Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.21.1
Segment Reporting
 12 Months Ended
Dec. 31, 2020
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 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 is the R&D of a 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 financial statements. As previously disclosed, the Medical Segment has substantially reduced its R&D costs and activities due to the need for capital to fund these activities. The Company anticipates that the Medical Segment will not resume full R&D activities until the necessary capital is obtained through its own credit facility or additional equity raise, or obtains partners willing to provide funding for its R&D. Our reporting segments exclude our corporate headquarter, business center and our discontinued operations (see “Note 9 – 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, 2020 and 2019 (in thousands).

 

Segment Reporting as of and for the year ended December 31, 2020

 

    Treatment     Services     Medical     Segments Total     Corporate (2)    Consolidated Total  
Revenue from external customers   $ 30,143     $ 75,283       —     $ 105,426 (3)(4)   $ —     $ 105,426  
Intercompany revenues     1,493       25       —       1,518       —       —  
Gross profit     5,491       10,402       —       15,893       —       15,893  
Research and development     243       132       311       686       76       762  
Interest income     1       —       —       1       139       140  
Interest expense     (115 )     (27 )     —       (142 )     (256 )     (398 )
Interest expense-financing fees     —       —       —       —       (294 )     (294 )
Depreciation and amortization     1,204       354       —       1,558       38       1,596  
Segment income (loss) before income taxes     1,494       7,826       (311 )     9,009       (6,049 )     2,960  
Income tax (benefit) expense     (264 )     6       —       (258 )     69       (189 )
Segment income (loss)     1,758       7,820       (311 )     9,267       (6,118 )     3,149  
Segment assets(1)     32,324       22,368 (8)     17       54,709       24,210 (5)     78,919  
Expenditures for segment assets (net)     1,264       451       —       1,715       —       1,715 (7)
Total debt     —       23       —       23       6,706       6,729 (6)

 

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 (8)     16       49,686       16,829 (5)     66,515  
Expenditures for segment assets (net)     1,366       169       —       1,535       —       1,535 (7)
Total debt     —       —       —       —       3,880       3,880 (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 96,582,000 or 91.6% of total revenue for 2020 and $59,985,000 or 81.7% of total revenue for 2019. The following reflects such revenue generated by our two segments:

 

    2020     2019  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 22,795     $ 68,237     $ 91,032     $ 29,420     $ 25,077     $ 54,497  
Foreign government     415       5,135       5,550       279       5,209       5,488  
Total   $ 23,210     $ 73,372     $ 96,582     $ 29,699     $ 30,286     $ 59,985  

 

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

 

    2020     2019  
United States   $ 99,790     $ 67,822  
Canada     5,550       5,488  
United Kingdom     86       149  
Total   $ 105,426     $ 73,459  

 

(5) Amount includes assets from our discontinued operations of $103,000 and $221,000 at December 31, 2020 and 2019, respectively.

 

(6) Net of debt discount/debt issuance costs of ($105,000) and ($340,000) for 2020 and 2019, respectively (see “Note 10 – “Long-Term Debt” for additional information).

 

(7) Net of financed amount of $883,000 and $393,000 for the year ended December 31, 2020 and 2019, respectively.

 

(8) Includes long-lived asset (net) for our PF Canada, Inc. subsidiary of $33,000 and $41,000 for the year ended December 31, 2020 and 2019, respectively.