v3.26.1
SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2025
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 chief operating decision maker (“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 headquarters which serve to support its two reporting segments through various functions, such as our executives, finance, treasury, human resources, accounting, and legal departments. Financial results for our corporate headquarters are not considered by the CODM in evaluating the performance of the reportable segments. Our reporting segments also exclude our discontinued operations (see “Note 8 – Discontinued Operations”) which do not generate revenues.

 

The Company’s CODM is represented by its Chief Executive Officer (“CEO”) and COO (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 income (loss) 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 headquarters and provides reconciliation of such financial metric to the Company’s consolidated totals for the years 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 include payroll and benefit, material and supplies, disposal and transportation and subcontract expenses and are reflected separately, where applicable (in thousands).

 

 

Segment Reporting as of and for the year ended December 31, 2025

 

   Treatment   Services   Segments Total   Corporate (1)   Consolidated Total 
Revenue from external customers  $45,097   $16,577   $61,674(4)(5)  $—   $61,674 
Cost of goods sold:                         
Payroll and benefit expenses   18,810    8,516    27,326    —    27,326 
Material and supplies expenses   6,965    —    6,965    —    6,965 
Disposal expenses   3,195    —    3,195    —    3,195 
Transportation expenses   1,488    —    1,488    —    1,488 
Subcontract expenses   —    1,256    1,256    —    1,256 
Other cost of goods sold (2)   9,845    5,626    15,471    —    15,471 
Total cost of goods sold   40,303    15,398    55,701    —    55,701 
Gross profit   4,794    1,179    5,973    —    5,973 
Selling, general and administrative expenses (“SG&A”):                         
Payroll and benefits   3,571    2,355    5,926    3,854    9,780 
Other SG&A (3)   1,697    861    2,558    4,078    6,636 
Total SG&A   5,268    3,216    8,484    7,932    16,416 
Research and development   969    30    999    292    1,291 
Loss (gain) on disposal of property and equipment   6    (5)   1    —    1 
Loss from operations  $(1,449)  $(2,062)  $(3,511)  $(8,224)   (11,735)
Interest income                       1,123 
Interest expense                       (230)
Interest expense-financing fees                       (84)
Other expense                       261 
Loss from continuing operations before taxes                       (10,665)
Income tax expense                       — 
Loss from continuing operations, net of taxes                      $(10,665)

 

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 
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)

 

(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, outside services/public company and general expenses.

 

(4) Revenue derived from federal government entities, either directly as a prime contractor or indirectly for others as a subcontractor to federal government entities, was approximately $39,243,000 or 63.6% of total revenue for 2025 and $40,550,000 or 68.6% of total revenue for 2024.

 

(5)The following table reflects revenue based on customer location (in thousands):

 SCHEDULE OF REVENUE BASED ON CUSTOMER LOCATION

   2025   2024 
United States  $55,234   $56,665 
Canada   2,820    513 
Germany   774    734 
Italy   389    77 
Mexico   2,144    394 
Slovenia   94    181 
United Kingdom   219    553 
Total  $61,674   $59,117 

 

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

 

   2025   2024 
Treatment  $1,582   $1,484 
Services   133    177 
Total segment   1,715    1,661 
Corporate   44    102 
Total  $1,759   $1,763 

 

The following table presents capital expenditures for the years ended December 31, (net of financed amount of $464,000 and $406,000 for 2025 and 2024, respectively (in thousands):

 

   2025   2024 
Treatment  $4,623   $3,002 
Services   85    403 
Total segment   4,708    3,405 
Corporate   —    — 
Total  $4,708   $3,405 


 

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

 

   2025   2024 
United States  $24,600   $21,133 
Foreign Subsidiaries   —    — 
Total  $24,600   $21,133