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Business Segment, Geographic and Major Customer Information
 6 Months Ended
Jun. 30, 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 June 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2024
Revenue from external customers
Products$15,647 $1,306 $— $16,953 
Services714 524 — 1,238 
Total revenue from external customers16,361 1,830 — 18,191 
Revenue from related party
Products27,741 — — 27,741 
Services— 220 — 220 
Total revenue from related parties27,741 220 — 27,961 
Gross profit8,546 624 — 9,170 
Income (loss) from operations6,145 (358)(3,565)2,222 
Depreciation161 35 26 222 
Interest expense— — 308 308 
Income tax— — 15 15 
Additions to long-lived assets27 35 15 77 
2023
Revenue from external customers
Products$15,095 $1,620 $— $16,715 
Services374 731 — 1,105 
Total revenue from external customers15,469 2,351 — 17,820 
Revenue from related party
Products32,345 2 — 32,347 
Services272 155 427 
Total revenue from related parties32,617 157 — 32,774 
Gross profit 2,603 1,301 — 3,904 
Change in fair value of Contract Consideration Convertible Notes Payable(3,874)— — (3,874)
Income (loss) from operations3,795 129 (3,252)672 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable— — 712 712 
Paid-in-kind interest on convertible notes payable— — 155 155 
Depreciation155 18 1 174 
Interest expense— — 705 705 
Income tax— — 7 7 
Additions to long-lived assets— 135 — 135 
As of and for the six months ended June 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2024
Revenue from external customers
Products$26,816 $2,238 $— $29,054 
Services1,231 1,086 — 2,317 
Total revenue from external customers28,047 3,324 — 31,371 
Revenue from related party
Products54,755 — — 54,755 
Services— 400 — 400 
Total revenue from related parties54,755 400 — 55,155 
Gross profit16,947 1,044 — 17,991 
Income (loss) from operations12,250 (782)(7,138)4,330 
Depreciation320 70 52 442 
Interest expense— — 586 586 
Income tax— — 257 257 
Additions to long-lived assets104 105 20 229 
2023
Revenue from external customers
Products$23,654 $3,562 $— $27,216 
Services1,039 1,217 — 2,256 
Total revenue from external customers24,693 4,779 — 29,472 
Revenue from related party
Products68,611 2 — 68,613 
Services272 245 — 517 
Total revenue from related parties68,883 247 — 69,130 
Gross profit 3,038 2,747 — 5,785 
Change in fair value of Contract Consideration Convertible Notes Payable(29,969)— — (29,969)
Income (loss) from operations27,174 587 (8,577)19,184 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable2,129 — — 2,129 
Paid-in-kind interest on convertible notes payable— — 155 155 
Depreciation312 36 1 349 
Interest expense— — 2,377 2,377 
Income tax— — 16 16 
Additions to long-lived assets30 230 32 292 

Assets of the Company by reportable segments are as follows (in thousands):
June 30, 2024December 31, 2023
Chemistry Technologies$138,649 $138,559 
Data Analytics7,839 6,604 
Corporate and Other9,552 12,350 
Total assets$156,040 $157,513 
Geographic Information
Revenue by country is based on the location where services are provided and products are sold. For the six months ended June 30, 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 June 30,Six months ended June 30,
 2024202320242023
U.S. (1)$44,008 $48,725 $83,266 $94,851 
UAE1,803 1,509 2,545 2,912 
Other countries341 360 715 839 
Total revenue$46,152 $50,594 $86,526 $98,602 
(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 June 30, 2024
ProFrac Services, LLC
$27,961 60.6 %
Three months ended June 30, 2023
ProFrac Services, LLC
$32,774 64.8 %
Revenue% of Total Revenue
Six months ended June 30, 2024
ProFrac Services, LLC
$55,155 63.7 %
Six months ended June 30, 2023
ProFrac Services, LLC
$69,130 70.1 %
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 June 30,Expenditure% of Total Expenditure
2024
Supplier A$5,975 23.0 %
Supplier B4,383 16.9 %
Supplier C4,103 15.8 %
2023
Supplier A$13,155 32.6 %
Supplier B8,049 20.0 %
Supplier C4,489 11.1 %
Six months ended June 30,Expenditure% of Total Expenditure
2024
Supplier B$12,120 23.3 %
Supplier A10,543 20.3 %
Supplier C4,103 7.9 %
2023
Supplier A$30,109 36.4 %
Supplier B15,194 18.4 %
Supplier C8,993 10.9 %