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Business Segment, Geographic and Major Customer Information
 9 Months Ended
Sep. 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 September 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2023
Revenue from external customers
Products$15,764 $1,025 $— $16,789 
Services562 455 — 1,017 
Total revenue from external customers16,326 1,480 — 17,806 
Revenue from related party
Products29,076 — — 29,076 
Services176 210 — 386 
Total revenue from related parties29,252 210 — 29,462 
Gross profit8,240 807 — 9,047 
Income (loss) from operations5,519 (37)(3,863)1,619 
Depreciation149 26 6 181 
Additions to long-lived assets— 135 — 135 
2022
Revenue from external customers
Products$12,855 $1,302 $— $14,157 
Services656 393 — 1,049 
Total revenue from external customers13,511 1,695 — 15,206 
Revenue from related party
Products30,417 — — 30,417 
Total revenue from related parties30,417 — — 30,417 
Gross profit (loss)(2,406)564 — (1,842)
Change in fair value of Contract Consideration Convertible Notes Payable4,250 — — 4,250 
Loss from operations(10,603)(745)(4,931)(16,279)
Paid-in-kind interest on convertible notes payable— — 483 483 
Depreciation162 14 1 177 
Additions to long-lived assets25 33 112 170 
As of and for the nine months ended September 30,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2023
Revenue from external customers
Products$39,150 $4,586 $— $43,736 
Services1,870 1,672 — 3,542 
Total revenue from external customers41,020 6,258 — 47,278 
Revenue from related party
Products97,956 2 — 97,958 
Services179 455 — 634 
Total revenue from related parties98,135 457 — 98,592 
Gross profit11,279 3,554 — 14,833 
Change in fair value of Contract Consideration Convertible Notes Payable(29,969)— — (29,969)
Income (loss) from operations32,694 550 (12,440)20,804 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable2,129 — — 2,129 
Paid-in-kind interest on convertible notes payable— — 155 155 
Depreciation462 61 7 530 
Additions to long-lived assets30 230 32 292 
2022
Revenue from external customers
Products$33,501 $2,393 $— $35,894 
Services1,432 1,086 — 2,518 
Total revenue from external customers34,933 3,479 — 38,412 
Revenue from related party
Products49,462 — — 49,462 
Total revenue from related parties49,462 — — 49,462 
Gross profit (loss)(4,637)11 — (4,626)
Change in fair value of Contract Consideration Convertible Notes Payable(9,016)— — (9,016)
Loss from operations(1,716)(2,751)(14,057)(18,524)
Paid-in-kind interest on Contract Consideration Convertible Notes Payable2,586 — — 2,586 
Paid-in-kind interest on convertible notes payable— — 1,276 1,276 
Depreciation507 45 2 554 
Additions to long-lived assets30 33 112 175 
Assets of the Company by reportable segments are as follows (in thousands):
September 30, 2023December 31, 2022
Chemistry Technologies$134,489 $146,542 
Data Analytics7,124 5,645 
Corporate and Other10,903 12,623 
Total assets$152,516 $164,810 
Geographic Information
Revenue by country is based on the location where services are provided and products are sold. For the three and nine months ended September 30, 2023 and 2022 no individual countries other than the U.S. accounted for more than 10% of revenue. Revenue by geographic location is as follows (in thousands):
 Three months ended September 30,Nine months ended September 30,
 2023202220232022
U.S. (1)$46,401 $42,670 $141,251 $78,959 
Other countries867 2,953 4,619 8,915 
Total revenue$47,268 $45,623 $145,870 $87,874 
(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 September 30,Revenue% of Total Revenue
2023
Customer A (Related Party)$29,462 62.3 %
2022
Customer A (Related Party)$30,417 66.7 %
Nine months ended September 30,Revenue% of Total Revenue
2023
Customer A (Related Party)$98,592 67.6 %
2022
Customer A (Related Party)$48,074 54.7 %
Customer B10,905 12.4 %
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):
Three months ended September 30,Expenditure% of Total Expenditure
2023
Supplier A$6,094 25.3 %
Supplier B5,581 23.2 %
Supplier C4,197 17.4 %
2022
Supplier A$10,882 32.7 %
Supplier B6,147 18.5 %
Supplier C5,552 16.7 %
Nine months ended September 30,Expenditure% of Total Expenditure
2023
Supplier A$36,318 32.5 %
Supplier B21,752 19.5 %
Supplier C13,151 11.8 %
2022
Supplier A$18,505 28.5 %
Supplier B11,706 18.0 %
Supplier C8,826 13.6 %