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Operating Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Operating Segments

12. 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 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. The Company’s CODM generally does not utilize total asset in allocating resources to its operating segments.

 

Our reporting segments are defined 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 and 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;
○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.

 

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, 2024, and 2023 (in thousands).

 

 

Segment Reporting for the Quarter Ended September 30, 2024

 

               (1)     
   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total  
Revenue from external customers  $9,064   $7,748   $16,812   $                  —   $16,812 
Intercompany revenues   13    23    36    —    — 
Gross profit   410    924    1,334    —    1,334 
Research and development   205    34    239    64    303 
Interest income   6    —    6    286    292 
Interest expense   (37)   (3)   (40)   (81)   (121)
Interest expense-financing fees   —    —    —    (18)   (18)
Depreciation and amortization   370    44    414    19    433 
Segment loss    (4,902)   (2,294)   (7,196)   (1,610)   (8,806)(4)
Expenditures for segment assets   1,203    180    1,383    —    1,383(2)

 

Segment Reporting for the Quarter Ended September 30, 2023

 

               (1)     
   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total 
Revenue from external customers  $10,795   $11,082   $21,877   $                  —   $21,877 
Intercompany revenues   4    88    92    —    — 
Gross profit   1,494    3,055    4,549    —    4,549 
Research and development   102    1    103    17    120 
Interest income   —    —    —    146    146 
Interest expense   (23)   (1)   (24)   (65)   (89)
Interest expense-financing fees   —    —    —    (36)   (36)
Depreciation and amortization   584    88    672    14    686 
Segment income (loss)   1,014    1,120    2,134    (1,888)   246 
Expenditures for segment assets   333    7    340    —    340(3)

 

Segment Reporting for the Nine Months Ended September 30, 2024

 

               (1)     
   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total  
Revenue from external customers  $26,116   $18,299   $44,415   $                 —   $44,415 
Intercompany revenues   67    52    119    —    — 
Gross (loss) profit   (839)   247    (592)   —    (592)
Research and development   609    87    696    176    872 
Interest income   7    —    7    672    679 
Interest expense   (107)   (4)   (111)   (235)   (346)
Interest expense-financing fees   —    —    —    (47)   (47)
Depreciation and amortization   1,104    133    1,237    58    1,295 
Segment loss   (7,416)   (3,713)   (11,129)   (4,920)   (16,049)(4)
Expenditures for segment assets   1,820    404    2,224    —    2,224(2)

 

Segment Reporting for the Nine Months Ended September 30, 2023

 

               (1)     
   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total  
Revenue from external customers  $33,223   $33,793   $67,016   $                 —   $67,016 
Intercompany revenues   234    124    358    —    — 
Gross profit   5,237    6,837    12,074    —    12,074 
Research and development   260    11    271    69    340 
Interest income   —    —    —    445    445 
Interest expense   (68)   (2)   (70)   (119)   (189)
Interest expense-financing fees   —    —    —    (80)   (80)
Depreciation and amortization   1,745    337    2,082    42    2,124 
Segment income (loss)   2,619    2,933    5,552    (5,104)   448 
Expenditures for segment assets   1,376    10    1,386    —    1,386(3)

 

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

 

(2)Net of financed amount of $361,000 and $406,000 for the three and nine months ended September 30, 2024, respectively.

 

(3)Net of financed amount of $152,000 and $309,000 for the three and nine months ended September 30, 2023, respectively.

 

(4)   Includes tax expense recorded in the amount of approximately $6,417,000 in the third quarter of 2024 in connection with a full valuation allowance against the Company’s U.S. deferred tax assets (see “Note 13 – Income Taxes” below for a discussion of this tax expense).