Business Segment, Geographic and Major Customer Information

6 Months Ended

Jun. 30, 2019

Business Segment, Geographic and Major Customer Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by chief operating decision-makers in deciding how to allocate resources and assess performance. The operations of the Company are categorized into one reportable segment: Energy Chemistry Technologies.

Energy Chemistry Technologies designs, develops, manufactures, packages, distributes, delivers, and markets reservoir-centric fluid systems, including specialty and conventional chemistries, for use in oil and gas (“O&G”) well drilling, cementing, completion, remediation, and stimulation activities designed to maximize recovery in both new and mature fields. Activities in this segment also include construction and management of automated material handling facilities and management of loading facilities and blending operations for oilfield services companies.

The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income. Various functions, including certain sales and marketing activities and general and administrative activities, are provided centrally by the corporate office. Costs associated with corporate office functions, other corporate income and expense items, and income taxes are not allocated to the reportable segment.

Summarized financial information of the reportable segments is as follows (in thousands):



For the three months ended June 30,	Energy Chemistry Technologies			Corporate and Other			Total
2019
Net revenue from external customers	$	34,692		$	—		$	34,692
Income (loss) from operations	(7,651		)	(6,208		)	(13,859		)
Depreciation and amortization	1,933			186			2,119
Capital expenditures	306			—			306

2018
Net revenue from external customers	$	39,546		$	—		$	39,546
Income (loss) from operations	(37,929		)	(9,211		)	(47,140		)
Depreciation and amortization	1,797			546			2,343
Capital expenditures	1,167			87			1,254



For the six months ended June 30,	Energy Chemistry Technologies			Corporate and Other			Total
2019
Net revenue from external customers	$	77,949		$	—		$	77,949
Income (loss) from operations	(12,984		)	(15,138		)	(28,122		)
Depreciation and amortization	3,718			661			4,379
Capital expenditures	767			—			767

2018
Net revenue from external customers	$	80,615		$	—		$	80,615
Income (loss) from operations	(38,095		)	(18,269		)	(56,364		)
Depreciation and amortization	3,566			1,110			4,676
Capital expenditures	2,178			453			2,631

Assets of the Company by reportable segments are as follows (in thousands):



	June 30, 2019		December 31, 2018
Energy Chemistry Technologies	$	144,106	$	139,205
Corporate and Other	119,710		28,208
Total segments	263,816		167,413
Held for sale	—		118,470
Total assets	$	263,816	$	285,883

Geographic Information

Revenue by country is based on the location where services are provided and products are used. No individual country other than the United States (“U.S.”) accounted for more than 10% of revenue, except as noted below. Revenue by geographic location is as follows (in thousands):



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
U.S.	$	31,114	$	36,176	$	69,990	$	72,886
Other countries	3,578		3,370		7,959		7,729
Total	$	34,692	$	39,546	$	77,949	$	80,615

Long-lived assets held in countries other than the U.S. are not considered material to the consolidated financial statements.

Major Customers

Revenue from major customers, as a percentage of consolidated revenue, is as follows:



	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Customer A	17.6	%	*		15.4	%	*
Customer B	11.0	%	18.2	%	11.3	%	*
Customer C	*		*		10.7	%	*

* This customer did not account for more than 10% of revenue.