Company: HCKT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030037
Chunk: 59

Company: HACKETT GROUP, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 59
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 2024 and December 29, 2023, the carrying amount of each financial instrument approximated the instrument’s respective fair value due to the short-term nature and maturity of these instruments.  The Company uses significant other observable market data or assumptions (Level 2 inputs as defined in accounting guidance) that it believes market participants would use in pricing debt. The fair value of the debt approximated the carrying amount, using Level 2 inputs, due to the short-term variable interest rates based on market rates. 

47

THE HACKETT GROUP, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

3. Accounts Receivable and Contract Assets, NetAccounts receivable and contract assets, net, consists of the following (in thousands): 

        December 27,

        December 29,

        2024

        2023

        Accounts receivable
         
        $
        35,926

        $
        35,640

        Contract assets (unbilled revenue)

        23,530

        17,545

        Allowance for doubtful accounts

        (2,377
        )

        (1,072
        )

        $
        57,079

        $
        52,113

      Accounts receivable as of December 27, 2024 and December 29, 2023, is net of uncollected advanced billings. Contract assets as of December 27, 2024 and December 29, 2023 includes recognized recoverable costs and accrued profits on contracts for which billings had not been presented to clients. As of December 31, 2022, the Company had accounts receivable and contract assets of $28.9 million and $20.3 million, respectively. The allowance for doubtful accounts includes reserves related to client collection concerns and aged receivables. The Company has included $7.8 million and $3.9 million for the years ended 2024 and 2023, respectively, in accounts receivable for certain software license unbilled that are multi-year in nature.

4. Property and Equipment, net 

        December 27,

        December 29,

        2024

        2023

        Equipment
         
        $
        2,437

        $
        2,346

        Software

        37,278

        33,444

        Furniture and fixtures

        26

        18

        39,741