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Business Segment, Geographic and Major Customer Information | 9 Months Ended
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Sep. 30, 2021
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 the chief operating decision-maker in deciding how to allocate resources and assess performance. The operations of the Company are categorized into the following reportable segments: CT and DA. Chemistry Technologies. The CT segment includes green specialty chemistries, logistics and technology services, which enable its customers to pursue improved efficiencies and performance throughout the life cycle of their wells, helping customers improve their ESG and operational goals. The Company designs, develops, manufactures, packages, distributes, delivers and markets optimized 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, as well as to reduce health and environmental risk by utilization of greener chemicals. Customers of the CT segment include major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, and international supply chain management companies. In 2020, the Company leveraged historical expertise, existing infrastructure, personnel, supply chain, research and resident consumer market experience to address the emerging demand for disinfectants, surface cleaners, degreasers and solvents for industrial, commercial and consumer use. The Company produces Food and Drug Administration and Environmental Protection Agency compliant products its ISO 9001:2015 certified facility in Marlow, Oklahoma. Today the Company has a portfolio of specialty chemical products to address the long-term challenges in the janitorial and sanitization (JanSan), food service and adjacent markets. Data Analytics. The DA 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 on the composition and properties of energy customers’ hydrocarbon fluids. The real-time information on hydrocarbon composition and properties helps customers generate additional profits by enhancing their operations including crude/condensates stabilization, blending, optimization of transmix, increasing efficiencies of gas processing plants, ensuring product quality while enabling automation of fluid handling and reducing losses through giveaways (i.e., that portion of a product of higher value than what is specified). The customers of the DA segment span across the entire oil and gas market, from upstream production to midstream facilities to refineries and distribution networks. 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 (1) |  | Corporate and Other |  | Total
2021 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 8,044 |  |  |  |  | $ | 803 |  |  | $ | — |  |  | $ | 8,847 |
Revenue from related party | 1,332 |  |  |  |  | — |  |  | — |  |  | 1,332 |
Income (loss) from operations, including impairment | 4,399 |  |  |  |  | (1,071) |  |  | (2,696) |  |  | 632 |
Depreciation and amortization | 215 |  |  |  |  | 17 |  |  | 1 |  |  | 233 |
Additions to long-lived assets | — |  |  |  |  | — |  |  | — |  |  | — |
2020 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 12,083 |  |  |  |  | $ | 656 |  |  | $ | — |  |  | $ | 12,739 |
Revenue from related party | — |  |  |  |  | — |  |  | — |  |  | — |
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 |
(1) The Company formed the Data Analytics segment in the second quarter of 2020 upon acquiring JP3.
For the nine months ended September 30, | Chemistry Technologies |  |  |  | Data Analytics (1) |  | Corporate and Other |  | Total
2021 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 26,033 |  |  |  |  | $ | 3,749 |  |  | $ | — |  |  | $ | 29,782 |
Revenue from related party | 1,332 |  |  |  |  | — |  |  | — |  |  | 1,332 |
Loss from operations, including impairment | (3,009) |  |  |  |  | (2,138) |  |  | (9,926) |  |  | $ | (15,073) |
Depreciation and amortization | 739 |  |  |  |  | 52 |  |  | 2 |  |  | 793 |
Additions to long-lived assets | 31 |  |  |  |  | — |  |  | — |  |  | 31 |
2020 |  |  |  |  |  |  |  |  |
Revenue from external customers | $ | 39,462 |  |  |  |  | $ | 1,573 |  |  | $ | — |  |  | $ | 41,035 |
Revenue from related party | — |  |  |  |  | — |  |  | — |  |  | — |
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 |
(1) The Company formed the DA segment in the second quarter of 2020 upon acquiring JP3. Assets of the Company by reportable segments are as follows (in thousands):
| September 30, 2021 |  | December 31, 2020
Chemistry Technologies | $ | 47,625 |  |  | $ | 43,346 |
Data Analytics | 15,960 |  |  | 13,201 |
Corporate and Other | 969 |  |  | 29,663 |
Total assets | $ | 64,554 |  |  | $ | 86,210 |
Geographic Information Revenue by country is based on the location where services are provided and products are used. No individual countries other than the U.S. and the United Arab Emirates (“UAE”) 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,
| 2021 |  | 2020 |  | 2021 |  | 2020
U.S. | $ | 8,094 |  |  | $ | 9,928 |  |  | $ | 24,624 |  |  | $ | 32,639 |
UAE | 1,319 |  |  | 1,473 |  |  | 3,741 |  |  | 3,781 |
Other countries | 766 |  |  | 1,338 |  |  | 2,749 |  |  | 4,615 |
Total revenue | $ | 10,179 |  |  | $ | 12,739 |  |  | $ | 31,114 |  |  | $ | 41,035 |
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 (in thousands):
For the three months ended September 30, |  | Chemistry Technologies |  | % of Total Revenue |  |  |  |
2021 |  |  |  |  |  |  |  |
Customer D |  | $ | 3,041 |  |  | 29.9 | % |  |  |  |
Customer E - Related party |  | 1,332 |  |  | 13.1 | % |  |  |  |
2020 |  |  |  |  |  |  |  |
Customer D |  | $ | 4,632 |  |  | 36.2 | % |  |  |  |
Customer C |  | 2,088 |  |  | 16.4 | % |  |  |  |
For the nine months ended September 30, |  | Chemistry Technologies |  | % of Total Revenue |  |  |  |
2021 |  |  |  |  |  |  |  |
Customer D |  | $ | 7,701 |  |  | 24.8 | % |  |  |  |
Customer C |  | 4,067 |  |  | 13.1 | % |  |  |  |
2020 |  |  |  |  |  |  |  |
Customer C |  | $ | 10,412 |  |  | 25.4 | % |  |  |  |
Customer D |  | 8,117 |  |  | 19.8 | % |  |  |  |
Customer A |  | 3,631 |  |  | 8.9 | % |  |  |  |
* DA customer did not account for more than 10% of revenue during this period. The majority of t he Company’s revenue is derived from its CT segment, which consists predominantly of customers within the oil and gas industry and the surface cleaner and disinfectant industry. Customers within the oil and gas industry include oilfield services companies, integrated oil and natural gas companies, independent oil and natural gas companies, and state-owned national oil companies. Customers within the surface cleaner and disinfectant industry typically include industrial and consumer markets, including hospitals, travel and hospitality, food services, e-commerce and retail, sports and entertainment. The concentration in the oil and gas industry increases credit and business risk. See Note 16, “Business Segment, Geographic and Major Customer Information,” for concentration of segment revenue from major customers.

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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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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