| Operating Segments |
In accordance with ASC 280, “Segment Reporting”,
the Company defines an operating segment as a business activity: (1) from which we may earn revenue and incur expenses; (2) whose operating
results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated
to the segment and assess its performance; and (3) for which discrete financial information is available.
Our reporting segments are defined as below:
TREATMENT SEGMENT, which includes:
| |
- |
nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and |
| |
- |
Research & Development (“R&D”) activities to identify, develop and implement innovative waste processing techniques for problematic waste streams. |
SERVICES SEGMENT, which includes:
| |
- |
Technical services, which include: |
| |
|
|
| |
○ |
professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering; |
| |
○ |
health physics services including health physicists, radiological engineers, nuclear engineers and health physics technicians support to government and private radioactive materials licensees |
| |
○ |
integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance; |
| |
○ |
global technical services providing consulting, engineering (civil, nuclear, mechanical, chemical, radiological and environmental), project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and |
| |
○ |
waste management services to commercial and governmental customers. |
| |
- |
Nuclear services, which include: |
| |
|
|
| |
○ |
decontamination and decommissioning (“D&D”) of government and commercial facilities impacted with radioactive material and hazardous constituents including engineering, technology applications, specialty services, logistics, transportation, processing and disposal; |
| |
○ |
license termination support of radioactive material licensed and federal facilities over the entire cycle of the termination process: project management, planning, characterization, waste stream identification and delineation, remediation/demo, final status survey, compliance demonstration, reporting, transportation, disposal and emergency response. |
| |
|
|
| |
- |
A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation. |
| |
- |
A company owned gamma spectroscopy laboratory for the analysis of oil and gas industry solids and liquids. |
MEDICAL SEGMENT, which is currently involved on a
limited basis in the R&D of the Company’s medical isotope production technology, has not generated any revenue and has substantially
reduced R&D costs and activities due to the need for capital to fund these activities. The Company anticipates that the Medical Segment
will not resume full R&D activities until the necessary capital is obtained through its own credit facility or additional equity raise,
or obtains partners willing to provide funding for its R&D.
Our reporting segments exclude our corporate headquarters
and our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.
The table below presents certain financial information
of our operating segments for the three months ended March 31, 2021 and 2020 (in thousands):
Segment Reporting for the Quarter Ended March 31,
2021
| |
|
|
Treatment |
|
|
|
Services |
|
|
|
Medical |
|
|
|
Segments Total |
|
|
|
Corporate(1) |
|
|
|
Consolidated Total |
|
| Revenue from external customers |
|
$ |
7,495 |
|
|
$ |
15,638 |
|
|
|
— |
|
|
$ |
23,133 |
|
|
$ |
— |
|
|
$ |
23,133 |
|
| Intercompany revenues |
|
|
660 |
|
|
|
7 |
|
|
|
— |
|
|
|
667 |
|
|
|
— |
|
|
|
— |
|
| Gross profit |
|
|
925 |
|
|
|
1,431 |
|
|
|
— |
|
|
|
2,356 |
|
|
|
— |
|
|
|
2,356 |
|
| Research and development |
|
|
47 |
|
|
|
13 |
|
|
|
76 |
|
|
|
136 |
|
|
|
14 |
|
|
|
150 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
18 |
|
| Interest expense |
|
|
(19 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
(27 |
) |
|
|
(40 |
) |
|
|
(67 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8 |
) |
|
|
(8 |
) |
| Depreciation and amortization |
|
|
310 |
|
|
|
85 |
|
|
|
— |
|
|
|
395 |
|
|
|
5 |
|
|
|
400 |
|
| Segment (loss) income before income taxes |
|
|
(119 |
) |
|
|
555 |
|
|
|
(76 |
) |
|
|
360 |
|
|
|
(1,415 |
) |
|
|
(1,055 |
) |
| Income tax benefit |
|
|
(17 |
) |
|
|
— |
|
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
|
|
(17 |
) |
| Segment (loss) income |
|
|
(102 |
) |
|
|
555 |
|
|
|
(76 |
) |
|
|
377 |
|
|
|
(1,415 |
) |
|
|
(1,038 |
) |
| Expenditures for segment assets |
|
|
357 |
|
|
|
4 |
|
|
|
— |
|
|
|
361 |
|
|
|
— |
|
|
|
361 |
(2) |
Segment Reporting for the Quarter Ended March 31,
2020
| |
|
|
Treatment |
|
|
|
Services |
|
|
|
Medical |
|
|
|
Segments Total |
|
|
|
Corporate(1) |
|
|
|
Consolidated Total |
|
| Revenue from external customers |
|
$ |
9,563 |
|
|
$ |
15,297 |
|
|
|
— |
|
|
$ |
24,860 |
|
|
$ |
— |
|
|
$ |
24,860 |
|
| Intercompany revenues |
|
|
207 |
|
|
|
8 |
|
|
|
— |
|
|
|
215 |
|
|
|
— |
|
|
|
— |
|
| Gross profit |
|
|
2,745 |
|
|
|
1,895 |
|
|
|
— |
|
|
|
4,640 |
|
|
|
— |
|
|
|
4,640 |
|
| Research and development |
|
|
94 |
|
|
|
66 |
|
|
|
66 |
|
|
|
226 |
|
|
|
6 |
|
|
|
232 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56 |
|
|
|
56 |
|
| Interest expense |
|
|
(18 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
(24 |
) |
|
|
(96 |
) |
|
|
(120 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(68 |
) |
|
|
(68 |
) |
| Depreciation and amortization |
|
|
264 |
|
|
|
77 |
|
|
|
— |
|
|
|
341 |
|
|
|
5 |
|
|
|
346 |
|
| Segment income (loss) before income taxes |
|
|
1,547 |
|
|
|
1,318 |
|
|
|
(66 |
) |
|
|
2,799 |
|
|
|
(1,477 |
) |
|
|
1,322 |
|
| Income tax expense |
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
| Segment income (loss) |
|
|
1,533 |
|
|
|
1,318 |
|
|
|
(66 |
) |
|
|
2,785 |
|
|
|
(1,477 |
) |
|
|
1,308 |
|
| Expenditures for segment assets |
|
|
679 |
|
|
|
214 |
|
|
|
— |
|
|
|
893 |
|
|
|
3 |
|
|
|
896 |
(2) |
(1) Amounts reflect the activity for corporate
headquarters not included in the segment information.
(2) Net of financed amount of $29,000
and $82,000 for the three month ended March 31, 2021 and 2020, respectively.
|