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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

3. Revenue

 

Disaggregation of Revenue

 

In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of our services and provides meaningful disaggregation of each business segment’s results of operations. The nature of the Company’s performance obligations within our Treatment and Services Segments result in the recognition of our revenue primarily over time. The following tables present further disaggregation of our revenues by different categories for our Services and Treatment Segments:

 

 

                         
Revenue by Contract Type        
(In thousands)  Three Months Ended   Three Months Ended 
   September 30, 2024   September 30, 2023 
   Treatment   Services   Total   Treatment   Services   Total 
Fixed price  $9,064   $6,396   $15,460   $10,795   $10,188   $20,983 
Time and materials   —    1,352    1,352    —    894    894 
Total  $9,064   $7,748   $16,812   $10,795   $11,082   $21,877 

 

                         
Revenue by Contract Type        
(In thousands)  Nine Months Ended   Nine Months Ended 
   September 30, 2024   September 30, 2023 
   Treatment   Services   Total   Treatment   Services   Total 
Fixed price  $26,116   $15,405   $41,521   $33,223   $29,995   $63,218 
Time and materials   —    2,894    2,894    —    3,798    3,798 
Total  $26,116   $18,299   $44,415   $33,223   $33,793   $67,016 

 

 

                         
Revenue by generator                        
(In thousands)  Three Months Ended   Three Months Ended 
   September 30, 2024   September 30, 2023 
   Treatment   Services   Total   Treatment   Services   Total 
Domestic government  $6,578   $7,346   $13,924   $7,095   $8,444   $15,539 
Domestic commercial   2,229    312    2,541    3,450    2,170    5,620 
Foreign government   —    65    65    250    445    695 
Foreign commercial   257    25    282    —    23    23 
Total  $9,064   $7,748   $16,812   $10,795   $11,082   $21,877 

 

                         
Revenue by generator                        
(In thousands)  Nine Months Ended   Nine Months Ended 
   September 30, 2024   September 30, 2023 
   Treatment   Services   Total   Treatment   Services   Total 
Domestic government  $18,997   $17,129   $36,126   $24,160   $29,603   $53,763 
Domestic commercial   6,045    867    6,912    7,925    3,509    11,434 
Foreign government   1    232    233    1,002    615    1,617 
Foreign commercial   1,073    71    1,144    136    66    202 
Total  $26,116   $18,299   $44,415   $33,223   $33,793   $67,016 

 

Contract Balances

 

The timing of revenue recognition and billings can result in unbilled receivables (contract assets) or deferred revenue (contract liabilities). The following table represents changes in our contract asset and contract liabilities balances for the periods noted: The reduction in deferred revenue from December 31, 2023, to September 30, 2024, was primarily due to the substantial completion of a waste treatment project for a certain customer in which a prepayment was made to the Company by the customer in 2023.

 

 

(In thousands)  September 30, 2024   December 31, 2023   Change ($)   Change (%) 
Contract assets                    
Unbilled receivables - current  $7,277   $8,432   $(1,155)   -14%
                     
Contract liabilities                    
Deferred revenue  $5,398   $6,815   $(1,417)   -20.8%

 

(In thousands)  September 30, 2023   December 31, 2022   Change ($)   Change (%) 
Contract assets                    
Unbilled receivables - current  $9,336   $6,062   $3,274    54.0%
                     
Contract liabilities                    
Deferred revenue  $7,765   $4,813   $2,952    61.3%

 

During the three and nine months ended September 30, 2024, the Company recognized revenue of $677,000 and $5,596,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. During the three and nine months ended September 30, 2023, the Company recognized revenue of $842,000 and $6,289,000, respectively, related to untreated waste that was in the Company’s control as of the beginning of the year. All revenue recognized in each period related to performance obligations satisfied within the respective period.

 

Accounts Receivable

 

The following table represents changes in accounts receivable, net of credit losses, for the periods noted:

Schedule of Changes in Accounts Receivable, Net of Credit Losses

 

(In thousands)  September 30, 2024   December 31, 2023   Change ($)   Change (%) 
                     
Accounts Receivable (net)  $8,741   $9,722   $(981)   -10.1%

 

   September 30, 2023   December 31, 2022   Change ($)   Change (%) 
                     
Accounts Receivable (net)  $15,342   $9,364   $5,978    63.8%

 

The decrease from December 31, 2023, to September 30, 2024, was primarily due to reduced billing from decreased revenues. The decrease in accounts receivable was also attributed to the collection by May 2024 of outstanding accounts receivable for work performed for a certain Canadian project for which a settlement agreement was reached, with collection subject to meeting certain conditions/terms. (see “Note 11 - Perma-Fix Canada Inc. (“PF Canada”)”) for a discussion on the collection of the receivables).

 

Remaining Performance Obligations

 

The Company applies the practical expedient in Accounting Standards Codification (“ASC”) 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

 

Within our Services Segment, there are service contracts which provide that the Company has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. For those contracts, the Company has utilized the practical expedient in ASC 606-10-55-18, which allows the Company to recognize revenue in the amount for which we have the right to invoice; accordingly, the Company does not disclose the value of remaining performance obligations for those contracts.

 

The Company’s contracts and subcontracts relating to activities at governmental sites generally allow for termination for convenience at any time at the government’s option without payment of a substantial penalty. The Company does not disclose remaining performance obligations on these contracts.