SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

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 months ended March 31, 2021 and 2020 is as follows:

THREE MONTHS ENDED MARCH 31, 2021
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Base oil	$	9,113,893	$	—	$	295,315	$	9,409,208
Pygas	—		2,972,431		—		2,972,431
Industrial fuel	—		311,693		—		311,693
Distillates (1)	—		15,989,828		—		15,989,828
Oil collection services	1,561,927		—		76,431		1,638,358
Metals (2)	—		—		6,280,047		6,280,047
Other re-refinery products (3)	1,468,229		—		—		1,468,229
VGO/Marine fuel sales	20,014,199		—		—		20,014,199
Total revenues	32,158,248		19,273,952		6,651,793		58,083,993
Cost of revenues (exclusive of depreciation and amortization shown separately below)	19,836,446		18,150,770		5,359,058		43,346,274
Depreciation and amortization attributable to costs of revenues	1,074,260		125,634		147,926		1,347,820
Gross profit	11,247,542		997,548		1,144,809		13,389,899
Selling, general and administrative expenses	6,421,696		759,410		745,474		7,926,580
Depreciation and amortization attributable to operating expenses	353,948		108,471		20,450		482,869
Income from operations	$	4,471,898	$	129,667	$	378,885	$	4,980,450

THREE MONTHS ENDED MARCH 31, 2020
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Base oil	$	7,362,727	$	—	$	802,899	$	8,165,626
Pygas	—		2,457,841		—		2,457,841
Industrial fuel	1,157,136		52,752		—		1,209,888
Distillates (1)	—		—		—		—
Oil collection services	1,198,828		—		—		1,198,828
Metals (2)	—		—		3,358,567		3,358,567
Other re-refinery products (3)	2,656,704		—				2,656,704
VGO/Marine fuel sales	17,155,975		—		—		17,155,975
Total revenues	29,531,370		2,510,593		4,161,466		36,203,429
Cost of revenues (exclusive of depreciation and amortization shown separately below)	20,066,240		2,596,052		4,174,562		26,836,854
Depreciation and amortization attributable to costs of revenues	936,895		105,768		135,931		1,178,594
Gross profit (loss)	8,528,235		(191,227)		(149,027)		8,187,981
Selling, general and administrative expenses	5,411,222		592,389		696,907		6,700,518
Depreciation and amortization attributable to operating expenses	335,105		100,398		20,450		455,953
Income (loss) from operations	$	2,781,908	$	(884,014)	$	(866,384)	$	1,031,510

(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.