CONCENTRATIONS OF RISK AND SIGNIFICANT CUSTOMERS

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

CONCENTRATIONS OF RISK AND SIGNIFICANT CUSTOMERS

The Company has concentrated credit risk for cash by maintaining deposits in one bank. These balances are insured by the Federal Deposit Insurance Corporation up to $250,000. From time to time during the six months ended June 30, 2024 and year ended December 31, 2023, the Company’s cash balances exceeded the federally insured limits. No losses have been incurred relating to this concentration.

At June 30, 2024 and 2023 and for each of the six months then ended, the Company’s revenues and receivables were comprised of the following customer concentrations:


	As of and for the Six Months Ended
	June 30, 2024		June 30, 2023
	% of Revenues	% of Receivables	% of Revenues	% of Receivables
Customer 1	34%	1%	37%	1%
Customer 2	27%	8%	35%	19%
Customer 3	11%	1%	7%	—%

For each of the three and six months ended June 30, 2024 and 2023, the Company’s segment revenues were comprised of the following customer concentrations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	Refining & Marketing	Black Oil and Recovery	Refining & Marketing	Black Oil and Recovery	Refining & Marketing	Black Oil and Recovery	Refining & Marketing	Black Oil and Recovery
Customer 1	34%	—%	37%	—%	36%	—%	38%	—%
Customer 2	26%	—%	33%	—%	28%	5%	36%	—%
Customer 3	14%	—%	9%	—%	11%	—%	7%	—%

For each of the six months ended June 30, 2024 and 2023, substantially all of the Company's crude oil, which is used in our Refining and Marketing segment, is purchased from a single vendor.

The Company’s revenue, profitability and future rate of growth are substantially dependent on prevailing prices for petroleum-based products. Historically, the energy markets have been very volatile, and there can be no assurance that these prices will not be subject to wide fluctuations in the future. A substantial or extended decline in such prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, and access to capital and on the quantities of petroleum-based products that the Company can economically produce.