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Operating Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Operating Segments

11. Operating Segments

 

In accordance with ASC 280, “Segment Reporting”, the Company defines an operating segment as a business activity: (1) from which we may earn revenue and incur expenses; (2) whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (3) for which discrete financial information is available.

 

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
  - 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;
  ○ 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
  ○ on-site waste management services to commercial and governmental customers.

 

 

  - Nuclear services, which include:

 

○technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
○remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; logistics; transportation; and emergency response; and

 

-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.

 

The Company’s segment also included the Medical Segment in 2021. As previously discussed, the Company made the strategic decision to cease all R&D activities under the Medical Segment and sold 100% of its interest in PFM Poland (which comprised the Medical Segment) in December 2021. The Company’s Medical Segment had not generated any revenue and was involved in the Company’s medical isotope production technology.

 

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 six months ended June 30, 2022 and 2021 (in thousands):

 

Segment Reporting for the Quarter Ended June 30, 2022

 

   Treatment   Services   Segments
Total		   Corporate (1)   Consolidated
Total		 
Revenue from external customers  $8,393   $11,062   $19,455   $—   $19,455 
Intercompany revenues   —    17    17    —    — 
Gross profit   1,563    1,321    2,884    —    2,884 
Research and development   59    8    67    13    80 
Interest income   —    —    —    29    29 
Interest expense   (19)   3    (16)   (25)   (41)
Interest expense-financing fees   —    —    —    (15)   (15)
Depreciation and amortization   381    86    467    13    480 
Segment income (loss) before income taxes   364    515    879    (1,789)   (910)
Income tax expense   304    43    347    —    347 
Segment income (loss)   60    472    532    (1,789)   (1,257)
Expenditures for segment assets   373    39    412    —    412(3)

 

Segment Reporting for the Six Months Ended June 30, 2022

 

   Treatment   Services   Segments
Total		   Corporate (1)   Consolidated
Total		 
Revenue from external customers  $15,872   $19,498   $35,370   $—   $35,370 
Intercompany revenues   —    27    27    —    — 
Gross profit   2,201    2,319    4,520    —    4,520 
Research and development   124    23    147    29    176 
Interest income   —    —    —    40    40 
Interest expense   (33)   2    (31)   (45)   (76)
Interest expense-financing fees   —    —    —    (28)   (28)
Depreciation and amortization   752    157    909    27    936 
Segment (loss) income before income taxes   (117)   799    682    (3,514)   (2,832)
Income tax benefit   (254)   (72)   (326)   —    (326)
Segment income (loss)   137    871    1,008    (3,514)   (2,506)
Expenditures for segment assets   670    88    758    —    758(3)

 

 

Segment Reporting for the Quarter Ended June 30, 2021

 

   Treatment   Services   Medical   Segments
Total		   Corporate (1)   Consolidated
Total		 
Revenue from external customers  $7,706   $8,439    —   $16,145   $—   $16,145 
Intercompany revenues   319    32    —    351    —    — 
Gross profit (negative gross profit)   1,433    (467)   —    966    —    966 
Research and development   43    19    72    134    10    144 
Interest income   —    —    —    —    2    2 
Interest expense   (18)   —    —    (18)   (47)   (65)
Interest expense-financing fees   —    —    —    —    (9)   (9)
Depreciation and amortization   310    85    —    395    5    400 
Segment income (loss) before income taxes   471    (1,292)   (72)   (893)   4,027(2)   3,134 
Income tax expense   3    10    —    13    —    13 
Segment income (loss)   468    (1,302)   (72)   (906)   4,027    3,121 
Expenditures for segment assets   270    10    —    280    9    289(4)

 

Segment Reporting for the Six Months Ended June 30, 2021

 

   Treatment   Services   Medical   Segments
Total		   Corporate (1)   Consolidated
Total		 
Revenue from external customers  $15,201   $24,077    —   $39,278   $—   $39,278 
Intercompany revenues   979    39    —    1,018    —    — 
Gross profit   2,358    964    —    3,322    —    3,322 
Research and development   90    32    149    271    24    295 
Interest income   —    —    —    —    21    21 
Interest expense   (37)   (8)   —    (45)   (87)   (132)
Interest expense-financing fees   —    —    —    —    (17)   (17)
Depreciation and amortization   620    170    —    790    9    799 
Segment income (loss) before income taxes   352    (737)   (149)   (534)   2,613(2)   2,079 
Income tax (benefit) expense   (14)   10    —    (4)   —    (4)
Segment income (loss)   366    (747)   (149)   (530)   2,613    2,083 
Expenditures for segment assets   627    14    —    641    9    650(4)

 

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

 

(2)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 U.S Small Business Administration effective June 15, 2021.

 

(3)Net of financed amount of $0 and $114,000 for the three and six months ended June 30, 2022, respectively.

 

(4)Net of financed amount of $0 and $29,000 for the three and six months ended June 30, 2021, respectively.