Business Segment, Geographic and Major Customer Information

12 Months Ended

Dec. 31, 2021

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 the chief operating decision-maker in deciding how to allocate resources and assess performance. The operations of the Company are categorized into the following reportable segments: CT and DA.

Chemistry Technologies. The CT segment includes green specialty chemistries, logistics and technology services, which enable its customers to pursue improved efficiencies and performance throughout the life cycle of their wells, helping customers improve their ESG and operational goals. This segment also includes a portfolio of specialty chemical products to address the long term challenges of in the janitorial, sanitization, food services, and adjacent markets. Customers of the CT segment include major integrated oil and gas companies, oilfield services companies, independent oil and gas companies, national and state-owned oil companies, and international supply chain management companies.

Data Analytics. The DA segment, created in the second quarter of 2020 in conjunction with the acquisition of JP3 on May 18, 2020, includes the design, development, production, sale and support of equipment and services that create and provide valuable information on the composition and properties of energy customers’ hydrocarbon fluids. The company markets products and services that support in-line data analysis of hydrocarbon components and properties. Customers of the DA segment span across the entire oil and gas market, from upstream production to midstream facilities to refineries and distribution networks.

The Company evaluates performance based upon a variety of criteria. The primary financial measure is segment operating income (loss). 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):

As of and for the years ended December 31,	Chemistry Technologies		Data Analytics (1)		Corporate and Other		Total
2021
Revenue from external customers	$	35,288	$	4,339	$	—	$	39,627
Revenue from related party	3,641		—		—		3,641
Loss from operations	(5,466)		(12,168)		(13,822)		(31,456)
Depreciation and amortization	939		70		2		1,011
Additions to long-lived assets	39		—		—		39
2020
Revenue from external customers	$	50,310	$	2,831	$	—	$	53,141
Revenue from related party	—		—		—		—
Loss from operations	(88,486)		(36,407)		(18,755)		(143,648)
Depreciation and amortization	2,519		422		471		3,412
Additions to long-lived assets	1,425		—		—		1,425

(1) The Company formed the DA segment in the second quarter of 2020 upon acquiring JP3.

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

	December 31,
	2021		2020
Chemistry Technologies	$	34,387	$	43,346
Data Analytics	7,329		13,201
Corporate and Other	8,528		29,663
Total assets	$	50,244	$	86,210

Geographic Information

Revenue by country is based on the location where services are provided and products are sold. No individual countries other than the U.S. and the United Arab Emirates (“UAE”) accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):

	Years ended December 31,
	2021		2020
U.S.	$	33,187	$	40,632
UAE	4,512		6,763
Other countries	5,569		5,746
Total revenue	$	43,268	$	53,141

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 (in thousands):

	Chemistry Technologies		% of Total Revenue
Year ended December 31, 2021
Customer A	$	4,067	9	%
Customer B	11,632		26	%

Year ended December 31, 2020
Customer A	$	12,891	24	%
Customer B	9,394		18	%

The majority of the Company’s revenue is derived from its CT segment, which consists predominantly of customers within the oil and gas industry. Customers within the oil and gas industry include oilfield services companies, integrated oil and natural gas companies, independent oil and natural gas companies, and state-owned national oil companies. The concentration in the oil and gas industry increases credit and business risk.