SEGMENT REPORTING

9 Months Ended

Sep. 30, 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 primarily 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, 2021 and 2020 is as follows:

THREE MONTHS ENDED SEPTEMBER 30, 2021
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Pygas	$	—	$	3,736,534	$	—	$	3,736,534
Industrial fuel	—		417,096		—		417,096
Distillates (1)	—		20,418,760		—		20,418,760
Oil collection services	158,676		—				158,676
Metals (2)	—		—		3,669,411		3,669,411
Other re-refinery products (3)	—		—		285,994		285,994
VGO/Marine fuel sales	288,000		—		—		288,000
Total revenues	446,676		24,572,390		3,955,405		28,974,471
Cost of revenues (exclusive of depreciation and amortization shown separately below)	402,988		23,897,264		3,761,246		28,061,498
Depreciation and amortization attributable to costs of revenues	18,420		29,844		78,531		126,795
Gross profit (loss)	25,268		645,282		115,628		786,178
Selling, general and administrative expenses	3,675,190		1,034,024		235,505		4,944,719
Depreciation and amortization attributable to operating expenses	26,916		—		—		26,916
Loss from operations	$	(3,676,838)	$	(388,742)	$	(119,877)	$	(4,185,457)

THREE MONTHS ENDED SEPTEMBER 30, 2020
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Pygas	$	—	$	1,184,434	$	—	$	1,184,434
Industrial fuel	—		82,644		—		82,644
Distillates (1)	—		12,234,673		—		12,234,673
Oil collection services	—		—		—		—
Metals (2)	—		—		2,459,561		2,459,561
Other re-refinery products (3)	—		—		—		—
VGO/Marine fuel sales	288,000		—		—		288,000
Total revenues	288,000		13,501,751		2,459,561		16,249,312
Cost of revenues (exclusive of depreciation and amortization shown separately below)	189,947		13,217,757		1,917,210		15,324,914
Depreciation and amortization attributable to costs of revenues	3,985		31,829		79,748		115,562
Gross profit	94,068		252,165		462,603		808,836
Selling, general and administrative expenses	987,424		696,611		148,032		1,832,067
Depreciation and amortization attributable to operating expenses	26,916		1,086		—		28,002
Income (loss) from operations	$	(920,272)	$	(445,532)	$	314,571	$	(1,051,233)

NINE MONTHS ENDED SEPTEMBER 30, 2021
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Pygas	$	—	$	10,570,907	$	—	$	10,570,907
Industrial fuel	—		1,138,311		—		1,138,311
Distillates (1)	—		55,973,816		—		55,973,816
Oil collection services	436,220		—		3,423		439,643
Metals (2)	—		—		15,464,375		15,464,375
Other re-refinery products (3)	—		—		372,424		372,424
VGO/Marine fuel sales	864,000		—		—		864,000
Total revenues	1,300,220		67,683,034		15,840,222		84,823,476
Cost of revenues (exclusive of depreciation and amortization shown separately below)	1,045,608		64,503,727		13,770,343		79,319,678
Depreciation and amortization attributable to costs of revenues	56,983		97,658		204,264		358,905
Gross profit (loss)	197,629		3,081,649		1,865,615		5,144,893
Selling, general and administrative expenses	9,030,142		2,481,541		600,268		12,111,951
Depreciation and amortization attributable to operating expenses	80,748		—		—		80,748
Income (loss) from operations	$	(8,913,261)	$	600,108	$	1,265,347	$	(7,047,806)

NINE MONTHS ENDED SEPTEMBER 30, 2020
	Black Oil		Refining & Marketing		Recovery		Total
Revenues:
Pygas	$	—	$	4,815,040	$	—	$	4,815,040
Industrial fuel	—		135,396		—		135,396
Distillates (1)	—		17,359,234		—		17,359,234
Oil collection services	—		—		—		—
Metals (2)	—		—		7,286,936		7,286,936
Other re-refinery products (3)	—		—				—
VGO/Marine fuel sales	864,000		—		—		864,000
Total revenues	864,000		22,309,670		7,286,936		30,460,606
Cost of revenues (exclusive of depreciation and amortization shown separately below)	$	567,898	$	21,750,686	$	6,280,290	28,598,874
Depreciation and amortization attributable to costs of revenues	3,985		101,152		222,535		327,672
Gross profit	292,117		457,832		784,111		1,534,060
Selling, general and administrative expenses	3,780,366		1,867,028		396,656		6,044,050
Depreciation and amortization attributable to operating expenses	44,860		3,258		—		48,118
Income (loss) from operations	$	(3,533,109)	$	(1,412,454)	$	387,455	$	(4,558,108)

(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.