Quarterly report pursuant to Section 13 or 15(d)

SEGMENT INFORMATION AND MAJOR CUSTOMERS

SEGMENT INFORMATION AND MAJOR CUSTOMERS

9 Months Ended

Sep. 30, 2018

NOTE 17 – SEGMENT INFORMATION AND MAJOR CUSTOMERS

The Company currently has identified three segments as follows:

	REGS	Industrial Cleaning
	MV and SEM	Environmental Solutions
	PWS	Solid Waste

Reach and PelleChar have had minimal operations through September 30, 2018.

The composition of our reportable segments is consistent with that used by our Chief Operating Decision Maker (“CODM”) to evaluate performance and allocate resources. All of our operations are located in the U.S. We have not allocated corporate selling, general and administrative expenses, and stock-based compensation to the segments. All intercompany transactions have been eliminated.

Segment information for the three months ended September 30, 2018 and 2017 is as follows:

2018	Industrial			Environmental			Solid
	Cleaning			Solutions			Waste			Corporate			Total
Revenue	$	795,500		$	797,400		$	93,600		$	—		$	1,686,500
Depreciation and amortization⁽¹⁾		55,500			32,400			5,200			20,500			113,600
Interest expense		11,500			2,400			—			439,100			453,000
Stock-based compensation		—			—			—			29,700			29,700
Net income (loss)		(259,000	)		(163,100	)		(53,000	)		(621,700	)		(1,096,800	)
Capital expenditures (cash and noncash)		—			—			—			—			—
Total assets	$	1,114,400		$	1,373,000		$	574,300		$	833,700		$	3,895,400

2017	Industrial			Environmental			Solid
	Cleaning⁽²⁾			Solutions			Waste			Corporate			Total⁽³⁾

Revenue	$	413,000		$	717,300		$	453,100		$	—		$	1,583,400
Depreciation and amortization⁽¹⁾		87,800			37,000			33,500			28,300			186,600
Interest expense		5,400			3,300			—			247,300			256,000
Stock-based compensation		—			—			—			37,200			37,200
Net income (loss)		(319,900	)		(64,700	)		(53,200	)		(940,200	)		(1,378,000	)
Capital expenditures (cash and noncash)		179,100			—			—			—			179,100
Total assets	$	673,400		$	1,749,800		$	1,451,800		$	1,802,900		$	5,677,900

Segment information for the nine months ended September 30, 2018 and 2017 is as follows:

2018	Industrial			Environmental		Solid
	Cleaning			Solutions		Waste			Corporate			Total
Revenue	$	2,515,500		$	3,216,600	$	279,000		$	—		$	6,011,100
Depreciation and amortization⁽¹⁾		189,700			109,500		34,300			61,800			395,300
Interest expense		38,600			7,400		—			1,386,600			1,432,600
Stock-based compensation		—			—		—			100,700			100,700
Net income (loss)		(568,800	)		294,400		(98,200	)		(2,543,600	)		(2,916,200	)
Capital expenditures (cash and noncash)		—			—		—			—			—
Total assets	$	1,114,400		$	1,373,000	$	574,300		$	833,700		$	3,895,400

2017	Industrial			Environmental		Solid
	Cleaning⁽²⁾			Solutions		Waste			Corporate			Total⁽³⁾

Revenue	$	1,803,000		$	4,268,800	$	596,900		$	—		$	6,668,700
Depreciation and amortization⁽¹⁾		257,700			153,400		108,700			75,500			595,300
Interest expense		17,800			12,300		100			1,182,300			1,212,500
Stock-based compensation		—			—		—			94,000			94,000
Net income (loss)		(789,100	)		395,700		(252,100	)		(2,967,400	)		(3,612,900	)
Capital expenditures (cash and noncash)		239,500			1,300		—			—			240,800
Total assets	$	673,400		$	1,749,800	$	1,451,800		$	1,802,900		$	5,677,900

(1)

Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.

(2)

Includes mobile rail car cleaning and excludes locations classified as discontinued operations.

(3)

Excludes discontinued operations.