Note 14 - Segment Information

6 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. Segment Information

The Company follows ASC280, “Segment Reporting,” which establishes standards for companies to report information about operating segments, geographic areas and major customers. The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies (see Note 1 to the Company’s Condensed Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended January 2, 2021).

Segment operating income (loss) includes selling, general and administrative expenses directly attributable to that segment as well as charges for allocating corporate costs to each of the operating segments. The following tables reflect the results of the reportable segments consistent with the Company’s management system:

Thirteen Week Period Ended July 3, 2021	Engineering		Specialty Health Care		Information Technology		Corporate			Total
Revenue	$	16,934	$	22,941	$	9,058	$	-		$	48,933
Cost of services		12,920		17,349		6,398		-			36,667
Gross profit		4,014		5,592		2,660		-			12,266
Selling, general and administrative		3,625		4,399		1,971		-			9,995
Depreciation and amortization of    property and equipment		153		80		26		-			259
Amortization of acquired intangible assets		9		-		-		-			9
Tax credit professional fees		-		-		-		60			60
Operating income (loss)	$	227	$	1,113	$	663	$	(60	)	$	1,943
Total assets as of July 3, 2021	$	30,050	$	20,064	$	8,187	$	6,396		$	64,697
Capital expenditures	$	30	$	39	$	3	$	22		$	94

Thirteen Week Period Ended June 27, 2020	Engineering		Specialty Health Care			Information Technology			Corporate		Total
Revenue	$	14,038	$	10,684		$	7,930		$	-	$	32,652
Cost of services		9,804		8,487			5,858			-		24,149
Gross profit		4,234		2,197			2,072			-		8,503
Selling, general and administrative		3,349		3,208			2,437			-		8,994
Depreciation and amortization of property and equipment		154		70			22			-		246
Amortization of acquired intangible assets		80		-			-			-		80
Write-off of receivables and professional fees incurred related to arbitration		350		-			-			-		350
Operating income (loss)	$	301	$	(1,081	)	$	(387	)	$	-	$	(1,167	)
Total assets as of June 27, 2020	$	40,699	$	15,570		$	7,815		$	6,094	$	70,178
Capital expenditures	$	21	$	-		$	20		$	75	$	116

Twenty-Six Week Period Ended July 3, 2021	Engineering		Specialty Health Care		Information Technology		Corporate			Total
Revenue	$	31,400	$	44,077	$	18,005	$	-		$	93,482
Cost of services		24,180		33,448		12,738		-			70,366
Gross profit		7,220		10,629		5,267		-			23,116
Selling, general and administrative		6,697		8,464		3,903		-			19,064
Depreciation and amortization of    property and equipment		308		161		56		-			525
Amortization of acquired intangible assets		89		-		-		-			89
Tax credit professional fees		-		-		-		120			120
Operating income (loss)	$	126	$	2,004	$	1,308	$	(120	)	$	3,318
Total assets as of July 3, 2021	$	30,050	$	20,064	$	8,187	$	6,396		$	64,697
Capital expenditures	$	39	$	67	$	9	$	26		$	141

Twenty-Six Week Period Ended June 27, 2020	Engineering			Specialty Health Care			Information Technology			Corporate		Total
Revenue	$	28,201		$	32,881		$	16,603		$	-	$	77,685
Cost of services		20,001			26,311			12,027			-		58,339
Gross profit		8,200			6,570			4,576			-		19,346
Selling, general and administrative		6,723			7,682			4,826			-		19,231
Depreciation and amortization of property and equipment		312			147			42			-		501
Amortization of acquired intangible assets		160			-			-			-		160
Write-off of receivables and professional fees incurred related to arbitration		8,397			-			-			-		8,397
Operating income (loss)	$	(7,392	)	$	(1,259	)	$	(292	)	$	-	$	(8,943	)
Total assets as of June 27, 2020	$	40,699		$	15,570		$	7,815		$	6,094	$	70,178
Capital expenditures	$	30		$	10		$	35		$	76	$	151

The Company derives a majority of its revenue from offices in the United States. Revenue reported for each operating segment are all from external customers. The Company is domiciled in the United States and its segments operate in the United States, Canada, Puerto Rico and Serbia. Revenue by geographic area for the thirteen and twenty-six week periods ended July 3, 2021 and June 27, 2020 are as follows:

	Thirteen Week Periods Ended				Twenty-Six Week Periods Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Revenue
U. S.	$	43,746	$	26,989	$	82,753	$	66,165
Canada		3,074		3,641		6,459		7,643
Puerto Rico		1,368		1,383		2,883		2,585
Serbia		745		639		1,387		1,292
	$	48,933	$	32,652	$	93,482	$	77,685

Total assets by geographic area as of the reported periods are as follows:

	July 3, 2021		January 2, 2021
Total assets
U. S.	$	54,095	$	56,308
Canada		5,626		7,067
Puerto Rico		1,511		1,483
Serbia		3,465		3,481
	$	64,697	$	68,339