Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 06, 2016 | Jun. 30, 2015 | |
Entity Registrant Name | PERMA FIX ENVIRONMENTAL SERVICES INC | ||
Entity Central Index Key | 891,532 | ||
Trading Symbol | pesi | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 11,557,944 | ||
Entity Public Float | $ 40,332 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash | $ 1,435 | $ 3,680 | |
Restricted cash | 99 | 85 | |
Accounts receivable, net of allowance for doubtful accounts of $1,474 and $2,170, respectively | 9,673 | 8,272 | |
Unbilled receivables - current | 4,569 | 7,177 | |
Inventories | 377 | 498 | |
Prepaid and other assets | 4,081 | 3,010 | |
Current assets related to discontinued operations | 34 | 20 | |
Total current assets | 20,268 | 22,742 | |
Property and equipment: | |||
Buildings and land | 20,209 | 20,362 | |
Equipment | 35,191 | 35,434 | |
Vehicles | 422 | 403 | |
Leasehold improvements | 11,626 | 11,613 | |
Office furniture and equipment | 1,755 | 1,799 | |
Construction-in-progress | 497 | 336 | |
69,700 | 69,947 | ||
Less accumulated depreciation | (49,707) | (47,123) | |
Net property and equipment | 19,993 | 22,824 | |
Property and equipment related to discontinued operations | 531 | 681 | |
Intangibles and other long term assets: | |||
Permits | 16,761 | 16,709 | |
Other intangible assets - net | 2,066 | 2,435 | |
Unbilled receivables – non-current | 707 | 273 | |
Finite risk sinking fund | 21,380 | 21,334 | |
Other assets | 1,359 | 1,253 | |
Total assets | [1] | 83,065 | 88,251 |
Current liabilities: | |||
Accounts payable | 6,109 | 5,350 | |
Accrued expenses | 4,341 | 4,540 | |
Disposal/transportation accrual | 1,107 | 1,737 | |
Deferred revenue | 2,631 | 4,873 | |
Current liabilities related to discontinued operations | 531 | 2,137 | |
Current portion of long-term debt | 1,508 | 2,319 | |
Current portion of long-term debt - related party | 950 | 1,414 | |
Total current liabilities | 17,177 | 22,370 | |
Accrued closure costs | 5,301 | 5,508 | |
Other long-term liabilities | 867 | 803 | |
Deferred tax liabilities | 5,424 | 5,006 | |
Long-term liabilities related to discontinued operations | 1,064 | 590 | |
Long-term debt, less current portion | $ 7,530 | 6,690 | |
Long-term debt, less current portion - related party | 949 | ||
Total long-term liabilities | $ 20,186 | 19,546 | |
Total liabilities | $ 37,363 | $ 41,916 | |
Commitments and Contingencies (Note 13) | |||
Series B Preferred Stock of subsidiary, $1.00 par value; 1,467,396 shares authorized, 1,284,730 shares issued and outstanding, liquidation value $1.00 per share plus accrued and unpaid dividends of $867 and $803, respectively | $ 1,285 | $ 1,285 | |
Stockholders' Equity: | |||
Preferred Stock, $.001 par value; 2,000,000 shares authorized, no shares issued and outstanding | |||
Common Stock, $.001 par value; 30,000,000 shares authorized; 11,551,232 and 11,476,485 shares issued, respectively; 11,543,590 and 11,468,843 shares outstanding, respectively | $ 11 | $ 11 | |
Additional paid-in capital | 105,556 | 104,541 | |
Accumulated deficit | (60,808) | (59,758) | |
Accumulated other comprehensive (loss) income | (117) | 11 | |
Less Common Stock in treasury, at cost; 7,642 shares | (88) | (88) | |
Total Perma-Fix Environmental Services, Inc. stockholders' equity | 44,554 | 44,717 | |
Non-controlling interest | (137) | 333 | |
Total stockholders' equity | 44,417 | 45,050 | |
Total liabilities and stockholders' equity | $ 83,065 | $ 88,251 | |
[1] | Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable, net of allowance for doubtful accounts | $ 1,474 | $ 2,170 |
Preferred Stock of subsidiary, par value (in dollars per share) | $ 1 | $ 1 |
Preferred Stock of subsidiary, shares authorized (in shares) | 1,467,396 | 1,467,396 |
Preferred Stock of subsidiary, shares issued (in shares) | 1,284,730 | 1,284,730 |
Preferred Stock of subsidiary, shares outstanding (in shares) | 1,284,730 | 1,284,730 |
Preferred Stock of subsidiary, liquidation value per share (in shares) | 1 | 1 |
Preferred Stock of subsidiary, accrued and unpaid dividends | $ 867 | $ 803 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 11,551,232 | 11,476,485 |
Common stock, shares outstanding (in shares) | 11,543,590 | 11,468,843 |
Common stock in treasury, shares (in shares) | 7,642 | 7,642 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net revenues | $ 62,383,000 | $ 57,065,000 |
Cost of goods sold | 48,032,000 | 45,157,000 |
Gross profit | 14,351,000 | 11,908,000 |
Selling, general and administrative expenses | 10,996,000 | 11,973,000 |
Research and development | $ 2,302,000 | 1,315,000 |
Impairment loss on goodwill | 380,000 | |
Gain on disposal of property and equipment | $ (80,000) | (41,000) |
Income (loss) from operations | 1,133,000 | (1,719,000) |
Other income (expense): | ||
Interest income | 53,000 | 27,000 |
Interest expense | (489,000) | (616,000) |
Interest expense-financing fees | (228,000) | (192,000) |
Foreign currency loss | (10,000) | (24,000) |
Other | 21,000 | (51,000) |
Income (loss) from continuing operations before taxes | 480,000 | (2,575,000) |
Income tax expense | 543,000 | 417,000 |
Loss from continuing operations, net of taxes | (63,000) | (2,992,000) |
(Loss) income from discontinued operations, net of taxes | (1,864,000) | 1,688,000 |
Net loss | (1,927,000) | (1,304,000) |
Net loss attributable to non-controlling interest | 877,000 | 79,000 |
Net loss attributable to Perma-Fix Environmental Services, Inc. common stockholders | $ (1,050,000) | $ (1,225,000) |
Net income (loss) per common share attributable to Perma-Fix Environmental Services, Inc. stockholders - basic and diluted: | ||
Continuing operations (in dollars per share) | $ 0.07 | $ (0.26) |
Discontinued operations (in dollars per share) | (0.16) | 0.15 |
Net loss per common share (in dollars per share) | $ (0.09) | $ (0.11) |
Number of common shares used in computing net income (loss) per share: | ||
Basic (in shares) | 11,516 | 11,443 |
Diluted (in shares) | 11,552 | 11,443 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net loss | $ (1,927) | $ (1,304) |
Foreign currency translation (loss) gain | (128) | 9 |
Total other comprehensive (loss) income | (128) | 9 |
Comprehensive loss | (2,055) | (1,295) |
Comprehensive loss attributable to non-controlling interest | (877) | (79) |
Comprehensive loss attributable to Perma-Fix Environmental Services, Inc. common stockholders | $ (1,178) | $ (1,216) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2013 | 11,406,573 | ||||||
Balance at Dec. 31, 2013 | $ 11 | $ 103,454 | $ (88) | $ 2 | $ (58,533) | $ 44,846 | |
Net loss | $ (79) | (1,225) | (1,304) | ||||
Foreign currency translation | 9 | 9 | |||||
Issuance of stock - Perma-Fix Medical S.A., net of expenses | 776 | 412 | $ 1,188 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,577 | 2,577 | |||||
Issuance of Common Stock upon exercise of options | 7 | $ 7 | |||||
Issuance of Common Stock for services (in shares) | 67,335 | ||||||
Issuance of Common Stock for services | 270 | 270 | |||||
Stock-Based Compensation | 34 | 34 | |||||
Balance (in shares) at Dec. 31, 2014 | 11,476,485 | ||||||
Balance at Dec. 31, 2014 | $ 11 | 104,541 | (88) | 11 | 333 | (59,758) | 45,050 |
Net loss | (877) | (1,050) | (1,927) | ||||
Foreign currency translation | (128) | (128) | |||||
Issuance of stock - Perma-Fix Medical S.A., net of expenses | 631 | 407 | $ 1,038 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,423 | 3,423 | |||||
Issuance of Common Stock upon exercise of options | 10 | $ 10 | |||||
Issuance of Common Stock for services (in shares) | 71,324 | ||||||
Issuance of Common Stock for services | 282 | 282 | |||||
Stock-Based Compensation | 92 | 92 | |||||
Balance (in shares) at Dec. 31, 2015 | 11,551,232 | ||||||
Balance at Dec. 31, 2015 | $ 11 | $ 105,556 | $ (88) | $ (117) | $ (137) | $ (60,808) | $ 44,417 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Additional Paid-in Capital [Member] | ||
Issuance of stock - Perma-Fix Medical S.A., expenses | $ 29 | $ 242 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (1,927,000) | $ (1,304,000) |
Less: (loss) income on discontinued operations, net of taxes | 1,864,000 | (1,688,000) |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | (63,000) | (2,992,000) |
Adjustments to reconcile net income (loss) from continuing operations to cash used in operating activities: | ||
Depreciation and amortization | 3,717,000 | 4,240,000 |
Amortization of debt discount | 87,000 | 86,000 |
Deferred tax expense | 418,000 | 539,000 |
(Recovery of) provision for bad debt reserves | $ (433,000) | 291,000 |
Goodwill, Impairment Loss | 380,000 | |
Gain on disposal of plant, property and equipment | $ (80,000) | (41,000) |
Loss on sale of SYA subsidiary (see Note 8) | 53,000 | |
Issuance of common stock for services | $ 282,000 | 270,000 |
Stock-based compensation | 92,000 | 34,000 |
Changes in operating assets and liabilities of continuing operations: | ||
Accounts receivable | (968,000) | (713,000) |
Unbilled receivables | 2,174,000 | (2,606,000) |
Prepaid expenses, inventories and other assets | 135,000 | 1,149,000 |
Accounts payable, accrued expenses and unearned revenue | (3,657,000) | (29,000) |
Cash provided by continuing operations | 1,704,000 | 661,000 |
Cash used in discontinued operations | (2,862,000) | (2,093,000) |
Cash used in operating activities | (1,158,000) | (1,432,000) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (623,000) | (464,000) |
Proceeds from sale of plant, property and equipment | 127,000 | 133,000 |
Proceeds from sale of SYA subsidiary (see Note 8) | 50,000 | 1,214,000 |
Payments to finite risk sinking fund | (46,000) | (27,000) |
Cash (used in) provided by investing activities of continuing operations | $ (492,000) | 856,000 |
Proceeds from property insurance claims of discontinued operations (see Note 8) | 5,727,000 | |
Cash (used in) provided by investing activities | $ (492,000) | 6,583,000 |
Cash flows from financing activities: | ||
Borrowing on revolving credit | 67,614,000 | 66,644,000 |
Repayments of revolving credit | (65,265,000) | (66,644,000) |
Principal repayments of long term debt | (2,320,000) | (2,463,000) |
Principal repayments of long term debt - related party | (1,500,000) | (500,000) |
Proceeds from issuance of common stock | 10,000 | 7,000 |
Issuance of stock - Perma-Fix Medical S.A., net of expenses of $29 and $242, respectively | 971,000 | 1,187,000 |
Cash used in financing activities of continuing operations | $ (490,000) | (1,769,000) |
Principal repayment of long-term debt for discontinued operations | (35,000) | |
Cash used in financing activities | $ (490,000) | $ (1,804,000) |
Effect of exchange rate changes on cash | (105,000) | |
(Decrease) increase in cash | (2,245,000) | $ 3,347,000 |
Cash at beginning of period | 3,680,000 | 333,000 |
Cash at end of period | 1,435,000 | 3,680,000 |
Supplemental disclosure: | ||
Interest paid | 903,000 | 607,000 |
Income taxes paid | 116,000 | $ 41,000 |
Proceeds from stock subscription for Perma-Fix Medical S.A. held in escrow | $ 67,000 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Proceeds from stock, subscription expenses | $ 29 | $ 242 |
Note 1 - Description of Busines
Note 1 - Description of Business and Basis of Operation | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Perma-Fix Environmental Services, Inc. (the Company, which may be referred to as we, us, or our), an environmental and technology know-how company, is a Delaware corporation, engaged through its subsidiaries, in three reportable segments: 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 - research and development activities to identify, develop and implement innovative waste processing techniques for problematic waste streams. SERVICES SEGMENT, which includes: - On-site waste management services to commercial and governmental customers; - Technical services, which include: o professional radiological measurement and site survey of large government and commercial installations using advanced methods, technology and engineering; o 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; o 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; - Nuclear services, which include: o technology-based services including engineering, decontamination and decommissioning (“D&D”), specialty services and construction, logistics, transportation, processing and disposal; o 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; site construction; logistics; transportation; and emergency response; and - A company owned equipment calibration and maintenance laboratory that services, maintains, calibrates, and sources (i.e., rental) of health physics, IH and customized nuclear, environmental, and occupational safety and health (“NEOSH”) instrumentation. On April 4, 2014, the Company completed the acquisition of a controlling interest in a Polish Company, a publicly traded shell company on the NewConnect (alternative share market run by the Warsaw Stock Exchange) in Poland and sold to the Polish shell all of the shares of Perma-Fix Medical Corporation, a Delaware corporation organized by the Company (incorporated in January 2014). Perma-Fix Medical Corporation’s only asset was a worldwide license granted by the Company to use, develop and market the new process and technology developed by the Company in the production of Technetium-99 (“Tc-99m”) for medical diagnostic applications. Tc-99m is the most widely used medical isotope in the world. Since the acquired shell company (now named Perma-Fix Medical S.A. or “PF Medical”) did not meet the definition of a business under Accounting Standards Codification (“ASC”) 805, “Business Combinations”, the transaction was accounted for as a capital transaction. PF Medical, the Company’s majority-owned Polish subsidiary (which we own approximately 60.5% as of December 31, 2015), continues to perform research and development (“R&D”) of its new medical isotope production technology. As of December 31, 2015, PF Medical has not generated any revenue as it is primarily in the R&D stage. In accordance with ASC 280, “Segment Reporting,” the Company has determined that the operations of PF Medical meet the definition of a reportable segment. Accordingly, all of the historical numbers presented in the consolidated financial statements have been recast to include the operations of PF Medical as a separate reportable segment (“Medical Segment”) . MEDICAL SEGMENT, which includes: R&D of a new medical isotope production technology by our majority-owned Polish subsidiary, PF Medical. The Company’s Medical Segment has not generated any revenue as it continues to be primarily in the R&D stage. All costs incurred by the Medical Segment are reflected within R&D in the accompanying consolidated financial statements.. The Company’s continuing operations consist of Diversified Scientific Services, Inc. (“DSSI”), East Tennessee Materials & Energy Corporation (“M&EC”), Perma-Fix of Florida, Inc. (“PFF”), Perma-Fix of Northwest Richland, Inc. (“PFNWR”), Schreiber, Yonley & Associates (“SYA” which was divested on July 29, 2014), Safety & Ecology Corporation (“SEC”), Perma-Fix Environmental Services UK Limited (“PF UK Limited”), Perma-Fix of Canada, Inc. (“PF Canada”), and PF Medical (a majority-owned Polish subsidiary). The Company’s discontinued operations (see Note 8) consist of all our subsidiaries included in our Industrial Segment which were divested in 2011 and prior, two previously closed locations, and our Perma-Fix of South Georgia, Inc. (“PFSG”) facility which suffered a fire on August 14, 2013 and became non-operational and is closure status. Financial Position and Liquidity The Company achieved improvement in financial position and liquidity in the twelve months ended December 31, 2015 as compared to the corresponding period of 2014. As of December 31, 2015, working capital was approximately $3,091,000, an improvement of $2,719,000 from a working capital of approximately $372,000 as of December 31, 2014. The Company generated a loss from continuing operations of $63,000 as compared to a loss from continuing operations of $2,992,000 in 2014. The Company’s financial results were negatively impacted by certain non-recurring charges incurred in 2015 within discontinued operations (see Note 8 – “Discontinued Operations and Divestitures”). The Company’s cash flow requirements during 2015 were financed primarily by our operations, Credit Facility availability, and an equity raise by PF Medical. The Company is continually reviewing operating costs and is committed to further reducing operating costs to bring them in line with revenue levels, when needed. The Company’s cash flow requirements for 2016 will consist primarily of general working capital needs, scheduled principal payments on our debt obligations and capital leases, remediation projects and planned capital expenditures which we plan to fund from operations and our Credit Facility availability. The Company’s majority-owned Polish subsidiary, PF Medical, continues to dedicate resources to the R&D of the new medical isotope production technology and to take the necessary steps for eventual submittal of this technology for U.S. Food and Drug Administration (“FDA”) and other regulatory approval and commercialization of this technology. The need for capital may require PF Medical to obtain its own credit facility or through additional equity raises by PF Medical. If PF Medical obtains its own separate credit facility, such could result in restrictions on our rights as a majority stock owner. Any equity raises, if successful, would result in dilution of the Company’s ownership of PF Medical. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Our consolidated financial statements include our accounts, those of our wholly-owned subsidiaries, and our majority-owned Polish subsidiary, PF Medical, after elimination of all significant intercompany accounts and transactions. Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. Use of Estimates When the Company prepares financial statements in conformity with accounting standards generally accepted in the United States of America (“US GAAP”), the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as, the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See Notes 8, 11, 12 and 13 for estimates of discontinued operations and environmental liabilities, closure costs, income taxes and contingencies for details on significant estimates. Restricted Cash Restricted cash reflects $35,000 held in escrow for our worker’s compensation policy and proceeds held in escrow resulting from stock subscription agreements executed in connection with the sale of common stock by the Company’s majority-owned Polish subsidiary, PF Medical (see Note 3 - “PF Medical” for further details). Accounts Receivable Accounts receivable are customer obligations due under normal trade terms requiring payment within 30 or 60 days from the invoice date based on the customer type (government, broker, or commercial). The carrying amount of accounts receivable is reduced by an allowance for doubtful accounts, which is a valuation allowance that reflects management's best estimate of the amounts that will not be collected. We regularly review all accounts receivable balances that exceed 60 days from the invoice date and based on an assessment of current credit worthiness, estimate the portion, if any, of the balance that will not be collected. This analysis excludes government related receivables due to our past successful experience in their collectability. Specific accounts that are deemed to be uncollectible are reserved at 100% of their outstanding balance. The remaining balances aged over 60 days have a percentage applied by aging category, based on historical experience that allows us to calculate the total allowance required. Once we have exhausted all options in the collection of a delinquent accounts receivable balance, which includes collection letters, demands for payment, collection agencies and attorneys, the account is deemed uncollectible and subsequently written off. The write off process involves approvals from senior management based on required approval thresholds. The following table set forth the activity in the allowance for doubtful accounts for the years ended December 31, 2015 and 2014 (in thousands): Year Ended December 31, 2015 2014 Allowance for doubtful accounts-beginning of year $ 2,170 $ 1,932 (Recovery of) provision for bad debt reserve (433 ) 291 Write-off (263 ) (53 ) Allowance for doubtful accounts-end of year $ 1,474 $ 2,170 Retainage receivables represent amounts that are billed or billable to our customers, but are retained by the customer until completion of the project or as otherwise specified in the contract. Our retainage receivable balances are all current. Retainage receivables of approximately $229,000 and $11,000 as of December 31, 2015 and 2014, respectively, are included in the accounts receivable balance on the Company’s Consolidated Balance Sheets in the respective periods. Unbilled Receivables Unbilled receivables are generated by differences between invoicing timing and our proportional performance based methodology used for revenue recognition purposes. As major processing and contract completion phases are completed and the costs are incurred, we recognize the corresponding percentage of revenue. Within our Treatment Segment, we experience delays in processing invoices due to the complexity of the documentation that is required for invoicing, as well as the difference between completion of revenue recognition milestones and agreed upon invoicing terms, which results in unbilled receivables. The timing differences occur for several reasons: partially from delays in the final processing of all wastes associated with certain work orders and partially from delays for analytical testing that is required after we have processed waste but prior to our release of waste for disposal. The tasks relating to these delays usually take several months to complete. As we now have historical data to review the timing of these delays, we realize that certain issues, including, but not limited to, delays at our third party disposal site, can extend collection of some of these receivables greater than twelve months. However, our historical experience suggests that a significant portion of unbilled receivables are ultimately collectible with minimal concession on our part. We, therefore, segregate the unbilled receivables between current and long term. Unbilled receivables within our Services Segment can result from: (1) revenue recognized by our Earned Value Management program (a program which integrates project scope, schedule, and cost to provide an objective measure of project progress) but invoice milestones have not yet been met and/or (2) contract claims and pending change orders, including Requests for Equitable Adjustments (“REAs”) when work has been performed and collection of revenue is reasonably assured. Inventories Inventories consist of treatment chemicals, saleable used oils, and certain supplies. Additionally, we have replacement parts in inventory, which are deemed critical to the operating equipment and may also have extended lead times should the part fail and need to be replaced. Inventories are valued at the lower of cost or market with cost determined by the first-in, first-out method. Property and Equipment Property and equipment expenditures are capitalized and depreciated using the straight-line method over the estimated useful lives of the assets for financial statement purposes, while accelerated depreciation methods are principally used for income tax purposes. Generally, asset lives range from ten to forty years for buildings (including improvements and asset retirement costs) and three to seven years for office furniture and equipment, vehicles, and decontamination and processing equipment. Leasehold improvements are capitalized and amortized over the lesser of the term of the lease or the life of the asset. Maintenance and repairs are charged directly to expense as incurred. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts, and any gain or loss from sale or retirement is recognized in the accompanying consolidated statements of operations. Renewals and improvements, which extend the useful lives of the assets, are capitalized. In accordance with ASC 360, “Property, Plant, and Equipment”, long-lived assets, such as property, plant and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Our depreciation expense totaled approximately $3,246,000 and $3,602,000 in 2015 and 2014, respectively. Intangible Assets Intangible assets consist primarily of the recognized value of the permits required to operate our business. We continually monitor the propriety of the carrying amount of our permits to determine whether current events and circumstances warrant adjustments to the carrying value. Indefinite-lived intangible assets are not amortized but are reviewed for impairment annually as of October 1, or when events or changes in the business environment indicate that the carrying value may be impaired. If the fair value of the asset is less than the carrying amount, we perform a quantitative test to determine the fair value. The impairment loss, if any, is measured as the excess of the carrying value of the asset over its fair value. Significant judgments are inherent in these analyses and include assumptions for, among other factors, forecasted revenue, gross margin, growth rate, operating income, timing of expected future cash flows, and the determination of appropriate long term discount rates. We performed impairment testing of our permits related to our Treatment reporting unit as of October 1, 2015 and 2014 and determined there was no impairment. Intangible assets that have definite useful lives are amortized using the straight-line method over the estimated useful lives (with the exception of customer relationships which are amortized using an accelerated method) and are excluded from our annual intangible asset valuation review as of October 1. The Company has one definite-lived permit which was excluded from our annual impairment review as noted above. The net carrying value of this one definite-lived permit as of December 31, 2015 and 2014 was approximately $172,000 and $227,000, respectively. Definite-lived intangible assets are also tested for impairment whenever events or changes in circumstances suggest impairment might exist. Research and Development (“R&D”) Operational innovation and technical know-how is very important to the success of our business. Our goal is to discover, develop, and bring to market innovative ways to process waste that address unmet environmental needs and to develop new company service offerings. The Company conducts research internally and also through collaborations with other third parties. R&D costs consist primarily of employee salaries and benefits, laboratory costs, third party fees, and other related costs associated with the development and enhancement of new potential waste treatment processes and new technology and are charged to expense when incurred in accordance with ASC Topic 730, “Research and Development.” The Company’s R&D expenses included approximately $2,114,000 and $759,000 for the years ended December 31, 2015 and 2014, respectively, incurred by our Medical Segment in the R&D of its medical isotope production technology. Accrued Closure Costs and Asset Retirement Obligations (“ARO”) Accrued closure costs represent our estimated environmental liability to clean up our facilities as required by our permits, in the event of closure. ASC 410, “Asset Retirement and Environmental Obligations” requires that the discounted fair value of a liability for an ARO be recognized in the period in which it is incurred with the associated ARO capitalized as part of the carrying cost of the asset. The recognition of an ARO requires that management make numerous estimates, assumptions and judgments regarding such factors as estimated probabilities, timing of settlements, material and service costs, current technology, laws and regulations, and credit adjusted risk-free rate to be used. This estimate is inflated, using an inflation rate, to the expected time at which the closure will occur, and then discounted back, using a credit adjusted risk free rate, to the present value. ARO’s are included within buildings as part of property and equipment and are depreciated over the estimated useful life of the property. In periods subsequent to initial measurement of the ARO, the Company must recognize period-to-period changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flow. Increases in the ARO liability due to passage of time impact net income as accretion expense, which is included in cost of goods sold. Changes in costs resulting from changes or expansion at the facilities require adjustment to the ARO liability calculated and are capitalized and charged as depreciation expense, in accordance with the Company’s depreciation policy. Income Taxes Income taxes are accounted for in accordance with ASC 740, “Income Taxes.” Under ASC 740, the provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to the temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 requires that deferred income tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company evaluates the realizability of its deferred income tax assets, primarily resulting from impairment loss and net operating loss carryforwards, and adjusts its valuation allowance, if necessary. Once the Company utilizes its net operating loss carryforwards or reverses the related valuation allowance it has recorded on these deferred tax assets, the Company would expect its provision for income tax expense in future periods to reflect an effective tax rate that will be significantly higher than past periods. ASC 740 sets out a consistent framework for preparers to use to determine the appropriate recognition and measurement of uncertain tax positions. ASC 740 uses a two-step approach wherein a tax benefit is recognized if a position is more-likely-than-not to be sustained. The amount of the benefit is then measured to be the highest tax benefit which is greater than 50% likely to be realized. ASC 740 also sets out disclosure requirements to enhance transparency of an entity’s tax reserves. The Company recognizes accrued interest and income tax penalties related to unrecognized tax benefits as a component of income tax expense. The Company reassesses the validity of our conclusions regarding uncertain income tax positions on a quarterly basis to determine if facts or circumstances have arisen that might cause us to change our judgment regarding the likelihood of a tax position’s sustainability under audit. Foreign Currency The Company’s foreign subsidiaries include PF UK Limited, PF Canada and PF Medical. Assets and liabilities are translated to U.S. dollars at the exchange rate in effect at the balance sheet date and revenue and expenses at the average exchange rate for the period. Foreign currency translation adjustments for these subsidiaries are accumulated as a separate component of accumulated other comprehensive income (loss) in stockholders’ equity. Gains and losses resulting from foreign currency transactions are recognized in the consolidated statements of operations. Concentration Risk The Company performed services relating to waste generated by the federal government, either directly as a prime contractor or indirectly for others as a subcontractor to the federal government, representing approximately $36,105,000 or 57.9% of total revenue from continuing operations during 2015, as compared to $34,780,000 or 60.9% of total revenue from continuing operations during 2014. Revenue generated by one of the customers (non-government related and excluded from above) in the Services Segment accounted for 10% or more of the total revenues generated from continuing operations for the twelve months ended December 31, 2015: Total % of Total Customer Year Revenue Revenue Prologis Teterboro, LLC 2015 $ 10,686,000 17.1% As our revenues are project/event based where the completion of one contract with a specific customer may be replaced by another contract with a different customer from year to year, we do not believe the loss of one specific customer from one year to the next will generally have a material adverse effect on our operations and financial condition. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions, which may exceed Federal Deposit Insurance Corporation (“FDIC”) insured amounts from time to time. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States as well as with the significant amount of work that we perform for the federal government as discussed above. The Company has one customer whose net outstanding receivable balance represented 16.2% and 13.8% of the Company’s total consolidated net accounts receivable at December 31, 2015 and 2014, respectively. Gross Receipts Taxes and Other Charges ASC 605-45, “Revenue Recognition – Principal Agent Consideration” provides guidance regarding the accounting and financial statement presentation for certain taxes assessed by a governmental authority. These taxes and surcharges include, among others, universal service fund charges, sales, use, waste, and some excise taxes. In determining whether to include such taxes in its revenue and expenses, the Company assesses, among other things, whether it is the primary obligor or principal taxpayer for the taxes assessed in each jurisdiction where the Company does business. As the Company is merely a collection agent for the government authority in certain of our facilities, the Company records the taxes on a net bases and excludes them from revenue and cost of services. Revenue Recognition Treatment Segment r evenues. Services Segment revenues Under cost reimbursement contracts, the Services Segment is reimbursed for costs incurred plus a certain percentage markup for indirect costs, in accordance with contract provisions. Costs incurred in excess of contract funding may be renegotiated for reimbursement. The Services Segment also earns a fee based on the approved costs to complete the contract. The Services Segment recognizes this fee using the proportion of costs incurred to total estimated contract costs. Contract costs include all direct labor, material and other non-labor costs and those indirect costs related to contract support, such as depreciation, fringe benefits, overhead labor, supplies, tools, repairs and equipment rental. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Self-Insurance Effective May 2015, the Company moved to a fully-insured group health plan. Previously the Company was self-insured for a significant portion of our group health. Under the self-insured group health plan, the Company estimated expected losses based on statistical analyses of historical industry data, as well as our own estimates based on the Company’s actual historical data to determine required self-insurance reserves. The assumptions were closely reviewed, monitored, and adjusted when warranted by changing circumstances. The estimated accruals for these liabilities could have been affected if actual experience related to the number of claims and cost per claim differed from these assumptions and historical trends. No self-insurance reserves were required as of December 31, 2015 as the Company moved to a fully-insured group health plan. Self-insurance reserve was approximately $397,000 as of December 31, 2014 and was included in Accrued expenses in the accompanying consolidated balance sheets. The total amount expensed for self-insurance during 2015 and 2014 were approximately $868,000 and $2,697,000, respectively, for our continuing operations. Monthly group health insurance premium under the fully-insured group health plan is approximately $220,000. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation”. ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards which requires subjective assumptions. Assumptions used to estimate the fair value of stock options granted include the exercise price of the award, the expected term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the expected annual dividend yield. The Company recognizes stock-based compensation expense using a straight-line amortization method over the requisite service period, which is the vesting period of the stock option grant. As ASC 718 requires that stock-based compensation expense be based on options that are ultimately expected to vest, our stock-based compensation expense is reduced by an estimated forfeiture rate. Our estimated forfeiture rate is generally based on historical trends of actual forfeitures. Forfeiture rates are evaluated, and revised as necessary. Comprehensive Income The components of comprehensive income (loss) are net income (loss) and the effects of foreign currency translation adjustments. Earning (Loss) Per Share Basic earning (loss) per share is calculated based on the weighted-average number of outstanding common shares during the applicable period. Diluted earning (loss) per share is based on the weighted-average number of outstanding common shares plus the weighted-average number of potential outstanding common shares. In periods where they are anti-dilutive, such amounts are excluded from the calculations of dilutive earnings per share. Earning (loss) per share is computed separately for each period presented. Fair Value of Financial Instruments Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: Level 1 — Level 2 — Level 3 — Financial instruments include cash and restricted cash (Level 1), accounts receivable, accounts payable, and debt obligations (Level 3). Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. At December 31, 2015 and December 31, 2014, the fair value of the Company’s financial instruments approximated their carrying values. The fair value of the Company’s Revolving Credit Facility approximates its carrying value due to the variable interest rate. The carrying value of our subsidiary's preferred stock is not significantly different than its fair value. Recently Adopted Accounting Standards In June 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-12, “Compensation Stock – Compensation (Topic 718).” ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The adoption of this ASU in the fourth quarter of 2015 did not have an impact on the Company's results of operations, cash flows or financial position. In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis.” ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of this ASU in the fourth quarter of 2015 did not have an impact on the Company's results of operations, cash flows or financial position. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity should apply the amendment prospectively or retrospectively. The Company adopted ASU 2015-17 retrospectively in the fourth quarter of 2015. Balances as of December 31, 2014 were restated to conform with 2015 classification, resulting in a decrease in current deferred tax assets of $385,000 and a decrease in long-term deferred tax liabilities of $385,000. Other than these reclassifications, the adoption of ASU 2015-17 had no impact on the Company’s results of operations and cash flows. Recently Issued Accounting Standards – Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue guidance contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. In July 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The ASU may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is still evaluating the potential impact of adopting this guidance on our financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is still evaluating the potential impact of adopting this guidance on our financial statements. In July 2015, the FASB issued ASU 2015-11, “ In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is still evaluating the potential impact of adopting this guidance on our financial statements. |
Note 3 - PF Medical
Note 3 - PF Medical | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Perma-Fix Medical S.A. [Text Block] | NOTE 3 PF Medical The Company’s subsidiaries include PF Medical, a majority-owned Polish subsidiary acquired in April 2014. PF Medical continues to conduct R&D of its new medical isotope production technology which it plans for eventual commercialization. During August 2014, PF Medical executed stock subscription agreements totaling approximately $2,357,000 for 250,000 shares of its Series E Common Stock to non-U.S. persons in an offshore private placement. In connection with this transaction, PF Medical has received approximately $1,478,000 and $67,000 in proceeds (before deduction for commissions and legal expenses relating to this offering of approximately $242,000) in 2014 and 2015, respectively, for the 250,000 shares. As of December 31, 2015, the $67,000 is being held in an escrow account and is expected to be released from the escrow account during the first quarter of 2016 for payment of certain expenses related to the medical isotope project. The Company has recorded the amount held in escrow as restricted cash on the accompanying Consolidated Balance Sheets as of December 31, 2015. PF Medical has elected to transfer all the rights, title, and interests of the remaining approximately 86,585 unpaid shares back to PF Medical. The unpaid shares to be transferred back to PF Medical will require the termination of the original stock subscription agreements for the 86,585 shares. On July 24, 2015, PF Medical and Digirad Corporation, a Delaware corporation (“Digirad”), Nasdaq: DRAD, entered into a multi-year Tc-99m Supplier Agreement (the “Supplier Agreement”) and a Series F Stock Subscription Agreement (the “Subscription Agreement”), (together, the “Digirad Agreements”). The Supplier Agreement became effective upon the completion of the Subscription Agreement. Pursuant to the terms of the Digirad Agreements, Digirad purchased, in a private placement, 71,429 shares of PF Medical’s restricted Series F Stock for an aggregate purchase price of $1,000,000, which was received on July 24, 2015. As of December 31, 2015, legal expenses incurred for this offering totaled approximately $29,000. The 71,429 share investment made by Digirad constituted approximately 5.4% of the outstanding common shares of PF Medical. As a result of this transaction, the Company’s ownership interest in PF Medical diluted from approximately 64.0% to 60.5%. The Supplier Agreement provides, among other things, that upon PF Medical’s commercialization of certain Tc99m generators, Digirad will purchase agreed upon quantities of Tc-99m for its nuclear imaging operations either directly or in conjunction with its preferred nuclear pharmacy supplier and PF Medical will supply Digirad, or its preferred nuclear pharmacy supplier, with Tc-99m at a preferred pricing, subject to certain conditions. |
Note 4 - Permit and Other Intan
Note 4 - Permit and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE 4 PERMIT AND OTHER INTANGIBLE ASSETS The following table summarizes changes in the carrying amount of permits. No permit exists at our Services Segment. Permit (amount in thousands) Treatment Balance as of December 31, 2013 $ 16,744 PCB permit amortized (1) (55 ) Permit in progress 20 Balance as of December 31, 2014 16,709 PCB permit amortized (1) (55 ) Permit in progress 107 Balance as of December 31, 2015 $ 16,761 (1) The following table summarizes information relating to the Company’s definite-lived intangible assets: December 31, 2015 December 31, 2014 Useful Gross Net Gross Net Lives Carrying Accumulated Carrying Carrying Accumulated Carrying (Years) Amount Amortization Amount Amount Amortization Amount Intangibles (amount in thousands) Patent 8 - 18 $ 539 $ (203 ) $ 336 $ 512 $ (168 ) $ 344 Software 3 395 (364 ) 31 375 (319 ) 56 Customer relationships 12 3,370 (1,671 ) 1,699 3,370 (1,335 ) 2,035 Permit 10 545 (373 ) 172 545 (318 ) 227 Total $ 4,849 $ (2,611 ) $ 2,238 $ 4,802 $ (2,140 ) $ 2,662 The following table summarizes the expected amortization over the next five years for our definite-lived intangible assets (including the one definite-lived permit): Amount Year (In thousands) 2016 $ 412 2017 366 2018 335 2019 256 2020 221 $ 1,590 Amortization expense recorded for definite-lived intangible assets for the Company was approximately $471,000 and $638,000, for the years ended December 31, 2015 and 2014, respectively. As of December 31, 2015 and 2014, the Company has no goodwill. In 2014, the Company recorded an impairment charge of $380,000 in connection with the sale of our SYA subsidiary on July 29, 2014, in accordance with ASC Topic 350 “Intangible – Goodwill and Other” (“ASC 350”). The impairment charges recorded were non-cash in nature and did not affect our liquidity or cash flows from operating activities. Additionally, the goodwill impairment had no effect on our borrowing availability or covenants under our credit facility agreement. |
Note 5 - Capital Stock, Stock P
Note 5 - Capital Stock, Stock Plans, Warrants, and Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 5 CAPITAL STOCK, STOCK PLANS, WARRANTS, AND STOCK BASED COMPENSATION Stock Option Plans The Company adopted the 2003 Outside Directors Stock Plan (the “2003 Plan”), which was approved by our stockholders at the Annual Meeting of Stockholders on July 29, 2003. Options granted under the 2003 Plan generally have a vesting period of six months from the date of grant and a term of 10 years, with an exercise price equal to the closing trade price on the date prior to grant date. The 2003 Plan also provides for the issuance to each outside director a number of shares of Common Stock in lieu of 65% or 100% (based on option elected by each director) of the fee payable to the eligible director for services rendered as a member of the Board of Directors (“Board”). The number of shares issued is determined at 75% of the market value as defined in the plan. The 2003 Plan, as amended, also provides for the grant of an option to purchase up to 6,000 shares of Common Stock for each outside director upon initial election to the Board, and the grant of an option to purchase 2,400 shares of Common Stock upon each re-election. The number of shares of the Company’s Common Stock authorized under the 2003 Plan is 800,000, pursuant to the 2003 Plan, as amended. Effective July 28, 2004, the Company adopted the 2004 Stock Option Plan ( the “2004 Plan”), which was approved by our stockholders at the Annual Meeting of Stockholders on such date. The 2004 Plan provided for the grants of options to selected officers and employees, including any employee who was also a member of the Board of the Company. A maximum of 400,000 shares of our Common Stock were authorized for issuance under this plan in the form of either Incentive Stock Options (“ISO”) or Non-Qualified Stock Options (“NQSOs”). The options granted under the 2004 Plan were exercisable for a period of up to 10 years from the date of grant at an exercise price of not less than market price of the Common Stock at grant date. On July 28, 2014, the 2004 Plan expired. The last options issued under the 2004 Plan prior to the expiration date of the Plan expired on February 26, 2015. On April 28, 2010, the Company adopted the 2010 Stock Option Plan (“2010 Plan”), which was approved by our stockholders at the Company’s Annual Meeting of Stockholders on September 29, 2010. The 2010 Plan authorizes an aggregate grant of 200,000 NQSOs and ISOs to officers and employees of the Company for the purchase of up to 200,000 shares of the Company’s Common Stock. The term of each stock option granted will be fixed by the Compensation and Stock Option Committee (“Compensation Committee”), but no stock options will be exercisable more than ten years after the grant date, or in the case of an incentive stock option granted to a 10% stockholder, five years after the grant date. The exercise price of any ISO granted under the 2010 Plan to an individual who is not a 10% stockholder at the time of the grant will not be less than the fair market value of the shares at the time of the grant, and the exercise price of any incentive stock option granted to a 10% stockholder shall not be less than 110% of the fair market value at the time of grant. The exercise price of any NQSOs granted under the plan will not be less than the fair market value of the shares at the time of grant. No employees exercised options during 2015 and 2014. During 2015, the Company issued a total of 3,423 shares of our Common Stock upon exercise of 3,423 NQSOs by an outside director from the 2003 Plan, at an exercise price of $2.79 per share which resulted in total proceeds of approximately $9,600. During 2014, the Company issued a total of 2,577 shares of our Common Stock upon exercise of 2,577 NQSOs by an outside director from the 2003 Plan, at exercise price of $2.79 per share which resulted in total proceeds of approximately $7,200. The summary of the Company’s total Plans as of December 31, 2015 and 2014, and changes during the period then ended are presented as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (2) Options outstanding January 1, 2015 239,023 $ 7.81 Granted 12,000 4.19 Exercised (3,423 ) 2.79 $ 4,298 Forfeited/Expired (29,400 ) 8.13 Options outstanding End of Period (1) 218,200 $ 7.65 4.8 $ 14,676 Options Exercisable at December 31, 2015 (1) 169,533 $ 8.47 4.5 $ 14,676 Options Vested and expected to be vested at December 31, 2015 212,333 $ 7.72 4.8 $ 14,676 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (2) Options outstanding January 1, 2014 362,800 $ 9.53 Granted 71,800 4.70 Exercised (2,577 ) 2.79 $ 3,705 Forfeited/Expired (193,000 ) 9.95 Options outstanding End of Period (1) 239,023 $ 7.81 4.9 $ 41,957 Options Exercisable at December 31, 2014 (1) 167,223 $ 9.15 4.2 $ 31,037 Options Vested and expected to be vested at December 31, 2014 230,223 $ 7.92 4.9 $ 41,957 (1) Options with exercise prices ranging from $2.79 to $14.75 (2) The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The summary of the Company’s nonvested options as of December 31, 2015 and changes during the period then ended are presented as follows: Shares Weighted Average Grant-Date Fair Value Non-vested options January 1, 2015 71,800 $ 2.85 Granted 12,000 2.84 Vested (35,133 ) 2.81 Non-vested options at December 31, 2015 48,667 $ 2.87 Capital Stock Issued for Services The Company issued a total of 71,324 and 67,335 shares of our Common Stock in 2015 and 2014, respectively, under our 2003 Plan to our outside directors as compensation for serving on our Board. As a member of the Board, each director elects to receive either 65% or 100% of the director’s fee in shares of our Common Stock. The number of shares received is calculated based on 75% of the fair market value of our Common Stock determined on the business day immediately preceding the date that the quarterly fee is due. The balance of each director’s fee, if any, is payable in cash. The Company recorded approximately $269,000 and $273,000 in compensation expense for the twelve months ended December 31, 2015 and 2014, respectively, for the portion of director fees earned in the Company’s Common Stock. Preferred Share Rights Plan In May 2008, the Company adopted a preferred share rights plan (the “Rights Plan”), designed to ensure that all of our stockholders receive fair and equal treatment in the event of a proposed takeover or abusive tender offer. In general, under the terms of the Rights Plan, subject to certain limited exceptions, if a person or group acquires 20% or more of our Common Stock or a tender offer or exchange offer for 20% or more of our Common Stock is announced or commenced, our other stockholders may receive upon exercise of the rights (the “Rights”) issued under the Rights Plan the number of shares our Common Stock or of one-one hundredths of a share of our Series A Junior Participating Preferred Stock, par value $.001 per share, having a value equal to two times the purchase price of the Right. In addition, if the Company is acquired in a merger or other business combination transaction in which we are not the survivor or more than 50% of our assets or earning power is sold or transferred, then each holder of a Right (other than the acquirer) will thereafter have the right to receive, upon exercise, common stock of the acquiring company having a value equal to two times the purchase price of the Right. The initial purchase price of each Right was $13.00, subject to adjustment as defined in plan. The Rights will cause substantial dilution to a person or group that attempts to acquire us on terms not approved by our board of directors. The Rights may be redeemed by us at $0.001 per Right at any time before any person or group acquires 20% or more of our outstanding Common Stock. The Rights expire on May 2, 2018. Warrants and Capital Stock Issuance for Debt As of December 31, 2015, the Company has two Warrants outstanding which provide for the purchase of up to an aggregate of 70,000 shares of the Company’s Common Stock at $2.23 per share. The two Warrants were issued on August 2, 2013, as consideration for a $3,000,000 loan received by the Company from Messrs. William N. Lampson and Robert L. Ferguson (the “Lenders”). Each Warrant provides for the Lender to purchase up to 35,000 shares of the Company’s Common Stock at an exercise price of $2.23 per share. The Warrants are exercisable six months from August 2, 2013 and expire on August 2, 2016. These Warrants are still outstanding at December 31, 2015. The Company also issued 90,000 shares of the Company’s Common Stock to the Lenders. See Note 9 – “Long-Term Debt – Promissory Note and Installment Agreement” for further information and accounting treatment of the Warrants and Common Stock. Shares Reserved At December 31, 2015, the Company has reserved approximately 288,200 shares of Common Stock for future issuance under all of the option and warrant arrangements. Stock Based Compensation As discussed above, the Company has certain stock option plans which it awards NQSOs and ISOs to employees, officers, and outside directors. Stock options granted to employees generally have a six year contractual term with one-third yearly vesting over a three year period. Stock options granted to outside directors generally have a ten year contractual term with vesting period of six months. On September 17, 2015, the Company granted an aggregate of 12,000 NQSOs from the Company’s 2003 Plan to five of the seven re-elected directors at our Annual Meeting of Stockholders held on September 17, 2015. Two of the directors are not eligible to receive options under the 2003 Plan as they are employees of the Company or its subsidiaries. Dr. Centofanti is the Company’s Chief Executive Officer (“CEO”) and Mr. John Climaco is an Executive Vice President (“EVP”) of PF Medical (effective June 2, 2015), the Company’s majority-owned Polish subsidiary. The NQSOs granted were for a contractual term of ten years with a vesting period of six months. The exercise price of the NQSOs was $4.19 per share, which was equal to the Company’s closing stock price the day preceding the grant date, pursuant to the 2003 Plan. The Company estimates fair value of stock options using the Black-Scholes valuation model. Assumptions used to estimate the fair value of stock options granted include the exercise price of the award, the expected term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the expected annual dividend yield. The fair value of the options granted during 2015 and 2014 and the related assumptions used in the Black-Scholes option model used to value the options granted were as follows (No options were granted to employees during 2015): Outside Director Stock Options Granted For Year Ended 2015 2014 Weighted-average fair value per share $ 2.84 $ 2.73 Risk -free interest rate (1) 2.21 % 2.63 % Expected volatility of stock (2) 57.98 % 59.59 % Dividend yield None None Expected option life (3) 10.0 10.0 Employee Stock Option Granted For Year Ended 2014 Weighted-average fair value per share $ 2.88 Risk -free interest rate (1) 1.91% Expected volatility of stock (2) 61.84% Dividend yield None Expected option life (3) 6.0 (1) The risk-free interest rate is based on the U.S. Treasury yield in effect at the grant date over the expected term of the option. (2) The expected volatility is based on historical volatility from our traded Common Stock over the expected term of the option. (3 ) The following table summarizes stock-based compensation recognized for the fiscal year 2015 and 2014. Year Ended 2015 2014 Employee Stock Options $ 53,000 $ (14,000 ) Director Stock Options 39,000 48,000 Total $ 92,000 $ 34,000 The Company recognizes stock-based compensation expense using a straight-line amortization method over the requisite service period, which is the vesting period of the stock option grant. ASC 718, “Compensation – Stock Compensation” requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has generally estimated forfeiture rates based on historical trends of actual forfeitures. When actual forfeitures vary from our estimates, the Company recognizes the difference in compensation expense in the period the actual forfeitures occur or when options vest. The total stock-based compensation expense for the twelve months ended December 31, 2014 included a reduction in expense of approximately $54,000 resulting from the forfeiture of options by Mr. Jim Blankenhorn, our previous Chief Operating Officer (“COO”), who voluntarily resigned from the Company effective March 28, 2014. The COO was granted an option from the Company’s 2010 Plan on July 25, 2011, to purchase up to 60,000 shares of the Company’s Common Stock at $7.85 per share. The options had a six year contractual term with one-third yearly vesting over a three year period. As of December 31, 2015, the Company has approximately $86,000 of total unrecognized compensation cost related to unvested options, of which $67,000 is expected to be recognized in 2016, with the remaining $19,000 in 2017. |
Note 6 - Income (Loss) Per Shar
Note 6 - Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 6 INCOME (LOSS) PER SHARE The following table reconciles the income (loss) and average share amounts used to compute both basic and diluted income (loss) per share: Twelve Months Ended December 31, (Unaudited) (Amounts in Thousands, Except for Per Share Amounts) 2015 2014 Net income (loss) attributable to Perma-Fix Environmental Services, Inc., common stockholders: Income (loss) from continuing operations attributable to Perma-Fix Environmental Services, Inc. common stockholders $ 814 $ (2,913 ) Income (loss) from discontinuing operations attributable to Perma-Fix Environmental Services, Inc. common stockholders (1,864 ) 1,688 Net loss attributable to Perma-Fix Environmental Services, Inc. common stockholders $ (1,050 ) $ (1,225 ) Basic loss per share attributable to Perma-Fix Environmental Services, Inc. common stockholders $ (.09 ) $ (.11 ) Diluted loss per share attributable to Perma-Fix Environmental Services, Inc. common stockholders $ (.09 ) $ (.11 ) Weighted average shares outstanding: Basic weighted average shares outstanding 11,516 11,443 Add: dilutive effect of stock options 6 — Add: dilutive effect of warrants 30 — Diluted weighted average shares outstanding 11,552 11,443 Potential shares excluded from above weighted average share calcualtions due to their anti-dilutive effect include: Stock options 183 201 |
Note 7 - Preferred Stock Issuan
Note 7 - Preferred Stock Issuance and Conversion | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | NOTE 7 PREFERRED STOCK ISSUANCE AND CONVERSION Series B Preferred Stock The Series B Preferred Stock is non-voting and non-convertible, has a $1.00 liquidation preference per share and may be redeemed at the option of the former stockholders of M&EC at any time for the per share price of $1.00. The holders of the Series B Preferred Stock will be entitled to receive when, as, and if declared by the Board of Directors of M&EC out of legally available funds, dividends at the rate of 5% per year per share applied to the amount of $1.00 per share, which shall be fully cumulative. We began accruing dividends for the Series B Preferred Stock in July 2002, and have accrued a total of approximately $867,000 since July 2002, of which $64,000 was accrued in each of the years ended December 31, 2003 to 2015 and is included within Other long term liabilities of the Consolidated Balance Sheet. |
Note 8 - Discontinued Operation
Note 8 - Discontinued Operations and Divestitures | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 8 DISCONTINUED OPERATIONS AND DIVESTITURES Discontinued Operations The Company’s discontinued operations consist of all our subsidiaries included in our Industrial Segment: (1) subsidiaries divested in 2011 and prior, (2) two previously closed locations, and (3) our PFSG facility which suffered a fire and explosion on August 14, 2013 and is currently undergoing regulatory closure. The Company carried general liability, pollution, property and business interruption, and workers compensation insurance with a maximum deductible of approximately $300,000. In June 2014, the Company entered into a settlement agreement and release with one of its insurance carriers, resulting in receipt of approximately $3,850,000 in insurance settlement proceeds, which was used for working capital purposes. The Company subsequently recorded a gain on insurance settlement of approximately $3,842,000 in connection with the fire and explosion at our PFSG facility. In 2014, the Company also recorded approximately $723,000 of asset impairment charges as result of the Company’s decision not to rebuild PFSG in accordance with ASC 360. On May 11, 2015, PFSG received a Notice of Violation and proposed Consent Order (“CO”) from the Georgia Department of Natural Resources Environmental Protection Division (“GAEPD”), which alleged certain violations (resulting from the fire and explosion in 2013 and prior inspections of the facility) of Georgia hazardous waste management regulations and PFSG hazardous waste management permit. The proposed CO also established the process for formally closing the PFSG hazardous waste management facilities, should PFSG elect to do so; and proposed the assessment of a civil penalty. The final terms of the CO, including a $201,200 civil penalty, were executed on July 1, 2015. The civil penalty was paid by the Company and recorded during the second quarter of 2015. On August 28, 2015, the Company notified GAEPD its intent to close the PFSG facility; and on September 29, 2015, the Company submitted a draft Post-Closure Plan for review and approval by the GAEPD. On June 4, 2015, the Perma-Fix of Michigan, Inc. (“PFMI”) entered into a letter of intent (“LOI”) to sell the property PFMI formerly operated for a sale price of approximately $450,000. PFMI is a closed location. As required by ASC 360, the Company concluded that asset impairment existed for PFMI and recorded approximately $150,000 in an asset impairment charge in the second quarter of 2015. On September 29, 2015, PFMI entered into a Purchase Agreement (the “Agreement”) for the sale of the property for a sales price of $450,000, which is subject to completion of a due diligence by the buyer during the first quarter of 2016, as amended. Upon execution of the Agreement, PFMI received a $20,000 deposit which is being held in an escrow account (recorded as restricted cash within discontinued operations) (see Note 17 - “Subsequent Event – PFMI” for further information of this Agreement). During the fourth quarter of 2015, an arbitrator ordered the Company to pay approximately $1,278,000 to a contractor hired by the Company to perform emergency response services at our PFSG subsidiary resulting from the fire and explosion in 2013. As discussed above, PFSG is currently undergoing regulatory closure, subject to state and federal environmental permitting requirements. In arbitration, the contractor had sought payment of unpaid invoices totaling approximately $1,400,000 (which included interest of approximately $600,000) and contract penalties totaling approximately $800,000. In addition, the contractor claimed approximately $500,000 in attorney’s fees. On December 7, 2015, the Company was notified of the following Arbitrator’s award totaling approximately $1,278,000, which was paid on December 31, 2015: (a) $747,000 for unpaid invoices; (b) interest of $400,000; (c) attorney fees of $125,000; and (d) $6,000 in certain administrative fees in connection with the arbitration. The Company had previously accrued approximately $871,000 for this matter. The remaining charge of approximately $407,000 was recorded by the Company in 2015 (in the fourth quarter of 2015, with $400,000 recorded as interest expense. The following table summarizes the results of discontinued operations for the years ended December 31, 2015 and 2014. For The Year Ended December 31, Amount in Thousands 2015 2014 Interest expense $ (401 ) $ (6 ) Operating (loss) income from discontinued operations (1,915 ) (2,108 ) Gain on insurance settlement of discontinued operations — 3,842 Income tax (benefit) expense (51 ) 46 (Loss) income from discontinued operations (1,864 ) 1,688 The following table presents the major class of assets of discontinued operations that are classified as held for sale as of December 31, 2015 and December 31, 2014. The held for sale assets may differ at the closing of a sale transaction from the reported balances as of December 31, 2015. December 31, December 31, (Amounts in Thousands) 2015 2014 Property $ 450 $ 600 Total assets held for sale $ 450 $ 600 The following table presents the major classes of assets and liabilities of discontinued operations that are not held for sale as of December 31, 2015 and December 31, 2014: December 31, December 31, (Amounts in Thousands) 2015 2014 Current assets Other assets $ 34 20 Total current assets 34 20 Long-term assets Property, plant and equipment, net (1) 81 81 Total long-term assets 81 81 Total assets not held for sale $ 115 $ 101 Current liabilities Accounts payable $ 85 $ 947 Accrued expenses and other liabilities 437 462 Environmental liabilities 9 728 Total current liabilities 531 2,137 Long-term liabilities Closure liabilities 173 302 Environmental liabilities 891 288 Total long-term liabilities 1,064 590 Total liabilities not held for sale $ 1,595 $ 2,727 (1) Environmental Liabilities The Company has three remediation projects, which are currently in progress at our Perma-Fix of Dayton, Inc. (“PFD”), Perma-Fix of Memphis, Inc. (“PFM” – closed location), and PFSG (in closure status) subsidiaries. The Company divested PFD in 2008; however, the environmental liability of PFD was retained by the Company upon the divestiture of PFD. These remediation projects principally entail the removal/remediation of contaminated soil and, in most cases, the remediation of surrounding ground water. Remediation activities at our Perma-Fix of Michigan, Inc. subsidiary (“PFMI” – closed location) in Brownstown, Michigan, were completed in 2015. The remediation activities are closely reviewed and monitored by the applicable state regulators. At December 31, 2015, we had total accrued environmental remediation liabilities of $900,000, of which $9,000 is recorded as a current liability, which reflects a decrease of $116,000 from the December 31, 2014 balance of $1,016,000. The net decrease of $116,000 represents payments on remediation projects at PFSG and PFM totaling approximately $78,000 and a decrease in reserve of $38,000 due to completion of remediation activities at our PFMI location. The December 31, 2015 current and long-term accrued environmental liability at December 31, 2015 is summarized as follows (in thousands). Current Long-term Accrual Accrual Total PFD $ 9 $ 60 $ 69 PFM — 15 15 PFSG — 816 816 Total liability $ 9 $ 891 $ 900 Divestiture of SYA On July 29, 2014, the Company completed the sale of its wholly-owned subsidiary, SYA. SYA was a professional engineering and environmental consulting services company and was included in the Company’s Services Segment. In accordance with ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity”, the divestiture of SYA was reported in continuing operations for all periods presented. T he purchaser of SYA paid approximately $1,300,000 for 100% of the capital stock and $60,000 as an adjustment to the purchase price for excess working capital with $50,000 of such consideration placed in escrow for a period of one year to cover any claims by the purchaser for indemnification for certain limited types of losses incurred by the purchaser following the closing. The $50,000 was recorded as restricted cash on the Company’s Consolidated Balance Sheets. The proceeds received were used to pay down our revolver and used for working capital. Expense related to the sale of SYA totaled approximately $96,000. The Company recorded a loss on the sale of SYA of approximately $53,000 (net of taxes of $0), which included a final excess working capital adjustment of approximately $42,000. The loss on the sale of $53,000 was included in “other” expense on our Consolidated Statements of Operations. On August 4, 2015, the Company received the $50,000 which had been placed in escrow as discussed above. |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 9 LONG-TERM DEBT Long-term debt consists of the following at December 31, 2015 and 2014: (Amounts in Thousands) December 31, 2015 December 31, 2014 Revolving Credit receivables, subject to monthly borrowing base calculation, variable interest paid monthly at option of prime rate (3.50% at December 31, 2015) plus 2.0% or London Interbank Offer Rate ("LIBOR") plus 3.0%, balance due October 31, 2016. Effective interest rate for 2015 and 2014 was 4.0% and 4.1%, respectively. (1) $ 2,349 (3) $ — Term Loan $190, balance due on October 31, 2016, variable interest paid monthly at option of prime rate plus 2.5% or LIBOR plus 3.5%. Effective interest rate for 2015 and 2014 was 3.7% and 3.7%, respectively. (1) 6,666 (3) 8,952 Promissory Note only, starting September 1, 2013 followed with twenty-four monthly installments of $125 in principal plus accrued interest. Interest accrues at annual rate of 2.99%. (2) (4) 950 2,363 Promissory Note includes interest and principal, starting February 28, 2013, interest accrues at annual rate of 6.0%, paid in full on January 30, 2015. (2) — 10 Capital lease ( 23 47 9,988 11,372 Less current portion of long-term debt 2,458 3,733 $ 7,530 $ 7,639 (1) (2) (3 ) ( 4 ) Revolving Credit and Term Loan Agreement The Company entered into an Amended and Restated Revolving Credit, Term Loan and Security Agreement, dated October 31, 2011 (“Loan Agreement”), with PNC, acting as agent and lender. The Loan Agreement, as amended (“Amended Loan Agreement”) provides the Company with the following Credit Facility: (a) up to $12,000,000 revolving credit (“Revolving Credit”), subject to the amount of borrowings based on a percentage of eligible receivables (as defined) and (b) a term loan (“Term Loan”) of $16,000,000, which requires monthly installments of approximately $190,000 (based on a seven-year amortization). As of December 31, 2015, the availability under the Company’s Revolving Credit was approximately $2,687,000, based on our eligible receivables and was net of an indefinite reduction of borrowing availability of $1,500,000. The Amended Loan Agreement authorized the Company to use the $3,850,000 insurance settlement proceeds received on June 30, 2014 by our PFSG subsidiary (which suffered a fire and explosion on August 14, 2013 and is included within our discontinued operations) for working capital purposes but placed an indefinite reduction on our borrowing availability by the $1,500,000 as discussed above. The Company’s Credit Facility with PNC contains certain financial covenants, along with customary representations and warranties. A breach of any of these financial covenants, unless waived by PNC, could result in a default under our Credit Facility allowing our lender to immediately require the repayment of all outstanding debt under our Credit Facility and terminate all commitments to extend further credit. The Company’s Amended Loan Agreement prohibits us to declare, pay, or make any dividend distribution on any shares of our Common Stock or Preferred Stock. The Company met its quarterly fixed charge coverage ratio and minimum tangible adjusted net worth requirements in each of the quarters in 2015. Promissory Notes and Installment Agreements On February 12, 2013, the Company entered into an unsecured promissory note (“the new note”) with Timios National Corporation (“TNC”) in the principal amount of approximately $230,000 as a result of a settlement with TNC in connection with certain claims that the Company asserted against TNC for breach of certain representations and covenant subsequent to our acquisition of SEC from TNC on October 31, 2011. The new note was entered into as a result of the settlement in which a previously issued promissory note that the Company entered into with TNC as partial consideration of the purchase price of SEC was cancelled and terminated and replaced with the new note. Final payment of approximately $10,000 on this note was made in January 2015. On August 2, 2013, the Company completed a lending transaction with Messrs. Robert Ferguson and William Lampson (“collectively, the “Lenders”), whereby the Company borrowed from the Lenders the sum of $3,000,000 (the “Loan”) (See payment terms of this promissory note in the table above). The Lenders are stockholders of the Company, having received shares of our Common Stock in connection with the acquisition of our PFNWR subsidiary in June 2007. The proceeds from the Loan were used for general working capital purposes. In connection with this Loan, the Lenders entered into a Subordination Agreement with the Company’s Credit Facility lender, whereby the Lenders agreed to subordinate payment under the Loan, and agreed that the Loan will be junior in right of payment to the Credit Facility in the event of default or bankruptcy or other insolvency proceeding by the Company. As consideration for the Company receiving the Loan, the Company issued a Warrant to each Lender to purchase up to 35,000 shares of the Company’s Common Stock at an exercise price of $2.23 per share, which was based on the closing price of the Company’s Common Stock at the closing of the transaction. The Warrants are exercisable six months from August 2, 2013 and expire on August 2, 2016. The fair value of the Warrants was estimated to be approximately $59,000 using the Black-Scholes option pricing model with the following assumptions: 55.54% volatility, risk free interest rate of .59%, an expected life of three years and no dividends. As further consideration for the Loan, the Company also issued an aggregate 90,000 shares of the Company’s Common Stock, with each Lender receiving 45,000 shares. The Company determined the fair value of the 90,000 shares of Common Stock to be approximately $200,000 which was based on the closing price of the stock of $2.23 per share on August 2, 2013. The fair value of the Warrants and Common Stock and the related closing fees incurred from the transaction were recorded as a debt discount, which is being amortized using the effective interest method over the term of the loan as interest expense – financing fees. Mr. Robert Ferguson serves as an advisor to the Company’s Board of Directors (see Note 15 – “Related Party Transaction – Mr. Robert Ferguson” for further information on Mr. Ferguson). In the event of default of the promissory note by the Company, the Lenders have the option to receive a cash payment equal to the amount of the unpaid principal balance plus all accrued and unpaid interest (“Payoff Amount”), or the number of whole shares of the Company’s Common Stock equal to the Payoff Amount divided by the closing bid price of the Company’s Common Stock on the date immediately prior to the date of default of the promissory note, as reported by the primary national securities exchange on which the Company’s Common Stock is traded. The maximum number of payoff shares is restricted to less than 20% of the outstanding equity. The following table details the amount of the maturities of long-term debt maturing in future years as of December 31, 2015 of our continuing operations (excludes debt discount of $50,000). See footnote (3) above regarding the classification of the Company’s outstanding debt under our Amended Loan Agreement as current and long-term. Year ending December 31: (In thousands) 2016 $ 2,508 Beyond 2016 7,530 Total $ 10,038 |
Note 10 - Accrued Expenses
Note 10 - Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOT E 10 ACCRUED EXPENSES Accrued expenses at December 31 include the following (in thousands): 2015 2014 Salaries and employee benefits $ 2,822 $ 2,935 Accrued sales, property and other tax 202 410 Interest payable 9 22 Insurance payable 833 546 Other 475 627 Total accrued expenses $ 4,341 $ 4,540 The Company has an individual Management Incentive Plan (“MIP”) for each of our CEO, Chief Financial Officer (“CFO”) and COO, which awards cash compensation based on achievement of certain performance targets for fiscal year 2015. A total of approximately $214,000 (included in “salaries and employee benefits”) was accrued under the three MIPs for 2015. Such amounts are expected to be paid during the second quarter of 2016. No performance incentive payments were made under any of the MIPs in 2014. |
Note 11 - Accrued Closure Costs
Note 11 - Accrued Closure Costs and ARO | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 11 ACCRUED CLOSURE COSTS AND ARO Accrued closure costs represent our estimated environmental liability to clean up our fixed-based regulated facilities as required by our permits, in the event of closure. Changes to reported closure liabilities for the years ended December 31, 2015 and 2014, were as follows: Amounts in thousands Balance as of December 31, 2013 $ 5,222 Accretion expense 286 Balance as of December 31, 2014 5,508 Accretion expense 299 Payments (331 ) Adjustment to closure liability (175 ) Balance as of December 31, 2015 $ 5,301 The decreases in closure liabilities in 2015 included approximately $331,000 of costs incurred in connection with the closure of processing unit/equipment at our PFNWR facility and a reduction of approximately $175,000 in closure liabilities at our PFNWR facility resulting from a change in estimated closure costs. The reported closure asset or ARO, is reported as a component of “Net Property and equipment” in the Consolidated Balance Sheet for the years ended December 31, 2015 and 2014 as follows: Amounts in thousands Balance as of December 31, 2013 $ 2,961 Amortization of closure and post-closure asset (91 ) Balance as of December 31, 2014 2,870 Amortization of closure and post-closure asset (152 ) Adjustment to closure and post-closure asset (143 ) Balance as of December 31, 2015 $ 2,575 The adjustment to the ARO for 2015 was due to the adjustment made to our closure liability as discussed above. |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 1 2 INCOME TAXES The components of current and deferred federal and state income tax expense (benefit) for continuing operations for the years ended December 31, consisted of the following (in thousands): 2015 2014 Federal income tax expense (benefit) - current $ 116 $ (121 ) Federal income tax expense - deferred 142 530 State income tax expense (benefit) - current 9 (1 ) State income tax expense - deferred 276 9 Total income tax expense $ 543 $ 417 We had temporary differences and net operating loss carry forwards from both our continuing and discontinued operations, which gave rise to deferred tax assets and liabilities at December 31, 2015 and 2014 as follows (in thousands): Deferred tax assets: 2015 2014 Net operating losses $ 4,566 $ 4,611 Environmental and closure reserves 2,497 2,520 Other 2,800 3,129 Deferred tax liabilities: Depreciation and amortization (1,130 ) (2,322 ) Goodwill and indefinite lived intangible assets (5,443 ) (5,006 ) Investment ― (25 ) Prepaid expenses (122 ) (17 ) 3,168 2,890 Valuation allowance (8,592 ) (7,896 ) Net deferred income tax liabilities (5,424 ) (5,006 ) An overall reconciliation between the expected tax expense using the federal statutory rate of 34% and the expense for income taxes from continuing operations as reported in the accompanying Consolidated Statement of Operations is provided below (in thousands). 2015 2014 Tax expense (benefit) at statutory rate $ 166 $ (864 ) State tax benefit, net of federal benefit (93 ) (66 ) Change in deferred tax rates 208 ― Permanent items 84 137 Non-deductible Goodwill ― 129 Difference in foreign rate 40 98 Reversal of deferred tax assets for divested facility (SYA) ― 99 Reversal of deferred tax assets on stock compensation ― 593 Change in deferred tax liabilities 206 ― Other (124 ) 75 Increase in valuation allowance 56 216 Income tax expense $ 543 $ 417 The provision for income taxes is determined in accordance with ASC 740, “Income Taxes”. Deferred income tax assets and liabilities are recognized for future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred income tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company regularly assesses the likelihood that the deferred tax asset will be recovered from future taxable income. The Company considers projected future taxable income and ongoing tax planning strategies, then records a valuation allowance to reduce the carrying value of the net deferred income taxes to an amount that is more likely than not to be realized. In 2015 and 2014, we determined that it was more likely than not that approximately $8,592,000 and $7,896,000, respectively, of deferred income tax assets would not be realized, and as such, a full valuation allowance was applied against those deferred income tax assets. Our valuation allowance increased by $56,000 and $216,000 for the years ended December 31, 2015 and 2014, respectively. We have estimated net operating loss carryforwards (NOLs) for federal and state income tax purposes of approximately $4,651,000 and $52,784,000, respectively, as of December 31, 2015. These net operating losses can be carried forward and applied against future taxable income, if any, and expire in various amounts starting in 2021. However, as a result of various stock offerings and certain acquisitions, which in the aggregate constitute a change in control, the use of these NOLs will be limited under the provisions of Section 382 of the Internal Revenue Code of 1986, as amended. Additionally, NOLs may be further limited under the provisions of Treasury Regulation 1.1502-21 regarding Separate Return Limitation Years. The Company accounts for uncertainties in income taxes pursuant to ASC 740. A reconciliation of the beginning and ending amount of our unrecognized tax expense is summarized as follows (in thousands): 2015 2014 Balances at beginning of year $ ― $ 180 Reduction related to prior year tax position ― (180 ) (1) Balances at end of the year $ ― $ ― (1) Includes $26,000 in interest and penalties. The tax years 2012 through 2014 remain open to examination by taxing authorities in the jurisdictions in which the Company operates. As of December 31, 2015 and 2014, the Company had approximately $32,000 and $85,000 of federal income tax payable, respectively. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13 COMMITMENTS AND CONTINGENCIES Hazardous Waste In connection with our waste management services, we process both hazardous and non-hazardous waste, which we transport to our own, or other, facilities for destruction or disposal. As a result of disposing of hazardous substances, in the event any cleanup is required, we could be a potentially responsible party for the costs of the cleanup notwithstanding any absence of fault on our part. Legal Matters In the normal course of conducting our business, we are involved in various litigation. We are not a party to any litigation or governmental proceeding which our management believes could result in any judgments or fines against us that would have a material adverse effect on our financial position, liquidity or results of future operations. Insurance The Company has a 25-year finite risk insurance policy entered into in June 2003 with American International Group, Inc. (“AIG”), which provides financial assurance to the applicable states for our permitted facilities in the event of unforeseen closure. The policy, as amended, provides for a maximum allowable coverage of $39,000,000 and has available capacity to allow for annual inflation and other performance and surety bond requirements. All of the required payments for this finite risk insurance policy, as amended, were made by 2012. As of December 31, 2015, our financial assurance coverage amount under this policy totaled approximately $38,454,000. The Company has recorded $15,460,000 and $15,429,000 in sinking fund related to this policy in other long term assets on the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively, which includes interest earned of $989,000 and $958,000 on the sinking fund as of December 31, 2015 and 2014, respectively. Interest income for the twelve months ended December 31, 2015 and 2014 was approximately $31,000 and $20,000, respectively. If the Company so elects, AIG is obligated to pay the Company an amount equal to 100% of the sinking fund account balance in return for complete release of liability from both us and any applicable regulatory agency using this policy as an instrument to comply with financial assurance requirements. In August 2007, the Company entered into a second finite risk insurance policy for our PFNWR facility with AIG. The policy provided an initial $7,800,000 of financial assurance coverage with an annual growth rate of 1.5%, which at the end of the four year term policy, provides maximum coverage of $8,200,000. The Company has made all of the required payments on this policy. The Company has recorded $5,920,000 and $5,905,000 in our sinking fund related to this policy in other long term assets on the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014, respectively, which includes interest earned of $220,000 and $205,000 on the sinking fund as of December 31, 2015 and 2014, respectively. Interest income for the twelve months ended December 31, 2015 and 2014 was approximately $15,000 and $7,000, respectively. This policy is renewed annually at the end of the four year term with a nominal fee for the variance between the coverage requirement and the sinking fund balance. The Company has renewed this policy annually from 2011 to 2015 (with fees ranging from $41,000 to $46,000 annually). All other terms of the policy remain substantially unchanged. Letter of Credits and Bonding Requirements From time to time, we are required to post standby letters of credit and various bonds to support contractual obligations to customers and other obligations, including facility closures. As of December 31, 2015, the total amount of these bonds and letters of credit outstanding was approximately $1,738,000, of which the majority of the amount relates to various bonding requirements. Operating Leases The Company leases certain facilities and equipment under operating leases. The following table lists future minimum rental payments as of December 31, 2015 under these leases for our continuing operations (in thousands): Year ending December 31: 2016 675 2017 670 2018 194 beyond 2018 ― Total $ 1,539 Total rent expense was $976,000 and $1,158,000 for the years ended 2015 and 2014, respectively, for our continuing operations. These amounts included payments on non-cancelable operating leases of approximately $659,000 and $826,000 for the years ended 2015 and 2014, respectively. The remaining rent expense was for non-contractual monthly and daily rentals of specific use vehicles, machinery and equipment. |
Note 14 - Profit Sharing Plan
Note 14 - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 14 PROFIT SHARING PLAN The Company adopted a 401(k) Plan in 1992, which is intended to comply with Section 401 of the Internal Revenue Code and the provisions of the Employee Retirement Income Security Act of 1974. All full-time employees who have attained the age of 18 are eligible to participate in the 401(k) Plan. Eligibility is immediate upon employment but enrollment is only allowed during four quarterly open periods of January 1, April 1, July 1, and October 1. Participating employees may make annual pretax contributions to their accounts up to 100% of their compensation, up to a maximum amount as limited by law. The Company, at its discretion, may make matching contributions of 25% based on the employee’s elective contributions. Company contributions vest over a period of five years. Effective June 15, 2012, the Company suspended its matching contribution in an effort to reduce costs in light of the economic environment. The Company commenced its matching contribution again effective January 1, 2015. In 2015, the Company contributed approximately $303,000 in 401(k) matching funds. |
Note 15 - Related Party Transac
Note 15 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 15 RELATED PARTY TRANSACTIONS Related Party Transactions Mr. David Centofanti Mr. David Centofanti serves as the Company’s Vice President of Information Systems. For such position, he received annual compensation of $168,000 and $163,000 in 2015 and 2014, respectively. Mr. Centofanti is the son of the Company’s CEO, President and a Board member, Dr. Louis F. Centofanti. Mr. Robert L. Ferguson Mr. Robert L. Ferguson serves as an advisor to the Company’s Board and is also a member of the Supervisory Board of PF Medical, a majority-owned Polish subsidiary of the Company. Mr. Ferguson previously served as a Board member for the Company from June 2007 to February 2010 and again from August 2011 to September 2012. As an advisor to the Company’s Board, Mr. Ferguson is paid $4,000 monthly plus reasonable expenses. For such services, Mr. Ferguson received compensation of approximately $58,000 and $56,000 for the years ended December 31, 2015 and 2014, respectively. On August 2, 2013, the Company completed a lending transaction with Messrs. Robert Ferguson and William Lampson (“collectively, the “Lenders”), whereby the Company borrowed from the Lenders the sum of $3,000,000 pursuant to the terms of a Loan and Security Purchase Agreement and promissory note (the “Loan”) (see further details and terms of this Loan in this Note 9 – “Long Term Debt – Promissory Notes and Installment Agreements”). Mr. John Climaco On June 2, 2015, Mr. Climaco, a current member of the Company’s Board and a member of the Strategic Advisory Committee of the Board, was elected as the EVP of PF Medical. As EVP of PF Medical, Mr. Climaco receives an annual salary of $150,000 and is not eligible to receive compensation for serving on the Company’s Board. On October 17, 2014, the Company’s Compensation Committee and the Board, with Mr. Climaco abstaining, approved a consulting agreement with Mr. Climaco. Pursuant to the consulting agreement, Mr. Climaco was responsible to, among other things: ● Review the Company’s operations to restructure costs to render the Company more competitive; ● Evaluate all functions, including but not limited to sales, marketing, accounting, operations, and executive management as well as cost structures for each facility; ● Assist in the development of the Company’s strategy opportunity and other initiatives, including but not limited to the development of the Company’s medical isotope technology; and ● Other assignments as determined by the Board. Mr. Climaco was paid $22,000 per month under the consulting agreement, beginning September 2014, until the termination of the consulting agreement effective June 2, 2015, upon Mr. Climaco’s election as EVP of PF Medical. For his services under the consulting agreement, Mr. Climaco received approximately $117,000 and $107,000 in 2015 and 2014, respectively. Mr. Climaco is also a Director of Digirad Corporation. On July 24, 2015 PF Medical and Digirad entered into a multi-year Tc-99 Supplier Agreement and a Subscription Agreement (see further details of these agreements in this Note 3 – “PF Medical). Mr. Robert Schreiber, Jr. During March 2011, we entered into a five-year lease with Lawrence Properties LLC for certain office and warehouse space used and occupied by SYA, a wholly owned subsidiary of the Company until its sale by the Company on July 29, 2014. Lawrence Properties is owned by Robert Schreiber, Jr., the President of SYA until his resignation on July 29, 2014, and Mr. Schreiber’s spouse. Under the lease, which commenced June 1, 2011, we paid monthly rent of approximately $11,400. Rent payment under this lease was approximately $72,000 for the year ended December 31, 2014. In connection with the Company’s sale of SYA, the lease was terminated on July 29, 2014. Mr. Schreiber is a member of the Supervisory Board of PF Medical, a majority-owned Polish subsidiary of the Company. Employment Agreements We have employment agreements (each dated July 10, 2014) with each of Dr. Centofanti (our President and CEO), Ben Naccarato (our CFO), and John Lash (our COO). Each employment agreement provides for annual base salaries, bonuses, and other benefits commonly found in such agreements. In addition, each employment agreement provides that in the event of termination of such officer without cause or termination by the officer for good reason (as such terms are defined in the employment agreement), the terminated officer shall receive payments of an amount equal to benefits that have accrued as of the termination but had not yet been paid, plus an amount equal to one year’s base salary at the time of termination. In addition, the employment agreements provide that in the event of a change in control (as defined in the employment agreements), all outstanding stock options to purchase our Common Stock granted to, and held by, the officer covered by the employment agreement to be immediately vested and exercisable. The Company had an employment agreement dated August 24, 2011 with Mr. James A. Blankenhorn. On March 20, 2014, the Company accepted the resignation of Mr. James A. Blankenhorn, as Vice President and COO of the Company. The resignation was effective March 28, 2014. When Mr. Blankenhorn’s resignation as the COO became effective, his employment agreement also terminated. MIPs The Company has an individual MIP for each of our CEO, CFO and COO, which awards cash compensation based on achievement of certain performance targets for fiscal year 2015. A total of approximately $214,000 (which is expected to be paid during the second quarter of 2016) was accrued under the three MIPs for 2015. See “Subsequent Events” in Note 17 for discussion of the 2016 MIPs. |
Note 16 - Segment Reporting
Note 16 - Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 16 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 chief operating decision maker (“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 currently have three reporting segments, which include Treatment and Services Segments, which are based on a service offering approach; and Medical, whose primary purpose at this time is the continuation of R&D of a new medical isotope production technology. The Medical Segment has not generated any revenues and all costs incurred are reflected within R&D in the accompanying Statements of Operations. Our reporting segments exclude our corporate headquarter and our discontinued operations (see Note 8 – “Discontinued Operations and Divestitures”) which do not generate revenues. The table below shows certain financial information of our reporting segments for 2015 and 2014 (in thousands). Segment Reporting as of and for the year ended December 31, 2015 Treatment Services Medical Segments Total Corporate (2) Consolidated Total Revenue from external customers $ 41,318 $ 21,065 — $ 62,383 (3) $ — $ 62,383 Intercompany revenues 113 25 — 138 — — Gross profit 10,910 3,441 — 14,351 — 14,351 Research and Development 179 — 2,114 2,293 9 2,302 Interest income 6 — — 6 47 53 Interest expense (38 ) — — (38 ) (451 ) (489 ) Interest expense-financing fees (2 ) — — (2 ) (226 ) (228 ) Depreciation and amortization 2,949 725 — 3,674 43 3,717 Segment income (loss) before income taxes 7,101 1,178 (2,114 ) 6,165 (5,685 ) 480 Income tax expense 538 — — 538 5 543 Segment income (loss) 6,563 1,178 (2,114 ) 5,627 (5,690 ) (63 ) Segment assets (1) 46,307 9,481 1,793 57,581 25,484 (4) 83,065 Expenditures for segment assets 579 33 — 612 11 623 Total debt 23 — — 23 9,965 (5) 9,988 Segment Reporting as of and for the year ended December 31, 2014 Treatment Services Medical Segments Total Corporate (2) Consolidated Total Revenue from external customers $ 42,343 $ 14,722 — $ 57,065 (3) $ — $ 57,065 Intercompany revenues 12 70 — 82 — — Gross profit 10,480 1,428 — 11,908 — 11,908 Research and Development 437 99 759 1,295 20 1,315 Interest income — — — — 27 27 Interest expense (38 ) (1 ) — (39 ) (577 ) (616 ) Interest expense-financing fees — 2 — 2 (194 ) (192 ) Depreciation and amortization 3,281 910 — 4,191 49 4,240 Segment income (loss) before income taxes 6,149 (2,184 ) (6) (759 ) 3,206 (5,781 ) (2,575 ) Income tax expense (benefit) 604 (191 ) — 413 4 417 Segment income (loss) 5,545 (1,993 ) (6) (759 ) 2,793 (5,785 ) (2,992 ) Segment assets (1) 50,226 8,920 1,213 60,359 27,892 (4) 88,251 Expenditures for segment assets 399 64 — 463 1 464 Total debt 47 — — 47 11,325 (5) 11,372 (1) (2) ( 3) 2015 2014 Treatment $ 30,130,000 $ 29,786,000 Services 5,975,000 4,994,000 Total $ 36,105,000 $ 34,780,000 (4) Amount includes assets from our discontinued operations of $565,000 and $701,000, as of December 31, 2015 and 2014, respectively. (5) Net of debt discount of ($50,000) and ($137,000) for 2015 and 2014, respectively, based on the estimated fair value at issuance of two Warrants and 90,000 shares of the Company’s Common Stock issued on August 2, 2013 in connection with a $3,000,000 promissory note entered into by the Company and Messrs. William Lampson and Robert L. Ferguson. See Note 9 – “Long-Term Debt – Promissory Note and Installment Agreement” for additional information. (6) Included goodwill impairment charge of $380,000 recorded for the Company’s SYA subsidiary which was divested on July 29, 2014. |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 17 SUBSEQUENT EVENTS Credit Facility On March 24, 2016, the Company entered into an amendment to its Amended Loan Agreement (see Note 9 – “Long Term Debt” for a discussion of this Amended Loan Agreement) with our lender which provided, among other things, the following (the amendment, together with the Amended Loan Agreement is collectively known as the “Revised Loan Agreement”): ● extended the due date of our current Credit Facility from October 31, 2016 to March 24, 2021 (“maturity date”); ● amended the term loan to approximately $6,100,000, which requires monthly payments of approximately $102,000 (based on a five-year amortization) and which approximated the term loan balance under our existing Credit Facility at the date of the amendment. The revolving line of credit is to remain at up to $12,000,000 (subject to the amount of borrowings based on a percentage of eligible receivables as previously defined under the Amended Loan Agreement); ● released $1,000,000 of the $1,500,000 borrowing availability hold that the lender had previously placed on the Company in connection with the insurance settlement proceeds received by our PFSG facility, which suffered a fire in 2013; ● revised the interest payment options to paying an annual rate of interest due on the Revolving Credit at prime plus 1.75% or LIBOR plus 2.75% and the Term Loan at prime plus 2.25% or LIBOR plus 3.25%; and ● revised our annual capital spending maximum limit from $6,000,000 to $3,000,000. In connection with the amendment, the Company paid PNC a closing fee of $70,000. Pursuant to the amendment, the Company may terminate the Revised Loan Agreement upon 90 days’ prior written notice upon payment in full of its obligations under the Revised Loan Agreement. The Company has agreed to pay PNC 1.0% of the total financing in the event it pays off its obligations on or before March 23, 2017, .50% of the total financing if it pays off its obligations after March 23, 2017 but prior to or on March 23, 2018, and .25% of the total financing if it pays off its obligations after March 23, 2018 but prior to or on March 23, 2019. No early termination fee shall apply if the Company pays off its obligations after March 23, 2019. All other terms of the Amended Loan Agreement remain principally unchanged. PFMI On September 29, 2015, PFMI entered into a Purchase Agreement (the “Agreement”) for the sale of the property which PFMI formerly operated on for a sale price of $450,000, which is subject to completion of a due diligence by the buyer (see Note 8 – “Discontinued Operations and Divestitures” for further information regarding to PFMI). Upon execution of the Agreement, PFMI received a $20,000 deposit which is being held in an escrow account (recorded as restricted cash within discontinued operations). In consideration of an amendment to the Agreement entered into on February 17, 2016, which included extending the time period for completion of the due diligence by the buyer, the buyer agreed to forfeit $10,000 of the $20,000 held in escrow to PFMI, which the $10,000 was received by PFMI on February 18, 2016. Upon timely closing of the transaction, which is expected to be completed during the latter part of March 2016, the buyer shall receive a credit against the purchase price which shall be the lesser of $15,000 and 50% of funds paid by the buyer for certain due diligence costs, and a credit against the purchase price of $20,000. At closing, PFMI is expected to receive $50,000 (which includes the remaining $10,000 held in escrow) reduced by sales commissions and certain other closing costs and PFMI and the buyer will execute a Land Contract (“Contract”) which will provide for, among other things, the remaining balance of the purchase price of $375,000 to be paid by the buyer in 60 equal monthly installment of approximately $7,250, due on or before the 15 th Management Incentive Plans (MIPs) On February 4, 2016, the Company’s Compensation and Stock Option Committee approved individual MIPs for our CEO, COO, and CFO. The MIPs are effective as of January 1, 2016. Each MIP awards cash compensation based on achievement of performance thresholds, with the amount of such compensation established as a percentage of base salary. The potential target performance compensation ranges from 5% to 100% or $13,962 to $279,248 of the 2016 base salary for the CEO, 5% to 100% or $10,750 to $215,000 of the 2016 base salary for the COO, and 5% to 100% or $11,033 to $220,667 of the 2016 base salary for the CFO. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation Our consolidated financial statements include our accounts, those of our wholly-owned subsidiaries, and our majority-owned Polish subsidiary, PF Medical, after elimination of all significant intercompany accounts and transactions. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates When the Company prepares financial statements in conformity with accounting standards generally accepted in the United States of America (“US GAAP”), the Company makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as, the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See Notes 8, 11, 12 and 13 for estimates of discontinued operations and environmental liabilities, closure costs, income taxes and contingencies for details on significant estimates. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash reflects $35,000 held in escrow for our worker’s compensation policy and proceeds held in escrow resulting from stock subscription agreements executed in connection with the sale of common stock by the Company’s majority-owned Polish subsidiary, PF Medical (see Note 3 - “PF Medical” for further details). |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are customer obligations due under normal trade terms requiring payment within 30 or 60 days from the invoice date based on the customer type (government, broker, or commercial). The carrying amount of accounts receivable is reduced by an allowance for doubtful accounts, which is a valuation allowance that reflects management's best estimate of the amounts that will not be collected. We regularly review all accounts receivable balances that exceed 60 days from the invoice date and based on an assessment of current credit worthiness, estimate the portion, if any, of the balance that will not be collected. This analysis excludes government related receivables due to our past successful experience in their collectability. Specific accounts that are deemed to be uncollectible are reserved at 100% of their outstanding balance. The remaining balances aged over 60 days have a percentage applied by aging category, based on historical experience that allows us to calculate the total allowance required. Once we have exhausted all options in the collection of a delinquent accounts receivable balance, which includes collection letters, demands for payment, collection agencies and attorneys, the account is deemed uncollectible and subsequently written off. The write off process involves approvals from senior management based on required approval thresholds. The following table set forth the activity in the allowance for doubtful accounts for the years ended December 31, 2015 and 2014 (in thousands): Year Ended December 31, 2015 2014 Allowance for doubtful accounts-beginning of year $ 2,170 $ 1,932 (Recovery of) provision for bad debt reserve (433 ) 291 Write-off (263 ) (53 ) Allowance for doubtful accounts-end of year $ 1,474 $ 2,170 Retainage receivables represent amounts that are billed or billable to our customers, but are retained by the customer until completion of the project or as otherwise specified in the contract. Our retainage receivable balances are all current. Retainage receivables of approximately $229,000 and $11,000 as of December 31, 2015 and 2014, respectively, are included in the accounts receivable balance on the Company’s Consolidated Balance Sheets in the respective periods. |
Trade and Other Accounts Receivable, Unbilled Receivables, Policy [Policy Text Block] | Unbilled Receivables Unbilled receivables are generated by differences between invoicing timing and our proportional performance based methodology used for revenue recognition purposes. As major processing and contract completion phases are completed and the costs are incurred, we recognize the corresponding percentage of revenue. Within our Treatment Segment, we experience delays in processing invoices due to the complexity of the documentation that is required for invoicing, as well as the difference between completion of revenue recognition milestones and agreed upon invoicing terms, which results in unbilled receivables. The timing differences occur for several reasons: partially from delays in the final processing of all wastes associated with certain work orders and partially from delays for analytical testing that is required after we have processed waste but prior to our release of waste for disposal. The tasks relating to these delays usually take several months to complete. As we now have historical data to review the timing of these delays, we realize that certain issues, including, but not limited to, delays at our third party disposal site, can extend collection of some of these receivables greater than twelve months. However, our historical experience suggests that a significant portion of unbilled receivables are ultimately collectible with minimal concession on our part. We, therefore, segregate the unbilled receivables between current and long term. Unbilled receivables within our Services Segment can result from: (1) revenue recognized by our Earned Value Management program (a program which integrates project scope, schedule, and cost to provide an objective measure of project progress) but invoice milestones have not yet been met and/or (2) contract claims and pending change orders, including Requests for Equitable Adjustments (“REAs”) when work has been performed and collection of revenue is reasonably assured. |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist of treatment chemicals, saleable used oils, and certain supplies. Additionally, we have replacement parts in inventory, which are deemed critical to the operating equipment and may also have extended lead times should the part fail and need to be replaced. Inventories are valued at the lower of cost or market with cost determined by the first-in, first-out method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment expenditures are capitalized and depreciated using the straight-line method over the estimated useful lives of the assets for financial statement purposes, while accelerated depreciation methods are principally used for income tax purposes. Generally, asset lives range from ten to forty years for buildings (including improvements and asset retirement costs) and three to seven years for office furniture and equipment, vehicles, and decontamination and processing equipment. Leasehold improvements are capitalized and amortized over the lesser of the term of the lease or the life of the asset. Maintenance and repairs are charged directly to expense as incurred. The cost and accumulated depreciation of assets sold or retired are removed from the respective accounts, and any gain or loss from sale or retirement is recognized in the accompanying consolidated statements of operations. Renewals and improvements, which extend the useful lives of the assets, are capitalized. In accordance with ASC 360, “Property, Plant, and Equipment”, long-lived assets, such as property, plant and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. Our depreciation expense totaled approximately $3,246,000 and $3,602,000 in 2015 and 2014, respectively. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets consist primarily of the recognized value of the permits required to operate our business. We continually monitor the propriety of the carrying amount of our permits to determine whether current events and circumstances warrant adjustments to the carrying value. Indefinite-lived intangible assets are not amortized but are reviewed for impairment annually as of October 1, or when events or changes in the business environment indicate that the carrying value may be impaired. If the fair value of the asset is less than the carrying amount, we perform a quantitative test to determine the fair value. The impairment loss, if any, is measured as the excess of the carrying value of the asset over its fair value. Significant judgments are inherent in these analyses and include assumptions for, among other factors, forecasted revenue, gross margin, growth rate, operating income, timing of expected future cash flows, and the determination of appropriate long term discount rates. We performed impairment testing of our permits related to our Treatment reporting unit as of October 1, 2015 and 2014 and determined there was no impairment. Intangible assets that have definite useful lives are amortized using the straight-line method over the estimated useful lives (with the exception of customer relationships which are amortized using an accelerated method) and are excluded from our annual intangible asset valuation review as of October 1. The Company has one definite-lived permit which was excluded from our annual impairment review as noted above. The net carrying value of this one definite-lived permit as of December 31, 2015 and 2014 was approximately $172,000 and $227,000, respectively. Definite-lived intangible assets are also tested for impairment whenever events or changes in circumstances suggest impairment might exist. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development (“R&D”) Operational innovation and technical know-how is very important to the success of our business. Our goal is to discover, develop, and bring to market innovative ways to process waste that address unmet environmental needs and to develop new company service offerings. The Company conducts research internally and also through collaborations with other third parties. R&D costs consist primarily of employee salaries and benefits, laboratory costs, third party fees, and other related costs associated with the development and enhancement of new potential waste treatment processes and new technology and are charged to expense when incurred in accordance with ASC Topic 730, “Research and Development.” The Company’s R&D expenses included approximately $2,114,000 and $759,000 for the years ended December 31, 2015 and 2014, respectively, incurred by our Medical Segment in the R&D of its medical isotope production technology. |
Asset Retirement Obligations, Policy [Policy Text Block] | Accrued Closure Costs and Asset Retirement Obligations (“ARO”) Accrued closure costs represent our estimated environmental liability to clean up our facilities as required by our permits, in the event of closure. ASC 410, “Asset Retirement and Environmental Obligations” requires that the discounted fair value of a liability for an ARO be recognized in the period in which it is incurred with the associated ARO capitalized as part of the carrying cost of the asset. The recognition of an ARO requires that management make numerous estimates, assumptions and judgments regarding such factors as estimated probabilities, timing of settlements, material and service costs, current technology, laws and regulations, and credit adjusted risk-free rate to be used. This estimate is inflated, using an inflation rate, to the expected time at which the closure will occur, and then discounted back, using a credit adjusted risk free rate, to the present value. ARO’s are included within buildings as part of property and equipment and are depreciated over the estimated useful life of the property. In periods subsequent to initial measurement of the ARO, the Company must recognize period-to-period changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate of undiscounted cash flow. Increases in the ARO liability due to passage of time impact net income as accretion expense, which is included in cost of goods sold. Changes in costs resulting from changes or expansion at the facilities require adjustment to the ARO liability calculated and are capitalized and charged as depreciation expense, in accordance with the Company’s depreciation policy. |
Income Tax, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for in accordance with ASC 740, “Income Taxes.” Under ASC 740, the provision for income taxes is comprised of taxes that are currently payable and deferred taxes that relate to the temporary differences between financial reporting carrying values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC 740 requires that deferred income tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The Company evaluates the realizability of its deferred income tax assets, primarily resulting from impairment loss and net operating loss carryforwards, and adjusts its valuation allowance, if necessary. Once the Company utilizes its net operating loss carryforwards or reverses the related valuation allowance it has recorded on these deferred tax assets, the Company would expect its provision for income tax expense in future periods to reflect an effective tax rate that will be significantly higher than past periods. ASC 740 sets out a consistent framework for preparers to use to determine the appropriate recognition and measurement of uncertain tax positions. ASC 740 uses a two-step approach wherein a tax benefit is recognized if a position is more-likely-than-not to be sustained. The amount of the benefit is then measured to be the highest tax benefit which is greater than 50% likely to be realized. ASC 740 also sets out disclosure requirements to enhance transparency of an entity’s tax reserves. The Company recognizes accrued interest and income tax penalties related to unrecognized tax benefits as a component of income tax expense. The Company reassesses the validity of our conclusions regarding uncertain income tax positions on a quarterly basis to determine if facts or circumstances have arisen that might cause us to change our judgment regarding the likelihood of a tax position’s sustainability under audit. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency The Company’s foreign subsidiaries include PF UK Limited, PF Canada and PF Medical. Assets and liabilities are translated to U.S. dollars at the exchange rate in effect at the balance sheet date and revenue and expenses at the average exchange rate for the period. Foreign currency translation adjustments for these subsidiaries are accumulated as a separate component of accumulated other comprehensive income (loss) in stockholders’ equity. Gains and losses resulting from foreign currency transactions are recognized in the consolidated statements of operations. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration Risk The Company performed services relating to waste generated by the federal government, either directly as a prime contractor or indirectly for others as a subcontractor to the federal government, representing approximately $36,105,000 or 57.9% of total revenue from continuing operations during 2015, as compared to $34,780,000 or 60.9% of total revenue from continuing operations during 2014. Revenue generated by one of the customers (non-government related and excluded from above) in the Services Segment accounted for 10% or more of the total revenues generated from continuing operations for the twelve months ended December 31, 2015: Total % of Total Customer Year Revenue Revenue Prologis Teterboro, LLC 2015 $ 10,686,000 17.1% As our revenues are project/event based where the completion of one contract with a specific customer may be replaced by another contract with a different customer from year to year, we do not believe the loss of one specific customer from one year to the next will generally have a material adverse effect on our operations and financial condition. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with high quality financial institutions, which may exceed Federal Deposit Insurance Corporation (“FDIC”) insured amounts from time to time. Concentration of credit risk with respect to accounts receivable is limited due to the Company's large number of customers and their dispersion throughout the United States as well as with the significant amount of work that we perform for the federal government as discussed above. The Company has one customer whose net outstanding receivable balance represented 16.2% and 13.8% of the Company’s total consolidated net accounts receivable at December 31, 2015 and 2014, respectively. |
Gross Receipts Taxes and Other Charges [Policy Text Block] | Gross Receipts Taxes and Other Charges ASC 605-45, “Revenue Recognition – Principal Agent Consideration” provides guidance regarding the accounting and financial statement presentation for certain taxes assessed by a governmental authority. These taxes and surcharges include, among others, universal service fund charges, sales, use, waste, and some excise taxes. In determining whether to include such taxes in its revenue and expenses, the Company assesses, among other things, whether it is the primary obligor or principal taxpayer for the taxes assessed in each jurisdiction where the Company does business. As the Company is merely a collection agent for the government authority in certain of our facilities, the Company records the taxes on a net bases and excludes them from revenue and cost of services. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Treatment Segment r evenues. Services Segment revenues Under cost reimbursement contracts, the Services Segment is reimbursed for costs incurred plus a certain percentage markup for indirect costs, in accordance with contract provisions. Costs incurred in excess of contract funding may be renegotiated for reimbursement. The Services Segment also earns a fee based on the approved costs to complete the contract. The Services Segment recognizes this fee using the proportion of costs incurred to total estimated contract costs. Contract costs include all direct labor, material and other non-labor costs and those indirect costs related to contract support, such as depreciation, fringe benefits, overhead labor, supplies, tools, repairs and equipment rental. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. |
Self Insurance [Policy Text Block] | Self-Insurance Effective May 2015, the Company moved to a fully-insured group health plan. Previously the Company was self-insured for a significant portion of our group health. Under the self-insured group health plan, the Company estimated expected losses based on statistical analyses of historical industry data, as well as our own estimates based on the Company’s actual historical data to determine required self-insurance reserves. The assumptions were closely reviewed, monitored, and adjusted when warranted by changing circumstances. The estimated accruals for these liabilities could have been affected if actual experience related to the number of claims and cost per claim differed from these assumptions and historical trends. No self-insurance reserves were required as of December 31, 2015 as the Company moved to a fully-insured group health plan. Self-insurance reserve was approximately $397,000 as of December 31, 2014 and was included in Accrued expenses in the accompanying consolidated balance sheets. The total amount expensed for self-insurance during 2015 and 2014 were approximately $868,000 and $2,697,000, respectively, for our continuing operations. Monthly group health insurance premium under the fully-insured group health plan is approximately $220,000. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation”. ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards which requires subjective assumptions. Assumptions used to estimate the fair value of stock options granted include the exercise price of the award, the expected term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the expected annual dividend yield. The Company recognizes stock-based compensation expense using a straight-line amortization method over the requisite service period, which is the vesting period of the stock option grant. As ASC 718 requires that stock-based compensation expense be based on options that are ultimately expected to vest, our stock-based compensation expense is reduced by an estimated forfeiture rate. Our estimated forfeiture rate is generally based on historical trends of actual forfeitures. Forfeiture rates are evaluated, and revised as necessary. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income The components of comprehensive income (loss) are net income (loss) and the effects of foreign currency translation adjustments. |
Earnings Per Share, Policy [Policy Text Block] | Earning (Loss) Per Share Basic earning (loss) per share is calculated based on the weighted-average number of outstanding common shares during the applicable period. Diluted earning (loss) per share is based on the weighted-average number of outstanding common shares plus the weighted-average number of potential outstanding common shares. In periods where they are anti-dilutive, such amounts are excluded from the calculations of dilutive earnings per share. Earning (loss) per share is computed separately for each period presented. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments Certain assets and liabilities are required to be recorded at fair value on a recurring basis, while other assets and liabilities are recorded at fair value on a nonrecurring basis. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. The three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: Level 1 — Level 2 — Level 3 — Financial instruments include cash and restricted cash (Level 1), accounts receivable, accounts payable, and debt obligations (Level 3). Credit is extended to customers based on an evaluation of a customer’s financial condition and, generally, collateral is not required. At December 31, 2015 and December 31, 2014, the fair value of the Company’s financial instruments approximated their carrying values. The fair value of the Company’s Revolving Credit Facility approximates its carrying value due to the variable interest rate. The carrying value of our subsidiary's preferred stock is not significantly different than its fair value. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards In June 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-12, “Compensation Stock – Compensation (Topic 718).” ASU 2014-12 applies to all reporting entities that grant their employees share-based payments in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. It requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition and follows existing accounting guidance for the treatment of performance conditions. The standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015, with early adoption permitted. The adoption of this ASU in the fourth quarter of 2015 did not have an impact on the Company's results of operations, cash flows or financial position. In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis.” ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The adoption of this ASU in the fourth quarter of 2015 did not have an impact on the Company's results of operations, cash flows or financial position. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” ASU 2015-17 simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as noncurrent on the balance sheet. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. A reporting entity should apply the amendment prospectively or retrospectively. The Company adopted ASU 2015-17 retrospectively in the fourth quarter of 2015. Balances as of December 31, 2014 were restated to conform with 2015 classification, resulting in a decrease in current deferred tax assets of $385,000 and a decrease in long-term deferred tax liabilities of $385,000. Other than these reclassifications, the adoption of ASU 2015-17 had no impact on the Company’s results of operations and cash flows. |
New Accounting Pronouncements not yet Adopted, Policy [Policy Text Block] | Recently Issued Accounting Standards – Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue guidance contains principles that an entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. In July 2015, the FASB deferred the effective date to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). The ASU may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is still evaluating the potential impact of adopting this guidance on our financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosure in certain circumstances. The new standard will be effective for all entities in the first annual period ending after December 15, 2016. The Company is still evaluating the potential impact of adopting this guidance on our financial statements. In July 2015, the FASB issued ASU 2015-11, “ In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”. Under ASU 2016-02, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company is still evaluating the potential impact of adopting this guidance on our financial statements. |
Note 2 - Summary of Significa28
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | Year Ended December 31, 2015 2014 Allowance for doubtful accounts-beginning of year $ 2,170 $ 1,932 (Recovery of) provision for bad debt reserve (433 ) 291 Write-off (263 ) (53 ) Allowance for doubtful accounts-end of year $ 1,474 $ 2,170 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Total % of Total Customer Year Revenue Revenue Prologis Teterboro, LLC 2015 $ 10,686,000 17.1% |
Note 4 - Permit and Other Int29
Note 4 - Permit and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Intangible Assets [Table Text Block] | Permit (amount in thousands) Treatment Balance as of December 31, 2013 $ 16,744 PCB permit amortized (1) (55 ) Permit in progress 20 Balance as of December 31, 2014 16,709 PCB permit amortized (1) (55 ) Permit in progress 107 Balance as of December 31, 2015 $ 16,761 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2015 December 31, 2014 Useful Gross Net Gross Net Lives Carrying Accumulated Carrying Carrying Accumulated Carrying (Years) Amount Amortization Amount Amount Amortization Amount Intangibles (amount in thousands) Patent 8 - 18 $ 539 $ (203 ) $ 336 $ 512 $ (168 ) $ 344 Software 3 395 (364 ) 31 375 (319 ) 56 Customer relationships 12 3,370 (1,671 ) 1,699 3,370 (1,335 ) 2,035 Permit 10 545 (373 ) 172 545 (318 ) 227 Total $ 4,849 $ (2,611 ) $ 2,238 $ 4,802 $ (2,140 ) $ 2,662 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amount Year (In thousands) 2016 $ 412 2017 366 2018 335 2019 256 2020 221 $ 1,590 |
Note 5 - Capital Stock, Stock30
Note 5 - Capital Stock, Stock Plans, Warrants, and Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Stock Options Roll Forward [Table Text Block] | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (2) Options outstanding January 1, 2015 239,023 $ 7.81 Granted 12,000 4.19 Exercised (3,423 ) 2.79 $ 4,298 Forfeited/Expired (29,400 ) 8.13 Options outstanding End of Period (1) 218,200 $ 7.65 4.8 $ 14,676 Options Exercisable at December 31, 2015 (1) 169,533 $ 8.47 4.5 $ 14,676 Options Vested and expected to be vested at December 31, 2015 212,333 $ 7.72 4.8 $ 14,676 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (2) Options outstanding January 1, 2014 362,800 $ 9.53 Granted 71,800 4.70 Exercised (2,577 ) 2.79 $ 3,705 Forfeited/Expired (193,000 ) 9.95 Options outstanding End of Period (1) 239,023 $ 7.81 4.9 $ 41,957 Options Exercisable at December 31, 2014 (1) 167,223 $ 9.15 4.2 $ 31,037 Options Vested and expected to be vested at December 31, 2014 230,223 $ 7.92 4.9 $ 41,957 |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Weighted Average Grant-Date Fair Value Non-vested options January 1, 2015 71,800 $ 2.85 Granted 12,000 2.84 Vested (35,133 ) 2.81 Non-vested options at December 31, 2015 48,667 $ 2.87 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Outside Director Stock Options Granted For Year Ended 2015 2014 Weighted-average fair value per share $ 2.84 $ 2.73 Risk -free interest rate (1) 2.21 % 2.63 % Expected volatility of stock (2) 57.98 % 59.59 % Dividend yield None None Expected option life (3) 10.0 10.0 Employee Stock Option Granted For Year Ended 2014 Weighted-average fair value per share $ 2.88 Risk -free interest rate (1) 1.91% Expected volatility of stock (2) 61.84% Dividend yield None Expected option life (3) 6.0 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year Ended 2015 2014 Employee Stock Options $ 53,000 $ (14,000 ) Director Stock Options 39,000 48,000 Total $ 92,000 $ 34,000 |
Note 6 - Income (Loss) Per Sh31
Note 6 - Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Twelve Months Ended December 31, (Unaudited) (Amounts in Thousands, Except for Per Share Amounts) 2015 2014 Net income (loss) attributable to Perma-Fix Environmental Services, Inc., common stockholders: Income (loss) from continuing operations attributable to Perma-Fix Environmental Services, Inc. common stockholders $ 814 $ (2,913 ) Income (loss) from discontinuing operations attributable to Perma-Fix Environmental Services, Inc. common stockholders (1,864 ) 1,688 Net loss attributable to Perma-Fix Environmental Services, Inc. common stockholders $ (1,050 ) $ (1,225 ) Basic loss per share attributable to Perma-Fix Environmental Services, Inc. common stockholders $ (.09 ) $ (.11 ) Diluted loss per share attributable to Perma-Fix Environmental Services, Inc. common stockholders $ (.09 ) $ (.11 ) Weighted average shares outstanding: Basic weighted average shares outstanding 11,516 11,443 Add: dilutive effect of stock options 6 — Add: dilutive effect of warrants 30 — Diluted weighted average shares outstanding 11,552 11,443 Potential shares excluded from above weighted average share calcualtions due to their anti-dilutive effect include: Stock options 183 201 |
Note 8 - Discontinued Operati32
Note 8 - Discontinued Operations and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Disposal Group, Including Discontinued Operation Income Statement [Table Text Block] | For The Year Ended December 31, Amount in Thousands 2015 2014 Interest expense $ (401 ) $ (6 ) Operating (loss) income from discontinued operations (1,915 ) (2,108 ) Gain on insurance settlement of discontinued operations — 3,842 Income tax (benefit) expense (51 ) 46 (Loss) income from discontinued operations (1,864 ) 1,688 |
Disposal Groups, Including Discontinued Operation Balance Sheet [Table Text Block] | December 31, December 31, (Amounts in Thousands) 2015 2014 Property $ 450 $ 600 Total assets held for sale $ 450 $ 600 December 31, December 31, (Amounts in Thousands) 2015 2014 Current assets Other assets $ 34 20 Total current assets 34 20 Long-term assets Property, plant and equipment, net (1) 81 81 Total long-term assets 81 81 Total assets not held for sale $ 115 $ 101 Current liabilities Accounts payable $ 85 $ 947 Accrued expenses and other liabilities 437 462 Environmental liabilities 9 728 Total current liabilities 531 2,137 Long-term liabilities Closure liabilities 173 302 Environmental liabilities 891 288 Total long-term liabilities 1,064 590 Total liabilities not held for sale $ 1,595 $ 2,727 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Current Long-term Accrual Accrual Total PFD $ 9 $ 60 $ 69 PFM — 15 15 PFSG — 816 816 Total liability $ 9 $ 891 $ 900 |
Note 9 - Long-term Debt (Tables
Note 9 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | (Amounts in Thousands) December 31, 2015 December 31, 2014 Revolving Credit receivables, subject to monthly borrowing base calculation, variable interest paid monthly at option of prime rate (3.50% at December 31, 2015) plus 2.0% or London Interbank Offer Rate ("LIBOR") plus 3.0%, balance due October 31, 2016. Effective interest rate for 2015 and 2014 was 4.0% and 4.1%, respectively. (1) $ 2,349 (3) $ — Term Loan $190, balance due on October 31, 2016, variable interest paid monthly at option of prime rate plus 2.5% or LIBOR plus 3.5%. Effective interest rate for 2015 and 2014 was 3.7% and 3.7%, respectively. (1) 6,666 (3) 8,952 Promissory Note only, starting September 1, 2013 followed with twenty-four monthly installments of $125 in principal plus accrued interest. Interest accrues at annual rate of 2.99%. (2) (4) 950 2,363 Promissory Note includes interest and principal, starting February 28, 2013, interest accrues at annual rate of 6.0%, paid in full on January 30, 2015. (2) — 10 Capital lease ( 23 47 9,988 11,372 Less current portion of long-term debt 2,458 3,733 $ 7,530 $ 7,639 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year ending December 31: (In thousands) 2016 $ 2,508 Beyond 2016 7,530 Total $ 10,038 |
Note 10 - Accrued Expenses (Tab
Note 10 - Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2015 2014 Salaries and employee benefits $ 2,822 $ 2,935 Accrued sales, property and other tax 202 410 Interest payable 9 22 Insurance payable 833 546 Other 475 627 Total accrued expenses $ 4,341 $ 4,540 |
Note 11 - Accrued Closure Cos35
Note 11 - Accrued Closure Costs and ARO (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Amounts in thousands Balance as of December 31, 2013 $ 5,222 Accretion expense 286 Balance as of December 31, 2014 5,508 Accretion expense 299 Payments (331 ) Adjustment to closure liability (175 ) Balance as of December 31, 2015 $ 5,301 |
Schedule of Asset Retirement Obligations [Table Text Block] | Amounts in thousands Balance as of December 31, 2013 $ 2,961 Amortization of closure and post-closure asset (91 ) Balance as of December 31, 2014 2,870 Amortization of closure and post-closure asset (152 ) Adjustment to closure and post-closure asset (143 ) Balance as of December 31, 2015 $ 2,575 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 Federal income tax expense (benefit) - current $ 116 $ (121 ) Federal income tax expense - deferred 142 530 State income tax expense (benefit) - current 9 (1 ) State income tax expense - deferred 276 9 Total income tax expense $ 543 $ 417 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax assets: 2015 2014 Net operating losses $ 4,566 $ 4,611 Environmental and closure reserves 2,497 2,520 Other 2,800 3,129 Deferred tax liabilities: Depreciation and amortization (1,130 ) (2,322 ) Goodwill and indefinite lived intangible assets (5,443 ) (5,006 ) Investment ― (25 ) Prepaid expenses (122 ) (17 ) 3,168 2,890 Valuation allowance (8,592 ) (7,896 ) Net deferred income tax liabilities (5,424 ) (5,006 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 Tax expense (benefit) at statutory rate $ 166 $ (864 ) State tax benefit, net of federal benefit (93 ) (66 ) Change in deferred tax rates 208 ― Permanent items 84 137 Non-deductible Goodwill ― 129 Difference in foreign rate 40 98 Reversal of deferred tax assets for divested facility (SYA) ― 99 Reversal of deferred tax assets on stock compensation ― 593 Change in deferred tax liabilities 206 ― Other (124 ) 75 Increase in valuation allowance 56 216 Income tax expense $ 543 $ 417 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | 2015 2014 Balances at beginning of year $ ― $ 180 Reduction related to prior year tax position ― (180 ) (1) Balances at end of the year $ ― $ ― |
Note 13 - Commitments and Con37
Note 13 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending December 31: 2016 675 2017 670 2018 194 beyond 2018 ― Total $ 1,539 |
Note 16 - Segment Reporting (Ta
Note 16 - Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Treatment Services Medical Segments Total Corporate (2) Consolidated Total Revenue from external customers $ 41,318 $ 21,065 — $ 62,383 (3) $ — $ 62,383 Intercompany revenues 113 25 — 138 — — Gross profit 10,910 3,441 — 14,351 — 14,351 Research and Development 179 — 2,114 2,293 9 2,302 Interest income 6 — — 6 47 53 Interest expense (38 ) — — (38 ) (451 ) (489 ) Interest expense-financing fees (2 ) — — (2 ) (226 ) (228 ) Depreciation and amortization 2,949 725 — 3,674 43 3,717 Segment income (loss) before income taxes 7,101 1,178 (2,114 ) 6,165 (5,685 ) 480 Income tax expense 538 — — 538 5 543 Segment income (loss) 6,563 1,178 (2,114 ) 5,627 (5,690 ) (63 ) Segment assets (1) 46,307 9,481 1,793 57,581 25,484 (4) 83,065 Expenditures for segment assets 579 33 — 612 11 623 Total debt 23 — — 23 9,965 (5) 9,988 Treatment Services Medical Segments Total Corporate (2) Consolidated Total Revenue from external customers $ 42,343 $ 14,722 — $ 57,065 (3) $ — $ 57,065 Intercompany revenues 12 70 — 82 — — Gross profit 10,480 1,428 — 11,908 — 11,908 Research and Development 437 99 759 1,295 20 1,315 Interest income — — — — 27 27 Interest expense (38 ) (1 ) — (39 ) (577 ) (616 ) Interest expense-financing fees — 2 — 2 (194 ) (192 ) Depreciation and amortization 3,281 910 — 4,191 49 4,240 Segment income (loss) before income taxes 6,149 (2,184 ) (6) (759 ) 3,206 (5,781 ) (2,575 ) Income tax expense (benefit) 604 (191 ) — 413 4 417 Segment income (loss) 5,545 (1,993 ) (6) (759 ) 2,793 (5,785 ) (2,992 ) Segment assets (1) 50,226 8,920 1,213 60,359 27,892 (4) 88,251 Expenditures for segment assets 399 64 — 463 1 464 Total debt 47 — — 47 11,325 (5) 11,372 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | 2015 2014 Treatment $ 30,130,000 $ 29,786,000 Services 5,975,000 4,994,000 Total $ 36,105,000 $ 34,780,000 |
Note 1 - Description of Busin39
Note 1 - Description of Business and Basis of Operation (Details Textual) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Perma Fix of Medical Corporation [Member] | ||
Capital Investment in Publicly Traded Shell Company Percentage Acquired | 60.50% | |
Number of Reportable Segments | 3 | |
Working Capital | $ 3,091,000 | $ 372,000 |
Working Capital, Increase from Prior Period | 2,719,000 | |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ (63,000) | $ (2,992,000) |
Note 2 - Summary of Significa40
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Customer [Member] | |||
Concentration Risk, Percentage | 16.20% | 13.80% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Number of Major Customers | 1 | 1 | |
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | Federal Government [Member] | |||
Revenues | $ 36,105,000 | $ 34,780,000 | |
Concentration Risk, Percentage | 57.90% | 60.90% | |
Customer Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | |||
Number of Major Customers | 1 | ||
Treatment [Member] | Federal Government [Member] | |||
Revenues | $ 30,130,000 | $ 29,786,000 | |
Treatment [Member] | |||
Goodwill, Impairment Loss | 0 | $ 0 | |
Research and Development Expense | 179,000 | 437,000 | |
Medical [Member] | |||
Research and Development Expense | 2,114,000 | 759,000 | |
Workers Compensation [Member] | |||
Escrow Deposit | $ 35,000 | 35,000 | |
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
PCB Permit [Member] | |||
Number of Definite-lived Permits | 1 | ||
Finite-Lived Intangible Assets, Net | $ 172,000 | 227,000 | 172,000 |
Federal Government [Member] | |||
Revenues | 36,105,000 | 34,780,000 | |
Reclassification from Current Deferred Tax Assets to Noncurrent Deferred Tax Assets [Member] | December 31, 2014 [Member] | |||
Prior Period Reclassification Adjustment | 385,000 | ||
Reclassification from Noncurrent Deferred Tax Assets to Noncurrent Deferred Tax Liabilities [Member] | December 31, 2014 [Member] | |||
Prior Period Reclassification Adjustment | 385,000 | ||
Self Insurance Reserve, Current | $ 0 | 397,000 | 0 |
Goodwill, Impairment Loss | 380,000 | ||
Percentage of Reserves for Doubtful Accounts Receivable | 100.00% | ||
Contract Receivable Retainage | $ 229,000 | 11,000 | 229,000 |
Depreciation | 3,246,000 | 3,602,000 | |
Finite-Lived Intangible Assets, Net | 2,238 | 2,662 | $ 2,238 |
Research and Development Expense | 2,302,000 | 1,315,000 | |
Self Insurance Expenses for Continuing Operations | 868,000 | $ 2,697,000 | |
Monthly Health Insurance Premium | $ 220,000 |
Note 2 - Allowance for Doubtful
Note 2 - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts-beginning of year | $ 2,170 | $ 1,932 |
(Recovery of) provision for bad debt reserve | (433) | 291 |
Write-off | (263) | (53) |
Allowance for doubtful accounts-end of year | $ 1,474 | $ 2,170 |
Note 2 - Customer Concentration
Note 2 - Customer Concentration Risk (Details) - Sales Revenue, Services, Net [Member] - Customer Concentration Risk [Member] - Prologis Teterboro, LLC [Member] | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Revenues | $ 10,686,000 |
Concentration Risk, Percentage | 17.10% |
Note 3 - PF Medical (Details Te
Note 3 - PF Medical (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Jul. 24, 2015 | Aug. 31, 2014 | |
Private Placement [Member] | Series E Common Stock [Member] | PF Medical SA [Member] | ||||
Common Stock, Value, Subscriptions | $ 2,357,000 | |||
Common Stock, Shares Unpaid | 250,000 | |||
Digirad Agreements [Member] | Restricted Series F Stock [Member] | PF Medical SA [Member] | ||||
Share Purchase Agreement, Number of Shares | 71,429 | |||
Share Purchase Agreement, Aggregate Purchase Price | $ 1,000,000 | |||
Share Purchase Agreement, Shares Issued Percentage of Outstanding Shares | 5.40% | |||
Series E Common Stock [Member] | PF Medical SA [Member] | ||||
Common Stock, Shares Unpaid | 86,585 | |||
Payments of Stock Issuance Costs | $ 242,000 | |||
Stock Issued During Period, Shares, New Issues | 250,000 | |||
PF Medical SA [Member] | ||||
Cash Received from Capital Transaction | $ 67,000 | $ 1,478,000 | ||
Amount Held in Escrow Account [Member] | ||||
Restricted Cash and Cash Equivalents | 67,000 | |||
Professional Fees | $ 29,000 | $ 242,000 | ||
Share Purchase Agreement, Company Ownership Percentage Prior to Share Issuance | 64.00% | |||
Share Purchase Agreement, Company Ownership Percentage Post Share Issuance | 60.50% |
Note 4 - Permit and Other Int44
Note 4 - Permit and Other Intangible Assets (Details Textual) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
PCB Permit [Member] | ||
Number of Definite-lived Permits | 1 | |
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Finite-Lived Intangible Assets, Net | $ 172,000 | $ 227,000 |
SYA [Member] | ||
Goodwill, Impairment Loss | 380,000 | |
Finite-Lived Intangible Assets, Net | 2,238 | 2,662 |
Amortization of Intangible Assets | 471,000 | 638,000 |
Goodwill | $ 0 | 0 |
Goodwill, Impairment Loss | $ 380,000 |
Note 4 - Changes in the Carryin
Note 4 - Changes in the Carrying Amount of Permits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Permits [Member] | |||
Balance | $ 16,709,000 | $ 16,744,000 | |
PCB permit amortized (1) | [1] | (55,000) | (55,000) |
Permit in progress | 107,000 | 20,000 | |
Balance | 16,761,000 | 16,709,000 | |
PCB permit amortized (1) | $ (471,000) | $ (638,000) | |
[1] | Amortization for the one definite-lived permit capitalized in 2009. This permit is being amortized over a ten year period in accordance with its estimated useful life. Net carrying value of this permit was approximately $172,000 and $227,000 as of December 31, 2015 and 2014, respectively. |
Note 4 - Other Intangible Asset
Note 4 - Other Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Patents [Member] | Minimum [Member] | ||
Useful Lives | 8 years | |
Patents [Member] | Maximum [Member] | ||
Useful Lives | 18 years | |
Patents [Member] | ||
Gross Carrying Amount | $ 539,000 | $ 512,000 |
Accumulated Amortization | (203,000) | (168,000) |
Net Carrying Amount | $ 336 | 344 |
Computer Software, Intangible Asset [Member] | ||
Useful Lives | 3 years | |
Gross Carrying Amount | $ 395,000 | 375,000 |
Accumulated Amortization | (364,000) | (319,000) |
Net Carrying Amount | $ 31 | 56 |
Customer Relationships [Member] | ||
Useful Lives | 12 years | |
Gross Carrying Amount | $ 3,370,000 | 3,370,000 |
Accumulated Amortization | (1,671,000) | (1,335,000) |
Net Carrying Amount | $ 1,699 | 2,035 |
Permits [Member] | ||
Useful Lives | 10 years | |
Gross Carrying Amount | $ 545,000 | 545,000 |
Accumulated Amortization | (373,000) | (318,000) |
Net Carrying Amount | 172 | 227 |
Gross Carrying Amount | 4,849,000 | 4,802,000 |
Accumulated Amortization | (2,611,000) | (2,140,000) |
Net Carrying Amount | $ 2,238 | $ 2,662 |
Note 4 - Summary of Expected Am
Note 4 - Summary of Expected Amortization Over the Next Five Years (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 412 |
2,017 | 366 |
2,018 | 335 |
2,019 | 256 |
2,020 | 221 |
$ 1,590 |
Note 5 - Capital Stock, Stock48
Note 5 - Capital Stock, Stock Plans, Warrants, and Stock Based Compensation (Details Textual) - USD ($) | Sep. 17, 2015 | Aug. 02, 2013 | Jul. 25, 2011 | Sep. 29, 2010 | Jul. 28, 2004 | Jul. 29, 2003 | May. 31, 2008 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | The 2010 Stock Option Plan [Member] | Contractual Term with One-third Yearly Vesting [Member] | Chief Operating Officer [Member] | ||||||||||
Share-based Compensation Maximum Contractual Term | 6 years | |||||||||
Employee Stock Option [Member] | The 2010 Stock Option Plan [Member] | Chief Operating Officer [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Employee Stock Option [Member] | The 2003 Outside Directors Stock Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||
Employee Stock Option [Member] | Contractual Term with One-third Yearly Vesting [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Share-based Compensation Maximum Contractual Term | 6 years | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | [1] | 6 years | ||||||||
Allocated Share-based Compensation Expense | $ 53,000 | $ 14,000 | ||||||||
Incentive Stock Options [Member] | The 2010 Stock Option Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award Stockholder Percentage | 10.00% | |||||||||
Non-qualified Stock Options [Member] | The 2003 Outside Directors Stock Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,423 | 2,577 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 3,423 | 2,577 | ||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 4.19 | $ 2.79 | $ 2.79 | |||||||
Proceeds from Stock Options Exercised | $ 9,600 | $ 7,200 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 12,000 | |||||||||
Director Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | [1] | 10 years | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | |||||||||
Allocated Share-based Compensation Expense | $ 39,000 | $ 48,000 | ||||||||
Share-based Compensation Maximum Contractual Term | 10 years | |||||||||
The 2010 Stock Option Plan [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |||||||||
The 2010 Stock Option Plan [Member] | Chief Operating Officer [Member] | ||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 7.85 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 60,000 | |||||||||
The 2010 Stock Option Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 0 | |||||||||
Percentage of Fair Market Value of Common Stock to Determine Number of Shares to Directors | 110.00% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 200,000 | |||||||||
Rights Plan [Member] | ||||||||||
Date of Rights Expiration | May 2, 2018 | |||||||||
Common Stock Ownership Percentage Trigger for Share Rights | 20.00% | |||||||||
Share Multiplier for Common Stockholders not Part of Non-board Approved Shareholders | 2 | |||||||||
Acquired Percentage of the Company that Triggers Share Rights | 50.00% | |||||||||
Purchase Price Multiplier for Common Stockholder When Acquired Percentage is Triggered | 2 | |||||||||
Purchase Price of Rights | $ 13 | |||||||||
Purchase Price for Repurchase of Rights | $ 0.001 | |||||||||
The 2003 Outside Directors Stock Plan [Member] | Maximum [Member] | ||||||||||
Share-base Compensation Arrangement by Share-based Payment Award Percentage of Stock in Lieu of Fee Payable | 100.00% | 100.00% | ||||||||
The 2003 Outside Directors Stock Plan [Member] | Minimum [Member] | ||||||||||
Share-base Compensation Arrangement by Share-based Payment Award Percentage of Stock in Lieu of Fee Payable | 65.00% | 65.00% | ||||||||
The 2003 Outside Directors Stock Plan [Member] | Portion of Director Fees Earned in Common Stock [Member] | ||||||||||
Allocated Share-based Compensation Expense | $ 269,000 | $ 273,000 | ||||||||
The 2003 Outside Directors Stock Plan [Member] | ||||||||||
Percentage of Fair Market Value of Common Stock to Determine Number of Shares to Directors | 75.00% | 75.00% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 800,000 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 71,324 | 67,335 | ||||||||
Third Amendment to 2003 Outside Directors Stock Plan [Member] | Reduced to [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award Number of Options Granted Upon Initial Election to Board | 6,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award Number of Options Granted Upon Re-electionto Board | 2,400 | |||||||||
The 2004 Stock Option Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 400,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 10 years | |||||||||
Robert Freguson and William Lampson Lenders [Member] | Warrant [Member] | ||||||||||
Class of Warrant or Right, Outstanding | 2 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 35,000 | 70,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.23 | $ 2.23 | ||||||||
Class of Warrant or Right, Issued During Period | 2 | |||||||||
Due to Related Parties | $ 3,000,000 | |||||||||
Warrant Period from Which Warrants or Rights Exercisable | 180 days | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 3,423 | 2,577 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | [2] | 169,533 | 167,223 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | [2] | 4 years 182 days | 4 years 73 days | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 4.19 | $ 4.70 | ||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 2.79 | |||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 14.75 | |||||||||
Allocated Share-based Compensation Expense | $ 92,000 | $ 34,000 | ||||||||
Stock Issued as Consideration for Debt | 90,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 288,200 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 12,000 | 71,800 | ||||||||
Reduction in Stock-based Compensation Expense | $ 54,000 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 86,000 | |||||||||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Not Yet Recognized, Next Twelve Months | 67,000 | |||||||||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost not yet Recognized in Year Two | $ 19,000 | |||||||||
[1] | The expected option life is based on historical exercises and post-vesting data. | |||||||||
[2] | Options with exercise prices ranging from $2.79 to $14.75 |
Note 5 - Company's Stock Option
Note 5 - Company's Stock Option Plans (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Options outstanding, shares (in shares) | 239,023 | [1] | 362,800 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 7.81 | [1] | $ 9.53 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 12,000 | 71,800 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 4.19 | $ 4.70 | ||
Exercised, shares (in shares) | (3,423) | (2,577) | ||
Exercised, weighted average exercise price (in dollars per share) | $ 2.79 | $ 2.79 | ||
Exercised, aggregate intrinsic value | [2] | $ 4,298 | $ 3,705 | |
Forfeited/Expired, shares (in shares) | (29,400) | (193,000) | ||
Forfeited/Expired, weighted average exercise price (in dollars per share) | $ 8.13 | |||
Options outstanding, shares (in shares) | [1] | 218,200 | 239,023 | |
Options outstanding, weighted average exercise price (in dollars per share) | [1] | $ 7.65 | $ 7.81 | |
Options outstanding, weighted average remaining contractual term | [1] | 4 years 292 days | 4 years 328 days | |
Options outstanding , aggregate intrinsic value | [1],[2] | $ 14,676 | $ 41,957 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | [1] | 169,533 | 167,223 | |
Options exercisable, weighted average exercise price (in dollars per share) | [1] | $ 8.47 | $ 9.15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | [1] | 4 years 182 days | 4 years 73 days | |
Options exercisable, aggregate intrinsic value | [1],[2] | $ 14,676 | $ 31,037 | |
Options vested and expected to be vested, shares (in shares) | 212,333 | 230,223 | ||
Options vested and expected to be vested, weighted average exercise price (in dollars per share) | $ 7.72 | $ 7.92 | ||
Options vested and expected to be vested, weighted average remaining contractual term | 4 years 292 days | 4 years 328 days | ||
Options vested and expected to be vested, aggregate intrinsic value | [2] | $ 14,676 | $ 41,957 | |
Forfeited/Expired, weighted average exercise price (in dollars per share) | $ 9.95 | |||
[1] | Options with exercise prices ranging from $2.79 to $14.75 | |||
[2] | The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. |
Note 5 - Nonvested Shares (Deta
Note 5 - Nonvested Shares (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Non-vested options January 1, 2015 (in shares) | 71,800 | |
Non-vested options January 1, 2015 (in dollars per share) | $ 2.85 | |
Granted (in shares) | 12,000 | 71,800 |
Granted (in dollars per share) | $ 2.84 | |
Vested (in shares) | (35,133) | |
Vested (in dollars per share) | $ 2.81 | |
Non-vested options at December 31, 2015 (in shares) | 48,667 | 71,800 |
Non-vested options at December 31, 2015 (in dollars per share) | $ 2.87 | $ 2.85 |
Note 5 - Black-Scholes Valuatio
Note 5 - Black-Scholes Valuation Model Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Director Stock Options [Member] | |||
Weighted-average fair value per share (in dollars per share) | $ 2.84 | $ 2.73 | |
Risk -free interest rate (1) | [1] | 2.21% | 2.63% |
Expected volatility of stock (2) | [2] | 57.98% | 59.59% |
Dividend yield | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | [3] | 10 years | 10 years |
Employee Stock Option [Member] | |||
Weighted-average fair value per share (in dollars per share) | $ 2.88 | ||
Risk -free interest rate (1) | [1] | 1.91% | |
Expected volatility of stock (2) | [2] | 61.84% | |
Dividend yield | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | [3] | 6 years | |
[1] | The risk-free interest rate is based on the U.S. Treasury yield in effect at the grant date over the expected term of the option. | ||
[2] | The expected volatility is based on historical volatility from our traded Common Stock over the expected term of the option. | ||
[3] | The expected option life is based on historical exercises and post-vesting data. |
Note 5 - Stock-based Compensati
Note 5 - Stock-based Compensation Recognized (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense | $ 53,000 | $ 14,000 |
Allocated stock-based compensation | (53,000) | (14,000) |
Director Stock Options [Member] | ||
Allocated Share-based Compensation Expense | 39,000 | 48,000 |
Allocated stock-based compensation | (39,000) | (48,000) |
Allocated Share-based Compensation Expense | 92,000 | 34,000 |
Allocated stock-based compensation | $ (92,000) | $ (34,000) |
Note 6 - Basic and Diluted Inco
Note 6 - Basic and Diluted Income (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income (loss) from continuing operations attributable to Perma-Fix Environmental Services, Inc. common stockholders | $ 814 | $ (2,913) |
(Loss) income from discontinued operations, net of taxes | (1,864) | 1,688 |
Net loss attributable to Perma-Fix Environmental Services, Inc. common stockholders | $ (1,050) | $ (1,225) |
Basic loss per share attributable to Perma-Fix Environmental Services, Inc. common stockholders (in dollars per share) | $ (0.09) | $ (0.11) |
Diluted loss per share attributable to Perma-Fix Environmental Services, Inc. common stockholders (in dollars per share) | $ (0.09) | $ (0.11) |
Basic (in shares) | 11,516 | 11,443 |
Add: dilutive effect of stock options (in shares) | 6 | |
Add: dilutive effect of warrants (in shares) | 30 | |
Diluted weighted average shares outstanding (in shares) | 11,552 | 11,443 |
Stock options (in shares) | 183 | 201 |
Note 7 - Preferred Stock Issu54
Note 7 - Preferred Stock Issuance and Conversion (Details Textual) - Series B Preferred Stock [Member] - USD ($) | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2006 | Dec. 31, 2005 | Dec. 31, 2004 | Dec. 31, 2003 | |
Other Noncurrent Liabilities [Member] | |||||||||||||
Preferred Stock of Subsidiary Accrued Dividends | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 | $ 64,000 |
Preferred Stock, Liquidation Preference Per Share | $ 1 | ||||||||||||
Preferred Stock of Subsidiary Redeemable Price per Share | $ 1 | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||||||||||
Preferred Stock of Subsidiary per Share Amount on Which Dividend Rate Applied | $ 1 | ||||||||||||
Dividends Payable | $ 867,000 |
Note 8 - Discontinued Operati55
Note 8 - Discontinued Operations and Divestitures (Details Textual) | Dec. 07, 2015USD ($) | Sep. 29, 2015USD ($) | Jul. 02, 2015USD ($) | Jun. 04, 2015USD ($) | Aug. 14, 2014USD ($) | Jul. 29, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 04, 2015USD ($) |
PFSG [Member] | PFSG Facility Fire Damage [Member] | ||||||||||||
Maximum Deductible Amount in Insurance for General Liability | $ 300,000 | |||||||||||
Proceeds from Insurance Settlement, Investing Activities | $ 3,850,000 | |||||||||||
Disposal Group, Including Discontinued Operation, Gain (Loss) on Insurance Settlement | $ 3,842,000 | |||||||||||
PFSG [Member] | Interest Expense [Member] | Arbitration with Contractor [Member] | ||||||||||||
Loss Contingency, Loss in Period | $ 400,000 | |||||||||||
PFSG [Member] | Arbitration with Contractor [Member] | Interest of Unpaid Invoices [Member] | ||||||||||||
Loss Contingency, Damages Sought, Value | 600,000 | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 400,000 | |||||||||||
PFSG [Member] | Arbitration with Contractor [Member] | Contract Penalties [Member] | ||||||||||||
Loss Contingency, Damages Sought, Value | 800,000 | |||||||||||
PFSG [Member] | Arbitration with Contractor [Member] | Attorney Fees [Member] | ||||||||||||
Loss Contingency, Damages Sought, Value | 500,000 | |||||||||||
Loss Contingency, Damages Awarded, Value | 125,000 | |||||||||||
PFSG [Member] | Arbitration with Contractor [Member] | Unpaid Invoices [Member] | ||||||||||||
Loss Contingency, Damages Awarded, Value | 747,000 | |||||||||||
PFSG [Member] | Arbitration with Contractor [Member] | Administrative Fees [Member] | ||||||||||||
Loss Contingency, Damages Awarded, Value | 6,000 | |||||||||||
PFSG [Member] | Arbitration with Contractor [Member] | ||||||||||||
Loss Contingency, Damages Sought, Value | 1,400,000 | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 1,278,000 | |||||||||||
Loss Contingency Accrual | 871,000 | $ 871,000 | ||||||||||
Loss Contingency, Loss in Period | 407,000 | |||||||||||
PFSG [Member] | ||||||||||||
Tangible Asset Impairment Charges | 723,000 | |||||||||||
Payments for Hazardous Waste Management and Permit Violations | $ 201,200 | |||||||||||
PFMI [Member] | Loss Income from Discontinued Operations, Net of Taxes [Member] | ||||||||||||
Asset Impairment Charges | $ 150,000 | |||||||||||
PFMI [Member] | ||||||||||||
Letter of Intent Receivable for Property Discontinued Operations | $ 450,000 | $ 450,000 | ||||||||||
Escrow Deposits Related to Property Sales | 20,000 | |||||||||||
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | (38,000) | |||||||||||
Escrow Deposit | $ 20,000 | |||||||||||
PFSG and PFM [Member] | ||||||||||||
Payments for Environmental Liabilities | 78,000 | |||||||||||
SYA [Member] | Other Expense [Member] | ||||||||||||
Gain (Loss) on Disposition of Business | (53,000) | |||||||||||
SYA [Member] | ||||||||||||
Proceeds from Divestiture of Businesses | $ 1,300,000 | |||||||||||
Disposal Group Capital Stock Sold Percentage | 100.00% | |||||||||||
Disposal Group Working Capital Adjustment | $ 60,000 | (42,000) | ||||||||||
Escrow Deposit | $ 50,000 | $ 50,000 | ||||||||||
Escrow Deposit Term | 1 year | |||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | $ 96,000 | |||||||||||
Gain (Loss) on Disposition of Business | (53,000) | |||||||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | 0 | |||||||||||
Not Held for Sale [Member] | ||||||||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 10,000 | $ 10,000 | ||||||||||
Number of Previously Shut Down Locations | 2 | |||||||||||
Disposal Group, Including Discontinued Operation, Gain (Loss) on Insurance Settlement | 3,842,000 | |||||||||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 49,707,000 | $ 49,707,000 | 47,123,000 | |||||||||
Number of Remediation Projects | 3 | |||||||||||
Accrual for Environmental Loss Contingencies | 900,000 | $ 900,000 | 1,016,000 | |||||||||
Accrued Environmental Loss Contingencies, Current | $ 9,000 | 9,000 | ||||||||||
Accrual for Environmental Loss Contingencies, Period Increase (Decrease) | $ (116,000) | |||||||||||
Gain (Loss) on Disposition of Business | (53,000) | |||||||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | $ 51,000 | $ (46,000) |
Note 8 - Discontinued Operati56
Note 8 - Discontinued Operations Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest expense | $ (401) | $ (6) |
Operating (loss) income from discontinued operations | $ (1,915) | (2,108) |
Disposal Group, Including Discontinued Operation, Gain (Loss) on Insurance Settlement | 3,842 | |
Income tax (benefit) expense | $ (51) | 46 |
(Loss) income from discontinued operations | $ (1,864) | $ 1,688 |
Note 8 - Discontinued Operati57
Note 8 - Discontinued Operations Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Property | $ 450 | $ 600 | |
Total assets held for sale | 450 | 600 | |
Other assets | 34 | 20 | |
Total current assets | 34 | 20 | |
Property, plant and equipment, net (1) | [1] | 81 | 81 |
Total long-term assets | 81 | 81 | |
Total assets not held for sale | 115 | 101 | |
Accounts payable | 85 | 947 | |
Accrued expenses and other liabilities | 437 | 462 | |
Environmental liabilities | 9 | 728 | |
Total current liabilities | 531 | 2,137 | |
Closure liabilities | 173 | 302 | |
Environmental liabilities | 891 | 288 | |
Total long-term liabilities | 1,064 | 590 | |
Total liabilities not held for sale | $ 1,595 | $ 2,727 | |
[1] | net of accumulated depreciation of $10,000 for each period presented. |
Note 8 - Current and Long-term
Note 8 - Current and Long-term Accrued Environmental Liabilities (Details) | Dec. 31, 2015USD ($) |
PFD [Member] | |
Current Accual | $ 9,000 |
Long-term Accrual | 60,000 |
Total | $ 69,000 |
PFM [Member] | |
Current Accual | |
Long-term Accrual | $ 15,000 |
Total | $ 15,000 |
PFSG [Member] | |
Current Accual | |
Long-term Accrual | $ 816,000 |
Total | 816,000 |
Current Accual | 9,000 |
Long-term Accrual | 891,000 |
Total | $ 900,000 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) - USD ($) | Mar. 24, 2016 | Jun. 30, 2014 | Aug. 02, 2013 | Oct. 31, 2011 | Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 12, 2013 |
Warrant [Member] | ||||||||
Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||||
Fair Value Assumptions, Expected Volatility Rate | 55.54% | |||||||
Fair Value Assumptions, Risk Free Interest Rate | 0.59% | |||||||
Fair Value Assumptions, Expected Term | 3 years | |||||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Amendment 7 [Member] | PNC Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | |||||||
Line of Credit Facility Reduction | 1,500,000 | |||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Term Loan [Member] | ||||||||
Long-term Debt | 6,100,000 | |||||||
Debt Instrument, Periodic Payment, Principal | $ 102,000 | |||||||
Debt Instrument, Term | 5 years | |||||||
Subsequent Event [Member] | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 1,486,000 | |||||||
Revolving Credit Facility [Member] | Amended Loan Agreement [Member] | PNC Bank [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | |||||||
Revolving Credit Facility [Member] | PNC Bank [Member] | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 2,687,000 | |||||||
Line of Credit Facility Reduction | $ 1,500,000 | |||||||
Amendment 4 [Member] | PNC Bank [Member] | Term Loan [Member] | ||||||||
Long-term Debt | 16,000,000 | |||||||
Debt Instrument, Periodic Payment, Principal | $ 190,000 | |||||||
Debt Instrument, Term | 7 years | |||||||
Amendment 6 [Member] | PNC Bank [Member] | PFSG [Member] | ||||||||
Line of Credit Facility Reduction | $ 1,500,000 | |||||||
Proceeds from Insurance Settlement, Investing Activities | $ 3,850,000 | |||||||
Promissory Notes and Installment Agreements [Member] | TNC [Member] | ||||||||
Debt Instrument, Annual Principal Payment | $ 230,000 | |||||||
Repayments of Unsecured Debt | $ 10,000 | |||||||
Promissory Note Dated August 2, 2013 [Member] | Lenders [Member] | ||||||||
Proceeds from Issuance of Long-term Debt | $ 3,000,000 | |||||||
Number of Shares Issued to Each Lender on Warrant | 35,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.23 | |||||||
Warrants Exercisable Term | 180 days | |||||||
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 59,000 | |||||||
Stock Issued During Period, Shares, Other | 90,000 | |||||||
Number of Shares Received by each Lender | 45,000 | |||||||
Stock Issued During Period, Value, Other | $ 200,000 | |||||||
Maximum Number of Payoffs of Shares in Terms of Outstanding Equity | 20.00% | |||||||
Long-term Debt | $ 9,988,000 | $ 11,372,000 | ||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 2,508,000 | |||||||
Debt Instrument, Unamortized Discount | $ 50,000 | $ 137,000 | ||||||
Share Price | $ 2.23 |
Note 9 - Long-term Debt Instrum
Note 9 - Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Revolving Credit [Member] | |||
Long-term Debt | $ 2,349 | [1] | |
Term Loan [Member] | |||
Long-term Debt | 6,666 | [1] | $ 8,952 |
Promissory Note Dated August 2, 2013 [Member] | |||
Long-term Debt | $ 950 | 2,363 | |
Promissory Note Dated February 12, 2013 ("New Note") [Member] | |||
Long-term Debt | 10 | ||
Long-term Debt | $ 9,988 | 11,372 | |
Capital lease (interest at rate of 6.0%) | 23 | 47 | |
Less current portion of long-term debt | 2,458 | 3,733 | |
$ 7,530 | $ 7,639 | ||
[1] | As discussed in Note 17 - "Subsequent Events," on March 24, 2016, the Company entered into an amendment to its Amended Loan Agreement (see discussion below), dated October 31, 2011, with PNC Bank, National Association ("PNC") which extended the due date of our current Credit Facility from October 31, 2016 to March 24, 2021 (the amendment, together with the Amended Loan Agreement, is collectively known as the "Revised Loan Agreement"). Pursuant to the Revised Loan Agreement, the revolving line of credit is to remain at up to $12,000,000 (subject to the amount of borrowings based on a percentage of eligible receivables as previously defined under the Amended Loan Agreement) with the term loan revised to $6,100,000, with monthly payment of approximately $102,000. In accordance with ASC 470, "Debt," this post balance-sheet date agreement demonstrated the Company's ability to refinance its short-term obligations on a long-term basis; therefore, the Company has reclassified the current portion of the outstanding debt to long-term except for $1,486,000 in principal payments that will be due by December 31, 2016 (see Note 17 - "Subsequent Events" for further details of this Revised Loan Agreement). |
Note 9 - Long-term Debt Instr61
Note 9 - Long-term Debt Instruments (Details) (Parentheticals) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Revolving Credit [Member] | Prime Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | [1] | 2.00% | 2.00% |
Revolving Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | [1] | 3.00% | 3.00% |
Revolving Credit [Member] | |||
Reference rate | [1] | 3.50% | 3.50% |
Effective interest rate | [1] | 4.00% | 4.10% |
Term Loan [Member] | Prime Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | [1] | 2.50% | 2.50% |
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | [1] | 3.50% | 3.50% |
Term Loan [Member] | |||
Effective interest rate | [1] | 3.70% | 3.70% |
Periodic payment, principal | [1] | $ 190 | $ 190 |
Promissory Note Dated August 2, 2013 [Member] | |||
Effective interest rate | [2],[3] | 2.99% | 2.99% |
Periodic payment, principal | [2],[3] | $ 125 | $ 125 |
Number of monthly installments, interest only | [2],[3] | 12 | 12 |
Number of monthly installments | [2],[3] | 24 | 24 |
Promissory Note Dated February 12, 2013 ("New Note") [Member] | |||
Effective interest rate | [3] | 6.00% | 6.00% |
Periodic payment, principal | [3] | $ 10 | $ 10 |
Effective interest rate | 6.00% | 6.00% | |
[1] | Our Revolving Credit facility is collateralized by our accounts receivable and our Term Loan is collateralized by our property, plant, and equipment. | ||
[2] | Net of debt discount of ($50,000) and ($137,000) at December 31, 2015 and December 31, 2014, respectively. See "Promissory Notes and Installment Agreements" below for additional information. | ||
[3] | Uncollateralized note. |
Note 9 - Maturities of Long-ter
Note 9 - Maturities of Long-term Debt Maturing in Future Years (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 2,508 |
Beyond 2,016 | 7,530 |
Total | $ 10,038 |
Note 10 - Accrued Expenses (Det
Note 10 - Accrued Expenses (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Management Incentive Plans [Member] | ||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 214,000 | $ 0 |
Note 10 - Summary of Accrued Ex
Note 10 - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Salaries and employee benefits | $ 2,822 | $ 2,935 |
Accrued sales, property and other tax | 202 | 410 |
Interest payable | 9 | 22 |
Insurance payable | 833 | 546 |
Other | 475 | 627 |
Total accrued expenses | $ 4,341 | $ 4,540 |
Note 11 - Accrued Closure Cos65
Note 11 - Accrued Closure Costs and ARO (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Perma-Fix Northwest Richland, Inc [Member] | |
Asset Retirement Obligation, Liabilities Settled | $ 331,000 |
Asset Retirement Obligation, Revision of Estimate | (175,000) |
Asset Retirement Obligation, Liabilities Settled | 331,000 |
Asset Retirement Obligation, Revision of Estimate | $ (175,000) |
Note 11 - Reported Closure Liab
Note 11 - Reported Closure Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance | $ 5,508 | $ 5,222 |
Accretion expense | 299 | 286 |
Balance | 5,301 | $ 5,508 |
Payments | (331) | |
Asset Retirement Obligation, Revision of Estimate | $ (175) |
Note 11 - Reported Closure Asse
Note 11 - Reported Closure Asset (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance | $ 2,870 | $ 2,961 |
Amortization of closure and post-closure asset | (152) | (91) |
Balance | 2,575 | $ 2,870 |
Adjustment to closure and post-closure asset | $ (143) |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent | 34.00% | |
Deferred Tax Assets, Valuation Allowance | $ 8,592,000 | $ 7,896,000 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 56,000 | 216,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 4,651,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 52,784,000 | |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 26,000 | |
Accrued Income Taxes | $ 32,000 | $ 85,000 |
Note 12 - Components of Current
Note 12 - Components of Current and Deferred Federal and State Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal income tax expense (benefit) - current | $ 116 | $ (121) |
Federal income tax expense - deferred | 142 | 530 |
State income tax expense (benefit) - current | 9 | (1) |
State income tax expense - deferred | 276 | 9 |
Total income tax expense | $ 543 | $ 417 |
Note 12 - Deferred Tax Assets a
Note 12 - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Net operating losses | $ 4,566,000 | $ 4,611,000 |
Environmental and closure reserves | 2,497,000 | 2,520,000 |
Other | 2,800,000 | 3,129,000 |
Depreciation and amortization | (1,130,000) | (2,322,000) |
Goodwill and indefinite lived intangible assets | $ (5,443,000) | (5,006,000) |
Investment | (25,000) | |
Prepaid expenses | $ (122,000) | (17,000) |
3,168,000 | 2,890,000 | |
Valuation allowance | (8,592,000) | (7,896,000) |
Net deferred income tax liabilities | $ (5,424,000) | $ (5,006,000) |
Note 12 - Income Tax Expense (B
Note 12 - Income Tax Expense (Benefit) Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Tax expense (benefit) at statutory rate | $ 166,000 | $ (864,000) |
State tax benefit, net of federal benefit | (93,000) | $ (66,000) |
Change in deferred tax rates | 208,000 | |
Permanent items | $ 84,000 | $ 137,000 |
Non-deductible Goodwill | 129,000 | |
Difference in foreign rate | $ 40,000 | 98,000 |
Reversal of deferred tax assets for divested facility (SYA) | 99,000 | |
Reversal of deferred tax assets on stock compensation | $ 593,000 | |
Change in deferred tax liabilities | $ 206,000 | |
Other | (124,000) | $ 75,000 |
Increase in valuation allowance | 56,000 | 216,000 |
Income tax expense | $ 543,000 | $ 417,000 |
Note 12 - Reconciliation of Unr
Note 12 - Reconciliation of Unrecognized Tax Expense (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014USD ($) | ||
Balances at beginning of year | $ 180 | |
Reduction related to prior year tax position | $ (180) | [1] |
[1] | Includes $26,000 in interest and penalties. |
Note 13 - Commitments and Con73
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) | Aug. 31, 2007 | Jun. 30, 2003 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
American International Group, Inc [Member] | Perma-Fix Northwest Richland, Inc [Member] | Minimum [Member] | |||||
Renewal Fee for Additional Year under Second Insurance Policy | $ 41,000 | ||||
American International Group, Inc [Member] | Perma-Fix Northwest Richland, Inc [Member] | Maximum [Member] | |||||
Renewal Fee for Additional Year under Second Insurance Policy | 46,000 | ||||
American International Group, Inc [Member] | Perma-Fix Northwest Richland, Inc [Member] | |||||
Interest Income, Other | $ 15,000 | $ 7,000 | |||
Financial Assurance Coverage Amount under Second Insurance Policy | $ 7,800,000 | ||||
Annual Growth Rate of Financial Assurance Coverage Amount Under Second Insurance Policy | 1.50% | ||||
Maximum Financial Assurance Coverage Amount Under Second Insurance Policy | $ 8,200,000 | ||||
Sinking Fund Related to Second Insurance Policy | 5,920,000 | 5,905,000 | 5,920,000 | ||
Interest Earned on Sinking Fund under Second Insurance Policy | $ 220,000 | 205,000 | 220,000 | ||
Period of Finite Second Insurance Policy | 4 years | ||||
American International Group, Inc [Member] | |||||
Period of Finite Risk Insurance Policy | 25 years | ||||
Maximum Allowable Coverage of Insurance Policy | $ 39,000,000 | 39,000,000 | |||
Financial Assurance Coverage Amount under Insurance Policy | 38,454,000 | 38,454,000 | |||
Sinking Fund Related to Insurance Policy | 15,460,000 | 15,429,000 | 15,460,000 | ||
Interest Earned on Sinking Fund | 989,000 | 958,000 | $ 989,000 | ||
Interest Income, Other | $ 31,000 | 20,000 | |||
Insurers Obligation to Entity on Termination of Contract | 100.00% | 100.00% | |||
Non-Cancelable Operating Leases [Member] | |||||
Operating Leases, Rent Expense | $ 659,000 | 826,000 | |||
Bonds and Letters of Credit Outstanding Amount | 1,738,000 | ||||
Operating Leases, Rent Expense, Net | $ 976,000 | $ 1,158,000 |
Note 13 - Operating Leases (Det
Note 13 - Operating Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
2,016 | $ 675 |
2,017 | 670 |
2,018 | $ 194 |
beyond 2,018 | |
Total | $ 1,539 |
Note 14 - Profit Sharing Plan (
Note 14 - Profit Sharing Plan (Details Textual) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Minimum Age for Full Time Employees to Participate In Plan | 18 |
Number of Quarterly Open Periods for Enrollment | 4 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100.00% |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 25.00% |
Defined Contribution Plan Employers Contribution Vesting Period | 5 years |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 303,000 |
Note 15 - Related Party Trans76
Note 15 - Related Party Transactions (Details Textual) - USD ($) | Jun. 02, 2015 | Jun. 01, 2011 | Sep. 30, 2014 | Mar. 31, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 02, 2013 |
Mr David Centofanti [Member] | Director of Information Services [Member] | |||||||
Compensation | $ 168,000 | $ 163,000 | |||||
Mr Robert L Ferguson [Member] | Advisory Services [Member] | |||||||
Monthly Consulting Fees | 4,000 | ||||||
Related Party Transaction, Amounts of Transaction | 58,000 | 56,000 | |||||
Robert Freguson and William Lampson Lenders [Member] | |||||||
Notes Payable, Related Parties | $ 3,000,000 | ||||||
Mr. Climaco [Member] | Executive Vice President of PF Medical [Member] | |||||||
Compensation | $ 150,000 | ||||||
Mr. Climaco [Member] | Consultant [Member] | |||||||
Related Party Transaction, Amounts of Transaction | 117,000 | 107,000 | |||||
Mr. Climaco [Member] | Monthly Consulting Fee [Member] | |||||||
Monthly Consulting Fees | $ 22,000 | ||||||
President [Member] | Lawrence Properties LLC [Member] | SYA [Member] | |||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | ||||||
Operating Leases Rent Expense Monthly | $ 11,400 | ||||||
Operating Leases, Rent Expense | $ 72,000 | ||||||
Management Incentive Plans [Member] | |||||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 214,000 |
Note 16 - Segment Reporting (De
Note 16 - Segment Reporting (Details Textual) - USD ($) | Jul. 29, 2014 | Aug. 02, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Credit Concentration Risk [Member] | Sales Revenue, Services, Net [Member] | Federal Government [Member] | ||||
Revenue, Net | $ 36,105,000 | $ 34,780,000 | ||
Concentration Risk, Percentage | 57.90% | 60.90% | ||
Services [Member] | SYA [Member] | ||||
Goodwill, Impairment Loss | $ 380,000 | |||
Services [Member] | ||||
Revenue, Net | $ 21,065,000 | $ 14,722,000 | ||
SYA [Member] | ||||
Goodwill, Impairment Loss | 380,000 | |||
Number of Reportable Segments | 3 | |||
Revenue, Net | $ 62,383,000 | 57,065,000 | ||
Assets of Disposal Group Including Discontinued Operation Including Not Held for Sale | 565,000 | 701,000 | ||
Debt Instrument, Unamortized Discount | $ 50,000 | 137,000 | ||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 2 | |||
Stock Issued as Consideration for Debt | 90,000 | |||
Debt Instrument, Face Amount | $ 3,000,000 | |||
Goodwill, Impairment Loss | $ 380,000 |
Note 16 - Segment Financial Inf
Note 16 - Segment Financial Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | ||||
Treatment [Member] | |||||
Revenue, Net | $ 41,318,000 | $ 42,343,000 | |||
Intercompany revenues | 113,000 | 12,000 | |||
Gross profit | 10,910,000 | 10,480,000 | |||
Research and Development Expense | 179,000 | $ 437,000 | |||
Interest income | 6,000 | ||||
Interest expense | (38,000) | $ (38,000) | |||
Interest expense-financing fees | (2,000) | ||||
Depreciation and amortization | 2,949,000 | $ 3,281,000 | |||
Segment income (loss) before income taxes | 7,101,000 | 6,149,000 | |||
Total income tax expense | 538,000 | 604,000 | |||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 6,563,000 | 5,545,000 | |||
Segment assets | [1] | 46,307,000 | 50,226,000 | ||
Expenditures for segment assets | 579,000 | 399,000 | |||
Total debt | 23,000 | 47,000 | |||
Services [Member] | |||||
Revenue, Net | 21,065,000 | 14,722,000 | |||
Intercompany revenues | 25,000 | 70,000 | |||
Gross profit | $ 3,441,000 | 1,428,000 | |||
Research and Development Expense | $ 99,000 | ||||
Interest income | |||||
Interest expense | $ (1,000) | ||||
Interest expense-financing fees | 2,000 | ||||
Depreciation and amortization | $ 725,000 | 910,000 | |||
Segment income (loss) before income taxes | $ 1,178,000 | (2,184,000) | [2] | ||
Total income tax expense | (191,000) | ||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ 1,178,000 | (1,993,000) | [2] | ||
Segment assets | [1] | 9,481,000 | 8,920,000 | ||
Expenditures for segment assets | $ 33,000 | $ 64,000 | |||
Total debt | |||||
Medical [Member] | |||||
Revenue, Net | |||||
Intercompany revenues | |||||
Gross profit | |||||
Research and Development Expense | $ 2,114,000 | $ 759,000 | |||
Interest income | |||||
Interest expense | |||||
Interest expense-financing fees | |||||
Depreciation and amortization | |||||
Segment income (loss) before income taxes | $ (2,114,000) | $ (759,000) | |||
Total income tax expense | |||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ (2,114,000) | $ (759,000) | |||
Segment assets | [1] | $ 1,793,000 | $ 1,213,000 | ||
Expenditures for segment assets | |||||
Total debt | |||||
Segments Total [Member] | |||||
Revenue, Net | [3] | $ 62,383,000 | $ 57,065,000 | ||
Intercompany revenues | [3] | 138,000 | 82,000 | ||
Gross profit | [3] | 14,351,000 | 11,908,000 | ||
Research and Development Expense | [3] | 2,293,000 | $ 1,295,000 | ||
Interest income | 6,000 | [3] | |||
Interest expense | [3] | (38,000) | $ (39,000) | ||
Interest expense-financing fees | [3] | (2,000) | 2,000 | ||
Depreciation and amortization | [3] | 3,674,000 | 4,191,000 | ||
Segment income (loss) before income taxes | [3] | 6,165,000 | 3,206,000 | ||
Total income tax expense | [3] | 538,000 | 413,000 | ||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | [3] | 5,627,000 | 2,793,000 | ||
Segment assets | [1],[3] | 57,581,000 | 60,359,000 | ||
Expenditures for segment assets | [3] | 612,000 | 463,000 | ||
Total debt | [3] | $ 23,000 | $ 47,000 | ||
Corporate Segment [Member] | |||||
Revenue, Net | |||||
Intercompany revenues | |||||
Gross profit | |||||
Research and Development Expense | [4] | $ 9,000 | $ 20,000 | ||
Interest income | [4] | 47,000 | 27,000 | ||
Interest expense | [4] | (451,000) | (577,000) | ||
Interest expense-financing fees | [4] | (226,000) | (194,000) | ||
Depreciation and amortization | [4] | 43,000 | 49,000 | ||
Segment income (loss) before income taxes | [4] | (5,685,000) | (5,781,000) | ||
Total income tax expense | [4] | 5,000 | 4,000 | ||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | [4] | (5,690,000) | (5,785,000) | ||
Segment assets | [1],[5] | 25,484,000 | [4] | 27,892,000 | |
Expenditures for segment assets | [4] | 11,000 | 1,000 | ||
Total debt | [4],[6] | 9,965,000 | 11,325,000 | ||
Revenue, Net | $ 62,383,000 | $ 57,065,000 | |||
Intercompany revenues | |||||
Gross profit | $ 14,351,000 | $ 11,908,000 | |||
Research and Development Expense | 2,302,000 | 1,315,000 | |||
Interest income | 53,000 | 27,000 | |||
Interest expense | (489,000) | (616,000) | |||
Interest expense-financing fees | (228,000) | (192,000) | |||
Depreciation and amortization | 3,717,000 | 4,240,000 | |||
Segment income (loss) before income taxes | 480,000 | (2,575,000) | |||
Total income tax expense | 543,000 | 417,000 | |||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | (63,000) | (2,992,000) | |||
Segment assets | [1] | 83,065,000 | 88,251,000 | ||
Expenditures for segment assets | 623,000 | 464,000 | |||
Total debt | $ 9,988,000 | $ 11,372,000 | |||
[1] | Segment assets have been adjusted for intercompany accounts to reflect actual assets for each segment. | ||||
[2] | Included goodwill impairment charge of $380,000 recorded for the Company's SYA subsidiary which was divested on July 29, 2014. | ||||
[3] | The Company performed services relating to waste generated by the federal government, either directly as a prime contractor or indirectly as a subcontractor to the federal government, representing approximately $36,105,000 or 57.9% of total revenue from continuing operations during 2015 and $34,780,000 or 60.9% of total revenue from continuing operations during 2014. | ||||
[4] | Amounts reflect the activity for corporate headquarters not included in the segment information. | ||||
[5] | Amount includes assets from our discontinued operations of $565,000 and $701,000, as of December 31, 2015 and 2014, respectively. | ||||
[6] | Net of debt discount of ($50,000) and ($137,000) for 2015 and 2014, respectively, based on the estimated fair value at issuance of two Warrants and 90,000 shares of the Company's Common Stock issued on August 2, 2013 in connection with a $3,000,000 promissory note entered into by the Company and Messrs. William Lampson and Robert L. Ferguson. See Note 9 – "Long-Term Debt – Promissory Note and Installment Agreement" for additional information. |
Note 16 - Segment Revenue by Cu
Note 16 - Segment Revenue by Customer (Details) - Federal Government [Member] - USD ($) | 12 Months Ended | 24 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
Treatment [Member] | ||
Revenues | $ 30,130,000 | $ 29,786,000 |
Services [Member] | ||
Revenues | 5,975,000 | 4,994,000 |
Revenues | $ 36,105,000 | $ 34,780,000 |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) | Mar. 24, 2016USD ($) | Mar. 23, 2016USD ($) | Feb. 17, 2016USD ($) | Feb. 04, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 29, 2015USD ($) | Dec. 31, 2014USD ($) |
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | After March 23, 2019 [Member] | |||||||||
Debt Instrument Percentage of Total Finacing to be Paid Upon Early Retirement of Debt Obligations | 0.00% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Pays Off on or Before March 23, 2017 [Member] | |||||||||
Debt Instrument Percentage of Total Finacing to be Paid Upon Early Retirement of Debt Obligations | 1.00% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Pays Off After March 23, 2017 But Prior to or on March 23, 2018 [Member] | |||||||||
Debt Instrument Percentage of Total Finacing to be Paid Upon Early Retirement of Debt Obligations | 0.50% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | After March 23, 2018 Prior to or on March 23, 2019 [Member] | |||||||||
Debt Instrument Percentage of Total Finacing to be Paid Upon Early Retirement of Debt Obligations | 0.25% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Term Loan [Member] | Prime Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Term Loan [Member] | |||||||||
Long-term Debt | $ 6,100,000 | ||||||||
Debt Instrument, Periodic Payment, Principal | $ 102,000 | ||||||||
Debt Instrument, Term | 5 years | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | ||||||||
Release of Borrowing Reduction on Line of Credit | 1,000,000 | ||||||||
Line of Credit Facility Reduction | 1,500,000 | ||||||||
Subsequent Event [Member] | Amendment 7 [Member] | PNC Bank [Member] | |||||||||
Debt Instrument, Annual Spending Limit for Capital Spending | 3,000,000 | $ 6,000,000 | |||||||
Debt Issuance Cost | $ 70,000 | ||||||||
Debt Instrument, Termination Notice | 90 days | ||||||||
Subsequent Event [Member] | PFMI [Member] | |||||||||
Escrow Deposit, Forfeit | $ 10,000 | ||||||||
Deposit Received, Held in Escrow | $ 10,000 | ||||||||
Subsequent Event [Member] | Management Incentive Plans [Member] | Chief Executive Officer [Member] | |||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Minimum, Percentage | 5.00% | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum, Percentage | 100.00% | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Minimum, Amount | $ 13,962 | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum, Amount | $ 279,248 | ||||||||
Subsequent Event [Member] | Management Incentive Plans [Member] | Chief Operating Officer [Member] | |||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Minimum, Percentage | 5.00% | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum, Percentage | 100.00% | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Minimum, Amount | $ 10,750 | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum, Amount | $ 215,000 | ||||||||
Subsequent Event [Member] | Management Incentive Plans [Member] | Chief Financial Officer [Member] | |||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Minimum, Percentage | 5.00% | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum, Percentage | 100.00% | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Minimum, Amount | $ 11,033 | ||||||||
Deferred Compensation Arrangement with Individual, Cash Awards Granted, Maximum, Amount | $ 220,667 | ||||||||
PNC Bank [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility Reduction | $ 1,500,000 | ||||||||
Scenario, Forecast [Member] | PFMI [Member] | Maximum [Member] | |||||||||
Credit Against Purchase Price | $ 15,000 | ||||||||
Scenario, Forecast [Member] | PFMI [Member] | |||||||||
Credit Against Purchase Price, Percentage of Funds Paid | 50.00% | ||||||||
Disposal Group, Including Discontinued Operation, Consideration Receive at Closing | $ 50,000 | $ 50,000 | |||||||
Escrow Deposit, Remaining Amount | 10,000 | 10,000 | |||||||
Disposal Group, Including Discontinued Operation, Consideration, After Closing | $ 375,000 | $ 375,000 | |||||||
Disposal Group, Including Discontinued Operation, Consideration, Number of Monthly Installment Payments | 60 | 60 | |||||||
Disposal Group, Including Discontinued Operation, Consideration, Installment Payment | $ 7,250 | ||||||||
PFMI [Member] | |||||||||
Escrow Deposit | $ 20,000 | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 450,000 | ||||||||
Long-term Debt | $ 9,988,000 | $ 11,372,000 |