| Schedule of Segment Reporting Information |
The table below shows certain financial information
of our reporting segments as of and for the years ended December 31, 2019 and 2018 (in thousands).
Segment Reporting as of and for the year ended December 31, 2019
| |
|
Treatment |
|
|
Services |
|
|
Medical |
|
|
Segments Total |
|
|
Corporate (2) |
|
|
Consolidated Total |
|
| Revenue from external customers |
|
$ |
40,364 |
|
|
$ |
33,095 |
|
|
|
— |
|
|
$ |
73,459 |
(3)(4) |
|
$ |
— |
|
|
$ |
73,459 |
|
| Intercompany revenues |
|
|
329 |
|
|
|
38 |
|
|
|
— |
|
|
|
367 |
|
|
|
— |
|
|
|
— |
|
| Gross profit |
|
|
12,248 |
|
|
|
3,336 |
|
|
|
— |
|
|
|
15,584 |
|
|
|
— |
|
|
|
15,584 |
|
| Research and development |
|
|
401 |
|
|
|
12 |
|
|
|
314 |
|
|
|
727 |
|
|
|
23 |
|
|
|
750 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
337 |
|
|
|
337 |
|
| Interest expense |
|
|
(129 |
) |
|
|
(23 |
) |
|
|
— |
|
|
|
(152 |
) |
|
|
(280 |
) |
|
|
(432 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(208 |
) |
|
|
(208 |
) |
| Depreciation and amortization |
|
|
999 |
|
|
|
318 |
|
|
|
— |
|
|
|
1,317 |
|
|
|
25 |
|
|
|
1,342 |
|
| Segment income (loss) before income taxes |
|
|
7,973 |
|
|
|
795 |
|
|
|
(314 |
) |
|
|
8,454 |
|
|
|
(5,565 |
) |
|
|
2,889 |
|
| Income tax expense |
|
|
153 |
|
|
|
— |
|
|
|
— |
|
|
|
153 |
|
|
|
4 |
|
|
|
157 |
|
| Segment income (loss) |
|
|
7,820 |
|
|
|
795 |
|
|
|
(314 |
) |
|
|
8,301 |
|
|
|
(5,569 |
) |
|
|
2,732 |
|
| Segment assets(1) |
|
|
34,260 |
|
|
|
15,410 |
(10) |
|
|
16 |
|
|
|
49,686 |
|
|
|
16,829 |
(5) |
|
|
66,515 |
|
| Expenditures for segment assets (net) |
|
|
169 |
|
|
|
1,366 |
|
|
|
— |
|
|
|
1,535 |
|
|
|
— |
|
|
|
1,535 |
(9) |
| Total debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,880 |
|
|
|
3,880 |
(6) |
Segment Reporting as of and for the year ended December 31, 2018
| |
|
Treatment |
|
|
Services |
|
|
Medical |
|
|
Segments Total |
|
|
Corporate (2) |
|
|
Consolidated Total |
|
| Revenue from external customers |
|
$ |
36,271 |
|
|
$ |
13,268 |
|
|
|
— |
|
|
$ |
49,539 |
(3)(4) |
|
$ |
— |
|
|
$ |
49,539 |
|
| Intercompany revenues |
|
|
509 |
|
|
|
70 |
|
|
|
— |
|
|
|
579 |
|
|
|
— |
|
|
|
— |
|
| Gross profit |
|
|
7,197 |
|
|
|
1,264 |
|
|
|
— |
|
|
|
8,461 |
|
|
|
— |
|
|
|
8,461 |
|
| Research and development |
|
|
483 |
|
|
|
— |
|
|
|
811 |
|
|
|
1,294 |
|
|
|
76 |
|
|
|
1,370 |
|
| Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
295 |
|
|
|
295 |
|
| Interest expense |
|
|
(22 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
(24 |
) |
|
|
(227 |
) |
|
|
(251 |
) |
| Interest expense-financing fees |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(38 |
) |
|
|
(38 |
) |
| Depreciation and amortization |
|
|
943 |
|
|
|
465 |
|
|
|
— |
|
|
|
1,408 |
|
|
|
47 |
|
|
|
1,455 |
|
| Segment income (loss) before income taxes |
|
|
4,550 |
(7) |
|
|
(756 |
) |
|
|
(811 |
) |
|
|
2,983 |
|
|
|
(4,993 |
) |
|
|
(2,010 |
) |
| Income tax (benefit) expense |
|
|
(943 |
)(8) |
|
|
— |
|
|
|
— |
|
|
|
(943 |
) |
|
|
7 |
|
|
|
(936 |
) |
| Segment income (loss) |
|
|
5,493 |
|
|
|
(756 |
) |
|
|
(811 |
) |
|
|
3,926 |
|
|
|
(5,000 |
) |
|
|
(1,074 |
) |
| Segment assets(1) |
|
|
32,800 |
|
|
|
5,188 |
(10) |
|
|
25 |
|
|
|
38,013 |
|
|
|
19,429 |
(5) |
|
|
57,442 |
|
| Expenditures for segment assets (net) |
|
|
1,311 |
|
|
|
117 |
|
|
|
— |
|
|
|
1,428 |
|
|
|
4 |
|
|
|
1,432 |
(9) |
| Total debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,302 |
|
|
|
3,302 |
(6) |
| (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 government clients (domestic and foreign (primarily Canadian)), either directly as a prime contractor or indirectly for others as a subcontractor to government entities, representing approximately $59,985,000 or 81.7% of total revenue for 2019 and $35,944,000 or 72.6% of total revenue for 2018. The following reflects such revenue generated by our two segments: |
| |
|
2019 |
|
|
2018 |
|
| |
|
Treatment |
|
|
Services |
|
|
Total |
|
|
Treatment |
|
|
Services |
|
|
Total |
|
| Domestic government |
|
$ |
29,420 |
|
|
$ |
25,077 |
|
|
$ |
54,497 |
|
|
$ |
25,181 |
|
|
$ |
9,630 |
|
|
$ |
34,811 |
|
| Foreign government |
|
|
279 |
|
|
|
5,209 |
|
|
|
5,488 |
|
|
|
114 |
|
|
|
1,019 |
|
|
|
1,133 |
|
| Total |
|
$ |
29,699 |
|
|
$ |
30,286 |
|
|
$ |
59,985 |
|
|
$ |
25,295 |
|
|
$ |
10,649 |
|
|
$ |
35,944 |
|
| (4) |
The following table reflects revenue based on customer location: |
| |
|
2019 |
|
|
2018 |
|
| United States |
|
$ |
67,822 |
|
|
$ |
48,301 |
|
| Canada |
|
|
5,488 |
|
|
|
1,140 |
|
| United Kingdom |
|
|
149 |
|
|
|
98 |
|
| Total |
|
$ |
73,459 |
|
|
$ |
49,539 |
|
| (5) |
Amount includes assets from our discontinued operations of $221,000 and $306,000 at December 31, 2019 and 2018, respectively. |
| |
|
| (6) |
Net of debt discount/debt issuance costs of ($340,000) and ($80,000) for 2019 and 2018, respectively (see “Note 10 – “Long-Term Debt” for additional information). |
| |
|
| (7) |
Amount includes a net gain of $1,596,000 recorded resulting from the exchange offer of the Series B Preferred Stock of the Company’s M&EC subsidiary (see “Note 8 – Series B Preferred Stock”) |
| |
|
| (8) |
For the year ended December 31, 2018, amount includes a tax benefit recorded in the amount of approximately $1,235,000 resulting from certain provisions of the TCJA (see “Note 13 – Income Taxes” for further information of this tax benefit). |
| |
|
| (9) |
Net of financed amount of $393,000 and $545,000 for the year ended December 31, 2019 and 2018, respectively. |
| |
|
| (10) |
Includes long-lived asset (net) for our PF Canada, Inc. subsidiary of $41,000 and $0, for the year ended December 31, 2019 and 2018, respectively. |
|