Operating Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Operating Segments

11. Operating Segments

In accordance with ASC 280, “Segment Reporting”, the Company defines an operating segment as a business activity: (1) from which we may earn revenue and incur expenses; (2) whose operating results are regularly reviewed by the chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance; and (3) for which discrete financial information is available.

Our reporting segments are defined as below:

TREATMENT SEGMENT, which includes:

- nuclear, low-level radioactive, mixed waste (containing both hazardous and low-level radioactive constituents), hazardous and non-hazardous waste treatment, processing and disposal services primarily through four uniquely licensed and permitted treatment and storage facilities; and

- R&D activities to identify, develop and implement innovative waste processing techniques for problematic waste streams.

SERVICES SEGMENT, which includes:

- Technical services, which include:

○	professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering;
○	integrated Occupational Safety and Health services including industrial hygiene (“IH”) assessments; hazardous materials surveys, e.g., exposure monitoring; lead and asbestos management/abatement oversight; indoor air quality evaluations; health risk and exposure assessments; health & safety plan/program development, compliance auditing and training services; and Occupational Safety and Health Administration (“OSHA”) citation assistance;
○	global technical services providing consulting, engineering, project management, waste management, environmental, and decontamination and decommissioning field, technical, and management personnel and services to commercial and government customers; and
○	on-site waste management services to commercial and governmental customers.

- Nuclear services, which include:

○	technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal;
○	remediation of nuclear licensed and federal facilities and the remediation cleanup of nuclear legacy sites. Such services capability includes: project investigation; radiological engineering; partial and total plant D&D; facility decontamination, dismantling, demolition, and planning; site restoration; logistics; transportation; and emergency response; and

- A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation.

The Company’s segment also included the Medical Segment in 2021. As previously discussed, the Company made the strategic decision to cease all R&D activities under the Medical Segment and sold 100% of its interest in PFM Poland (which comprised the Medical Segment) in December 2021. The Company’s Medical Segment had not generated any revenue and was involved in the Company’s medical isotope production technology.

Our reporting segments exclude our corporate headquarters and our discontinued operations (see “Note 10 – Discontinued Operations”) which do not generate revenues.

The table below presents certain financial information of our operating segments for the three months ended March 31, 2022 and 2021 (in thousands):

Segment Reporting for the Quarter Ended March 31, 2022

	Treatment			Services			Segments Total			Corporate(1)			Consolidated Total
Revenue from external customers	$	7,479		$	8,436		$	15,915		$	—		$	15,915
Intercompany revenues		111			183			294			—			—
Gross profit		638			998			1,636			—			1,636
Research and development		65			14			79			17			96
Interest income		—			—			—			11			11
Interest expense		(14	)		(1	)		(15	)		(20	)		(35	)
Interest expense-financing fees		—			—			—			(13	)		(13	)
Depreciation and amortization		371			71			442			14			456
Segment (loss) income before income taxes		(481	)		285			(196	)		(1,726	)		(1,922	)
Income tax benefit		(559	)		(114	)		(673	)		—			(673	)
Segment income (loss)		78			399			477			(1,726	)		(1,249	)
Expenditures for segment assets		296			49			345			—			345	(2)

Segment Reporting for the Quarter Ended March 31, 2021

	Treatment			Services			Medical			Segments Total			Corporate(1)			Consolidated Total
Revenue from external customers	$	7,495		$	15,638		$	—		$	23,133		$	—		$	23,133
Intercompany revenues		660			7			—			667			—			—
Gross profit		925			1,431			—			2,356			—			2,356
Research and development		47			13			76			136			14			150
Interest income		—			—			—			—			18			18
Interest expense		(19	)		(8	)		—			(27	)		(40	)		(67	)
Interest expense-financing fees		—			—			—			—			(8	)		(8	)
Depreciation and amortization		310			85			—			395			5			400
Segment (loss) income before income taxes		(119	)		555			(76	)		360			(1,415	)		(1,055	)
Income tax benefit		(17	)		—			—			(17	)		—			(17	)
Segment (loss) income		(102	)		555			(76	)		377			(1,415	)		(1,038	)
Expenditures for segment assets		357			4			—			361			—			361	(2)

(1)	Amounts reflect the activity for corporate headquarters not included in the segment information.
(2)	Net of financed amount of $114,000 and $29,000 for the three months ended March 31, 2022 and 2021, respectively.