v3.25.2
Operating Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Operating Segments
11.

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 Chief Operating Decision Maker (“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 has two reporting segments, consisting of the Treatment and Services Segments, which are primarily based on a service offering approach and defined as follow:

 

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
   
-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 (“D&D”) 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, 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.

 

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 10 – Discontinued Operations”) which do not generate revenues.

 

The Company’s CODM is represented by its chief executive officer and chief operating officer (or “CODM group”). The CODM group 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 group does not evaluate and allocate resources for the reportable segments using assets; therefore, the Company does not disclose assets for its reporting segments.

 

The table below summarizes loss 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 three and six months ended June 30, 2025, and 2024 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 group include payroll and benefit, material and supplies, disposal, transportation and subcontract expenses and are reflected separately, where applicable (in thousands).

 

 Schedule of Segment Reporting Information

Segment Reporting for the Three Months Ended June 30, 2025

 

                          
   Treatment   Services  

Segments

Total

   Corporate (1)  

Consolidated

Total

 
Revenue from external customers  $11,397   $3,189   $14,586   $—   $14,586 
Cost of Goods Sold:                         
Payroll and benefits expenses   4,742    1,874    6,616    —    6,616 
Material and supplies expenses   1,235    —    1,235    —    1,235 
Disposal expenses   1,095    —    1,095    —    1,095 
Transportation expenses   366    —    366    —    366 
Subcontract expenses   —    158    158    —    158 
Other cost of goods sold (2)   2,393    1,176    3,569    —    3,569 
Total cost of goods sold   9,831    3,208    13,039    —    13,039 
Gross profit (loss)   1,566    (19)   1,547    —    1,547 
Selling, general and administrative expenses (“SG&A”):                         
Payroll and benefits   942    647    1,589    940    2,529 
Other SG&A (3)   408    176    584    1,017    1,601 
Total SG&A   1,350    823    2,173    1,957    4,130 
Research and development   232    4    236    76    312 
Gain on disposal of property and equipment   (1)   —    (1)   —    (1)
Loss from operations  $(15)  $(846)  $(861)  $(2,033)   (2,894)
Interest income                       301 
Interest expense                       (124)
Interest expense-financing fees                       (21)
Other income                       155 
Loss from continuing operations before taxes                       (2,583)
Income tax expense                       — 
Loss from continuing operations, net of taxes                      $(2,583)

 

Segment Reporting for the Three Months Ended June 30, 2024

 

                          
   Treatment   Services  

Segments

Total

   Corporate (1)  

Consolidated

Total

 
Revenue from external customers  $8,343   $5,643   $13,986   $—   $13,986 
Cost of goods sold:                         
Payroll and benefit expenses   3,943    1,977    5,920    —    5,920 
Material and supplies expenses   1,078    —    1,078    —    1,078 
Disposal expenses   1,854    —    1,854    —    1,854 
Transportation expenses   217    —    217    —    217 
Subcontract expenses   —    2,554    2,554    —    2,554 
Other cost of goods sold (2)   2,448    1,221    3,669    —    3,669 
Total cost of goods sold   9,540    5,752    15,292    —    15,292 
Gross loss   (1,197)   (109)   (1,306)   —    (1,306)
SG&A:                         
Payroll and benefits   732    501    1,233    835    2,068 
Other SG&A (3)   343    165    508    879    1,387 
Total SG&A   1,075    666    1,741    1,714    3,455 
Research and development   186    24    210    63    273 
Loss on disposal of property and equiment   —    1    1    —    1 
Loss from operations  $(2,458)  $(800)  $(3,258)  $(1,777)   (5,035)
Interest income                       213 
Interest expense                       (109)
Interest expense-financing fees                       (16)
Other income                       1 
Loss from continuing operations before taxes                       (4,946)
Income tax benefit                       (1,161)
Loss from continuing operations, net of taxes                      $(3,785)

 

 

Segment Reporting for the Six Months Ended June 30, 2025

 

                          
   Treatment   Services   Segments Total  

Corporate(1)

  

Consolidated

Total

 
Revenue from external customers  $20,583   $7,922   $28,505   $—   $28,505 
Cost of Goods Sold:                         
Payroll and benefits expenses   9,179    3,887    13,066    —    13,066 
Material and supplies expenses   2,586    —    2,586    —    2,586 
Disposal expenses   1,316    —    1,316    —    1,316 
Transportation expenses   861    —    861    —    861 
Subcontract expenses   —    1,066    1,066    —    1,066 
Other cost of goods sold (2)   4,825    2,581    7,406    —    7,406 
Total cost of goods sold   18,767    7,534    26,301    —    26,301 
Gross profit   1,816    388    2,204    —    2,204 
SG&A:                         
Payroll and benefits   1,815    1,185    3,000    1,871    4,871 
Other SG&A (3)   891    374    1,265    2,009    3,274 
Total SG&A   2,706    1,559    4,265    3,880    8,145 
Research and development   523    27    550    145    695 
Gain on disposal of property and equipment   (1)   (5)   (6)   —    (6)
Loss from operations  $(1,412)  $(1,193)  $(2,605)  $(4,025)   (6,630)
Interest income                       636 
Interest expense                       (236)
Interest expense-financing fees                       (41)
Other income                       188 
Loss from continuing operations before taxes                       (6,083)
Income tax expense                       — 
Loss from continuing operations, net of taxes                      $(6,083)

 

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 
Cost of goods sold:                         
Payroll and benefit expenses   7,695    4,429    12,124    —    12,124 
Material and supplies expenses   1,841    —    1,841    —    1,841 
Disposal expenses   3,423    —    3,423    —    3,423 
Transportation expenses   515    —    515    —    515 
Subcontract expenses   —    4,364    4,364    —    4,364 
Other cost of goods sold (2)   4,827    2,435    7,262    —    7,262 
Total cost of goods sold   18,301    11,228    29,529    —    29,529 
Gross loss   (1,249)   (677)   (1,926)   —    (1,926)
SG&A:                         
Payroll and benefits   1,402    1,156    2,558    1,669    4,227 
Other SG&A (3)   738    302    1,040    1,732    2,772 
Total SG&A   2,140    1,458    3,598    3,401    6,999 
Research and development   404    52    456    113    569 
Loss on disposal of property and equiment   —    1    1    —    1 
Loss from operations  $(3,793)  $(2,188)  $(5,981)  $(3,514)   (9,495)
Interest income                       387 
Interest expense                       (225)
Interest expense-financing fees                       (29)
Other income                       2 
Loss from continuing operations before taxes                       (9,360)
Income tax benefit                       (2,117)
Loss from continuing operations, net of taxes                      $(7,243)

 

(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, repair and maintenance, depreciation and amortization, travel, outside services and general expenses.

Services - material and supplies, disposal, transportation, lab, regulatory, repair and 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, repair and maintenance and general expenses.
Services- travel, outside services, repair and maintenance and general expenses.
Corporate-repair and maintenance, depreciation and amortization, travel, public company, outside services and general expenses.

 

 

The following table presents depreciation and amortization for the three and six months ended June 30, (in thousand):

 Schedule of Depreciation and Amortization

                 
   Three Months Ended   Six Months Ended 
   June 30,   June 30,
   2025   2024   2025   2024 
Treatment  $389   $367   $771   $733 
Services   38    44    81    89 
Total segment   427    411    852    822 
Corporate   10    19    21    40 
Total  $437   $430   $873   $862 

 

The following table presents capital expenditures for the three and six months ended June 30, (in thousand):

 

Schedule of Capital Expenditures

                 
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2025   2024   2025   2024 
Treatment  $893   $457   $1,380   $617 
Services   16    140    52    224 
Total segment   909    597    1,432    841 
Corporate   —    —    —    — 
Total  $909(1)  $597(2)  $1,432(1)  $841(2)

 

(1)Net of financed amount of $0 and $132 for the three and six months ended June 30, 2025, respectively.

 

(2)Net of financed amount of $0 and $44 for the three and six months ended June 30, 2024, respectively.