Quarterly report pursuant to Section 13 or 15(d)

Segment Information and Major Customers

Segment Information and Major Customers

9 Months Ended

Sep. 30, 2019

NOTE 17 – SEGMENT INFORMATION AND MAJOR CUSTOMERS

The Company currently has identified three segments as follows:

	REGS	Industrial Cleaning
	MV, SEM, PelleChar	Environmental Solutions
	PWS	Solid Waste

Reach has had no operations through September 30, 2019.

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. The Company has 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 and nine months ended September 30, 2019 and 2018 is as follows:

Three Months ended

	Industrial			Environmental		Solid
2019	Cleaning			Solutions		Waste			Corporate			Total
Revenue	$	327,000		$	953,300	$	58,200		$	-		$	1,338,500
Depreciation and amortization (1)		35,700			9,900		10,800			24,900			81,300
Interest expense		10,600			1,200		-			173,800			185,600
Stock-based compensation		-			-		-			4,300			4,300
Net income (loss)		(480,300	)		225,400		(78,500	)		(146,600	)		(480,000	)
Capital expenditures (cash and noncash)		-			3,000		-			-			3,000
Total assets	$	528,000		$	1,351,100	$	333,500		$	825,300		$	3,037,900

	Industrial			Environmental			Solid
2018	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

Nine Months ended

	Industrial			Environmental		Solid
2019	Cleaning			Solutions		Waste			Corporate			Total
Revenue	$	1,052,400		$	2,934,000	$	205,600		$	-		$	4,192,000
Depreciation and amortization (1)		124,400			33,800		49,400			68,100			275,700
Interest expense		30,800			4,900		1,600			410,500			447,800
Stock-based compensation		-			-		-			5,200			5,200
Net income (loss)		(1,271,700	)		584,500		(224,900	)		(1,070,300	)		(1,982,400	)
Capital expenditures (cash and noncash)		6,900			3,000		-			57,600			67,500
Total assets	$	528,000		$	1,351,100	$	333,500		$	825,300		$	3,037,900

	Industrial			Environmental		Solid
2018	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

(1) Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles