Annual report [Section 13 and 15(d), not S-K Item 405]

SEGMENT REPORTING

v3.25.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 16

SEGMENT REPORTING

 

In accordance with ASC 280, “Segment Reporting”, the Company defines an operating segment as a business activity:

 

  ● from which we may earn revenue and incur expenses;
  ● 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
  ● for which discrete financial information is available.

 

The Company has two reporting segments, consisting of the Treatment and Services Segments, which are primarily based on a service offering approach (see “Note 1- Description of Business and Basis of Presentation” for the type of services from which each of the Company’s reportable segments derives its revenue). The Company’s reporting segments exclude our corporate headquarter which serves to support its two reporting segments through various functions, such as our executives, finance, treasury, human resources, accounting, and legal departments. Financial results for the corporate headquarter are not considered by the CODM in evaluating the performance of the reportable segments. Our reporting segment also excludes our discontinued operations (see “Note 8 – Discontinued Operations”) which do not generate revenues.

 

The Company’s CODM, which is its chief executive officer, evaluates the performance of the Treatment and Services segments and allocates resources (including financial or capital resources) to each reporting segment based on revenue and (loss) income from operations by comparing actual results for these metrics to budgeted and forecasted amounts for these metrics on a monthly, quarterly and year-to-date basis.

 

The Company’s CODM does not evaluate and allocate resources for the reportable segments using assets; therefore, the Company does not disclosure assets for its reporting segments.

 

The table below summarizes (loss) income from operations for the Company’s two reporting segments and its corporate headquarter and provides reconciliation of such financial metric to the Company’s consolidated totals for the years 2024 and 2023 for our continuing operations. Significant segment expenses that are included in the measure of segment profit or losses for each reportable segment, and regularly provided to the CODM include payroll and benefit, material and supplies, disposal and transportation and subcontract expenses and are reflected separately, where applicable (in thousands).

 SCHEDULE OF SEGMENT REPORTING INFORMATION

Segment Reporting as of and for the year ended December 31, 2024

 

    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 34,953     $ 24,164     $ 59,117 (4)(5)   $ —     $ 59,117  
Cost of Goods Sold:                                        
Payroll and benefits expenses     16,257       9,494       25,751       —       25,751  
Material and supplies expenses     4,074       —       4,074       —       4,074  
Disposal expenses     5,317       —       5,317       —       5,317  
Transportation expenses     1,118       —       1,118       —       1,118  
Subcontract expenses     —       7,152       7,152       —       7,152  
Other cost of goods sold (2)     9,297       6,406       15,703       —       15,703  
Total cost of goods sold     36,063       23,052       59,115       —       59,115  
Gross (loss) profit     (1,110 )     1,112       2       —       2  
Selling, general and administrative expenses (“SG&A”):                                        
Payroll and benefits     2,858       2,413       5,271       3,296       8,567  
Other SG&A (3)     1,432       892       2,324       3,600       5,924  
Total SG&A     4,290       3,305       7,595       6,896       14,491  
Research and development     842       111       953       219       1,172  
Loss on disposal of property and equipment     18       3       21       —       21  
Loss from operations   $ (6,260 )   $ (2,307 )   $ (8,567 )   $ (7,115 )     (15,682 )
Interest income                                     921  
Interest expense                                     (473 )
Interest expense-financing fees                                     (66 )
Other income                                     166  
Loss from continuing operations before taxes                                     (15,134 )
Income tax expense                                     4,435  
Loss from continuing operations, net of taxes                                   $ (19,569 )

 

 

Segment Reporting as of and for the year ended December 31, 2023

 

    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 43,477     $ 46,258       $89,735 (4)(5)   $ —     $ 89,735  
Cost of goods sold:                                        
Payroll and benefit expenses     14,655       11,800       26,455       —       26,455  
Material and supplies expenses     3,747       —       3,747       —       3,747  
Disposal expenses     6,576       —       6,576       —       6,576  
Transportation expenses     1,457       —       1,457       —       1,457  
Subcontract expenses     —       15,555       15,555       —       15,555  
Other cost of goods sold (2)     10,166       9,410       19,576       —       19,576  
Total cost of goods sold     36,601       36,765       73,366       —       73,366  
Gross profit     6,876       9,493       16,369       —       16,369  
Selling, general and administrative expenses (“SG&A”):                                        
Payroll and benefits     2,438       2,662       5,100       3,812       8,912  
Other SG&A (3)     1,811       834       2,645       3,418       6,063  
Total SG&A     4,249       3,496       7,745       7,230       14,975  
Research and development     418       38       456       105       561  
Loss on disposal of property and equipment     —       77       77       —       77  
Income (loss) from operations   $ 2,209     $ 5,882     $ 8,091     $ (7,335 )     756  
Interest income                                     606  
Interest expense                                     (323 )
Interest expense-financing fees                                     (93 )
Other expense                                     (11 )
Income from continuing operations before taxes                                     935  
Income tax expense                                     17  
Income from continuing operations, net of taxes                                   $ 918  

 

(1) Amounts reflect the activity for corporate headquarters not included in the segment reporting information.
   
(2) Other cost of goods sold for each reportable segment includes:
Treatment - lab, regulatory, maintenance, depreciation and amortization, travel, outside services and general expenses.
  Services - material and supplies, disposal and transportation, lab, regulatory, maintenance, depreciation and amortization, travel, outside services and general expenses.
   
(3) Other SG&A for each reportable segment and Corporate includes:
  Treatment-depreciation and amortization, travel, outside services, maintenance and general expenses.
  Services- travel, outside services, maintenance and general expenses.
  Corporate-maintenance, depreciation and amortization, travel, public company, outside services and general expenses.
   
(4) The Company performed services relating to waste generated by federal government clients, either directly as a prime contractor or indirectly for others as a subcontractor to federal government entities, representing approximately $40,550,000 or 68.6% of total revenue for 2024 and $68,595,000 or 76.4% of total revenue for 2023.
   
(5) The following table reflects revenue based on customer location:

 

    2024     2023  
United States   $ 56,665     $ 87,669  
Canada     513       1,685  
Germany     734       206  
Italy     77        —  
Mexico     394       —  
Slovenia     181       87  
United Kingdom     553       88  
Total   $ 59,117     $ 89,735  

 

The following table presents depreciation and amortization for the years ended December 31, (in thousand):

 

    2024     2023  
Treatment   $ 1,484     $ 2,112  
Services     177       397  
Total segment     1,661       2,509  
Corporate     102       59  
Total   $ 1,763     $ 2,568  

 

The following table presents capital expenditures for the years ended December 31, (net of financed amount of $406 and $784 for 2024 and 2023, respectively (in thousand):

 

    2024     2023  
Treatment   $ 3,002     $ 1,696  
Services     403       10  
Total segment     3,405       1,706  
Corporate      —       8  
Total   $ 3,405     $ 1,714  

 

The following table presents long-lived assets for the Company’s continuing operations for the years ended December 31, (in thousand):

 

    2024     2023  
United States   $ 21,133     $ 19,009  
Foreign Subsidiaries     —       —  
Total   $ 21,133     $ 19,009