE Hitachi; Rolls-Royce Consortium; and others   1December 2020 - Natural Resources Canada press release outlines next steps for progress on small modular reactor technology.2 www.spglobal.com/platts/en/market-insights/latest-news/electric-power/021221-montana-senate-panel-oks-study-to-convert-colstrip-coal-plant-to-nuclear3 www.eenews.net/eedaily/2021/02/08/stories/1063724579?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aeedaily4 According to ReportLinker.com  SEPT ‘20   US NRC approved the first SMR design by NuScale  OCT ‘20  US DOE awarded $160M to build working models of smaller scale nuclear reactor designs  NOV ‘20  UK announces ten-point plan for a green industrial revolution, supporting the UK SMR program with a £215 million investment   DEC ‘20  DOE announced $30M in funding under its new Advanced Reactor Demonstration Program  DEC ‘20  Canada outlines next steps for progress on SMR technology1  FEB ‘21  Montana Senate Committee votes to pass a feasibility study for replacing coal-fired boilers at a coal plant with SMRs2  FEB ‘21  US Rep Mike Simpson calls for breaching four Snake River dams and replacing energy with sources such as SMRs3  Jun’ 21  TerraPower teams with PacifiCorp to demonstrate the viability of carbon-free SMRs in WY  Sept ’21   The SMR market is projected to reach USD 11.3 billion by 20264   Sept ’21  Consideration of SMRs for the Caribbean island of Puerto Rico is advancing to the 2nd stage  Sept ’21  A new facility opened by NuScale in collaboration with the University of Idaho in Idaho Falls that will enable users learn about the functionality unique to NuScale’s SMR technology 

 Financials 

 Approximate Revenue Mix (2020)      Engineering  Workforce Solutions  By Segment  By Industry      Nuclear  Other Power      North America  Europe  By Geography      Utilities  Other  By End User    Asia & Other    Non-Power / Process 

 Annual Financial Highlights  Consolidated Orders (in $M)  Performance Engineering Orders (in $M)  Consolidated Orders & Revenue Trend (in $M)  Workforce Solutions Orders (in $M)          1 CAGR = Compound Annual Growth Rate2 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures; see GAAP to non-GAAP reconciliation in Appendix  

 Quarterly Financial Highlights  Consolidated Orders (in $M)  Performance Engineering Orders (in $M)  Consolidated Orders & Revenue Trend (in $M)  Workforce Solutions Orders (in $M)          1 CAGR = Compound Annual Growth Rate2 Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures; see GAAP to non-GAAP reconciliation in Appendix  

 Peer Group Analysis    Ticker *   Company   Stock Price*  Shares Outstanding  Market Cap  Cash  Debt  Enterprise Value   SALES(TTM)    EV/SALES(TTM)   GVP  GSE Solutions  $1.70  20.6  $35.02  $3.75  $12.50  $43.77  $53.02  0.83    Ticker*    Company   Stock Price*  Shares Outstanding  Market Cap  Cash  Debt  Enterprise Value  SALES(TTM)   EV/SALES(TTM)   NVEE  NV5 Global  $93.39  15.2  $1,419.53  $92.93  $172.34  $1,498.94  $646.91  2.32   WLMS  Williams Industrial Services Group  $5.78  25.9  $149.70  $5.44  $31.68  $175.94  $263.76  0.67   ATCX  Atlas Technical Consultants  $9.14  31.9  $291.57  $16.33  $445.44  $720.68  $482.18  1.49   LEU  Centrus Energy Corp.  $36.81  14.0  $515.34  $176.00  $105.00  $444.34  $244.50  1.82   SVIK.ST  Studsvik  86.00 SEK  8.2  706.8 SEK  86.9 SEK  121.5 SEK  757.42 SEK  765.23 SEK  0.99   DLHC  DLH Holdings Corp.  $10.97  12.5  $137.13  $0.42  $60.32  $197.03  $221.51  0.89   PESI  Perma-Fix Environmental Services  $6.39  12.2  $77.96  $0.71  $6.66  $83.91  $126.07  0.67     Peer Group                1.26   *As of 9/17/2021 and USD  Discount to Peer Group -47.56% 

 Looking to the Future 

   Investment Highlights    Global Blue Chip Client Base   Four decades serving a high-barrier-to-entry market Strong, enduring relationships with blue chip power and process companiesDiverse number of clients across entire power industry  Experience and skill-set to deliver operational improvementsLeadership with an “owner/operator” mentality Aligned with shareholders – CEO Top Five Shareholder of GSE  Aligned, ProvenLeadership    Recognition of nuclear as a critical source of resilient baseload carbon-free energy Environmentally-friendly Biden administration--ambitious plans to cut carbon emissionsAging workforce crisis / buoyant outlook for Small Modular Reactor (“SMR”) technology  Favorable Industry Drivers    Significant discount relative to industry peersGrowing Software as a Service (“SaaS”) revenue stream (higher multiple)  Attractive Valuation    Expertise from 50+ years of serving clients in the power and process sectorsProven and differentiated technology for simulation and training solutionsDifficult-to-replicate technology and base of talented, specialized employees  Highly Specialized Platform    Focus on growth, execute on exciting solutions roadmap Streamline operations, contain costs and maximize cash flow  Solid Growth Strategy 

 Photo courteous of NuScale    Capitalize on pent-up demand coming to market after COVID-19-driven delaysStrengthen divisional leadershipUnify engineering services under one umbrellaStreamline operations, contain costs and maximize cash flow Disciplined capital structure management and debt paydownDeliver on exciting solutions pipeline  Focus on Organic Growth & Operational Improvement  

 GSE SolutionsKyle LoudermilkPresident and CEOkyle.loudermilk@gses.com+1 410.970.7800  Connect With Us  Lytham PartnersAdam LowensteinerVice Presidentgvp@lythampartners.com+ 1 646.829.9702  www.linkedin.com/company/gse-solutions/  www.gses.com  investor@gses.com 

 Appendix 

 GSE Solutions Financial History1,2 and Balance Sheet Data  1 Excludes DP Engineering for periods prior to February 15, 2019; excludes True North prior to May 11, 2018 and excludes Absolute Consulting prior to September 20, 2017 2 EBITDA, Adjusted EBITDA, Adjusted net income and adjusted EPS are non-GAAP financial measures; see GAAP to non-GAAP reconciliation on pages 26 and 27 in the Appendix of this presentation.  Financial Summary1  Fiscal Year Ended            6 Months Ended    (in $ millions, except shares amounts)  2017  2018  2019  2020     Jun. 30, 2020  Jun. 30, 2021  Revenue  70.9   92.2   83.0   57.6      32.1   26.6   Gross Profit  18.5   23.1   20.3   14.8      7.7   5.6   Gross margin  26%  25%  24%  26%     24%  21%  Operating (loss) income  0.2   1.4   (7.4)  (9.5)     (8.0)  (3.5)  Operating margin  0%  1%  (9%)  (17%)     (25%)  (13%)  Net (loss) income  6.6   (0.4)  (12.1)  (10.5)     (8.4)  1.0   Diluted EPS  $0.33   ($0.02)  ($0.60)  ($0.52)     ($0.41)  $0.05   Diluted shares  19,605,427  19,704,999  20,062,021  20,439,157     20,375,446  20,638,116  EBITDA  1.5   3.7   (2.2)  (6.9)     (6.5)  2.1   Adjusted EBITDA  5.7   7.4   4.8   (0.3)     (0.8)  (1.2)  Adjusted net (loss) income  3.0   (3.6)  8.0   0.0      (1.6)  (1.6)  Adjusted EPS - diluted  $0.15   ($0.18)  $0.39   $0.00      ($0.08)  ($0.08)                  Balance Sheet (in $ millions)  Jun. 30, 2021              Cash and cash equivalents  3.8              Current assets  20.5              Total assets  40.1              Current liabilities  25.5              Total debt  12.4              Total stockholders' equity  13.0             

 GSE EBITDA & Adjusted EBITDA Reconciliation (in $ Thousands)1  EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles ("GAAP"). Management believes EBITDA and Adjusted EBITDA, in addition to GAAP measures, provide meaningful supplemental information regarding our operational performance. Our management uses EBITDA, Adjusted EBITDA, and other non-GAAP measures to evaluate the performance of our business and make certain operating decisions (e.g., budgeting, planning, employee compensation and resource allocation). This information facilitates management's internal comparisons to our historical operating results as well as to the operating results of our competitors. Since management finds these measures to be useful, we believe that our investors can benefit by evaluating both non-GAAP and GAAP results. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. A reconciliation of non-GAAP EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure (net income) in accordance with SEC Regulation G follows:  1 Excludes DP Engineering for periods prior to February 15, 2019; excludes True North prior to May 11, 2018 and excludes Absolute Consulting prior to September 20, 2017  Adjusted EBITDA Summary  Fiscal Year Ended           3 Months Ended    (in $ thousands)  2017  2018  2019  2020     Jun. 30, 2020  Jun. 30, 2021  Net (loss) income   6,557    (354)   (12,085)   (10,537)      (8,407)   1,026   Interest (expense) income, net   (80)   268    988    623       428    103   (Benefit) provision for income taxes   (6,153)   1,131    5,733    355       50    (39)  Depreciation and amortization   1,146    2,634    3,129    2,612       1,451    994   EBITDA   1,470    3,679    (2,235)   (6,947)      (6,478)   2,084   Acquisition-related expense   473    540    744    192       188    -   Acquisition-related settlement   -    -    (2,025)   -       -    -   Bad debt related to customer bankruptcy   122    85    -    -       -    -   Change in fair value of contingent consideration   446    -    (1,200)   -       (4)   -   Employee retention credit   -    -    -    -       -    (5,075)  Impact of the change in fair value of derivative instruments   (99)   350    13    17       -    -   Litigation   -    -    -    477       861    -   Loss on impairment   -    -    5,597    4,302       4,302    -   Restructuring charges   778    1,269    2,478    1,297       10    808   Stock-based compensation expense   2,472    1,526    1,420    378       324    501   VAT write-off   -    -    -    -       -    450   Adjusted EBITDA   5,662    7,449    4,792    (284)      (797)   (1,232) 

 Adjusted Net Income & Adjusted EPS Reconciliation (In $ Thousands, except share amounts)1,2  Adjusted Net Income and adjusted earnings (loss) per share (“adjusted EPS”) are not measures of financial performance under generally accepted accounting principles (“GAAP”). Management believes adjusted net income and adjusted EPS, in addition to GAAP measures, provide meaningful supplemental information regarding our operational performance. Our management uses Adjusted Net Income and other non-GAAP measures to evaluate the performance of our business and make certain operating decisions (e.g., budgeting, planning, employee compensation and resource allocation). This information facilitates management's internal comparisons to our historical operating results as well as to the operating results of our competitors. Since management finds these measures to be useful, we believe that our investors can benefit by evaluating both non-GAAP and GAAP results. Investors should recognize that Adjusted Net Income and Adjusted EPS might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with GAAP. A reconciliation of non-GAAP adjusted net income and adjusted EPS to GAAP net income, the most directly comparable GAAP financial measure, is as follows:  1 Excludes DP Engineering for periods prior to February 15, 2019; excludes True North prior to May 11, 2018 and excludes Absolute Consulting prior to September 20, 20172 Adjusted Net Income for prior periods does not include the impact on income tax expense of the adjustments  Adjusted Net Income (Loss) Summary  Fiscal Year Ended           3 Months Ended    (in $ thousands, except shares amounts)  2017  2018  2019  2020     Jun. 30, 2020  Jun. 30, 2021  Net (loss) income   6,557    (354)   (12,085)   (10,537)      (8,407)   1,026   Acquisition-related expense   473    540    744    192       188    -   Acquisition-related settlement   -    -    (2,025)   -       -    -   Amortization of intangible assets related to acquisitions   335    1,612    2,400    1,943       1,114    643   Bad debt related to customer bankruptcy   122    85    -    -       -    -   Change in fair value of contingent consideration   446    -    (1,200)   -       -    -   Employee retention credit   -    -    -    -       -    (5,075)  Impact of the change in fair value of derivative instruments   (99)   350    13    17       (4)   -   Litigation   -    -    -    477       861    -   Loss on impairment   -    -    5,597    4,302       4,302    -   Release of valuation allowance   (10,555)   (339)   6,820    1,589       -    -   Restructuring charges   778    1,269    2,478    1,297       10    808   Stock-based compensation expense   2,472    1,526    1,420    378       324    501   Tax reform impact   2,497    -    -    -       -    -   VAT write-off   -    -    -    -       -    450   Income tax expense impact of adjustments   -    (8,251)   3,851    345       -    -   Adjusted net income (loss)   3,026    (3,562)   8,013    3       (1,612)   (1,647)  Earnings (loss) per share - diluted  $0.33   ($0.02)  ($0.60)  ($0.52)     ($0.41)  $0.05   Adjusted earnings (loss) per share - diluted  $0.15   ($0.18)  $0.39   $0.00      ($0.08)  ($0.08)  Weighted average shares outstanding - diluted   19,605,427    19,922,151    20,376,255    20,439,157       20,375,446    20,638,116