SEGMENT REPORTING

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company’s reportable segments include the (1) Black Oil, (2) Refining and Marketing, and (3) Recovery segments.

(1) The Black Oil segment consists primary of the sale of (a) petroleum products which include base oil and industrial fuels—which consist of used motor oils, cutterstock and fuel oil generated by our facilities; (b) oil collection services—which consist of used oil sales, burner fuel sales, antifreeze sales and service charges; (c) the sale of other re-refinery products including asphalt, condensate, recovered products, and used motor oil; (d) transportation revenues; and (e) the sale of VGO (vacuum gas oil)/marine fuel.

(2) The Refining and Marketing segment consists primarily of the sale of pygas; industrial fuels, which are produced at a third-party facility; and distillates

(3) The Recovery segment consists primarily of revenues generated from the sale of ferrous and non-ferrous recyclable Metal(s) products that are recovered from manufacturing and consumption. It also includes revenues generated from trading/marketing of Group III Base Oils.

We also disaggregate our revenue by product category for each of our segments, as we believe such disaggregation helps depict how our revenue and cash flows are affected by economic factors.

Segment information for the three and nine months ended September 30, 2020 and 2019 is as follows:

THREE MONTHS ENDED SEPTEMBER 30, 2020
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Base oil	$	5,632,592	$	—	$	733,180	$	6,365,772
Pygas	—		1,184,433		—		1,184,433
Industrial fuel	21,190		82,644		—		103,834
Distillates (1)	—		12,234,672		—		12,234,672
Oil collection services	2,449,454		—		—		2,449,454
Metals (2)	—		—		3,160,581		3,160,581
Other re-refinery products (3)	834,438		—		—		834,438
VGO/Marine fuel sales	11,050,448		—		—		11,050,448
Total revenues	19,988,122		13,501,749		3,893,761		37,383,632
Cost of revenues (exclusive of depreciation and amortization shown separately below)	14,687,141		13,217,757		3,281,786		31,186,684
Depreciation and amortization attributable to costs of revenues	1,041,719		121,744		149,699		1,313,162
Gross profit	4,259,262		162,248		462,276		4,883,786
Selling, general and administrative expenses	4,899,956		696,611		645,003		6,241,570
Depreciation and amortization attributable to operating expenses	390,105		72,314		20,450		482,869
Loss from operations	$	(1,030,799)	$	(606,677)	$	(203,177)	$	(1,840,653)

THREE MONTHS ENDED SEPTEMBER 30, 2019
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Base oil	$	9,135,650	$	—	$	640,642	$	9,776,292
Pygas	—		2,741,557		—		2,741,557
Industrial fuel	891,676		334,897		—		1,226,573
Distillates (1)	—		—		—		—
Oil collection services	1,953,924		—		—		1,953,924
Metals (2)	—		—		1,724,025		1,724,025
Other re-refinery products (3)	3,057,171		—		27,607		3,084,778
VGO/Marine fuel sales	17,292,110		—		—		17,292,110
Total revenues	32,330,531		3,076,454		2,392,274		37,799,259
Cost of revenues (exclusive of depreciation and amortization shown separately below)	27,663,983		2,511,314		2,197,019		32,372,316
Depreciation and amortization attributable to costs of revenues	1,073,520		147,658		138,451		1,359,629
Gross profit	3,593,028		417,482		56,804		4,067,314
Selling, general and administrative expenses	5,040,772		494,781		617,631		6,153,184
Depreciation and amortization attributable to operating expenses	335,105		100,398		20,450		455,953
Loss from operations	$	(1,782,849)	$	(177,697)	$	(581,277)	$	(2,541,823)

NINE MONTHS ENDED SEPTEMBER 30, 2020
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Base oil	$	17,914,941	$	—	$	2,091,430	$	20,006,371
Pygas	—		4,815,040		—		4,815,040
Industrial fuel	1,262,266		135,396		—		1,397,662
Distillates (1)	—		17,359,234		—		17,359,234
Oil collection services	5,707,017		—		—		5,707,017
Metals (2)	—		—		9,549,144		9,549,144
Other re-refinery products (3)	4,341,027		—		(51,684)		4,289,343
VGO/Marine fuel sales	31,837,377		—		—		31,837,377
Total revenues	61,062,628		22,309,670		11,588,890		94,961,188
Cost of revenues (exclusive of depreciation and amortization shown separately below)	46,601,716		21,772,587		11,847,040		80,221,343
Depreciation and amortization attributable to costs of revenues	2,960,699		341,498		429,123		3,731,320
Gross profit (loss)	11,500,213		195,585		(687,273)		11,008,525
Selling, general and administrative expenses	15,180,569		1,867,027		1,925,052		18,972,648
Depreciation and amortization attributable to operating expenses	1,072,877		278,492		61,350		1,412,719
Loss from operations	$	(4,753,233)	$	(1,949,934)	$	(2,673,675)	$	(9,376,842)

NINE MONTHS ENDED SEPTEMBER 30, 2019
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Base oil	$	23,918,490	$	—	$	2,439,071	$	26,357,561
Pygas	—		7,656,125		—		7,656,125
Industrial fuel	5,714,478		1,501,655		—		7,216,133
Distillates (1)	—		54,697		—		54,697
Oil collection services	4,261,391		—		—		4,261,391
Metals (2)	—		—		5,988,895		5,988,895
Other re-refinery products (3)	10,399,007		—		83,291		10,482,298
VGO/Marine fuel sales	58,760,163		—		—		58,760,163
Total revenues	103,053,529		9,212,477		8,511,257		120,777,263
Cost of revenues (exclusive of depreciation and amortization shown separately below)	88,374,446		7,767,882		7,589,758		103,732,086
Depreciation and amortization attributable to costs of revenues	3,122,664		431,948		411,014		3,965,626
Gross profit	11,556,419		1,012,647		510,485		13,079,551
Selling, general and administrative expenses	14,500,306		1,424,572		1,604,906		17,529,784
Depreciation and amortization attributable to operating expenses	1,005,315		301,194		61,350		1,367,859
Loss from operations	$	(3,949,202)	$	(713,119)	$	(1,155,771)	$	(5,818,092)

(1) Distillates are finished fuel products such as gasoline and diesel fuels.

(2) Metals consist of recoverable ferrous and non-ferrous recyclable metals from manufacturing and consumption. Scrap metal can be recovered from pipes, barges, boats, building supplies, surplus equipment, tanks, and other items consisting of metal composition. These materials are segregated, processed, cut-up and sent back to a steel mill for re-purposing.

(3) Other re-refinery products include the sales of asphalt, condensate, recovered products, and other petroleum products.