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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 18

SEGMENT REPORTING

 

In accordance with ASC 280, “Segment Reporting”, we define an operating segment as a business activity:

 

  ● from which we may earn revenue and incur expenses;
  ● whose operating results are regularly reviewed by the CODM to make decisions about resources to be allocated to the segment and assess its performance; and
  ● for which discrete financial information is available.

 

We have three reporting segments, which include Treatment and Services Segments, which are based on a service offering approach; and Medical, whose primary purpose was the R&D of a medical isotope production technology. The Medical Segment had not generated any revenues. During December 2021, the Company made the strategic decision to cease all R&D activities under the Medical Segment which resulted in the sale of 100% of its interest of PFM Poland (see “Note 14 – PF Medical” for a discussion of this transaction). Our reporting segments exclude our corporate headquarter, business center and our discontinued operations (see “Note 9 – Discontinued Operations”) which do not generate revenues.

 

The table below shows certain financial information of our reporting segments as of and for the years ended December 31, 2021 and 2020 (in thousands).

 

Segment Reporting as of and for the year ended December 31, 2021

 

   Treatment   Services   Medical   Segments Total   Corporate (2)   Consolidated Total 
Revenue from external customers  $32,992   $39,199     —   $72,191(3)(4)  $—   $72,191 
Intercompany revenues   1,265    47     —    1,312    —    

—

 
Gross profit    6,718    106    —    6,824    

—

   6,824 
Research and development   221    71    414    706    40    746 
Interest income   1     —    

—

   1    25    26 
Interest expense   (100)   (10)    —    (110)   (137)   (247)
Interest expense-financing fees    —    (1)   

—

   (1)   (40)   (41)
Depreciation and amortization   1,306    353     —    1,659    28    1,687 
Segment income (loss) before income taxes   2,283    (3,044)   (1,476)  (11)(12)   (2,237)   (561)(9)(11)   (2,798)
Income tax (benefit) expense   (150)   (962)   26    (1,086)   (2,804)   (3,890)(10)
Segment income (loss)   2,433    (2,082)   (1,502)   (1,151)   2,243    1,092 
Segment assets(1)   37,050    15,244(8)   48    52,342    24,959(5)   77,301
Expenditures for segment assets (net)   1,363    205     —    1,568    9    1,577(7)
Total debt   25    14     —    39    954    993(6)

 

Segment Reporting as of and for the year ended December 31, 2020

 

   Treatment   Services   Medical   Segments Total   Corporate (2)   Consolidated Total 
Revenue from external customers  $30,143   $75,283     —   $105,426 (3)(4)  $—   $105,426 
Intercompany revenues   1,493    25     —    1,518    —     — 
Gross profit   5,491    10,402     —    15,893     —    15,893 
Research and development   243    132    311    686    76    762 
Interest income   1     —     —    1    139    140 
Interest expense   (115)   (27)    —    (142)   (256)   (398)
Interest expense-financing fees    —     —     —    

—

   (294)  (294)
Depreciation and amortization   1,204    354     —    1,558    38    1,596 
Segment income (loss) before income taxes   1,494    7,826    (311)   9,009    (6,049)   2,960 
Income tax (benefit) expense   (264)   6     —    (258)   69    (189)
Segment income (loss)   1,758    7,820    (311)   9,267    (6,118)   3,149 
Segment assets(1)   32,324    22,368(8)   17    54,709    24,210 (5)   78,919 
Expenditures for segment assets (net)   1,264    451     —    1,715     —    1,715(7)
Total debt    —    23     —    23    6,706    6,729(6)

 

 

(1) Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment.

 

(2) Amounts reflect the activity for corporate headquarters not included in the segment information.

 

(3) The Company performed services relating to waste generated by government clients (domestic and foreign (primarily Canadian)), either directly as a prime contractor or indirectly for others as a subcontractor to government entities, representing approximately 60,812,000 or 84.2% of total revenue for 2021 and 96,582,000 or 91.6% of total revenue for 2020. The following reflects such revenue generated by our two segments:
(4)The following table reflects revenue based on customer location:
(5)Amount includes assets from our discontinued operations of $96,000 and $103,000 at December 31, 2021 and 2020, respectively.
  
(6)Net of debt discount/debt issuance costs of ($112,000) and ($105,000) for 2021 and 2020, respectively (see “Note 10 – “Long-Term Debt” for additional information).
  
(7)Net of financed amount of $585,000 and $883,000 for the year ended December 31, 2021 and 2020, respectively.
  
(8)Includes long-lived asset (net) for our PF Canada, Inc. subsidiary of $25,000 and $33,000 for the year ended December 31, 2021 and 2020, respectively.
  
(9)Amount includes approximately $5,381,000 of “Gain on extinguishment of debt” recorded in connection with the Company’s PPP Loan which was forgiven by the SBA effective June 15, 2021 (see “Note 10 – Long Term Debt – PPP Loan” for information of this loan forgiveness).
  
(10)Includes tax benefit recorded in amount of approximately $2,351,000 resulting from release of valuation allowance on the Company’s deferred tax assets (see “Note 13 Income Taxes” for a discussion of this tax benefit).
  
(11)Includes elimination of gain/loss of $2,537,000 in debt forgiveness between PFM Poland and the Company (see “Note 14 – PF Medical for a discussion of this debt forgiveness.
  
(12)Amount includes a “Loss on deconsolidation of subsidiary” recorded in the amount of approximately $1,062,000 resulting from the sale of PFM Poland (see “Note 14 – PF Medical for a discussion of this loss).

 

   2021   2020 
   Treatment   Services   Total   Treatment   Services   Total 
Domestic government  $22,538   $29,013   $51,551   $22,795   $68,237   $91,032 
Foreign government   577    8,684    9,261    415    5,135    5,550 
Total  $23,115   $37,697   $60,812   $23,210   $73,372   $96,582 

 

 

(4)The following table reflects revenue based on customer location:

 

  

   2021   2020 
United States  $62,257   $99,790 
Canada   9,277    5,550 

Germany

   567    

—

 
United Kingdom   90    86 
Total  $72,191   $105,426 

 

 

(5)Amount includes assets from our discontinued operations of $96,000 and $103,000 at December 31, 2021 and 2020, respectively.
  
(6)Net of debt discount/debt issuance costs of ($112,000) and ($105,000) for 2021 and 2020, respectively (see “Note 10 – “Long-Term Debt” for additional information).
  
(7)Net of financed amount of $585,000 and $883,000 for the year ended December 31, 2021 and 2020, respectively.
  
(8)Includes long-lived asset (net) for our PF Canada, Inc. subsidiary of $25,000 and $33,000 for the year ended December 31, 2021 and 2020, respectively.
  
(9)Amount includes approximately $5,381,000 of “Gain on extinguishment of debt” recorded in connection with the Company’s PPP Loan which was forgiven by the SBA effective June 15, 2021 (see “Note 10 – Long Term Debt – PPP Loan” for information of this loan forgiveness).
  
(10)Includes tax benefit recorded in amount of approximately $2,351,000 resulting from release of valuation allowance on the Company’s deferred tax assets (see “Note 13 Income Taxes” for a discussion of this tax benefit).
  
(11)Includes elimination of gain/loss of $2,537,000 in debt forgiveness between PFM Poland and the Company (see “Note 14 – PF Medical for a discussion of this debt forgiveness.
  
(12)Amount includes a “Loss on deconsolidation of subsidiary” recorded in the amount of approximately $1,062,000 resulting from the sale of PFM Poland (see “Note 14 – PF Medical for a discussion of this loss).