Stabilis Energy, Inc. engages in the provision of small-scale liquefied natural gas production, distribution, and fueling services to multiple end markets. Its services and applications include pipeline outage support, gas utility peak shaving, commercial & industrial, exploration & production, mining & extraction support, remote & temporary power generation, marine & bunkering, transportation, and export. The company was founded in February 2013 and is headquartered in Houston, TX.
We cannot predict whether our plans to enhance our financial flexibility and liquidity to fund our operations will be successful.
Customers in the oil and gas industry account for a significant portion of our sales. Reduced expenditures by customers in this industry are likely to reduce demand for our products and services.
Our products include complex systems for energy and industrial markets which are subject to operational and liability risks.
The industries in which we operate are highly competitive, which may result in a loss of market share or decrease in net sales or profit margin.
We have a risk of loss to a disputed working capital adjustment in the sale of M&I
We rely on a few key employees whose absence or loss could disrupt our operations or be adverse to our business.
Our results of operations and financial condition may be adversely impacted by economic uncertainty and global recession.
Natural disasters, terrorism, acts of war, international conflicts or other disruptions could harm our business and operations.
We generate most of our net sales from international operations and are subject to the risks of doing business outside of the United States.
The marketplace may not accept and utilize our newly developed products and services, the effect of which would prevent us from successfully commercializing our proposed products or services and may adversely affect our financial condition and results of operations.
Risk related to our Chinese Joint Venture.
Risk from Restricted U.S. Government Access to Audit Documents in China.
Our international operations are generally subject to a number of risks. These include:
Our corporate structure currently consists of American Electric Technologies, Inc., which owns 100% of M&I Electric Industries, Inc., its wholly-owned subsidiary, South Coast Electric Systems, LLC and M&I Electric Brazil Sistemas e Servicios em Energia LTDA (“M&I Brazil”). As a result of the sale of South Coast Electric Systems operations in 2016 and M&I Electric (“M&I”) operations in 2018, results from continuing operations include the operations of our Brazilian subsidiary, our interest in a Chinese joint venture and our corporate operations in Houston, Texas. Our foreign joint venture is accounted for by the equity method.
Our financial results are primarily from sales to the Oil and Gas Industry. This information is supplemental and provided to allow investors to follow our future trends in marketing to the Oil and Gas Industry.
Summary financial information of BOMAY in U.S. dollars was as follows at December 31, 2018 and 2017: