10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 001-33045

 

ICF International, Inc.

(Exact name of Registrant as Specified in its Charter)

 

 

Delaware

 

22-3661438

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1902 Reston Metro Plaza, Reston VA

 

20190

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (703) 934-3000

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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

 

Title of each class

Trading Symbols(s)

Name of each exchange on which registered

Common Stock

ICFI

The NASDAQ Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of ‘‘large accelerated filer,’’ ‘‘accelerated filer,’’ ‘‘smaller reporting company,’’ and ‘‘emerging growth company’’ in Rule 12b–2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

As of April 28, 2023, there were 18,788,082 shares outstanding of the registrant’s common stock.

 

 


 

ICF INTERNATIONAL, INC. AND SUBSIDIARIES

QUARTERLY REPORT ON FORM 10-Q FOR THE

PERIOD ENDED MARCH 31, 2023

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

3

 

 

Item 1.

Financial Statements

3

 

Consolidated Balance Sheets at March 31, 2023 (Unaudited) and December 31, 2022

3

 

Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2023 and 2022

4

 

Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2023 and 2022

5

 

Notes to Consolidated Financial Statements

6

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

 

Item 4.

Controls and Procedures

29

 

PART II. OTHER INFORMATION

30

 

Item 1.

Legal Proceedings

30

 

Item 1A.

Risk Factors

30

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

30

 

Item 3.

Defaults Upon Senior Securities

30

 

Item 4.

Mine Safety Disclosures

30

 

Item 5.

Other Information

30

 

Item 6.

Exhibits

31

 

 


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ICF International, Inc. and Subsidiaries

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands, except share and per share amounts)

 

March 31, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,364

 

 

$

11,257

 

Restricted cash

 

 

3,572

 

 

 

1,711

 

Contract receivables, net

 

 

221,066

 

 

 

232,337

 

Contract assets

 

 

188,093

 

 

 

169,088

 

Prepaid expenses and other assets

 

 

28,341

 

 

 

40,709

 

Income tax receivable

 

 

8,420

 

 

 

11,616

 

Total Current Assets

 

 

454,856

 

 

 

466,718

 

Property and Equipment, net

 

 

85,445

 

 

 

85,402

 

Other Assets:

 

 

 

 

 

 

Goodwill

 

 

1,213,908

 

 

 

1,212,898

 

Other intangible assets, net

 

 

116,430

 

 

 

126,537

 

Operating lease - right-of-use assets

 

 

150,511

 

 

 

149,066

 

Other assets

 

 

51,280

 

 

 

51,637

 

Total Assets

 

$

2,072,430

 

 

$

2,092,258

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Current portion of long-term debt

 

$

26,000

 

 

$

23,250

 

Accounts payable

 

 

109,854

 

 

 

135,778

 

Contract liabilities

 

 

25,771

 

 

 

25,773

 

Operating lease liabilities - current

 

 

16,124

 

 

 

19,305

 

Finance lease liabilities - current

 

 

2,400

 

 

 

2,381

 

Accrued salaries and benefits

 

 

61,428

 

 

 

85,991

 

Accrued subcontractors and other direct costs

 

 

43,109

 

 

 

45,478

 

Accrued expenses and other current liabilities

 

 

67,089

 

 

 

78,036

 

Total Current Liabilities

 

 

351,775

 

 

 

415,992

 

Long-term Liabilities:

 

 

 

 

 

 

Long-term debt

 

 

571,979

 

 

 

533,084

 

Operating lease liabilities - non-current

 

 

189,331

 

 

 

182,251

 

Finance lease liabilities - non-current

 

 

15,508

 

 

 

16,116

 

Deferred income taxes

 

 

69,343

 

 

 

68,038

 

Other long-term liabilities

 

 

27,805

 

 

 

23,566

 

Total Liabilities

 

 

1,225,741

 

 

 

1,239,047

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 17)

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

 

Preferred stock, par value $.001; 5,000,000 shares authorized; none issued

 

 

 

 

 

 

Common stock, par value $.001; 70,000,000 shares authorized; 23,919,338 and 23,771,596 shares issued at March 31, 2023 and December 31, 2022, respectively; 18,788,082 and 18,883,050 shares outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

24

 

 

 

23

 

Additional paid-in capital

 

 

405,818

 

 

 

401,957

 

Retained earnings

 

 

716,795

 

 

 

703,030

 

Treasury stock, 5,131,256 and 4,906,209 shares at March 31, 2023 and December 31, 2022 respectively

 

 

(266,481

)

 

 

(243,666

)

Accumulated other comprehensive loss

 

 

(9,467

)

 

 

(8,133

)

Total Stockholders’ Equity

 

 

846,689

 

 

 

853,211

 

Total Liabilities and Stockholders’ Equity

 

$

2,072,430

 

 

$

2,092,258

 

The accompanying notes are an integral part of these consolidated financial statements.

3


 

ICF International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

 

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands, except per share amounts)

 

2023

 

 

2022

 

Revenue

 

$

483,282

 

 

$

413,468

 

Direct costs

 

 

312,565

 

 

 

258,158

 

Operating costs and expenses:

 

 

 

 

 

 

Indirect and selling expenses

 

 

123,733

 

 

 

117,452

 

Depreciation and amortization

 

 

6,309

 

 

 

4,838

 

Amortization of intangible assets

 

 

9,224

 

 

 

5,317

 

Total operating costs and expenses

 

 

139,266

 

 

 

127,607

 

 

 

 

 

 

 

Operating income

 

 

31,451

 

 

 

27,703

 

Interest, net

 

 

(9,457

)

 

 

(2,627

)

Other expense

 

 

(558

)

 

 

(439

)

Income before income taxes

 

 

21,436

 

 

 

24,637

 

Provision for income taxes

 

 

5,038

 

 

 

6,775

 

Net income

 

$

16,398

 

 

$

17,862

 

 

 

 

 

 

 

Earnings per Share:

 

 

 

 

 

 

Basic

 

$

0.87

 

 

$

0.95

 

Diluted

 

$

0.87

 

 

$

0.94

 

 

 

 

 

 

 

Weighted-average Shares:

 

 

 

 

 

 

Basic

 

 

18,779

 

 

 

18,795

 

Diluted

 

 

18,949

 

 

 

19,012

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.14

 

 

$

0.14

 

 

 

 

 

 

 

Other comprehensive (loss) income, net of tax

 

 

(1,334

)

 

 

2,659

 

Comprehensive income, net of tax

 

$

15,064

 

 

$

20,521

 

 

The accompanying notes are an integral part of these consolidated financial statements.

4


 

ICF International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands)

 

2023

 

 

2022

 

Cash Flows from Operating Activities

 

 

 

 

 

 

Net income

 

$

16,398

 

 

$

17,862

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Provision for (recovery of) credit losses

 

 

567

 

 

 

(170

)

Deferred income taxes

 

 

2,187

 

 

 

4,505

 

Non-cash equity compensation

 

 

3,750

 

 

 

3,563

 

Depreciation and amortization

 

 

15,533

 

 

 

10,154

 

Facilities consolidation reserve

 

 

 

 

 

(78

)

Amortization of debt issuance costs

 

 

326

 

 

 

154

 

Impairment of long-lived assets

 

 

894

 

 

 

 

Other adjustments, net

 

 

(827

)

 

 

353

 

Changes in operating assets and liabilities, net of the effects of acquisitions:

 

 

 

 

 

 

Net contract assets and liabilities

 

 

(18,716

)

 

 

(59,689

)

Contract receivables

 

 

10,929

 

 

 

31,473

 

Prepaid expenses and other assets

 

 

15,353

 

 

 

(11,708

)

Operating lease assets and liabilities, net

 

 

1,016

 

 

 

(532

)

Accounts payable

 

 

(26,083

)

 

 

(9,815

)

Accrued salaries and benefits

 

 

(24,678

)

 

 

9,513

 

Accrued subcontractors and other direct costs

 

 

(2,613

)

 

 

1,078

 

Accrued expenses and other current liabilities

 

 

(14,688

)

 

 

(6,883

)

Income tax receivable and payable

 

 

3,192

 

 

 

2,621

 

Other liabilities

 

 

629

 

 

 

544

 

Net Cash Used in Operating Activities

 

 

(16,831

)

 

 

(7,055

)

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

 

Capital expenditures for property and equipment and capitalized software

 

 

(6,441

)

 

 

(6,454

)

Payments for business acquisitions, net of cash acquired

 

 

(459

)

 

 

 

Net Cash Used in Investing Activities

 

 

(6,900

)

 

 

(6,454

)

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

Advances from working capital facilities

 

 

334,995

 

 

 

329,690

 

Payments on working capital facilities

 

 

(293,640

)

 

 

(291,662

)

Other short-term borrowings

 

 

2,483

 

 

 

 

Receipt of restricted contract funds

 

 

2,916

 

 

 

4,301

 

Payment of restricted contract funds

 

 

(1,131

)

 

 

(14,714

)

Payments of principal portion of finance leases

 

 

(590

)

 

 

 

Proceeds from exercise of options

 

 

111

 

 

 

92

 

Dividends paid

 

 

(2,641

)

 

 

(2,644

)

Net payments for stock issuances and buybacks

 

 

(22,815

)

 

 

(22,268

)

Payments on business acquisition liabilities

 

 

 

 

 

(121

)

Net Cash Provided by Financing Activities

 

 

19,688

 

 

 

2,674

 

Effect of Exchange Rate Changes on Cash, Cash Equivalents, and Restricted Cash

 

 

11

 

 

 

(525

)

 

 

 

 

 

 

 

Decrease in Cash, Cash Equivalents, and Restricted Cash

 

 

(4,032

)

 

 

(11,360

)

Cash, Cash Equivalents, and Restricted Cash, Beginning of Period

 

 

12,968

 

 

 

20,433

 

Cash, Cash Equivalents, and Restricted Cash, End of Period

 

$

8,936

 

 

$

9,073

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

Interest

 

$

5,924

 

 

$

2,760

 

Income taxes

 

$

914

 

 

$

949

 

Non-cash investing and financing transactions:

 

 

 

 

 

 

Tenant improvements funded by lessor

 

$

 

 

$

10,843

 

The accompanying notes are an integral part of these consolidated financial statements.

5


 

Notes to Consolidated Financial Statements

(Unaudited)

(dollar amounts in tables in thousands, except share and per share data)

NOTE 1 – BASIS OF PRESENTATION AND NATURE OF OPERATIONS

Basis of Presentation

The accompanying consolidated financial statements include the accounts of ICF International, Inc. (“ICFI”) and its principal subsidiary, ICF Consulting Group, Inc. (“Consulting,” and together with ICFI, the “Company”), and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”). Consulting is a wholly owned subsidiary of ICFI. ICFI is a holding company with no operations or assets other than its investment in the common stock of Consulting. All other subsidiaries of the Company are wholly owned by Consulting. Material intercompany transactions and balances have been eliminated.

Nature of Operations

The Company provides professional services and technology-based solutions, including management, marketing, technology, and policy consulting and implementation services, in the areas of energy, environment, infrastructure and disaster recovery; health and social programs; and security and other civilian/commercial. The Company offers a full range of services to clients throughout the entire life cycle of a policy, program, project, or initiative, from research and analysis, assessment, and advice to design and implementation of programs and technology-based solutions, and the provision of engagement services and programs.

The Company’s major customers are U.S. federal government departments and agencies. The Company also serves U.S. state (including territories) and local government departments and agencies, international governments, and commercial clients worldwide. Commercial clients include airlines, airports, electric and gas utilities, health care companies, banks and other financial services companies, transportation, travel and hospitality firms, non-profit associations, manufacturing firms, retail chains, and distribution companies. The term “federal” or “federal government” refers to the U.S. federal government, and “state and local” or “state and local government” refers to U.S. state (including territories) and local governments, unless otherwise indicated.

The Company, incorporated in Delaware, is headquartered in Reston, Virginia. The Company maintains additional offices throughout the world, including more than 50 offices in the U.S. and U.S. territories and more than 20 offices in key markets outside the U.S., including offices in the United Kingdom, Belgium, India, and Canada.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Areas of the consolidated financial statements where estimates may have the most significant effect include contractual and regulatory reserves, valuation and lives of tangible and intangible assets, impairment of goodwill and long-lived assets, accrued liabilities, revenue recognition (including estimates of variable considerations in determining the total contract price and allocation of performance obligations), the remaining costs to complete fixed-price contracts, bonus and other incentive compensation, stock-based compensation, reserves for tax benefits and valuation allowances on deferred tax assets, provisions for income taxes, collectability of receivables, and loss accruals for litigation. Actual results experienced by the Company may differ from management's estimates.

Interim Results

The unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These rules and regulations permit some of the information and footnote disclosures normally included in financial statements, prepared in accordance with U.S. GAAP, to be condensed or omitted. In management’s opinion, the unaudited consolidated financial statements contain all adjustments that are of a normal recurring nature, necessary for a fair presentation of the results of operations and financial position of the Company for the interim periods presented. The Company reports operating results and financial data in one operating segment and reporting unit. Operating results for the three months periods ended March 31, 2023 and 2022 are not necessarily indicative of the results that may be expected for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2022 and the notes thereto included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 1, 2023.

 

6


 

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

 

Reference Rate Reform

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard is intended to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease accounting and financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The provisions of this ASU are elective and apply to all entities, subject to meeting certain criteria, that have debt or hedging contracts, among other contracts, that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Entities can elect to not apply certain modification accounting requirements to contracts affected by reference rate reform if certain criteria are met. Also, entities can elect various optional expedients that would allow it to continue to apply hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met. This guidance was effective beginning on March 12, 2020 and entities may elect to apply the amendments prospectively through December 31, 2022, the sunset date. In December 2022, the FASB issued ASU 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 that extended the sunset date from December 31, 2022 to December 31, 2024.

As of March 31, 2023, the Company has one interest rate swap contract with a variable interest rate that references LIBOR. The contract expires on August 31, 2023.

 

Reclassification

Certain immaterial amounts in the consolidated statements of comprehensive income have been reclassified to conform to the current year’s presentation. To be consistent with the current presentation of interest, net, the Company reclassified $0.1 million in interest income for the three months ended March 31, 2022 from “Other expense” to “Interest, net”.

NOTE 2 – RESTRICTED CASH

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets for the periods presented to the total of cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows for the three months ended March 31, 2023 and 2022:

 

 

 

March 31, 2023

 

 

March 31, 2022

 

 

 

Beginning

 

 

Ending

 

 

Beginning

 

 

Ending

 

Cash and cash equivalents

 

$

11,257

 

 

$

5,364

 

 

$

8,254

 

 

$

7,392

 

Restricted cash

 

 

1,711

 

 

 

3,572

 

 

 

12,179

 

 

 

1,681

 

Total of cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows

 

$

12,968

 

 

$

8,936

 

 

$

20,433

 

 

$

9,073

 

 

7


 

NOTE 3 – CONTRACT RECEIVABLES, NET

Contract receivables, net consisted of the following:

 

 

 

March 31, 2023

 

 

December 31, 2022

 

Billed and billable

 

$

227,589

 

 

$

238,449

 

Allowance for expected credit losses

 

 

(6,523

)

 

 

(6,112

)

Contract receivables, net

 

$

221,066

 

 

$

232,337

 

 

On December 23, 2022, the Company entered into a Master Receivables Purchase Agreement (the “MRPA”) with MUFG Bank, Ltd. (“MUFG”) for the sale from time to time of certain eligible billed receivables. The purchase price of each receivable is equal to the net invoice amount minus a specified discount. The receivables are sold without recourse and the Company does not retain any ongoing financial interest in the transferred receivables other than providing servicing activities. The Company accounts for the transfers as sales under ASC 860, Transfers and Servicing, derecognizes the receivables from its consolidated balance sheets at the date of the sale, and includes the cash received from MUFG as part of cash flows from operating activities on its consolidated statement of cash flows.

During the three months ended March 31, 2023, the Company sold $28.6 million in billed receivables to MUFG. At March 31, 2023 and December 31, 2022, the Company had $13.2 million and $6.2 million, respectively, in cash collections from previously sold invoices to be remitted to MUFG which is included as part of “accrued expenses and other current liabilities” on the consolidated balance sheets.

NOTE 4 – LEASES

The Company has operating and finance leases for facilities and equipment which have remaining terms ranging from 1 to 16 years. The leases may include options to extend the lease periods for up to 5 years at rates approximating market rates and/or options to terminate the leases within 1 year. The leases may include a residual value guarantee or a responsibility to return the property to its original state of use. A limited number of leases contain provisions that provide for rental increases based on consumer price indices. The change in lease cost resulting from changes in these indices is included within variable lease cost.

The Company’s lease cost is recognized on a straight-line basis over the lease term. Lease cost consists of the following:

 

 

 

Three Months Ended

 

 

 

March 31, 2023

 

 

March 31, 2022

 

Operating lease cost

 

$

6,489

 

 

$

9,502

 

Finance lease cost - amortization of right-of-use assets

 

 

494

 

 

 

 

Finance lease cost - interest

 

 

152

 

 

 

 

Short-term lease cost

 

 

149

 

 

 

133

 

Variable lease cost

 

 

55

 

 

 

20

 

Sublease income

 

 

(28

)

 

 

(10

)

 Total lease cost

 

$

7,311

 

 

$

9,645

 

 

Future minimum lease payments under non-cancellable operating and finance leases as of March 31, 2023 were as follows:

 

 

 

Operating

 

 

Finance

 

March 31, 2024

 

$

18,582

 

 

$

2,967

 

March 31, 2025

 

 

28,674

 

 

 

2,967

 

March 31, 2026

 

 

26,939

 

 

 

2,967

 

March 31, 2027

 

 

23,322

 

 

 

2,967

 

March 31, 2028

 

 

17,024

 

 

 

2,967

 

Thereafter

 

 

139,443

 

 

 

5,192

 

Total future minimum lease payments

 

 

253,984

 

 

 

20,027

 

Less: Interest

 

 

(48,529

)

 

 

(2,119

)

Total lease liabilities

 

$

205,455

 

 

$

17,908

 

 

8


 

Other information related to operating and finance leases is as follows:

 

 

March 31, 2023

 

 

March 31, 2022

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash outflows for operating leases

 

$

4,982

 

 

$

10,110

 

Operating cash outflows for finance leases

 

 

152

 

 

 

 

Financing cash outflows for finance leases

 

 

590

 

 

 

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

8,900

 

 

$

2,952

 

Weighted-average remaining lease term

 

 

 

 

 

 

Operating leases

 

 

11.6

 

 

 

11.5

 

Finance leases

 

 

6.8

 

 

 

 

Weighted-average discount rate

 

 

 

 

 

 

Operating leases

 

 

3.5

%

 

 

3.2

%

Finance leases

 

 

3.4

%

 

 

 

 

NOTE 5 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

At March 31, 2023 and December 31, 2022, accrued expenses and other current liabilities consisted of the following:

 

 

March 31, 2023

 

 

December 31, 2022

 

Deposits

$

22,792

 

$

32,384

 

Restricted contract funds

 

3,562

 

 

 

1,701

 

IT and software licensing costs

 

1,285

 

 

 

1,609

 

Taxes and insurance premiums

 

4,834

 

 

 

6,633

 

Facilities rental and lease exit costs

 

1,846

 

 

 

2,043

 

Interest