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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 19 SEGMENT REPORTING

 

In accordance with ASC 280, “Segment Reporting”, we define an operating segment as a business activity:

 

  ● from which we may earn revenue and incur expenses;
  ● whose operating results are regularly reviewed by the CODM to make decisions about resources to be allocated to the segment and assess its performance; and
  ● for which discrete financial information is available.

 

We have two reporting segments, consisting of the Treatment and Services Segments, which are based on a service offering approach. The Company’s segment in 2021 also included the Medical Segment which primary purpose was the R&D of a medical isotope production technology. The Medical Segment had not generated any revenues. During December 2021, the Company made the strategic decision to cease all R&D activities under the Medical Segment which resulted in the sale of 100% of its interest of PFM Poland (see “Note 15 – PF Medical” for a discussion of this transaction). Our reporting segments exclude our corporate headquarter, business center and our discontinued operations (see “Note 9 – Discontinued Operations”) which do not generate revenues.

 

The table below shows certain financial information of our reporting segments as of and for the years ended December 31, 2022 and 2021 (in thousands).

 

 

Segment Reporting as of and for the year ended December 31, 2022

 

   Treatment   Services   Segments
Total		     Corporate (2)   Consolidated
Total		 
Revenue from external customers  $33,358   $37,241   $70,599(3)(4)    $—   $70,599 
Intercompany revenues   56    213    269      —    — 
Gross profit   5,243    4,366    9,609      —    9,609 
Research and development   246    23    269      67    336 
Interest income   —    —    —      99    99 
Interest expense   (74)   (3)   (77)     (98)   (175)
Interest expense-financing fees   —    (1)   (1)     (60)   (61)
Depreciation and amortization   1,710    334    2,044      65    2,109 
Segment income (loss) before income taxes   1,531    1,565    3,096      (6,685)   (3,589)(13)
Income tax benefit   (236)   (133)   (369)     (9)   (378)
Segment income (loss)   1,767    1,698    3,465      (6,676)   (3,211)
Segment assets (1)   37,918    8,473(8)   46,391      24,507(5)   70,898 
Expenditures for segment assets (net)   866    157    1,023      —    1,023(7)
Total debt   482    5    487      552    1,039(6)

 

Segment Reporting as of and for the year ended December 31, 2021

 

   Treatment   Services   Medical   Segments
Total		   Corporate (2)   Consolidated
Total		 
Revenue from external customers  $32,992   $39,199    —   $72,191(3)(4)  $—   $72,191 
Intercompany revenues   1,265    47    —    1,312    —    — 
Gross profit   6,718    106    —    6,824    —    6,824 
Research and development   221    71    414    706    40    746 
Interest income   1    —    —    1    25    26 
Interest expense   (100)   (10)   —    (110)   (137)   (247)
Interest expense-financing fees   —    (1)   —    (1)   (40)   (41)
Depreciation and amortization   1,306    353    —    1,659    28    1,687 
Segment income (loss) before income taxes   2,283    (3,044)   (1,476)(11)(12)   (2,237)   (561)(9)(11)   (2,798)
Income tax (benefit) expense   (150)   (962)   26    (1,086)   (2,804)   (3,890)(10)
Segment income (loss)   2,433    (2,082)   (1,502)   (1,151)   2,243    1,092 
Segment assets(1)   37,050    15,244(8)   48    52,342    24,959(5)   77,301 
Expenditures for segment assets (net)   1,363    205    —    1,568    9    1,577(7)
Total debt   25    14    —    39    954    993(6)

 

(1) Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment.
   
(2) Amounts reflect the activity for corporate headquarters not included in the segment information.
   
(3) The Company performed services relating to waste generated by government clients (domestic and foreign (primarily Canadian)), either directly as a prime contractor or indirectly for others as a subcontractor to government entities, representing approximately 60,030,000 or 85.0% of total revenue for 2022 and 60,812,000 or 84.2% of total revenue for 2021. The following reflects such revenue generated by our two segments:

  

 

 

 

 

 

 

 

 

 

 

   2022   2021 
   Treatment   Services   Total   Treatment   Services   Total 
Domestic government  $23,752   $35,906   $59,658   $22,538   $29,013   $51,551 
Foreign government   574    (202)   372    577    8,684    9,261 
Total  $24,326   $35,704   $60,030   $23,115   $37,697   $60,812 

 

  

(4)The following table reflects revenue based on customer location:

  

   2022   2021 
United States  $69,373   $62,257 
Canada   406    9,277 
Germany   678    567 
Italy   14    — 
United Kingdom   128    90 
Total  $70,599   $72,191 

 

(5)Amount includes assets from our discontinued operations of $96,000 and $96,000 at December 31, 2022 and 2021, respectively.

 

 

(6)Net of debt issuance costs of ($88,000) and ($112,000) for 2022 and 2021, respectively (see “Note 10 – “Long-Term Debt” for additional information).

 

(7)Net of financed amount of $114,000 and $585,000 for the year ended December 31, 2022 and 2021, respectively.

 

(8)Includes long-lived asset (net) for our PF Canada, Inc. subsidiary of $0 and $25,000 for the year ended December 31, 2022 and 2021, respectively.

 

(9)Amount 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 11 – Coronavirus Aid, Relief and Economic Securities Act (“CARES ACT”) – Paycheck Protection Program (“PPP”) Loan” for information of this loan forgiveness).

 

(10)Includes tax benefit recorded in amount of approximately $2,351,000 resulting from release of valuation allowance on the Company’s deferred tax assets.

 

(11)Includes elimination of gain/loss of $2,537,000 in debt forgiveness between PFM Poland and the Company (see “Note 15 – PF Medical” for a discussion of this debt forgiveness).

 

(12)Amount includes a “Loss on deconsolidation of subsidiary” recorded in the amount of approximately $1,062,000 resulting from the sale of PFM Poland (see “Note 15 – PF Medical” for a discussion of this loss).

 

(13)Includes approximately $1,975,000 recorded as other income under the Employee Retention Credit program under the CARES Act, as amended (see “Note 11 – Coronavirus Aid, Relief and Economic Securities Act (“CARES ACT”) – Employee Retention Credit (“ERC”)” for a discussion of this expected refund amount).