Business Segment, Geographic and Major Customer Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Business Segment, Geographic and Major Customer Information

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 two reportable segments: Chemistry Technologies and Data Analytics.

The Chemistry Technologies segment includes specialty chemistries and logistics which enable its customers to pursue improved efficiencies in the drilling and completion of their wells.

In the second quarter of 2020, the Company launched a line of sanitizers and disinfectants for commercial and personal consumer use. These products build on the Company’s historical expertise in chemistry and leverage its infrastructure, personnel, competencies, supply chain, research, and historic consumer market experiences yielding a competitive product offering in this rapidly growing segment. The newly launched products, which include hand and surface sanitizers, target growth opportunities across diverse sectors including hospitals, travel and hospitality, food services, e-commerce and retail, sports and entertainment and other industrial and commercial markets.

The Data Analytics segment, created in conjunction with the acquisition of JP3, includes the design, development, production, sale and support of equipment and services that create and provide valuable information about the composition of its energy customers’ hydrocarbon fluids.

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,	Chemistry Technologies			Data Analytics (1)			Corporate and Other			Total
2020
Net revenue from external customers	$	7,962		$	918		$	—		$	8,880
Loss from operations, including impairment	(3,596		)	(1,151		)	(5,484		)	(10,231		)
Depreciation and amortization	246			131			91			468
Capital expenditures	—			—			—			—
2019
Net revenue from external customers	$	34,692		$	—		$	—		$	34,692
Loss from operations	(7,651		)	—			(6,023		)	(13,674		)
Depreciation and amortization	1,933			—			186			2,119
Capital expenditures	306			—			—			306

For the six months ended June 30,	Chemistry Technologies			Data Analytics (1)			Corporate and Other			Total
2020
Net revenue from external customers	$	27,378		$	918		$	—		$	28,296
Loss from operations, including impairment	(66,257		)	(1,151		)	(12,908		)	(80,316		)
Depreciation and amortization	2,056			131			472			2,659
Capital expenditures	42			—			—			42
2019
Net revenue from external customers	$	77,949		$	—		$	—		$	77,949
Loss from operations	(12,984		)	—			(14,323		)	(27,307		)
Depreciation and amortization	3,718			—			661			4,379
Capital expenditures	767			—			—			767

⁽¹⁾ The financial information disclosed above for Data Analytics is for the period May 18, 2020 to June 30, 2020.

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

	June 30, 2020		December 31, 2019
Chemistry Technologies	$	34,439	$	116,110
Data Analytics	40,922		—
Corporate and Other	66,835		114,490
Total assets	$	142,196	$	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 June 30,				Six months ended June 30,
	2020		2019		2020		2019
U.S.	$	6,936	$	31,114	$	22,711	$	69,990
Other countries	1,944		3,578		5,585		7,959
Total	$	8,880	$	34,692	$	28,296	$	77,949

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,
	2020		2019		2020		2019
Customer A	22.6	%	17.6	%	29.4	%	15.4	%
Customer B	14.0	%	11.0	%	12.5	%	11.3	%
Customer C	*		*		12.3	%	10.7	%

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