Operating Segments

6 Months Ended

Jun. 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.

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 six months ended June 30, 2024, and 2023 (in thousands):

Segment Reporting for the Quarter Ended June 30, 2024

	Treatment			Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	8,343		$	5,643		$	13,986		$	—		$	13,986
Intercompany revenues		9			13			22			—			—
Gross loss		(1,197	)		(109	)		(1,306	)		—			(1,306	)
Research and development		186			24			210			63			273
Interest income		—			—			—			213			213
Interest expense		(33	)		(2	)		(35	)		(74	)		(109	)
Interest expense-financing fees		—			—			—			(16	)		(16	)
Depreciation and amortization		367			44			411			19			430
Segment loss		(1,668	)		(462	)		(2,130	)		(1,655	)		(3,785	)
Expenditures for segment assets		457			140			597			—			597	(2)

Segment Reporting for the Six Months Ended June 30, 2024

	Treatment			Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	17,052		$	10,551		$	27,603		$	—		$	27,603
Intercompany revenues		54			29			83			—			—
Gross loss		(1,249	)		(677	)		(1,926	)		—			(1,926	)
Research and development		404			52			456			113			569
Interest income		—			—			—			387			387
Interest expense		(69	)		(2	)		(71	)		(154	)		(225	)
Interest expense-financing fees		—			—			—			(29	)		(29	)
Depreciation and amortization		733			89			822			40			862
Segment loss		(2,514	)		(1,419	)		(3,933	)		(3,310	)		(7,243	)
Expenditures for segment assets		617			224			841			—			841	(2)

Segment Reporting for the Quarter Ended June 30, 2023

	Treatment			Services		Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	12,834		$	12,198	$	25,032		$	—		$	25,032
Intercompany revenues		26			17		43			—			—
Gross profit		2,491			2,025		4,516			—			4,516
Research and development		91			7		98			23			121
Interest income		—			—		—			172			172
Interest expense		(23	)		—		(23	)		(24	)		(47	)
Interest expense-financing fees		—			—		—			(24	)		(24	)
Depreciation and amortization		589			89		678			14			692
Segment income (loss)		1,273			840		2,113			(1,594	)		519
Expenditures for segment assets		293			5		298			—			298	(3)

Segment Reporting for the Six Months Ended June 30, 2023

	Treatment			Services			Segments Total			Corporate (1)			Consolidated Total
Revenue from external customers	$	22,428		$	22,711		$	45,139		$	—		$	45,139
Intercompany revenues		230			36			266			—			—
Gross profit		3,743			3,782			7,525			—			7,525
Research and development		158			10			168			52			220
Interest income		—			—			—			298			298
Interest expense		(45	)		(1	)		(46	)		(54	)		(100	)
Interest expense-financing fees		—			—			—			(44	)		(44	)
Depreciation and amortization		1,162			249			1,411			28			1,439
Segment income (loss)		1,605			1,813			3,418			(3,216	)		202
Expenditures for segment assets		1,043			4			1,047			—			1,047	(3)

(1)	Amounts reflect the activity for corporate headquarters not included in the segment information.
(2)	Net of financed amount of $0 and $44,000 for the three and six months ended June 30, 2024, respectively.
(3)	Net of financed amount of $107,000 and $157,000 for the three and six months ended June 30, 2023, respectively.