Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.21.2
Revenue
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue

3. Revenue

 

Disaggregation of Revenue

 

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of our services and provides meaningful disaggregation of each business segment’s results of operations. The nature of the Company’s performance obligations within our Treatment and Services Segments result in the recognition of our revenue primarily over time. The following tables present further disaggregation of our revenues by different categories for our Services and Treatment Segments:

 

Revenue by Contract Type                              
(In thousands)   Three Months Ended     Three Months Ended  
    September 30, 2021     September 30, 2020  
    Treatment     Services     Total     Treatment     Services     Total  
Fixed price   $ 8,893     $ 3,031     $ 11,924     $ 7,066     $ 2,372     $ 9,438  
Time and materials     —       3,873       3,873       —       20,734       20,734  
Total   $ 8,893     $ 6,904     $ 15,797     $ 7,066     $ 23,106     $ 30,172  

 

Revenue by Contract Type                              
(In thousands)   Nine Months Ended     Nine Months Ended  
    September 30, 2021     September 30, 2020  
    Treatment     Services     Total     Treatment     Services     Total  
Fixed price   $ 24,094     $ 7,094     $ 31,188     $ 24,469     $ 6,093     $ 30,562  
Time and materials     —       23,887       23,887       —       46,517       46,517  
Total   $ 24,094     $ 30,981     $ 55,075     $ 24,469     $ 52,610     $ 77,079  

 

Revenue by generator                                    
(In thousands)   Three Months Ended     Three Months Ended  
    September 30, 2021     September 30, 2020  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 6,725     $ 4,552     $ 11,277     $ 5,334     $ 21,660     $ 26,994  
Domestic commercial     1,956       399       2,355       1,598       459       2,057  
Foreign government     36       1,931       1,967       134       966       1,100  
Foreign commercial     176       22       198        —       21       21  
Total   $ 8,893     $ 6,904     $ 15,797     $ 7,066     $ 23,106     $ 30,172  

 

Revenue by generator                                    
(In thousands)   Nine Months Ended     Nine Months Ended  
    September 30, 2021     September 30, 2020  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 16,962     $ 24,172     $ 41,134     $ 19,079     $ 48,249     $ 67,328  
Domestic commercial     6,284       1,185       7,469       5,256       1,352       6,608  
Foreign government     577       5,556       6,133       134       2,945       3,079  
Foreign commercial     271       68       339        —       64       64  
Total   $ 24,094     $ 30,981     $ 55,075     $ 24,469     $ 52,610     $ 77,079  

 

Contract Balances

 

The timing of revenue recognition, billings, and cash collections results in accounts receivable and unbilled receivables (contract assets). The Company’s contract liabilities consist of deferred revenues which represents advance payment from customers in advance of the completion of our performance obligation.

 

The following table represents changes in our contract assets and contract liabilities balances:

 

                Year-to-date     Year-to-date  
(In thousands)   September 30, 2021     December 31, 2020     Change ($)     Change (%)  
Contract assets                                
Account receivables, net of allowance   $ 11,816     $ 9,659     $ 2,157       22.3 %
Unbilled receivables - current     5,696       14,453       (8,757 )     (60.6 )%
                                 
Contract liabilities                                
Deferred revenue   $ 3,435     $ 4,614     $ (1,179 )     (25.6 )%

 

The decrease in unbilled receivables was primarily within our Services Segment due to invoicing and collection of accounts receivable on certain large projects which have been completed or are near completion.

 

 

During the three and nine months ended September 30, 2021, the Company recognized revenue of $561,000 and $6,635,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. During the three and nine months ended September 30, 2020, the Company recognized revenue of $1,134,000 and $7,673,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. All revenue recognized in each period related to performance obligations satisfied within the respective period.

 

Variable Consideration

 

The Company’s contracts generally do not give rise to variable consideration. However, during the three and nine months ended September 30, 2021, the Company recognized approximately $1,286,000 in revenue from a request for equitable adjustment (“REA”) under one of the Company’s Treatment Services contracts that resulted in cumulative catch-up adjustment in the transaction price that had been constrained in prior periods.

 

Remaining Performance Obligations

 

The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

 

Within our Services Segment, there are service contracts which provide that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. For those contracts, the Company has utilized the practical expedient in ASC 606-10-55-18, which allows the Company to recognize revenue in the amount for which we have the right to invoice; accordingly, the Company does not disclose the value of remaining performance obligations for those contracts.