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Supplemental Consolidated Financial Statement Information

12 Months Ended

Dec. 31, 2024

Supplemental Consolidated Financial Statement Information

Supplemental Consolidated Financial Statement Information

5. Supplemental Consolidated Financial Statement Information

Other Current Assets and Other Current Liabilities

Prepaid expenses and other current assets consist of the following at December 31, 2024 and 2023 (in thousands):


	December 31,
	2024		2023
Prepaid expenses	$	1,770	$	3,197
Other assets		1,025		1,139
Contract assets		391		4,318
Other current assets	$	3,186	$	8,654

Other current liabilities consisted of the following at December 31, 2024 and 2023 (in thousands):


	December 31,
	2024		2023
Accrued Payables	$	607	$	325
Accrued self-insurance reserves		176		338
Other accrued expenses and current liabilities		47		46
Other current liabilities	$	830	$	709

Related Party Transactions

For the year ending December 31, 2024, the Company incurred related party expenses of $187,000 related to hauling charges, $9,000 related to entertainment expenses and $6,000 related to the merger expenses paid to various commonly controlled companies of Wilks Brothers, LLC, the holder of approximately 80% of the Company’s outstanding stock. For the year ended December 31, 2024, the Company recorded approximately $30,000 of related party revenue from a commonly controlled company of Wilks Brothers, LLC. As of December 31, 2024, the Company had approximately $26,000 of outstanding related party accounts payable and no outstanding related party accounts receivable.

For the year ending December 31, 2023, the Company incurred related party expenses totaling approximately $120,000 related to hauling charges paid to various commonly controlled companies of Wilks Brothers, LLC, the holder of approximately 80% of the Company’s outstanding stock. For the year ended December 31, 2023, the Company recorded approximately $10,000 of related party revenue from a commonly controlled company of Wilks Brothers, LLC. As of December 31, 2023, the Company had approximately $11,000 of outstanding related party accounts payable and no outstanding related party accounts receivable.

Deferred Costs

Contract assets consist of deferred costs which were $4.3 million and $5.4 million at January 1, 2024 and 2023, respectively. The Company’s prepaid expenses and other current assets at December 31, 2024 and 2023 included deferred costs incurred to fulfill contracts with customers of $0.4 million and $4.3 million, respectively.

Deferred costs at December 31, 2024 and 2023, compared to January 1, 2024 and 2023, decreased primarily as a result of the completion of several projects for clients with significant deferred fulfillment costs at the beginning of the year.

The amount of total deferred costs amortized for the years ended December 31, 2024 and 2023, was $24.9 million and $38.3 million, respectively. There were no material impairment losses incurred during these periods.

Deferred Revenue

Deferred revenue was $11.8 million and $7.4 million at January 1, 2024 and 2023, respectively. The Company’s deferred revenue at December 31, 2024 and 2023, was $1.6 million and $11.8 million, respectively.

Deferred revenue at December 31, 2024 compared to January 1, 2024 decreased primarily as a result of completing multiple large projects for clients in 2024. Deferred revenue at December 31, 2023 compared to January 1, 2023 increased primarily as a result of various new projects for clients with large third party reimbursables where data had not yet been recorded.

Revenue recognized for the year ended December 31, 2024 that was included in the contract liability balance at the beginning of 2024 was $11.8 million. Revenue recognized for the year ended December 31, 2023 that was included in the contract liability balance at the beginning of 2023 was $7.3 million. Deferred revenue not recognized during 2024 relates to projects that have not yet started or are in process at period end.

Accounts Receivable

Accounts receivable related to contracts with customers was $12.5 million and $6.7 million at January 1, 2024 and 2023, respectively. The accounts receivable balance at January 1, 2023 excluded a $3.0 million employee retention credit receivable.

Accounts receivable related to contracts with customers was $9.9 million and $12.5 million at December 31, 2024 and 2023, respectively.