Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting


11. Segment Reporting

 

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.

 

The Company has two reporting segments, consisting of the Treatment and Services Segments, which are primarily based on a service offering approach and defined as follow:

 

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:

 

o professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
o 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;
o global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning (“D&D”) field, technical, and management personnel and services to commercial and government customers; and
o on-site waste management services to commercial and governmental customers.

 

 

- Nuclear services, which include:

 

o technology-based services including engineering, D&D, specialty services and construction, logistics, transportation, processing and disposal;
o 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 reporting segments exclude our corporate headquarter which serves to support its two reporting segments through various functions, such as our executives, finance, treasury, human resources, accounting, and legal departments. Financial results for the corporate headquarter are not considered by the CODM in evaluating the performance of the reportable segments. Our reporting segment also excludes our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.

 

The Company’s CODM, which is its chief executive officer, evaluates the performance of the Treatment and Services segments and allocates resources (including financial or capital resources) to each reporting segment based on revenue and (loss) income from operations by comparing actual results for these metrics to budgeted and forecasted amounts for these metrics on a monthly, quarterly and year-to-date basis. The Company’s CODM does not evaluate and allocate resources for the reportable segments using assets; therefore, the Company does not disclosure assets for its reporting segments.

 

The table below summarizes loss from operations for the Company’s two reporting segments and its corporate headquarter and provides reconciliation of such financial metric to the Company’s consolidated totals for the three months ended March 31, 2025, and 2024 for our continuing operations. Significant segment expenses that are included in the measure of segment profit or losses for each reportable segment, and regularly provided to the CODM include payroll and benefit, material and supplies, disposal, transportation and subcontract expenses and are reflected separately, where applicable (in thousands).

 Schedule of Segment Reporting Information

Segment Reporting for the Quarter Ended March 31, 2025

 

                               
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 9,186     $ 4,733     $ 13,919     $ —     $ 13,919  
Cost of Goods Sold:                                        
Payroll and benefits expenses     4,437       2,013       6,450       —       6,450  
Material and supplies expenses     1,351       —       1,351       —       1,351  
Disposal expenses     220       —       220       —       220  
Transportation expenses     495       —       495       —       495  
Subcontract expenses     —       908       908       —       908  
Other cost of goods sold (2)     2,433       1,405       3,838       —       3,838  
Total cost of goods sold     8,936       4,326       13,262       —       13,262  
Gross profit     250       407       657       —       657  
Selling, general and administrative expenses (“SG&A”):                                        
Payroll and benefits     873       538       1,411       931       2,342  
Other SG&A (3)     483       198       681       992       1,673  
Total SG&A     1,356       736       2,092       1,923       4,015  
Research and development     291       23       314       69       383  
Gain on disposal of property and equipment     —       (5 )     (5 )     —       (5 )
Loss from operations   $ (1,397 )   $ (347 )   $ (1,744 )   $ (1,992 )     (3,736 )
Interest income                                     335  
Interest expense                                     (112 )
Interest expense-financing fees                                     (20 )
Other income                                     33  
Loss from continuing operations before taxes                                     (3,500 )
Income tax expense                                     —  
Loss from continuing operations, net of taxes                                   $ (3,500 )

 

 

Segment Reporting for the quarter ended March 31, 2024

 

                                         
    Treatment     Services     Segments Total     Corporate (1)     Consolidated Total  
Revenue from external customers   $ 8,709     $ 4,908     $ 13,617     $ —     $ 13,617  
Cost of goods sold:                                        
Payroll and benefit expenses     3,751       2,452       6,203       —       6,203  
Material and supplies expenses     763       —       763       —       763  
Disposal expenses     1,569       —       1,569       —       1,569  
Transportation expenses     298       —       298       —       298  
Subcontract expenses      —       1,810       1,810       —       1,810  
Other cost of goods sold (2)     2,380       1,214       3,594       —       3,594  
Total cost of goods sold     8,761       5,476       14,237       —       14,237  
Gross loss     (52 )     (568 )     (620 )     —       (620 )
SG&A:                                        
Payroll and benefits     670       655       1,325       834       2,159  
Other SG&A (3)     395       137       532       853       1,385  
Total SG&A     1,065       792       1,857       1,687       3,544  
Research and development     218       28       246       50       296  
Loss from operations   $ (1,335 )   $ (1,388 )   $ (2,723 )   $ (1,737 )     (4,460 )
Interest income                                     174  
Interest expense                                     (116 )
Interest expense-financing fees                                     (13 )
Other income                                     1  
Loss from continuing operations before taxes                                     (4,414 )
Income tax benefit                                     (956 )
Loss from continuing operations, net of taxes                                   $ (3,458 )

 

(1) Amounts reflect the activity for corporate headquarters not included in the segment reporting information.
   
(2) Other cost of goods sold for each reportable segment includes:
 

Treatment - lab, regulatory, maintenance, depreciation and amortization, travel, outside services and general expenses.

Services - material and supplies, disposal, transportation, lab, regulatory, maintenance, depreciation and amortization, travel, outside services and general expenses.
   
(3) Other SG&A for each reportable segment and Corporate includes:
  Treatment-depreciation and amortization, travel, outside services, maintenance and general expenses.
  Services- travel, outside services, maintenance and general expenses.
  Corporate-maintenance, depreciation and amortization, travel, public company, outside services and general expenses.

 

The following table presents depreciation and amortization for the three months ended March 31, (in thousand):

 Schedule of depreciation and amortization

    2025     2024  
Treatment   $ 381     $ 366  
Services     44       44  
Total segment     425       410  
Corporate     11       21  
Total   $ 436     $ 431  

 

The following table presents capital expenditures for the three months ended March 31, (net of financed amount of $132 and $44 for the three months ended March 31, 2025, and 2024, respectively) (in thousand):

 

SCHEDULE OF CAPITAL EXPENDITURES

    2025     2024  
Treatment   $ 487     $ 160  
Services     36       84  
Total segment     523       244  
Corporate      —       —  
Total   $ 523     $ 244