Quarterly report pursuant to sections 13 or 15(d)

Operating Segments

Operating Segments

3 Months Ended

Mar. 31, 2012

11.	Operating Segments

In accordance to ASC 280, "Segment Reporting", we define an operating segment as a business activity:

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from which we may earn revenue and incur expenses;

●

whose operating results are regularly reviewed by the Chief Operating Officer to make decisions about resources to be allocated to the segment and assess its performance; and

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for which discrete financial information is available.

We currently have two reporting segments, which are based on a service offering approach. This however, excludes corporate headquarters, which does not generate revenue, and our discontinued operations, which includes all facilities as discussed in "Note 10 - Discontinued Operations and Divestitures".

Our reporting segments are defined as follows:

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

research and development activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

SERVICES SEGMENT which includes:

On-site waste management services to commercial and government customers;

Technical services which includes:

professional radiological measurement and site survey of large government and commercial installations using advance 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

augmented engineering services (through our Schreiber, Yonley & Associates subsidiary - "SYA") providing consulting environmental services to industrial and government customers:

including air, water, and hazardous waste permitting, air, soil and water sampling, compliance reporting, emission reduction strategies, compliance auditing, and various compliance and training activities; and

engineering and compliance support to other segments.

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

The table below presents certain financial information of our operating segments as of and for the three months ended March 31, 2012 and 2011 (in thousands).

Segment Reporting as of and for the Quarter Ended March 31, 2012

	Treatment		Services		Segments Total		Corporate And Other			(2)	Consolidated Total
Revenue from external customers (3)	$	12,842	$	25,231	$	38,073	$	-			$	38,073
Intercompany revenues		609		68		677		¾				¾
Gross profit		2,721		1,580		4,301		¾				4,301
Interest income		¾		¾		¾		15				15
Interest expense		2		5		7		214				221
Interest expense-financing fees		¾		¾		¾		34				34
Depreciation and amortization		1,130		460		1,590		18				1,608
Segment profit (loss)		1,093		56		1,149		(2,005	)			(856	)
Segment assets(1)		79,171		45,262		124,433		32,741		(4)		157,174
Expenditures for segment assets		166		38		204		2				206
Total debt		120		10		130		17,671		(5)		17,801

Segment Reporting as of and for the Quarter Ended March 31, 2011

	Treatment		Services		Segments Total		Corporate And Other			(2)	Consolidated Total
Revenue from external customers (3)	$	12,335	$	11,280	$	23,615	$	-			$	23,615
Intercompany revenues		418		69		487		¾				¾
Gross profit		960		2,070		3,030		¾				3,030
Interest income		¾		¾		¾		13				13
Interest expense		33		1		34		142				176
Interest expense-financing fees		¾		¾		¾		102				102
Depreciation and amortization		1,141		10		1,151		5				1,156
Segment profit (loss)		119		1,127		1,246		(1,779	)			(533	)
Segment assets(1)		95,655		2,871		98,526		32,726		(4)		131,252
Expenditures for segment assets		712		1		713		4				717
Total debt		1,072		16		1,088		11,965		(5)		13,053

(1) Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment.

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

(3) The following customers accounted for 10% or more of the total revenues generated from continuing operations for the three months ended March 31, 2012 and the corresponding period of 2011: (1) Revenues from CH Plateau Remediation Company ("CHPRC") totaled 6,311,000 or 16.6% and 13,662,000 or 57.9% for the three months ended March 31, 2012 and 2011, respectively; and (2) Revenues generated directly from the U.S. Department of Energy ("DOE") accounted for $7,679,000 or 20.2% and $0 and 0% for the three months ended March 31, 2012 and 2011, respectively. The increase in revenue generated directly from the DOE was attributable to the acquisition of SEC in October 31, 2011.

(4) Amount includes assets from our discontinued operations of $2,358,000 and $7,512,000 as of March 31, 2012 and 2011, respectively.

(5) Net of debt discount of ($2,000) and ($34,000) as of March 31, 2012 and 2011, respectively, based on the estimated fair value at issuance of two Warrants and 200,000 shares of the Company's Common Stock issued on May 8, 2009 in connection with a $3,000,000 promissory note entered into by the Company and Mr. William Lampson and Mr. Diehl Rettig. The promissory note and the Warrants were modified on April 18, 2011. See "Note 8 - Long-Term Debt - Promissory Notes and Installment Agreements" for additional information.