Segment Information

12 Months Ended

Dec. 31, 2023

Segment Information [Abstract]

Segment Information

18.  Segment Information

We have two reportable business segments for which the Company’s president and CEO is the chief operating decision maker (CODM) for both. The Engineering segment provides simulation, training and engineering products and services delivered across the breadth of industries we serve. Workforce Solutions include simulation for both training and engineering applications. Example 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 American Society of Mechanical Engineers (“ASME”) code and ASME Section XI. The Company provides these services across all market segments through our Systems & Simulation, Programs & Performance, and Design & Analysis subsidiaries. Example training applications include turnkey and custom training services. Contract terms are typically less than two years.

Workforce Solutions segment provides specialized workforce solutions primarily to the nuclear industry, working at clients’ facilities. This business is managed through our Training Services and Technical Staffing 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.

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.

(in thousands)	Years ended December 31,
	2023			2022
Revenue:
Engineering	$	31,790		$	29,919
Workforce Solutions		13,251			17,815
Total revenue		45,041			47,734
Gross profit
Engineering		10,073			9,557
Workforce Solutions		1,857			2,353
Total gross profit		11,930			11,910
Operating loss
Engineering		(3,789	)		(6,388	)
Workforce Solutions		(3,029	)		(8,018	)
Operating loss		(6,818	)		(14,406	)
Interest expense		(1,932	)		(1,272	)
Change in fair value of derivative instruments, net		850			477
Other (loss) income, net		(802	)		(91	)
Loss before taxes	$	(8,702	)	$	(15,292	)

The operating loss above for the years ended December 31, 2023 and 2022 include goodwill and intangible asset impairment charges of $1.4 million and $7.5 million for Workforce Solutions, respectively.

Additional information relating to segments is as follows:

(in thousands)	December 31,
	2023		2022
Engineering	$	20,980	$	21,705
Workforce Solutions		1,825		4,791
Total assets	$	22,805	$	26,496

For the years ended December 31, 2023 and 2022, 92% and 89%, respectively, of our consolidated revenue was from customers in the nuclear power industry. We design, develop and deliver business and technology solutions to the energy industry worldwide. Revenue, operating (loss) income and total assets for our United States, European, and Asian subsidiaries as of and for the years ended December 31, 2023 and 2022 are as follows:

(in thousands)	Year ended December 31, 2023
	United States			Asia			Consolidated
Revenue	$	44,040		$	1,001		$	45,041
Operating loss	$	(6,676	)	$	(142	)	$	(6,818	)
Net assets, at December 31	$	21,202		$	1,603		$	22,805

(in thousands)	Year ended December 31, 2022
	United States			Asia			Consolidated
Revenue	$	46,622		$	1,112		$	47,734
Operating loss	$	(14,225	)	$	(181	)	$	(14,406	)
Net assets, at December 31	$	24,631		$	1,865		$	26,496

Revenues by geographic location above are attributed to the contracting entity.  Therefore, revenues from a foreign customer that contracted directly with our U.S. entity are included in revenues from the United States. All revenues in Asia were attributable to our Chinese subsidiary.

Alternatively, revenue from customers domiciled in foreign countries were approximately 12% and 16%, of our consolidated 2023 and 2022 revenue, respectively.  Revenue from foreign countries where our customers reside were all individually less than 10% of our consolidated revenue during 2023 and 2022.