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Business Segment, Geographic and Major Customer Information | 3 Months Ended
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Mar. 31, 2024
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: 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, and also helping customers improve their ESG and operational goals. 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 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 is 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 segments. Summarized financial information of the reportable segments is as follows (in thousands):
As of and for the three months ended March 31, | Chemistry Technologies |  | Data Analytics |  | Corporate and Other |  | Total
2024 |  |  |  |  |  |  |
Revenue from external customers |  |  |  |  |  |  |
Products | $ | 11,159 |  |  | $ | 933 |  |  | $ | — |  |  | $ | 12,092 |
Services | 526 |  |  | 562 |  |  | — |  |  | 1,088 |
Total revenue from external customers | 11,685 |  |  | 1,495 |  |  | — |  |  | 13,180 |
Revenue from related party |  |  |  |  |  |  |
Products | 27,014 |  |  | — |  |  | — |  |  | 27,014 |
Services | — |  |  | 180 |  |  | — |  |  | 180 |
Total revenue from related parties | 27,014 |  |  | 180 |  |  | — |  |  | 27,194 |
Gross profit | 8,401 |  |  | 420 |  |  | — |  |  | 8,821 |
Income (loss) from operations | 6,106 |  |  | (424) |  |  | (3,574) |  |  | 2,108 |
Depreciation | 159 |  |  | 35 |  |  | 26 |  |  | 220 |
Interest on ABL | — |  |  | — |  |  | 181 |  |  | 181 |
Other interest | — |  |  | — |  |  | 97 |  |  | 97 |
Income tax | — |  |  | — |  |  | 242 |  |  | 242 |
Additions to long-lived assets | 147 |  |  | — |  |  | 5 |  |  | 152 |
2023 |  |  |  |  |  |  |
Revenue from external customers |  |  |  |  |  |  |
Products | $ | 8,561 |  |  | $ | 1,941 |  |  | $ | — |  |  | $ | 10,502 |
Services | 664 |  |  | 486 |  |  | — |  |  | 1,150 |
Total revenue from external customers | 9,225 |  |  | 2,427 |  |  | — |  |  | 11,652 |
Revenue from related party |  |  |  |  |  |  |
Products | 36,265 |  |  | — |  |  | — |  |  | 36,265 |
Services | — |  |  | 90 |  |  |  |  | 90 |
Total revenue from related parties | 36,265 |  |  | 90 |  |  | — |  |  | 36,355 |
Gross profit | 434 |  |  | 1,446 |  |  | — |  |  | 1,880 |
Change in fair value of Contract Consideration Convertible Notes Payable | (26,095) |  |  | — |  |  | — |  |  | (26,095) |
Income (loss) from operations | 23,379 |  |  | 457 |  |  | (5,325) |  |  | 18,511 |
Paid-in-kind interest on Contract Consideration Convertible Notes Payable | 1,416 |  |  | — |  |  | — |  |  | 1,416 |
Paid-in-kind interest on convertible notes payable | — |  |  | — |  |  | 155 |  |  | 155 |
Depreciation | 157 |  |  | 18 |  |  | 1 |  |  | 176 |
Income tax | — |  |  | — |  |  | 9 |  |  | 9 |
Additions to long-lived assets | 30 |  |  | 95 |  |  | 32 |  |  | 157 |
Assets of the Company by reportable segments are as follows (in thousands):
| March 31, 2024 |  | December 31, 2023
Chemistry Technologies | $ | 139,551 |  |  | $ | 138,559 |
Data Analytics | 6,253 |  |  | 6,604 |
Corporate and Other | 10,046 |  |  | 12,350 |
Total assets | $ | 155,850 |  |  | $ | 157,513 |
Geographic Information Revenue by country is based on the location where services are provided and products are sold. For the three months ended March 31, 2024 and 2023 no individual countries other than the U.S. accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):
|  |  | Three months ended March 31,
|  |  |  |  | 2024 |  | 2023
U.S. (1) |  |  |  |  | $ | 39,259 |  |  | $ | 46,126 |
UAE |  |  |  |  | 741 |  |  | 1,403 |
Other countries |  |  |  |  | 374 |  |  | 478 |
Total revenue |  |  |  |  | $ | 40,374 |  |  | $ | 48,007 |
(1) Includes revenue from related party 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):
|  | Revenue |  | % of Total Revenue |  |  |  |
Three months ended March 31, 2024 |  |  |  |  |  |  |  |
Customer A (Related Party) |  | $ | 27,194 |  |  | 67.4 | % |  |  |  |
Three months ended March 31, 2023 |  |  |  |  |  |  |  |
Customer A (Related Party) |  | $ | 36,355 |  |  | 75.7 | % |  |  |  |
The concentration with ProFrac Services, LLC and in the oil and gas industry increases credit, commodity and business risk. Major Suppliers Expenditure with major suppliers, as a percentage of consolidated supplier expenditure, is as follows (in thousands):
Three months ended March 31, |  | Expenditure |  | % of Total Expenditure |  |  |  |
2024 |  |  |  |  |  |  |  |
Supplier A |  | $ | 7,747 |  |  | 29.7 | % |  |  |  |
Supplier B |  | 5,020 |  |  | 19.2 | % |  |  |  |
2023 |  |  |  |  |  |  |  |
Supplier A |  | $ | 16,954 |  |  | 40.1 | % |  |  |  |
Supplier B |  | 7,145 |  |  | 16.9 | % |  |  |  |
Supplier C |  | 4,504 |  |  | 10.6 | % |  |  |  |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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