Financial Analysis

6. ACQUISITIONS AND DIVESTITURES The purchase method of accounting in accordance with FASB ASC 805, Business Combination, was applied for all acquisitions. This requires the cost of an acquisition to be allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective fair values at the date of acquisition with the excess cost accounted for as goodwill. Goodwill arising from the acquisitions is attributable to expected sales synergies from combining the operations of the acquired business with those of the Company. As of January 3, 2026, there are no active acquisitions whereby contingent consideration could be paid. The changes in the liability for contingent consideration from acquisitions for the fiscal years ended January 3, 2026 and December 28, 2024 are as follows: Balance as of December 30, 2023 $ 1,971 Remeasurement of contingent consideration (1,759 ) Balance as of December 28, 2024 $ 212 Contingent payments - cash (212 ) Balance as of January 3, 2026 $ - For acquisitions that involve contingent consideration, the Company records a liability equal to the fair value of the estimated contingent consideration obligation as of the acquisition date. The Company determines the acquisition date fair value of the contingent consideration based on the likelihood of paying the additional consideration. The fair value is estimated using projected future operating results and the corresponding future earn-out payments that ca …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

18. LEASES Leases are recorded in accordance with FASB ASC 842, Leases which requires lessees to recognize a right of use (ROU) asset and an operating right of use liability for all leases with terms greater than 12 months and requires disclosures by lessees and lessors about the amount, timing and uncertainty of cash flows arising from leases. The Company determines if an arrangement is a lease at inception. For leases where the Company is the lessee, right of use assets represent the Companys right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Companys leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments . The right of use asset also consists of any lease incentives received. The lease terms used to calculate the right of use asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciati …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

9. LINE OF CREDIT On February 20, 2026, the Company amended (Amendment 1 ) the Fifth Amended and Restated Loan Agreement, dated as of December 3, 2024, with Citizens Bank. Under Amendment 1, the total commitment is increased from a maximum limit of $65.0 million to a maximum limit of $75.0 million. The increased limit shall apply from February 20, 2026 through August 31, 2026. From and after September 1, 2026 through the Maturity Date of the Fifth Amended and Restated Loan Agreement, the total commitment shall revert to $65.0 million. All other material terms remain unchanged. On December 3, 2024, the Company entered into a Fifth Amended and Restated Loan Agreement (the Fifth Amended and Restated Loan Agreement) with Citizens Bank, N.A., as lender (in such capacity, the Lender) and as administrative agent and arranger (in such capacity, the Administrative Agent), to amend and restate in its entirety that certain Fourth Amended and Restated Agreement dated as of April 24, 2023 ( as the same has been amended and modified prior to the date hereof, the Existing Loan Agreement). The Fifth Amended and Restated Loan Agreement is increased from $45.0 million under the Fourth Amended and Restated Agreement to $65.0 million (with an accordion feature permitting the increase of the total commitment by an additional $20.0 million, subject to the consent of the Administrative Agent and the Lenders), and permits the Borrowers to request the issuance of trade and standby letters of credit t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

January 3, 2026 December 28, 2024 Specialty Health Care: Time and Material $ 162,602 $ 141,185 Permanent Placement Services 1,502 1,494 Total Specialty Health Care $ 164,104 $ 142,679 Engineering: Time and Material $ 58,743 $ 47,157 Fixed Fee 61,743 49,302 Permanent Placement Services - - Total Engineering $ 120,486 $ 96,459 Life Sciences, Data and Solutions: Time and Material $ 23,172 $ 30,547 Fixed Fee 11,450 8,452 Permanent Placement Services 192 243 Total Life Sciences, Data and Solutions $ 34,814 $ 39,242 $ 319,404 $ 278,380

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11. SHARE BASED COMPENSATION As of January 3, 2026, the Company had three share-based employee compensation plans, the Employee Stock Purchase Plan, the 2014 Omnibus Equity Compensation Plan, and the 2025 Omnibus Equity Compensation Plan. The Company measures the fair value of share-based awards, if and when granted, based on the Black-Scholes method and using the closing market price of the Companys common stock on the date of grant. Awards typically vest over periods ranging from one to five years and expire within 10 years of issuance. The Company may also issue immediately vested equity awards. Share-based compensation expense related to time-based awards is amortized in accordance with applicable vesting periods using the straight-line method. The Company expenses performance-based awards only when the performance metrics are likely to be achieved and the associated awards are therefore likely to vest. Performance-based share awards that are likely to vest are also expensed on a straight-line basis over the vesting period but may vest on a retroactive basis or be reversed, depending on when it is determined that they are likely to vest, or in the case of a reversal when they are later determined to be unlikely to vest or forfeited. Discussion of share and share-based awards herein references awards of shares and share units. Share-based compensation expense of $3.7 million and $2.9 million was recognized for the fiscal years ended January 3, 2026 and December 28, 2024, r …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

15. INCOME TAXES The components of earnings before income taxes by United States and foreign jurisdictions were as follows: Fiscal Years Ended January 3, 2026 December 28, 2024 United States $ 17,192 $ 16,607 Foreign jurisdictions 4,880 3,583 $ 22,072 $ 20,190 The components of income tax expense (benefit) are as follows: Fiscal Years Ended January 3, 2026 December 28, 2024 Current Federal $ 1,619 $ 2,609 State and local 1,556 611 Foreign 1,302 942 4,477 4,162 Deferred Federal 662 2,343 State 485 611 Foreign 114 (253 ) 1,261 2,701 Total $ 5,738 $ 6,863 Generally, the Companys relative income or loss generated in each of its jurisdictions can materially impact the consolidated effective income tax rate of the Company, particularly the ratio of Canadian, German and Serbian pretax income, versus United States pretax income. The consolidated effective income tax rate for the fiscal years ended January 3, 2026 and December 28, 2024 were 26.0% and 34.0%, respectively. The Companys United States Federal statutory tax rate for the fiscal years ended January 3, 2026 and December 28, 2024, before any adjustments, was 21.0%. The following is a reconciliation of the statutory federal income tax rate to the Companys effective tax rate for the fifty-three weeks ended January 3, 2026, updated for the new guidelines within ASU 2023 - 09, which the Company adopted prospectively: Amount % of Earnings Before Taxes Tax expense on taxable income at federal statutory rate $ 4,635 21.0 State income …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

17. RETIREMENT PLANS The Company maintains a 401 (k) profit sharing plan for the benefit of eligible employees in the United States and other similar plans in Canada, Philippines, Puerto Rico and Serbia (the Retirement Plans). The 401 (k) plan includes a cash or deferred arrangement pursuant to Section 401 (k) of the Internal Revenue Code sponsored by the Company to provide eligible employees an opportunity to defer compensation and have such deferred amounts contributed to the 401 (k) plan on a pre-tax basis, subject to certain limitations. The Company, at the discretion of the Board of Directors, may make contributions of cash to match deferrals of compensation by participants in the Retirement Plans. Contributions to the Retirement Plans charged to operations by the Company for the fiscal years ended January 3, 2026 and December 28, 2024 were $384 and $460, respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

14. SEGMENT INFORMATION The Company follows ASC 280, 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 Companys Consolidated Financial Statements). The Company reports segment information based on the management approach, which designates the internal reporting used by the Chief Operating Decision Makers (CODMs), who were Bradley Vizi, Chief Executive Officer, and Kevin Miller. Chief Financial Officer. The Companys CODMs are responsible for making decisions regarding the Companys business, including resource allocations and performance assessments based on historical and future segment revenue, operating expenses, and operating income (loss) before interest and taxes. In the second quarter of fiscal 2025, the Company made certain revisions to the internal measurement of segment operating results for the purpose of evaluating segment performance and resource allocation. The revised segment reporting now presents corporate operating costs separately instead of allocating them to the operating segments. The revision was the result of a shift in the CODMs more granular and independent focus on the now four segments. We have presented the revised segment results for both fiscal 2025 and the prior period on a comparable basis. The follow …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

19. SUBSEQUENT EVENTS For the period subsequent to January 3, 2026 and through April 2, 2026, the Company purchased 348,366 shares of the Companys common stock as part of its Treasury Stock Repurchase Program, at an average price of $19.03, totaling $6.6 million. As of April 2, 2026, the Company has up to $28.3 million available for future treasury stock purchases. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing