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SEGMENT REPORTING
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Segment Reporting [Abstract]    
SEGMENT REPORTING

NOTE 17 – SEGMENT REPORTING

 

Operating segments are components of an enterprise about which separate financial information is available and is evaluated regularly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its COO as the CODM. Prior to October 31, 2024, the Company operated and reported in two segments: Trucking and Digester.

 

Trucking Segment: The Trucking Segment generates service revenues and incurs expenses by transporting environmental and other waste for customers.

 

Digester Segment: The former Digester Segment, which was sold by the Company on October 31, 2024, primarily generated revenues and incurs expenses through the production and sale of ‘digester’ equipment to customers. The segment also generates revenue through related services such as digester maintenance and software services.

 

 

The Company believes that this structure reflects its current operational and financial management, and that it provides the best structure for the Company to focus on growth opportunities while maintaining financial discipline. The factors used to identify the Trucking and Digester operating segments were the difference in revenue streams and customer base for each segment, the reporting structure for operational and performance information within the Company, and management’s decision to organize the Company around the different revenue generating activities of the segments. Total revenues for each reportable segment are as follows:

 

                 
   Nine Months Ended   Three Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Trucking  $6,991,217   $4,633,015   $3,460,021   $1,855,619 
Digester   1,308,821    935,172    423,084    751,034 
Corporate / Other   -    37    -    - 
Total Company  $8,300,038   $5,568,224   $3,883,105   $2,606,653 

 

Gross profit for each reportable segment was as follows:

 

   2024   2023   2024   2023 
   Nine Months Ended   Three Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Trucking  $246,904   $317,539   $292,653   $182,611 
Digester   880,105    546,955    143,552    461,317 
Corporate / Other   -    (54)   -    - 
Total Company  $1,127,009   $864,440   $436,205   $643,928 

 

Net income (loss) before provision for income taxes for each reportable segment was as follows:

 

   2024   2023   2024   2023 
   Nine Months Ended   Three Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Trucking  $(2,566,098)  $(2,840,419)  $(397,697)  $(1,230,479)
Digester   (10,465,771)   (15,666,486)   (10,521,568)   85,398 
Corporate / Other   (5,135,327)   (123,648,965)   (2,635,018)   (117,442,140)
Total Company  $(18,167,196)  $(142,155,870)  $(13,554,283)  $(118,587,221)

 

Depreciation and amortization for each reportable segment was as follows:

 

   2024   2023   2024   2023 
   Nine Months Ended   Three Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Trucking (1)  $683,210   $368,456   $350,417   $142,145 
Digester   528,967    413,090    177,609    270,845 
Corporate / Other   -    -    -    - 
Total Company  $1,212,177   $781,546   $528,026   $412,990 

 

(1) Depreciation and amortization expense of $631,648 and $334,203 for the nine and three months ended September 30, 2024, respectively, and $316,893 and $124,957 for the nine and three months ended September 30, 2023, respectively, is classified as cost of services on the consolidated statement of operations and included in the Trucking Segment depreciation and amortization because it is information reviewed by the CODM.

 

Total assets and capital expenditures, for each reportable segment was as follows:

 

   Assets   Capital expenditures 
   September 30,   December 31,  

For the nine months

ended September 30,

  

For the three months

ended September 30,

 
   2024   2023   2024   2023   2024   2023 
                         
Trucking  $27,625,323   $8,804,653   $1,060,974   $173,626   $142,629   $- 
Digester   2,375,547    13,122,976    -    -    -    - 
Corporate / Other   194,996    247,845    -    -    -    - 
Total Company  $30,195,866   $22,175,474   $1,060,974   $173,626   $142,629   $- 

 

 

NOTE 19 – SEGMENT REPORTING

 

Operating segments are components of an enterprise about which separate financial information is available and is evaluated regularly by management, namely the Chief Operating Decision Maker (“CODM”) of an organization, in order to determine operating and resource allocation decisions. By this definition, the Company has identified its COO as the CODM. The Company operates and reports in two segments: Trucking and Digester.

 

Trucking Segment: The Trucking Segment generates service revenues and incurs expenses by transporting environmental and other waste for customers.

 

 

Digester Segment: The Digester Segment primarily generates revenues and incurs expenses through the production and sale of ‘digester’ equipment to customers. The segment also generates revenue through related services such as digester maintenance and software services.

 

The Company believes that this structure reflects its current operational and financial management, and that it provides the best structure for the Company to focus on growth opportunities while maintaining financial discipline. The factors used to identify the Trucking and Digester operating segments were the difference in revenue streams and customer base for each segment, the reporting structure for operational and performance information within the Company, and management’s decision to organize the Company around the different revenue generating activities of the segments. Total revenues for each reportable segment is as follows:

 

   Year Ended   Year Ended 
   December 31,   December 31, 
   2023   2022 
   $   $ 
Trucking   6,228,457    4,203,112 
Digester   1,395,992    - 
Corporate / Other   135    - 
Total Company  $7,624,584   $4,203,112 

 

Gross profit (loss) for each reportable segment is as follows:

   Year Ended   Year Ended 
   December 31,   December 31, 
   2023   2022 
   $   $ 
Trucking   322,657    (4,740)
Digester   798,748    - 
Corporate / Other   44    - 
Total Company  $1,121,449   $(4,740)

 

Net loss before provision for income taxes for each reportable segment is as follows:

   Year Ended   Year Ended 
   December 31,   December 31, 
   2023   2022 
   $   $ 
Trucking   (4,152,256)   (658,663)
Digester   (20,303,071)   - 
Corporate / Other   (124,549,722)   - 
Total Company  $(149,005,049)  $(658,663)

 

Total assets, capital expenditures, and depreciation and amortization expense for each reportable segment is as follows:

   Assets   Capital expenditures   Depreciation and amortization (1) 
   As of December 31,   Year Ended December 31,   Year Ended December 31, 
   2023   2022   2023   2022   2023   2022 
                         
Trucking  $8,804,653   $7,407,967   $643,100   $3,349,628   $492,770   $325,382 
Digesters   13,122,976    -    14,345    —    436,684    — 
Corporate / Other   247,845    -    -    —    —    — 
Total Company   22,175,474    7,407,967    657,445    3,349,628    929,454    325,382 

 

(1) Depreciation expense of $424,040 and $325,382 for the year ended December 31, 2023 and 2022, respectively, is classified as cost of revenues on the consolidated income statement and included in the Trucking Segment depreciation and amortization because it is information reviewed by the CODM.