Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2.2
Revenue
9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue

3. Revenue

 

Disaggregation of Revenue

 

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of our services and provides meaningful disaggregation of each business segment’s results of operations. The nature of the Company’s performance obligations within our Treatment and Services Segments result in the recognition of our revenue primarily over time. The following tables present further disaggregation of our revenues by different categories for our Services and Treatment Segments:

 

Revenue by Contract Type                                    
(In thousands)   Three Months Ended     Three Months Ended  
    September 30, 2022     September 30, 2021  
    Treatment     Services     Total     Treatment     Services     Total  
Fixed price   $ 8,877     $ 6,892     $ 15,769     $ 8,893     $ 3,031     $ 11,924  
Time and materials           2,703       2,703             3,873       3,873  
Total   $ 8,877     $ 9,595     $ 18,472     $ 8,893     $ 6,904     $ 15,797  

 

Revenue by Contract Type                                    
(In thousands)   Nine Months Ended     Nine Months Ended  
    September 30, 2022     September 30, 2021  
    Treatment     Services     Total     Treatment     Services     Total  
Fixed price   $ 24,749     $ 20,569     $ 45,318     $ 24,094     $ 7,094     $ 31,188  
Time and materials           8,524       8,524             23,887       23,887  
Total   $ 24,749     $ 29,093     $ 53,842     $ 24,094     $ 30,981     $ 55,075  

 

Revenue by generator                                    
(In thousands)   Three Months Ended     Three Months Ended  
    September 30, 2022     September 30, 2021  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 5,728     $ 9,264     $ 14,992     $ 6,725     $ 4,552     $ 11,277  
Domestic commercial     2,806       313       3,119       1,956       399       2,355  
Foreign government     287             287       36       1,931       1,967  
Foreign commercial     56       18       74       176       22       198  
Total   $ 8,877     $ 9,595     $ 18,472     $ 8,893     $ 6,904     $ 15,797  

 

Revenue by generator                                    
(In thousands)   Nine Months Ended     Nine Months Ended  
    September 30, 2022     September 30, 2021  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 17,786     $ 28,158     $ 45,944     $ 16,962     $ 24,172     $ 41,134  
Domestic commercial     6,045       859       6,904       6,284       1,185       7,469  
Foreign government     532       12       544       577       5,556       6,133  
Foreign commercial     386       64       450       271       68       339  
Total   $ 24,749     $ 29,093     $ 53,842     $ 24,094     $ 30,981     $ 55,075  

 

Contract Balances

 

The Company’s contract liabilities consist of deferred revenues which represent advance payment from customers in advance of the completion of our performance obligation. The following table represents changes in our contract liabilities balances:

 

                Year-to-date     Year-to-date  

(In thousands)

  September 30, 2022     December 31, 2021     Change ($)     Change (%)  
Contract liabilities                                
Deferred revenue   $ 3,145     $ 5,580     $ (2,435 )     (43.6 )%

 

The decrease was attributed primarily to revenue recognized in connection with a Services Segment contract.

 

 

During the three and nine months ended September 30, 2022, the Company recognized revenue of $494,000 and $6,138,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. During the three and nine months ended September 30, 2021, the Company recognized revenue of $561,000 and $6,635,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. All revenue recognized in each period related to performance obligations satisfied within the respective period.

 

Variable Consideration

 

The Company’s revenue for the three months ended September 30, 2022 included approximately $384,000 recognized within the Company’s Treatment Segment and $148,000 recognized within the Company’s Services Segment that resulted from cumulative catch-up adjustments in transaction price from performance obligations satisfied or partially satisfied in the prior periods that had been constrained. During the three months ended September 30, 2021, the Company recognized approximately $1,286,000 in revenue from a request for equitable adjustment (“REA”) in its Treatment Segment that resulted in cumulative catch-up adjustment in transaction price that had been constrained in prior period.

 

Remaining Performance Obligations

 

The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

 

Within our Services Segment, there are service contracts which provide that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. For those contracts, the Company has utilized the practical expedient in ASC 606-10-55-18, which allows the Company to recognize revenue in the amount for which we have the right to invoice; accordingly, the Company does not disclose the value of remaining performance obligations for those contracts.

 

The Company’s contracts and subcontracts relating to activities at governmental sites generally allow for termination for convenience at any time at the government’s option without payment of a substantial penalty. The Company does not disclose remaining performance obligations on these contracts.