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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________ 
FORM 10-Q
(Mark One)
x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
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 001-08604
teama28.jpg
TEAM, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 74-1765729
(State or Other Jurisdiction of
Incorporation or Organization)		 (I.R.S. Employer
Identification No.)
13131 Dairy Ashford, Suite 600, Sugar Land, Texas
 77478
(Address of Principal Executive Offices) (Zip Code)
(281) 331-6154
(Registrant’s Telephone Number, Including Area Code)
None
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.30 par valueTISINew York Stock Exchange
Preferred Stock Purchase RightsN/ANew York Stock Exchange
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  x    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  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See 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 
x
Smaller reporting company 
x
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  x

The Registrant had 4,485,242 shares of common stock, par value $0.30, outstanding as of November 8, 2024.

INDEX
 
  Page No.
























1

PART I—FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
TEAM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
September 30, 2024December 31, 2023
ASSETS(unaudited) 
Current assets:
Cash and cash equivalents$19,087 $35,427 
Accounts receivable, net of allowance of $3,647 and $3,738 respectively
192,460 181,185 
Inventory40,314 38,853 
Income tax receivable677 644 
Prepaid expenses and other current assets62,353 65,992 
Total current assets314,891 322,101 
Property, plant and equipment, net116,490 127,057 
Intangible assets, net53,356 62,693 
Operating lease right-of-use assets41,959 40,498 
Defined benefit pension asset5,164 4,323 
Other assets, net12,085 7,847 
Deferred tax asset1,421 1,225 
Total assets$545,366 $565,744 
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations$7,056 $5,212 
Current portion of operating lease obligations15,006 14,232 
Accounts payable43,149 36,389 
Other accrued liabilities107,030 118,089 
Income tax payable2,564 1,016 
Total current liabilities174,805 174,938 
Long-term debt and finance lease obligations314,182 306,214 
Operating lease obligations30,127 29,962 
Deferred tax liabilities5,165 5,742 
Other long-term liabilities3,189 3,292 
Total liabilities527,468 520,148 
Commitments and contingencies
Equity:
Preferred stock, 500,000 shares authorized, none issued
— — 
Common stock, par value $0.30 per share, 12,000,000 shares authorized; 4,421,876 and 4,415,147 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
1,327 1,315 
Additional paid-in capital460,329 458,614 
Accumulated deficit(408,485)(377,401)
Accumulated other comprehensive loss(35,273)(36,932)
Total equity17,898 45,596 
Total liabilities and equity$545,366 $565,744 
See accompanying notes to unaudited condensed consolidated financial statements.
2

TEAM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Revenues$210,758 $206,715 $638,976 $648,484 
Operating expenses157,234 153,928 473,167 487,779 
Gross margin53,524 52,787 165,809 160,705 
Selling, general and administrative expenses50,366 54,045 157,878 165,113 
Operating income (loss)3,158 (1,258)7,931 (4,408)
Interest expense, net(11,770)(10,067)(35,777)(43,499)
Loss on debt extinguishment— (3)— (1,585)
Other (expense) income, net(2,010)266 (1,189)914 
Loss before income taxes(10,622)(11,062)(29,035)(48,578)
Provision for income taxes(504)(1,072)(2,049)(4,020)
Net loss $(11,126)$(12,134)$(31,084)$(52,598)
Loss per common share:
Basic and Diluted
$(2.52)$(2.78)$(7.04)$(12.07)
Weighted-average number of shares outstanding:
Basic and Diluted
4,422 4,368 4,418 4,358 

See accompanying notes to unaudited condensed consolidated financial statements.
3
TEAM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS
(in thousands)
(Unaudited)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
Net loss$(11,126)$(12,134)$(31,084)$(52,598)
Other comprehensive income (loss) before tax:
Foreign currency translation adjustment4,509 (3,366)1,317 (1,311)
     Defined benefit pension plans:
       Amortization of prior service cost
8 — 24 — 
       Amortization of net actuarial loss
82 — 240 — 
Other comprehensive income (loss), before tax4,599 (3,366)1,581 (1,311)
Tax benefit (provision) attributable to other comprehensive income (loss)83 11 78 (35)
Other comprehensive income (loss), net of tax4,682 (3,355)1,659 (1,346)
Total comprehensive loss$(6,444)$(15,489)$(29,425)$(53,944)
 
See accompanying notes to unaudited condensed consolidated financial statements.

4
TEAM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(in thousands)
(Unaudited)
Common StockAdditional
Paid-in
Capital		Retained
Earnings (Deficit)		Accumulated
Other
Comprehensive
Loss		Total
Shareholders’
Equity
SharesAmount
Balance at December 31, 20234,415 $1,315 $458,614 $(377,401)$(36,932)$45,596 
Net loss— — — (17,195)— (17,195)
Net settlement of vested stock awards— 10 (10)— — — 
Foreign currency translation adjustment, net of tax— — — — (2,862)(2,862)
Defined benefit pension plans, net of tax
— — — — 87 87 
Non-cash compensation— — 665 — — 665 
Balance at March 31, 20244,415 $1,325 $459,269 $(394,596)$(39,707)$26,291 
Net loss— — — (2,763)— (2,763)
Net settlement of vested stock awards7 2 (19)— — (17)
Foreign currency translation adjustment, net of tax— — — — (291)(291)
Defined benefit pension plans, net of tax
— — — — 43 43 
Non-cash compensation— — 612 — — 612 
Balance at June 30, 20244,422 $1,327 $459,862 $(397,359)$(39,955)$23,875 
Net loss— — — (11,126)— (11,126)
Foreign currency translation adjustment, net of tax— — — — 4,592 4,592 
Defined benefit pension plans, net of tax
— — — — 90 90 
Non-cash compensation— — 467 — — 467 
Balance at September 30, 20244,422 $1,327 $460,329 $(408,485)$(35,273)$17,898 
Balance at December 31, 20224,343 $1,303 $457,133 $(301,679)$(38,997)$117,760 
Net loss— — — (24,711)— (24,711)
Net settlement of vested stock awards14 4 (52)— — (48)
Foreign currency translation adjustment, net of tax— — — — 755 755 
Non-cash compensation— — 382 — — 382 
Balance at March 31, 20234,357 $1,307 $457,463 $(326,390)$(38,242)$94,138 
Net loss(15,753)(15,753)
Net settlement of vested stock awards11 4 (16)— — (12)
Foreign currency translation adjustment, net of tax— — — — 1,254 1,254 
Non-cash compensation— — 245 — — 245 
Balance at June 30, 20234,368 $1,311 $457,692 $(342,143)$(36,988)$79,872 
Net loss— — — (12,134)— (12,134)
Foreign currency translation adjustment, net of tax— — — — (3,355)(3,355)
Non-cash compensation— — 232 — — 232 
Balance at September 30, 20234,368 $1,311 $457,924 $(354,277)$(40,343)$64,615 

See accompanying notes to unaudited condensed consolidated financial statements.

5
TEAM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
 Nine Months Ended September 30,
 20242023
Cash flows from operating activities:
Net loss$(31,084)$(52,598)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization27,934 28,481 
Write-off of software cost— 629 
Loss on debt extinguishment— 1,585 
Amortization of debt issuance costs, debt discounts, and deferred financing costs4,690 16,926 
Paid-in-kind (“PIK”) interest
11,020 10,906 
Allowance for credit losses
832 687 
Foreign currency loss (gain)
1,504 (776)
Deferred income taxes(754)986 
Loss (gain) on asset disposal
24 (268)
Non-cash compensation costs1,744 859 
Other, net(256)(3,282)
Changes in operating assets and liabilities:
Accounts receivable(12,125)140 
Inventory(1,357)(2,513)
Prepaid expenses and other assets
(1,418)(5,207)
Accounts payable7,590 363 
Other accrued liabilities(8,718)(18,763)
Income taxes1,517 (224)
Net cash provided by (used in) operating activities
1,143 (22,069)
Cash flows from investing activities:
Capital expenditures(7,454)(7,433)
Proceeds from disposal of assets149 414 
Net cash used in investing activities(7,305)(7,019)
Cash flows from financing activities:
Borrowings under Revolving Credit Loans20,500 27,292 
Payments under Revolving Credit Loans(21,009)(16,293)
Repayment of Convertible Debt— (41,161)
Repayment of APSC Term Loan— (37,092)
Borrowings under ME/RE Loans— 27,398 
Payments under ME/RE Loans(2,131)(847)
Payments under Corre Incremental Term Loan
(1,069)— 
Borrowings under Corre Incremental Term Loan— 42,500 
Payments for debt issuance costs (7,371)(8,446)
Other1,153 (746)
Net cash used in financing activities
(9,927)(7,395)
Effect of exchange rate changes on cash(251)(109)
Net decrease in cash and cash equivalents
(16,340)(36,592)
Cash and cash equivalents at beginning of period35,427 58,075 
Cash and cash equivalents at end of period$19,087 $21,483 




See accompanying notes to unaudited condensed consolidated financial statements.
6
TEAM, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Description of Business. Unless otherwise indicated, the terms “we,” “our,” “us,” “Team,” and “the Company” are used in this report to refer to either Team, Inc., to one or more of our consolidated subsidiaries, or to all of them taken as a whole. Our stock is traded on the New York Stock Exchange (the “NYSE”) under the symbol “TISI”.
We are a global, leading provider of specialty industrial services offering customers access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services. We deploy conventional to highly specialized inspection, condition assessment, maintenance and repair services that result in greater safety, reliability, and operational efficiency for our customers’ most critical assets. We conduct operations in two segments: Inspection and Heat Treating (“IHT”) and Mechanical Services (“MS”). Through the capabilities and resources in these two segments, we believe that we are uniquely qualified to provide integrated solutions involving: inspection to assess condition; engineering assessment to determine fitness for purpose in the context of industry standards and regulatory codes; and mechanical services to repair, rerate or replace based upon the customer’s election. In addition, we are capable of escalating with the customer’s needs, as dictated by the severity of the damage found and the related operating conditions, from standard services to some of the most advanced services and integrated asset integrity and reliability management solutions available in the industry. We also believe that we are unique in our ability to provide these services in three distinct customer demand profiles: (i) turnaround or project services, (ii) call-out services, and (iii) nested or run-and-maintain services.
IHT provides conventional and advanced non-destructive testing services primarily for the process, pipeline and power sectors, pipeline integrity management services, and field heat treating services, as well as associated engineering and condition assessment services. These services can be offered while facilities are running (onstream), during facility turnarounds or during new construction or expansion activities. In addition, IHT provides comprehensive non-destructive testing services and metallurgical and chemical processing services to the aerospace industry, covering a range of components including finished machined and in-service components. IHT also provides advanced digital imaging including remote digital video imaging.
MS provides solutions designed to serve customers’ unique needs during both the operational (onstream) and off-line states of their assets. Our onstream services include our range of standard to custom-engineered leak repair and composite solutions; emissions control and compliance; hot tapping and line stopping; and online valve insertion solutions, which are delivered while assets are in an operational condition, which maximizes customer production time. Asset shutdowns can be planned, such as a turnaround maintenance event, or unplanned, such as those due to component failure or equipment breakdowns. Our specialty maintenance, turnaround and outage services are designed to minimize customer downtime and are primarily delivered while assets are off-line and often through the use of cross-certified technicians, whose multi-craft capabilities deliver the production needed to achieve tight time schedules. These critical services include on-site field machining; bolted-joint integrity; vapor barrier plug testing; and valve management solutions.
We market our services to companies in a diverse array of heavy industries which include:
•Energy (refining, power, renewables, nuclear, offshore oil and gas, and liquefied natural gas);
•Manufacturing and Process (chemical, petrochemical, pulp and paper industries, automotive, and mining);
•Midstream (valves, terminals and storage, and pipeline);
•Public Infrastructure (construction and building, roads, dams, amusement parks, bridges, ports, and railways); and
•Aerospace and Defense.

Recent Financing Amendments. On September 30, 2024, we entered into certain amendments with our lenders. Refer to Note 10 - Debt to the unaudited condensed consolidated financial statements for additional details.

Basis of presentation. These condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain disclosures have been condensed or omitted from the interim financial statements included in this report. These condensed consolidated financial
7
statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC (“our Annual Report on Form 10-K”).
Consolidation. The condensed consolidated financial statements include the accounts of our subsidiaries where we have control over operating and financial policies. All material intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications. Certain amounts in prior periods have been reclassified to conform to the current year presentation. Such reclassifications did not have any effect on our financial condition or results of operations as previously reported.
Significant Accounting Policies. Our significant accounting policies are disclosed in Note 1 - Summary of Significant Accounting Policies and Practices in our Annual Report on Form 10-K. On an ongoing basis, we evaluate the estimates and assumptions, including among other things, those related to long-lived assets. Since the date of our Annual Report on Form 10-K, there have been no material changes to our significant accounting policies.

2. REVENUE
Disaggregation of revenue. Essentially all of our revenues are associated with contracts with customers. A disaggregation of our revenue from customer contracts by geographic region, by reportable operating segment and by service type is presented below:
Geographic area (in thousands):
Three Months Ended September 30, 2024Three Months Ended September 30, 2023
(unaudited)(unaudited)
United States and CanadaOther CountriesTotalUnited States and CanadaOther CountriesTotal
Revenue:
IHT$104,478 $3,126 $107,604 $100,800 $3,057 $103,857 
MS68,393 34,761 103,154 67,286 35,572 102,858 
Total$172,871 $37,887 $210,758 $168,086 $38,629 $206,715 

Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
(unaudited)(unaudited)
United States and CanadaOther CountriesTotalUnited States and CanadaOther CountriesTotal
Revenue:
IHT$310,985 $9,301 $320,286 $312,344 $10,082 $322,426 
MS216,490 102,200 318,690 221,943 104,115 326,058 
Total$527,475 $111,501 $638,976 $534,287 $114,197 $648,484 
Revenue by Operating segment and service type (in thousands):
Three Months Ended September 30, 2024
(unaudited)
Non-Destructive Evaluation and Testing ServicesRepair and Maintenance ServicesHeat TreatingOtherTotal
Revenue:
IHT$83,461 $2 $18,036 $6,105 $107,604 
MS— 100,780 363 2,011 103,154 
Total$83,461 $100,782 $18,399 $8,116 $210,758 
8
Three Months Ended September 30, 2023
(unaudited)
Non-Destructive Evaluation and Testing ServicesRepair and Maintenance ServicesHeat TreatingOtherTotal
Revenue:
IHT$83,207 $39 $12,946 $7,665 $103,857 
MS— 101,624 55 1,179 102,858 
Total$83,207 $101,663 $13,001 $8,844 $206,715 
Nine Months Ended September 30, 2024
(unaudited)
Non-Destructive Evaluation and Testing ServicesRepair and Maintenance ServicesHeat TreatingOtherTotal
Revenue:
IHT$254,584 $149 $48,979 $16,574 $320,286 
MS— 312,516 718 5,456 318,690 
Total$254,584 $312,665 $49,697 $22,030 $638,976 
Nine Months Ended September 30, 2023
(unaudited)
Non-Destructive Evaluation and Testing ServicesRepair and Maintenance ServicesHeat TreatingOtherTotal
Revenue:
IHT$259,118 $261 $42,391 $20,656 $322,426 
MS— 323,484 544 2,030 326,058 
Total$259,118 $323,745 $42,935 $22,686 $648,484 
For additional information on our reportable operating segments, refer to Note 14 - Segment Disclosures.
As of September 30, 2024, we received $2.3 million of advance payments from a customer for equipment sales. This amount is recorded as a contract liability and included in Other accrued liabilities. See Note 8 - Other Accrued Liabilities for additional information. There was no contract liability as of December 31, 2023.
Remaining performance obligations. As permitted by ASC 606, Revenue from Contracts with Customers, we have elected not to disclose information about remaining performance obligations where (i) the performance obligation is part of a contract that has an original expected duration of one year or less or (ii) when we recognize revenue from the satisfaction of the performance obligation in accordance with the right-to-invoice practical expedient, which permits us to recognize revenue in the amount to which we have a right to invoice the customer if that amount corresponds directly with the value to the customer of our performance completed to date. As most of our contracts with customers are short-term in nature and billed on a time and material basis, there were no material amounts of remaining performance obligations as of September 30, 2024 and December 31, 2023.

3. ACCOUNTS RECEIVABLE
A summary of accounts receivable as of September 30, 2024 and December 31, 2023 is as follows (in thousands): 
September 30, 2024December 31, 2023
 (unaudited) 
Trade accounts receivable$145,991 $151,316 
Unbilled revenues50,116 33,607 
Allowance for credit losses(3,647)(3,738)
Total$192,460 $181,185 
9
The following table shows a rollforward of the allowance for credit losses (in thousands):
 September 30, 2024December 31, 2023
 (unaudited)
Balance at beginning of period$3,738 $5,262 
Provision for expected credit losses1,310 1,680 
Recoveries collected(416)(1,638)
Write-offs(1,130)(1,560)
Foreign exchange effects145 (6)
Balance at end of period$3,647 $3,738 

4. INVENTORY
A summary of inventory as of September 30, 2024 and December 31, 2023 is as follows (in thousands): 
September 30, 2024December 31, 2023
 (unaudited) 
Raw materials$10,183 $9,958 
Work in progress2,680 2,326 
Finished goods27,451 26,569 
Total$40,314 $38,853 

5. PREPAID AND OTHER CURRENT ASSETS
A summary of prepaid expenses and other current assets as of September 30, 2024 and December 31, 2023 is as follows (in thousands):
September 30, 2024December 31, 2023
 (unaudited) 
Insurance receivable$39,000 $39,000 
Prepaid expenses18,252 18,398 
Other current assets5,101 8,594 
Total$62,353 $65,992 
The insurance receivable relates to the receivables from our third-party insurance providers for a legal claim that is recorded in other accrued liabilities, refer to Note 8 - Other Accrued Liabilities. These receivables will be collected from our third-party insurance providers for litigation matters that have been settled, or are pending settlement, and where the deductibles have been satisfied. The prepaid expenses primarily relate to prepaid insurance and other expenses that have been paid in advance of the coverage period. Other current assets include other receivables, software implementation costs, and deferred financing charges.


10
6. PROPERTY, PLANT AND EQUIPMENT
A summary of property, plant and equipment as of September 30, 2024 and December 31, 2023 is as follows (in thousands):
September 30, 2024December 31, 2023
 (unaudited) 
Land$4,006 $4,006 
Buildings and leasehold improvements61,183 60,827 
Machinery and equipment293,302 286,376 
Furniture and fixtures10,862 10,804 
Capitalized ERP system development costs45,903 45,903 
Computers and computer software19,510 20,067 
Automobiles2,865 3,215 
Construction in progress630 6,634 
Total438,261 437,832 
Accumulated depreciation(321,771)(310,775)
Property, plant and equipment, net$116,490 $127,057 
Included in the table above are assets under finance leases of $8.5 million as of September 30, 2024 and December 31, 2023, and related accumulated amortization of $3.8 million and $3.3 million as of September 30, 2024 and December 31, 2023, respectively.
Depreciation expense for the three months ended September 30, 2024 and 2023 was $5.1 million and $5.4 million, respectively, of which $3.4 million and $3.6 million, respectively, was included in “Operating expenses” and $1.7 million and $1.8 million, respectively, was included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations. Depreciation expense for the nine months ended September 30, 2024 and 2023 was $15.7 million and $16.5 million, respectively, of which $10.5 million and $11.0 million, respectively, was included in “Operating expenses” and $5.2 million and $5.5 million, respectively, was included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations.

7. INTANGIBLE ASSETS
A summary of intangible assets as of September 30, 2024 and December 31, 2023 is as follows (in thousands): 
 September 30, 2024
 (unaudited)
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Customer relationships$164,352 $(111,738)$52,614 
Trade names20,267 (19,851)416 
Technology2,300 (1,974)326 
Licenses683 (683)— 
Intangible assets$187,602 $(134,246)$53,356 

 December 31, 2023
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Customer relationships$164,305 $(102,630)$61,675 
Trade names20,262 (19,742)520 
Technology2,300 (1,802)498 
Licenses683 (683)— 
Intangible assets$187,550 $(124,857)$62,693 
11

Amortization expense of intangible assets for the three months ended September 30, 2024 and 2023 was $3.1 million and $3.2 million, respectively. Amortization expense of intangible assets for the nine months ended September 30, 2024 and 2023 was $9.3 million and $9.6 million, respectively. Amortization expense of intangible assets are included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations.
The weighted-average amortization period for intangible assets was 13.8 years as of September 30, 2024 and December 31, 2023.

8. OTHER ACCRUED LIABILITIES
A summary of other accrued liabilities as of September 30, 2024 and December 31, 2023 is as follows (in thousands): 
September 30, 2024December 31, 2023
 (unaudited) 
Legal and professional accruals$46,446 $53,972 
Payroll and other compensation expenses37,817 39,943 
Insurance accruals3,820 7,170 
Property, sales and other non-income related taxes5,250 7,248 
Accrued interest5,318 4,487 
Volume discount2,397 2,479 
Contract liabilities
2,267 — 
Other accruals3,715 2,790 
Total$107,030 $118,089 
Legal and professional accruals include accruals for legal and professional fees as well as accrued legal claims. See Note 13 - Commitments and Contingencies for additional information. Certain legal claims are covered by our third-party insurance providers and the related insurance receivable for these claims is recorded in prepaid expenses and other current assets. See Note 5 - Prepaid and Other Current Assets for additional information. Payroll and other compensation expenses include all payroll related accruals including, among others, accrued vacation, severance, and bonuses. Insurance accruals primarily relate to accrued medical and workers compensation costs. Property, sales and other non-income related taxes include accruals for items such as sales and use tax, property tax, and other related tax accruals. Accrued interest relates to the interest accrued on our long-term debt. Contract liabilities represent advance payments received from a customer. Other accruals include various business expense accruals.

9. INCOME TAXES
We recorded an income tax provision of $0.5 million and $2.0 million, respectively, for the three and nine months ended September 30, 2024, compared to a provision of $1.1 million and $4.0 million, respectively, for the three and nine months ended September 30, 2023. The effective tax rate, inclusive of discrete items, was a provision of 4.7% for the three months ended September 30, 2024, compared to a provision of 9.7% for the three months ended September 30, 2023. For the nine months ended September 30, 2024, our effective tax rate, inclusive of discrete items, was a provision of 7.1%, compared to a provision of 8.3% for the nine months ended September 30, 2023. The decrease in effective tax rate for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 is due to the mix of pretax income in non-valuation allowance jurisdictions and pretax losses in valuation allowance jurisdictions, along with changes in valuation allowance in 2023. The impact is a larger decrease in income tax expense as compared to pretax income resulting in a decrease of effective tax rate.

12
10. DEBT
As of September 30, 2024 and December 31, 2023, our total long-term debt and finance lease obligations are summarized as follows (in thousands):
September 30, 2024December 31, 2023
(unaudited)
2022 ABL Credit Facility1
$112,643 $113,415 
ME/RE Loans1
22,699 24,061 
Uptiered Loan1
139,206 129,436 
Incremental Term Loan1
39,516 38,758 
Equipment Finance Loan
1,882 — 
Total 315,946 305,670 
Finance lease obligations5,292 5,756 
Total long-term debt and finance lease obligations321,238 311,426 
Current portion of long-term debt and finance lease obligations(7,056)(5,212)
Total long-term debt and finance lease obligations, less current portion$314,182 $306,214 
1    Comprised of principal amount outstanding, less unamortized debt issuance costs. See below for additional information.
2022 ABL Credit Facility
On February 11, 2022, we entered into a credit agreement, with the lender parties thereto, and Eclipse Business Capital, LLC, a Delaware limited liability company, as agent (the “ABL Agent”) (such agreement, as amended by Amendment No.1 dated as of May 6, 2022, Amendment No.2 dated as of November 1, 2022, Amendment No.3 dated as of June 16, 2023, Amendment No.4 dated as of March 6, 2024 and ABL Amendment No.5 (described below), the “2022 ABL Credit Agreement”).
Available funding commitments under the 2022 ABL Credit Agreement, subject to certain conditions, include a revolving credit line in an amount of up to $130.0 million to be provided by certain affiliates of the ABL Agent, with a $35.0 million sublimit for swingline borrowings, a $26.0 million sublimit for issuances of letters of credit (the “Revolving Credit Loans”), and an incremental delayed draw term loan of up to $35.0 million (the “Delayed Draw Term Loan”) provided by Corre Partners Management, LLC (“Corre”) and certain of its affiliates (collectively, the “2022 ABL Credit Facility”).
On September 30, 2024, the Company entered into Amendment No.5 (“ABL Amendment No.5”) to the 2022 ABL Credit Agreement. ABL Amendment No. 5 amended the 2022 ABL Credit Agreement to, among other things, to:
(i) extend the scheduled maturity date from August 11, 2025 to September 30, 2027;
(ii) amend the applicable margin for Delayed Draw Term Loans from a flat rate of 10.00% for SOFR Loans (as defined in the 2022 ABL Credit Agreement) and 9.00% for Base Rate Loans (as defined in the 2022 ABL Credit Agreement) to a rate based on EBITDA ranging from 8.50% to 10.00% for SOFR Loans and 7.50% to 9.00% for Base Rate Loans;
(iii) amend the applicable margin for Revolving Credit Loans from a rate based on EBITDA ranging from 4.15% to 4.65% for SOFR Loans and 3.15% to 3.65% for Base Rate Loans to a rate based on both EBITDA and Average Historical Excess Availability (as defined in the 2022 ABL Credit Agreement) ranging from 3.50% to 4.25% for SOFR Loans and 2.50% to 3.25% for Base Rate Loans;
(iv) amend the applicable margin for ME/RE Loans (defined below) from a flat rate of 5.75% for SOFR Loans to a flat rate of 5.00% for SOFR Loans;
(v) amend the definitions of “Borrowing Base” and “Consolidated Fixed Charge Coverage Ratio” as well as related definitions in order to expand availability under the Revolving Credit Facility (as defined in the 2022 ABL Credit Agreement); and
(vi) add a springing financial covenant requiring Excess Availability (as defined in the 2022 ABL Credit Agreement) to be above $7,500,000 only if the Consolidated Fixed Charge Coverage Ratio falls below 0.85x for twelve month periods ending on or prior to December 31, 2024 and 1.00x for twelve month periods ending after December 31, 2024.
ABL Amendment No.5 was accounted for in accordance with ASC 470-60, Troubled Debt Restructuring, and no gain or loss was recognized. Amendment fees of $0.9 million related to the Revolving Credit Loans were deferred on September 30, 2024. The amendment fees will be amortized to interest expense over the term of the 2022 ABL Credit Agreement.
The terms of the 2022 ABL Credit Facility are described in the table below (dollar amounts are presented in thousands):
13
Revolving Credit LoansDelayed Draw Term Loan
Scheduled maturity date1
9/30/20279/30/2027
Stated interest rateSOFR + applicable margin (base + applicable margin)SOFR + applicable margin (base + applicable margin)
Actual interest rate:
9/30/20249.57%15.32%
9/30/202310.09%15.44%
Interest paymentsmonthlymonthly
Cash paid for interest
YTD 9/30/2024$5,964$4,130
YTD 9/30/2023$4,932$3,951
Balances at 9/30/2024

     Principal balance
$77,905$35,000
Unamortized balance of debt issuance cost
N/A
$(262)
Net carrying balance
$77,905$34,738
Balances at 12/31/2023

     Principal balance
$78,415$35,000
Unamortized balance of debt issuance cost
N/A
$—
     Net carrying balance
$78,415$35,000
Unamortized balance of deferred financing cost
9/30/2024$1,102
N/A
12/31/2023$267
N/A
Available amount at 9/30/20242
$18,022$—
1 Amended maturity date is the earlier of (i) the Scheduled Maturity Date and (ii) the Springing Maturity Date (91 days prior to Scheduled Maturity Date of the A&R Term Loan Credit Agreement (defined below), or October 1, 2026).
2        Available amount following the execution of ABL Amendment No.5.
The 2022 ABL Credit Agreement contains customary conditions to borrowings and covenants, as described in the 2022 ABL Credit Agreement. As of September 30, 2024, we are in compliance with the covenants.
As of September 30, 2024, $9.5 million in letters of credit were issued under the 2022 ABL Credit Agreement. Such amounts remain undrawn and are off-balance sheet.
ME/RE Loans
On June 16, 2023, we entered into ABL Amendment No.3 which, in addition to making certain other changes to the 2022 ABL Credit Facility, provided us with $27.4 million of new term loans (the “ME/RE Loans”).
On September 30, 2024, the Company entered into ABL Amendment No.5. ABL Amendment No.5 amended the 2022 ABL Credit Agreement to, among other things, provide for the following changes to the ME/RE Loans:
(i) extended the scheduled maturity date from August 11, 2025 to September 30, 2027; and
(ii) amended the applicable margin for ME/RE Loans from a flat rate of 5.75% for SOFR Loans (as defined in the 2022 ABL Credit Agreement) to a flat rate of 5.00% for SOFR Loans.
The terms of ME/RE Loans are described in the table below (dollar amounts are presented in thousands):
14
Scheduled maturity date1
9/30/2027
Stated interest rate
SOFR + 5.0% + 0.11% credit spread adjustment
Principal payments
$237 monthly
Effective interest rate2
9/30/202413.11%
9/30/202316.75%
Actual cash interest rate
9/30/202410.32%
9/30/202311.19%
Interest paymentsmonthly
Cash paid for interest
YTD 9/30/2024$2,128
YTD 9/30/2023$640
Balances at 9/30/2024
Principal balance$23,692
Unamortized balance of debt issuance cost$(993)
Net carrying balance$22,699
Balances at 12/31/2023
Principal balance$25,823
Unamortized balance of debt issuance cost$(1,762)
Net carrying balance$24,061
1 Amended maturity date is the earlier of (i) the Scheduled Maturity Date and (ii) the Springing Maturity Date (91 days prior to Scheduled Maturity Date of the A&R Term Loan Credit Agreement, or October 1, 2026).
2        The effective interest rate as of September 30, 2024 consisted of 10.32% variable interest rate paid in cash and an additional 2.79% due to non-cash amortization of the related debt issuance costs. The effective interest rate as of September 30, 2023, consisted of 11.19% variable interest rate paid in cash and an additional 5.56% due to non-cash amortization of the related debt issuance costs.
The ME/RE Loans are governed by the 2022 ABL Credit Agreement and are subject to the same restrictive covenants as described under the 2022 ABL Credit Facility.
Amended and Restated Term Loan Credit Agreement - Uptiered Loan and Incremental Term Loan
On June 16, 2023, we entered into an amendment and restatement of that certain subordinated term loan credit agreement dated as of November 9, 2021 (such agreement, as amended and restated, and as further amended by Amendment No.1 dated March 6, 2024, the “A&R Term Loan Credit Agreement”) among the Company, as borrower, the guarantors party thereto, the lenders from time-to-time party thereto and Cantor Fitzgerald Securities, as agent (the “A&R Term Loan Agent”). The A&R Term Loan Credit Agreement included a term loan credit agreement entered into on November 9, 2021, as amended through March 29, 2023 (the “Uptiered Loan”), and an additional funding commitment, subject to certain conditions, consisting of a $57.5 million senior secured first lien term loan (the “Incremental Term Loan”) provided by Corre and certain of its affiliates and comprised of a $37.5 million term loan tranche and a $20.0 million delayed draw tranche.
The A&R Term Loan Credit Agreement contains certain customary conditions to borrowings, events of default and affirmative, negative, and financial covenants (as described in the A&R Term Loan Credit Agreement and further amended by Amendment No.1 dated March 6, 2024). As of September 30, 2024, we are in compliance with the A&R Term Loan Credit Agreement covenants.
On September 30, 2024 we entered into Amendment No.2 (“ Term Loan Amendment No.2”) to the A&R Term Loan Credit Agreement. Term Loan Amendment No.2 amended the A&R Term Loan Credit Agreement to, among other things, make conforming changes to the A&R Term Loan Credit Agreement, consistent with the changes being made to the 2022 ABL Credit Agreement by ABL Amendment No.5.
The terms of Uptiered Loan and Incremental Term Loan are described in the table below (dollar amounts are presented in thousands):
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Uptiered Loan
 Incremental Term Loan
Maturity date
12/31/2027 (12/31/2026 if outstanding balance is greater than $50 million)
12/31/2026
Stated interest rate
9/30/2024
9.5% PIK and 4.0% cash2
12% paid in cash
9/30/2023
 12% PIK
12% paid in cash
Principal paymentsat maturity
$356 quarterly
Effective interest rate
9/30/2024
14.56%3
22.96%4
9/30/2023
12.86%3
23.69%4
Interest paymentscash quarterly/PIK monthly quarterly
Cash paid for interest
YTD 9/30/2024$2,775$4,267
YTD 9/30/2023$—$—
PIK interest added to principal
YTD 9/30/2024$9,661
N/A
YTD 9/30/2023$10,829N/A
Balances at 9/30/2024
Principal balance 1
$139,748$46,983
Unamortized balance of debt issuance cost$(542)$(7,467)
Net carrying balance$139,206$39,516
Balances at 12/31/2023
Principal balance 1
$130,087$48,052
Unamortized balance of debt issuance cost$(651)$(9,294)
Net carrying balance$129,436$38,758
Available amount at 9/30/2024$—$10,000
___________
1 The principal balance of the Uptiered Loan is made up of $22.5 million drawn on November 9, 2021, $27.5 million drawn on December 8, 2021, and $57.0 million added as part of the exchange agreement on October 4, 2022. In addition, the principal balance also includes paid-in-kind (“PIK”) interest recorded of $31.8 million and $22.2 million as of September 30, 2024 and December 31, 2023, respectively, and PIK fees of $0.9 million incurred as of December 31, 2022.
2 Cash and PIK split is determined based on the Net Leverage Ratio as defined in the A&R Term Loan Credit Agreement.
3 The effective interest rate on the Uptiered Loan as of September 30, 2024 consisted of 13.50% stated interest rate paid in PIK and cash, and an additional 1.06% due to the non-cash amortization of the related debt issuance costs. The effective interest rate on the Uptiered Loan as of September 30, 2023 consisted of 12.00% stated interest rate paid in PIK and an additional 0.86% due to the non-cash amortization of the related debt issuance costs.
4 The effective interest rate on the Incremental Term Loan as of September 30, 2024 consisted of 12.00% stated interest rate paid in cash and an additional 10.96% due to the non-cash amortization of the related debt issuance costs. The effective interest rate on the Incremental Term Loan as of September 30, 2023 consisted of 12.00% stated interest rate paid in cash and an additional 11.69% due to the non-cash amortization of the related debt issuance costs.
Warrants
As of September 30, 2024 and December 31, 2023, APSC Holdco II, L.P. held 500,000 warrants and certain affiliates of Corre collectively held 500,000 warrants, in each case providing for the purchase of one share of the Company’s common stock per warrant at an exercise price of $15.00. The warrants will expire on December 8, 2028.
The exercise price and the number of shares of our common stock issuable on exercise of the warrants are subject to certain antidilution adjustments, including for stock dividends, stock splits, reclassifications, noncash distributions, cash dividends, certain equity issuances and business combination transactions. The warrants can be exercised by rendering cash or by means of a cashless option as set forth in the agreement.
Equipment Finance Loan
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On March 6, 2024, we entered into agreements to sell various equipment to an equipment finance lender for $2.9 million and lease the equipment for monthly payments of $181 thousand over eighteen months. The lease agreement provides for a bargain purchase option at the end of the lease term which we intend to exercise. The Company determined that the transaction did not meet the criteria for sale-leaseback in accordance with ASC 842, Leases and accounted for this arrangement as an equipment financing. The assets subject to the transaction remain on our balance sheet and continue to depreciate in accordance with our depreciation policy.
Fair Value of Debt
The fair value of our debt obligations is representative of the carrying value based upon the respective interest rate terms and management’s opinion that the current rates available to us with the same maturity and security structure are equivalent to that of the debt obligations.
1970 Group Substitute Insurance Reimbursement Facility
On September 16, 2024, we entered into an amended and restated substitute insurance reimbursement facility agreement with 1970 Group Inc. (“1970 Group”) (such agreement, the “Substitute Insurance Reimbursement Facility Agreement”). Under the Substitute Insurance Reimbursement Facility Agreement, the 1970 Group extended credit to us in the form of a substitute reimbursement facility (the “Substitute Reimbursement Facility”) to provide up to approximately $19.0 million of letters of credit on our behalf in support of our workers’ compensation, commercial automotive and general liability insurance policies. As of September 30, 2024, we have $19.0 million of letters of credit outstanding under the Substitute Reimbursement Facility.
According to the provisions of ASC 470, Debt, the arrangement is a “Substitute Insurance Reimbursement Facility” limited to the amounts drawn under the letters of credit. Therefore, until we use or there is a draw on such Substitute Insurance Reimbursement Facility, the letters of credit are treated as an off-balance sheet credit arrangement. The fees paid by us periodically under this arrangement are deferred and amortized to interest expense over the term of the arrangement. As of September 30, 2024, we had approximately $2.2 million of unamortized deferred fees.
Liquidity
As of September 30, 2024, we had $14.9 million of unrestricted cash and cash equivalents and $4.2 million of restricted cash, including $2.9 million of restricted cash held as collateral for letters of credit and commercial card programs. International cash balances as of September 30, 2024 were $6.2 million, and approximately $0.6 million of such cash is located in countries where currency or regulatory restrictions exist. As of September 30, 2024, we had approximately $28.0 million of available borrowing capacity under our various credit agreements, consisting of $18.0 million available, following the execution of ABL Amendment No.5, under the Revolving Credit Loans and $10.0 million available under the Incremental Term Loan. As of September 30, 2024, we had $30.8 million in letters of credit and $2.5 million in surety bonds outstanding and $1.3 million in miscellaneous cash deposits securing other required obligations.
As of December 31, 2023, our cash and cash equivalents consisted of $30.4 million of unrestricted cash and cash equivalents and $5.0 million of restricted cash, including $3.4 million of restricted cash held as collateral for letters of credit and commercial card programs. International cash balances as of December 31, 2023 were $12.0 million, including $0.6 million of cash located in countries where currency or regulatory restrictions existed.
11. EMPLOYEE BENEFIT PLANS
We have a defined benefit pension plan covering certain United Kingdom employees (the “U.K. Plan”). Net periodic pension credit includes the following components (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
(unaudited)(unaudited)(unaudited)(unaudited)
Interest cost$678 $678 $1,981 $2,054 
Expected return on plan assets(879)(913)(2,571)(2,765)
Amortization of prior service cost8 8 24 23 
Unrecognized net actuarial loss
82 70 240 212 
Net periodic pension credit$(111)$(157)$(326)$(476)

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Net pension credit is included in “Other (expense) income, net” on our Condensed Consolidated Statements of Operations. The expected long-term rate of return on invested assets is determined based on the weighted average of expected returns on asset investment categories for the U.K. Plan as follows: 5.5% overall, 8.5% for equities and 5.0% for debt securities.

12. SHAREHOLDERS’ EQUITY
Shareholders’ Equity and Preferred Stock
As of September 30, 2024 there were 4,421,876 shares of our common stock outstanding and 12,000,000 shares authorized at $0.30 par value per share.
As of September 30, 2024 we had 500,000 authorized shares of preferred stock, none of which had been issued.
Accumulated Other Comprehensive Income (loss)
A summary of changes in accumulated other comprehensive loss included within shareholders’ equity is as follows (in thousands):
 Nine Months Ended
September 30, 2024		Nine Months Ended
September 30, 2023
 (unaudited)(unaudited)
 Foreign
Currency
Translation
Adjustments		Defined Benefit Pension PlansTax
Provision		TotalForeign
Currency
Translation
Adjustments		Defined Benefit Pension PlansTax
Provision		Total
Balance, beginning of period
$(25,853)$(11,041)$(38)$(36,932)$(28,859)$(10,474)$336 $(38,997)
Other comprehensive income (loss)1,317 264 78 1,659 (1,311)— (35)(1,346)
Balance, end of period$(24,536)$(10,777)$40 $(35,273)$(30,170)$(10,474)$301 $(40,343)

13. COMMITMENTS AND CONTINGENCIES

Certain conditions may exist as of the date the financial statements are issued which may result in a loss to the Company and which will only be resolved when one or more future events occur or fail to occur. Team’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, Team’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.
We accrue for contingencies where the occurrence of a material loss is probable and can be reasonably estimated, based on our best estimate of the expected liability. We may increase or decrease our legal accruals in the future, on a matter-by-matter basis, to account for developments in such matter. Because such matters are inherently unpredictable and unfavorable developments or outcomes can occur, assessing contingencies is highly subjective and requires judgments about future events. Notwithstanding the uncertainty as to the outcome and while our insurance coverage might not be available or adequate to cover these claims, based upon the information currently available, we do not believe that any uninsured losses that might arise from these lawsuits and proceedings will have a materially adverse effect on our condensed consolidated financial statements.
Kelli Most Litigation - On November 13, 2018, Kelli Most filed a lawsuit against Team Industrial Services, Inc., individually and as a personal representative of the estate of Jesse Henson, in the 268th District Court of Fort Bend County, Texas (the “Most litigation”). The complaint asserted claims against Team for negligence resulting in the wrongful death of Jesse Henson. A jury trial commenced on this matter on May 4, 2021. On June 1, 2021, the jury rendered a verdict against Team for $222.0 million in compensatory damages.
On January 25, 2022, the trial court signed a final judgment in favor of the plaintiff and against Team Industrial Services, Inc. Post-judgment motions challenging the judgment were filed on February 24, 2022 and were denied by the trial court on
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April 22, 2022. We appealed the trial court’s judgment to the Texas First Court of Appeals by timely filing a notice of appeal on April 25, 2022 and filed our initial appellate brief on December 23, 2022.
On May 16, 2024, the Texas First Court of Appeals issued a decision which vacated the trial court’s judgment and dismissed the case, holding that the trial court erred in refusing to dismiss the case on forum non conveniens grounds. The plaintiff filed a motion with the Texas First Court of Appeals for rehearing and a motion for en banc reconsideration, which was denied by the Court of Appeals on October 3, 2024. The plaintiff has 45 days to seek review with the Texas Supreme Court. After any further appellate review is exhausted, the plaintiff will be permitted to re-file the lawsuit in Kansas. We currently have accrued a liability of $39.0 million as of September 30, 2024 in other accrued liabilities, and have recorded a related receivable from our third-party insurance providers in other current assets in the same amount. Such amounts are treated as non-cash operating activities. The Most litigation is covered by our general liability and excess insurance policies which are occurrence based and subject to an aggregate $3.0 million self-insured retention and deductible. All retentions and deductibles have been met, and accordingly, we believe pending the final settlement, all further claims will be fully funded by our insurance policies. We will continue to evaluate the possible outcomes of this case in light of future developments and their potential impact on factors relevant to our assessment of any possible loss.
Notice of repayment of pandemic related government subsidies - In response to widespread health crises, epidemics and pandemics, certain of our entities based in foreign jurisdictions received governmental funding assistance to compensate for a portion of employee wages between March 2020 and March 2022. Following ongoing compliance reviews of these funding assistance programs, we received notices stating noncompliance with the requirements of one of these funding assistance programs. Accordingly, based on the assessments completed by the government appointed administrative authority, previously we had accrued $5.5 million to be repaid over an extended period related to this noncompliance. However, during the quarter ended September 30, 2024, we successfully appealed against $2.0 million of the assessment, which resulted in the reduction of the accrued liability from $5.5 million to $3.5 million as of September 30, 2024.
Accordingly, for all matters discussed within this Note 13 - Commitments and Contingencies, we have accrued in the aggregate approximately $42.5 million as of September 30, 2024, of which approximately $3.5 million is not covered by our various insurance policies.
In addition to legal matters discussed above, we are subject to various lawsuits, claims and proceedings encountered in the normal conduct of business (“Other Proceedings”). Management believes that based on its current knowledge and after consultation with legal counsel that the Other Proceedings, individually or in the aggregate, will not have a material effect on our condensed consolidated financial statements.

14. SEGMENT DISCLOSURES
ASC 280, Segment Reporting, requires us to disclose certain information about our operating segments. Operating segments are defined as “components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.” We conduct operations in two segments: IHT and MS.
Segment data for our two operating segments are as follows (in thousands):

 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2024202320242023
 (unaudited)(unaudited)(unaudited)(unaudited)
Revenues:
IHT$107,604 $