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Note 2 - Reportable Segments
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 2 – REPORTABLE SEGMENTS

 

The Company currently operates in two reportable 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 pre-revenue development of the Water Project (supply, storage and conveyance), and agricultural operations. The Company’s second operating segment is its Water Filtration Technology 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 nine months ended September 30, 2024, and $311 thousand during the nine months ended September 30, 2023.

 

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 nine months ended September 30, 2024 and 2023:

 

 

  

Three Months Ended September 30, 2024

 
             

(in thousands)

 

Land and Water

Resources

  

Water Filtration

Technology

  

Total

 
             

Revenues

 $383  $2,841  $3,224 
             

Costs and expenses:

            

Cost of sales

  557   1,852   2,409 

General and administrative

  4,820   455   5,275 

Depreciation

  292   15   307 
             

Total costs and expenses

  5,669   2,322   7,991 
             

Operating income (loss)

 $(5,286) $519  $(4,767)

 

 

  

Three Months Ended September 30, 2023

 

(in thousands)

 

Land and Water

Resources

  

Water Filtration

Technology

  

Total

 
             

Revenues

 $199  $169  $368 
             

Costs and expenses:

            

Cost of sales

  513   179   692 

General and administrative

  4,927   200   5,127 

Depreciation

  277   31   308 
             

Total costs and expenses

  5,717   410   6,127 
             

Operating loss

 $(5,518) $(241) $(5,759)

 

 

  

Nine Months Ended September 30, 2024

 
             

(in thousands)

 

Land and Water

Resources

  

Water Filtration

Technology

  

Total

 
             

Revenues

 $1,369  $3,489  $4,858 
             

Costs and expenses:

            

Cost of sales

  1,896   2,369   4,265 

General and administrative

  15,217   1,093   16,310 

Depreciation

  866   41   907 
             

Total costs and expenses

  17,979   3,503   21,482 
             

Operating loss

 $(16,610) $(14) $(16,624)

 

 

  

Nine Months Ended September 30, 2023

 
             

(in thousands)

 

Land and Water

Resources

  

Water Filtration

Technology

  

Total

 
             

Revenues

 $708  $599  $1,307 
             

Costs and expenses:

            

Cost of sales

  967   515   1,482 

General and administrative

  13,926   452   14,378 

Depreciation

  826   116   942 
             

Total costs and expenses

  15,719   1,083   16,802 
             

Operating loss

 $(15,011) $(484) $(15,495)

 

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

 

  

September 30,

2024

  

December 31,

2023

 

Operating Segment:

        

Water and Land Resources

 $102,536  $101,946 

Water Filtration Technology

  10,017   5,428 
  $112,553  $107,374 

 

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

 

  

September 30,

2024

  

December 31,

2023

 

Operating Segment:

        

Water and Land Resources

 $3,813  $3,813 

Water Filtration Technology

  1,901   1,901 
  $5,714  $5,714 

 

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

 

  

September 30, 2024

 
  

Water and Land

Resources

  

Water Filtration

Technology

 
         

Land and land improvements

 $33,004  $- 

Water programs

  29,331   - 

Pipeline

  22,099   - 

Buildings

  1,805   - 

Leasehold improvements, furniture and fixtures

  1,605   4 

Machinery and equipment

  3,826   247 

Construction in progress

  5,107   6 
   96,777   257 

Less accumulated depreciation

  (10,103)  (171)
  $86,674  $86 

 

 

  

December 31, 2023

 
  

Water and Land

Resources

  

Water Filtration

Technology

 
         

Land and land improvements

 $32,357  $- 

Water programs

  29,209   - 

Pipeline

  22,096   - 

Buildings

  1,730   - 

Leasehold improvements, furniture and fixtures

  1,605   4 

Machinery and equipment

  3,719   210 

Construction in progress

  5,664   - 
   96,380   214 

Less accumulated depreciation

  (9,238)  (139)
  $87,142  $75