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Business Segment, Geographic and Major Customer Information | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Business Segment, Geographic and Major Customer Information | Business Segment, Geographic and Major Customer Information Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-maker in deciding how to allocate resources and assess performance. The operations of the Company are categorized into two reportable segments: Chemistry Technologies and Data Analytics. Chemistry Technologies. The Chemistry Technologies segment includes specialty chemistries, logistics and technology services, which enable its customers to pursue improved efficiencies in the drilling and completion of their wells. The Company designs, develops, manufactures, packages, distributes, delivers and markets reservoir-centric fluid systems, including specialty and conventional chemistries, for use in oil and gas well drilling, cementing, completion, remediation, and stimulation activities designed to maximize recovery in both new and mature fields. Customers of the Chemistry Technologies business segment include major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, pressure-pumping service companies, national and state-owned oil companies, and international supply chain management companies. In the second quarter of 2020, the Chemistry Technologies segment launched a line of sanitizers and disinfectants for commercial and personal consumer use. These products build on the Company’s historical expertise in chemistry and leverage its infrastructure, personnel, competencies, supply chain, research, and historic consumer market experiences yielding a competitive product offering in this rapidly growing segment. The newly launched products, which include the Food and Drug Administration (“FDA”) compliant hand and surface sanitizers, target growth opportunities across diverse sectors including hospitals, travel and hospitality, food services, e-commerce and retail, sports and entertainment and other industrial and commercial markets. Data Analytics. The Data Analytics segment, created in the second quarter of 2020 in conjunction with the acquisition of JP3 on May 18, 2020, includes the design, development, production, sale and support of equipment and services that create and provide valuable information about the composition of its energy customers’ hydrocarbon fluids. The customers of the Data Analytics segment span across the entire market, from production upstream to midstream facilities to refineries and distribution networks. To date, the Data Analytics segment has focused solely on North American markets. The Data Analytics segment provides real-time hydrocarbon composition data that helps its customers generate additional profit by enhancing blending, optimizing transmix, increasing efficiencies of towers, enabling automation and robotization of fluid handling, and reducing losses due to give-away (i.e. that portion of a product of higher value than what is specified) using real-time process information. The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes are not allocated to the reportable segment. Summarized financial information of the reportable segments is as follows (in thousands):
For the three months ended September 30, | Chemistry Technologies |  | Data Analytics |  | Corporate and Other |  | Total
2020 |  |  |  |  |  |  |
Net revenue from external customers | $ | 12,083 |  |  | $ | 656 |  |  | $ | — |  |  | $ | 12,739 |
Loss from operations, including impairment | (8,880 | ) |  | (34,035 | ) |  | (2,679 | ) |  | (45,594 | )
Depreciation and amortization | 244 |  |  | 274 |  |  | — |  |  | 518 |
Additions to long-lived assets | 906 |  |  | — |  |  | — |  |  | 906 |
2019 |  |  |  |  |  |  |
Net revenue from external customers | $ | 21,879 |  |  | $ | — |  |  | $ | — |  |  | $ | 21,879 |
Loss from operations | (5,917 | ) |  | — |  |  | (5,869 | ) |  | (11,786 | )
Depreciation and amortization | 1,870 |  |  | — |  |  | 188 |  |  | 2,058 |
Additions to long-lived assets | 1,102 |  |  | — |  |  | — |  |  | 1,102 |
For the nine months ended September 30, | Chemistry Technologies |  | Data Analytics (1) |  | Corporate and Other |  | Total
2020 |  |  |  |  |  |  |
Net revenue from external customers | $ | 39,462 |  |  | $ | 1,573 |  |  | $ | — |  |  | $ | 41,035 |
Loss from operations, including impairment | (75,137 | ) |  | (35,185 | ) |  | (15,589 | ) |  | (125,911 | )
Depreciation and amortization | 2,300 |  |  | 405 |  |  | 472 |  |  | 3,177 |
Additions to long-lived assets | 906 |  |  | — |  |  | — |  |  | 906 |
2019 |  |  |  |  |  |  |
Net revenue from external customers | $ | 99,827 |  |  | $ | — |  |  | $ | — |  |  | $ | 99,827 |
Loss from operations | (18,407 | ) |  | — |  |  | (20,688 | ) |  | (39,095 | )
Depreciation and amortization | 5,588 |  |  | — |  |  | 849 |  |  | 6,437 |
Additions to long-lived assets | 1,869 |  |  | — |  |  | — |  |  | 1,869 |
(1) The financial information disclosed above for Data Analytics is for the period May 18, 2020 to September 30, 2020. Assets of the Company by reportable segments are as follows (in thousands):
| September 30, 2020 |  | December 31, 2019
Chemistry Technologies | $ | 44,764 |  |  | $ | 116,110 |
Data Analytics | 11,427 |  |  | — |
Corporate and Other | 42,282 |  |  | 114,490 |
Total assets | $ | 98,473 |  |  | $ | 230,600 |
Geographic Information Revenue by country is based on the location where services are provided and products are used. No individual country other than the United States (“U.S.”) and the United Arab Emirates (“U.A.E.”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):
| Three months ended September 30, |  | Nine months ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
U.S. | $ | 9,928 |  |  | $ | 19,663 |  |  | $ | 32,639 |  |  | $ | 89,653 |
U.A.E | 1,473 |  |  | 865 |  |  | 3,781 |  |  | 2,662 |
Other countries | 1,338 |  |  | 1,351 |  |  | 4,615 |  |  | 7,512 |
Total | $ | 12,739 |  |  | $ | 21,879 |  |  | $ | 41,035 |  |  | $ | 99,827 |
Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements. Major Customers Revenue from major customers, as a percentage of consolidated revenue, is as follows:
| Three months ended September 30, |  | Nine months ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Customer A | 34.9 | % |  | 11.1 | % |  | 19.3 | % |  | * |
Customer B | 14.1 | % |  | 35.9 | % |  | 24.7 | % |  | 16.7 | %
Customer C | * |  |  | * |  |  | * |  |  | 12.3 | %
* This customer did not account for more than 10% of revenue during this period.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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