Quarterly report [Sections 13 or 15(d)]

Operating Segments

v3.25.2
Operating Segments
 6 Months Ended
Jun. 30, 2025
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.

 

 

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:

 

○ 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 (“D&D”) 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, 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 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 is represented by its chief executive officer and chief operating officer (or “CODM group”). The CODM group 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 group does not evaluate and allocate resources for the reportable segments using assets; therefore, the Company does not disclose 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 and six months ended June 30, 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 group 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 Three Months Ended June 30, 2025

 

                                         
    Treatment     Services    

Segments

Total

     Corporate (1)    

Consolidated

Total

  
Revenue from external customers   $ 11,397     $ 3,189     $ 14,586     $ —     $ 14,586  
Cost of Goods Sold:                                        
Payroll and benefits expenses     4,742       1,874       6,616       —       6,616  
Material and supplies expenses     1,235       —       1,235       —       1,235  
Disposal expenses     1,095       —       1,095       —       1,095  
Transportation expenses     366       —       366       —       366  
Subcontract expenses     —       158       158       —       158  
Other cost of goods sold (2)     2,393       1,176       3,569       —       3,569  
Total cost of goods sold     9,831       3,208       13,039       —       13,039  
Gross profit (loss)     1,566       (19 )     1,547       —       1,547  
Selling, general and administrative expenses (“SG&A”):                                        
Payroll and benefits     942       647       1,589       940       2,529  
Other SG&A (3)     408       176       584       1,017       1,601  
Total SG&A     1,350       823       2,173       1,957       4,130  
Research and development     232       4       236       76       312  
Gain on disposal of property and equipment     (1 )     —       (1 )     —       (1 )
Loss from operations   $ (15 )   $ (846 )   $ (861 )   $ (2,033 )     (2,894 )
Interest income                                     301  
Interest expense                                     (124 )
Interest expense-financing fees                                     (21 )
Other income                                     155  
Loss from continuing operations before taxes                                     (2,583 )
Income tax expense                                     —  
Loss from continuing operations, net of taxes                                   $ (2,583 )

 

Segment Reporting for the Three Months Ended June 30, 2024

 

                                         
    Treatment     Services    

Segments

Total

     Corporate (1)    

Consolidated

Total

  
Revenue from external customers   $ 8,343     $ 5,643     $ 13,986     $ —     $ 13,986  
Cost of goods sold:                                        
Payroll and benefit expenses     3,943       1,977       5,920       —       5,920  
Material and supplies expenses     1,078       —       1,078       —       1,078  
Disposal expenses     1,854       —       1,854       —       1,854  
Transportation expenses     217       —       217       —       217  
Subcontract expenses     —       2,554       2,554       —       2,554  
Other cost of goods sold (2)     2,448       1,221       3,669       —       3,669  
Total cost of goods sold     9,540       5,752       15,292       —       15,292  
Gross loss     (1,197 )     (109 )     (1,306 )     —       (1,306 )
SG&A:                                        
Payroll and benefits     732       501       1,233       835       2,068  
Other SG&A (3)     343       165       508       879       1,387  
Total SG&A     1,075       666       1,741       1,714       3,455  
Research and development     186       24       210       63       273  
Loss on disposal of property and equiment     —       1       1       —       1  
Loss from operations   $ (2,458 )   $ (800 )   $ (3,258 )   $ (1,777 )     (5,035 )
Interest income                                     213  
Interest expense                                     (109 )
Interest expense-financing fees                                     (16 )
Other income                                     1  
Loss from continuing operations before taxes                                     (4,946 )
Income tax benefit                                     (1,161 )
Loss from continuing operations, net of taxes                                   $ (3,785 )

 

 

Segment Reporting for the Six Months Ended June 30, 2025

 

                                         
    Treatment     Services     Segments Total    

Corporate(1)

    

Consolidated

Total

  
Revenue from external customers   $ 20,583     $ 7,922     $ 28,505     $ —     $ 28,505  
Cost of Goods Sold:                                        
Payroll and benefits expenses     9,179       3,887       13,066       —       13,066  
Material and supplies expenses     2,586       —       2,586       —       2,586  
Disposal expenses     1,316       —       1,316       —       1,316  
Transportation expenses     861       —       861       —       861  
Subcontract expenses     —       1,066       1,066       —       1,066  
Other cost of goods sold (2)     4,825       2,581       7,406       —       7,406  
Total cost of goods sold     18,767       7,534       26,301       —       26,301  
Gross profit     1,816       388       2,204       —       2,204  
SG&A:                                        
Payroll and benefits     1,815       1,185       3,000       1,871       4,871  
Other SG&A (3)     891       374       1,265       2,009       3,274  
Total SG&A     2,706       1,559       4,265       3,880       8,145  
Research and development     523       27       550       145       695  
Gain on disposal of property and equipment     (1 )     (5 )     (6 )     —       (6 )
Loss from operations   $ (1,412 )   $ (1,193 )   $ (2,605 )   $ (4,025 )     (6,630 )
Interest income                                     636  
Interest expense                                     (236 )
Interest expense-financing fees                                     (41 )
Other income                                     188  
Loss from continuing operations before taxes                                     (6,083 )
Income tax expense                                     —  
Loss from continuing operations, net of taxes                                   $ (6,083 )

 

Segment Reporting for the Six Months Ended June 30, 2024

 

                                         
    Treatment     Services     Segments Total    

Corporate(1)

    

Consolidated

Total

  
Revenue from external customers   $ 17,052     $ 10,551     $ 27,603     $ —     $ 27,603  
Cost of goods sold:                                        
Payroll and benefit expenses     7,695       4,429       12,124       —       12,124  
Material and supplies expenses     1,841       —       1,841       —       1,841  
Disposal expenses     3,423       —       3,423       —       3,423  
Transportation expenses     515       —       515       —       515  
Subcontract expenses     —       4,364       4,364       —       4,364  
Other cost of goods sold (2)     4,827       2,435       7,262       —       7,262  
Total cost of goods sold     18,301       11,228       29,529       —       29,529  
Gross loss     (1,249 )     (677 )     (1,926 )     —       (1,926 )
SG&A:                                        
Payroll and benefits     1,402       1,156       2,558       1,669       4,227  
Other SG&A (3)     738       302       1,040       1,732       2,772  
Total SG&A     2,140       1,458       3,598       3,401       6,999  
Research and development     404       52       456       113       569  
Loss on disposal of property and equiment     —       1       1       —       1  
Loss from operations   $ (3,793 )   $ (2,188 )   $ (5,981 )   $ (3,514 )     (9,495 )
Interest income                                     387  
Interest expense                                     (225 )
Interest expense-financing fees                                     (29 )
Other income                                     2  
Loss from continuing operations before taxes                                     (9,360 )
Income tax benefit                                     (2,117 )
Loss from continuing operations, net of taxes                                   $ (7,243 )

 

(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, repair and maintenance, depreciation and amortization, travel, outside services and general expenses.

Services - material and supplies, disposal, transportation, lab, regulatory, repair and 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, repair and maintenance and general expenses.
Services- travel, outside services, repair and maintenance and general expenses.
Corporate-repair and maintenance, depreciation and amortization, travel, public company, outside services and general expenses.

 

 

The following table presents depreciation and amortization for the three and six months ended June 30, (in thousand):

 Schedule of Depreciation and Amortization

                         
    Three Months Ended     Six Months Ended  
    June 30,     June 30,
    2025     2024     2025     2024  
Treatment   $ 389     $ 367     $ 771     $ 733  
Services     38       44       81       89  
Total segment     427       411       852       822  
Corporate     10       19       21       40  
Total   $ 437     $ 430     $ 873     $ 862  

 

The following table presents capital expenditures for the three and six months ended June 30, (in thousand):

 

Schedule of Capital Expenditures

                         
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2025     2024     2025     2024  
Treatment   $ 893     $ 457     $ 1,380     $ 617  
Services     16       140       52       224  
Total segment     909       597       1,432       841  
Corporate     —       —       —       —  
Total   $ 909 (1)   $ 597 (2)   $ 1,432 (1)   $ 841 (2)

 

(1) Net of financed amount of $0 and $132 for the three and six months ended June 30, 2025, respectively.

 

(2) Net of financed amount of $0 and $44 for the three and six months ended June 30, 2024, respectively.