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Business Segment, Geographic and Major Customer Information
 6 Months Ended
Jun. 30, 2023
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:
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, and also helping customers improve their ESG and operational goals. 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 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.

Performance is 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 segments.
Summarized financial information of the reportable segments is as follows (in thousands):
As of and for the three months ended June 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2023
Revenue from external customers
Products$15,095 $1,620 $— $16,715 
Services374 731 — 1,105 
Total revenue from external customers15,469 2,351 — 17,820 
Revenue from related party— 
Products32,345 2 — 32,347 
Services272 155 — 427 
Total revenue from related parties32,617 157 — 32,774 
Gross profit2,603 1,301 — 3,904 
Change in fair value of Contract Consideration Convertible Notes Payable(3,874)— — (3,874)
Income (loss) from operations3,795 129 (3,252)672 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable712 — — 712 
Depreciation155 18 1 174 
Additions to long-lived assets— 135 — 135 
2022
Revenue from external customers
Products$11,740 $299 $— $12,039 
Services371 414 — 785 
Total revenue from external customers12,111 713 — 12,824 
Revenue from related party
Products16,549 — — 16,549 
Services— — — — 
Total revenue from related parties16,549 — — 16,549 
Gross loss(1,568)(737)— (2,305)
Change in fair value of Contract Consideration Convertible Notes Payable(17,158)— — (17,158)
Loss from operations14,944 (1,198)(5,707)8,039 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable868 — — 868 
Paid-in-kind interest on convertible notes payable— — 466 466 
Depreciation166 15 1 182 
Additions to long-lived assets5 — — 5 
As of and for the six months ended June 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2023
Revenue from external customers
Products$23,654 $3,562 $— $27,216 
Services1,039 1,217 — 2,256 
Total revenue from external customers24,693 4,779 — 29,472 
Revenue from related party— 
Products68,611 2 — 68,613 
Services272 245 — 517 
Total revenue from related parties68,883 247 — 69,130 
Gross profit3,038 2,747 — 5,785 
Change in fair value of Contract Consideration Convertible Notes Payable(29,969)— — (29,969)
Income (loss) from operations27,174 587 (8,577)19,184 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable2,129 — — 2,129 
Paid-in-kind interest on convertible notes payable— — 155 155 
Depreciation312 36 1 349 
Additions to long-lived assets30 230 32 292 
2022
Revenue from external customers
Products$20,650 $1,091 $— $21,741 
Services772 693 — 1,465 
Total revenue from external customers21,422 1,784 — 23,206 
Revenue from related party
Products19,046 — — 19,046 
Services— — — — 
Total revenue from related parties19,046 — — 19,046 
Gross loss(2,231)(553)— (2,784)
Change in fair value of Contract Consideration Convertible Notes Payable(13,266)— — (13,266)
Loss from operations8,887 (2,006)(9,126)(2,245)
Paid-in-kind interest on Contract Consideration Convertible Notes Payable1,026 — — 1,026 
Paid-in-kind interest on convertible notes payable— — 793 793 
Depreciation345 31 1 377 
Additions to long-lived assets5 — — 5 
Assets of the Company by reportable segments are as follows (in thousands):
June 30, 2023December 31, 2022
Chemistry Technologies$139,921 $146,542 
Data Analytics7,382 5,645 
Corporate and Other10,727 12,623 
Total assets$158,030 $164,810 
Geographic Information
Revenue by country is based on the location where services are provided and products are sold. For the three and six months ended June 30, 2023 no individual countries other than the U.S. accounted for more than 10% of revenue. For the three and six months ended June 30, 2022 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):
 Three months ended June 30,Six months ended June 30,
 2023202220232022
U.S. (1)$48,725 $25,955 $94,851 $36,289 
UAE1,509 3,139 2,912 4,450 
Other countries360 279 839 1,513 
Total revenue$50,594 $29,373 $98,602 $42,252 
(1) Includes revenue from related party
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):
Three months ended June 30,Revenue% of Total Revenue
2023
Customer A (Related Party)$32,774 64.8 %
2022
Customer A (Related Party)$16,549 52.2 %
Customer B5,611 19.1 %

Six months ended June 30,Revenue% of Total Revenue
2023
Customer A (Related Party)$69,129 70.1 %
2022
Customer A (Related Party)$17,657 38.9 %
Customer B8,218 19.5 %
 The concentration with ProFrac Services, LLC and in the oil and gas industry increases credit, commodity and business risk.

Major Suppliers
Expenditure with major suppliers, as a percentage of consolidated supplier expenditure, is as follows (in thousands):
Expenditure% of Total Expenditure
Three months ended June 30,
2023
Supplier A$13,155 32.6 %
Supplier B8,049 20.0 %
Supplier C4,489 11.1 %
2022
Supplier A7,576 31.9 %
Supplier B4,036 17.0 %
Supplier C2,679 11.3 %

Expenditure% of Total Expenditure
Six months ended June 30,
2023
Supplier A$30,109 36.4 %
Supplier B15,194 18.4 %
Supplier C8,993 10.9 %
2022
Supplier A7,624 24.2 %
Supplier B6,154 19.5%