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Note 2 - Reportable Segments | 6 Months Ended
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Jun. 30, 2023
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 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 intersegment sales of $311 thousand during the six months ended June 30, 2023, which resulted in an intercompany elimination of profits in the amount of $102 thousand. 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 and six months ended June 30, 2023:
|  | Three Months Ended June 30, 2023 |
(in thousands) |  | Land and Water Resources |  |  | Water Treatment |  |  | Total |
Revenues |  | $ | 379 |  |  | $ | 430 |  |  | $ | 809 |
Total revenues |  |  | 379 |  |  |  | 430 |  |  |  | 809 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  | 432 |  |  |  | 336 |  |  |  | 768 |
General and administrative |  |  | 5,232 |  |  |  | 88 |  |  |  | 5,320 |
Depreciation |  |  | 271 |  |  |  | 34 |  |  |  | 305 |
Total costs and expenses |  |  | 5,935 |  |  |  | 458 |  |  |  | 6,393 |
Operating loss |  | $ | (5,556 | ) |  | $ | (28 | ) |  | $ | (5,584 | )
The Company only operated in one segment during the six months ended June 30, 2022, as the water treatment segment did not exist prior to the ATEC Acquisition in November 2022.
|  | Six Months Ended June 30, 2023 |
(in thousands) |  | Land and Water Resources |  |  | Water Treatment |  |  | Total |
Revenues |  | $ | 509 |  |  | $ | 430 |  |  | $ | 939 |
Total revenues |  |  | 509 |  |  |  | 430 |  |  |  | 939 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  | 454 |  |  |  | 336 |  |  |  | 790 |
General and administrative |  |  | 8,999 |  |  |  | 252 |  |  |  | 9,251 |
Depreciation |  |  | 549 |  |  |  | 85 |  |  |  | 634 |
Total costs and expenses |  |  | 10,002 |  |  |  | 673 |  |  |  | 10,675 |
Operating loss |  | $ | (9,493 | ) |  | $ | (243 | ) |  | $ | (9,736 | )
Assets by operating segment are as follows (dollars in thousands):
|  | June 30, 2023 |  |  | December 31, 2022 |
Operating Segment: |  |  |  |  |  |  |  |
Water and Land Resources |  | $ | 116,497 |  |  | $ | 107,439 |
Water Treatment |  |  | 4,360 |  |  |  | 3,348 |
|  | $ | 120,857 |  |  | $ | 110,787 |
Goodwill by operating segment is as follows (dollars in thousands):
|  | June 30, 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):
|  | June 30, 2023 |
|  | Water and Land Resources |  |  | Water Treatment |
Land and land improvements |  | $ | 32,110 |  |  | $ | - |
Water programs |  |  | 29,498 |  |  |  | - |
Pipeline |  |  | 22,093 |  |  |  | - |
Buildings |  |  | 1,715 |  |  |  | - |
Leasehold improvements, furniture and fixtures |  |  | 1,606 |  |  |  | 4 |
Machinery and equipment |  |  | 3,478 |  |  |  | 176 |
Construction in progress |  |  | 3,529 |  |  |  | - |
|  |  | 94,029 |  |  |  | 180 |
Less accumulated depreciation |  |  | (8,690 | ) |  |  | (80 | )
|  | $ | 85,339 |  |  | $ | 100 |
|  | 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 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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