Annual report pursuant to Section 13 and 15(d)

Note 17 - Segment Reporting

v2.4.1.9
Note 17 - Segment Reporting
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

NOTE 17


SEGMENT REPORTING


In accordance with ASC 280, “Segment Reporting”, we define an operating segment as a business activity:


●

from which we may earn revenue and incur expenses;

●

whose operating results are regularly reviewed by the Chief Operating Officer (our Chief Operating Decision Maker) to make decisions about resources to be allocated to the segment and assess its performance; and

●

for which discrete financial information is available.


We currently have two reporting segments, Treatment and Services Segments, which are based on a service offering approach. This, however, excludes corporate headquarters, which do not generate revenue, our discontinued operations (see “Note 8 – Divestitures and Discontinued Operations”), and PF Medical S.A, a developmental entity whose primary purpose at this time is the R&D and marketing of medical isotope technology used in the medical diagnostic testing and is not generating any revenues (see Note 4 – “Perma-Fix Medical S.A.” for further information of this entity).


The table below shows certain financial information of our reporting segments for 2014 and 2013 (in thousands).


Segment Reporting as of and for the year ended December 31, 2014


   

Treatment

   

Services

   

Segments Total

   

Corporate

And Other

(2)  

Consolidated

Total

 

Revenue from external customers

  $ 42,343     $ 14,722     $ 57,065  (3)   $ —     $ 57,065  

Intercompany revenues

    12       70       82       —       —  

Gross profit

    10,480       1,428       11,908       —       11,908  

Interest income

    —       —       —       27       27  

Interest expense

    38       1       39       577       616  

Interest expense-financing fees

    —       (2 )     (2 )     194       192  

Depreciation and amortization

    3,281       910       4,191       49       4,240  

Segment income (loss)

    5,545       (1,993 )(6)     3,552       (6,544 )     (2,992 )

Segment assets(1)

    50,226       8,920       59,146       29,490  (4)     88,636  

Expenditures for segment assets

    399       64       463       1       464  

Total debt

    47       —       47       11,325  (5)     11,372  

Segment Reporting as of and for the year ended December 31, 2013


   

Treatment

   

Services

   

Segments Total

   

Corporate

And Other

(2)  

Consolidated

Total

 

Revenue from external customers

  $ 35,540     $ 38,873     $ 74,413  (3)   $ —     $ 74,413  

Intercompany revenues

    1,179       77       1,256       —       —  

Gross profit

    5,574       4,242       9,816       —       9,816  

Interest income

    —       —       —       35       35  

Interest expense

    42       (3 )     39       723       762  

Interest expense-financing fees

    —       —       —       132       132  

Depreciation and amortization

    3,045       990       4,035       91       4,126  

Segment loss

    (8,198 )(6)     (20,042 )(6)     (28,240 )     (6,231 )     (34,471 )

Segment assets(1) (Revised)

    49,978       11,951       61,929       30,131  (4)     92,060  

Expenditures for segment assets

    477       466       943       1       944  

Total debt

    106       —       106       14,142  (5)     14,248  

(1)   Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment.


(2) Amounts reflect the activity for corporate headquarters and PF Medical S.A. not included in the segment information.


(3) The consolidated revenues included the United States Enrichment Corporation (“USEC”) revenues of $10,272,000 or 18.0% and $2,037,000 or 2.7% for the years ended 2014 and 2013, respectively, of our total consolidated revenue from continuing operations and CH Plateau Remediation Company (“CHPRC”) revenue of $5,762,000 or 10.1% and $19,922,000 or 26.8%, for the years ended 2014 and 2013, respectively, of our total consolidated revenue from continuing operations. The following table reflects the revenue generated by each of our reportable segment from USEC and CHPRC:


   

USEC

   

CHPRC

 
   

2014

   

2013

   

2014

   

2013

 

Treatment

  $ 9,309,000     $ 2,037,000     $ 5,594,000     $ 2,268,000  

Services

    963,000       —       168,000       17,654,000  

Total

  $ 10,272,000     $ 2,037,000     $ 5,762,000     $ 19,922,000  

(4)

Amount includes assets from our discontinued operations of $701,000 and $4,481,000, as of December 31, 2014 and 2013, respectively and assets from PF Medical S.A of $1,213,000 and $0 as of December 31, 2014 and 2013, respectively.


(5)

Net of debt discount of ($137,000) and ($223,000) for 2014 and 2013, respectively, based on the estimated fair value at issuance of two Warrants and 90,000 shares of the Company’s Common Stock issued on August 2, 2013 in connection with a $3,000,000 promissory note entered into by the Company and Messrs. William Lampson and Robert L. Ferguson. See Note 9 – “Long-Term Debt – Promissory Note and Installment Agreement” for additional information.


(6)

For 2014, included goodwill impairment charge of $380,000 recorded for the Company’s SYA subsidiary (Services Segment) which was divested on July 29, 2014. For 2013, included goodwill impairment charge of $13,691,000 recorded for the Treatment Segment and $14,165,000 recorded for the Services Segment.