Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.22.2
Operating Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Operating Segments

11. Operating Segments

 

In accordance with ASC 280, “Segment Reporting”, the Company defines an operating segment as a business activity: (1) from which we may earn revenue and incur expenses; (2) 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 (3) for which discrete financial information is available.

 

Our reporting segments are defined as below:

 

TREATMENT SEGMENT, which includes:

 

  - nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and
  - R&D activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

 

SERVICES SEGMENT, which includes:

 

  - Technical services, which include:

 

  ○ professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
  ○ integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance;
  ○ global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and
  ○ on-site waste management services to commercial and governmental customers.

 

 

  - Nuclear services, which include:

 

○ technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
○ remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; logistics; transportation; and emergency response; and

 

- A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation.

 

The Company’s segment also included the Medical Segment in 2021. As previously discussed, the Company made the strategic decision to cease all R&D activities under the Medical Segment and sold 100% of its interest in PFM Poland (which comprised the Medical Segment) in December 2021. The Company’s Medical Segment had not generated any revenue and was involved in the Company’s medical isotope production technology.

 

Our reporting segments exclude our corporate headquarters and our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.

 

The table below presents certain financial information of our operating segments for the three and six months ended June 30, 2022 and 2021 (in thousands):

 

Segment Reporting for the Quarter Ended June 30, 2022

 

    Treatment     Services     Segments
Total		     Corporate (1)     Consolidated
Total		  
Revenue from external customers   $ 8,393     $ 11,062     $ 19,455     $ —     $ 19,455  
Intercompany revenues     —       17       17       —       —  
Gross profit     1,563       1,321       2,884       —       2,884  
Research and development     59       8       67       13       80  
Interest income     —       —       —       29       29  
Interest expense     (19 )     3       (16 )     (25 )     (41 )
Interest expense-financing fees     —       —       —       (15 )     (15 )
Depreciation and amortization     381       86       467       13       480  
Segment income (loss) before income taxes     364       515       879       (1,789 )     (910 )
Income tax expense     304       43       347       —       347  
Segment income (loss)     60       472       532       (1,789 )     (1,257 )
Expenditures for segment assets     373       39       412       —       412 (3)

 

Segment Reporting for the Six Months Ended June 30, 2022

 

    Treatment     Services     Segments
Total		     Corporate (1)     Consolidated
Total		  
Revenue from external customers   $ 15,872     $ 19,498     $ 35,370     $ —     $ 35,370  
Intercompany revenues     —       27       27       —       —  
Gross profit     2,201       2,319       4,520       —       4,520  
Research and development     124       23       147       29       176  
Interest income     —       —       —       40       40  
Interest expense     (33 )     2       (31 )     (45 )     (76 )
Interest expense-financing fees     —       —       —       (28 )     (28 )
Depreciation and amortization     752       157       909       27       936  
Segment (loss) income before income taxes     (117 )     799       682       (3,514 )     (2,832 )
Income tax benefit     (254 )     (72 )     (326 )     —       (326 )
Segment income (loss)     137       871       1,008       (3,514 )     (2,506 )
Expenditures for segment assets     670       88       758       —       758 (3)

 

 

Segment Reporting for the Quarter Ended June 30, 2021

 

    Treatment     Services     Medical     Segments
Total		     Corporate (1)     Consolidated
Total		  
Revenue from external customers   $ 7,706     $ 8,439       —     $ 16,145     $ —     $ 16,145  
Intercompany revenues     319       32       —       351       —       —  
Gross profit (negative gross profit)     1,433       (467 )     —       966       —       966  
Research and development     43       19       72       134       10       144  
Interest income     —       —       —       —       2       2  
Interest expense     (18 )     —       —       (18 )     (47 )     (65 )
Interest expense-financing fees     —       —       —       —       (9 )     (9 )
Depreciation and amortization     310       85       —       395       5       400  
Segment income (loss) before income taxes     471       (1,292 )     (72 )     (893 )     4,027 (2)     3,134  
Income tax expense     3       10       —       13       —       13  
Segment income (loss)     468       (1,302 )     (72 )     (906 )     4,027       3,121  
Expenditures for segment assets     270       10       —       280       9       289 (4)

 

Segment Reporting for the Six Months Ended June 30, 2021

 

    Treatment     Services     Medical     Segments
Total		     Corporate (1)     Consolidated
Total		  
Revenue from external customers   $ 15,201     $ 24,077       —     $ 39,278     $ —     $ 39,278  
Intercompany revenues     979       39       —       1,018       —       —  
Gross profit     2,358       964       —       3,322       —       3,322  
Research and development     90       32       149       271       24       295  
Interest income     —       —       —       —       21       21  
Interest expense     (37 )     (8 )     —       (45 )     (87 )     (132 )
Interest expense-financing fees     —       —       —       —       (17 )     (17 )
Depreciation and amortization     620       170       —       790       9       799  
Segment income (loss) before income taxes     352       (737 )     (149 )     (534 )     2,613 (2)     2,079  
Income tax (benefit) expense     (14 )     10       —       (4 )     —       (4 )
Segment income (loss)     366       (747 )     (149 )     (530 )     2,613       2,083  
Expenditures for segment assets     627       14       —       641       9       650 (4)

 

(1) Amounts reflect the activity for corporate headquarters not included in the segment information.

 

(2) Amounts includes approximately $5,381,000 of “Gain on extinguishment of debt” recorded in connection with the Company’s PPP Loan which was forgiven by the U.S Small Business Administration effective June 15, 2021.

 

(3) Net of financed amount of $0 and $114,000 for the three and six months ended June 30, 2022, respectively.

 

(4) Net of financed amount of $0 and $29,000 for the three and six months ended June 30, 2021, respectively.