Business Segment and Geographic Financial Data

Business Segment Financial Data

We segregate our financial results into two reportable segments representing two broad technology segments as follows:

•

The Air Pollution Control technology segment includes technologies to reduce NO_x emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. These include Low and Ultra Low NO_x Burners (LNB and ULNB), Over-Fire Air (OFA) systems, NO_xOUT^® 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 NO_x reductions at significantly lower capital and operating costs than conventional SCR systems. The NO_xOUT CASCADE^® and NO_xOUT-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 “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 allocate 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 from continuing operations are provided below:



Three months ended September 30, 2019	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	1,816		$	4,636		$	—		$	6,452
Cost of sales	(1,197		)	(2,366		)	—			(3,563		)
Gross margin	619			2,270			—			2,889
Selling, general and administrative	—			—			(3,822		)	(3,822		)
Research and development	—			—			(352		)	(352		)
Intangible assets abandonment	—			—			(76		)	(76		)
Operating income (loss) from continuing operations	$	619		$	2,270		$	(4,250	)	$	(1,361	)



Three months ended September 30, 2018	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	10,882		$	5,188		$	—		$	16,070
Cost of sales	(8,116		)	(2,538		)	—			(10,654		)
Gross margin	2,766			2,650			—			5,416
Selling, general and administrative	—			—			(4,105		)	(4,105		)
Research and development	—			—			(265		)	(265		)
Operating income (loss) from continuing operations	$	2,766		$	2,650		$	(4,370	)	$	1,046



Nine months ended September 30, 2019	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	12,408		$	13,147		$	—		$	25,555
Cost of sales	(8,061		)	(6,693		)	—			(14,754		)
Gross margin	4,347			6,454			—			10,801
Selling, general and administrative	—			—			(12,735		)	(12,735		)
Restructuring charge	—			—			(625		)	(625		)
Research and development	—			—			(823		)	(823		)
Intangible assets abandonment							(127		)	(127		)
Operating income (loss) from continuing operations	$	4,347		$	6,454		$	(14,310	)	$	(3,509	)



Nine months ended September 30, 2018	Air Pollution Control Segment			FUEL CHEM Segment			Other			Total
Revenues from external customers	$	27,872		$	12,836		$	—		$	40,708
Cost of sales	(20,040		)	(6,505		)	—			(26,545		)
Gross margin	7,832			6,331			—			14,163
Selling, general and administrative	—			—			(13,789		)	(13,789		)
Research and development	—			—			(814		)	(814		)
Intangible assets abandonment	—			—			(317		)	(317		)
Operating income (loss) from continuing operations	$	7,832		$	6,331		$	(14,920	)	$	(757	)

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 September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
Revenues:
United States	5,727	11,629	22,104	30,701
Foreign	725	4,441	3,451	10,007
	6,452	16,070	25,555	40,708



	September 30, 2019		December 31, 2018
Assets:
United States	$	29,437	$	36,784
Foreign	8,442		14,935
	$	37,879	$	51,719