XML 43 R26.htm IDEA: XBRL DOCUMENT v3.25.0.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 16

SEGMENT REPORTING

 

In accordance with ASC 280, “Segment Reporting”, the Company defines 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.

 

The Company has two reporting segments, consisting of the Treatment and Services Segments, which are primarily based on a service offering approach (see “Note 1- Description of Business and Basis of Presentation” for the type of services from which each of the Company’s reportable segments derives its revenue). The Company’s reporting segments exclude our corporate headquarter which serves to support its two reporting segments through various functions, such as our executives, finance, treasury, human resources, accounting, and legal departments. Financial results for the corporate headquarter are not considered by the CODM in evaluating the performance of the reportable segments. Our reporting segment also excludes our discontinued operations (see “Note 8 – Discontinued Operations”) which do not generate revenues.

 

The Company’s CODM, which is its chief executive officer, evaluates the performance of the Treatment and Services segments and allocates resources (including financial or capital resources) to each reporting segment based on revenue and (loss) income from operations by comparing actual results for these metrics to budgeted and forecasted amounts for these metrics on a monthly, quarterly and year-to-date basis.

 

The Company’s CODM does not evaluate and allocate resources for the reportable segments using assets; therefore, the Company does not disclosure assets for its reporting segments.

 

The table below summarizes (loss) income from operations for the Company’s two reporting segments and its corporate headquarter and provides reconciliation of such financial metric to the Company’s consolidated totals for the years 2024 and 2023 for our continuing operations. Significant segment expenses that are included in the measure of segment profit or losses for each reportable segment, and regularly provided to the CODM include payroll and benefit, material and supplies, disposal and transportation and subcontract expenses and are reflected separately, where applicable (in thousands).

 SCHEDULE OF SEGMENT REPORTING INFORMATION

Segment Reporting as of and for the year ended December 31, 2024

 

   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total 
Revenue from external customers  $34,953   $24,164   $59,117(4)(5)  $—   $59,117 
Cost of Goods Sold:                         
Payroll and benefits expenses   16,257    9,494    25,751    —    25,751 
Material and supplies expenses   4,074    —    4,074    —    4,074 
Disposal expenses   5,317    —    5,317    —    5,317 
Transportation expenses   1,118    —    1,118    —    1,118 
Subcontract expenses   —    7,152    7,152    —    7,152 
Other cost of goods sold (2)   9,297    6,406    15,703    —    15,703 
Total cost of goods sold   36,063    23,052    59,115    —    59,115 
Gross (loss) profit   (1,110)   1,112    2    —    2 
Selling, general and administrative expenses (“SG&A”):                         
Payroll and benefits   2,858    2,413    5,271    3,296    8,567 
Other SG&A (3)   1,432    892    2,324    3,600    5,924 
Total SG&A   4,290    3,305    7,595    6,896    14,491 
Research and development   842    111    953    219    1,172 
Loss on disposal of property and equipment   18    3    21    —    21 
Loss from operations  $(6,260)  $(2,307)  $(8,567)  $(7,115)   (15,682)
Interest income                       921 
Interest expense                       (473)
Interest expense-financing fees                       (66)
Other income                       166 
Loss from continuing operations before taxes                       (15,134)
Income tax expense                       4,435 
Loss from continuing operations, net of taxes                      $(19,569)

 

 

Segment Reporting as of and for the year ended December 31, 2023

 

   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total 
Revenue from external customers  $43,477   $46,258    $89,735(4)(5)  $—   $89,735 
Cost of goods sold:                         
Payroll and benefit expenses   14,655    11,800    26,455    —    26,455 
Material and supplies expenses   3,747    —    3,747    —    3,747 
Disposal expenses   6,576    —    6,576    —    6,576 
Transportation expenses   1,457    —    1,457    —    1,457 
Subcontract expenses   —    15,555    15,555    —    15,555 
Other cost of goods sold (2)   10,166    9,410    19,576    —    19,576 
Total cost of goods sold   36,601    36,765    73,366    —    73,366 
Gross profit   6,876    9,493    16,369    —    16,369 
Selling, general and administrative expenses (“SG&A”):                         
Payroll and benefits   2,438    2,662    5,100    3,812    8,912 
Other SG&A (3)   1,811    834    2,645    3,418    6,063 
Total SG&A   4,249    3,496    7,745    7,230    14,975 
Research and development   418    38    456    105    561 
Loss on disposal of property and equipment   —    77    77    —    77 
Income (loss) from operations  $2,209   $5,882   $8,091   $(7,335)   756 
Interest income                       606 
Interest expense                       (323)
Interest expense-financing fees                       (93)
Other expense                       (11)
Income from continuing operations before taxes                       935 
Income tax expense                       17 
Income from continuing operations, net of taxes                      $918 

 

(1)Amounts reflect the activity for corporate headquarters not included in the segment reporting information.
  
(2)Other cost of goods sold for each reportable segment includes:
Treatment - lab, regulatory, maintenance, depreciation and amortization, travel, outside services and general expenses.
 Services - material and supplies, disposal and transportation, lab, regulatory, maintenance, depreciation and amortization, travel, outside services and general expenses.
  
(3)Other SG&A for each reportable segment and Corporate includes:
 Treatment-depreciation and amortization, travel, outside services, maintenance and general expenses.
 Services- travel, outside services, maintenance and general expenses.
 Corporate-maintenance, depreciation and amortization, travel, public company, outside services and general expenses.
  
(4)The Company performed services relating to waste generated by federal government clients, either directly as a prime contractor or indirectly for others as a subcontractor to federal government entities, representing approximately $40,550,000 or 68.6% of total revenue for 2024 and $68,595,000 or 76.4% of total revenue for 2023.
  
(5)The following table reflects revenue based on customer location:

 

   2024   2023 
United States  $56,665   $87,669 
Canada   513    1,685 
Germany   734    206 
Italy   77     — 
Mexico   394    — 
Slovenia   181    87 
United Kingdom   553    88 
Total  $59,117   $89,735 

 

The following table presents depreciation and amortization for the years ended December 31, (in thousand):

 

   2024   2023 
Treatment  $1,484   $2,112 
Services   177    397 
Total segment   1,661    2,509 
Corporate   102    59 
Total  $1,763   $2,568 

 

The following table presents capital expenditures for the years ended December 31, (net of financed amount of $406 and $784 for 2024 and 2023, respectively (in thousand):

 

   2024   2023 
Treatment  $3,002   $1,696 
Services   403    10 
Total segment   3,405    1,706 
Corporate    —    8 
Total  $3,405   $1,714 

 

The following table presents long-lived assets for the Company’s continuing operations for the years ended December 31, (in thousand):

 

   2024   2023 
United States  $21,133   $19,009 
Foreign Subsidiaries   —    — 
Total  $21,133   $19,009