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Business Segment, Geographic and Major Customer Information | 6 Months Ended
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Jun. 30, 2022
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 environmental, social and governance (“ESG) and operational goals. This segment also includes a portfolio of specialty chemical products to address the long-term challenges of in the janitorial, sanitization, food services, and adjacent markets. 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. 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 company markets products and services that support in-line data analysis of hydrocarbon components and properties. Customers of the DA segment span across the entire oil and gas market, from upstream production to midstream facilities to refineries and distribution networks Performance based upon a variety of criteria. The primary financial measure is segment operating income (loss). 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):
As of and for the three months ended June 30, | Chemistry Technologies |  | Data Analytics (1) |  | Corporate and Other |  | Total
2022 |  |  |  |  |  |  |
Revenue from external customers | $ | 12,111 |  |  | $ | 713 |  |  | $ | — |  |  | $ | 12,824 |
Revenue from related party | 16,549 |  |  | — |  |  | — |  |  | 16,549 |
Change in fair value of contract consideration convertible notes | (17,158) |  |  | — |  |  | — |  |  | (17,158) |
Income (loss) from operations | 14,944 |  |  | (1,198) |  |  | (5,707) |  |  | 8,039 |
Depreciation and amortization | 166 |  |  | 15 |  |  | 1 |  |  | 182 |
Additions to long-lived assets | 5 |  |  | — |  |  | — |  |  | 5 |
2021 |  |  |  |  |  |  |
Revenue from external customers | $ | 7,688 |  |  | $ | 1,477 |  |  | $ | — |  |  | $ | 9,165 |
Revenue from related party | — |  |  | — |  |  | — |  |  | — |
Income (loss) from operations | (3,819) |  |  | (773) |  |  | (2,869) |  |  | (7,461) |
Depreciation and amortization | 233 |  |  | 20 |  |  | — |  |  | 253 |
Additions to long-lived assets | 13 |  |  | — |  |  | — |  |  | 13 |
As of and for the six months ended June 30, | Chemistry Technologies |  | Data Analytics (1) |  | Corporate and Other |  | Total
2022 |  |  |  |  |  |  |
Revenue from external customers | $ | 21,422 |  |  | $ | 1,784 |  |  | $ | — |  |  | $ | 23,206 |
Revenue from related party | 19,046 |  |  | — |  |  | — |  |  | 19,046 |
Change in fair value of contract consideration convertible notes | (13,266) |  |  | — |  |  | — |  |  | (13,266) |
Income (loss) from operations | 8,887 |  |  | (2,006) |  |  | (9,126) |  |  | (2,245) |
Depreciation and amortization | 345 |  |  | 31 |  |  | 1 |  |  | 377 |
Additions to long-lived assets | 5 |  |  | — |  |  | — |  |  | 5 |
2021 |  |  |  |  |  |  |
Revenue from external customers | $ | 17,990 |  |  | $ | 2,945 |  |  | $ | — |  |  | $ | 20,935 |
Revenue from related party | — |  |  | — |  |  | — |  |  | — |
Income (loss) from operations | (7,407) |  |  | (1,067) |  |  | (7,230) |  |  | (15,704) |
Depreciation and amortization | 524 |  |  | 35 |  |  | 1 |  |  | 560 |
Additions to long-lived assets | 31 |  |  | — |  |  | — |  |  | 31 |
Assets of the Company by reportable segments are as follows (in thousands):
| June 30, 2022 |  | December 31, 2021
Chemistry Technologies | $ | 127,398 |  |  | $ | 34,387 |
Data Analytics | 4,787 |  |  | 7,329 |
Corporate and Other | 31,286 |  |  | 8,528 |
Total assets | $ | 163,471 |  |  | $ | 50,244 |
The increase in Chemistry Technologies assets is primarily due to contact assets of $83.3 million. Geographic Information Revenue by country is based on the location where services are provided and products are sold. 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 June 30, |  | Six months ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
U.S. | $ | 25,955 |  |  | $ | 6,869 |  |  | $ | 36,289 |  |  | $ | 16,530 |
UAE | 3,139 |  |  | 1,319 |  |  | 4,450 |  |  | 2,422 |
Other countries | 279 |  |  | 977 |  |  | 1,513 |  |  | 1,983 |
Total revenue | $ | 29,373 |  |  | $ | 9,165 |  |  | $ | 42,252 |  |  | $ | 20,935 |
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):
Three months ended June 30, |  | Revenue |  | % of Total Revenue |  |  |  |
2022 |  |  |  |  |  |  |  |
Customer A (Related Party) |  | $ | 16,549 |  |  | 52.2 | % |  |  |  |
Customer B |  | 5,611 |  |  | 19.1 | % |  |  |  |
2021 |  |  |  |  |  |  |  |
Customer C |  | $ | 1,038 |  |  | 11.3 | % |  |  |  |
Customer D |  | 1,810 |  |  | 19.8 | % |  |  |  |
Six months ended June 30, |  | Revenue |  | % of Total Revenue |  |  |  |
2022 |  |  |  |  |  |  |  |
Customer A (Related Party) |  | $ | 17,657 |  |  | 38.9 | % |  |  |  |
Customer B |  | 8,218 |  |  | 19.5 | % |  |  |  |
2021 |  |  |  |  |  |  |  |
Customer C |  | $ | 4,067 |  |  | 19.4 | % |  |  |  |
Customer D |  | 4,660 |  |  | 22.3 | % |  |  |  |
The majority of the Company’s revenue consists predominantly of customers within the oil and gas industry. Customers within the oil and gas industry include ProFrac and other oilfield services companies, integrated oil and natural gas companies, independent oil and natural gas companies, and state-owned national oil companies. The concentration with ProFrac and in the oil and gas industry increases credit and business risk.

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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