Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

21. SEGMENT INFORMATION

The Company has three operating and reportable segments: Assessment, Permitting and Response, Measurement and Analysis and Remediation and Reuse. These segments are monitored separately by management for performance against budget and prior year and are consistent with internal financial reporting. The Company’s operating segments are organized based upon primary services provided, the nature of the production process, their type of customers, methods used to distribute the products and the nature of the regulatory environment.

Segment Adjusted EBITDA is the primary measure of operating performance for all three operating segments. Segment Adjusted EBITDA is the calculated Company’s Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”), adjusted to exclude certain transactions such as stock-based compensation, acquisition costs and fair value changes in financial instruments, amongst others. The CODM does not review segment assets as a measure of segment performance.

Corporate and Other includes costs associated with general corporate overhead (including executive, legal, finance, safety, human resources, marketing and IT related costs) that are not directly related to supporting operations. Overhead costs that are directly related to supporting operations (such as insurance, software, licenses, shared services and payroll processing costs) are allocated to the operating segments on a basis that reasonably approximates an estimate of the use of these services.

Segment revenues and Segment Adjusted EBITDA for the years ended December 31, consisted of the following:

	2022					2021					2020
	Segment Revenues		Segment Adjusted  EBITDA			Segment Revenues		Segment Adjusted  EBITDA			Segment Revenues		Segment Adjusted  EBITDA
Assessment, Permitting and Response	$	187,234	$	37,458		$	261,865	$	57,128		$	98,521	$	24,208
Measurement and Analysis		172,432		31,588			153,208		31,270			151,557		39,386
Remediation and Reuse		184,750		30,616			131,340		19,326			78,165		8,938
Total Operating Segments		544,416		99,662			546,413		107,724			328,243		72,532
Corporate and Other		—		(31,212	)		—		(30,082	)		—		(18,056	)
Total	$	544,416	$	68,450		$	546,413	$	77,642		$	328,243	$	54,476

Presented below is a reconciliation of the Company’s segment measure to net loss for the years ended December 31:

	2022				2021				2020
Total	$	68,450			$	77,642			$	54,476
Interest expense, net		(5,239	)			(11,615	)			(13,819	)
Income tax expense		(2,250	)			(1,709	)			(851	)
Depreciation and amortization		(47,479	)			(44,810	)			(37,274	)
Stock-based compensation		(43,290	)			(10,321	)			(4,849	)
Start-up losses and investment in new services		(2,277	)			(4,407	)			(2,182	)
Acquisition costs		(1,891	)			(2,088	)			(4,344	)
Fair value changes in financial instruments		3,396				(2,195	)			(20,319	)
Fair value changes in business acquisition    contingencies		3,227				(24,372	)			(12,942	)
Short term purchase accounting fair value    adjustment to deferred revenue		—				—				(243	)
Public offering expense		—				—				(7,657	)
Expenses related to financing transactions		(7	)			(50	)			(378	)
Other losses or expenses		(4,459	)	(1)		(1,400	)	(2)		(7,567	)	(3)
Net loss	$	(31,819	)		$	(25,325	)		$	(57,949	)

(1)Amounts include costs associated with the exiting of the legacy water treatment and biogas operations and maintenance contracts and the Company's start-up lab in Berkley, California, as well as an impairment charge for certain operating lease right-of-use assets (Note 7) and severance costs related to the restructuring within our soil remediation business.

(2)Amounts include non-operational charges incurred due to the remeasurement of finance leases as a result of the adoption of ASC 842 and costs related to the implementation of a new ERP.

(3)During the first quarter of 2020, the Company determined to reduce the footprint of its environmental lab in Berkeley, California, and to exit its non-specialized municipal water engineering service line and its food waste biogas engineering service line. As a part of discontinuing these service lines, the Company made the decision to book an additional bad debt reserve related to the uncertainty around the ability to collect on receivables related to these service lines (Note 4). It was determined that the discontinuation of these service lines did not represent a strategic shift that had (or will have) a major effect on the Company’s operations and financial results therefore did not meet the requirements to be classified as discontinued operations.