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Business Segment, Geographic and Major Customer Information
 3 Months Ended
Mar. 31, 2024
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 March 31,
Chemistry Technologies
Data Analytics
Corporate and OtherTotal
2024
Revenue from external customers
Products$11,159 $933 $— $12,092 
Services526 562 — 1,088 
Total revenue from external customers11,685 1,495 — 13,180 
Revenue from related party
Products27,014 — — 27,014 
Services— 180 — 180 
Total revenue from related parties27,014 180 — 27,194 
Gross profit8,401 420 — 8,821 
Income (loss) from operations6,106 (424)(3,574)2,108 
Depreciation159 35 26 220 
Interest on ABL— — 181 181 
Other interest— — 97 97 
Income tax— — 242 242 
Additions to long-lived assets147 — 5 152 
2023
Revenue from external customers
Products$8,561 $1,941 $— $10,502 
Services664 486 — 1,150 
Total revenue from external customers9,225 2,427 — 11,652 
Revenue from related party
Products36,265 — — 36,265 
Services— 90 90 
Total revenue from related parties36,265 90 — 36,355 
Gross profit 434 1,446 — 1,880 
Change in fair value of Contract Consideration Convertible Notes Payable(26,095)— — (26,095)
Income (loss) from operations23,379 457 (5,325)18,511 
Paid-in-kind interest on Contract Consideration Convertible Notes Payable1,416 — — 1,416 
Paid-in-kind interest on convertible notes payable— — 155 155 
Depreciation157 18 1 176 
Income tax— — 9 9 
Additions to long-lived assets30 95 32 157 
Assets of the Company by reportable segments are as follows (in thousands):
March 31, 2024December 31, 2023
Chemistry Technologies$139,551 $138,559 
Data Analytics6,253 6,604 
Corporate and Other10,046 12,350 
Total assets$155,850 $157,513 
Geographic Information
Revenue by country is based on the location where services are provided and products are sold. For the three months ended March 31, 2024 and 2023 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 March 31,
 20242023
U.S. (1)$39,259 $46,126 
UAE741 1,403 
Other countries374 478 
Total revenue$40,374 $48,007 
(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):
Revenue% of Total Revenue
Three months ended March 31, 2024
Customer A (Related Party)$27,194 67.4 %
Three months ended March 31, 2023
Customer A (Related Party)$36,355 75.7 %
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 March 31,Expenditure% of Total Expenditure
2024
Supplier A$7,747 29.7 %
Supplier B5,020 19.2 %
2023
Supplier A$16,954 40.1 %
Supplier B7,145 16.9 %
Supplier C4,504 10.6 %