Note 11 - Business Segment and Geographic Financial Data

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11.     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 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 “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 operations are provided below:

	Air Pollution			FUEL CHEM
Three months ended September 30, 2021	Control Segment			Segment			Other			Total
Revenues from external customers	$	1,944		$	5,615		$	—		$	7,559
Cost of sales		(1,134	)		(2,706	)		—			(3,840	)
Gross margin		810			2,909			—			3,719
Selling, general and administrative		—			—			(2,801	)		(2,801	)
Research and development		—			—			(340	)		(340	)
Operating income (loss) from operations	$	810		$	2,909		$	(3,141	)	$	578

	Air Pollution		FUEL CHEM
Three months ended September 30, 2020	Control Segment		Segment			Other			Total
Revenues from external customers	$	2,886	$	5,269		$	—		$	8,155
Cost of sales		304		(2,553	)		—			(2,249	)
Gross margin		3,190		2,716			—			5,906
Selling, general and administrative		—		—			(3,184	)		(3,184	)
Research and development		—		—			(285	)		(285	)
Operating income (loss) from operations	$	3,190	$	2,716		$	(3,469	)	$	2,437

	Air Pollution			FUEL CHEM
Nine months ended September 30, 2021	Control Segment			Segment			Other			Total
Revenues from external customers	$	3,837		$	13,973		$	—		$	17,810
Cost of sales		(2,172	)		(6,978	)		—			(9,150	)
Gross margin		1,665			6,995			—			8,660
Selling, general and administrative		—			—			(8,858	)		(8,858	)
Research and development		—			—			(1,070	)		(1,070	)
Operating income (loss) from operations	$	1,665		$	6,995		$	(9,928	)	$	(1,268	)

	Air Pollution			FUEL CHEM
Nine months ended September 30, 2020	Control Segment			Segment			Other			Total
Revenues from external customers	$	6,019		$	10,315		$	—		$	16,334
Cost of sales		(2,782	)		(5,517	)		—			(8,299	)
Gross margin		3,237			4,798			—			8,035
Selling, general and administrative		—			—			(9,825	)		(9,825	)
Research and development		—			—			(880	)		(880	)
Operating income (loss) from operations	$	3,237		$	4,798		$	(10,705	)	$	(2,670	)

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				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenues:
United States	$	6,049	$	6,473	$	15,100	$	12,880
Foreign		1,510		1,682		2,710		3,454
	$	7,559	$	8,155	$	17,810	$	16,334

	September 30,		December 31,
	2021		2020
Assets:
United States	$	46,713	$	24,524
Foreign		4,326		5,564
	$	51,039	$	30,088