Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

v3.24.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

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 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 have two reporting segments, consisting of the Treatment and Services Segments, which are based on a service offering approach. Our reporting segments exclude our corporate headquarter, business center and our discontinued operations (see “Note 8 – Discontinued Operations”) which do not generate revenues.

 

The table below shows certain financial information of our reporting segments as of and for the years ended December 31, 2023, and 2022 (in thousands).

 

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

    Treatment     Services     Segments Total     Corporate (2)     Consolidated Total  
    Treatment     Services     Segments Total     Corporate (2)     Consolidated Total  
Revenue from external customers   $ 43,477     $ 46,258     $ 89,735 (3)(4)   $ —     $ 89,735  
Intercompany revenues     290       139       429       —       —  
Gross profit     6,876       9,493       16,369       —       16,369  
Research and development     418       38       456       105       561  
Interest income     —       —       —       606       606  
Interest expense     (91 )     (27 )     (118 )     (205 )     (323 )
Interest expense-financing fees     —       —       —       (93 )     (93 )
Depreciation and amortization     2,112       397       2,509       59       2,568  
Segment income (loss) before income taxes     2,107       5,854       7,961       (7,026 )     935  
Income tax (benefit) expense     (121 )     138       17       —       17  
Segment income (loss)     2,228       5,716       7,944       (7,026 )     918  
Segment assets (1)     40,470       10,239       50,709       28,040 (5)     78,749 (9)
Expenditures for segment assets (net)     1,696       10       1,706       8       1,714 (7)
Total debt     372       —       372       2,376       2,748 (6)

 

 

Segment Reporting as of and for the year ended December 31, 2022

 

    Treatment     Services     Segments Total     Corporate (2)     Consolidated Total  
    Treatment     Services     Segments Total     Corporate (2)     Consolidated Total  
Revenue from external customers   $ 33,358     $ 37,241     $ 70,599 (3)(4)   $ —     $ 70,599  
Intercompany revenues     56       213       269       —       —  
Gross profit     5,243       4,366       9,609       —       9,609  
Research and development     246       23       269       67       336  
Interest income     —       —       —       99       99  
Interest expense     (74 )     (3 )     (77 )     (98 )     (175 )
Interest expense-financing fees     —       (1 )     (1 )     (60 )     (61 )
Depreciation and amortization     1,710       334       2,044       65       2,109  
Segment income (loss) before income taxes     1,531       1,565       3,096       (6,685 )     (3,589 )(8)
Income tax benefit     (236 )     (133 )     (369 )     (9 )     (378 )
Segment income (loss)     1,767       1,698       3,465       (6,676 )     (3,211 )
Segment assets (1)     37,918       8,473       46,391       24,507 (5)     70,898 (9)
Expenditures for segment assets (net)     866       157       1,023       —       1,023 (7)
Total debt     482       5       487       552       1,039 (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), either directly as a prime contractor or indirectly for others as a subcontractor to government entities, representing approximately $70,642,000 or 78.7% of total revenue for 2023 and $59,658,000 or 84.5% of total revenue for 2022. The following reflects such revenue generated by our two segments:
   
   
   
   

 

    2023     2022  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 31,448     $ 39,194     $ 70,642     $ 23,752     $ 35,906     $ 59,658  

 

(4) The following table reflects revenue based on customer location:

 

    2023     2022  
United States   $ 87,669     $ 69,373  
Canada     1,685       406  
Germany     206       678  
Italy     —       14  
Slovenia     87       —  
United Kingdom     88       128  
Total   $ 89,735     $ 70,599  

 

(5) Amount includes assets from our discontinued operations of $94,000 and $96,000 as of December 31, 2023, and 2022, respectively.
   
(6) Net of debt issuance costs of ($170,000) and ($88,000) for 2023 and 2022, respectively (see “Note 9 – Long-Term Debt” for additional information).
   
(7) Net of financed amount of $784,000 and $114,000 for the year ended December 31, 2023, and 2022, respectively.
   
(8) Includes approximately $1,975,000 recorded as other income under the ERC program under the CARES Act, as amended (see “Note 10 –Employee Retention Credit (“ERC”)” for a discussion of this refund amount).
   
(9) Includes long-lived assets for continued operations as follows:

 

    2023     2022  
United States   $ 19,009     $ 18,957  
Foreign Subsidiaries     —       —  
Total   $ 19,009     $ 18,957