Business Segment, Geographic and Major Customer Information

3 Months Ended

Mar. 31, 2020

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 business designs, develops, manufactures, packages, distributes, delivers, and markets reservoir-centric fluid systems, including specialty and conventional chemistries, for use in oil and gas 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 March 31,	Energy Chemistry Technologies			Corporate and Other			Total
2020
Net revenue from external customers	$	19,416		$	—		$	19,416
Loss from operations, including impairment	(70,269		)	184			(70,085		)
Depreciation and amortization	1,809			382			2,191
Capital expenditures	42			—			42

2019
Net revenue from external customers	$	43,256		$	—		$	43,256
Loss from operations	(4,703		)	(8,932		)	(13,635		)
Depreciation and amortization	1,785			475			2,260
Capital expenditures	461			—			461

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



	March 31, 2020		December 31, 2019
Energy Chemistry Technologies	$	45,883	$	116,110
Corporate and Other	90,891		114,490
Total assets	136,774		230,600

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. Revenue by geographic location is as follows (in thousands):



	Three months ended March 31,
	2020		2019
U.S.	$	15,775	$	38,875
Other countries	3,641		4,381
Total	$	19,416	$	43,256

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 March 31,
	2020		2019
Customer A	39.9	%	*
Customer B	17.9	%	19.0	%
Customer C	*		12.6	%

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