SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 17

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 two reporting segments, consisting of the Treatment and Services Segments, which are based on a service offering approach. Our reporting segments exclude our corporate headquarter, business center and our discontinued operations (see “Note 8 – 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, 2023, and 2022 (in thousands).

Segment Reporting as of and for the year ended December 31, 2023

	Treatment			Services			Segments Total			Corporate (2)			Consolidated Total
Revenue from external customers	$	43,477		$	46,258		$	89,735	(3)(4)	$	—		$	89,735
Intercompany revenues		290			139			429			—			—
Gross profit		6,876			9,493			16,369			—			16,369
Research and development		418			38			456			105			561
Interest income		—			—			—			606			606
Interest expense		(91	)		(27	)		(118	)		(205	)		(323	)
Interest expense-financing fees		—			—			—			(93	)		(93	)
Depreciation and amortization		2,112			397			2,509			59			2,568
Segment income (loss) before income taxes		2,107			5,854			7,961			(7,026	)		935
Income tax (benefit) expense		(121	)		138			17			—			17
Segment income (loss)		2,228			5,716			7,944			(7,026	)		918
Segment assets (1)		40,470			10,239			50,709			28,040	(5)		78,749	(9)
Expenditures for segment assets (net)		1,696			10			1,706			8			1,714	(7)
Total debt		372			—			372			2,376			2,748	(6)

Segment Reporting as of and for the year ended December 31, 2022

	Treatment			Services			Segments Total			Corporate (2)			Consolidated Total
Revenue from external customers	$	33,358		$	37,241		$	70,599	(3)(4)	$	—		$	70,599
Intercompany revenues		56			213			269			—			—
Gross profit		5,243			4,366			9,609			—			9,609
Research and development		246			23			269			67			336
Interest income		—			—			—			99			99
Interest expense		(74	)		(3	)		(77	)		(98	)		(175	)
Interest expense-financing fees		—			(1	)		(1	)		(60	)		(61	)
Depreciation and amortization		1,710			334			2,044			65			2,109
Segment income (loss) before income taxes		1,531			1,565			3,096			(6,685	)		(3,589	)(8)
Income tax benefit		(236	)		(133	)		(369	)		(9	)		(378	)
Segment income (loss)		1,767			1,698			3,465			(6,676	)		(3,211	)
Segment assets (1)		37,918			8,473			46,391			24,507	(5)		70,898	(9)
Expenditures for segment assets (net)		866			157			1,023			—			1,023	(7)
Total debt		482			5			487			552			1,039	(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), either directly as a prime contractor or indirectly for others as a subcontractor to government entities, representing approximately $70,642,000 or 78.7% of total revenue for 2023 and $59,658,000 or 84.5% of total revenue for 2022. The following reflects such revenue generated by our two segments:

	2023						2022
	Treatment		Services		Total		Treatment		Services		Total
Domestic government	$	31,448	$	39,194	$	70,642	$	23,752	$	35,906	$	59,658

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

	2023		2022
United States	$	87,669	$	69,373
Canada		1,685		406
Germany		206		678
Italy		—		14
Slovenia		87		—
United Kingdom		88		128
Total	$	89,735	$	70,599

(5)	Amount includes assets from our discontinued operations of $94,000 and $96,000 as of December 31, 2023, and 2022, respectively.
(6)	Net of debt issuance costs of ($170,000) and ($88,000) for 2023 and 2022, respectively (see “Note 9 – Long-Term Debt” for additional information).
(7)	Net of financed amount of $784,000 and $114,000 for the year ended December 31, 2023, and 2022, respectively.
(8)	Includes approximately $1,975,000 recorded as other income under the ERC program under the CARES Act, as amended (see “Note 10 –Employee Retention Credit (“ERC”)” for a discussion of this refund amount).
(9)	Includes long-lived assets for continued operations as follows:

	2023		2022
United States	$	19,009	$	18,957
Foreign Subsidiaries		—		—
Total	$	19,009	$	18,957