Business Segment, Geographic and Major Customer Information

9 Months Ended

Sep. 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 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 as well as 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 September 30,	Energy Chemistry Technologies			Corporate and Other			Total
2019
Net revenue from external customers	$	21,879		$	—		$	21,879
Loss from operations	(5,984		)	(5,869		)	(11,853		)
Depreciation and amortization	1,870			188			2,058
Capital expenditures	1,102			—			1,102

2018
Net revenue from external customers	$	53,709		$	—		$	53,709
Income (loss) from operations	3,921			(8,001		)	(4,080		)
Depreciation and amortization	1,734			525			2,259
Capital expenditures	302			861			1,163



For the nine months ended September 30,	Energy Chemistry Technologies			Corporate and Other			Total
2019
Net revenue from external customers	$	99,827		$	—		$	99,827
Loss from operations	(18,968		)	(21,008		)	(39,976		)
Depreciation and amortization	5,588			849			6,437
Capital expenditures	1,869			—			1,869

2018
Net revenue from external customers	$	134,324		$	—		$	134,324
Loss from operations	(34,176		)	(26,270		)	(60,446		)
Depreciation and amortization	5,300			1,635			6,935
Capital expenditures	2,480			1,314			3,794

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



	September 30, 2019		December 31, 2018
Energy Chemistry Technologies	$	123,309	$	139,205
Corporate and Other	126,048		28,208
Total segments	249,357		167,413
Held for sale	—		118,470
Total assets	$	249,357	$	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 September 30,				Nine months ended September 30,
	2019		2018		2019		2018
U.S.	$	19,663	$	35,685	$	89,653	$	108,571
Other countries	2,216		18,024		10,174		25,753
Total	$	21,879	$	53,709	$	99,827	$	134,324

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 September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Customer A	35.9	%	*		16.7	%	*
Customer B	*		12.2	%	12.3	%	10.4	%
Customer C	6.6	%	25.6	%	*		13.6	%

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