| 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 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 |
| |
- |
R&D activities to identify, develop and implement innovative waste processing techniques for
problematic waste streams. |
SERVICES
SEGMENT, which includes:
| |
- |
Technical
services, which include: |
| |
o |
professional
radiological measurement and site survey of large government and commercial installations using advanced methods, technology and
engineering; |
| |
o |
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; |
| |
o |
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 |
| |
o |
on-site
waste management services to commercial and governmental customers. |
| |
- |
Nuclear
services, which include: |
| |
o |
technology-based
services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction,
logistics, transportation, processing and disposal; |
| |
o |
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 months ended March 31, 2024, and 2023 (in
thousands):
Schedule
of Segment Reporting Information
Segment
Reporting for the Quarter Ended March 31, 2024
| |
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
| |
|
Treatment |
|
|
Services |
|
|
Segments
Total |
|
|
Corporate
(1) |
|
|
Consolidated
Total |
|
| Revenue from external customers |
|
$ |
8,709 |
|
|
$ |
4,908 |
|
|
$ |
13,617 |
|
|
$ |
— |
|
|
$ |
13,617 |
|
| Intercompany revenues |
|
|
45 |
|
|
|
16 |
|
|
|
61 |
|
|
|
— |
|
|
|
— |
|
| Gross loss |
|
|
(52 |
) |
|
|
(568 |
) |
|
|
(620 |
) |
|
|
— |
|
|
|
(620 |
) |
| Research and development |
|
|
218 |
|
|
|
28 |
|
|
|
246 |
|
|
|
50 |
|
|
|
296 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
174 |
|
|
|
174 |
|
| Interest expense |
|
|
(36 |
) |
|
|
— |
|
|
|
(36 |
) |
|
|
(80 |
) |
|
|
(116 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13 |
) |
|
|
(13 |
) |
| Depreciation and amortization |
|
|
366 |
|
|
|
44 |
|
|
|
410 |
|
|
|
21 |
|
|
|
431 |
|
| Income tax benefit |
|
|
(525 |
) |
|
|
(431 |
) |
|
|
(956 |
) |
|
|
— |
|
|
|
(956 |
) |
| Segment loss |
|
|
(846 |
) |
|
|
(957 |
) |
|
|
(1,803 |
) |
|
|
(1,655 |
) |
|
|
(3,458 |
) |
| Expenditures for segment assets |
|
|
160 |
|
|
|
84 |
|
|
|
244 |
|
|
|
— |
|
|
|
244 |
(2) |
Segment
Reporting for the Quarter Ended March 31, 2023
| |
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
| |
|
Treatment |
|
|
Services |
|
|
Segments
Total |
|
|
Corporate
(1) |
|
|
Consolidated
Total |
|
| Revenue from external customers |
|
$ |
9,594 |
|
|
$ |
10,513 |
|
|
$ |
20,107 |
|
|
$ |
— |
|
|
$ |
20,107 |
|
| Intercompany revenues |
|
|
204 |
|
|
|
19 |
|
|
|
223 |
|
|
|
— |
|
|
|
— |
|
| Gross profit |
|
|
1,252 |
|
|
|
1,757 |
|
|
|
3,009 |
|
|
|
— |
|
|
|
3,009 |
|
| Research and development |
|
|
67 |
|
|
|
3 |
|
|
|
70 |
|
|
|
29 |
|
|
|
99 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
—
|
|
|
|
127 |
|
|
|
127 |
|
| Interest expense |
|
|
(22 |
) |
|
|
(1 |
) |
|
|
(23 |
) |
|
|
(30 |
) |
|
|
(53 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
—
|
|
|
|
(20 |
) |
|
|
(20 |
) |
| Depreciation and amortization |
|
|
573 |
|
|
|
160 |
|
|
|
733 |
|
|
|
14 |
|
|
|
747 |
|
| Income tax benefit |
|
|
(174 |
) |
|
|
(30 |
) |
|
|
(204 |
) |
|
|
— |
|
|
|
(204 |
) |
| Segment income (loss) |
|
|
331 |
|
|
|
973 |
|
|
|
1,304 |
|
|
|
(1,622 |
) |
|
|
(318 |
) |
| Expenditures for segment assets |
|
|
748 |
|
|
|
— |
|
|
|
748 |
|
|
|
— |
|
|
|
748
|
(2)
|
| (1) |
|
Amounts reflect
the activity for corporate headquarters not included in the segment information. |
| (2) |
|
Net of financed
amount of $44,000 and $50,000 for the three months ended March 31, 2024, and 2023, respectively. |
|