Note 4 - Accounts Receivable, Transit Accounts Receivable and Transit Accounts Payable

12 Months Ended

Dec. 30, 2017

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

4. ACCOUNTS RECEIVABLE, TRANSIT ACCOUNTS RECEIVABLE AND TRANSIT ACCOUNTS PAYABLE

The Company

’s accounts receivable are comprised as follows:

	December 30, 2017			December 31, 2016
Billed	$	31,448		$	34,463
Accrued and unbilled		10,573			6,894
Work-in-progress		5,026			5,215
Allowance for sales discounts and doubtful accounts		(967	)		(1,402	)
Accounts receivable, net	$	46,080		$	45,170

Unbilled receivables primarily represent revenues earned whereby those services are ready to be billed as of the balance sheet ending date. Work-in-pro

gress primarily represents revenues earned under contracts which the Company contractually invoices at future dates.

The Company has a dispute with a customer that is a major utility in the United States. Essentially, the customer has

not

paid the balance of accounts receivable the Company believes are owed to the Company. The Company recently compelled arbitration with this customer. The total amount due from this customer is

$6.9

million, subject to an upward adjustment following disclosures by the customer in the arbitration. Additionally, as part of the arbitration process, the customer has asserted counter claims of

$9.3

million. The Company also believes these counter claims were retaliatory in nature. Prior to the arbitration, the customer had

not

asserted any claims. The Company believes these asserted claims have

no

merit and were merely asserted as a strategy to reduce the Company’s claims in any arbitration award or potential settlement agreement. The Company believes that its accounts receivable balance, subject to reserves, is collectible. Furthermore, the Company believes that this arbitration will conclude sometime in fiscal year

2018.

While the Company believes the customer’s counter claims to be frivolous and without merit, it can give

no

assurances that it will ultimately

not

have to pay all or a portion of such claims.