Quarterly report pursuant to Section 13 or 15(d)

Revenue

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Revenue
 3 Months Ended
Mar. 31, 2024
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 results 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

    Treatment     Services     Total     Treatment     Services     Total  
(In thousands)   Three Months Ended     Three Months Ended  
    March 31, 2024     March 31, 2023  
    Treatment     Services     Total     Treatment     Services     Total  
Fixed price   $ 8,709     $ 4,314     $ 13,023     $ 9,594     $ 8,647     $ 18,241  
Time and materials     —       594       594        —       1,866       1,866  
Total   $ 8,709     $ 4,908     $ 13,617     $ 9,594     $ 10,513     $ 20,107  

 

Revenue by generator

    Treatment     Services     Total     Treatment     Services     Total  
(In thousands)   Three Months Ended     Three Months Ended  
    March 31, 2024     March 31, 2023  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 5,761     $ 4,303     $ 10,064     $ 7,257     $ 9,718     $ 16,975  
Domestic commercial     2,501       504       3,005       2,206       597       2,803  
Foreign government      —       79       79       95       177       272  
Foreign commercial     447       22       469       36       21       57  
Total   $ 8,709     $ 4,908     $ 13,617     $ 9,594     $ 10,513     $ 20,107  

 

Contract Balances

 

The timing of revenue recognition and billings results in unbilled receivables (contract assets). 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 asset and contract liabilities balances:

 

                Year-to-date     Year-to-date  
(In thousands)   March 31, 2024     December 31, 2023     Change ($)     Change (%)  
Contract assets                                
Unbilled receivables - current   $ 8,797     $                       8,432     $ 365       4.3 %
                                 
Contract liabilities                                
Deferred revenue   $ 7,295     $ 6,815     $ 480       7.0 %

 

 

During the three months ended March 31, 2024, and 2023, the Company recognized revenue of $3,165,000 and $3,494,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of each respective year. Revenue recognized in each period relates to performance obligations satisfied within the respective period.

 

Remaining Performance Obligations

 

The Company applies the practical expedient in ASC 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.