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Note 2 - Reportable Segments
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Notes to the Consolidated Financial Statements

 

NOTE 2 – REPORTABLE SEGMENTS

 

The Company currently operates in two segments based upon its organizational structure and the way in which its operations are managed and evaluated. The Company’s largest segment is Land and Water Resources, which comprises all activities regarding its properties in the eastern Mojave Desert including development of the Water Project, and agricultural operations. The Company’s second operating segment is its water treatment business, ATEC Water Systems LLC (“ATEC”) which provides innovative water filtration solutions for impaired or contaminated groundwater sources.  The Company acquired the assets of ATEC Systems, Inc. in November 2022 into its new subsidiary ATEC.  There were no intersegment sales during the quarter.

 

We evaluate our performance based on segment operating (loss). Interest expense, income tax expense and losses related to equity method investments are excluded from the computation of operating (loss) for the segments.  Segment net revenue, segment operating expenses and segment operating (loss) information consisted of the following for the three months ended March 31, 2023:

 

  

Three Months Ended March 31, 2023

 

(in thousands)

 

Land and Water Resources

  

Water

Treatment

  Total  
             

Revenues

 $130  $-  $130 
             

Total revenues

  130   -   130 
             

Costs and expenses:

            

General and administrative

  3,789   164   3,953 

Depreciation

  278   51   329 
             

Total costs and expenses

  4,067   215   4,282 
             

Operating loss

 $(3,937

)

 $(215

)

 $(4,152

)

 

The Company only operated in one segment during the three months ended March 31, 2022 as the water treatment segment did not exist prior to the ATEC Acquisition in November 2022.

 

Assets by operating segment are as follows (dollars in thousands):

 

 

 

March 31, 2023

  December 31, 2022 

Operating Segment:

       

Water and Land Resources

 $124,050 $107,439 

Water Treatment

  3,497  3,348 
  $127,547 $110,787 

 

Goodwill by operating segment is as follows (dollars in thousands):

 

 

 

March 31, 2023

  December 31, 2022 

Operating Segment:

       

Water and Land Resources

 $3,813 $3,813 

Water Treatment

  1,901  1,901 
  $5,714 $5,714 

 

Property, plant, equipment and water programs consist of the following (dollars in thousands):

 

  

March 31, 2023

 
  

Water and Land Resources

  

Water Treatment

 
       

Land and land improvements

 

$

32,038

  

$

-

 

Water programs

  

29,366

   

-

 

Pipeline

  

22,092

   

-

 

Buildings

  

1,715

   

-

 

Leasehold improvements, furniture and fixtures

  

1,606

   

3

 

Machinery and equipment

  

3,478

   

176

 

Construction in progress

  

3,195

   

-

 
   

93,490

   

179

 

Less accumulated depreciation

  

(8,419

)

  

(51

)

  

$

85,071

  

$

128

 

 

  

December 31, 2022

 
  

Water and Land Resources

  

Water Treatment

 
       

Land and land improvements

 

$

30,579

  

$

-

 

Water programs

  

29,210

   

-

 

Pipeline

  

22,091

   

-

 

Buildings

  

1,715

   

-

 

Leasehold improvements, furniture and fixtures

  

1,606

   

3

 

Machinery and equipment

  

3,229

   

166

 

Construction in progress

  

3,680

   

-

 
   

92,110

   

169

 

Less accumulated depreciation

  

(8,141

)

  

-

 

  

$

83,969

  

$

169