Annual report pursuant to Section 13 and 15(d)

Segment Reporting

Segment Reporting

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

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 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 Consolidated Statements of Operations. Our reporting segments exclude our corporate headquarter 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 then ended December 31, 2017 and 2016 (in thousands).

Segment Reporting as of and for the year ended December 31, 2017

	Treatment			Services			Medical			Segments Total			Corporate ⁽²⁾			Consolidated Total
Revenue from external customers	$	37,750		$	12,019			—		$	49,769	⁽³⁾	$	—		$	49,769
Intercompany revenues		362			31			—			393			—			—
Gross profit		7,916			704			—			8,620			—			8,620
Research and development		439			—			1,141			1,580			15			1,595
Interest income		—			—			—			—			140			140
Interest expense		(35	⁾		(5	)		—			(40	)		(275	)		(315	)
Interest expense-financing fees		—			—			—			—			(35	)		(35	)
Depreciation and amortization		3,228			536			—			3,764			39			3,803
Segment income (loss) before income taxes		3,577	⁽⁶⁾		(2,286	)		(1,141	)		150			(4,973	⁾		(4,823	)
Income tax (benefit) expense		(1,290)	⁽⁷⁾		—			—			(1,290	)		5			(1,285	)
Segment income (loss)		4,867			(2,286	)		(1,141	)		1,440			(4,978	)		(3,538	)
Segment assets⁽¹⁾		32,724			6,324			548			39,596			19,942	⁽⁴⁾		59,538
Expenditures for segment assets		396			43			—			439			—			439
Total debt		—			—			—			—			3,847	⁽⁵⁾		3,847

Segment Reporting as of and for the year ended December 31, 2016

	Treatment			Services			Medical			Segments Total			Corporate ⁽²⁾			Consolidated Total
Revenue from external customers	$	32,253		$	18,966			—		$	51,219	⁽³⁾	$	—		$	51,219
Intercompany revenues		40			28			—			68			—			—
Gross profit		4,015			3,069			—			7,084			—			7,084
Research and development		504			38			1,489			2,031			15			2,046
Interest income		3			—			—			3			107			110
Interest expense		(29	⁾		(2	)		—			(31	)		(458	)		(489	)
Interest expense-financing fees		—			—			—			—			(108	)		(108	)
Depreciation and amortization		3,451			632			—			4,083			82			4,165
Segment (loss) income before income taxes		(10,119)	⁽⁶⁾		744			(1,489	)		(10,864	)		(5,393	)		(16,257	)
Income tax (benefit) expense		(3,013)	⁽⁷⁾		—			—			(3,013	)		19			(2,994	)
Segment (loss) income		(7,106	⁾		744			(1,489	)		(7,851	)		(5,412	)		(13,263	)
Segment assets⁽¹⁾		32,482			8,105			382			40,969			24,366	⁽⁴⁾		65,335
Expenditures for segment assets		418			17			1			436			—			436
Total debt		—			—			—			—			8,833	⁽⁵⁾		8,833

	⁽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 for others as a subcontractor to the federal government, representing approximately $36,654,000 or 73.6% of total revenue for 2017 and $27,354,000 or 53.4% of total revenue for 2016. The following reflects such revenue generated by our two segments:

	2017		2016
Treatment	$	27,591,000	$	21,434,000
Services		9,063,000		5,920,000
Total	$	36,654,000	$	27,354,000

	⁽⁴⁾	Amount includes assets from our discontinued operations of $365,000 and $434,000 at December 31, 2017 and 2016, respectively.

	⁽⁵⁾	net of debt issuance costs of ($115,000) and ($151,000) for 2017 and 2016, respectively (see “Note 9 – “Long-Term Debt” for additional information).

	⁽⁶⁾	For the year ended December 31, 2016, amounts include tangible and intangible asset impairment losses of $1,816,000 and $8,288,000, respectively, recorded in connection with the pending closure of M&EC. For the year ended December 31, 2017, amount includes tangible asset impairment loss of $672,000 recorded in connection with the pending closure of M&EC (see “Note 3 – M&EC Facility”).

	⁽⁷⁾	For the year ended December 31, 2016, amount includes a tax benefit of approximately $3,203,000 recorded resulting from the intangible impairment loss recorded for our M&EC subsidiary (see “Note 3 – M&EC Facility”). For the year ended December 31, 2017, amount includes a tax benefit recorded in the amount of approximately $1,695,000 resulting from the Tax Cuts and Jobs Act enacted on December 22, 2017 (see “Note 12 – Income Taxes” for further information of this tax benefit).