What changed in this filing

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Item 1. Business

2021-03-17 compared with 2020-03-06 · 103 added, 83 removed, 255 unchanged (42% of the section changed)

Willdan Group, Inc.

(“Willdan”) is a provider of professional, technical and consulting services to utilities, private industry, and public agencies at all levels of government.

As resources and infrastructures undergo continuous change, we help organizations and their communities evolve and thrive by providing a wide range of technical services for energy solutions and government infrastructure.

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We operate our business through a nationwide network of offices spread across 25 states and the District of Columbia.

We serve 18 of the 25 largest electric utilities and 5 of the 10 largest municipal utilities in the United States (“U.S.”).

Our business with public and private utilities has concentrations in California and New York, but includes numerous other utilities in the Midwest, Southeast and Mountain states and we expect additional acquisitions will continue to expand our geographic footprint.

We serve 18 of the 25 largest electric utilities and 5 of the 10 largest municipal utilities in the United States (“U.S.”).

Our business with public and private utilities has concentrations in California and New York, but includes numerous other utilities in the Midwest, Southeast and Mountain states and additional acquisitions may continue to expand our geographic footprint.

Our business with public agencies is concentrated in California, New York, and Arizona.

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We provide a wide variety of services related to energy efficiency and sustainability, engineering, construction management, economic and financial consulting, and national preparedness and interoperability services primarily to public agencies, utilities, and commercial/industrial firms.

The energy efficiency services market continues to expand in response to the increasing awareness of global warming, climate change issues, and the advent of new technologies in renewable energy generation and the electrification of the nation’s economy.

We believe the energy efficiency services market will continue to expand in response to the increasing awareness of global warming, climate change issues, and the advent of new technologies in renewable energy generation and the electrification of the nation’s economy.

Private industry and public agencies increasingly seek out cost-effective, turnkey solutions that provide innovative energy efficiency, renewable energy, water conservation and sustainability services.

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The engineering and consulting market has grown as public agencies and utilities, as well as private utilities and firms, find it more efficient to outsource design, construction oversight, advisory, and training services to service providers, rather than maintain the necessary staff and resources to provide such services themselves.

For example, we design and provide construction oversight of infrastructure projects for state, and local governments who have increased

their infrastructure-related spending as a result of population growth, increases in local and state funding and aging infrastructure.

For example, we

design and provide construction oversight of infrastructure projects for state and local governments who have increased their infrastructure-related spending as a result of population growth, increases in local and state funding and aging infrastructure.

We provide consulting services to public agencies as they raise the necessary funds to develop such infrastructure projects and provide other services.

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Engineering and Consulting

During fiscal year 2019, we derived 34.7% of our Energy segment contract revenues from two customers, Consolidated Edison of New York and the Los Angeles Department of Water and Power (“LADWP”), and we derived 25% of our Engineering and Consulting segment contract revenues from one customer, the City of Elk Grove.

During fiscal year 2020, we derived 22.5% of our Energy segment contract revenues from two customers, the Los Angeles Department of Water and Power (“LADWP”) and the Dormitory Authority State of New York (“DASNY”), and we derived 18.3% of our Engineering and Consulting segment contract revenues from one customer, the City of Elk Grove.

For further information related to our financial reporting segments, see Part II, Item 8, Note 9, Segment Information and Geographical Information , of the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K.

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Our Energy segment provides specialized, innovative, comprehensive energy solutions to businesses, utilities, state agencies, municipalities, and non-profit organizations in the U.S.

Our experienced engineers, consultants, and staff

help our clients realize cost and energy savings by tailoring efficient and cost‑effective solutions to assist in optimizing energy spend.

Our experienced engineers, consultants, and staff help our clients realize cost and energy savings by tailoring efficient and cost-effective solutions to assist in optimizing energy spend.

Our energy efficiency services include comprehensive audit and surveys, program design, master planning, demand reduction, grid optimization, benchmarking analyses, design engineering, construction management, performance contracting, installation, alternative financing, measurement and verification services, and advances in software and data analytics.

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We assist clients (including hospitals, hotels, government offices, schools, and private companies) in developing and managing facilities and related infrastructures through a holistic, practical approach to facility management.

Our services cover audits, local compliance, operations and maintenance review, renewable energy planning, master plan development, infrastructure analyses, Leadership in Energy and Environmental Design (“LEED”) certification for buildings, and strategies for energy spend and greenhouse gas reduction.

Turnkey Facility and Infrastructure Projects.

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● Consolidated Edison, New York.

We serve as Consolidated Edison’s program manager and implementer for its Small Business Direct Install (“SMB”) program across the utility’s New York City and Westchester County service areas.

The SMB program, Consolidated Edison’s largest energy efficiency program, helps customers save energy, lower their bills, and protect the environment by providing financial incentives to identify and install energy efficiency measures.

To support this effort, we provide full-service program implementation, including outreach and direct sales to potential commercial customers, on-site energy efficiency assessments, direct implementation of energy-savings measures, and subcontractor management.

Dormitory Authority-State New York (“DASNY”), New York.

Our subsidiary, Willdan Energy Solutions (“WES”), provides services to Genesys in its performance of rehabilitation, construction management, architectural, and engineering services at various college and university sites within New York State.

● Dormitory Authority-State New York (“DASNY”), New York.

In connection with our acquisition of substantially all of the assets of Genesys Engineering, P.C.

(“Genesys”) in March 2016, we entered into an administrative services agreement with Genesys pursuant to which we, through our subsidiary Willdan Energy Solutions (“WES”), provide Genesys with ongoing administrative, operational and other non-professional support services in its performance of rehabilitation, construction management, architectural, and engineering services at various college and university sites within New York State.

Services for DASNY under these contracts also include energy efficient design, utility cost evaluation, and various regulatory compliance services.

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The science building houses research and teaching labs, a vivarium, a morgue, office areas, a library, an auditorium, a gymnasium and a pool.

throughout the tower, new hot water and chilled water risers, new central station air handling equipment, new high-temperature hot water to low-temperature hot water heat exchangers, and a lab fit-out with chilled beam secondary heating and cooling.

San Diego Gas and Electric (“SDG&E”), California .

We provide peak-load reduction and energy capacity to SDG&E by coordinating the installation of proven energy efficiency measures, including chiller retrofits, chiller variable-frequency drives (“VFDs”), HVAC VFDs, evaporative cooling, demand control ventilation, two-way valves, and chilled water pump VFDs.

We were responsible for the study, design, and construction management that included the retrofit of 200 standard-flow fume hoods to low-flow, high-efficiency hoods and the installation of high-entrainment fume hood exhaust systems, new lab make-up air units with heat recovery, liquid desiccant dehumidification systems, new supply air risers and general exhaust risers throughout the tower, new hot water and chilled water risers, new central station air handling equipment, new high-temperature hot water to low-temperature hot water heat exchangers, and a lab fit-out with chilled beam secondary heating and cooling.

● San Diego Gas and Electric (“SDG&E”), California .

These measures produce both peak-load reductions and energy savings.

Healthcare Energy Efficiency Program (“HEEP”), Southern California Edison (“SCE”).

● Healthcare Energy Efficiency Program (“HEEP”), Southern California Edison (“SCE”).

We are the implementer of HEEP, which provides incentives and support to healthcare-related facilities to implement energy efficiency upgrades related to lighting, HVAC, boilers, medical equipment, building automation systems, VFDs, sensors, vending controls and retro-commissioning.

We perform American Society of Heating, Refrigerating and Air-Conditioning Engineers (“ASHRAE”) Level I and II audits and ongoing analysis and support of installed measures, as well as develop customized energy efficiency measures including energy savings and peak demand reduction estimates.

Further, we provide financial calculations including forecasted cost savings, payback, and return on investment.

We assist with contractor referrals, request for proposals, and monitoring of installation, as well as perform measurement and verification (“M&V”) to ensure energy savings are achieved.

● Baldwin High School, Kansas.

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● Entergy Corporation, Louisiana.

We supported Entergy’s investments in grid data and analytics capabilities across its electric distribution footprint through a software license for LoadSEER, the modeling application of Integral Analytics.

LoadSEER was developed to provide unique insights and modeling capability for distributed energy resources (“DERs”) and the evolving distribution grid.

The application is used in short- and long-term circuit-level planning and to proactively integrate renewables, energy storage, and efficiency investments.

LoadSEER combines multi-layer risk, geospatial, and scenario modeling;

utilities’

existing tools;

utilities’ existing tools;

engineering efforts;

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We also support the mandated reporting and other requirements associated with these financings.

We do not provide underwriting or financial advisory services for municipal securities.

We provide financial advisory services for municipal securities but do not provide underwriting services.

In general, contracts for engineering and consulting services are awarded by public agencies based primarily upon the qualifications of the engineering or consulting professional, rather than the proposed fees.

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Development Review.

We offer development plan review and inspection services including Americans with Disabilities Act (“ADA”) compliance, preliminary and final plats (maps), grading and drainage, complete infrastructure improvements for residential site plans, commercial site plans, industrial development and subdivision, and major master plan development services.

We have reviewed grading plans, street lighting and traffic signal plans, erosion control plans, storm drain plans, street improvement plans, and sewer water and utility plans.

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Our experience in disaster recovery includes assisting communities in the disaster recovery process following earthquakes, firestorms, mudslides and other natural disasters.

We typically organize and staff several local disaster recovery centers which function as “one‑stop permit centers”

that guarantee turn‑around performance for fast‑track plan checking and inspection services.

We typically organize and staff several local disaster recovery centers which function as “one-stop permit centers” that guarantee turn-around performance for fast-track plan checking and inspection services.

Additionally, we have performed street and storm drain clean-up, replacement or repair of damaged storm drains, streets, and bridges, debris management and preparation and implementation of a near-term erosion and sediment control program.

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We provide comprehensive program and construction management services to our public sector clients.

These services include construction administration, inspection, observation, labor compliance, and community relations, depending on the client’s needs and the scope of the specific project.

Our construction management experience encompasses projects such as streets, bridges, sewers and storm drains, water systems, parks, pools, public buildings, and utilities.

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billing charges directly or through a county tax roll;

preparing the annual Engineer’s Report, budget and resolutions;

reporting on collections and payment status;

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Emergency Preparedness, Planning and Training.

We design, develop, implement, review and evaluate public and private agencies’

emergency operations and hazard mitigation preparedness and plans.

We design, develop, implement, review and evaluate public and private agencies’ emergency operations and hazard mitigation preparedness and plans.

We also provide customized training courses and exercises.

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● City of Elk Grove, California, City Engineering, Capital Improvement, and Infrastructure Services.

We provide comprehensive technical support to the Public Works and Development Services Departments for the over 170,000-resident community of Elk Grove, California.

Services include public counter service, drainage/stormwater/NPDES, traffic engineering, permitting, land development review and inspection, CIP design and construction support, and city planning.

Serving the two City departments is a team of over 40 of our full-time engineers, architects, scientists, managers, observers/inspectors, project managers,

administrative support staff, and a team of subconsultants.

We provide comprehensive technical support to the Public Works and Development Services Departments for

the over 170,000-resident community of Elk Grove, California.

Services include public counter service, drainage/stormwater/NPDES, traffic engineering, permitting, land development review and inspection, CIP design and construction support.

Serving the two City departments is a team of over 35 of our full-time engineers, scientists, managers, observers/inspectors, project managers, administrative support staff, and a team of subconsultants.

All work is accomplished through a task order process that defines the scope of work, time of performance, and cost of services.

● City of Palm Springs, California, Engineering and Construction Management Services.

We provide construction management and public works inspection services related to the City’s Police Department Remodel Project.

The project involves the remodeling of the training center, lobby, records area, detective bureau, and men’s and women’s locker rooms.

We are acting as Owner’s Representative and Construction Manager responsible for coordinating all aspects of the construction, including coordination with the City’s Building Inspection Staff.

We provide construction management and public works inspection services related to the City’s Police Department Remodel Project.

The project involves the remodeling of the training center, lobby, records area, detective bureau, and men’s and women’s locker rooms.

We are acting as Owner’s Representative and Construction Manager responsible for coordinating all aspects of the construction, including coordination with the City’s Building Inspection Staff.

● Contra Costa County, California, City Engineering Services.

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We provide professional traffic engineering services for the Lower Azusa Road/Los Angeles Street Traffic Signal Synchronization Project.

The services include meetings and project coordination with Los Angeles County and various municipalities as well as field review, equipment inventory, reporting for recommended improvements, traffic signal base plans, traffic signal improvement plans and traffic signal utility plans for 29 signalized intersection along the Lower Azusa/Los Angeles Street corridor.

The services include meetings and project coordination with Los Angeles County and various municipalities as well as field review, equipment inventory, reporting for recommended improvements, traffic signal base plans, traffic signal improvement plans and traffic signal utility plans for 29 signalized intersections along the Lower Azusa/Los Angeles Street corridor.

● County of Orange, California, Code Enforcement Services.

Our code enforcement team is responsible for responding to citizen concerns and investigations of a variety of code violations throughout the unincorporated areas of Orange County in support of its Neighborhood Preservation Program, including the reviewing, processing, and closing of code enforcement cases related to land use, zoning, building, grading, nuisance, and property maintenance violations.

Our staff performs review of all case files, inspection of properties, filing notices and complaints against violators, documenting, and preparing violation cases for the district attorney’s office and/or County counsel and testifying in court.

We assist in the entitlement/development process consisting of general land use, zoning and building violations.

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The projects consist of installation of photo voltaic and parking lot lighting upgrades, a new baseball clubhouse, and the complete structural upgrade and remodel of several historic buildings at the Reno campus.

Property Assessed Clean Energy (“PACE”).

● Property Assessed Clean Energy (“PACE”).

PACE is a financing mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy and water conservation projects.

PACE financing is repaid as an assessment on the property owner’s regular tax bill, and is processed the same way as other local public benefit assessments that have been utilized for decades.

Depending on local legislation, PACE can be used to pay for new heating and cooling systems, solar panels, insulation and more for commercial, nonprofit and residential properties.

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The majority of our contracts typically range from $1,000 to $10,000,000 in contract revenue;

however, some of our multi-year contracts have the capacity to provide up to, and in excess, of $100,000,000 in revenue for the implementation of certain energy

efficiency programs.

however, some of our multi-year contracts have the capacity to provide up to, and in excess, of $380,000,000 in revenue for the implementation of certain energy efficiency programs.

Our contracts typically have a duration of between two and thirty-six months, although we have city services contracts that have been in effect for over 30 years.

Most of our contracts include a provision allowing for termination for convenience after reimbursement of any unbilled effort under the contract.

As of December 27, 2019, we had approximately 1,900 open projects.

During fiscal year 2019, we had individual customers that accounted for more than 10% of our consolidated contract revenues.

For fiscal year 2019, the LADWP and Consolidated Edison of New York accounted for 17.9% and 11.2% of our consolidated contract revenue, respectively.

As of January 1, 2021, we had approximately 2,000 open projects.

During fiscal year 2020, we had an individual customer that accounted for more than 10% of our consolidated contract revenues.

For fiscal year 2020, the LADWP accounted for 10.2% of our consolidated contract revenue.

For fiscal year 2020, our top 10 customers accounted for 48.0% of our consolidated contract revenues.

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We collaborate with the LADWP through the Commercial Direct Install Program, which is a small business lighting energy efficiency program that serves all commercial customers in LADWP territory with demand up to 250kW.

On average, this program implements 8,000 energy efficiency projects a year and has implemented almost 80,000 projects since program inception in 2008.

Over that time, we have saved LADWP and its customers over 480,000 MWh per year and 96 MW of peak demand.

We have also provided lead generation identifying roughly 9,000 HVAC tune-ups, 6,000 programmable thermostats installations, and 5,000 hot water efficiency upgrades.

In January 2017, we announced a new three-year contract with Consolidated Edison to implement Consolidated Edison’s Small and Medium Business Direct Install (“SMB”) program across the utility's New York City and Westchester County service area.

This program replaced and expanded Consolidated Edison's Small Business Direct Install (“DCI”) program, which we had implemented since 2009.

On average, this program typically implements approximately 8,000 energy efficiency projects a year and has implemented almost 80,000 projects since program inception in 2008.

Over that time, we have saved LADWP and its customers over 480,000 MWh per year and 96 MW of peak demand and also provided lead generation identifying roughly 9,000 HVAC tune-ups, 6,000 programmable thermostats installations, and 5,000 hot water efficiency upgrades.

This program replaced and expanded Consolidated Edison's Small Business Direct Install (“DCI”) program, which we had implemented since 2009.

It continues the process of diversifying the program offerings.

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To support this effort, we provide full-service program implementation including outreach and direct sales to potential commercial customers, on-site energy efficiency assessments, direct implementation of energy savings measures and subcontractor management.

The administration of incentive payments to other contractors providing services through the program is included in Willdan’s scope, but the structure of the contract is such that these payments are not included in revenue or expenses.

Consolidated Edison may terminate the contract at any time for any reason.

In connection with our acquisition of substantially all of the assets of Genesys Engineering, P.C.

(“Genesys”) in March 2016, we entered into an administrative services agreement with Genesys pursuant to which our subsidiary, WES, provides Genesys with ongoing administrative, operational and other non-professional support services.

Under such administrative services agreement, WES provides administrative services for a series of Genesys’s DASNY contracts.

WES provides administrative services to Genesys in its performance of rehabilitation and construction work and architectural and engineering services at various sites within New York State for DASNY under these contracts, including energy efficient design, utility cost evaluation and review, and various regulatory compliance services.

In connection with our acquisition of substantially all of the assets of Genesys in March 2016, we entered into an administrative services agreement with Genesys pursuant to which our subsidiary, WES, provides Genesys with ongoing administrative, operational and other non-professional support services.

Under such administrative services agreement, WES provides administrative services for a series of Genesys’s DASNY contracts.

WES provides administrative services to Genesys in its performance of rehabilitation and construction work and architectural and engineering services at various sites within New York State.

Services for DASNY under these contracts also include energy efficient design, utility cost evaluation and review, and various regulatory compliance services.

Specific project descriptions are set out by DASNY in work authorizations, which are issued under the terms of the contracts.

The termination dates of the DASNY contracts vary;

the latest of which is February 12, 2021.

Work authorized but not yet completed under this contract continues to be bound by the terms of the agreement beyond the

termination date until completion of the projects.

Genesys expects to receive an amendment from DASNY to the master contract extending the termination date under DASNY’s option to extend this contract term twice, one year at a time.

termination dates of the DASNY contracts vary;

the latest of which is April 2024.

Work authorized but not yet completed under this contract continues to be bound by the terms of the agreement beyond the termination date until completion of the projects.

Genesys expects to receive an amendment from DASNY to the master contract extending the termination date under DASNY’s option to extend this contract term twice, one year at a time.

DASNY may at any time terminate any of the contracts or suspend all projects, for its convenience and without cause.

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While we have a large volume of transactions and generally low customer concentration, the renewal, termination, or modification of a contract may have a material effect on our consolidated operations.

The markets for energy efficiency and sustainability, engineering, construction management, economic and financial consulting, design planning and national preparedness services are competitive and highly fragmented.

Our competition varies by type of client, type of service and geography.

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Contract awards are based primarily on qualifications, relevant experience, staffing capabilities, geographic presence, financial stability and price.

Our Energy segment and our Engineering and Consulting segment competes with firms such as Ecology & Environment, Inc., Iteris, Inc., NV5 Global, Inc., ICF International, Inc., and Ameresco, Inc.

In addition, in certain public finance consulting services, we may compete with large accounting firms.

We face strong competition primarily from other regional, national, and international providers of energy efficiency and sustainability consulting services, local electrical and mechanical contractors and engineering firms, lighting and lighting fixture manufacturers and lighting fixture distributors.

In addition to our existing competitors, new competitors such as large national or international engineering and/or construction companies could enter our markets.

Doing business with utilities and governmental agencies is complex and requires the ability to understand and comply with intricate regulations and to satisfy periodic audits.

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Unlike some of our competitors, we focus our services on utilities and public sector clients.

Utility and public sector clients generally choose among competing firms by weighing the quality, experience, innovation and timeliness of the firm’s services.

When selecting consultants for engineering projects, many utilities and government agencies are required to, and others choose to, employ Qualifications Based Selection (“QBS”).

Utility and public sector clients generally choose among competing firms by weighing the quality, experience, innovation and timeliness of the firm’s services.

When selecting consultants for engineering projects, many utilities and government agencies are required to, and others choose to, employ Qualifications Based Selection (“QBS”).

QBS requires the selection of the most technically qualified firms for a project, while the financial and legal terms of the engagement are generally secondary.

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To address the hazards inherent in our business, we maintain insurance coverage through the following policies:

commercial general liability, automobile liability, workers’

compensation and employer’s liability, cyber liability, professional liability and umbrella/excess liability.

commercial general liability, automobile liability, workers’ compensation and employer’s liability, cyber liability, professional liability and umbrella/excess liability.

However, if any claims, settlements, or judgements, individually or in the aggregate, exceed our policy limits, we are liable to pay these claims from our assets.

We believe our coverage limits reasonably protect us from any material adverse impact that may arise from these insured risks.

At December 27, 2019, we employed a total of 1,451 employees, excluding contractors.

Government Regulation, Licensing, and Enforcement

A significant portion of our revenues is derived from services provided to public utilities which are generally overseen by state or local public utility commissions who provide and administer a regulatory framework governing the sourcing, distribution, pricing and general management of electricity and natural gas.

Our services are often mandated by these regulatory frameworks requiring utilities to meet certain goals for energy efficiency, renewable energy and other metrics which impact demand for our services.

This framework of regulatory mandates is updated by state and local ordinance and some federal regulatory action as well.

Demand for our services can be impacted from year to year by changes in these regulatory acts regarding energy management, utility budgets and the allowable financial parameters imposed by these regulatory agencies.

Human Capital Resources

The foundation of our continuing success as a professional services enterprise is the ability to attract and retain qualified talent by providing a culture of equity, diversity, inclusion, development, opportunity and empowerment.

This understanding informs our approach to managing our human capital resources.

Our Workforce

As of January 1, 2021, we employed a total of 1,353 employees, excluding contractors.

Our employees include, among others, licensed electrical, mechanical, structural, geotechnical and civil engineers;

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We believe that we attract and retain highly skilled personnel with significant industry experience and strong client relationships by offering them challenging assignments in a stable work environment combined with employee benefit programs that we believe are competitive with those offered by our competitors.

See Part I, Item 1A, "Risk Factors"

included in this Annual Report on Form 10-K for a discussion of the risks related to the loss of key personnel or our inability to attract and retain qualified personnel.

The following table sets forth the number of our employees in each of our business segments and our holding company:

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Holding Company Employees (Willdan Group, Inc.)

Diversity, Equity and Inclusion

While diversity, equity and inclusion has always been a part of our culture, we continue to advance efforts to integrate our principles into all aspects of our work and measure results.

We believe our success depends on creating and maintaining a qualified and diverse company.

As our people represent an ever-broader diversity of gender, age, race, cultural background, language, sexual orientation, ability, and national origin, we become an ever-stronger company.

Our vision is to create a culture of acceptance and individuality, where all employees feel respected, included, and encouraged to bring their unique perspectives, ideas, and skills to work each day.

In 2020, we established Willdan’s Diversity, Equity, and Inclusion (DEI) Working Group which identified initial goals and objectives focused on two key areas:

1) conducting a multi-pronged analysis of employee recruitment, development, engagement, and community outreach;

and 2) developing and tracking key performance indicators and progress toward DEI objectives.

We strive to attract and retain professionals with the diverse expertise our clients and teams require to solve complex challenges, as energy and infrastructure transform and expand.

Our goal is for our staff, suppliers, and subcontractors to accurately reflect the communities where we live and work.

To bring more diverse and talented people to our team, we partner with professional organizations that represent and support diverse applicants.

We seek out and hire minority-owned subcontractors on our projects and regularly use minority-owned suppliers.

These partnerships offer economic opportunity to local, minority-owned, and disadvantaged business enterprises.

We can better serve all communities by using contracting teams that mirror the culture and demographics of the communities where we work.

Workplace Safety

We recognize the critical role that all of our employees play in sustaining a safe and compliant work environment, and we understand that our leaders are responsible for the ongoing improvement of operational discipline and safety culture.

Every employee and subcontractor is expected to apply this approach when performing all work activities.

Our Health and Safety Council meets monthly and our Health and Safety program is designed to address the hazards associated with our business and to prevent workplace injuries and illness.

We track and report all safety incidents.

Our safety incident metrics is provided below.

For context, lost-time injuries are those occurring in the workplace and resulting in an employee’s inability to work the next full workday.

A recordable case rate (RCR) describes the number of employees per 100 full-time employees that have been involved in an OSHA recordable injury or illness.

The lost-time incident rate (LTIR) is the number of lost-time injuries that occurred in a given period, relative to the total number of hours worked in the same period.

Intellectual Property

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Consequently, we believe it is important to protect our brand identity through trademark registrations.

The Willdan, Willdan Group, Inc., Willdan Engineering, Willdan Infrastructure, Willdan Financial Services, Willdan Energy Solutions and Willdan Homeland Services names are service marks of ours, and we have obtained a service mark for the Willdan and “W”

We have also obtained federal service mark registration with the United States Patent and Trademark Office for the “Willdan”

name, “Willdan Group, Inc.”

name and the “extending your reach”

We have also obtained federal service mark registration with the United States Patent and Trademark Office for the “Willdan” name, “Willdan Group, Inc.” name and the “extending your reach” tagline.

The name and logo of our proprietary software, MuniMagic+ SM , are registered service marks of Willdan Financial Services, and we have registered a federal copyright for the source code for the MuniMagic+ SM software.

In connection with our acquisitions, we have obtained the trademark for our “LoadSEER”

software, have obtained the patent for “Optimization of Microgrid Energy Use and Distribution”, have obtained the service marks for the Enerpath, Enerworks and Lime/Green Dial Design, and have obtained the registered copyright of Lime, Lime Energy, Lime Energy “less is more”

design and Main Street Efficiency.

In connection with our acquisitions, we have obtained the trademark for our “LoadSEER” software, have obtained the patent for “Optimization of Microgrid Energy Use and Distribution”, have obtained the service marks for the Enerpath, Enerworks and Lime/Green Dial Design, and have obtained the registered copyright of Lime, Lime Energy, Lime Energy “less is more” design and Main Street Efficiency.

Available Information

We maintain an Internet website at http://www.willdan.com.

Through our website, in the “Investors”

section under the heading “SEC Filings”, we make available, free of charge, our annual reports on Form 10‑K, quarterly reports on Form 10‑Q, current reports on Form 8‑K, proxy statements, and amendments to those reports, as soon as reasonably practicable after we electronically file or furnish such materials to the SEC.

We also make available on this website our prior earnings calls under the heading “Events and Presentations”

and our Code of Ethical Conduct under the heading “Investors—Corporate Governance.”

The information on our website is not a part of or incorporated by reference into this filing.

Through our website, in the “Investors” section under the heading “SEC Filings”, we make available, free of charge, our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and amendments to those reports, as soon as reasonably practicable after we electronically file or furnish such materials to the SEC.

We also make available on this website our prior earnings calls under the heading “Events and Presentations” and our Code of Ethical Conduct under the heading “Investors—Corporate Governance.” The information on our website is not a part of or incorporated by reference into this filing.

The SEC maintains an Internet site that contains reports, proxy, and information statements and other information regarding our filings at http://www.sec.gov.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business