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Business Segment and Geographic Financial Data
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Business Segment and Geographic Financial Data
Business Segment and Geographic Financial Data
Business Segment Financial Data
We segregate our financial results into three reportable segments representing three broad technology segments as follows:
•
The Air Pollution Control technology segment includes technologies to reduce NOx emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. These include Low and Ultra Low NOx Burners (LNB and ULNB), Over-Fire Air (OFA) systems, NOxOUT® and HERT™ Selective Non-Catalytic Reduction (SNCR) systems, and Advanced Selective Catalytic Reduction (ASCR™) systems. Our ASCR systems include ULNB, OFA, and SNCR components, along with a downsized SCR catalyst, Ammonia Injection Grid (AIG), and Graduated Straightening Grid GSG™ systems to provide high NOx reductions at significantly lower capital and operating costs than conventional SCR systems. The NOxOUT CASCADE® and NOxOUT-SCR® processes are more basic, using just SNCR and SCR catalyst components. ULTRA™ technology creates ammonia at a plant site using safe urea for use with any SCR application. Flue Gas Conditioning systems are chemical injection systems offered in markets outside the U.S. and Canada to enhance electrostatic precipitator and fabric filter performance in controlling particulate emissions.
•
The FUEL CHEM® technology segment, which uses chemical processes in combination with advanced CFD and CKM boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace using TIFI® Targeted In-Furnace Injection™ technology.
•
The Fuel Conversion segment represents a new business initiative we commenced in 2014. We acquired intellectual property rights and know-how related to the CARBONITE® fuel conversion process and technology. This process can convert coals of various grades into value-added products that are high in energy content, carbon-rich and less pollutive. This technology has a number of potential applications including certain coal replacement, electric arc furnace (EAF) reductant, ferro-alloy feedstock, absorbent and Hg reduced carbon stock. During 2015 and 2016, we have been testing and developing the engineered carbon products for specific markets. We are in the process of evaluating the commercialization of these product offerings with prospective customers and considering alternatives. We have earned no significant revenue other than for test products from perspective customers for the six-month period ended June 30, 2016 and 2015.
The “Other” classification includes those profit and loss items not allocated to either reportable segment. There are no inter-segment sales that require elimination.
We evaluate performance and allocates resources based on reviewing gross margin by reportable segment. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (Note 1 in our annual report on Form 10-K). We do not review assets by reportable segment, but rather, in aggregate for the Company as a whole.
Information about reporting segment net sales and gross margin are provided below:
Three months ended June 30, 2016
 
Air Pollution
Control Segment
 
FUEL CHEM
Segment
 
Fuel Conversion Segment
 
Other
 
Total
Revenues from external customers
 
$
10,031


$
5,144


$
—


$
—


$
15,175

Cost of sales
 
(7,152
)

(2,443
)

—


—


(9,595
)
Gross margin
 
2,879


2,701


—


—


5,580

Selling, general and administrative
 
—


—


—


(6,760
)

(6,760
)
Research and development
 
—


—


(827
)

(295
)

(1,122
)
Operating income (loss)
 
$
2,879


$
2,701


$
(827
)

$
(7,055
)

$
(2,302
)
 
Three months ended June 30, 2015
 
Air Pollution
Control Segment
 
FUEL CHEM
Segment
 
Fuel Conversion Segment
 
Other
 
Total
Revenues from external customers
 
$
11,087


$
7,596


$
—


$
—


$
18,683

Cost of sales
 
(7,769
)

(3,778
)

—


—


(11,547
)
Gross margin
 
3,318


3,818


—


—


7,136

Selling, general and administrative
 
—


—


—


(8,400
)

(8,400
)
Research and development
 
—


—


(629
)

(353
)

(982
)
Operating income (loss)
 
$
3,318


$
3,818


$
(629
)

$
(8,753
)

$
(2,246
)
Six months ended June 30, 2016
 
Air Pollution
Control Segment
 
FUEL CHEM
Segment
 
Fuel Conversion Segment
 
Other
 
Total
Revenues from external customers
 
$
23,021

 
$
9,976

 
$
—

 
$
—

 
$
32,997

Cost of sales
 
(16,471
)
 
(4,898
)
 
—

 
—

 
(21,369
)
Gross margin
 
6,550

 
5,078

 
—

 
—

 
11,628

Selling, general and administrative
 
—

 
—

 
—

 
(14,239
)
 
(14,239
)
Research and development
 
—

 
—

 
(1,514
)
 
(766
)
 
(2,280
)
Operating income (loss)
 
$
6,550

 
$
5,078

 
$
(1,514
)
 
$
(15,005
)
 
$
(4,891
)

Six months ended June 30, 2015
 
Air Pollution
Control Segment
 
FUEL CHEM
Segment
 
Fuel Conversion Segment
 
Other
 
Total
Revenues from external customers
 
$
17,944

 
$
15,842

 
$
—

 
$
—

 
$
33,786

Cost of sales
 
(12,090
)
 
(7,894
)
 
—

 
—

 
(19,984
)
Gross margin
 
5,854

 
7,948

 
—

 
—

 
13,802

Selling, general and administrative
 
—

 
—

 
—

 
(16,603
)
 
(16,603
)
Research and development
 
—

 
—

 
(1,101
)
 
(753
)
 
(1,854
)
Operating income (loss)
 
$
5,854

 
$
7,948

 
$
(1,101
)
 
$
(17,356
)
 
$
(4,655
)





Geographic Segment Financial Data
Information concerning our operations by geographic area is provided below. Revenues are attributed to countries based on the location of the customer. Assets are those directly associated with operations of the geographic area.
 
Three Months Ended 
 June 30,

Six Months Ended 
 June 30,
 
2016

2015

2016

2015
Revenues:







United States
$
12,255


$
11,901


$
26,685


$
24,476

Foreign
2,920


6,782


6,312


9,310


$
15,175


$
18,683


$
32,997


$
33,786


 
 
June 30,
2016
 
December 31,
2015
Assets:
 
 
 
 
United States
 
$
46,093

 
$
47,437

Foreign
 
22,605

 
28,574

 
 
$
68,698

 
$
76,011