Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.1
Revenue
 3 Months Ended
Mar. 31, 2022
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 results 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  
    March 31, 2022     March 31, 2021  
    Treatment     Services     Total     Treatment     Services     Total  
Fixed price   $ 7,479     $ 5,761     $ 13,240     $ 7,495     $ 2,581     $ 10,076  
Time and materials     —       2,675       2,675       —       13,057       13,057  
Total   $ 7,479     $ 8,436     $ 15,915     $ 7,495     $ 15,638     $ 23,133  

 

Revenue by generator                                    
(In thousands)   Three Months Ended     Three Months Ended  
    March 31, 2022     March 31, 2021  
    Treatment     Services     Total     Treatment     Services     Total  
Domestic government   $ 5,815     $ 8,245     $ 14,060     $ 4,598     $ 12,661     $ 17,259  
Domestic commercial     1,436       162       1,598       2,265       590       2,855  
Foreign government     92       6       98       534       2,364       2,898  
Foreign commercial     136       23       159       98       23       121  
Total   $ 7,479     $ 8,436     $ 15,915     $ 7,495     $ 15,638     $ 23,133  

 

Contract Liabilities

 

The Company’s contract liabilities consist of deferred revenues which represent advance payment from customers in advance of the completion of our performance obligation. The following table represents changes in our contract liabilities balances:

 

                Year-to-date     Year-to-date  
(In thousands)   March 31, 2022     December 31, 2021     Change ($)     Change (%)  
Contract liabilities                                
Deferred revenue   $ 2,707     $ 5,580     $ (2,873 )     (51.5 )%

 

The decrease was primarily due to revenue recognized in connection with a Services Segment contract. The decrease was also attributed to more processing of Treatment Segment’s backlog due to continued delays in waste receipts from certain customers from the impact of COVID-19.

 

During the three months ended March 31, 2022 and 2021, the Company recognized revenue of $3,521,000 and $4,311,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of each respective year. Revenue recognized in each period related to performance obligations satisfied within the respective period.

 

Remaining Performance Obligations

 

The Company applies the practical expedient in paragraph 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.

 

The Company’s contracts and subcontracts relating to activities at governmental sites generally allow for termination for convenience at any time at the government’s option without payment of a substantial penalty. The Company does not disclose remaining performance obligations on these contracts.