Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.23.3
Operating Segments
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Operating Segments

11. 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 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 and 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;
○ 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.

 

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 and nine months ended September 30, 2023 and 2022 (in thousands).

 

 

Segment Reporting for the Quarter Ended September 30, 2023

 

                      (1)        
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 10,795     $ 11,082     $ 21,877     $ —     $ 21,877  
Intercompany revenues     4       88       92       —       —  
Gross profit     1,494       3,055       4,549       —       4,549  
Research and development     102       1       103       17       120  
Interest income     —       —       —       146       146  
Interest expense     (23 )     (1 )     (24 )     (65 )     (89 )
Interest expense-financing fees     —       —       —       (36 )     (36 )
Depreciation and amortization     584       88       672       14       686  
Segment income (loss)     1,014       1,120       2,134       (1,888 )     246  
Expenditures for segment assets     333       7       340       —       340 (3)

 

Segment Reporting for the Quarter Ended September 30, 2022

 

                      (1)        
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 8,877     $ 9,595     $ 18,472     $ —     $ 18,472  
Intercompany revenues     28       16       44       —       —  
Gross profit     1,967       1,103       3,070       —       3,070  
Research and development     55       —       55       14       69  
Interest income     —       —       —       29       29  
Interest expense     (20 )     (2 )     (22 )     (25 )     (47 )
Interest expense-financing fees     —       —       —       (16 )     (16 )
Depreciation and amortization     387       87       474       23       497  
Segment income (loss)     1,628       710       2,338       (1,514 )     824 (2)
Expenditures for segment assets     149       39       188       1       189 (4)

 

Segment Reporting for the Nine Months Ended September 30, 2023

 

                      (1)        
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 33,223     $ 33,793     $ 67,016     $ —     $ 67,016  
Intercompany revenues     234       124       358       —       —  
Gross profit     5,237       6,837       12,074       —       12,074  
Research and development     260       11       271       69       340  
Interest income     —       —       —       445       445  
Interest expense     (68 )     (2 )     (70 )     (119 )     (189 )
Interest expense-financing fees     —       —       —       (80 )     (80 )
Depreciation and amortization     1,745       337       2,082       42       2,124  
Segment income (loss)     2,619       2,933       5,552       (5,104 )     448  
Expenditures for segment assets     1,376       10       1,386       —       1,386 (3)

 

Segment Reporting for the Nine Months Ended September 30, 2022

 

                      (1)        
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 24,749     $ 29,093     $ 53,842     $ —     $ 53,842  
Intercompany revenues     28       43       71       —       —  
Gross profit     4,168       3,422       7,590       —       7,590  
Research and development     179       23       202       43       245  
Interest income     —       —       —       69       69  
Interest expense     (53 )     —       (53 )     (70 )     (123 )
Interest expense-financing fees     —       —       —       (44 )     (44 )
Depreciation and amortization     1,139       244       1,383       50       1,433  
Segment income (loss)     1,766       1,580       3,346       (5,028 )     (1,682 )(2)
Expenditures for segment assets     819       127       946       1       947 (4)

 

(1) Amounts reflect the activity for corporate headquarters not included in the segment information.

 

 

(2) Includes approximately $1,975,000 recorded as other income under the Employee Retention Credit program under the CARES Act, as amended (see “Note 13 – Employee Retention Credit (“ERC”) below for a discussion of this refund amount).

 

(3) Net of financed amount of $152,000 and $309,000 for the three and nine months ended September 30, 2023, respectively.

 

(4) Net of financed amount of $0 and $114,000 for the three and nine months ended September 30, 2022, respectively.