8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 8, 2022

Date of Report (Date of earliest event reported)

Flotek Industries, Inc.

(Exact name of registrant as specified in its charter)

Delaware	001-13270	90-0023731
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

8846 N. Sam Houston Parkway W.,

Houston, TX 77064

(Address of principal executive office and zip code)

(713) 849-9911

(Registrant’s telephone number, including area code)

(Not applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Exchange on which registered
Common Stock, $0.0001 par value	FTK	NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.    Results of Operations and Financial Condition

On November 8, 2022, Flotek Industries, Inc. (the “Company”) issued a press release providing its financial results for the quarter ended September 30, 2022 and announcing that it will hold a conference call to discuss its operating results. The press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information furnished pursuant to Item 2.02 of this Current Report on Form 8-K and in Exhibit 99.1 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is not subject to the liabilities of that section and is not deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01    Regulation FD Disclosure

On November 8, 2022, the Company provided on its website a presentation containing information relating to its current operations and financial results. A copy of the presentation is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information furnished pursuant to Item 7.01 of this Current Report on 8-K and in Exhibit 99.2 shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act, is not subject to the liabilities of that section and is not deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01.    Financial Statements and Exhibits

    (d)    Exhibits.

Exhibit Number	Description
99.1	Press Release dated November 8, 2022
99.2	Presentation of Flotek Industries, Inc.

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	FLOTEK INDUSTRIES, INC.
Date: November 8, 2022	/s/ Nicholas J. Bigney
	Name:	Nicholas J. Bigney
	Title:	Senior Vice President, General Counsel & Chief Compliance Officer

EX-99.1

Flotek Industries 8846 N. Sam Houston Pkwy W., Suite 150 Houston, Texas 77064 (713) 849-9911 www.flotekind.com FLOTEK ANNOUNCES THIRD QUARTER 2022 FINANCIAL RESULTS HOUSTON, November 8, 2022 - Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced third quarter results for the three months ended September 30, 2022.  Total third quarter revenue of $45.6MM increased 55% sequentially, 4.5x year-over-year, and exceeded full year 2021 revenue of $43.3MM  Announced agreement with ProFrac Services, LLC to supply 20 JP3 Verax® analyzers with six placed in service in the fourth quarter  Adjusted EBITDA as a percentage of revenue improved for the fifth consecutive quarter, to negative 18% compared to negative 25% in the second quarter 2022 and negative 42% in the first quarter 2022  Quarter-end cash and cash equivalents of $8.6MM was impacted by continued rapid growth and the associated increase in working capital. As of November 8, 2022, cash had improved to $11.1MM John W. Gibson, Jr., Chairman, President and Chief Executive Officer of Flotek stated, “We are pleased to report our third quarter 2022 results in which revenue of $45.6MM increased 55% compared to the second quarter 2022 and 4.5x compared to the third quarter of 2021. We doubled the number of ProFrac fleets we serviced sequentially, with growth continuing in the fourth quarter. In addition, our transactional chemistry business continues its growth trajectory, achieving double digit sequential revenue growth in the quarter, and gaining market share for the 5th quarter in a row. Overall we served approximately 8.4% of total active US frac fleets in the third quarter.” “Operational momentum continued during the quarter. Gross margin of negative $1.8MM was less negative in Q3 compared to Q2, and included $1.2MM of non-cash contract asset amortization related to the ProFrac contract and a $1.0MM write down of inventory related to discontinuing the FDA-regulated hand sanitizer product line. We continue to market the remaining professional chemistries product portfolio. We are achieving operational efficiencies and economies of scale while rapidly increasing revenue. The difficult freight environment experienced in Q2 improved, and freight spend as a percentage of revenue declined significantly in Q3.” “The third quarter displayed strong revenue growth, improved gross margins, and increased volumes. We are confident that our workforce, infrastructure, and processes are sufficient to capture additional market share. We are pleased that improving gross margins resulted in higher Adjusted EBITDA as a percentage of revenue for the fifth quarter in a row. While Adjusted EBITDA in absolute terms declined from a loss of $7.2MM in the second quarter to a loss of $8.4MM in the third quarter, included in that number is a total bonus accrual of $1.9MM associated with the first three quarters of 2022. In conclusion, the market is robust, our execution is outstanding, and achieving positive Adjusted EBITDA remains our primary focus.” Recent Operational Highlights  Served approximately 8.4% of active US frac fleets in the third quarter, representing an order of magnitude increase over the average number of fleets served in 2021.  Announced an agreement with ProFrac to supply them with 20 of JP3’s Verax® analyzers to be used in the field to enable displacement of diesel fuel with field gas. Our Verax® analyzers have been deployed on six ProFrac fleets, and the initial feedback is positive. Industry research shows that maximizing the use of field gas can result in reduction in diesel fuel consumption of 50%+. This reduces pollution and greenhouse emissions associated with burning diesel fuel at the wellsite, but also reduces fuel burned by delivery trucks and the wear and tear caused by truck rolls. Key Third Quarter 2022 Financial Results  Total revenues: Flotek generated third quarter 2022 consolidated revenue of $45.6 million, up 55% from $29.4 million in the second quarter of 2022 and up 348% compared to the third quarter of 2021. Higher revenue was driven by continued increases in activity across our customer base in both the Chemistry Technologies and Data Exhibit 99.1

Analytics segments. Total revenue included a $1.2 million non-cash amortization of contract assets that reduced revenue.  Gross margin: Flotek reported gross margin of negative $1.8 million, up from negative $2.3 million in the second quarter of 2022. This included a non-cash revenue reduction of $1.2 million associated with the ProFrac contract asset and $1.0 million inventory write down associated with our decision to cease the manufacture and sale of FDA-regulated hand sanitizers.  Selling, general, and administrative expense: Flotek reported SG&A of $9.0 million, up 22% compared to the second quarter of 2022 of $7.4 million, and up 121% compared to the third quarter of 2021 of $4.1 million. The increase in SG&A includes a $1.9 million bonus accrual.  Net Income and EPS: The Company recorded net income of negative $18.8 million, or a loss of $0.25 per basic and diluted share, in the third quarter 2022 compared to net income of $6.2 million, or positive $0.08 per basic share and negative $0.05 per diluted share, in the second quarter of 2022, and $0.5 million ($0.01 per basic and diluted share) in the third quarter of 2021. Net income in the third quarter 2022 included a $4.25 million non-cash loss associated with the revaluation of convertible notes.  Non-GAAP Adjusted EBITDA: Adjusted EBITDA for the third quarter of 2022 was negative $8.4 million, a decrease of $1.2 million compared to negative $7.2 million in the second quarter 2022, and a decrease of $2.1 million compared to negative $6.3 million in the third quarter of 2021. Adjusted EBITDA includes a $1.9 million bonus accrual. Balance Sheet and Liquidity  As of September 30, 2022, the Company reported cash and cash equivalents of $8.6 million compared to $33.1 million at the end of the second quarter 2022. Rapid volume growth impacted our working capital in the quarter. We are implementing procedures to improve our order to cash processes, and as of November 8, 2022, our cash and cash equivalents had improved to $11.1 million.  The Company is currently marketing for sale the Monahans, TX facility and we expect further progress on that sale in the coming quarters. The Monahans facility remained classified as held for sale as of September 30, 2022. Conference Call Details Flotek will host a conference call on November 9, 2022, at 8:00 a.m. CST (9:00 a.m. EST) to discuss its third quarter results for the three months ended September 30, 2022. Participants may access the call through Flotek’s website at www.flotekind.com under “Webcasts’’ or by telephone at 1-844-835-9986 approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website. About Flotek Industries, Inc. Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial, commercial, and consumer markets improve their Environmental, Social, and Governance performance. Flotek’s Chemistry Technologies segment develops, manufactures, packages, distributes, delivers, and markets high-quality cleaning, disinfecting and sanitizing products for commercial, governmental and personal consumer use. Additionally, Flotek empowers the energy industry to maximize the value of their hydrocarbon streams and improve return on invested capital through its real-time data platforms and green chemistry technologies. Flotek serves downstream, midstream, and upstream customers, both domestic and international. Flotek is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com. Forward -Looking Statements Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and

outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect, any event or circumstance that may arise after the date of this press release. Inquiries, contact: Bernie Colson SVP, Corporate Development & Sustainability E: ir@flotekind.com P: (713) 726-5322

FLOTEK INDUSTRIES, INC. Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended Nine Months Ended 9/30/2022 9/30/2021 6/30/2022 9/30/2022 9/30/2021 Revenue: Revenue from external customers $ 15,206 $ 8,847 $ 12,824 $ 38,412 $ 29,782 Revenue from related party 30,417 1,332 16,549 49,462 1,332 Total revenues 45,623 10,179 29,373 87,874 31,114 Cost of goods sold 47,465 4,022 31,678 92,500 26,876 Gross loss (1,842) 6,157 (2,305) (4,626) 4,238 Operating costs and expenses: Selling, general, and administrative 9,035 4,092 7,431 21,345 14,379 Depreciation and amortization 177 233 182 554 793 Research and development 985 1,186 1,115 3,515 4,194 Gain on sale of property and equipment (10) 14 (1,914) (1,916) (55) Gain on lease termination — — — (584) — Change in fair value of contract consideration convertible notes payable 4,250 — (17,158) (9,016) — Total operating costs and expenses 14,437 5,525 (10,344) 13,898 19,311 Income (loss) from operations (16,279) 632 8,039 (18,524) (15,073) Other income (expense): Paycheck protection plan loan forgiveness — — — — 881 Interest expense (2,321) (18) (1,597) (4,586) (53) Other income (expense) , net (187) (102) (104) (67) (62) Total other income (expense), net (2,508) (120) (1,701) (4,653) 766 Income (loss) before income taxes (18,787) 512 6,338 (23,177) (14,307) Income tax expense (7) (3) (98) (101) (30) Net Income (loss) $ (18,794) $ 509 6,240 (23,278) (14,337) Income (loss) per common share: Basic $ (0.25) $ 0.01 $ 0.08 $ (0.31) $ (0.21) Diluted $ (0.25) $ 0.01 $ (0.05) $ (0.31) $ (0.21) Weighted average common shares: Weighted average common shares used in computing basic loss per common share 75,312 69,324 74,861 74,095 68,665 Weighted average common shares used in computing diluted loss per common share 75,312 70,176 124,335 74,095 68,665

FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 8,508 $ 11,534 Restricted cash 100 1,790 Accounts receivable, net of allowance for doubtful accounts of $566 and $659 at September 30, 2022 and December 31, 2021, respectively 17,597 13,297 Accounts receivable, related party 25,916 — Inventories, net 19,189 9,454 Other current assets 4,309 3,762 Current contract asset 7,196 — Assets held for sale 535 2,762 Total current assets 83,350 42,599 Long-term contract assets 73,878 Property and equipment, net 4,781 5,296 Operating lease right-of-use assets 1,715 2,041 Deferred tax assets, net 278 279 Other long-term assets 17 29 TOTAL ASSETS $ 164,019 $ 50,244 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 29,653 7,616 Accrued liabilities 9,400 8,996 Income taxes payable 104 4 Interest payable 118 82 Current portion of operating lease liabilities 653 602 Current portion of finance lease liabilities 35 41 Current portion of long-term debt 1,853 1,436 Convertible notes payable 19,055 — Contract consideration convertible notes payable 73,030 — Total current liabilities 133,901 18,777 Deferred revenue, long-term 74 91 Long-term operating lease liabilities 6,582 7,779 Long-term finance lease liabilities 29 53 Long-term debt 2,935 3,352 TOTAL LIABILITIES 143,521 30,052 Stockholders’ equity: Common stock, $0.0001 par value, 240,000,000 shares authorized; 83,424,763 shares issued and 77,283,733 shares outstanding at September 30, 2022 ; 79,483,837 shares issued and 73,461,203 shares outstanding at December 31, 2021 8 8 Additional paid-in capital 386,958 363,417 Accumulated other comprehensive income (loss) 292 81 Accumulated deficit (332,492) (309,214) Treasury stock, at cost; 6,141,030 and 6,022,634 shares at September 30, 2022 and December 31, 2021, respectively (34,268) (34,100) Total stockholders’ equity 20,498 20,192 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 164,019 $ 50,244

FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Nine months ended September 30, 2022 2021 Cash flows from operating activities: Net loss $ (23,278) $ (14,337) Adjustments to reconcile net loss to net cash used in operating activities: Change in fair value of contingent consideration (106) (701) Change in fair value of contract consideration convertible notes payable (9,016) — Amortization of convertible note issuance costs 663 — Payment-in-kind interest expense 3,861 — Amortization of contract assets 1,986 — Depreciation and amortization 554 793 Provision for doubtful accounts, net of recoveries 147 (42) Inventory purchase commitment settlement — (7,633) Provision for excess and obsolete inventory 666 687 Inventory write down 1,036 — Gain on sale of property and equipment (1,916) (55) Gain on lease termination (584) — Non-cash lease expense 168 223 Stock compensation expense 2,262 2,710 Deferred income tax (benefit) expense 1 13 Paycheck protection plan loan forgiveness — (881) Changes in current assets and liabilities: Accounts receivable (5,748) 111 Accounts receivable, related party (24,616) — Inventories (11,373) 2,330 Income taxes receivable 3 405 Other assets (537) (1,696) Contract assets, net (3,600) — Accounts payable 22,036 (604) Accrued liabilities 493 415 Operating lease liabilities (404) — Income taxes payable 100 (53) Interest payable 36 36 Net cash used in operating activities (47,166) (18,279) Cash flows from investing activities: Capital expenditures (175) (31) Proceeds from sale of assets 4,215 74 Net cash provided by investing activities 4,040 43 Cash flows from financing activities: Proceeds from issuance of convertible notes 21,150 — Payment of issuance costs of convertible notes (1,084) — Proceeds from issuance of warrants 19,500 — Payment of issuance costs of stock warrants (1,170) — Payments to tax authorities for shares withheld from employees (191) (407) Proceeds from issuance of stock 24 — Purchase from sale of common stock — Payments for finance leases (30) (44) Net cash provided by (used in) provided by financing activities 38,199 (451) Effect of changes in exchange rates on cash and cash equivalents 211 (70) Net change in cash, cash equivalents and restricted cash (4,716) (18,757) Cash and cash equivalents at the beginning of period 11,534 38,660 Restricted cash at the beginning of period 1,790 664 Cash and cash equivalents and restricted cash at beginning of period 13,324 39,324 Cash and cash equivalents at end of period 8,508 20,527 Restricted cash at the end of period 100 40 Cash, cash equivalents and restricted cash at end of period $ 8,608 $ 20,567

FLOTEK INDUSTRIES, INC. Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings (in thousands) Three Months Ended Nine Months Ended 9/30/2022 9/30/2021 6/30/2022 9/30/2022 9/30/2021 Net income (loss) $ (18,794) $ 509 $ 6,240 $ (23,278) $ (14,337) Interest expense 2,321 18 1,597 4,586 53 Interest income — (1) — — (9) Income tax (benefit) expense 7 3 98 101 30 Depreciation and amortization 177 233 182 554 793 EBITDA (Non-GAAP) (16,289) 762 8,117 (18,037) (13,470) Stock compensation expense 671 960 852 2,263 2,710 Severance and retirement (219) 11 610 387 991 M&A transaction costs 28 (401) (228) (106) (458) Inventory write down 1,036 — — 1,036 — (Gain) loss on disposal of assets (10) 14 (1,914) (1,916) (55) Gain on lease termination — — — (584) — Contract consideration convertible notes payable revaluation adjustment 4,250 — (17,158) (9,016) — Amortization of contract assets 1,249 — 737 1,986 — PPP loan forgiveness — — — — (881) Employee retention credit — (927) — — (2,851) Non-Recurring professional fees 882 993 1,742 2,899 2,046 Inventory Purchase Commitment Settlement — (7,633) — — (7,633) Inventory Step-Up — (78) — — 2 Winter Storm (Natural Disaster) — — — — 199 Adjusted EBITDA (Non-GAAP) $ (8,402) $ (6,299) $ (7,242) $ (21,088) $ (19,400) (1) Management believes that adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021, and the three months ended June 30, 2022, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the expenses noted above to be outside of the Company’s normal operating results. Management analyses operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish operational goals.

EX-99.2

NOVEMBER 2022 Investor Presentation // NYSE: FTK Exhibit 99.2

Forward-Looking Statements Certain statements set forth in this presentation constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward- looking statements in this presentation reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the "Risk Factors" section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this presentation. Investor Presentation / August 2022 // 2

FLOTEK INDUSTRIES (FTK) Technology-driven chemistry and data analytics company Founded: 1985 Employees: ~155 Countries with Clients: 15+ Corporate Headquarters: Houston Company Overview Energy Chemistry Technologies Sustainable stimulation chemistry to maximize production and minimize environmental impact. Commercial & Consumer Professional Chemistry High-performance products for commercial and personal use. Digital Technologies & Data Analytics Transforming business through real-time data, monitoring and visualization across the energy value chain. Abu Dhabi, UAE Raceland, LA Houston, TX (HQ) Marlow, OK Monahans, TX Headquarters Offices Chemical Technologies Data Analytics Investor Presentation / August 2022 // 3

Our Vision And Mission Our Vision Flotek Industries, Inc. creates solutions to reduce the environmental impact of energy on air, water, land and people. Our Mission To be the collaborative ESG partner of choice for sustainable chemistry technology and digital analytics solutions. Value Proposition We collaborate and deliver sustainable, optimized chemistry and data solutions that maximize our customer’s value while improving their ESG profile. Sustainable Chemistry & Data Solutions Collaborative Partnerships Investor Presentation / August 2022 // 4

Strategic Priorities Flawless Execution Exemplary safety and service delivery Capital-light Growth No new capital required to support robust growth Environmental Leadership Focus on protecting people, land, air, and water Investor Presentation / August 2022 // 5 Sustainable Revenue 10-year contract with guaranteed minimum of $2B+ Focus on Profitability Upper quartile performance of SG&A as a percentage of revenue Strong Balance Sheet Low debt balance positions company to prosper through the cycle

Flawless Execution • ISO 9001, EPA, and FDA certification – no major findings • Maintained HSE regulatory compliance in the areas of: Air Permits, Storm Water Permits, Haz Mat Reporting, Haz Waste Reporting, OSHA Programs and Reporting. Flotek – HSE Metrics Year TRIR Average # of Employees Recordable Injuries Lost Time Days Restricted Days DART (Days Away) Auto Accidents 2018 0.963 357 5 180 0 0.385 2 2019 0.372 235 1 0 0 0.0 1 2020 0.800 188 2 29 59 0.40 1 2021 0.000 149 0 0 0 0 0 2022 YTD 0.670 144 1 0 0 0 0 Safety is Priority #1 Minimize Non-Productive Time (NPT) Investor Presentation / August 2022 // 6 • Focus on customer intimacy to align organizational capabilities with client needs • Built client fulfillment team to improve real-time communication with customers’ wellsite operations • Deployed real-time telemetry to entire ISO fleet to provide instant monitoring of field-deployed chemistry

100 150 200 250 300 350 400 Supportive Industry Fundamentals • E&P focus on production stability and margin, not growth and market share • Capital discipline has been resilient across the value chain • Focus on ROIC and returning capital to shareholders Increased Industry Stability – So Far This Cycle is Different US onshore: Active vs Working fleet count Number of fleets Investor Presentation / August 2022 // 7 Q2 21 Q3 21 Q4 21 Q1 22 *Weekly Fleet Counts Q3: 286 Avg Q2 22 Macro-environment factors • 7–10-year underinvestment in infrastructure • Continued supply chain disruptions Energy sector factors (OFS companies) • Equipment tightness expected over next +18 months • Lower capital intensity (replace vs build new) • Prioritize balance sheet strength Energy sector factors (Oil and gas operators) • OPEC spare production at historical low • Focus on developing known resources and less long-term exploration programs Q3 22

Profrac Partnership Benefits • $2.1B in revenue backlog over 10 years • Structure of contract provides for predictability of cash flow • Contract provides industry endorsement and is not exclusive • Scale allows for greater cost efficiency through procurement • Friction reducers covered by a cost-plus mechanism that ensures a minimum margin • Provides opportunity to upsell higher margin chemicals ProFrac Contract Proves FTK is Industry’s Collaborative Partner of Choice ProFrac Projected Contract Revenue Investor Presentation / August 2022 // 8 0 50 100 150 200 250 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E

Gaining Market Share – Customer Consolidation Source: ProFrac ProFrac Strategy Supportive of Flotek Growth 44 Fleets by the end of 2022 November 1: ProFrac closes on acquisition of US Well Services (USWS) in all stock transaction Investor Presentation / August 2022 // 9

Gaining Market Share – Customer Consolidation Built-in revenue growth • ~286 average total NAM frac fleets in Q3 • Fully ramped ProFrac contract (30 fleets) translates to 10.5% market share • Served 16 ProFrac fleets on average in Q3 • FTK entitled to provide chemistry by volume on the greater of 30 fleets or 70% of ProFrac’s total fleet count • Avg basin spend is $500k - $600k/month per fleet Strong consolidation trend continues • In March, ProFrac acquired FTS International (FTSI), a pure-play frac services provider with 25 total fleets • In November, ProFrac closed on the acquisition of US Well Services • Top 5 frac service providers account for ~70% of market Halliburton Liberty Profrac Nextier ProPetro Universal Cudd Calfrac Evolution Other Market Share by Fleet Current North America Frac Fleet Investor Presentation / August 2022 // 10

Transactional Growth Managing for Rapid Growth Investor Presentation / August 2022 // 11 Transactional revenue expansion continues to outpace frac fleet market • 10% growth compared to Q2 2022 • 44% growth compared to Q3 2021 Transactional business produces higher margins • Higher proportion of value-added chemistry Q3 2022 Revenue Breakdown ProFrac Transactional

Flotek Revenue Opportunity Managing for Rapid Growth Quarterly Consolidated Revenue Investor Presentation / August 2022 // 12 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Q1 2020A Q2 2020A Q3 2020A Q4 2020A Q1 2021A Q2 2021A Q3 2021A Q4 2021A Q1 2022A Q2 2022A Q3 2022A Q4 2022E

Chemical Portfolio Strategy – Margin Improvement Investor Presentation / August 2022 Reducing costs • Reduced personnel costs while reinvesting in revenue generating roles - net annualized cost savings of $1MM+ $- $10,000 $20,000 $30,000 $40,000 $50,000 2017 2018 2019 2020 2021 2022 (Budget) G&A R&D Multiple Opportunities to Drive Improved Margins Top Quartile SG&A (% of Revenue) Corporate Spend COGS are the majority of cost Locked-in positive margin on industry loss-leading friction reducers In-basin deployment and blending • Establish forward staging areas • Reduction in product returns from customers Leverage volume spend • Strategic supply and economies of scale Technical reformulation support • Raw material cost reductions on key formulations // 13

Capital-light Growth Marlow Liquid Blending Facility • Capacity ~ 60MM gallons/year • 35 bulk storage tanks: 755k gallons • Heated bulk storage: 195k gallons • Ambient bulk storage: 560k gallons Low Asset Utilization Rate Means Minimal Capex Required For Growth Investor Presentation / August 2022 // 14

JP3 Gaining Traction Q3 agreement to provide 20 Verax® analyzers to ProFrac increases business momentum JP3 Natural Gas TAM = $1.1B Investor Presentation / August 2022 // 15 Natural Gas Crude Oil NGL Refined Product JP3 Total Addressable Market (TAM) = $1.3B Transmission Production Processing

Path to Positive Adjusted EBITDA Margin Revenue Growth + Expense Management + Capital Light Growth = Positive Adjusted EBITDA Margin Investor Presentation / August 2022 // 16 -80.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% Q1 2020A Q2 2020A Q3 2020A Q4 2020A Q1 2021A Q2 2021A Q3 2021A Q4 2021A Q1 2022A Q2 2022A Q3 2022E Q4 2022E 2022 Quarterly Adjusted EBITDA Margin Consistently improving Adjusted EBITDA margin over past 5 quarters provides evidence of progress toward positive margins

Strong Balance Sheet Cash Balance • November 8th, 2022 – $11.1MM • September 30th, 2022 – $8.6MM ProFrac Equity Investment • ProFrac invested $19.5MM in Flotek pre-funded warrants • Purchase of pre-funded warrants completed at a 20% premium to 30-day VWAP Real Estate Asset Optimization • Waller, TX: Sold facility for $4.3MM in April, 2022 • Monahans, TX: Currently marketing property • Calgary, Canada: Lease terminated at the end of February, 2022 Paycheck Protection Program (PPP) • In Q1 2021 Flotek secured full forgiveness for JP3 PPP loan of $881k • Filed for substantial forgiveness of Flotek’s $4.8MM PPP loan Taking decisive action to preserve balance sheet strength and liquidity to weather all cycles Investor Presentation / August 2022 // 17

Our Solutions: Accelerating ESG Goals For Our Customers Our strategy is to improve our customers’ ESG performance through green chemistry and digital transformation solutions. • Our products are positioned to deliver value in an ESG-focused world. • We help our partners and customers enhance their license to operate through green chemistry and data analytics. • Our green chemistry technologies reduce total cost of ownership and environmental risk. • Our real-time data analytics help transform businesses, reducing their carbon footprint, energy consumption and emissions. • Market expansion opportunities through ESG partnerships and adjacent markets (industrial, geothermal, agriculture, solar, and advancing blue/turquoise hydrogen). Flotek Green Chemistry High-performance green chemistry Bio-based chemistry portfolio reduces liabilities in the event of cleanup or spills Sustainable water use Reduce volumes/usage of fresh water and increase usage of produced water Reduced greenhouse gas emissions and waste Reducing carbon footprint, energy consumption and emissions through more efficient operations and real-time monitoring A partnership with far-reaching positive effects Maximize the convergence of asset performance, environmental protection, economic value and safety of the community Reduced environmental impact & risk Patented portfolio of products based on naturally sustainable, biodegradable, non-toxic plant terpenes Investor Presentation / August 2022 // 18

// Appendix // 19

Recent Financials Unaudited Condensed Consolidated Statement of Operations (in thousands, except share data) // 20 Three Months Ended Nine Months Ended 9/30/2022 9/30/2021 6/30/2022 9/30/2022 9/30/2021 Revenue: Revenue from external customers $ 15,206 $ 8,847 $ 12,824 $ 38,412 $ 29,782 Revenue from related party 30,417 1,332 16,549 49,462 1,332 Total revenues 45,623 10,179 29,373 87,874 31,114 Cost of goods sold 47,465 4,022 31,678 92,500 26,876 Gross loss (1,842) 6,157 (2,305) (4,626) 4,238 Operating costs and expenses: Selling, general, and administrative 9,035 4,092 7,431 21,345 14,379 Depreciation and amortization 177 233 182 554 793 Research and development 985 1,186 1,115 3,515 4,194 Gain on sale of property and equipment (10) 14 (1,914) (1,916) (55) Gain on lease termination — — — (584) — Change in fair value of contract consideration convertible notes payable 4,250 — (17,158) (9,016) — Total operating costs and expenses 14,437 5,525 (10,344) 13,898 19,311 Income (loss) from operations (16,279) 632 8,039 (18,524) (15,073) Other income (expense): Paycheck protection plan loan forgiveness — — — — 881 Interest expense (2,321) (18) (1,597) (4,586) (53) Other income (expense) , net (187) (102) (104) (67) (62) Total other income (expense), net (2,508) (120) (1,701) (4,653) 766 Income (loss) before income taxes (18,787) 512 6,338 (23,177) (14,307) Income tax expense (7) (3) (98) (101) (30) Net Income (loss) $ (18,794) $ 509 6,240 (23,278) (14,337) Income (loss) per common share: Basic $ (0.25) $ 0.01 $ 0.08 $ (0.31) $ (0.21) Diluted $ (0.25) $ 0.01 $ (0.05) $ (0.31) $ (0.21) Weighted average common shares: Weighted average common shares used in computing basic loss per common share 75,312 69,324 74,861 74,095 68,665 Weighted average common shares used in computing diluted loss per common share 75,312 70,176 124,335 74,095 68,665

Unaudited Condensed Consolidated Balance Sheets (in thousands, except share data) // 21 September 30, 2022 December 31, 2021 ASSETS Current assets: Cash and cash equivalents $ 8,508 $ 11,534 Restricted cash 100 1,790 Accounts receivable, net of allowance for doubtful accounts of $566 and $659 at September 30, 2022 and December 31, 2021, 17,597 13,297 Accounts receivable, related party 25,916 — Inventories, net 19,189 9,454 Other current assets 4,309 3,762 Current contract asset 7,196 — Assets held for sale 535 2,762 Total current assets 83,350 42,599 Long-term contract assets 73,878 Property and equipment, net 4,781 5,296 Operating lease right-of-use assets 1,715 2,041 Deferred tax assets, net 278 279 Other long-term assets 17 29 TOTAL ASSETS $ 164,019 $ 50,244 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 29,653 7,616 Accrued liabilities 9,400 8,996 Income taxes payable 104 4 Interest payable 118 82 Current portion of operating lease liabilities 653 602 Current portion of finance lease liabilities 35 41 Current portion of long-term debt 1,853 1,436 Convertible notes payable 19,055 — Contract consideration convertible notes payable 73,030 — Total current liabilities 133,901 18,777 Deferred revenue, long-term 74 91 Long-term operating lease liabilities 6,582 7,779 Long-term finance lease liabilities 29 53 Long-term debt 2,935 3,352 TOTAL LIABILITIES 143,521 30,052 Stockholders’ equity: Common stock, $0.0001 par value, 240,000,000 shares authorized; 83,424,763 shares issued and 77,283,733 shares outstanding at September 30, 2022 ; 79,483,837 shares issued and 73,461,203 shares outstanding at December 31, 2021 8 8 Additional paid-in capital 386,958 363,417 Accumulated other comprehensive income (loss) 292 81 Accumulated deficit (332,492) (309,214) Treasury stock, at cost; 6,141,030 and 6,022,634 shares at September 30, 2022 and December 31, 2021, respectively (34,268) (34,100) Total stockholders’ equity 20,498 20,192 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 164,019 $ 50,244

Unaudited Condensed Consolidated Statements of Cash Flows (in thousands) // 22 Nine months ended September 30, 2022 2021 Cash flows from operating activities: Net loss $ (23,278) $ (14,337) Adjustments to reconcile net loss to net cash used in operating activities: Change in fair value of contingent consideration (106) (701) Change in fair value of contract consideration convertible notes payable (9,016) — Amortization of convertible note issuance costs 663 — Payment-in-kind interest expense 3,861 — Amortization of contract assets 1,986 — Depreciation and amortization 554 793 Provision for doubtful accounts, net of recoveries 147 (42) Inventory purchase commitment settlement — (7,633) Provision for excess and obsolete inventory 666 687 Inventory write down 1,036 — Gain on sale of property and equipment (1,916) (55) Gain on lease termination (584) — Non-cash lease expense 168 223 Stock compensation expense 2,262 2,710 Deferred income tax (benefit) expense 1 13 Paycheck protection plan loan forgiveness — (881) Changes in current assets and liabilities: Accounts receivable (5,748) 111 Accounts receivable, related party (24,616) — Inventories (11,373) 2,330 Income taxes receivable 3 405 Other assets (537) (1,696) Contract assets, net (3,600) — Accounts payable 22,036 (604) Accrued liabilities 493 415 Operating lease liabilities (404) — Income taxes payable 100 (53) Interest payable 36 36 Net cash used in operating activities (47,166) (18,279) Cash flows from investing activities: Capital expenditures (175) (31) Proceeds from sale of assets 4,215 74 Net cash provided by investing activities 4,040 43 Cash flows from financing activities: Proceeds from issuance of convertible notes 21,150 — Payment of issuance costs of convertible notes (1,084) — Proceeds from issuance of warrants 19,500 — Payment of issuance costs of stock warrants (1,170) — Payments to tax authorities for shares withheld from employees (191) (407) Proceeds from issuance of stock 24 — Purchase from sale of common stock — Payments for finance leases (30) (44) Net cash provided by (used in) provided by financing activities 38,199 (451) Effect of changes in exchange rates on cash and cash equivalents 211 (70) Net change in cash, cash equivalents and restricted cash (4,716) (18,757) Cash and cash equivalents at the beginning of period 11,534 38,660 Restricted cash at the beginning of period 1,790 664 Cash and cash equivalents and restricted cash at beginning of period 13,324 39,324 Cash and cash equivalents at end of period 8,508 20,527 Restricted cash at the end of period 100 40 Cash, cash equivalents and restricted cash at end of period $ 8,608 $ 20,567

Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings (in thousands) // 23 Three Months Ended Nine Months Ended 9/30/2022 9/30/2021 6/30/2022 9/30/2022 9/30/2021 Net income (loss) $ (18,794) $ 509 $ 6,240 $ (23,278) $ (14,337) Interest expense 2,321 18 1,597 4,586 53 Interest income — (1) — — (9) Income tax (benefit) expense 7 3 98 101 30 Depreciation and amortization 177 233 182 554 793 EBITDA (Non-GAAP) (16,289) 762 8,117 (18,037) (13,470) Stock compensation expense 671 960 852 2,263 2,710 Severance and retirement (219) 11 610 387 991 M&A transaction costs 28 (401) (228) (106) (458) Inventory write down 1,036 — — 1,036 — (Gain) loss on disposal of assets (10) 14 (1,914) (1,916) (55) Gain on lease termination — — — (584) — Contract consideration convertible notes payable revaluation adjustment 4,250 — (17,158) (9,016) — Amortization of contract assets 1,249 — 737 1,986 — PPP loan forgiveness — — — — (881) Employee retention credit — (927) — — (2,851) Non-Recurring professional fees 882 993 1,742 2,899 2,046 Inventory Purchase Commitment Settlement — (7,633) — — (7,633) Inventory Step-Up — (78) — — 2 Winter Storm (Natural Disaster) — — — — 199 Adjusted EBITDA (Non-GAAP) $ (8,402) $ (6,299) $ (7,242) $ (21,088) $ (19,400) (1) Management believes that adjusted EBITDA for the three and nine months ended September 30, 2022 and 2021, and the three months ended June 30, 2022, is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods. Management views the expenses noted above to be outside of the Company’s normal operating results. Management analyses operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish operational goals.

PROFORMA SHARE COUNT CALCULATION // 24 Notes: 1) Proforma share count assumes maximum potential dilution. 2) Proforma share count excludes approximately 6MM treasury shares and shares reserved for equity compensation. Shares (MM) Current Shares Outstanding 78 Convertible Notes – First Tranche 36 Convertible Notes – Second Tranche 63 Pre-funded Warrants 13 Unvested Equity Awards 7 Total Proforma Diluted Shares 197

ACCOUNTING FOR CONVERTIBLE NOTES • Under ASC 718 (stock compensation), the contract notes are recorded at fair value upon issuance and remeasured to fair value quarterly with changes in fair value recorded as gains or losses. • Fair value is based on 3rd party valuation from Andersen and driven mainly by Flotek’s stock price, but is also impacted by the discount rate and other assumptions. • An increase in stock price results in an increase in fair value and is recorded as a non-cash loss. • In Q3 2022 we booked a non-cash loss of $4.25MM. While FTK stock remained approximately flat between June 30 and September 30, we experienced a change in discount rate assumption methodology. • A decline in stock price results in a decrease in fair value and is recorded as a non-cash gain. • In Q2 2022 we booked a non-cash gain of $17.2MM as FTK stock declined 21% between March 31 and June 30. • The Convertible Notes were issued to Profrac as contract consideration (“contract notes”) and recorded as debt and as a contract asset on Flotek’s books. • We will continue to record changes in fair value until the notes convert into Flotek common stock. • The valuation methodology can be read in its entirety in the 10Q. // 25

ACCOUNTING FOR CONTRACT ASSETS • Each quarter we will book non-cash contract asset amortization (revenue reduction) based on the value of the convertible notes issued to ProFrac amortized over the 10-year life of the Supply Agreement. • Amortization is based on a ten-year terms-based contract forecast. • In Q3 we booked a non-cash revenue reduction of $1.249MM compared to a Q2 reduction of $737,000. // 26 Years ending December 31, Estimated Amortization 2022 (excluding nine months ended September 30) 1,451 2023 7,918 2024 8,692 2025 8,692 2026 8,692 Thereafter through May 2032 45,629 Total contract assets 81,074

ACCOUNTING FOR PRE-FUNDED WARRANTS • Pre-funded warrants issued on June 21, 2022 to Profrac for $19.5 million cash • Net cash proceeds of $18.33 million • Shareholder vote required to exercise • Exercise price and fee of $4,500,000 for 13,104,839 shares will be paid by Profrac when exercised (effectively $.34/share) to convert to common shares • Warrants recorded as equity rather than liability • No income statement impact except for the potential higher share count and associated earnings per share dilution // 27

Investor Contact Bernie Colson SVP – Corporate Development & Sustainability investors@flotekind.com (713) 726-5322 // NYSE: FTK

XML

Cover	Aug. 09, 2022
Cover [Abstract]
Document Type	8-K
Document Period End Date	Nov. 08, 2022
Entity Registrant Name	Flotek Industries, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-13270
Entity Tax Identification Number	90-0023731
Entity Address, Address Line One	8846 N. Sam Houston Parkway W.
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77064
City Area Code	713
Local Phone Number	849-9911
Soliciting Material	false
Written Communications	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	FTK
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000928054
Amendment Flag	false