2021 Q2 Form 10-Q Financial Statement

#000121070821000160 Filed on August 06, 2021

View on sec.gov

Income Statement

Concept 2021 Q2 2020 Q2 2020 Q1
Revenue $39.67M $24.57M $24.13M
YoY Change 61.45% -6.97% 49.08%
Cost Of Revenue $24.58M $15.60M $14.30M
YoY Change 57.58% 5.73% 110.57%
Gross Profit $15.09M $8.900M $9.800M
YoY Change 69.56% -23.66% 4.3%
Gross Profit Margin 38.04% 36.22% 40.61%
Selling, General & Admin $14.68M $9.800M $10.30M
YoY Change 49.83% -20.97% -9.65%
% of Gross Profit 97.3% 110.11% 105.1%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $113.0K $30.00K $24.00K
YoY Change 276.67% 50.0% 33.33%
% of Gross Profit 0.75% 0.34% 0.24%
Operating Expenses $39.38M $25.46M $24.66M
YoY Change 54.69% -6.43% 35.7%
Operating Profit $295.0K -$883.0K -$524.0K
YoY Change -133.41% 11.49% -73.56%
Interest Expense $9.000K $40.00K $79.00K
YoY Change -77.5% -68.0% -74.76%
% of Operating Profit 3.05%
Other Income/Expense, Net -$37.00K $337.0K $41.00K
YoY Change -110.98% -470.33% -210.81%
Pretax Income $267.0K -$506.0K -$404.0K
YoY Change -152.77% -33.25% -76.32%
Income Tax $389.0K $266.0K $107.0K
% Of Pretax Income 145.69%
Net Earnings -$122.0K -$772.0K -$511.0K
YoY Change -84.2% -14.22% -73.13%
Net Earnings / Revenue -0.31% -3.14% -2.12%
Basic Earnings Per Share -$0.04 -$0.27 -$0.17
Diluted Earnings Per Share -$0.04 -$0.27 -$0.17
COMMON SHARES
Basic Shares Outstanding 2.906M shares 2.839M shares 3.065M shares
Diluted Shares Outstanding 2.906M shares 2.839M shares 3.065M shares

Balance Sheet

Concept 2021 Q2 2020 Q2 2020 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $24.20M $29.50M $26.10M
YoY Change -17.98% 3.51% -13.86%
Cash & Equivalents $24.20M $29.52M $26.13M
Short-Term Investments
Other Short-Term Assets $933.0K $1.600M $900.0K
YoY Change -41.69% 23.08% -25.0%
Inventory
Prepaid Expenses
Receivables $25.75M $12.30M $12.78M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $44.70M $43.34M $39.90M
YoY Change 3.14% -2.09% -9.38%
LONG-TERM ASSETS
Property, Plant & Equipment $174.0K $146.0K $164.0K
YoY Change 19.18% -32.72% -10.87%
Goodwill $2.088M
YoY Change
Intangibles $1.240M
YoY Change
Long-Term Investments
YoY Change
Other Assets $4.000K $7.000K $7.000K
YoY Change -42.86% 0.0% 0.0%
Total Long-Term Assets $16.55M $1.399M $1.415M
YoY Change 1082.63% -51.52% -22.55%
TOTAL ASSETS
Total Short-Term Assets $44.70M $43.34M $39.90M
Total Long-Term Assets $16.55M $1.399M $1.415M
Total Assets $61.24M $44.74M $41.31M
YoY Change 36.9% -5.12% -9.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $538.0K $670.0K $697.0K
YoY Change -19.7% -34.44% -29.09%
Accrued Expenses $13.60M $9.300M $6.900M
YoY Change 46.23% 8.14% -8.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $589.0K $0.00
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $14.14M $10.51M $7.571M
YoY Change 34.46% 9.49% -11.01%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $700.0K $0.00
YoY Change -100.0%
Other Long-Term Liabilities $197.0K $187.0K $163.0K
YoY Change 5.35% 11.31% 7.95%
Total Long-Term Liabilities $197.0K $187.0K $163.0K
YoY Change 5.35% 11.31% 7.95%
TOTAL LIABILITIES
Total Short-Term Liabilities $14.14M $10.51M $7.571M
Total Long-Term Liabilities $197.0K $187.0K $163.0K
Total Liabilities $15.50M $12.34M $8.682M
YoY Change 25.57% 1.75% -21.34%
SHAREHOLDERS EQUITY
Retained Earnings -$438.1M -$437.8M -$437.0M
YoY Change 0.07% -0.13% -0.1%
Common Stock $487.9M $486.3M $486.2M
YoY Change 0.33% 0.12% 0.19%
Preferred Stock
YoY Change
Treasury Stock (at cost) $15.33M $15.33M $15.32M
YoY Change 0.03% 20.31% 22.54%
Treasury Stock Shares 987.0K shares 987.0K shares 987.0K shares
Shareholders Equity $34.80M $32.39M $32.63M
YoY Change
Total Liabilities & Shareholders Equity $50.30M $44.74M $41.31M
YoY Change 12.44% -3.03% -9.9%

Cashflow Statement

Concept 2021 Q2 2020 Q2 2020 Q1
OPERATING ACTIVITIES
Net Income -$122.0K -$772.0K -$511.0K
YoY Change -84.2% -14.22% -73.13%
Depreciation, Depletion And Amortization $113.0K $30.00K $24.00K
YoY Change 276.67% 50.0% 33.33%
Cash From Operating Activities $997.0K $1.870M -$2.730M
YoY Change -46.68% -223.03% -56.08%
INVESTING ACTIVITIES
Capital Expenditures -$82.00K $0.00 -$10.00K
YoY Change -100.0% -75.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$82.00K $0.00 -$10.00K
YoY Change -100.0% -71.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $2.239M
YoY Change -39.54%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -4.000K 1.320M -$2.250M
YoY Change -100.3% -673.91% -44.0%
NET CHANGE
Cash From Operating Activities 997.0K 1.870M -$2.730M
Cash From Investing Activities -82.00K 0.000 -$10.00K
Cash From Financing Activities -4.000K 1.320M -$2.250M
Net Change In Cash 911.0K 3.190M -$5.218M
YoY Change -71.44% -279.21% -48.93%
FREE CASH FLOW
Cash From Operating Activities $997.0K $1.870M -$2.730M
Capital Expenditures -$82.00K $0.00 -$10.00K
Free Cash Flow $1.079M $1.870M -$2.720M
YoY Change -42.3% -225.5% -55.96%

Facts In Submission

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us-gaap Deferred Income Tax Expense Benefit
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us-gaap Share Based Compensation
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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592000 USD
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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543000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Payments To Acquire Productive Assets
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122000 USD
us-gaap Payments To Acquire Productive Assets
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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hson Proceedsfrom Government Lending
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hson Proceedsfrom Government Lending
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
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4000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
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14000 USD
us-gaap Net Cash Provided By Used In Financing Activities
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-4000 USD
us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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us-gaap Interest Paid Net
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us-gaap Interest Paid Net
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hson Interest Received
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us-gaap Income Taxes Paid Net
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us-gaap Income Taxes Paid Net
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271000 USD
us-gaap Operating Lease Payments
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238000 USD
us-gaap Operating Lease Payments
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129000 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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672000 USD
us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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77000 USD
CY2021Q1 us-gaap Stockholders Equity
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CY2020Q1 us-gaap Stockholders Equity
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CY2020Q4 us-gaap Stockholders Equity
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CY2021Q2 us-gaap Stockholders Equity
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CY2021Q2 us-gaap Stockholders Equity
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CY2020Q2 us-gaap Stockholders Equity
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us-gaap Nature Of Operations
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DESCRIPTION OF BUSINESS<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">    The Company is comprised of the operations, assets, and liabilities of the Company's three regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. The Company provides Recruitment Process Outsourcing (“RPO”) permanent recruitment and contracting outsourced recruitment solutions. These services are tailored to the individual needs of primarily mid-to-large-cap multinational companies. The Company's RPO delivery teams utilize state-of-the-art recruitment process methodologies and project management expertise in their flexible, turnkey solutions to meet clients' ongoing business needs. The Company's RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions, and recruitment consulting.</span></div><div style="margin-top:9pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> On October 1, 2020, the Company completed its acquisition of Coit Staffing, Inc., which expanded its presence in the technology sector and established a Technology Group located in San Francisco. In addition to providing RPO services to clients in the tech sector, the Technology Group operates jointly with the Company’s existing teams in the Americas, Asia Pacific, and Europe to provide continuous access to knowledge regarding new and emerging technologies in the RPO, Managed Solutions Provider, and Total Talent Solutions space, enabling the Company to better serve its clients around the world.</span></div><div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">    The Company operates directly in twelve countries with three reportable geographic business segments: Americas, Asia Pacific, and Europe. See Note 13 to the Condensed Consolidated Financial Statements for further details regarding the reportable segments. </span></div><div style="text-align:justify;text-indent:36pt"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In December 2019, a novel strain of coronavirus, referred to as COVID-19, was reported to have originated in Wuhan, Hubei Province, China. On January 30, 2020, the World Health Organization (“WHO”) declared that the virus had become a global public-health emergency. On March 11, 2020, the WHO declared the outbreak to be a pandemic, based on the rapid increase in exposure globally. Many countries around the world have imposed quarantines and restrictions on travel and mass gatherings to slow the spread of the virus. COVID-19 continues to have an impact around the world and presents risks to the Company, which the Company is unable to fully evaluate or foresee at the current time. However, the Company is vigilantly monitoring the business environment surrounding COVID 19 and continues to proactively address this situation as it evolves. The Company believes it can continue to take appropriate actions to manage the business in this challenging environment due to the flexibility of its workforce and the strength of its balance sheet.</span></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In 2020 in connection with the COVID-19 pandemic, certain foreign government organizations offered wage assistance subsidies and tax credits to companies in exchange for maintaining specified levels of compensation and related costs for employees residing in those countries. The Company recognized the receipt of funds from these organizations in the Other income (expense), net caption on the Condensed Consolidated Statements of Operations. For the three and six months ended </span></div>June 30, 2020 the Company received $265 related to foreign government assistance, included within Other income (expense), net. In the U.S, the Company received a $1.3 million loan in the second quarter of 2020 in connection with the Paycheck Protection Program (“PPP”), administered by the U.S. Small Business Administration (“SBA”), under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The SBA approved the forgiveness of the full amount of the loan on November 30, 2020. For more information, see Note 10.
us-gaap Number Of Reportable Segments
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3 Segment
CY2021Q2 us-gaap Number Of Countries In Which Entity Operates
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12 Country
us-gaap Number Of Reportable Segments
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3 Segment
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265000 USD
hson Government Assistance Non Us
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CY2020Q2 us-gaap Revenues
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us-gaap Revenues
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us-gaap Revenues
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1900000 USD
us-gaap Business Combination Pro Forma Information Revenue Of Acquiree Since Acquisition Date Actual
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3216000 USD
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154000 USD
us-gaap Business Combination Pro Forma Information Earnings Or Loss Of Acquiree Since Acquisition Date Actual
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488000 USD
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250000 shares
CY2021Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
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100134 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
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us-gaap Allocated Share Based Compensation Expense
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us-gaap Allocated Share Based Compensation Expense
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242000 USD
us-gaap Income Tax Expense Benefit
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Continuing Operations
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0.21
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678000 USD
CY2020Q4 us-gaap Unrecognized Tax Benefits
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669000 USD
CY2021Q2 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
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632000 USD
CY2020Q4 us-gaap Unrecognized Tax Benefits Income Tax Penalties Accrued
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594000 USD
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us-gaap Earnings Per Share Basic And Diluted
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us-gaap Earnings Per Share Basic And Diluted
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us-gaap Net Income Loss
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us-gaap Net Income Loss
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CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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2906000 shares
CY2020Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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2839000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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2899000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
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2952000 shares
CY2021Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2020Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2021Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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2906000 shares
CY2020Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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2839000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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2899000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2021Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2020Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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23174 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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199119 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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23174 shares
CY2019Q4 us-gaap Goodwill
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240000 USD
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1480000 USD
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us-gaap Amortization Of Intangible Assets
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160000 USD
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160000 USD
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310000 USD
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280000 USD
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CY2020Q4 hson Legal Reserves
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CY2021Q2 hson Legal Reserves
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us-gaap Operating Lease Cost
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CY2021Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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CY2021Q2 us-gaap Lessee Operating Lease Liability Payments Due
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CY2020Q4 us-gaap Accumulated Other Comprehensive Income Loss Foreign Currency Translation Adjustment Net Of Tax
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526000 USD
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526000 USD
CY2015Q3 us-gaap Stock Repurchase Program Authorized Amount1
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10000000 USD
CY2015Q3 us-gaap Stock Repurchase Program Authorized Amount1
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267000 USD
CY2021Q2 us-gaap Income Tax Expense Benefit
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389000 USD
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15091000 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
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us-gaap Number Of Reportable Segments
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us-gaap Number Of Reportable Segments
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39674000 USD
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15091000 USD
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CY2021Q2 hson Segment Reporting Information Intersegment Interest Income Expense Net
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us-gaap Revenues
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74135000 USD
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242000 USD
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48704000 USD
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48704000 USD
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18728000 USD
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us-gaap Depreciation And Amortization
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48000 USD
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0 USD
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CY2020Q2 us-gaap Assets
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CY2021Q2 us-gaap Revenues
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39674000 USD
CY2020Q2 us-gaap Revenues
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24573000 USD
us-gaap Revenues
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74135000 USD
us-gaap Revenues
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48704000 USD
CY2021Q2 us-gaap Intangible Assets Net Including Goodwill
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CY2021Q2 us-gaap Assets Net
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34803000 USD
CY2020Q2 us-gaap Intangible Assets Net Including Goodwill
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CY2020Q2 us-gaap Assets Net
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32392000 USD
CY2018Q4 us-gaap Class Of Warrant Or Right Unissued
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CY2018Q4 hson Warrantsand Rights Preferred Stockto Common Stock Conversion Treatment
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1 shares
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P10D
CY2018Q4 hson Warrants And Rights Not Exercisable Numberof Days After Tenderor Exchange Offer Is Completed By Acquiring Person
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P10D
CY2018Q4 hson Warrantsand Rights Optionto Exercise Market Value Multiplierof Purchase Price
WarrantsandRightsOptiontoExerciseMarketValueMultiplierofPurchasePrice
2
CY2018Q4 hson Warrantsand Rights Optionto Exercise Market Value Multiplierof Purchase Price
WarrantsandRightsOptiontoExerciseMarketValueMultiplierofPurchasePrice
2
CY2018Q4 us-gaap Temporary Equity Redemption Price Per Share
TemporaryEquityRedemptionPricePerShare
0.001
CY2018Q4 us-gaap Temporary Equity Redemption Price Per Share
TemporaryEquityRedemptionPricePerShare
0.001

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