XML 35 R24.htm IDEA: XBRL DOCUMENT v3.24.3
Business Segment, Geographic and Major Customer Information
 9 Months Ended
Sep. 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 September 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2024
Revenue from external customers
Products$13,600 $1,681 $— $15,281 
Services497 787 — 1,284 
Total revenue from external customers14,097 2,468 — 16,565 
Revenue from related party
Products32,962 — — 32,962 
Services15 200 — 215 
Total revenue from related parties32,977 200 — 33,177 
Gross profit7,944 1,175 — 9,119 
Income (loss) from operations5,559 130 (2,966)2,723 
Depreciation156 37 27 220 
Interest expense— — 256 256 
Income tax— — 37 37 
Additions to long-lived assets158 71 33 262 
2023
Revenue from external customers
Products$15,764 $1,025 $— $16,789 
Services562 455 — 1,017 
Total revenue from external customers16,326 1,480 — 17,806 
Revenue from related party
Products29,076 — — 29,076 
Services176 210 386 
Total revenue from related parties29,252 210 — 29,462 
Gross profit 8,240 807 — 9,047 
Income (loss) from operations5,519 (37)(3,863)1,619 
Depreciation149 26 6 181 
Interest expense— — 160 160 
Income tax— — 81 81 
Additions to long-lived assets— 135 — 135 
As of and for the nine months ended September 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2024
Revenue from external customers
Products$40,427 $3,920 $— $44,347 
Services1,716 1,872 — 3,588 
Total revenue from external customers42,143 5,792 — 47,935 
Revenue from related party
Products87,705 — — 87,705 
Services27 600 — 627 
Total revenue from related parties87,732 600 — 88,332 
Gross profit24,888 2,220 — 27,108 
Income (loss) from operations17,810 (652)(10,106)7,052 
Depreciation475 108 79 662 
Interest expense— — 842 842 
Income tax— — 293 293 
Additions to long-lived assets333 105 53 491 
2023
Revenue from external customers
Products$39,150 $4,586 $— $43,736 
Services1,870 1,672 — 3,542 
Total revenue from external customers41,020 6,258 — 47,278 
Revenue from related party
Products97,956 2 — 97,958 
Services179 455 — 634 
Total revenue from related parties98,135 457 — 98,592 
Gross profit 11,279 3,554 — 14,833 
Change in fair value of Contract Consideration Convertible Notes Payable(29,969)— — (29,969)
Income (loss) from operations32,694 550 (12,440)20,804 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable2,129 — — 2,129 
Paid-in-kind interest on convertible notes payable— — 155 155 
Depreciation462 61 7 530 
Other interest expense— — 253 253 
Income tax— — 98 98 
Additions to long-lived assets30 230 32 292 

Assets of the Company by reportable segments are as follows (in thousands):
September 30, 2024December 31, 2023
Chemistry Technologies$143,399 $138,559 
Data Analytics7,917 6,604 
Corporate and Other9,333 12,350 
Total assets$160,649 $157,513 
Geographic Information
Revenue by country is based on the location where services are provided and products are sold. For the three and nine months ended September 30, 2024 and 2023 no country other than the U.S. 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,
 2024202320242023
U.S. (1)$48,498 $46,401 $131,763 $141,251 
UAE592 635 3,136 3,547 
Other countries652 232 1,368 1,072 
Total revenue$49,742 $47,268 $136,267 $145,870 
(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 September 30, 2024
ProFrac Services, LLC
$33,177 66.7 %
Three months ended September 30, 2023
ProFrac Services, LLC
$29,462 62.3 %
Revenue% of Total Revenue
Nine months ended September 30, 2024
ProFrac Services, LLC
$88,332 64.8 %
Nine months ended September 30, 2023
ProFrac Services, LLC
$98,592 67.6 %
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 September 30,Expenditure% of Total Expenditure
2024
Supplier A$8,885 24.6 %
Supplier B5,187 14.4 %
Supplier C4,348 12.1 %
Supplier D3,782 10.5 %
2023
Supplier A$6,094 25.3 %
Supplier B5,581 23.2 %
Supplier C4,197 17.4 %
Nine months ended September 30,Expenditure% of Total Expenditure
2024
Supplier B$16,885 17.8 %
Supplier A16,639 17.5 %
Supplier C16,583 17.5 %
2023
Supplier A$36,318 32.5 %
Supplier B21,752 19.5 %
Supplier C13,151 11.8 %