Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.23.1
Operating Segments
 3 Months Ended
Mar. 31, 2023
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 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.

 

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 months ended March 31, 2023 and 2022 (in thousands):

 

    Treatment     Services     Segments Total     Corporate(1)     Consolidated Total  
Segment Reporting for the Quarter Ended March 31, 2023                  
    Treatment     Services     Segments Total     Corporate(1)     Consolidated Total  
Revenue from external customers   $ 9,594     $ 10,513     $ 20,107     $ —     $ 20,107  
Intercompany revenues     204       19       223       —       —  
Gross profit     1,252       1,757       3,009       —       3,009  
Research and development     67       3       70       29       99  
Interest income     —       —       —       127       127  
Interest expense     (22 )     (1 )     (23 )     (30 )     (53 )
Interest expense-financing fees     —       —       —       (20 )     (20 )
Depreciation and amortization     573       160       733       14       747  
Segment income (loss) before income taxes     157       943       1,100       (1,622 )     (522 )
Income tax benefit     (174 )     (30 )     (204 )     —       (204 )
Segment income (loss)     331       973       1,304       (1,622 )     (318 )
Expenditures for segment assets     748       —       748       —       748 (2)

 

    Treatment     Services     Segments Total     Corporate(1)     Consolidated Total  
Segment Reporting for the Quarter Ended March 31, 2022                  
    Treatment     Services     Segments Total     Corporate(1)     Consolidated Total  
Revenue from external customers   $ 7,479     $ 8,436     $ 15,915     $ —     $ 15,915  
Intercompany revenues     —       —       —       —       —  
Gross profit     638       998       1,636       —       1,636  
Research and development     65       14       79       17       96  
Interest income     —       —       —       11       11  
Interest expense     (14 )     (1 )     (15 )     (20 )     (35 )
Interest expense-financing fees     —       —       —       (13 )     (13 )
Depreciation and amortization     371       71       442       14       456  
Segment (loss) income before income taxes     (481 )     285       (196 )     (1,726 )     (1,922 )
Income tax benefit     (559 )     (114 )     (673 )     —       (673 )
Segment income (loss)     78       399       477       (1,726 )     (1,249 )
Expenditures for segment assets     296       49       345       —       345 (2)

 

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

 

(2) Net of financed amount of $50,000 and $114,000 for the three months ended March 31, 2023 and 2022, respectively.