UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | ||||||||||||
FORM 10-K | ||||||||||||
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the fiscal year ended December 31, | ||||||||||||
or | ||||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||||
For the transition period from to | ||||||||||||
Commission File Number 1-13270 |
FLOTEK INDUSTRIES, INC. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 90-0023731 | |||||||||||||||
(State incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||
5775 N. Sam Houston Parkway W., Suite 400, Houston, TX | ||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.0001 par value | FTK | New York Stock Exchange |
Forward-Looking Statements | |||||||||
PART I | |||||||||
1. | Business | ||||||||
Item 1A. | Risk Factors | ||||||||
Item 1B. | |||||||||
1C. | Cybersecurity | ||||||||
2. | Properties | ||||||||
Item 3. | Legal Proceedings | ||||||||
Item 4. | |||||||||
[Reserved] | |||||||||
Other Information | |||||||||
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | ||||||||
Item 10. | |||||||||
Executive Compensation | |||||||||
Item 16. | Form 10-K Summary | ||||||||
SIGNATURES |
Segment | Owned/Leased | Location | ||||||
Chemistry Technologies | Owned | Marlow, Oklahoma | ||||||
Technologies | ||||||||
Dubai, United Arab Emirates | ||||||||
Chemistry Technologies | Leased | Houston, Texas | ||||||
Data Analytics | Leased | Austin, Texas | ||||||
Corporate Headquarters | Leased | Houston, Texas |
Fiscal quarter ended: | 2017 | 2016 | ||||||
High | Low | High | Low | |||||
March 31, | $14.12 | $9.50 | $11.11 | $5.52 | ||||
June 30, | $12.85 | $7.95 | $13.82 | $6.73 | ||||
September 30, | $9.34 | $4.65 | $16.60 | $12.88 | ||||
December 31, | $5.31 | $4.28 | $14.84 | $8.96 |
December 31, | ||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||||
Flotek Industries, Inc. | $ | 100 | $ | 165 | $ | 154 | $ | 94 | $ | 77 | $ | 38 | ||||||||||||
Russell 2000 Index | $ | 100 | $ | 137 | $ | 142 | $ | 134 | $ | 160 | $ | 181 | ||||||||||||
Philadelphia Oil Service Index (OSX) | $ | 100 | $ | 128 | $ | 96 | $ | 72 | $ | 83 | $ | 68 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights(1) | Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights(2) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a)) | |||||||
(a) | (b) | (c) | ||||||||
Equity compensation plans approved by security holders | 971,589 | $ | — | 303,248 | ||||||
Equity compensation plans not approved by security holders | — | $ | — | — | ||||||
Total | 971,589 | $ | — | 303,248 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | |||||||||||||||||||||
October 1, 2023 to October 31, 2023 | — | $ | — | ||||||||||||||||||||
November 1, 2023 to November 30, 2023 | 124 | $ | 4.08 | ||||||||||||||||||||
December 1, 2023 to December 31, 2023 | 5,627 | $ | 3.83 | ||||||||||||||||||||
Total | 5,751 |
Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (2) | |||||||||||
October 1 to October 31, 2017 | 5,003 | $ | 5.28 | — | $ | 50,733,939 | ||||||||
November 1 to November 30, 2017 | — | $ | — | — | $ | 50,733,939 | ||||||||
December 1 to December 31, 2017 | 268,212 | $ | 4.59 | 225,000 | $ | 49,704,946 | ||||||||
Total | 273,215 | $ | 4.60 | 225,000 |
As of and for the year ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Operating Data | |||||||||||||||||||
Revenue (1) | $ | 317,098 | $ | 262,832 | $ | 269,966 | $ | 319,852 | $ | 243,860 | |||||||||
(Loss) income from operations (1) | (2,855 | ) | (7,304 | ) | 12,278 | 58,619 | 37,360 | ||||||||||||
(Loss) income from continuing operations (1) | $ | (13,053 | ) | $ | 1,907 | $ | 7,158 | $ | 39,622 | $ | 22,376 | ||||||||
(Loss) income from discontinued operations, net of tax | (14,342 | ) | (51,037 | ) | (20,620 | ) | 13,981 | 13,802 | |||||||||||
Net (loss) income | $ | (27,395 | ) | $ | (49,130 | ) | $ | (13,462 | ) | $ | 53,603 | $ | 36,178 | ||||||
(1) Amounts exclude impact of discontinued operations. | |||||||||||||||||||
Per Share Data | |||||||||||||||||||
Basic earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | (0.23 | ) | $ | 0.03 | $ | 0.13 | $ | 0.73 | $ | 0.44 | ||||||||
Discontinued operations, net of tax | (0.25 | ) | (0.91 | ) | (0.38 | ) | 0.26 | 0.27 | |||||||||||
Basic earnings (loss) per share | $ | (0.48 | ) | $ | (0.88 | ) | $ | (0.25 | ) | $ | 0.99 | $ | 0.71 | ||||||
Diluted earnings (loss) per share: | |||||||||||||||||||
Continuing operations | $ | (0.23 | ) | $ | 0.03 | $ | 0.13 | $ | 0.71 | $ | 0.42 | ||||||||
Discontinued operations, net of tax | (0.25 | ) | (0.91 | ) | (0.37 | ) | 0.25 | 0.26 | |||||||||||
Diluted earnings (loss) per share | $ | (0.48 | ) | $ | (0.88 | ) | $ | (0.24 | ) | $ | 0.96 | $ | 0.68 | ||||||
Financial Position Data | |||||||||||||||||||
Total assets | $ | 329,888 | $ | 383,215 | $ | 403,090 | $ | 423,276 | $ | 375,581 | |||||||||
Convertible senior notes, long-term debt, and capital lease obligations, less discount and current portion | — | 7,833 | 18,255 | 25,398 | 35,690 | ||||||||||||||
Stockholders’ equity | 264,900 | 287,343 | 293,651 | 306,003 | 249,752 |
TABLE A | 2017 | 2016 | 2015 | 2017 vs. 2016 % Change | 2016 vs. 2015 % Change | |||||||||
Average North American Active Drilling Rigs | ||||||||||||||
United States | 876 | 509 | 978 | 72.1 | % | (48.0 | )% | |||||||
Canada | 206 | 130 | 192 | 58.5 | % | (32.3 | )% | |||||||
Total | 1,082 | 639 | 1,170 | 69.3 | % | (45.4 | )% | |||||||
Average U.S. Active Drilling Rigs by Type | ||||||||||||||
Vertical | 70 | 60 | 139 | 16.7 | % | (56.8 | )% | |||||||
Horizontal | 736 | 400 | 744 | 84.0 | % | (46.2 | )% | |||||||
Directional | 70 | 49 | 95 | 42.9 | % | (48.4 | )% | |||||||
Total | 876 | 509 | 978 | 72.1 | % | (48.0 | )% | |||||||
Average North American Drilling Rigs by Product | ||||||||||||||
Oil | 812 | 471 | 835 | 72.4 | % | (43.6 | )% | |||||||
Natural Gas | 270 | 168 | 335 | 60.7 | % | (49.9 | )% | |||||||
Total | 1,082 | 639 | 1,170 | 69.3 | % | (45.4 | )% |
Years ended December 31, | ||||||||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||
Revenue from external customers | $ | 66,518 | $ | 54,344 | ||||||||||||||||||||||||||||
Revenue from related party | 121,540 | 81,748 | ||||||||||||||||||||||||||||||
Total revenues | 188,058 | 136,092 | ||||||||||||||||||||||||||||||
Cost of sales | 163,795 | 142,792 | ||||||||||||||||||||||||||||||
Cost of sales % | 87.1 | % | 104.9 | % | ||||||||||||||||||||||||||||
Gross profit (loss) | 24,263 | (6,700) | ||||||||||||||||||||||||||||||
Gross profit (loss) % | 12.9 | % | (4.9) | % | ||||||||||||||||||||||||||||
Selling, general and administrative | 27,873 | 27,124 | ||||||||||||||||||||||||||||||
Selling, general and administrative % | 14.8 | % | 19.9 | % | ||||||||||||||||||||||||||||
Depreciation | 734 | 734 | ||||||||||||||||||||||||||||||
Research and development | 2,486 | 4,438 | ||||||||||||||||||||||||||||||
Severance costs | (46) | — | ||||||||||||||||||||||||||||||
Gain on disposal of property and equipment | (38) | (2,916) | ||||||||||||||||||||||||||||||
Gain on lease termination | — | (584) | ||||||||||||||||||||||||||||||
Gain in fair value of contract consideration convertible notes payable | (29,969) | (75) | ||||||||||||||||||||||||||||||
Impairment of goodwill | — | — | ||||||||||||||||||||||||||||||
Income (loss) from operations | 23,223 | (35,421) | ||||||||||||||||||||||||||||||
Operating margin % | 12.3 | % | (26.0) | % | ||||||||||||||||||||||||||||
Paycheck protection plan loan forgiveness | 4,522 | — | ||||||||||||||||||||||||||||||
Interest expense and other income, net | (2,883) | (6,906) | ||||||||||||||||||||||||||||||
Income (loss) before income taxes | 24,862 | (42,327) | ||||||||||||||||||||||||||||||
Income tax (expense) benefit | (149) | 22 | ||||||||||||||||||||||||||||||
Net income (loss) | $ | 24,713 | $ | (42,305) | ||||||||||||||||||||||||||||
Net income (loss) % | 13.1 | % | (31.1) | % | ||||||||||||||||||||||||||||
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue | $ | 317,098 | $ | 262,832 | $ | 269,966 | |||||
Cost of revenue (excluding depreciation and amortization) | 215,129 | 170,255 | 172,033 | ||||||||
Cost of revenue (excluding depreciation and amortization) % | 67.8 | % | 64.8 | % | 63.7 | % | |||||
Corporate general and administrative costs | 41,492 | 43,745 | 38,623 | ||||||||
Corporate general and administrative costs % | 13.1 | % | 16.6 | % | 14.3 | % | |||||
Segment selling and administrative costs | 37,236 | 36,405 | 31,653 | ||||||||
Segment selling and administrative costs % | 11.7 | % | 13.9 | % | 11.7 | % | |||||
Depreciation and amortization | 12,159 | 10,429 | 8,735 | ||||||||
Research and development costs | 13,645 | 9,320 | 6,657 | ||||||||
Loss (gain) on disposal of long-lived assets | 292 | (18 | ) | (13 | ) | ||||||
(Loss) income from operations | (2,855 | ) | (7,304 | ) | 12,278 | ||||||
Operating margin % | (0.9 | )% | (2.8 | )% | 4.5 | % | |||||
Gain on legal settlement | — | 12,730 | — | ||||||||
Interest and other expense, net | (1,356 | ) | (2,282 | ) | (1,644 | ) | |||||
(Loss) income before income taxes | (4,211 | ) | 3,144 | 10,634 | |||||||
Income tax expense | (8,842 | ) | (1,237 | ) | (3,476 | ) | |||||
(Loss) income from continuing operations | (13,053 | ) | 1,907 | 7,158 | |||||||
Loss from discontinued operations, net of tax | (14,342 | ) | (51,037 | ) | (20,620 | ) | |||||
Net loss | $ | (27,395 | ) | $ | (49,130 | ) | $ | (13,462 | ) |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue from external customers | $ | 59,016 | $ | 48,960 | |||||||||||||||||||
Revenue from related party | 120,903 | 81,618 | |||||||||||||||||||||
Income (loss) from operations | 39,043 | (14,729) | |||||||||||||||||||||
Years ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue from external customers | $ | 7,502 | $ | 5,384 | ||||||||||
Revenue from related party | 637 | 130 | ||||||||||||
Loss from operations | (53) | (2,877) | ||||||||||||
Energy Chemistry Technologies (“ECT”) | |||||||||||
(dollars in thousands) | Year ended December 31, | ||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue | $ | 243,106 | $ | 188,233 | $ | 213,592 | |||||
Income from operations | $ | 33,611 | $ | 29,014 | $ | 43,902 | |||||
Operating margin % | 13.8 | % | 15.4 | % | 20.6 | % |
Consumer and Industrial Chemistry Technologies (“CICT”) | ||||||||||||
(dollars in thousands) | Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenue | $ | 73,992 | $ | 74,599 | $ | 56,374 | ||||||
Income from operations | $ | 7,465 | $ | 9,664 | $ | 8,742 | ||||||
Operating margin % | 10.1 | % | 13.0 | % | 15.5 | % |
Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Loss from operations | $ | (15,767) | $ | (17,815) | |||||||||||||||||||||||||||||||||||||
Drilling Technologies | ||||||||||||
(dollars in thousands) | Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenue | $ | 11,534 | $ | 27,627 | $ | 52,112 | ||||||
Loss from operations | $ | (2,646 | ) | $ | (44,522 | ) | $ | (27,340 | ) | |||
Loss from operations - excluding impairment | $ | (2,646 | ) | $ | (8,000 | ) | $ | (7,772 | ) | |||
Operating margin % - excluding impairment | (22.9 | )% | (29.0 | )% | (14.9 | )% |
Production Technologies | ||||||||||||
(dollars in thousands) | Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenue | $ | 4,002 | $ | 8,292 | $ | 12,281 | ||||||
Loss from operations | $ | (1,357 | ) | $ | (8,814 | ) | $ | (4,111 | ) | |||
Loss from operations - excluding impairment | $ | (1,357 | ) | $ | (4,901 | ) | $ | (3,307 | ) | |||
Operating margin % - excluding impairment | (33.9 | )% | (59.1 | )% | (26.9 | )% |
Years ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Net cash used in operating activities | $ | (11,297) | $ | (44,632) | |||||||
Net cash (used in) provided by investing activities | (1,014) | 5,331 | |||||||||
Net cash provided by financing activities | 5,928 | 38,267 | |||||||||
Effect of changes in exchange rates on cash and cash equivalents | (54) | 100 | |||||||||
Net change in cash, cash equivalents and restricted cash | $ | (6,437) | $ | (934) |
December 31, 2017 | December 31, 2016 | ||||||
Cash and cash equivalents | $ | 4,584 | $ | 4,823 | |||
Current portion of long-term debt | (27,950 | ) | (40,566 | ) | |||
Long-term debt, less current portion | — | (7,833 | ) | ||||
Net debt | $ | (23,366 | ) | $ | (43,576 | ) |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Net cash provided by operating activities | $ | 17,131 | $ | 2,054 | $ | 25,472 | |||||
Net cash provided by (used in) investing activities | 9,740 | (22,281 | ) | (17,005 | ) | ||||||
Net cash (used in) provided by financing activities | (27,285 | ) | 22,851 | (7,349 | ) | ||||||
Net cash flows provided by (used in) discontinued operations | 24 | (6 | ) | — | |||||||
Effect of changes in exchange rates on cash and cash equivalents | 151 | (3 | ) | (176 | ) | ||||||
Net (decrease) increase in cash and cash equivalents | $ | (239 | ) | $ | 2,615 | $ | 942 |
Payments Due by Period | |||||||||||||||||||
Total | Less than 1 year | 1 - 3 years | 3 -5 years | More than 5 years | |||||||||||||||
Borrowings under revolving credit facility (1) | $ | 27,950 | $ | 27,950 | $ | — | $ | — | $ | — | |||||||||
Operating lease obligations | 21,806 | 2,734 | 4,603 | 3,961 | 10,508 | ||||||||||||||
Total | $ | 49,756 | $ | 30,684 | $ | 4,603 | $ | 3,961 | $ | 10,508 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 5,851 | $ | 12,290 | |||||||
Restricted cash | 102 | 100 | |||||||||
Accounts receivable, net of allowance for credit losses of $745 and $623 at December 31, 2023 and December 31, 2022, respectively | 13,687 | 19,136 | |||||||||
Accounts receivable, related party, net of allowance for credit losses of $0 at December 31, 2023 and 2022, respectively | 34,569 | 22,683 | |||||||||
Inventories, net | 12,838 | 15,720 | |||||||||
Other current assets | 3,564 | 3,032 | |||||||||
Current contract assets | 5,836 | 7,113 | |||||||||
Total current assets | 76,447 | 80,074 | |||||||||
Long-term contract assets | 68,820 | 72,576 | |||||||||
Property and equipment, net | 5,129 | 4,826 | |||||||||
Operating lease right-of-use assets | 5,030 | 5,900 | |||||||||
Deferred tax assets, net | 300 | 404 | |||||||||
Other long-term assets | 1,787 | 1,030 | |||||||||
TOTAL ASSETS | $ | 157,513 | $ | 164,810 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 31,705 | $ | 33,375 | |||||||
Accrued liabilities | 5,890 | 8,984 | |||||||||
Income taxes payable | 45 | 97 | |||||||||
Interest payable | — | 130 | |||||||||
Current portion of operating lease liabilities | 2,449 | 3,328 | |||||||||
Current portion of finance lease liabilities | 22 | 36 | |||||||||
Asset-based loan | 7,492 | — | |||||||||
Current portion of long-term debt | 179 | 2,052 | |||||||||
Convertible notes payable | — | 19,799 | |||||||||
Contract consideration convertible notes payable | — | 83,570 | |||||||||
Total current liabilities | 47,782 | 151,371 | |||||||||
Deferred revenue, long-term | 35 | 44 | |||||||||
Long-term operating lease liabilities | 7,676 | 8,044 | |||||||||
Long-term finance lease liabilities | — | 19 | |||||||||
Long-term debt | 60 | 2,736 | |||||||||
TOTAL LIABILITIES | 55,553 | 162,214 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | — | — | |||||||||
Common stock, $0.0001 par value, 240,000,000 shares authorized; 30,772,837 shares issued and 29,664,130 shares outstanding at December 31, 2023; 13,985,986 shares issued and 12,964,732 shares outstanding at December 31, 2022 (As adjusted, see Note 13) | 3 | 1 | |||||||||
Additional paid-in capital (As adjusted, see Note 13) | 463,140 | 388,184 | |||||||||
Accumulated other comprehensive income | 127 | 181 | |||||||||
Accumulated deficit | (326,806) | (351,519) | |||||||||
Treasury stock, at cost; 1,108,707 and 1,021,255 shares at December 31, 2023 and December 31, 2022, respectively (As adjusted, see Note 13) | (34,504) | (34,251) | |||||||||
Total stockholders’ equity | 101,960 | 2,596 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 157,513 | $ | 164,810 |
December 31, | |||||||
2017 | 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,584 | $ | 4,823 | |||
Accounts receivable, net of allowance for doubtful accounts of $733 and $664 at December 31, 2017 and 2016, respectively | 46,018 | 47,152 | |||||
Inventories | 75,759 | 58,283 | |||||
Income taxes receivable | 2,826 | 12,752 | |||||
Assets held for sale | — | 43,900 | |||||
Other current assets | 9,264 | 21,708 | |||||
Total current assets | 138,451 | 188,618 | |||||
Property and equipment, net | 73,833 | 74,691 | |||||
Goodwill | 56,660 | 56,660 | |||||
Deferred tax assets, net | 12,713 | 12,894 | |||||
Other intangible assets, net | 48,231 | 50,352 | |||||
TOTAL ASSETS | $ | 329,888 | $ | 383,215 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 22,048 | $ | 29,960 | |||
Accrued liabilities | 14,589 | 12,170 | |||||
Interest payable | 43 | 24 | |||||
Liabilities held for sale | — | 4,961 | |||||
Current portion of long-term debt | 27,950 | 40,566 | |||||
Total current liabilities | 64,630 | 87,681 | |||||
Long-term debt, less current portion | — | 7,833 | |||||
Total liabilities | 64,630 | 95,514 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Cumulative convertible preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | — | — | |||||
Common stock, $0.0001 par value, 80,000,000 shares authorized; 60,622,986 shares issued and 56,755,293 shares outstanding at December 31, 2017; 59,684,669 shares issued and 56,972,580 shares outstanding at December 31, 2016 | 6 | 6 | |||||
Additional paid-in capital | 336,067 | 318,392 | |||||
Accumulated other comprehensive income (loss) | (884 | ) | (956 | ) | |||
Retained earnings (accumulated deficit) | (37,225 | ) | (9,830 | ) | |||
Treasury stock, at cost; 3,621,435 and 2,028,847 shares at December 31, 2017 and 2016, respectively | (33,064 | ) | (20,269 | ) | |||
Flotek Industries, Inc. stockholders’ equity | 264,900 | 287,343 | |||||
Noncontrolling interests | 358 | 358 | |||||
Total equity | 265,258 | 287,701 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 329,888 | $ | 383,215 |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Revenue from external customers | $ | 66,518 | $ | 54,344 | |||||||||||||||||||
Revenue from related party | 121,540 | 81,748 | |||||||||||||||||||||
Total revenues | 188,058 | 136,092 | |||||||||||||||||||||
Cost of sales | 163,795 | 142,792 | |||||||||||||||||||||
Gross profit (loss) | 24,263 | (6,700) | |||||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Selling, general, and administrative | 27,873 | 27,124 | |||||||||||||||||||||
Depreciation | 734 | 734 | |||||||||||||||||||||
Research and development | 2,486 | 4,438 | |||||||||||||||||||||
Severance costs | (46) | — | |||||||||||||||||||||
Gain on disposal of property and equipment | (38) | (2,916) | |||||||||||||||||||||
Gain on lease termination | — | (584) | |||||||||||||||||||||
Gain in fair value of Contract Consideration Convertible Notes Payable | (29,969) | (75) | |||||||||||||||||||||
Total operating costs and expenses | 1,040 | 28,721 | |||||||||||||||||||||
Income (loss) from operations | 23,223 | (35,421) | |||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Paycheck protection plan loan forgiveness | 4,522 | — | |||||||||||||||||||||
Interest expense | (2,857) | (7,051) | |||||||||||||||||||||
Other income, net | (26) | 145 | |||||||||||||||||||||
Total other income (expense) | 1,639 | (6,906) | |||||||||||||||||||||
Income (loss) before income taxes | 24,862 | (42,327) | |||||||||||||||||||||
Income tax (expense) benefit | (149) | 22 | |||||||||||||||||||||
Net income (loss) | $ | 24,713 | $ | (42,305) | |||||||||||||||||||
Income (loss) per common share (As adjusted, see Notes 13 and 15): | |||||||||||||||||||||||
Basic | $ | 1.00 | $ | (3.41) | |||||||||||||||||||
Diluted | $ | (0.10) | $ | (3.41) | |||||||||||||||||||
Weighted average common shares (As adjusted see Notes 13 and 15): | |||||||||||||||||||||||
Weighted average common shares used in computing basic income (loss) per common share | 24,830 | 12,404 | |||||||||||||||||||||
Weighted average common shares used in computing diluted income (loss) per common share | 28,377 | 12,404 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue | $ | 317,098 | $ | 262,832 | $ | 269,966 | |||||
Costs and expenses: | |||||||||||
Cost of revenue (excluding depreciation and amortization) | 215,129 | 170,255 | 172,033 | ||||||||
Corporate general and administrative | 41,492 | 43,745 | 38,623 | ||||||||
Segment selling and administrative | 37,236 | 36,405 | 31,653 | ||||||||
Depreciation and amortization | 12,159 | 10,429 | 8,735 | ||||||||
Research and development | 13,645 | 9,320 | 6,657 | ||||||||
Loss (gain) on disposal of long-lived assets | 292 | (18 | ) | (13 | ) | ||||||
Total costs and expenses | 319,953 | 270,136 | 257,688 | ||||||||
(Loss) income from operations | (2,855 | ) | (7,304 | ) | 12,278 | ||||||
Other (expense) income: | |||||||||||
Interest expense | (2,168 | ) | (1,979 | ) | (1,521 | ) | |||||
Gain on legal settlement | — | 12,730 | — | ||||||||
Other (expense) income, net | 812 | (303 | ) | (123 | ) | ||||||
Total other (expense) income | (1,356 | ) | 10,448 | (1,644 | ) | ||||||
(Loss) income before income taxes | (4,211 | ) | 3,144 | 10,634 | |||||||
Income tax expense | (8,842 | ) | (1,237 | ) | (3,476 | ) | |||||
(Loss) income from continuing operations | (13,053 | ) | 1,907 | 7,158 | |||||||
Loss from discontinued operations, net of tax | (14,342 | ) | (51,037 | ) | (20,620 | ) | |||||
Net loss | $ | (27,395 | ) | $ | (49,130 | ) | $ | (13,462 | ) | ||
Basic earnings (loss) per common share: | |||||||||||
Continuing operations | $ | (0.23 | ) | $ | 0.03 | $ | 0.13 | ||||
Discontinued operations, net of tax | (0.25 | ) | (0.91 | ) | (0.38 | ) | |||||
Basic earnings (loss) per common share | $ | (0.48 | ) | $ | (0.88 | ) | $ | (0.25 | ) | ||
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations | $ | (0.23 | ) | $ | 0.03 | $ | 0.13 | ||||
Discontinued operations, net of tax | (0.25 | ) | (0.91 | ) | (0.37 | ) | |||||
Diluted earnings (loss) per common share | $ | (0.48 | ) | $ | (0.88 | ) | $ | (0.24 | ) | ||
Weighted average common shares: | |||||||||||
Weighted average common shares used in computing basic earnings (loss) per common share | 57,580 | 56,087 | 54,459 | ||||||||
Weighted average common shares used in computing diluted earnings (loss) per common share | 57,580 | 56,350 | 54,992 |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Net income (loss) | $ | 24,713 | $ | (42,305) | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Foreign currency translation adjustment | (54) | 100 | |||||||||||||||||||||
Comprehensive income (loss) | $ | 24,659 | $ | (42,205) | |||||||||||||||||||
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(Loss) income from continuing operations | $ | (13,053 | ) | $ | 1,907 | $ | 7,158 | ||||
Loss from discontinued operations, net of tax | (14,342 | ) | (51,037 | ) | (20,620 | ) | |||||
Net loss | (27,395 | ) | (49,130 | ) | (13,462 | ) | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | 72 | 281 | (735 | ) | |||||||
Comprehensive loss | $ | (27,323 | ) | $ | (48,849 | ) | $ | (14,197 | ) |
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||
Shares Issued | Par Value | Shares | Cost | ||||||||||||||||||||||||||||||
Balance, December 31, 2014 | 54,634 | $ | 5 | 449 | $ | (495 | ) | $ | 254,233 | $ | (502 | ) | $ | 52,762 | $ | 351 | $ | 306,354 | |||||||||||||||
Net loss | — | — | — | — | — | — | (13,462 | ) | — | (13,462 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (735 | ) | — | — | (735 | ) | ||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | (77 | ) | — | 879 | — | — | — | 879 | |||||||||||||||||||||||
Stock options exercised | 768 | 1 | — | — | 1,371 | — | — | — | 1,372 | ||||||||||||||||||||||||
Restricted stock granted | 758 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Restricted stock forfeited | — | — | 33 | — | — | — | — | — | — | ||||||||||||||||||||||||
Treasury stock purchased | — | — | 473 | (6,345 | ) | — | — | — | — | (6,345 | ) | ||||||||||||||||||||||
Stock surrendered for exercise of stock options | — | — | 107 | (1,332 | ) | — | — | — | — | (1,332 | ) | ||||||||||||||||||||||
Excess tax benefit related to share-based awards | — | — | — | — | 1,273 | — | — | — | 1,273 | ||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | 14,681 | — | — | — | 14,681 | ||||||||||||||||||||||||
Investment in Flotek Gulf, LLC and Flotek Gulf Research, LLC | — | — | — | — | — | — | — | 7 | 7 | ||||||||||||||||||||||||
Stock issued in IAL acquisition | 60 | — | — | — | 1,014 | — | — | — | 1,014 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | 800 | (9,697 | ) | — | — | — | — | (9,697 | ) | ||||||||||||||||||||||
Balance, December 31, 2015 | 56,220 | $ | 6 | 1,785 | $ | (17,869 | ) | $ | 273,451 | $ | (1,237 | ) | $ | 39,300 | $ | 358 | $ | 294,009 | |||||||||||||||
Net loss | — | — | — | — | — | — | (49,130 | ) | — | (49,130 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 281 | — | — | 281 | ||||||||||||||||||||||||
Sale of common stock, net of issuance cost | 2,450 | — | — | — | 30,090 | — | — | — | 30,090 | ||||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | (93 | ) | — | 833 | — | — | — | 833 | |||||||||||||||||||||||
Stock options exercised | 114 | — | — | — | 184 | — | — | — | 184 | ||||||||||||||||||||||||
Restricted stock granted | 653 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Restricted stock forfeited | — | — | 96 | — | — | — | — | — | — | ||||||||||||||||||||||||
Treasury stock purchased | — | — | 238 | (2,350 | ) | — | — | — | — | (2,350 | ) | ||||||||||||||||||||||
Stock surrendered for exercise of stock options | — | — | 3 | (50 | ) | — | — | — | — | (50 | ) | ||||||||||||||||||||||
Reduction in tax benefit related to share-based awards | — | — | — | — | (2,510 | ) | — | — | — | (2,510 | ) | ||||||||||||||||||||||
Stock compensation expense | — | — | — | — | 13,076 | — | — | — | 13,076 | ||||||||||||||||||||||||
Stock issued in IPI acquisition | 248 | — | — | — | 3,268 | — | — | — | 3,268 | ||||||||||||||||||||||||
Balance, December 31, 2016 | 59,685 | $ | 6 | 2,029 | $ | (20,269 | ) | $ | 318,392 | $ | (956 | ) | $ | (9,830 | ) | $ | 358 | $ | 287,701 | ||||||||||||||
Net loss | — | — | — | — | — | — | (27,395 | ) | — | (27,395 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 72 | — | — | 72 | ||||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | (113 | ) | — | 654 | — | — | — | 654 | |||||||||||||||||||||||
Common stock issued in payment of accrued liability | — | — | — | — | 188 | — | — | — | 188 | ||||||||||||||||||||||||
Stock options exercised | 663 | — | — | — | 5,884 | — | — | — | 5,884 | ||||||||||||||||||||||||
Restricted stock granted | 275 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Restricted stock forfeited | — | — | 122 | — | — | — | — | — | — | ||||||||||||||||||||||||
Treasury stock purchased | — | — | 200 | (1,729 | ) | — | — | — | — | (1,729 | ) | ||||||||||||||||||||||
Stock surrendered for exercise of stock options | — | — | 478 | (5,863 | ) | — | — | — | — | (5,863 | ) | ||||||||||||||||||||||
Stock compensation expense | — | — | — | — | 10,949 | — | — | — | 10,949 | ||||||||||||||||||||||||
Repurchase of common stock | — | — | 905 | (5,203 | ) | — | — | — | — | (5,203 | ) | ||||||||||||||||||||||
Balance, December 31, 2017 | 60,623 | $ | 6 | 3,621 | $ | (33,064 | ) | $ | 336,067 | $ | (884 | ) | $ | (37,225 | ) | $ | 358 | $ | 265,258 |
Years ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 24,713 | $ | (42,305) | |||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||
Change in fair value of contingent consideration | (527) | (25) | |||||||||
Change in fair value of contract consideration convertible notes payable | (29,969) | (75) | |||||||||
Amortization of convertible note issuance cost | 83 | 1,002 | |||||||||
Paid-in-kind interest expense | 2,284 | 5,956 | |||||||||
Amortization of contract assets | 5,033 | 3,371 | |||||||||
Depreciation | 734 | 734 | |||||||||
Amortization of asset-based loan origination costs | 121 | — | |||||||||
Provision for credit losses | 138 | 203 | |||||||||
Provision for excess and obsolete inventory | 959 | 1,734 | |||||||||
Gain on sale of property and equipment | (38) | (2,916) | |||||||||
Gain on lease termination | — | (584) | |||||||||
Non-cash lease expense | 3,014 | 226 | |||||||||
Stock compensation expense | (254) | 3,325 | |||||||||
Deferred income tax expense (benefit) | 104 | (125) | |||||||||
Paycheck protection plan loan forgiveness | (4,522) | — | |||||||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable | 5,311 | (7,342) | |||||||||
Accounts receivable, related party | (11,886) | (21,383) | |||||||||
Inventories | 1,938 | (7,917) | |||||||||
Income taxes receivable | — | 14 | |||||||||
Other assets | (836) | (285) | |||||||||
Contract assets | — | (3,600) | |||||||||
Accounts payable | (1,670) | 25,760 | |||||||||
Accrued liabilities | (2,575) | (34) | |||||||||
Operating lease liabilities | (3,391) | (507) | |||||||||
Income taxes payable | (53) | 93 | |||||||||
Interest payable | (8) | 48 | |||||||||
Net cash used in operating activities | (11,297) | (44,632) | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (1,081) | (421) | |||||||||
Proceeds from sale of assets | 67 | 5,752 | |||||||||
Net cash (used in) provided by investing activities | (1,014) | 5,331 | |||||||||
Cash flows from financing activities: | |||||||||||
Payment for forfeited stock options | (617) | — | |||||||||
Payments on long-term debt | (149) | — | |||||||||
Proceeds from asset-based loan | 68,716 | — | |||||||||
Payments on asset-based loan | (61,224) | — | |||||||||
Payment of asset-based loan origination costs | (574) | — | |||||||||
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 | (268) | (224) | |||||||||
Proceeds from issuance of stock | 77 | 133 | |||||||||
Payments for finance leases | (33) | (38) | |||||||||
Net cash provided by financing activities | 5,928 | 38,267 | |||||||||
Effect of changes in exchange rates on cash and cash equivalents | (54) | 100 | |||||||||
Net change in cash, cash equivalents and restricted cash | (6,437) | (934) | |||||||||
Cash and cash equivalents at the beginning of period | 12,290 | 11,534 | |||||||||
Restricted cash at the beginning of period | 100 | 1,790 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | 12,390 | 13,324 | |||||||||
Cash and cash equivalents at end of period | 5,851 | 12,290 | |||||||||
Restricted cash at the end of period | 102 | 100 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 5,953 | $ | 12,390 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (27,395 | ) | $ | (49,130 | ) | $ | (13,462 | ) | ||
Loss from discontinued operations, net of tax | (14,342 | ) | (51,037 | ) | (20,620 | ) | |||||
(Loss) income from continuing operations | (13,053 | ) | 1,907 | 7,158 | |||||||
Adjustments to reconcile (loss) income from continuing operations to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 12,159 | 10,429 | 8,735 | ||||||||
Amortization of deferred financing costs | 472 | 424 | 346 | ||||||||
Provision for doubtful accounts | 113 | 558 | 367 | ||||||||
Loss (gain) on sale of assets | 292 | (18 | ) | (12 | ) | ||||||
Stock compensation expense | 11,172 | 12,053 | 13,083 | ||||||||
Deferred income tax provision (benefit) | 181 | (19,681 | ) | (7,929 | ) | ||||||
Reduction in (excess) tax benefit related to share-based awards | 1,989 | 2,510 | (1,273 | ) | |||||||
Changes in current assets and liabilities: | |||||||||||
Accounts receivable, net | 1,456 | (11,544 | ) | 13,676 | |||||||
Inventories | (17,291 | ) | (6,528 | ) | (9,905 | ) | |||||
Income taxes receivable | 8,008 | (8,189 | ) | (4,700 | ) | ||||||
Other current assets | 12,153 | (14,489 | ) | 167 | |||||||
Accounts payable | (8,719 | ) | 12,653 | (7,653 | ) | ||||||
Accrued liabilities | 8,180 | 23,946 | 9,552 | ||||||||
Income taxes payable | — | (1,890 | ) | 3,842 | |||||||
Interest payable | 19 | (87 | ) | 18 | |||||||
Net cash provided by operating activities | 17,131 | 2,054 | 25,472 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (8,960 | ) | (13,960 | ) | (16,391 | ) | |||||
Proceeds from sale of businesses | 18,490 | — | — | ||||||||
Proceeds from sale of assets | 689 | 115 | 13 | ||||||||
Payments for acquisitions, net of cash acquired | — | (7,863 | ) | — | |||||||
Purchase of patents and other intangible assets | (479 | ) | (573 | ) | (627 | ) | |||||
Net cash provided by (used in) investing activities | 9,740 | (22,281 | ) | (17,005 | ) | ||||||
Cash flows from financing activities: | |||||||||||
Repayments of indebtedness | (9,833 | ) | (15,564 | ) | (10,143 | ) | |||||
Borrowings on revolving credit facility | 383,160 | 338,460 | 382,666 | ||||||||
Repayments on revolving credit facility | (393,776 | ) | (325,043 | ) | (366,018 | ) | |||||
Debt issuance costs | (579 | ) | (1,199 | ) | (10 | ) | |||||
(Reduction in) excess tax benefit related to share-based awards | — | (2,510 | ) | 1,273 | |||||||
Purchase of treasury stock | (1,729 | ) | (2,350 | ) | (6,345 | ) | |||||
Proceeds from sale of common stock | 654 | 30,923 | 879 | ||||||||
Repurchase of common stock | (5,203 | ) | — | (9,697 | ) | ||||||
Proceeds from exercise of stock options | 21 | 134 | 39 | ||||||||
Proceeds from noncontrolling interest | — | — | 7 | ||||||||
Net cash (used in) provided by financing activities | (27,285 | ) | 22,851 | (7,349 | ) | ||||||
Discontinued operations: | |||||||||||
Net cash (used in) provided by operating activities | (684 | ) | 12 | 1,199 | |||||||
Net cash provided by (used in) investing activities | 708 | (18 | ) | (1,199 | ) | ||||||
Net cash flows provided by (used in) discontinued operations | 24 | (6 | ) | — | |||||||
Effect of changes in exchange rates on cash and cash equivalents | 151 | (3 | ) | (176 | ) | ||||||
Net (decrease) increase in cash and cash equivalents | (239 | ) | 2,615 | 942 | |||||||
Cash and cash equivalents at beginning of year | 4,823 | 2,208 | 1,266 | ||||||||
Cash and cash equivalents at end of year | $ | 4,584 | $ | 4,823 | $ | 2,208 |
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued | Par Value | Shares | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | 13,986 | $ | 1 | 1,021 | $ | (34,251) | $ | 388,184 | $ | 181 | $ | (351,519) | $ | 2,596 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | 24,713 | 24,713 | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (54) | — | (54) | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | (20) | — | 77 | — | — | 77 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock granted | 146 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeited | (7) | — | 66 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units vested | 82 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Forfeited stock options purchased | — | — | — | — | (617) | — | — | (617) | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | (254) | — | — | (254) | |||||||||||||||||||||||||||||||||||||||||||||
Shares withheld to cover taxes | (3) | — | 42 | (253) | (15) | — | — | (268) | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of Initial ProFrac Agreement Contract Consideration Convertible Notes Payable to February 2023 Warrants | — | — | — | — | 15,092 | — | — | 15,092 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of convertible notes payable to February 2023 Warrants | — | — | — | — | 11,040 | — | — | 11,040 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of Amended ProFrac Agreement Contract Consideration Convertible Notes Payable to common stock | 10,583 | 1 | — | — | 40,637 | — | — | 40,638 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of convertible notes payable to common stock | 1,723 | 1 | — | — | 8,996 | — | — | 8,997 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 35 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of February 2023 warrants | 4,228 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | 30,773 | $ | 3 | 1,109 | $ | (34,504) | $ | 463,140 | $ | 127 | $ | (326,806) | $ | 101,960 |
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued | Par Value | Shares | Cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 13,247 | $ | 1 | 1,004 | $ | (34,100) | $ | 363,424 | $ | 81 | $ | (309,214) | $ | 20,192 | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (42,305) | (42,305) | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 100 | — | 100 | |||||||||||||||||||||||||||||||||||||||||||||
Stock issued under employee stock purchase plan | — | — | (7) | — | 140 | — | — | 140 | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock granted | 255 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock forfeited | (1) | — | 5 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units vested | 24 | — | — | — | (31) | — | — | (31) | |||||||||||||||||||||||||||||||||||||||||||||
Stock compensation expense | — | — | — | — | 3,325 | — | — | 3,325 | |||||||||||||||||||||||||||||||||||||||||||||
Shares withheld to cover taxes | (6) | — | 19 | (151) | (42) | — | — | (193) | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock warrants, net of transaction fee | — | — | — | — | 9,930 | — | — | 9,930 | |||||||||||||||||||||||||||||||||||||||||||||
Equity contribution | — | — | — | — | 8,400 | — | — | 8,400 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of notes to common stock | 467 | — | — | — | 3,038 | — | — | 3,038 | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | 13,986 | $ | 1 | 1,021 | $ | (34,251) | $ | 388,184 | $ | 181 | $ | (351,519) | $ | 2,596 |
Years ended December 31, | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Balance, beginning of year | $ | 623 | $ | 659 | |||||||||||||
Charges to provision for credit losses, net of recoveries | 138 | 203 | |||||||||||||||
Write-offs | (16) | (239) | |||||||||||||||
Balance, end of year | $ | 745 | $ | 623 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Balance, beginning of year | $ | 664 | $ | 709 | $ | 510 | |||||
Charged to provision for doubtful accounts | 113 | 558 | 367 | ||||||||
Write-offs | (44 | ) | (603 | ) | (168 | ) | |||||
Balance, end of year | $ | 733 | $ | 664 | $ | 709 |
Buildings and leasehold improvements | 2-30 years | ||||
Machinery | 7-10 years | ||||
Furniture and fixtures | 3 years | ||||
Land improvements | 20 years | ||||
Transportation equipment | 2-5 years | ||||
Computer equipment and software | 3-7 years |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Products (1) | $ | 182,695 | $ | 132,521 | |||||||||||||||||||
Services | 5,363 | 3,571 | |||||||||||||||||||||
$ | 188,058 | $ | 136,092 |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Tangible goods sold | $ | 144,720 | $ | 126,914 | |||||||||||||||||||
Services | 528 | 285 | |||||||||||||||||||||
Other | 18,547 | 15,593 | |||||||||||||||||||||
$ | 163,795 | $ | 142,792 |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||
Cost of sales for external customers | $ | 64,498 | $ | 56,844 | |||||||||||||||||||
Cost of sales for related parties | 99,297 | 85,948 | |||||||||||||||||||||
$ | 163,795 | $ | 142,792 |
Drilling Technologies | Production Technologies | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||
Discontinued operations: | |||||||||||||||||||||||
Revenue | $ | 11,534 | $ | 27,627 | $ | 52,112 | $ | 4,002 | $ | 8,292 | $ | 12,281 | |||||||||||
Cost of revenue | (7,309 | ) | (18,667 | ) | (35,410 | ) | (3,236 | ) | (7,881 | ) | (10,179 | ) | |||||||||||
Selling, general and administrative | (6,963 | ) | (15,285 | ) | (21,049 | ) | (1,759 | ) | (3,790 | ) | (4,158 | ) | |||||||||||
Depreciation and amortization | — | (1,714 | ) | (3,240 | ) | — | (584 | ) | (658 | ) | |||||||||||||
Research and development | (5 | ) | (64 | ) | (202 | ) | (364 | ) | (888 | ) | (596 | ) | |||||||||||
Gain (loss) on disposal of long-lived assets | 97 | 103 | 17 | — | (50 | ) | 3 | ||||||||||||||||
Impairment of inventory and long-lived assets | — | (36,522 | ) | (19,568 | ) | — | (3,913 | ) | (804 | ) | |||||||||||||
Loss from operations | (2,646 | ) | (44,522 | ) | (27,340 | ) | (1,357 | ) | (8,814 | ) | (4,111 | ) | |||||||||||
Other expense | (96 | ) | (412 | ) | (259 | ) | (52 | ) | (96 | ) | (40 | ) | |||||||||||
Loss on sale of businesses | (1,600 | ) | (1,199 | ) | — | (479 | ) | — | — | ||||||||||||||
Loss on write-down of assets held for sale | (6,831 | ) | (18,971 | ) | — | (9,718 | ) | (6,161 | ) | — | |||||||||||||
Loss before income taxes | (11,173 | ) | (65,104 | ) | (27,599 | ) | (11,606 | ) | (15,071 | ) | (4,151 | ) | |||||||||||
Income tax benefit | 4,138 | 23,661 | 9,675 | 4,299 | 5,477 | 1,455 | |||||||||||||||||
Net loss from discontinued operations | $ | (7,035 | ) | $ | (41,443 | ) | $ | (17,924 | ) | $ | (7,307 | ) | $ | (9,594 | ) | $ | (2,696 | ) |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Contract assets | $ | 79,688 | $ | 83,060 | |||||||
Less accumulated amortization | (5,032) | (3,371) | |||||||||
Contract assets, net | 74,656 | 79,689 | |||||||||
Less current contract assets | (5,836) | (7,113) | |||||||||
Contract assets, long term | $ | 68,820 | $ | 72,576 |
Drilling Technologies | Production Technologies | ||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
Assets: | |||||||||||||||
Accounts receivable, net | $ | — | $ | 5,072 | $ | — | $ | 1,784 | |||||||
Inventories | — | 9,078 | — | 8,115 | |||||||||||
Other current assets | — | 278 | — | 370 | |||||||||||
Long-term receivable | — | — | — | 4,179 | |||||||||||
Property and equipment, net | — | 11,277 | — | 3,978 | |||||||||||
Goodwill | — | 15,333 | — | 1,689 | |||||||||||
Other intangible assets, net | — | 7,395 | — | 484 | |||||||||||
Assets held for sale | — | 48,433 | — | 20,599 | |||||||||||
Valuation allowance | — | (18,971 | ) | — | (6,161 | ) | |||||||||
Assets held for sale, net | $ | — | $ | 29,462 | $ | — | $ | 14,438 | |||||||
Liabilities: | |||||||||||||||
Accounts payable | $ | — | $ | 2,472 | $ | — | $ | 914 | |||||||
Accrued liabilities | — | 1,190 | — | 385 | |||||||||||
Liabilities held for sale | $ | — | $ | 3,662 | $ | — | $ | 1,299 |
Years ending December 31, | Amortization | |||||||||||||
2024 | $ | 5,836 | ||||||||||||
2025 | 8,642 | |||||||||||||
2026 | 9,628 | |||||||||||||
2027 | 9,628 | |||||||||||||
2028 | 9,628 | |||||||||||||
Thereafter through May 2032 | 31,294 | |||||||||||||
Total contract assets | $ | 74,656 |
Three months ended | |||||||
March 31, 2016 | June 30, 2015 | ||||||
Drilling Technologies: | |||||||
Inventories | $ | 12,653 | $ | 17,241 | |||
Long-lived assets: | |||||||
Property and equipment | 14,642 | 2,327 | |||||
Intangible assets other than goodwill | 9,227 | — | |||||
Production Technologies: | |||||||
Inventories | 3,913 | 804 | |||||
Total impairment | $ | 40,435 | $ | 20,372 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Supplemental non-cash investing and financing activities: | |||||||||||
Value of common stock issued in acquisitions | $ | — | $ | 3,268 | $ | 1,014 | |||||
Value of common stock issued in payment of accrued liability | 188 | — | — | ||||||||
Exercise of stock options by common stock surrender | 5,863 | 50 | 1,332 | ||||||||
Supplemental cash payment information: | |||||||||||
Interest paid | $ | 1,851 | $ | 2,024 | $ | 1,398 | |||||
Income taxes (received, net of payments) paid, net of refunds | (10,195 | ) | 333 | 1,547 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
Revenue: | |||||||||||
Products | $ | 310,716 | $ | 256,263 | $ | 258,968 | |||||
Services | 6,382 | 6,569 | 10,998 | ||||||||
$ | 317,098 | $ | 262,832 | $ | 269,966 | ||||||
Cost of revenue (excluding depreciation and amortization): | |||||||||||
Products | $ | 210,281 | $ | 162,488 | $ | 164,837 | |||||
Services | 4,848 | 7,767 | 7,196 | ||||||||
$ | 215,129 | $ | 170,255 | $ | 172,033 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Raw materials | $ | 5,299 | $ | 5,800 | |||||||
Finished goods | 13,660 | 18,130 | |||||||||
Inventories | 18,959 | 23,930 | |||||||||
Less reserve for excess and obsolete inventory | (6,121) | (8,210) | |||||||||
Inventories, net | $ | 12,838 | $ | 15,720 |
December 31, | |||||||
2017 | 2016 | ||||||
Raw materials | $ | 42,682 | $ | 28,626 | |||
Work-in-process | 3,284 | 2,918 | |||||
Finished goods | 29,793 | 26,739 | |||||
Inventories | $ | 75,759 | $ | 58,283 |
Years ended December 31, | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Balance, beginning of year | $ | 8,210 | $ | 10,141 | |||||||||||||
Charged to provisions | 959 | 1,734 | |||||||||||||||
Deductions for sales and disposals | (3,048) | (3,665) | |||||||||||||||
Balance, end of the year | $ | 6,121 | $ | 8,210 |
2017 | 2016 | 2015 | |||||||||
Balance, beginning of year | $ | — | $ | — | $ | — | |||||
Charged to costs and expenses | 724 | 1,301 | 16 | ||||||||
Deductions | (724 | ) | (1,301 | ) | (16 | ) | |||||
Balance, end of the year | $ | — | $ | — | $ | — |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Land | $ | 886 | $ | 886 | |||||||
Land improvements | 520 | 520 | |||||||||
Buildings and leasehold improvements | 5,483 | 5,356 | |||||||||
Machinery and equipment | 6,993 | 6,758 | |||||||||
Furniture and fixtures | 520 | 532 | |||||||||
Transportation equipment | 945 | 784 | |||||||||
Computer equipment and software | 1,696 | 1,425 | |||||||||
Property and equipment | 17,043 | 16,261 | |||||||||
Less accumulated depreciation | (11,914) | (11,435) | |||||||||
Property and equipment, net | $ | 5,129 | $ | 4,826 |
December 31 | |||||||
2017 | 2016 | ||||||
Land | $ | 6,724 | $ | 5,837 | |||
Buildings and leasehold improvements | 43,899 | 42,986 | |||||
Machinery and equipment | 41,548 | 36,187 | |||||
Fixed assets in progress | 4,298 | 3,235 | |||||
Furniture and fixtures | 2,002 | 1,969 | |||||
Transportation equipment | 2,200 | 3,059 | |||||
Computer equipment and software | 12,181 | 11,844 | |||||
Property and equipment | 112,852 | 105,117 | |||||
Less accumulated depreciation | (39,019 | ) | (30,426 | ) | |||
Property and equipment, net | $ | 73,833 | $ | 74,691 |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Operating lease expense | $ | 3,552 | $ | 2,393 | |||||||||||||||||||
Finance lease expense: | |||||||||||||||||||||||
Amortization of assets | 15 | 15 | |||||||||||||||||||||
Interest on lease liabilities | 3 | 12 | |||||||||||||||||||||
Total finance lease expense | 18 | 27 | |||||||||||||||||||||
Short-term lease expense | 300 | 341 | |||||||||||||||||||||
Total lease expense | $ | 3,870 | $ | 2,761 | |||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||
Operating cash flows from operating leases | $ | 5,508 | $ | 2,934 | |||||||||||||||||||
Operating cash flows from finance leases | 34 | 39 | |||||||||||||||||||||
Financing cash flows from finance leases | 3 | 6 |
Years ending December 31, | Operating Leases | Finance Leases | ||||||||||||
2024 | $ | 3,215 | $ | 22 | ||||||||||
2025 | 2,046 | — | ||||||||||||
2026 | 1,732 | — | ||||||||||||
2027 | 1,660 | — | ||||||||||||
2028 | 1,518 | — | ||||||||||||
Thereafter | 2,815 | — | ||||||||||||
Total lease payments | $ | 12,986 | $ | 22 | ||||||||||
Less: Interest | (2,861) | — | ||||||||||||
Present value of lease liabilities | $ | 10,125 | $ | 22 |
Energy Chemistry Technologies | Consumer and Industrial Chemistry Technologies | Total | |||||||||
Balance at December 31, 2015: | |||||||||||
Goodwill | $ | 36,318 | $ | 19,480 | $ | 55,798 | |||||
Accumulated impairment losses | — | — | — | ||||||||
Goodwill balance, net | 36,318 | 19,480 | 55,798 | ||||||||
Activity during the year 2016: | |||||||||||
Goodwill impairment recognized | — | — | — | ||||||||
Acquisition goodwill recognized | 862 | — | 862 | ||||||||
Balance at December 31, 2016: | |||||||||||
Goodwill | 37,180 | 19,480 | 56,660 | ||||||||
Accumulated impairment losses | — | — | — | ||||||||
Goodwill balance, net | 37,180 | 19,480 | 56,660 | ||||||||
Activity during the year 2017: | |||||||||||
Goodwill impairment recognized | — | — | — | ||||||||
Acquisition goodwill recognized | — | — | — | ||||||||
Balance at December 31, 2017: | |||||||||||
Goodwill | 37,180 | 19,480 | 56,660 | ||||||||
Accumulated impairment losses | — | — | — | ||||||||
Goodwill balance, net | $ | 37,180 | $ | 19,480 | $ | 56,660 |
December 31, 2023 | December 31, 2022 | ||||||||||||||||
Operating Leases | |||||||||||||||||
Operating lease right-of-use assets | $ | 5,030 | $ | 5,900 | |||||||||||||
Current portion of operating lease liabilities | $ | 2,449 | $ | 3,328 | |||||||||||||
Long-term operating lease liabilities | 7,676 | 8,044 | |||||||||||||||
Total operating lease liabilities | $ | 10,125 | $ | 11,372 | |||||||||||||
Finance Leases | |||||||||||||||||
Property and equipment | $ | 147 | $ | 147 | |||||||||||||
Accumulated depreciation | (70) | (55) | |||||||||||||||
Property and equipment, net | $ | 77 | $ | 92 | |||||||||||||
Current portion of finance lease liabilities | $ | 22 | $ | 36 | |||||||||||||
Long-term finance lease liabilities | — | 19 | |||||||||||||||
Total finance lease liabilities | $ | 22 | $ | 55 | |||||||||||||
Weighted Average Remaining Lease Term | |||||||||||||||||
Operating leases | 4.5 years | 5.3 years | |||||||||||||||
Finance leases | 0.5 years | 1.6 years | |||||||||||||||
Weighted Average Discount Rate | |||||||||||||||||
Operating leases | 7.8 | % | 9.3 | % | |||||||||||||
Finance leases | 8.5 | % | 8.9 | % |
Years ending December 31, | Rental Income | |||||||
2024 | $ | 767 | ||||||
2025 | 767 | |||||||
2026 | 767 | |||||||
2027 | 767 | |||||||
2028 | 767 | |||||||
Thereafter | 1,406 | |||||||
Total rental income | $ | 5,241 |
December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||
Finite lived intangible assets: | |||||||||||||||
Patents and technology | $ | 17,310 | $ | 5,586 | $ | 16,815 | $ | 4,537 | |||||||
Customer lists | 30,877 | 8,127 | 30,877 | 6,518 | |||||||||||
Trademarks and brand names | 1,549 | 1,117 | 1,467 | 1,069 | |||||||||||
Total finite lived intangible assets acquired | 49,736 | 14,830 | 49,159 | 12,124 | |||||||||||
Deferred financing costs | 1,791 | 96 | 1,804 | 117 | |||||||||||
Total amortizable intangible assets | 51,527 | $ | 14,926 | 50,963 | $ | 12,241 | |||||||||
Indefinite lived intangible assets: | |||||||||||||||
Trademarks and brand names | 11,630 | 11,630 | |||||||||||||
Total other intangible assets | $ | 63,157 | $ | 62,593 | |||||||||||
Carrying amount: | |||||||||||||||
Other intangible assets, net | $ | 48,231 | $ | 50,352 |
Year ending December 31, | ||||
2018 | $ | 3,017 | ||
2019 | 2,956 | |||
2020 | 2,929 | |||
2021 | 2,916 | |||
2022 | 2,664 | |||
Thereafter | 22,119 | |||
Other amortizable intangible assets, net | $ | 36,601 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Severance costs (see Note 12, “Commitments and Contingencies”) | $ | 648 | $ | 2,617 | |||||||
Payroll and benefits | 2,138 | 684 | |||||||||
Legal costs | 37 | 447 | |||||||||
Contingent liability for earn-out provision | 56 | 583 | |||||||||
Deferred revenue, current | 550 | 655 | |||||||||
Taxes other than income taxes | 656 | 1,884 | |||||||||
Other | 1,805 | 2,114 | |||||||||
Total current accrued liabilities | $ | 5,890 | $ | 8,984 |
December 31, | |||||||
2017 | 2016 | ||||||
Long-term debt: | |||||||
Borrowings under revolving credit facility | $ | 27,950 | $ | 38,566 | |||
Term loan | — | 9,833 | |||||
Total long-term debt | 27,950 | 48,399 | |||||
Less current portion of long-term debt | (27,950 | ) | (40,566 | ) | |||
Long-term debt, less current portion | $ | — | $ | 7,833 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Flotek PPP loan | $ | 239 | $ | 4,788 | |||||||
Less current maturities | (179) | (2,052) | |||||||||
Total long-term debt, net of current portion | $ | 60 | $ | 2,736 |
Years ending December 31, | ||||||||
2024 | 179 | |||||||
2025 | 60 | |||||||
Total Flotek PPP loan | $ | 239 |
December 31, | |||||||||||||||
2017 | 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Borrowings under revolving credit facility | $ | 27,950 | $ | 27,950 | $ | 38,566 | $ | 38,566 | |||||||
Term loan | — | — | 9,833 | 9,833 |
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | 2023 | Level 1 | Level 2 | Level 3 | 2022 | |||||||||||||||||||||||||||||||||||||
Contingent earnout consideration | $ | — | $ | — | $ | 56 | $ | 56 | $ | — | $ | — | $ | 583 | $ | 583 | ||||||||||||||||||||||||||||
Initial ProFrac Agreement contract consideration convertible notes | — | — | — | — | — | — | 14,220 | 14,220 | ||||||||||||||||||||||||||||||||||||
Amended ProFrac Agreement contract consideration convertible notes | — | — | — | — | — | — | 69,350 | 69,350 | ||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 56 | $ | 56 | $ | — | $ | — | $ | 84,153 | $ | 84,153 | ||||||||||||||||||||||||||||
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Risk-free interest rate | 4.58% | 4.34% | |||||||||
Expected volatility | 70.0% | 100.0% | |||||||||
Term until liquidation (years) | 1.38 | 2.38 | |||||||||
Stock price (pre-Reverse Stock Split basis for 2022) | $3.92 | $1.12 | |||||||||
Discount rate | 11.86% | 9.95% |
December 31, 2022 | ||||||||
Risk-free interest rate | 4.12% | |||||||
Expected volatility | 100.0% | |||||||
Term until liquidation (years) | 0.09 | |||||||
Stock price (pre-Reverse Stock Split basis) | $1.12 | |||||||
Discount rate | 4.12% |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
(Loss) income from continuing operations | $ | (13,053 | ) | $ | 1,907 | $ | 7,158 | ||||
Loss from discontinued operations, net of tax | (14,342 | ) | (51,037 | ) | (20,620 | ) | |||||
Net loss - Basic and Diluted | $ | (27,395 | ) | $ | (49,130 | ) | $ | (13,462 | ) | ||
Weighted average common shares outstanding - Basic | 57,580 | 56,087 | 54,459 | ||||||||
Assumed conversions: | |||||||||||
Incremental common shares from stock options | — | 197 | 527 | ||||||||
Incremental common shares from restricted stock units | — | 66 | 6 | ||||||||
Weighted average common shares outstanding - Diluted | 57,580 | 56,350 | 54,992 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Continuing operations | $ | (0.23 | ) | $ | 0.03 | $ | 0.13 | ||||
Discontinued operations, net of tax | (0.25 | ) | (0.91 | ) | (0.38 | ) | |||||
Basic earnings (loss) per common share | $ | (0.48 | ) | $ | (0.88 | ) | $ | (0.25 | ) | ||
Diluted earnings (loss) per common share: | |||||||||||
Continuing operations | $ | (0.23 | ) | $ | 0.03 | $ | 0.13 | ||||
Discontinued operations, net of tax | (0.25 | ) | (0.91 | ) | (0.37 | ) | |||||
Diluted earnings (loss) per common share | $ | (0.48 | ) | $ | (0.88 | ) | $ | (0.24 | ) |
December 31, 2022 | |||||||||||
Risk-free interest rate | 4.59% | ||||||||||
Expected volatility | 100.0% | ||||||||||
Term until liquidation (years) | 0.38 | ||||||||||
Stock price (pre-Reverse Stock Split basis) | $1.12 | ||||||||||
Discount rate | 4.59% |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
Balance - beginning of period | $ | 84,153 | $ | 608 | |||||||||||||||||||
Transfer of Initial ProFrac Agreement contract consideration convertible notes payable from Level 2 | — | 10,000 | |||||||||||||||||||||
Issuance of Amended ProFrac Agreement contract consideration convertible notes payable | — | 69,460 | |||||||||||||||||||||
Increase in principle of Initial ProFrac Agreement contract consideration convertible notes payable for paid-in-kind interest | 85 | 954 | |||||||||||||||||||||
Increase in principle of Amended ProFrac Agreement contract consideration convertible notes payable for paid-in-kind interest | 2,044 | 3,231 | |||||||||||||||||||||
Change in fair value of contingent earnout consideration | (527) | (25) | |||||||||||||||||||||
Change in fair value of Initial ProFrac Agreement contract consideration convertible notes payable | 786 | 3,266 | |||||||||||||||||||||
Change in fair value of Amended ProFrac Agreement contract consideration convertible notes payable | (30,755) | (3,341) | |||||||||||||||||||||
Conversion of Initial ProFrac Agreement contract consideration convertible notes on maturity | (15,092) | — | |||||||||||||||||||||
Conversion of Amended ProFrac Agreement contract consideration convertible notes on maturity | (40,638) | — | |||||||||||||||||||||
Balance - end of period | $ | 56 | $ | 84,153 |
Year ended December 31, | Years ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | ||||||||||||||||||
Current: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | ||||||||||||||||||||
Federal | ||||||||||||||||||||
Federal | $ | (1,314 | ) | $ | 442 | $ | 3,944 | |||||||||||||
State | 675 | (85 | ) | 390 | ||||||||||||||||
State | ||||||||||||||||||||
State | ||||||||||||||||||||
Foreign | 488 | (526 | ) | 1,841 | ||||||||||||||||
Total current | (151 | ) | (169 | ) | 6,175 | |||||||||||||||
Foreign | ||||||||||||||||||||
Foreign | ||||||||||||||||||||
Total current expense | ||||||||||||||||||||
Total current expense | ||||||||||||||||||||
Total current expense | ||||||||||||||||||||
Deferred: | ||||||||||||||||||||
Deferred: | ||||||||||||||||||||
Deferred: | ||||||||||||||||||||
Federal | 8,701 | 1,564 | (2,628 | ) | ||||||||||||||||
Federal | ||||||||||||||||||||
Federal | ||||||||||||||||||||
State | ||||||||||||||||||||
State | ||||||||||||||||||||
State | 337 | (112 | ) | (63 | ) | |||||||||||||||
Foreign | (45 | ) | (46 | ) | (8 | ) | ||||||||||||||
Total deferred | 8,993 | 1,406 | (2,699 | ) | ||||||||||||||||
Income tax expense | $ | 8,842 | $ | 1,237 | $ | 3,476 | ||||||||||||||
Foreign | ||||||||||||||||||||
Foreign | ||||||||||||||||||||
Total deferred expense (benefit) | ||||||||||||||||||||
Total deferred expense (benefit) | ||||||||||||||||||||
Total deferred expense (benefit) | ||||||||||||||||||||
Income tax expense (benefit) | ||||||||||||||||||||
Income tax expense (benefit) | ||||||||||||||||||||
Income tax expense (benefit) |
Years ended December 31, | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
United States | $ | 25,315 | $ | (42,242) | |||||||||||||
Foreign | (453) | (85) | |||||||||||||||
Income (loss) before income taxes | $ | 24,862 | $ | (42,327) |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
United States | $ | (2,844 | ) | $ | 4,502 | $ | 4,760 | ||||
Foreign | (1,367 | ) | (1,358 | ) | 5,874 | ||||||
(Loss) income before income taxes | $ | (4,211 | ) | $ | 3,144 | $ | 10,634 |
Year ended December 31, | ||||||||
2017 | 2016 | 2015 | ||||||
Federal statutory tax rate | (35.0 | )% | 35.0 | % | 35.0 | % | ||
State income taxes, net of federal benefit | 14.2 | (5.3 | ) | 2.0 | ||||
Non-U.S. income taxed at different rates | 11.6 | 1.2 | (4.4 | ) | ||||
Impact of 2017 Tax Cuts and Jobs Act | 173.6 | — | — | |||||
Net operating loss carryback adjustment | — | 10.0 | 1.4 | |||||
Reduction in tax benefit related to stock-based awards | 47.2 | — | — | |||||
Non-deductible expenditures | 11.0 | 13.1 | 5.9 | |||||
Research and development credit | (10.8 | ) | (12.7 | ) | (3.5 | ) | ||
Other | (1.8 | ) | (2.0 | ) | (3.7 | ) | ||
Effective income tax rate | 210.0 | % | 39.3 | % | 32.7 | % |
Years ended December 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
U.S. federal statutory tax rate | 21.0 | % | 21.0 | % | |||||||||||||||||||
State income taxes, net of federal benefit | 0.5 | 0.2 | |||||||||||||||||||||
Non-U.S. income taxed at different rates | 0.3 | (0.1) | |||||||||||||||||||||
Tax benefit related to stock-based awards | 0.7 | (0.4) | |||||||||||||||||||||
Change in valuation allowance | (20.9) | (21.8) | |||||||||||||||||||||
Permanent differences related to CARES Act | (3.6) | — | |||||||||||||||||||||
Other | 2.6 | 1.2 | |||||||||||||||||||||
Effective income tax rate | 0.6 | % | 0.1 | % |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | 45,314 | $ | 41,453 | |||||||
Intangible assets | 3,501 | 4,066 | |||||||||
Tax credit carryforwards | 3,923 | 4,011 | |||||||||
Goodwill | 4,513 | 4,920 | |||||||||
Property and equipment | 3,314 | 3,644 | |||||||||
Lease liability | 2,507 | 2,634 | |||||||||
Inventory valuation reserves | 1,359 | 2,033 | |||||||||
Allowance for doubtful accounts | 1,196 | 1,180 | |||||||||
Accrued liabilities | 383 | 320 | |||||||||
Accrued compensation | 485 | 491 | |||||||||
Equity compensation | 132 | 536 | |||||||||
Interest limitation | 137 | 1,616 | |||||||||
Other | 24 | 230 | |||||||||
Total gross deferred tax assets | 66,788 | 67,134 | |||||||||
Valuation allowance | (59,066) | (64,960) | |||||||||
Total deferred tax assets, net | 7,722 | 2,174 | |||||||||
Deferred tax liabilities: | |||||||||||
ROU asset | (1,203) | (1,377) | |||||||||
Contract asset | (5,813) | — | |||||||||
Prepaid insurance and other | (406) | (393) | |||||||||
Total gross deferred tax liabilities | (7,422) | (1,770) | |||||||||
Net deferred tax assets | $ | 300 | $ | 404 |
December 31, | |||||||
2017 | 2016 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 24,569 | $ | 21,212 | |||
Allowance for doubtful accounts | 981 | 1,582 | |||||
Inventory valuation reserves | 827 | 2,205 | |||||
Equity compensation | 685 | 3,161 | |||||
Goodwill | — | 10,788 | |||||
Accrued compensation | 222 | 80 | |||||
Foreign tax credit carryforward | 3,955 | 2,365 | |||||
Other | — | 76 | |||||
Total gross deferred tax assets | 31,239 | 41,469 | |||||
Valuation allowance | (1,187 | ) | (1,053 | ) | |||
Total deferred tax assets, net | 30,052 | 40,416 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | (6,216 | ) | (7,264 | ) | |||
Intangible assets | (10,084 | ) | (13,375 | ) | |||
Goodwill | (365 | ) | — | ||||
Convertible debt | (619 | ) | (2,010 | ) | |||
Unearned revenue | (52 | ) | (4,535 | ) | |||
Prepaid insurance and other | (3 | ) | (338 | ) | |||
Total gross deferred tax liabilities | (17,339 | ) | (27,522 | ) | |||
Net deferred tax assets | $ | 12,713 | $ | 12,894 |
Risk-free interest rate | 3.21% | ||||
Expected volatility | 90.0% | ||||
Term until liquidation (years) | 2.00 | ||||
Stock price (pre-Reverse Stock Split) | $1.11 | ||||
Strike price (exercise fee) | $4.5 million |
Year ended December 31, | |||||
2017 | 2016 | ||||
Shares issued at the beginning of the year | 59,684,669 | 56,220,214 | |||
Issued in sale of common stock | — | 2,450,339 | |||
Issued in acquisition | — | 247,764 | |||
Issued in payment of accrued liability | — | 20,000 | |||
Issued as restricted stock award grants | 275,029 | 632,240 | |||
Issued upon exercise of stock options | 663,288 | 114,112 | |||
Shares issued at the end of the year | 60,622,986 | 59,684,669 |
Shares | Weighted-Average Exercise Price | Weighted-Average Fair Value | |||||||||||||||||||||||||||||||||||||||
Outstanding as of December 31, 2021 | 713,650 | ||||||||||||||||||||||||||||||||||||||||
Granted | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||||||||||||||||||||
Forfeited | — | — | — | ||||||||||||||||||||||||||||||||||||||
Expired | (20,000) | 4.32 | 0.60 | ||||||||||||||||||||||||||||||||||||||
Outstanding as of December 31, 2022 | 693,650 | ||||||||||||||||||||||||||||||||||||||||
Granted | 190,728 | 3.42 | 2.57 | ||||||||||||||||||||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||||||||||||||||||||
Forfeited | (457,815) | 7.10 | 7.28 | ||||||||||||||||||||||||||||||||||||||
Expired | (130,000) | $ | 7.97 | $ | 5.94 | ||||||||||||||||||||||||||||||||||||
Outstanding as of December 31, 2023 | 296,563 | ||||||||||||||||||||||||||||||||||||||||
Vested or expected to vest at December 31, 2023 | 252,891 | ||||||||||||||||||||||||||||||||||||||||
Share Options Outstanding | Share Options Currently Exercisable | Share Options Vested or Expected to Vest | |||||||||||||||||||||||||||||||||||||||
Number | 296,563 | 10,000 | 252,891 | ||||||||||||||||||||||||||||||||||||||
Weighted-average exercise price | $ | 4.42 | $ | 4.32 | $ | 4.56 | |||||||||||||||||||||||||||||||||||
Aggregate intrinsic value ($000’s) | 95 | — | 78 | ||||||||||||||||||||||||||||||||||||||
Weighted-average remaining contractual term in years | 8.7 | 1.59 | 8.55 |
June 7, 2023 Awards | |||||||||||||||||||||||
Risk-free interest rate | 3.79 | % | |||||||||||||||||||||
Expected volatility of common stock | 110.00 | % | |||||||||||||||||||||
Expected life of options in years | 10.0 | ||||||||||||||||||||||
Dividend yield | — | % |
December 5, 2023 Awards | |||||||||||||||||||||||
Risk-free interest rate | 4.13 | % | |||||||||||||||||||||
Expected volatility of common stock | 90.60 | % | |||||||||||||||||||||
Expected life of options in years | 6.5 | ||||||||||||||||||||||
Dividend yield | — | % |
Options | Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
Outstanding as of January 1, 2017 | 663,288 | $ | 8.87 | ||||||||||
Exercised | (663,288 | ) | 8.87 | ||||||||||
Forfeited | — | — | |||||||||||
Expired | — | — | |||||||||||
Outstanding as of December 31, 2017 | — | $ | — | 0.00 | $ | — |
Restricted Stock Shares | Shares | Weighted- Average Fair Value at Date of Grant | |||||
Non-vested at January 1, 2017 | 683,242 | $ | 15.92 | ||||
Granted to employees | 260,029 | 10.62 | |||||
Granted to service provider | 15,000 | 9.34 | |||||
Vested | (590,027 | ) | 14.63 | ||||
Forfeited | (121,986 | ) | 17.48 | ||||
Non-vested at December 31, 2017 | 246,258 | $ | 12.24 |
Restricted Stock Shares | Shares | Weighted- Average Fair Value at Date of Grant | ||||||||||||
Non-vested at December 31, 2021 | 294,485 | $ | 9.86 | |||||||||||
Granted | 256,746 | 7.89 | ||||||||||||
Vested | (161,292) | 10.60 | ||||||||||||
Forfeited | (5,405) | 10.16 | ||||||||||||
Non-vested at December 31, 2022 | 384,534 | 8.23 | ||||||||||||
Granted | 146,204 | 4.52 | ||||||||||||
Vested | (186,058) | 7.81 | ||||||||||||
Forfeited | (95,667) | 9.25 | ||||||||||||
Non-vested at December 31, 2023 | 249,013 | $ | 5.97 |
Restricted Stock Units | Units | Weighted- Average Fair Value at Date of Grant | ||||||||||||
RSUs at December 31, 2021 | 128,348 | $ | 11.45 | |||||||||||
Vested | (19,000) | 11.58 | ||||||||||||
Forfeited | (6,867) | 11.52 | ||||||||||||
RSUs at December 31, 2022 | 102,481 | 11.42 | ||||||||||||
Granted | 230,816 | 3.82 | ||||||||||||
Vested | (82,730) | 10.64 | ||||||||||||
Forfeited | (38,000) | 11.58 | ||||||||||||
RSUs at December 31, 2023 | 212,567 | $ | 3.44 |
Restricted Stock Unit Shares | Shares | Weighted- Average Fair Value at Date of Grant | |||||
RSU share equivalents at January 1, 2017 | 768,393 | $ | 12.02 | ||||
2016 share equivalents forfeited | (263,585 | ) | 12.02 | ||||
2016 share equivalents not earned | (252,403 | ) | 12.02 | ||||
2016 share equivalents | 252,405 | 12.02 | |||||
2017 share equivalents granted | 604,682 | 18.70 | |||||
2017 share equivalents forfeited | (131,756 | ) | 18.48 | ||||
RSU share equivalents at December 31, 2017 | 725,331 | $ | 16.41 |
Year ending December 31, | Minimum Lease Payments | |||
2018 | $ | 2,734 | ||
2019 | 2,434 | |||
2020 | 2,169 | |||
2021 | 1,973 | |||
2022 | 1,988 | |||
Thereafter | 10,508 | |||
Total | $ | 21,806 |
January 19, 2023 | |||||||||||||||||||||||
Risk-free interest rate | 3.79 | % | |||||||||||||||||||||
Expected volatility of common stock | 90.00 | % | |||||||||||||||||||||
Expected life of options in years | 6.92 | ||||||||||||||||||||||
Stock price (pre-Reverse Stock Split basis) | $ | 1.37 | |||||||||||||||||||||
Strike Price | $ | 1.93 |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Numerator: | ||||||||||||||
Net income (loss) for basic earnings per share | $ | 24,713 | $ | (42,305) | ||||||||||
Adjustments to net income (loss) available to shareholders for diluted earnings | ||||||||||||||
Paid-in-Kind interest expense on convertible notes payable and contract consideration convertible notes payable, net of tax | 2,284 | — | ||||||||||||
Valuation gain on convertible notes carried at fair value, net of tax | (29,969) | — | ||||||||||||
Net loss for fully dilutive earnings per share | $ | (2,972) | $ | (42,305) | ||||||||||
Denominator: | ||||||||||||||
Basic weighted average shares outstanding | 24,830 | 12,404 | ||||||||||||
Dilutive effect of convertible notes payable | 3,547 | — | ||||||||||||
Diluted weighted average shares outstanding | 28,377 | 12,404 | ||||||||||||
Basic earnings (loss) per share | $ | 1.00 | $ | (3.41) | ||||||||||
Diluted loss per share | $ | (0.10) | $ | (3.41) |
Year ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Anti-dilutive adjustment to net income available to shareholders excluded from numerator for diluted earnings computation | ||||||||||||||
Paid-in-Kind interest expense on convertible notes payable and contract consideration convertible notes payable, net of tax | $ | — | $ | 5,956 | ||||||||||
Valuation gain on convertible notes carried at fair value, net of tax | — | (75) | ||||||||||||
Total numerator adjustment excluded from diluted earnings computation | $ | — | $ | 5,881 | ||||||||||
Anti-dilutive incremental shares excluded from denominator for diluted earnings computation | ||||||||||||||
Average number of diluted shares for convertible notes payable and contract consideration convertible notes payable | — | 9,108 | ||||||||||||
Average number of diluted shares for stock warrants | 1,251 | 802 | ||||||||||||
Average number of diluted shares for stock options and restricted stock | 94 | 128 | ||||||||||||
Total incremental shares excluded from denominator for diluted earnings computation | 1,345 | 10,038 |
Years ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental cash payment information: | |||||||||||
Interest paid | $ | 434 | $ | 45 | |||||||
Supplemental non-cash financing and investing activities: | |||||||||||
Conversion of convertible notes payable to common stock | $ | 8,996 | $ | 3,038 | |||||||
Conversion of convertible notes payable to February 2023 Warrants | 11,040 | — | |||||||||
Conversion of Initial Contract Consideration Convertible Notes Payable to February 2023 Warrants | 15,092 | — | |||||||||
Conversion of Amended Contract Consideration Convertible Notes Payable to common stock | 40,638 | — | |||||||||
Transfer from fixed assets to inventory | 15 | — | |||||||||
Issuance of convertible notes payable as consideration for ProFrac Agreements | — | 79,460 | |||||||||
As of and for the years ended December 31, | Chemistry Technologies | Data Analytics | Corporate and Other | Total | |||||||||||||||||||
2023 | |||||||||||||||||||||||
Revenue from external customers | |||||||||||||||||||||||
Products | $ | 56,721 | $ | 5,275 | $ | — | $ | 61,996 | |||||||||||||||
Services | 2,295 | 2,227 | — | 4,522 | |||||||||||||||||||
Total revenue from external customers | 59,016 | 7,502 | — | 66,518 | |||||||||||||||||||
Revenue from related party | |||||||||||||||||||||||
Products | 120,698 | 2 | — | 120,700 | |||||||||||||||||||
Services | 205 | 635 | — | 840 | |||||||||||||||||||
Total revenue from related parties | 120,903 | 637 | — | 121,540 | |||||||||||||||||||
Gross profit | 20,345 | 3,918 | — | 24,263 | |||||||||||||||||||
Change in fair value of contract consideration convertible notes | (29,969) | — | — | (29,969) | |||||||||||||||||||
Income (loss) from operations | 39,043 | (53) | (15,767) | 23,223 | |||||||||||||||||||
Paid-in-kind interest on contract consideration convertible notes payable | 2,129 | — | — | 2,129 | |||||||||||||||||||
Paid-in-kind interest on convertible notes payable | — | — | 238 | 238 | |||||||||||||||||||
Interest on ABL | — | — | 453 | 453 | |||||||||||||||||||
Other interest | — | — | 37 | 37 | |||||||||||||||||||
Depreciation | 613 | 95 | 26 | 734 | |||||||||||||||||||
Additions to long-lived assets | 180 | 466 | 435 | 1,081 | |||||||||||||||||||
Income tax expense | — | — | (149) | (149) | |||||||||||||||||||
2022 | |||||||||||||||||||||||
Revenue from external customers | |||||||||||||||||||||||
Product | $ | 47,004 | $ | 3,903 | $ | — | $ | 50,907 | |||||||||||||||
Service | 1,956 | 1,481 | — | 3,437 | |||||||||||||||||||
Total revenue from external customers | 48,960 | 5,384 | — | 54,344 | |||||||||||||||||||
Revenue from related party | |||||||||||||||||||||||
Product | 81,614 | — | — | 81,614 | |||||||||||||||||||
Service | 4 | 130 | — | 134 | |||||||||||||||||||
Total revenue from related parties | 81,618 | 130 | — | 81,748 | |||||||||||||||||||
Gross profit (loss) | (7,317) | 617 | — | (6,700) | |||||||||||||||||||
Change in fair value of contract consideration convertible notes | (75) | — | — | (75) | |||||||||||||||||||
Loss from operations | (14,729) | (2,877) | (17,815) | (35,421) | |||||||||||||||||||
Paid-in-kind interest on contract consideration convertible notes payable | 4,185 | — | — | 4,185 | |||||||||||||||||||
Paid-in-kind interest on convertible notes payable | — | — | 1,771 | 1,771 | |||||||||||||||||||
Accrued issuance costs on convertible notes payable | — | — | 912 | 912 | |||||||||||||||||||
Depreciation | 668 | 63 | 3 | 734 | |||||||||||||||||||
Additions to long-lived assets | 56 | 134 | 231 | 421 | |||||||||||||||||||
Income tax benefit | — | — | 22 | 22 |
As of and for the year ended December 31, | Energy Chemistry Technologies | Consumer and Industrial Chemistry Technologies | Corporate and Other | Total | ||||||||||||
2017 | ||||||||||||||||
Net revenue from external customers | $ | 243,106 | $ | 73,992 | $ | — | $ | 317,098 | ||||||||
Income (loss) from operations | 33,611 | 7,465 | (43,931 | ) | (2,855 | ) | ||||||||||
Depreciation and amortization | 7,323 | 2,391 | 2,445 | 12,159 | ||||||||||||
Capital expenditures | 3,279 | 4,763 | 918 | 8,960 | ||||||||||||
2016 | ||||||||||||||||
Net revenue from external customers | $ | 188,233 | $ | 74,599 | $ | — | $ | 262,832 | ||||||||
Income (loss) from operations | 29,014 | 9,664 | (45,982 | ) | (7,304 | ) | ||||||||||
Depreciation and amortization | 5,935 | 2,257 | 2,237 | 10,429 | ||||||||||||
Capital expenditures | 10,674 | 888 | 2,398 | 13,960 | ||||||||||||
2015 | ||||||||||||||||
Net revenue from external customers | $ | 213,592 | $ | 56,374 | $ | — | $ | 269,966 | ||||||||
Income (loss) from operations | 43,902 | 8,742 | (40,366 | ) | 12,278 | |||||||||||
Depreciation and amortization | 4,791 | 2,202 | 1,742 | 8,735 | ||||||||||||
Capital expenditures | 12,803 | 568 | 3,020 | 16,391 |
December 31, 2017 | December 31, 2016 | ||||||
Energy Chemistry Technologies | $ | 177,797 | $ | 184,328 | |||
Consumer and Industrial Chemistry Technologies | 116,600 | 98,105 | |||||
Corporate and Other | 35,491 | 56,882 | |||||
Total segments | 329,888 | 339,315 | |||||
Held for sale | — | 43,900 | |||||
Total assets | $ | 329,888 | $ | 383,215 |
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Chemistry Technologies | $ | 138,559 | $ | 146,542 | |||||||
Data Analytics | 6,604 | 5,645 | |||||||||
Corporate and Other | 12,350 | 12,623 | |||||||||
Total assets | $ | 157,513 | $ | 164,810 | |||||||
Years ended December 31, | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
U.S. (1) | $ | 180,300 | $ | 124,399 | |||||||||||||
UAE | 6,549 | 9,257 | |||||||||||||||
Other countries | 1,209 | 2,436 | |||||||||||||||
Total revenue | $ | 188,058 | $ | 136,092 |
Year ended December 31, | |||||||||||
2017 | 2016 | 2015 | |||||||||
U.S. | $ | 259,610 | $ | 210,890 | $ | 227,117 | |||||
Other countries | 57,488 | 51,942 | 42,849 | ||||||||
Total | $ | 317,098 | $ | 262,832 | $ | 269,966 |
Revenue | % of Total Revenue | |||||||||||||||||||||||||
Year ended December 31, 2023 | ||||||||||||||||||||||||||
Customer A (related party - ProFrac Services, LLC) | $ | 121,540 | 64.6 | % |
Year ended December 31, 2022 | ||||||||||||||||||||||||||
Customer A (related party - ProFrac Services, LLC) | $ | 80,359 | 59.0 | % | ||||||||||||||||||||||
Customer B | $ | 14,395 | 10.6 | % |
Expenditure | % of Total Expenditure | |||||||||||||||||||||||||
Year ended December 31, 2023 | ||||||||||||||||||||||||||
Supplier A | $ | 42,684 | 30.1 | % | ||||||||||||||||||||||
Supplier B | 28,222 | 19.9 | % | |||||||||||||||||||||||
Supplier C | 16,447 | 11.6 | % |
Year ended December 31, 2022 | ||||||||||||||||||||||||||
Supplier A | $ | 25,057 | 27.7 | % | ||||||||||||||||||||||
Supplier B | 15,302 | 16.9 | % | |||||||||||||||||||||||
Supplier C | 15,255 | 16.8 | % |
Year ended December 31, | |||||
2017 | 2016 | 2015 | |||
Customer A | 12.8% | 15.7% | 17.2% | ||
Customer B | 8.9% | 13.2% | 14.6% | ||
Customer C | 4.0% | 6.9% | 10.6% |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
2017 | |||||||||||||||||||
Revenue (1) | $ | 79,954 | $ | 85,177 | $ | 79,458 | $ | 72,509 | $ | 317,098 | |||||||||
Income (loss) from operations (1) | (623 | ) | (1,252 | ) | (3,103 | ) | 2,123 | (2,855 | ) | ||||||||||
Loss from continuing operations (1) | $ | (743 | ) | $ | (1,122 | ) | $ | (3,421 | ) | $ | (7,767 | ) | $ | (13,053 | ) | ||||
Income (loss) from discontinued operations, net of tax | (11,235 | ) | (2,704 | ) | 319 | (722 | ) | (14,342 | ) | ||||||||||
Net loss | $ | (11,978 | ) | $ | (3,826 | ) | $ | (3,102 | ) | $ | (8,489 | ) | $ | (27,395 | ) | ||||
Basic earnings (loss) per common share (2): | |||||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.23 | ) | ||||
Discontinued operations | (0.19 | ) | (0.05 | ) | 0.01 | (0.01 | ) | (0.25 | ) | ||||||||||
Basic earnings (loss) per common share | $ | (0.20 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | (0.15 | ) | $ | (0.48 | ) | ||||
Diluted earnings (loss) per common share (2): | |||||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.06 | ) | $ | (0.14 | ) | $ | (0.23 | ) | ||||
Discontinued operations | (0.19 | ) | (0.05 | ) | 0.01 | (0.01 | ) | (0.25 | ) | ||||||||||
Diluted earnings (loss) per common share | $ | (0.20 | ) | $ | (0.07 | ) | $ | (0.05 | ) | $ | (0.15 | ) | $ | (0.48 | ) | ||||
(1) Amounts exclude impact of discontinued operations. | |||||||||||||||||||
(2) The sum of the quarterly earnings (loss) per share (basic and diluted) may not agree to the earnings (loss) per share for the year due to the timing of common stock issuances. | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
2016 | |||||||||||||||||||
Revenue (1) | $ | 63,812 | $ | 64,079 | $ | 64,337 | $ | 70,604 | $ | 262,832 | |||||||||
Income (loss) from operations (1) | 368 | 156 | (2,253 | ) | (5,575 | ) | (7,304 | ) | |||||||||||
Income (loss) from continuing operations (1) | $ | (29 | ) | $ | (111 | ) | $ | (1,870 | ) | $ | 3,917 | $ | 1,907 | ||||||
Loss from discontinued operations, net of tax | (30,156 | ) | (2,169 | ) | (876 | ) | (17,836 | ) | (51,037 | ) | |||||||||
Net loss | $ | (30,185 | ) | $ | (2,280 | ) | $ | (2,746 | ) | $ | (13,919 | ) | $ | (49,130 | ) | ||||
Basic earnings (loss) per common share (2): | |||||||||||||||||||
Continuing operations | $ | — | $ | — | $ | (0.03 | ) | $ | 0.07 | $ | 0.03 | ||||||||
Discontinued operations | (0.55 | ) | (0.04 | ) | (0.02 | ) | (0.31 | ) | (0.91 | ) | |||||||||
Basic earnings (loss) per common share | $ | (0.55 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.24 | ) | $ | (0.88 | ) | ||||
Diluted earnings (loss) per common share (2): | |||||||||||||||||||
Continuing operations | $ | — | $ | — | $ | (0.03 | ) | $ | 0.07 | $ | 0.03 | ||||||||
Discontinued operations | (0.55 | ) | (0.04 | ) | (0.02 | ) | (0.31 | ) | (0.91 | ) | |||||||||
Diluted earnings (loss) per common share | $ | (0.55 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.24 | ) | $ | (0.88 | ) | ||||
(1) Amounts exclude impact of discontinued operations. | |||||||||||||||||||
(2) The sum of the quarterly earnings (loss) per share (basic and diluted) may not agree to the earnings (loss) per share for the year due to the timing of common stock issuances. |
Exhibit Number | Description of Exhibit | |||||||
2.1 | †† | |||||||
†† | ||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
3.4 | ||||||||
3.5 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
10.1 | † | |||||||
10.2 | † | |||||||
10.3 | † | |||||||
10.4 | † | |||||||
10.5 | † | |||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | †† | |||||||
10.10 | *** |
10.11 | ||||||||
10.12 | ||||||||
10.13 | †† | |||||||
10.14 | ||||||||
10.15 | *** | |||||||
10.16 | ||||||||
10.17 | † | |||||||
10.18 | † | |||||||
10.19 | † | |||||||
10.20 | † | |||||||
10.21 | † | |||||||
10.22 | † | |||||||
10.23 | † | |||||||
† | ||||||||
10.25 | † | |||||||
10.26 | † | |||||||
10.27 | † | |||||||
† | ||||||||
10.29 | †† | |||||||
10.3 | † | |||||||
10.31 | † | |||||||
10.32 | † | |||||||
10.33 | † | |||||||
10.34 | † |
10.35 | † | |||||||
10.36 | † | |||||||
† | ||||||||
10.38 | † | |||||||
† | ||||||||
† | ||||||||
† | ||||||||
† | ||||||||
† | ||||||||
† | ||||||||
10.45 | † | |||||||
†* | ||||||||
* | ||||||||
* | ||||||||
* | ||||||||
31.2 | * | |||||||
32.1 | * | |||||||
32.2 | * | |||||||
101.INS | * | Inline XBRL Instance |
Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | ||||||||
101.SCH | * | Inline XBRL Schema Document | ||||||
* | ||||||||
Inline XBRL Calculation Linkbase | ||||||||
101.LAB | Inline XBRL Label Linkbase | |||||||
101.PRE | Inline XBRL Presentation Linkbase | |||||||
101.DEF | Inline XBRL Definition Linkbase | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
* | Filed | |||||||
** | Furnished with this Form 10-K, not filed. | |||||||
Certain identified information has been excluded from this exhibit because it is not material and is the type of information that the Company customarily and actually treats as private and confidential. Redacted information is indicated by [***] | ||||||||
† | Management contracts or compensatory plans or agreements. | |||||||
†† | Pursuant to Item 601(a)(5) of Regulation S-K, certain schedules and similar attachments have been omitted. The Company hereby agrees to furnish a copy of any omitted schedule or attachment to the Securities and Exchange Commission upon request. |
FLOTEK INDUSTRIES, INC. | ||||||||||
By: | /s/ Ryan Ezell | |||||||||
SIGNATURES | TITLE | DATE | ||||||||
/s/ Ryan Ezell | March 15, 2024 | |||||||||
/s/ Bond Clement Bond Clement | Chief Financial Officer (Principal Financial and Accounting Officer) | March 15, 2024 | ||||||||
/s/ Harsha V. Agadi Harsha V. Agadi | Chairman of the Board | March | ||||||||
15, 2024 | ||||||||||
/s/ Evan Farber | Director | March | ||||||||
Michael Fucci | Director | March 15, 2024 | ||||||||
/s/ Lisa Mayr | Director | March | ||||||||
/s/ David Nierenberg David Nierenberg | Director | March 15, 2024 | ||||||||
/s/ Matt D. Wilks | Director | March | ||||||||
15, 2024 |