Quarterly report [Sections 13 or 15(d)]

Operating Segments

v3.26.3
Operating Segments
 9 Months Ended
Sep. 30, 2026
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 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.

 

The Company has two reporting segments, consisting of the Treatment and Services Segments, which are primarily based on a service offering approach and defined as follow:

 

TREATMENT SEGMENT 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 includes:

 

  - Technical services:

 

  ○ 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 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 OSHA citation assistance;
  ○ global technical services providing consulting, engineering, project management, waste management, environmental, and D&D 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:

 

  ○ technology-based services including engineering, 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 NEOSH instrumentation.

 

 

The Company’s CODM is represented by its CEO and COO (or “CODM group”). The CODM group evaluates the performance of the Treatment and Services segments and allocates resources to each reporting segment based on revenue and income (loss) from operations by comparing actual results for these measures to budgeted and forecasted amounts on a monthly, quarterly and year-to-date basis. The Company’s CODM group does not evaluate and allocate resources for the reportable segments using assets, including expenditures for additions to long-lived assets; therefore, the Company does not disclose asset information for its reporting segments.

 

The Company’s reportable segments exclude corporate headquarters, which support the Company’s two reportable segments through executive management, finance, treasury, human resources, accounting, legal, and other corporate functions. The financial results of corporate headquarters are not included in segment income (loss) from operations, the measure reviewed by the CODM, and are presented as unallocated corporate expenses in the reconciliation of segment income (loss) from operations to consolidated income (loss) from continuing operations before income taxes. The Company’s reportable segments also exclude discontinued operations (see Note 10 – Discontinued Operations), which do not generate revenues.

 

The table below summarizes segment income (loss) from operations, the measure reviewed by the CODM, and reconciles this measure to consolidated loss from continuing operations before income taxes for the three and nine months ended September 30, 2026 and 2025. Significant segment expense categories included in segment income (loss) from operations include payroll and benefits, materials and supplies, disposal, transportation, and subcontract expenses. These expense categories are presented separately, where applicable. R&D expenses, while not considered a significant segment expense category, are also presented separately because they are regularly provided to the CODM (in thousands).

 

Segment Reporting for the Three Months Ended September 30, 2026

 

    Treatment     Services     Consolidated Total  
Revenue from external customers   $ 11,601     $ 6,347     $ 17,948  
Cost of Goods Sold:                        
Payroll and benefits expenses     5,728       2,720          
Material and supplies expenses     1,969       —          
Disposal expenses     1,104       —          
Transportation expenses     260       —          
Subcontract expenses     —       1,088          
Other cost of goods sold (1)     2,765       1,762          
Total cost of goods sold     11,826       5,570          
Gross (loss) profit     (225 )     777          
SG&A:                        
Payroll and benefits     916       399          
Other SG&A (2)     416       179          
Total SG&A     1,332       578          
R&D     165       3          
Gain on disposal of property and equipment     —       (5 )        
(Loss) income from operations   $ (1,722 )   $ 201       (1,521 )
Interest income                     240  
Interest expense                     (80 )
Interest expense-financing fees                     (16 )
Other income                     114  
Unallocated corporate expenses (3)                     (2,145 )
Loss from continuing operations before taxes                   $ (3,408 )


 

 

Segment Reporting for the Three Months Ended September 30, 2025

 

    Treatment     Services     Consolidated Total  
Revenue from external customers   $ 13,114     $ 4,340     $ 17,454  
Cost of Goods Sold:                        
Payroll and benefits expenses     4,809       2,358          
Material and supplies expenses     2,158        —          
Disposal expenses     1,075        —          
Transportation expenses     361        —          
Subcontract expenses      —       118          
Other cost of goods sold (1)     2,445       1,573          
Total cost of goods sold     10,848       4,049          
Gross profit     2,266       291          
SG&A:                        
Payroll and benefits     947       547          
Other SG&A (2)     386       199          
Total SG&A     1,333       746          
R&D     257       2          
Loss on disposal of property and equipment     4        —          
Income (loss) from operations   $ 672     $ (457 )     215  
Interest income                     266  
Interest expense                     (116 )
Interest expense-financing fees                     (22 )
Other expense                     (18 )
Unallocated corporate expenses (3)                     (2,087 )
Loss from continuing operations before taxes                   $ (1,762 )

 

Segment Reporting for the Nine Months Ended September 30, 2026

 

    Treatment     Services     Consolidated Total  
Revenue from external customers   $ 27,768     $ 14,191     $ 41,959  
Cost of Goods Sold:                        
Payroll and benefits expenses     15,950       7,142          
Material and supplies expenses     4,887       —          
Disposal expenses     3,470       —          
Transportation expenses     1,085       —          
Subcontract expenses     —       1,759          
Other cost of goods sold (1)     8,087       4,412          
Total cost of goods sold     33,479       13,313          
Gross profit     (5,711 )     878          
SG&A:                        
Payroll and benefits     2,685       1,561          
Other SG&A (2)     1,371       242          
Total SG&A     4,056       1,803          
R&D     584       7          
Gain on disposal of property and equipment     —       (5 )        
Loss from operations   $ (10,351 )   $ (927 )     (11,278 )
Interest income                     624  
Interest expense                     (213 )
Interest expense-financing fees                     (59 )
Other income                     258  
Unallocated corporate expenses (3)                     (6,378 )
Loss from continuing operations before taxes                   $ (17,046 )

 

Segment Reporting for the Nine Months Ended September 30, 2025

 

    Treatment     Services     Consolidated Total  
Revenue from external customers   $ 33,696     $ 12,263     $ 45,959  
Cost of Goods Sold:                        
Payroll and benefits expenses     13,988       6,245          
Material and supplies expenses     4,744       —

          
Disposal expenses     2,391        —          
Transportation expenses     1,222        —          
Subcontract expenses      —       1,184          
Other cost of goods sold (1)     7,269       4,155          
Total cost of goods sold     29,614       11,584          
Gross profit     4,082       679          
SG&A:                        
Payroll and benefits     2,763       1,732          
Other SG&A (2)     1,276       573          
Total SG&A     4,039       2,305          
R&D     780       29          
Loss (gain) on disposal of property and equipment     3       (5 )        
Loss from operations   $ (740 )   $ (1,650 )     (2,390 )
Interest income                     901  
Interest expense                     (351 )
Interest expense-financing fees                     (63 )
Other income                     171  
Unallocated corporate expenses (3)                     (6,112 )
Loss from continuing operations before taxes                   $ (7,844 )

 

(1)

Other cost of goods sold for each reportable segment includes:

 

Treatment - lab, regulatory, repair and maintenance, depreciation and amortization, travel, outside services and general expenses.

Services - material and supplies, disposal, transportation, lab, regulatory, repair and maintenance, depreciation and amortization, travel, outside services and general expenses.
   
(2)

Other SG&A for each reportable segment includes:

 

Treatment- depreciation and amortization, travel, outside services, repair and maintenance and general expenses.

Services- travel, outside services, repair and maintenance and general expenses.
   
(3) The following table reflects the unallocated corporate expenses. “Other” unallocated corporate expenses consists of repair and maintenance, depreciation and amortization, travel, public company, outside services, general and R&D expenses. (in thousands)

 

                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2026     2025     2026     2025  
Payroll and benefits   $ 998     $ 997     $ 2,919     $ 2,869  
Other     1,147       1,090       3,459       3,243  
Total   $ 2,145     $ 2,087     $ 6,378     $ 6,112  

 

 

The following table presents depreciation and amortization for the three and nine months ended September 30, (in thousand):

 

                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2026     2025     2026     2025  
Treatment   $ 454     $ 387     $ 1,358     $ 1,158  
Services     29       28       77       109  
Total segment     483       415       1,435       1,267  
Corporate     12       11       34       32  
Total   $ 495     $ 426     $ 1,469     $ 1,299