Annual report pursuant to Section 13 and 15(d)

Note 16 - Segment Reporting

v3.3.1.900
Note 16 - Segment Reporting
 12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
NOTE 16
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 decision maker (“CODM”) 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 three reporting segments, which include Treatment and Services Segments, which are based on a service offering approach; and Medical, whose primary purpose at this time is the continuation of R&D of a new medical isotope production technology. The Medical Segment has not generated any revenues and all costs incurred are reflected within R&D in the accompanying Statements of Operations. Our reporting segments exclude our corporate headquarter and our discontinued operations (see Note 8 – “Discontinued Operations and Divestitures”) which do not generate revenues.
 
The table below shows certain financial information of our reporting segments for 2015 and 2014 (in thousands).
 
Segment Reporting as of and for the year ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Treatment
    
Services
    
Medical
    
Segments
Total
    
Corporate
(2)
Consolidated
Total
  
Revenue from external customers
   $ 41,318     $ 21,065  
 
 
—
    $ 62,383  
(3)
 		 $ —     $ 62,383  
Intercompany revenues
     113       25  
 
 
—
      138  
 
 
—
 
 
 
—
 
Gross profit
     10,910       3,441  
 
 
—
      14,351  
 
 
—
      14,351  
Research and Development
     179  
 
 
—
      2,114       2,293       9       2,302  
Interest income
     6  
 
 
—
 
 
 
—
      6       47       53  
Interest expense
     (38 )
 
 
—
 
 
 
—
      (38 )     (451 )     (489 )
Interest expense-financing fees
     (2 )
 
 
—
 
 
 
—
      (2 )     (226 )     (228 )
Depreciation and amortization
     2,949       725  
 
 
—
      3,674       43       3,717  
Segment income (loss) before income taxes
     7,101       1,178       (2,114 )     6,165       (5,685 )     480  
Income tax expense
    538  
 
 
—
 
 
 
—
      538       5       543  
Segment income (loss)
     6,563       1,178       (2,114 )     5,627       (5,690 )     (63 )
Segment assets
(1)
     46,307       9,481       1,793       57,581       25,484
(4)
 		   83,065  
Expenditures for segment assets
     579       33  
 
 
—
      612       11       623  
Total debt
     23  
 
 
—
 
 
 
—
      23       9,965
(5)
 		   9,988  
 
Segment Reporting as of and for the year ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
Treatment
    
Services
    
Medical
    
Segments
Total
    
Corporate
 
(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  
Research and Development
     437       99       759       1,295       20       1,315  
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) before income taxes
     6,149       (2,184 )
(6)
   (759 )     3,206       (5,781 )     (2,575 )
Income tax expense (benefit)
     604       (191 )
 
 
—
 
     413       4       417  
Segment income (loss)
     5,545       (1,993 )
(6)
   (759 )     2,793       (5,785 )     (2,992 )
Segment assets
(1)
     50,226       8,920       1,213       60,359       27,892  
(4)
 		   88,251  
Expenditures for segment assets
     399       64  
 
 
—
 
     463       1       464  
Total debt
     47  
 
 
—
 
 
 
—
 
     47       11,325  
(5)
   11,372  
 
 
(1)
   Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment.
 
(2)
Amounts reflect the activity for corporate headquarters not included in the segment information.
 
(
3)
The Company performed services relating to waste generated by the federal government, either directly as a prime contractor or indirectly as a subcontractor to the federal government, representing approximately $36,105,000 or 57.9% of total revenue from continuing operations during 2015 and $34,780,000 or 60.9% of total revenue from continuing operations during 2014. The following reflects such revenue generated by our two segments:
 
   
2015
    
2014
  
Treatment
   $ 30,130,000     $ 29,786,000  
Services
     5,975,000       4,994,000  
Total
   $ 36,105,000     $ 34,780,000  
 
(4)
Amount includes assets from our discontinued operations of $565,000 and $701,000, as of December 31, 2015 and 2014, respectively.
 
(5)
Net of debt discount of ($50,000) and ($137,000) for 2015 and 2014, 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)
Included goodwill impairment charge of $380,000 recorded for the Company’s SYA subsidiary which was divested on July 29, 2014.