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Operating Segments
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Operating Segments

11. Operating Segments

 

Our reporting segments are defined as below:

 

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 & Development (“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;
  ○ health physics services including health physicists, radiological engineers, nuclear engineers and health physics technicians support to government and private radioactive materials licensees;
  ○ 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 (civil, nuclear, mechanical, chemical, radiological and environmental), project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and
  ○ waste management services to commercial and governmental customers.

 

  - Nuclear services, which include:

 

  ○ decontamination and decommissioning (“D&D”) of government and commercial facilities impacted with radioactive material and hazardous constituents including engineering, technology applications, specialty services, logistics, transportation, processing and disposal;
  ○ license termination support of radioactive material licensed and federal facilities over the entire cycle of the termination process: project management, planning, characterization, waste stream identification and delineation, remediation/demo, final status survey, compliance demonstration, reporting, transportation, disposal and emergency response.

 

  - 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.
  - A company owned gamma spectroscopy laboratory for the analysis of oil and gas industry solids and liquids.

 

MEDICAL SEGMENT, which is currently involved on a limited basis in the R&D of the Company’s medical isotope production technology, has not generated any revenue and has substantially reduced its R&D costs and activities due to the need for capital to fund these activities. The Company anticipates that the Medical Segment will not resume full R&D activities until the necessary capital is obtained through its own credit facility or additional equity raise, or obtains partners willing to provide funding for its R&D.

 

Our reporting segments exclude our corporate headquarters and our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.

 

 

The table below presents certain financial information of our operating segments for the three and nine months ended September 30, 2021 and 2020 (in thousands).

 

Segment Reporting for the Quarter Ended September 30, 2021

 

   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
Revenue from external customers  $8,893   $6,904     —   $15,797    $ —   $15,797 
Intercompany revenues   220    5     —    225      —     — 
Gross profit (negative gross profit)   2,487    (263)    —    2,224      —    2,224 
Research and development   52    18    162    232     11    243 
Interest income    —     —     —     —     2    2 
Interest expense   (51)   (1)    —    (52)    (25)   (77)
Interest expense-financing fees    —     —     —     —     (11)   (11)
Depreciation and amortization   319    85     —    404     5    409 
Segment income (loss) before income taxes   1,317    (984)   (162)   171     (1,626)   (1,455)
Income tax expense (benefit)   1     —     —    1     (2,837)   (2,836)(5)
Segment income (loss)   1,316    (984)   (162)   170     1,211    1,381 
Expenditures for segment assets   482     —     —    482      —    482(2)

 

Segment Reporting for the Quarter Ended September 30, 2020

 

   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
Revenue from external customers  $7,066   $23,106     —   $30,172    $ —   $30,172 
Intercompany revenues   226    6     —    232      —     — 
Gross profit   1,094    3,656     —    4,750      —    4,750 
Research and development   49    7    81    137     20    157 
Interest income    —     —     —     —     28    28 
Interest expense   (34)   (3)    —    (37)    (50)   (87)
Interest expense-financing fees    —     —     —     —     (58)   (58)
Depreciation and amortization   373    97     —    470     8    478 
Segment income (loss) before income taxes   280    2,813    (81)   3,012     (1,664)   1,348 
Income tax (benefit) expense   (170)   2     —    (168)    35    (133)
Segment income (loss)   450    2,811    (81)   3,180     (1,699)   1,481 
Expenditures for segment assets   95    24     —    119     3    122(3)

 

Segment Reporting for the Nine Months Ended September 30, 2021

 

   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
Revenue from external customers  $24,094   $30,981     —   $55,075    $ —   $55,075 
Intercompany revenues   1,199    44     —    1,243      —     — 
Gross profit   4,845    701     —    5,546      —    5,546 
Research and development   142    50    311    503     35    538 
Interest income    —     —     —     —     23    23 
Interest expense   (88)   (9)    —    (97)    (112)   (209)
Interest expense-financing fees    —     —     —     —     (28)   (28)
Depreciation and amortization   939    255     —    1,194     14    1,208 
Segment income (loss) before income taxes   1,669    (1,721)   (311)   (363)    987(4)   624 
Income tax (benefit) expense   (13)   10     —    (3)    (2,837)   (2,840)(5)
Segment income (loss)   1,682    (1,731)   (311)   (360)    3,824    3,464 
Expenditures for segment assets   1,109    14     —    1,123     9    1,132(2)

 

Segment Reporting for the Nine Months Ended September 30, 2020

 

   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
   Treatment   Services   Medical   Segments Total    Corporate (1)   Consolidated Total 
Revenue from external customers  $24,469   $52,610     —   $77,079    $ —   $77,079 
Intercompany revenues   879    19     —    898      —     — 
Gross profit   5,533    7,167     —    12,700      —    12,700 
Research and development   194    119    221    534     64    598 
Interest income   1     —     —    1     111    112 
Interest expense   (80)   (13)    —    (93)    (213)   (306)
Interest expense-financing fees    —     —     —     —     (187)   (187)
Depreciation and amortization   912    259     —    1,171     18    1,189 
Segment income (loss) before income taxes   2,577    5,162    (221)   7,518     (4,597)   2,921 
Income tax (benefit) expense   (165)   2     —    (163)    35    (128)
Segment income (loss)   2,742    5,160    (221)   7,681     (4,632)   3,049 
Expenditures for segment assets   1,095    385     —    1,480     8    1,488(3)

 

 

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

 

(2)Net of financed amount of $271,000 and $348,000 for the three and nine months ended September 30, 2021, respectively.

 

(3)Net of financed amount of $751,000 and $883,000 for the three and nine months ended September 30, 2020, respectively.

 

(4)Amounts includes approximately $5,381,000 of “Gain on extinguishment of debt” recorded in connection with the Company’s PPP Loan which was forgiven by the SBA effective June 15, 2021 (see “Note 8 – Long Term Debt – PPP Loan” for information of this loan forgiveness).

 

(5)Includes tax benefit recorded in amount of approximately $2,351,000 resulting from release of valuation allowance on the Company’s deferred tax assets (see “Note 12 – Income Taxes” below a discussion of this tax benefit).