| 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 |
| |
- |
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; |
| |
○ |
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, project management, waste management, environmental, and decontamination and
decommissioning field, technical, and management personnel and services to commercial and government customers; and |
| |
○ |
on-site
waste management services to commercial and governmental customers. |
| |
- |
Nuclear
services, which include: |
| |
○ |
technology-based
services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction,
logistics, transportation, processing and disposal; |
| |
○ |
remediation
of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes:
project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition,
and planning; site restoration; logistics; transportation; and emergency response; and |
| |
- |
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. |
The
Company’s segment also included the Medical Segment in 2021. As previously discussed, the Company made the strategic decision
to cease all R&D activities under the Medical Segment and sold 100%
of its interest in PFM Poland (which comprised the Medical Segment) in December 2021. The Company’s Medical Segment had not generated
any revenue and was involved in the Company’s medical isotope production technology.
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, 2022 and 2021 (in thousands):
Segment
Reporting for the Quarter Ended March 31, 2022
Schedule
of Segment Reporting Information
| |
|
Treatment |
|
|
Services |
|
|
Segments Total |
|
|
Corporate(1) |
|
|
Consolidated Total |
|
| Revenue from external customers |
|
$ |
7,479 |
|
|
$ |
8,436 |
|
|
$ |
15,915 |
|
|
$ |
— |
|
|
$ |
15,915 |
|
| Intercompany revenues |
|
|
111 |
|
|
|
183 |
|
|
|
294 |
|
|
|
— |
|
|
|
— |
|
| Gross profit |
|
|
638 |
|
|
|
998 |
|
|
|
1,636 |
|
|
|
— |
|
|
|
1,636 |
|
| Research and development |
|
|
65 |
|
|
|
14 |
|
|
|
79 |
|
|
|
17 |
|
|
|
96 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
11 |
|
| Interest expense |
|
|
(14 |
) |
|
|
(1 |
) |
|
|
(15 |
) |
|
|
(20 |
) |
|
|
(35 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
(13 |
) |
| Depreciation and amortization |
|
|
371 |
|
|
|
71 |
|
|
|
442 |
|
|
|
14 |
|
|
|
456 |
|
| Segment (loss) income before income taxes |
|
|
) |
|
|
|
|
|
) |
|
|
(1,726 |
) |
|
|
) |
| Income tax benefit |
|
|
(559 |
) |
|
|
(114 |
) |
|
|
(673 |
) |
|
|
— |
|
|
|
(673 |
) |
| Segment income (loss) |
|
|
78 |
|
|
|
399 |
|
|
|
477 |
|
|
|
(1,726 |
) |
|
|
(1,249 |
) |
| Expenditures for segment assets |
|
|
296 |
|
|
|
49 |
|
|
|
345 |
|
|
|
— |
|
|
|
345 |
(2) |
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 |
|
|
) |
|
|
|
|
|
) |
|
|
|
|
|
(1,415 |
) |
|
|
) |
| 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) |
| (1) |
|
Amounts reflect
the activity for corporate headquarters not included in the segment information. |
| |
|
|
| (2) |
|
Net of financed
amount of $114,000 and $29,000 for the three months ended March 31, 2022 and 2021, respectively. |
|