Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-37822 | |
Entity Registrant Name | Advanced Emissions Solutions, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-5472457 | |
Entity Address, Address Line One | 8051 E. Maplewood Ave | |
Entity Address, Address Line Two | Suite 210 | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
City Area Code | 720 | |
Local Phone Number | 598-3500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock, par value $0.001 per share | |
Trading Symbol | ADES | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 19,096,217 | |
Entity Central Index Key | 0001515156 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 79,807 | $ 78,753 |
Receivables, net | 13,008 | 12,622 |
Receivables, related parties | 0 | 2,481 |
Inventories, net | 10,280 | 7,850 |
Prepaid expenses and other assets | 7,387 | 6,661 |
Total current assets | 110,482 | 108,367 |
Restricted cash, long-term | 10,000 | 10,027 |
Property, plant and equipment, net of accumulated depreciation of $8,885 and $7,684, respectively | 30,310 | 30,171 |
Intangible assets, net | 1,155 | 1,237 |
Equity method investments | 711 | 2,391 |
Other long-term assets, net | 28,913 | 33,243 |
Total Assets | 181,571 | 185,436 |
Current liabilities: | ||
Accounts payable | 9,328 | 10,009 |
Accrued payroll and related liabilities | 3,959 | 6,477 |
Current portion of finance lease obligations | 957 | 1,011 |
Other current liabilities | 4,552 | 5,124 |
Total current liabilities | 18,796 | 22,621 |
Long-term finance lease obligations, net of current portion | 2,955 | 3,152 |
Other long-term liabilities | 15,470 | 12,362 |
Total Liabilities | 37,221 | 38,135 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock: par value of $.001 per share, 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock: par value of $.001 per share, 100,000,000 shares authorized, 23,724,218 and 23,460,212 shares issued, and 19,106,072 and 18,842,066 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 24 | 23 |
Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of March 31, 2022 and December 31, 2021, respectively | (47,692) | (47,692) |
Additional paid-in capital | 102,187 | 102,106 |
Retained earnings | 89,831 | 92,864 |
Total Stockholders’ Equity | 144,350 | 147,301 |
Total Liabilities and Stockholders’ Equity | $ 181,571 | $ 185,436 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 8,885 | $ 7,684 |
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 23,724,218 | 23,460,212 |
Common stock, shares outstanding (in shares) | 19,106,072 | 18,842,066 |
Treasury stock (in shares) | 4,618,146 | 4,618,146 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 26,402 | $ 22,607 |
Operating expenses: | ||
Payroll and benefits | 2,626 | 2,469 |
Legal and professional fees | 2,172 | 1,803 |
General and administrative | 1,926 | 1,915 |
Depreciation, amortization, depletion and accretion | 1,506 | 2,106 |
Total operating expenses | 29,737 | 22,277 |
Operating (loss) income | (3,335) | 330 |
Other income (expense): | ||
Earnings from equity method investments | 833 | 18,312 |
Interest expense | (86) | (837) |
Other | (445) | 421 |
Total other income | 302 | 17,896 |
(Loss) income before income tax expense | (3,033) | 18,226 |
Income tax expense | 0 | 4,489 |
Net (loss) income | $ (3,033) | $ 13,737 |
(Loss) earnings per common share (Note 1): | ||
Basic (in dollars per share) | $ (0.17) | $ 0.76 |
Diluted (in dollars per share) | $ (0.17) | $ 0.75 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 18,344 | 18,166 |
Diluted (in shares) | 18,344 | 18,274 |
Consumables | ||
Revenues: | ||
Total revenues | $ 26,402 | $ 18,541 |
Operating expenses: | ||
Consumables cost of revenue, exclusive of depreciation and amortization | 21,507 | 13,984 |
License royalties, related party | ||
Revenues: | ||
Total revenues | $ 0 | $ 4,066 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2020 | 23,141,284 | (4,618,146) | |||
Beginning Balance at Dec. 31, 2020 | $ 85,210 | $ 23 | $ (47,692) | $ 100,425 | $ 32,454 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 381,339 | ||||
Stock-based compensation | 421 | 421 | |||
Repurchase of common shares to satisfy minimum tax withholdings (in shares) | (40,975) | ||||
Repurchase of common shares to satisfy minimum tax withholdings | (216) | (216) | |||
Net income (loss) | 13,737 | 13,737 | |||
Ending Balance (in shares) at Mar. 31, 2021 | 23,481,648 | (4,618,146) | |||
Ending Balance at Mar. 31, 2021 | 99,152 | $ 23 | $ (47,692) | 100,630 | 46,191 |
Beginning Balance (in shares) at Dec. 31, 2021 | 23,460,212 | (4,618,146) | |||
Beginning Balance at Dec. 31, 2021 | 147,301 | $ 23 | $ (47,692) | 102,106 | 92,864 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 323,742 | ||||
Stock-based compensation | 464 | 463 | |||
Repurchase of common shares to satisfy minimum tax withholdings (in shares) | (59,736) | ||||
Repurchase of common shares to satisfy minimum tax withholdings | (382) | (382) | |||
Net income (loss) | (3,033) | (3,033) | |||
Ending Balance (in shares) at Mar. 31, 2022 | 23,724,218 | (4,618,146) | |||
Ending Balance at Mar. 31, 2022 | $ 144,350 | $ 24 | $ (47,692) | $ 102,187 | $ 89,831 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net (loss) income | $ (3,033) | $ 13,737 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Deferred income tax expense | 0 | 3,051 |
Depreciation, amortization, depletion and accretion | 1,506 | 2,106 |
Operating lease expense | 663 | 379 |
Amortization of debt discount and debt issuance costs | 0 | 591 |
Stock-based compensation expense | 464 | 421 |
Earnings from equity method investments | (833) | (18,312) |
Other non-cash items, net | 550 | (273) |
Changes in operating assets and liabilities: | ||
Receivables and related party receivables | 2,095 | 2,147 |
Prepaid expenses and other assets | (725) | 1,178 |
Inventories, net | (2,359) | 1,548 |
Other long-term assets, net | 3,116 | (1,817) |
Accounts payable | (692) | (706) |
Accrued payroll and related liabilities | (2,518) | (1,043) |
Other current liabilities | (1,231) | 1,305 |
Operating lease liabilities | 2,680 | 2,104 |
Other long-term liabilities | 910 | (2,113) |
Distributions from equity method investees, return on investment | 1,501 | 17,644 |
Net cash provided by operating activities | 2,094 | 21,947 |
Cash flows from investing activities | ||
Distributions from equity method investees in excess of cumulative earnings | 1,013 | 5,607 |
Acquisition of property, plant, equipment, and intangible assets, net | (1,359) | (1,321) |
Mine development costs | (93) | (248) |
Proceeds from sale of property and equipment | 0 | 848 |
Net cash (used in) provided by investing activities | (439) | 4,886 |
Cash flows from financing activities | ||
Principal payments on term loan | 0 | (10,000) |
Principal payments on finance lease obligations | (226) | (315) |
Dividends paid | (20) | 0 |
Repurchase of common shares to satisfy tax withholdings | (382) | (216) |
Net cash used in financing activities | (628) | (10,531) |
Increase in Cash and Cash Equivalents and Restricted Cash | 1,027 | 16,302 |
Cash and Cash Equivalents and Restricted Cash, beginning of period | 88,780 | 35,932 |
Cash and Cash Equivalents and Restricted Cash, end of period | 89,807 | 52,234 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Acquisition of property and equipment through accounts payable | $ 10 | $ 765 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Nature of Operations Advanced Emissions Solutions, Inc. ("ADES" or the "Company") is a Delaware corporation with its principal office located in Greenwood Village, Colorado and operations located in Louisiana. The Company is principally engaged in the sale of consumable air and water treatment solutions including activated carbon ("AC") and chemical technologies. The Company's proprietary technologies in the advanced purification technologies ("APT") market enable customers to reduce air and water contaminants, including mercury and other pollutants, to maximize utilization levels and to improve operating efficiencies to meet the challenges of existing and pending air quality and water regulations. The Company manufactures and sells AC used to capture and remove contaminants for coal-fired power plants and industrial and water treatment markets. The Company also owns an associated lignite mine ("Five Forks Mine") which supplies the primary raw material for manufacturing AC. Through December 31, 2021, the Company generated substantial earnings from its equity ownership in Tinuum Group, LLC ("Tinuum Group") and Tinuum Services, LLC ("Tinuum Services"), both of which are unconsolidated entities. Both Tinuum Group and Tinuum Services ceased material operations effective December 31, 2021 as a result of the expiration of a tax credit program under Internal Revenue Code Section 45 - Production Tax Credit (the "Section 45 Tax Credit Program"). Tinuum Group provided reduction of mercury and nitrogen oxide ("NOx") emissions at select coal-fired power generators through the production and sale of refined coal ("RC") that qualified for tax credits under the Section 45 Tax Credit Program ("Section 45 tax credits"). The Company also earned royalties for technologies that were licensed to Tinuum Group and used at certain RC facilities to enhance combustion and reduce emissions of NOx and mercury from coal burned to generate electrical power. Tinuum Services operated and maintained the RC facilities under operating and maintenance agreements with Tinuum Group and owners or lessees of the RC facilities. Presently, both Tinuum Group and Tinuum Services continue to wind-down their operations, and the Company expects to receive final cash distributions, which are not expected to be significant, from these entities during 2022. Basis of Presentation The accompanying Condensed Consolidated Financial Statements of ADES are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and with Article 10 of Regulation S-X of the Securities and Exchange Commission. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The unaudited Condensed Consolidated Financial Statements of ADES in this quarterly report ("Quarterly Report") are presented on a consolidated basis and include ADES and its wholly-owned subsidiaries (collectively, the "Company"). Also included within the unaudited Condensed Consolidated Financial Statements are the Company's unconsolidated equity investments: Tinuum Group and Tinuum Services, which are accounted for under the equity method of accounting, and Highview Enterprises Limited (the "Highview Investment"), which is accounted for in accordance with U.S. GAAP applicable to equity investments that do not qualify for the equity method of accounting. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts were eliminated in consolidation for all periods presented in this Quarterly Report. In the opinion of management, these Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary for a fair presentation of the results of operations, financial position, stockholders' equity and cash flows for the interim periods presented. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Significant accounting policies disclosed therein have not changed. Earnings (Loss) Per Share Basic earnings (loss) per share is computed using the weighted-average number of shares of common stock outstanding during the reporting period. Diluted earnings (loss) per share is computed in a manner consistent with that of basic earnings per share, while considering other potentially dilutive securities. For the three months ended March 31, 2022 and March 31, 2021, potentially dilutive securities consist of unvested restricted stock awards ("RSA's") and contingent performance stock units ("PSU's"). The following table sets forth the calculations of basic and diluted (loss) earnings per share: Three Months Ended March 31, (in thousands, except per share amounts) 2022 2021 Net (loss) income $ (3,033) $ 13,737 Basic weighted-average common shares outstanding 18,344 18,166 Add: dilutive effect of equity instruments — 108 Diluted weighted-average shares outstanding 18,344 18,274 (Loss) earnings per share - basic $ (0.17) $ 0.76 (Loss) earnings per share - diluted $ (0.17) $ 0.75 For the three months ended March 31, 2022 and 2021, potentially dilutive securities convertible to 0.3 million and 0.1 million shares of common stock, respectively, were outstanding but were not included in the calculation of diluted net (loss) income per share because the effect would have been anti-dilutive. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. There have been no changes in the Company’s critical accounting estimates from those that were disclosed in the 2021 Form 10-K. Actual results could differ from these estimates. Risks and Uncertainties The loss of earnings and cash distributions of both Tinuum Group and Tinuum Services will continue to have a material adverse impact on the Company’s financial position, results of operations and cash flows. For 2022, the Company is solely dependent on operations of its APT business and its cash and cash equivalents on hand to provide liquidity over the near and long term. The Company's revenues, sales volumes, earnings and cash flows are significantly affected by prices of competing power generation sources such as natural gas and renewable energy. During periods of low natural gas prices, natural gas provides a competitive alternative to coal-fired power generation and therefore, coal consumption may be reduced, which in turn reduces the demand for the Company's products. However, during periods of higher prices for competing power generation sources, there is an increase in coal consumption and thus demand for the Company's products also increases. In addition, coal consumption and demand for the Company's products are affected by the demand for electricity, which is higher in the warmer and colder months of the year. Abnormal temperatures during the summer and winter months may significantly affect coal consumption and impurities within various municipalities' water sources, and thus impact the demand for the Company's products. Reclassifications Certain balances have been reclassified from the prior year to conform to the current year presentation. Such reclassifications had no effect on the Company’s results of operations or financial position in any of the periods presented. Segments Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision-making group, in deciding how to allocate resources and in assessing financial performance. As of March 31, 2022, the Company's CODM was the Company's Chief Executive Officer, and the Company concluded that it has one reportable segment, Advanced Purification Technologies ("APT"). Given the wind-down of Tinuum Group and Tinuum Services and the impact on the Company's financial statements, the Company determined the historical RC segment no longer met the qualitative or quantitative criteria to be considered a reporting segment under U.S. GAAP. As a result, including the method in which the CODM allocates resources, beginning January 1, 2022, the Company determined that it had one reportable segment, and therefore has removed its segment disclosures for this Quarterly Report. New Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. ASU 2016-13 is effective for "smaller reporting companies" (as defined by the Securities and Exchange Commission) for fiscal years beginning after December 15, 2022, including interim periods within those years, and must be adopted under a modified retrospective method approach. The Company intends to adopt ASU 2016-13 effective January 1, 2023 and is currently evaluating the provisions of this guidance and assessing the impact on its financial statements and disclosures. The Company does not believe this standard will have a material impact on its financial statements and disclosures. |
Customer Supply Agreement
Customer Supply Agreement | 3 Months Ended |
Mar. 31, 2022 | |
Additional Term of Contract [Abstract] | |
Customer Supply Agreement | Customer Supply Agreement On September 30, 2020, the Company and Norit Activated Carbon - Americas (f/k/a Cabot Norit Americas, Inc.), ("Norit") entered into a supply agreement (the "Supply Agreement") pursuant to which the Company agreed to sell and deliver to Norit, and Norit agreed to purchase and accept from the Company certain lignite-based AC products ("Furnace Products"). The term of the Supply Agreement is for 15 years with 10-year renewal terms that are automatic unless either party provides three years prior notice of intention not to renew before the end of any term. Under the Supply Agreement, Norit also reimburses the Company for certain capital expenditures incurred by the Company that are necessary to manufacture the Furnace Products. Reimbursements are comprised of revenues earned from capital expenditures incurred that will benefit both the Company and Norit (referred to as "Shared Capital") and revenues earned from capital expenditures incurred that will benefit Norit exclusively (referred to as "Specific Capital"). In the event that Norit ceases to make purchases under the Supply Agreement, Norit is obligated to pay the balance of any outstanding payments for Specific Capital. Further, under the terms of the Supply Agreement, Norit was obligated to pay the Reclamation Reimbursement (defined below) to the Company for $10.2 million of the Reclamation Costs, inclusive of interest. The Company recorded the Norit Receivable for the Reclamation Reimbursement at its estimated fair value, which was measured using a discounted cash flows valuation model that considered the estimated credit risk associated with the obligor's (Norit's) future performance, which the Company estimated was approximately 1.5%. On February 25, 2022, the Company received $10.6 million in cash from Norit (the "Norit Payment") as a result of a change in control provision in the Supply Agreement (the "Change in Control"), which occurred as a result of the sale of Norit by its parent, Cabot Corporation. Under the Change in Control, the Company received from Norit full payment of all amounts outstanding under the Reclamation Reimbursement, payment of all unbilled amounts related to Specific Capital for expenditures incurred through February 28, 2022 and payment of $0.8 million related to additional costs due to the third party operator of Marshall Mine (the "Norit Reclamation Costs"). Under the Reclamation Contract, the Company is obligated to remit payment for the Norit Reclamation Costs to the third-party operator of Marshall Mine within a specified timeframe, and such payment was remitted in March 2022. The Change in Control did not impact any other provisions of the Supply Agreement. As of February 25, 2022, the carrying value of the Reclamation Reimbursement was $9.0 million, which was reflective of the principal balance, adjusted for accretion of interest and payments made to date. Under the Change in Control, the Company received $8.5 million in cash for full payment of the outstanding Reclamation Reimbursement. The Company concluded that the cash proceeds received represented an early payment of a receivable based on a change in contractual terms and accounted for the difference between the cash proceeds received and the carrying amount of the Reclamation Reimbursement of $0.5 million as a loss, which is included in the "Other Income (Expense)" line item in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2022. Also, under the Change in Control, the Company received $1.3 million in advance of revenues to be recognized in future periods related to Specific Capital and recorded this amount as deferred revenue, which will be recognized as revenues ratably over the remaining contractual term as stipulated in the Supply Agreement. |
Acquisition of Marshall Mine
Acquisition of Marshall Mine | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Marshall Mine | Acquisition of Marshall Mine Concurrently with the execution of the Supply Agreement, on September 30, 2020, the Company entered into an agreement to purchase from Norit 100% of the membership interests in Marshall Mine, LLC (the "Marshall Mine Acquisition") for a nominal cash purchase price. Marshall Mine, LLC owns a lignite mine located outside of Marshall, Texas (the "Marshall Mine"). The Company concluded that the Marshall Mine did not have any remaining economic reserves and independently determined to immediately commence activities to shutter it. Accordingly, on September 30, 2020, the Company and a third party entered into a reclamation contract (the "Reclamation Contract") for full reclamation of the Marshall Mine, which is expected to be completed by 2030. Under the terms of the Supply Agreement, Norit was obligated to reimburse the Company for $10.2 million (the "Reclamation Reimbursement") for a portion of the total costs incurred under the Reclamation Contract (the "Reclamation Costs"), which was payable semi-annually over 13 years and inclusive of interest. As discussed in Note 2, on February 25, 2022 as part of the Change in Control, Norit fully paid the outstanding amount owed under the Reclamation Reimbursement and has no further liability related to the Marshall Mine. The Company accounted for the Marshall Mine Acquisition as an asset acquisition, and it included the acquisition of certain assets and assumption of certain liabilities as well as the incurrence of an obligation for the Reclamation Costs (the "Marshall Mine ARO"). As of March 31, 2022 and December 31, 2021, the carrying value of the Marshall Mine ARO was $4.7 million and $6.3 million, respectively. As the Marshall Mine Acquisition represented a transaction with a customer of net assets acquired and liabilities assumed from Norit, the Company accounted for the excess of the fair value of liabilities assumed over assets acquired as upfront consideration transferred to a customer, Norit (the "Upfront Customer Consideration"). The amount of the Upfront Customer Consideration was also recognized net of the Reclamation Reimbursements. The total Upfront Customer Consideration is being amortized as a reduction to revenues on a straight-line basis over the expected 15-year contractual period of the Supply Agreement. Amortization of the Upfront Customer Consideration is approximately $0.5 million per year. The Company also evaluated Marshall Mine, LLC as a potential variable interest entity ("VIE") and determined that it was a VIE and the Company was its primary beneficiary. Therefore, the Company consolidates Marshall Mine, LLC's assets and liabilities in its consolidated financial statements. The following tables summarize the assets and liabilities of Marshall Mine, LLC and their classification in the Company's Condensed Consolidated Balance Sheets: As of (in thousands) March 31, 2022 December 31, 2021 Balance sheet component Cash $ 169 $ 914 Current assets Norit receivable, short-term — 2,056 Current assets Property and equipment, net 1,861 1,968 Non-current assets Norit receivable, long-term — 6,846 Non-current assets Restricted cash 10,000 10,027 Non-current assets Upfront customer consideration 6,855 6,982 Non-current assets $ 18,885 $ 28,793 Accounts payable and accrued liabilities $ 105 $ 1,065 Current liabilities Asset retirement obligation, short-term 29 1,775 Current liabilities Asset retirement obligation, long-term 4,623 4,546 Non-current liabilities $ 4,757 $ 7,386 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): As of Leases March 31, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets, net of accumulated amortization (1) $ 8,754 $ 6,000 Operating lease obligations, current $ 2,797 $ 2,157 Long-term operating lease obligations 6,218 4,178 Total operating lease obligation $ 9,015 $ 6,335 Finance Leases Finance lease right-of-use assets, net of accumulated amortization (2) $ 1,602 $ 1,743 Finance lease obligations, current $ 957 $ 1,011 Long-term finance lease obligations 2,955 3,152 Total finance lease obligations $ 3,912 $ 4,163 (1) Operating lease ROU assets are reported net of accumulated amortization of $2.3 million and $1.9 million as of March 31, 2022 and December 31, 2021, respectively. (2) Finance lease ROU assets are reported net of accumulated amortization of $1.3 million and $1.1 million as of March 31, 2022 and December 31, 2021, respectively. Finance leases ROU assets under finance leases are included in the "Property, plant and equipment" line item in the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021. Operating leases ROU assets under operating leases and operating lease liabilities are included in the " Other long-term assets Other current liabilities Other long-term liabilities Lease expense for operating leases for the three months ended March 31, 2022 was $1.1 million, of which $1.0 million is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item and $0.1 million is included in the "General and administrative" line item in the Condensed Consolidated Statements of Operations. Lease expense for operating leases for the three months ended March 31, 2021 was $1.0 million, of which $0.9 million is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item and $0.1 million is included in "General and administrative" line item in the Condensed Consolidated Statements of Operations. Lease financial information as of and for the three months ended March 31, 2022 and 2021 is provided in the following table: Three Months Ended March 31, (in thousands) 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 141 $ 174 Interest on lease liabilities 78 79 Operating lease cost 806 459 Short-term lease cost 243 567 Variable lease cost (1) 9 9 Total lease cost $ 1,277 $ 1,288 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases $ 78 $ 79 Operating cash flows for operating leases $ 738 $ 575 Financing cash flows for finance leases $ 226 $ 315 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,418 $ 2,679 Weighted-average remaining lease term - finance leases 2.7 years 3.3 years Weighted-average remaining lease term - operating leases 4.4 years 1.6 years Weighted-average discount rate - finance leases 6.29 % 6.18 % Weighted-average discount rate - operating leases 5.99 % 8.46 % (1) Primarily includes common area maintenance, property taxes and insurance payable to lessors. |
Leases | Leases The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): As of Leases March 31, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets, net of accumulated amortization (1) $ 8,754 $ 6,000 Operating lease obligations, current $ 2,797 $ 2,157 Long-term operating lease obligations 6,218 4,178 Total operating lease obligation $ 9,015 $ 6,335 Finance Leases Finance lease right-of-use assets, net of accumulated amortization (2) $ 1,602 $ 1,743 Finance lease obligations, current $ 957 $ 1,011 Long-term finance lease obligations 2,955 3,152 Total finance lease obligations $ 3,912 $ 4,163 (1) Operating lease ROU assets are reported net of accumulated amortization of $2.3 million and $1.9 million as of March 31, 2022 and December 31, 2021, respectively. (2) Finance lease ROU assets are reported net of accumulated amortization of $1.3 million and $1.1 million as of March 31, 2022 and December 31, 2021, respectively. Finance leases ROU assets under finance leases are included in the "Property, plant and equipment" line item in the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. Interest expense related to finance lease obligations and amortization of ROU assets under finance leases are included in the "Interest expense" and "Depreciation, amortization, depletion and accretion" line items, respectively, in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021. Operating leases ROU assets under operating leases and operating lease liabilities are included in the " Other long-term assets Other current liabilities Other long-term liabilities Lease expense for operating leases for the three months ended March 31, 2022 was $1.1 million, of which $1.0 million is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item and $0.1 million is included in the "General and administrative" line item in the Condensed Consolidated Statements of Operations. Lease expense for operating leases for the three months ended March 31, 2021 was $1.0 million, of which $0.9 million is included in the "Consumables - cost of revenue, exclusive of depreciation and amortization" line item and $0.1 million is included in "General and administrative" line item in the Condensed Consolidated Statements of Operations. Lease financial information as of and for the three months ended March 31, 2022 and 2021 is provided in the following table: Three Months Ended March 31, (in thousands) 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 141 $ 174 Interest on lease liabilities 78 79 Operating lease cost 806 459 Short-term lease cost 243 567 Variable lease cost (1) 9 9 Total lease cost $ 1,277 $ 1,288 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases $ 78 $ 79 Operating cash flows for operating leases $ 738 $ 575 Financing cash flows for finance leases $ 226 $ 315 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,418 $ 2,679 Weighted-average remaining lease term - finance leases 2.7 years 3.3 years Weighted-average remaining lease term - operating leases 4.4 years 1.6 years Weighted-average discount rate - finance leases 6.29 % 6.18 % Weighted-average discount rate - operating leases 5.99 % 8.46 % (1) Primarily includes common area maintenance, property taxes and insurance payable to lessors. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Trade receivables represent an unconditional right to consideration in exchange for goods or services transferred to a customer. The Company invoices its customers in accordance with the terms of the contract. Credit terms are generally net 30 from the date of invoice. The timing between the satisfaction of performance obligations and when payment is due from the customer is generally not significant. The Company records allowances for doubtful trade receivables when it is probable that the balances will not be collected. Receivables, net The following table shows the components of the Company's Receivables, net: As of (in thousands) March 31, 2022 December 31, 2021 Trade receivables, net $ 12,987 $ 10,476 Other receivables 21 — Norit Receivable - current — 2,146 Total Receivable, net $ 13,008 $ 12,622 Disaggregation of Revenue |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following table summarizes the Company's inventories recorded at the lower of average cost or net realizable value as of March 31, 2022 and December 31, 2021: As of (in thousands) March 31, 2022 December 31, 2021 Product inventory, net $ 5,706 $ 4,901 Raw material inventory 4,574 2,949 $ 10,280 $ 7,850 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings The Company is from time to time subject to various pending or threatened legal actions and proceedings, including those that arise in the ordinary course of its business. Such matters are subject to many uncertainties and outcomes, the financial impacts of which are not predictable with assurance and that may not be known for extended periods of time. The Company records a liability in its consolidated financial statements for costs related to claims, settlements, and judgments where management has assessed that a loss is probable and an amount can be reasonably estimated. There were no significant legal proceedings as of March 31, 2022. Surety Bonds and Restricted Cash As the owner of the Marshall Mine, the Company is required to post surety bonds to ensure performance of its reclamation activities under the Reclamation Contract. As of March 31, 2022 and December 31, 2021, the Company had posted a $16.6 million surety bond, which will remain in place until the Marshall Mine is fully reclaimed, and may be further reduced in amount from time to time as the Company progresses with its reclamation activities. The Company is also required to post collateral of $10.0 million for the surety bonds insuring the performance requirements for the reclamation of Marshall Mine. As of March 31, 2022 and December 31, 2021, the restricted cash is reported as long-term restricted cash on the Condensed Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021 , the Company had an outstanding surety bon d of $7.5 million related to performance requirements under reclamation contracts associated with the Five Forks Mine. Other Commitments and Contingencies |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Supplemental Balance Sheet Information The following table summarizes the components of Prepaid expenses and other assets and Other long-term assets, net as presented in the Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Prepaid expenses and other assets: Prepaid expenses $ 3,102 $ 2,571 Prepaid income taxes and income tax refunds 2,899 2,782 Other 1,386 1,308 $ 7,387 $ 6,661 Other long-term assets, net: Right of use assets, operating leases, net $ 8,754 $ 6,000 Upfront Customer Consideration 6,855 6,982 Mine development costs, net 5,340 5,330 Spare parts, net 4,243 4,598 Mine reclamation asset, net 1,717 1,742 Highview Investment 552 552 Other 1,452 1,193 Norit Receivable — 6,846 $ 28,913 $ 33,243 Spare parts include critical spares required to support plant operations. Parts and supply costs are determined using the lower of cost or estimated replacement cost. Parts are recorded as maintenance expenses in the period in which they are consumed or are capitalized if applicable. Mine development costs include acquisition costs, the cost of other development work and mitigation costs related to the Five Forks Mine and are depleted over the estimated life of the related mine reserves. The Company performs an evaluation of the recoverability of the carrying value of mine development costs to determine if facts and circumstances indicate that their carrying value may be impaired and if any adjustment is warranted. There were no indicators of impairment as of March 31, 2022. Mine reclamation asset, net represents an asset retirement obligation ("ARO") asset related to the Five Forks Mine and is depreciated over the estimated life of the Five Forks Mine. The following table details the components of Other current liabilities and Other long-term liabilities as presented in the Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Other current liabilities: Current portion of operating lease obligations $ 2,797 $ 2,157 Current portion of mine reclamation liability 29 1,775 Income and other taxes payable 888 807 Deferred revenue 268 — Other 570 385 $ 4,552 $ 5,124 Other long-term liabilities: Mine reclamation liabilities $ 8,317 $ 8,184 Operating lease obligations, long-term 6,218 4,178 Deferred revenue, long-term 935 — $ 15,470 $ 12,362 The Mine reclamation liability related to the Five Forks Mine is included in Other long-term liabilities. The Mine reclamation liability related to Marshall Mine is included in Other current liabilities and Other long-term liabilities. The Mine reclamation liabilities represent AROs and activity for the three months ended March 31, 2022 and year ended December 31, 2021 was as follows: As of (in thousands) March 31, 2022 December 31, 2021 Asset retirement obligations, beginning of period $ 9,959 $ 21,447 Accretion 157 1,102 Liabilities settled (1,770) (10,010) Changes due to scope and timing of reclamation (1) — (2,580) Asset retirement obligations, end of period 8,346 9,959 Less current portion 29 1,775 Asset retirement obligations, long-term $ 8,317 $ 8,184 (1) As of June 30, 2021 and December 31, 2021, the Company revised its estimate of future obligations owed for the reclamation of the Marshall Mine primarily based on scope reductions related to future reclamation requirements. As a result, the Company reduced the Marshall Mine ARO by $2.7 million and recorded a corresponding gain on change in estimate of $2.7 million for the year ended December 31, 2021. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Tinuum Group, LLC As of March 31, 2022 and December 31, 2021, the Company's ownership interest in Tinuum Group was 42.5%. Tinuum Group supplied technology equipment and technical services at select coal-fired generators, but its primary purpose was to put into operation facilities that produce and sell RC that lowers emissions and also qualifies for Section 45 tax credits. The Company concluded that Tinuum Group was a VIE, but the Company does not have the power to direct the activities that most significantly impact Tinuum Group's economic performance, as the voting partners of Tinuum Group have identical voting rights, equity control interests and board control interests, and therefore power is shared. Accordingly, the Company has accounted for its investment in Tinuum Group under the equity method of accounting since inception. The following table summarizes the results of operations of Tinuum Group: Three Months Ended March 31, (in thousands) 2022 2021 Gross profit $ 964 $ 2,675 Operating, selling, general and administrative expenses 3,197 13,802 Loss from operations (2,233) (11,127) Other income (expenses), net 501 853 (Income) loss attributable to noncontrolling interest (294) 35,578 Net (loss) income available to members $ (2,026) $ 25,304 ADES equity earnings from Tinuum Group $ 1,012 $ 16,362 For the three months ended March 31, 2022 and 2021, the Company recognized earnings from Tinuum Group's net (loss)/income available to members that were different from its pro-rata share of Tinuum Group's net (loss)/income available to members for those periods, as cash distributions for the three months ended March 31, 2022 and 2021 exceeded the carrying value of the Tinuum Group equity investment. The following tables present the Company's investment balance, equity earnings and cash distributions in excess of the investment balance, if any, for the three months ended March 31, 2022 and 2021 ( in thousands ): Description Date(s) Investment balance ADES equity earnings Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2021 $ — $ — $ — $ (21,779) ADES proportionate share of loss from Tinuum Group First Quarter (861) (861) — — Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) First Quarter (21,779) (21,779) — 21,779 Cash distributions from Tinuum Group First Quarter (1,012) — 1,012 — Adjustment for current year cash distributions in excess of investment balance First Quarter 23,652 23,652 — (23,652) Total investment balance, equity earnings and cash distributions 3/31/2022 $ — $ 1,012 $ 1,012 $ (23,652) Description Date(s) Investment balance ADES equity earnings Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2020 $ 3,387 $ — $ — $ — ADES proportionate share of income from Tinuum Group First Quarter 10,755 10,755 — — Cash distributions from Tinuum Group First Quarter (19,749) — 19,749 — Adjustment for current year cash distributions in excess of investment balance First Quarter 5,607 5,607 — (5,607) Total investment balance, equity earnings and cash distributions 3/31/2021 $ — $ 16,362 $ 19,749 $ (5,607) Tinuum Services, LLC The Company has a 50% voting and economic interest in Tinuum Services as of March 31, 2022 and December 31, 2021. The Company determined that Tinuum Services was not a VIE and further evaluated it for consolidation under the voting interest model. Because the Company does not own greater than 50% of the outstanding voting shares, either directly or indirectly, it has accounted for its investment in Tinuum Services under the equity method of accounting since inception. As of March 31, 2022 and December 31, 2021, the Company’s investment in Tinuum Services was $0.7 million and $2.4 million, respectively. The following table summarizes the results of operations of Tinuum Services: Three Months Ended March 31, (in thousands) 2022 2021 Gross profit (loss) $ 968 $ (18,522) Operating, selling, general and administrative expenses 2,545 54,366 Loss from operations (1,577) (72,888) Other income (expenses), net 894 (427) Loss attributable to noncontrolling interest 323 77,215 Net (loss) income $ (360) $ 3,900 ADES equity (loss) earnings from Tinuum Services $ (180) $ 1,950 Included in the Consolidated Statements of Operations of Tinuum Services for the three months ended March 31, 2022 and 2021 were losses/earnings attributable to noncontrolling interests of Tinuum Services' VIE entities, which were eliminated in the calculations of Tinuum Services' net income attributable to the Company's interest. The following table details the carrying value of the Company's respective equity method investments included in the Equity method investments line item on the Condensed Consolidated Balance Sheets and indicates the Company's maximum exposure to loss: As of (in thousands) March 31, December 31, Equity method investment in Tinuum Services $ 711 $ 2,391 Equity method investment in Tinuum Group — — Total equity method investments $ 711 $ 2,391 The following table details the components of the Company's respective equity method investments included in the "Earnings from equity method investments" line item on the Condensed Consolidated Statements of Operations: Three Months Ended March 31, (in thousands) 2022 2021 Earnings from Tinuum Group $ 1,012 $ 16,362 (Loss) earnings from Tinuum Services (180) 1,950 Earnings from other 1 — Earnings from equity method investments $ 833 $ 18,312 The following table details the components of the cash distributions from the Company's respective equity method investments included as a component of cash flows from operating activities and investing activities in the Condensed Consolidated Statements of Cash Flows. Distributions from equity method investees are reported in the Condensed Consolidated Statements of Cash Flows as "Distributions from equity method investees, return on investment" as a component of cash flows from operations until such time as the carrying value in an equity method investee company is reduced to zero. Thereafter, such distributions are reported as "Distributions from equity method investees in excess of cumulative earnings" as a component of cash flows from investing activities. Three Months Ended March 31, (in thousands) 2022 2021 Distributions from equity method investees, return on investment Tinuum Services $ 1,501 $ 3,502 Tinuum Group — 14,142 $ 1,501 $ 17,644 Distributions from equity method investees in excess of investment basis Tinuum Group $ 1,012 $ 5,607 Other 1 — $ 1,013 $ 5,607 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stock Repurchase Programs In November 2018, the Company's Board of Directors (the "Board") authorized the Company to purchase up to $20.0 million of its outstanding common stock under a stock repurchase program (the "Stock Repurchase Program"), which was to remain in effect until December 31, 2019 unless otherwise modified by the Board. In November 2019, the Board authorized an incremental $7.1 million to the Stock Repurchase Program and provided that it will remain in effect until all amounts are utilized or it is otherwise modified by the Board. As of March 31, 2022, the Company had $7.0 million remaining under the Stock Repurchase Program. Tax Asset Protection Plan U.S. federal income tax rules, and Section 382 of the Internal Revenue Code in particular, could substantially limit the use of net operating losses and tax credits if the Company experiences an "ownership change" (as defined in the Internal Revenue Code). In general, an ownership change occurs if there is a cumulative change in the ownership of the Company by "5 percent stockholders" that exceeds 50 percentage points over a rolling three-year period. On May 5, 2017, the Board approved the declaration of a dividend of rights to purchase Series B Junior Participating Preferred Stock for each outstanding share of common stock as part of a tax asset protection plan (the "TAPP") designed to protect the Company’s ability to utilize its net operating losses and tax credits. The TAPP is intended to act as a deterrent to any person acquiring beneficial ownership of 4.99% or more of the Company’s outstanding common stock. On March 15, 2022, the Board approved the Fifth Amendment to the TAPP (the "Fifth Amendment") that amends the TAPP, as previously amended by the First, Second, Third and Fourth Amendments that were approved the Board on April 6, 2018, April 5, 2019, April 9, 2020 and April 9, 2021, respectively. The Fifth Amendment amends the definition of "Final Expiration Date" under the TAPP to extend the duration of the TAPP and makes associated changes in connection therewith. Pursuant to the |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company grants equity-based awards to employees, non-employee directors and consultants that may include, but are not limited to, RSA's, PSU's, restricted stock units and stock options. Stock-based compensation expense related to manufacturing employees and administrative employees is included within the "Cost of revenue" and "Payroll and benefits" line items, respectively, in the Condensed Consolidated Statements of Operations. Stock-based compensation expense related to non-employee directors and consultants is included within the "General and administrative" line item in the Condensed Consolidated Statements of Operations. Total stock-based compensation expense for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended March 31, (in thousands) 2022 2021 RSA expense $ 427 $ 407 PSU expense 37 14 Total stock-based compensation expense $ 464 $ 421 The amount of unrecognized compensation cost as of March 31, 2022, and the expected weighted-average period over which the cost will be recognized is as follows: As of March 31, 2022 (in thousands, expect years) Unrecognized Compensation Cost Expected Weighted- RSA expense $ 3,625 2.40 PSU expense 245 2.07 Total unrecognized stock-based compensation expense $ 3,870 2.34 Restricted Stock Restricted stock is typically granted with vesting terms of three years. The fair value of RSA's is determined based on the closing price of the Company’s common stock on the authorization date of the grant multiplied by the number of shares subject to the stock award. Compensation expense for RSA's is generally recognized on a straight-line basis over the entire vesting period. A summary of RSA activity under the Company's various stock compensation plans for the three months ended March 31, 2022 is presented below: Restricted Stock Weighted-Average Grant Date Fair Value Non-vested at January 1, 2022 531,623 $ 5.94 Granted 336,079 $ 6.40 Vested (217,973) $ 6.47 Forfeited (12,337) $ 6.05 Non-vested at March 31, 2022 637,392 $ 6.00 Performance Share Units Compensation expense is recognized for PSU's on a straight-line basis over the applicable service period, which is generally three years, based on the estimated fair value at the date of grant using a Monte Carlo simulation model. A summary of PSU activity for the three months ended March 31, 2022 is presented below: Units Weighted-Average Aggregate Intrinsic Value (in thousands) Weighted-Average PSU's outstanding, January 1, 2022 88,026 $ 6.65 Granted 60,565 9.59 Vested / Settled — — Forfeited / Canceled — — PSU's outstanding, March 31, 2022 148,591 $ 7.85 $ 924 2.07 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2022 and 2021, the Company's income tax expense and effective tax rates were: Three Months Ended March 31, (in thousands, except for rate) 2022 2021 Income tax expense $ — $ 4,489 Effective tax rate — % 25 % The effective rate for the three months ended March 31, 2022 was zero, as the Company incurred pretax loss for this period and the resultant tax benefit was offset by a valuation allowance recorded as of March 31, 2022, as the Company expects to incur pretax loss for the year ended December 31, 2022. The effective rate for the three months ended March 31, 2021 was higher from the federal statutory rate primarily from the impact of estimated state income taxes. The Company assesses a valuation allowance recorded against deferred tax assets at each reporting date. The determination of whether a valuation allowance for deferred tax assets is appropriate requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all sources of taxable income available to realize deferred tax assets, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating income taxes, the Company assesses the relative merits and risks of the appropriate income tax treatment of transactions taking into account statutory, judicial and regulatory guidance. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value of financial instruments The carrying amounts of financial instruments, including cash, cash equivalents and restricted cash, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short maturity of these instruments. The carrying amounts of the Norit Receivable and finance lease obligations approximate fair value based on credit terms and market interest rates currently available for similar instruments. Accordingly, these instruments are not presented in the table below. The following table provides the estimated fair values of the remaining financial instruments: As of March 31, 2022 As of December 31, 2021 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Instruments: Highview Investment $ 552 $ 552 $ 552 $ 552 Highview Obligation $ 221 $ 221 $ 227 $ 227 Concentration of credit risk The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. The Company holds cash and cash equivalents at two financial institutions as of March 31, 2022. If an institution was unable to perform its obligations, the Company would be at risk regarding the amount of cash and investments in excess of the Federal Deposit Insurance Corporation limits (currently $250 thousand) that would be returned to the Company. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of March 31, 2022 and December 31, 2021, the Company had no financial instruments carried and measured at fair value on a recurring basis. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company accounts for the Highview Investment as an investment recorded at cost, less impairment, plus or minus observable changes in price for identical or similar investments of the same issuer. Fair value measurements, if any, represent either Level 2 or Level 3 measurements. The Highview Investment is evaluated for indicators of impairment such as an event or change in circumstances that may have a significant adverse effect on the fair value of the investment. There were no changes to the carrying value of the Highview Investment for the three months ended March 31, 2022 as there were no indicators of impairment or observable price changes for identical or similar investments. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Financial Statements of ADES are unaudited and have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") and with Article 10 of Regulation S-X of the Securities and Exchange Commission. In compliance with those instructions, certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The unaudited Condensed Consolidated Financial Statements of ADES in this quarterly report ("Quarterly Report") are presented on a consolidated basis and include ADES and its wholly-owned subsidiaries (collectively, the "Company"). Also included within the unaudited Condensed Consolidated Financial Statements are the Company's unconsolidated equity investments: Tinuum Group and Tinuum Services, which are accounted for under the equity method of accounting, and Highview Enterprises Limited (the "Highview Investment"), which is accounted for in accordance with U.S. GAAP applicable to equity investments that do not qualify for the equity method of accounting. Results of operations and cash flows for the interim periods are not necessarily indicative of the results that may be expected for the entire year. All significant intercompany transactions and accounts were eliminated in consolidation for all periods presented in this Quarterly Report. |
Earnings (Loss) Per Share | Basic earnings (loss) per share is computed using the weighted-average number of shares of common stock outstanding duringthe reporting period. Diluted earnings (loss) per share is computed in a manner consistent with that of basic earnings per share, while considering other potentially dilutive securities. For the three months ended March 31, 2022 and March 31, 2021, potentially dilutive securities consist of unvested restricted stock awards ("RSA's") and contingent performance stock units ("PSU's"). |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. There have been no changes in the Company’s critical accounting estimates from those that were disclosed in the 2021 Form 10-K. Actual results could differ from these estimates. |
Risks and Uncertainties | will continue to have a material adverse impact on the Company’s financial position, results of operations and cash flows. For 2022, the Company is solely dependent on operations of its APT business and its cash and cash equivalents on hand to provide liquidity over the near and long term. The Company's revenues, sales volumes, earnings and cash flows are significantly affected by prices of competing power generation sources such as natural gas and renewable energy. During periods of low natural gas prices, natural gas provides a competitive alternative to coal-fired power generation and therefore, coal consumption may be reduced, which in turn reduces the demand for the Company's products. However, during periods of higher prices for competing power generation sources, there is an increase in coal consumption and thus demand for the Company's products also increases. In addition, coal consumption and demand for the Company's products are affected by the demand for electricity, which is higher in the warmer and colder months of the year. Abnormal temperatures during the summer and winter months may significantly affect coal consumption and impurities within various municipalities' water sources, and thus impact the demand for the Company's products.The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. The Company holds cash and cash equivalents at two financial institutions as of March 31, 2022. If an institution was unable to perform its obligations, the Company would be at risk regarding the amount of cash and investments in excess of the Federal Deposit Insurance Corporation limits (currently $250 thousand) that would be returned to the Company. |
Reclassifications | Certain balances have been reclassified from the prior year to conform to the current year presentation. Such reclassifications had no effect on the Company’s results of operations or financial position in any of the periods presented. |
Segments | Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by a company's chief operating decision maker ("CODM"), or a decision-making group, in deciding how to allocate resources and in assessing financial performance. As of March 31, 2022, the Company's CODM was the Company's Chief Executive Officer, and the Company concluded that it has one reportable segment, Advanced Purification Technologies ("APT"). Given the wind-down of Tinuum Group and Tinuum Services and the impact on the Company's financial statements, the Company determined the historical RC segment no longer met the qualitative or quantitative criteria to be considered a reporting segment under U.S. GAAP. As a result, including the method in which the CODM allocates resources, beginning January 1, 2022, the Company determined that it had one reportable segment, and therefore has removed its segment disclosures for this Quarterly Report. |
New Accounting Standards | In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in ASU 2016-13 replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. ASU 2016-13 is effective for "smaller reporting companies" (as defined by the Securities and Exchange Commission) for fiscal years beginning after December 15, 2022, including interim periods within those years, and must be adopted under a modified retrospective method approach. The Company intends to adopt ASU 2016-13 effective January 1, 2023 and is currently evaluating the provisions of this guidance and assessing the impact on its financial statements and disclosures. The Company does not believe this standard will have a material impact on its financial statements and disclosures. |
Fair Value of Financial Instruments | The carrying amounts of financial instruments, including cash, cash equivalents and restricted cash, accounts receivable, accounts payable and accrued expenses, approximate fair value due to the short maturity of these instruments. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculations of basic and diluted (loss) earnings per share: Three Months Ended March 31, (in thousands, except per share amounts) 2022 2021 Net (loss) income $ (3,033) $ 13,737 Basic weighted-average common shares outstanding 18,344 18,166 Add: dilutive effect of equity instruments — 108 Diluted weighted-average shares outstanding 18,344 18,274 (Loss) earnings per share - basic $ (0.17) $ 0.76 (Loss) earnings per share - diluted $ (0.17) $ 0.75 |
Acquisition of Marshall Mine (T
Acquisition of Marshall Mine (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Assets and Liabilities | The following tables summarize the assets and liabilities of Marshall Mine, LLC and their classification in the Company's Condensed Consolidated Balance Sheets: As of (in thousands) March 31, 2022 December 31, 2021 Balance sheet component Cash $ 169 $ 914 Current assets Norit receivable, short-term — 2,056 Current assets Property and equipment, net 1,861 1,968 Non-current assets Norit receivable, long-term — 6,846 Non-current assets Restricted cash 10,000 10,027 Non-current assets Upfront customer consideration 6,855 6,982 Non-current assets $ 18,885 $ 28,793 Accounts payable and accrued liabilities $ 105 $ 1,065 Current liabilities Asset retirement obligation, short-term 29 1,775 Current liabilities Asset retirement obligation, long-term 4,623 4,546 Non-current liabilities $ 4,757 $ 7,386 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The Company's operating and finance lease right-of-use ("ROU") assets and liabilities as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): As of Leases March 31, 2022 December 31, 2021 Operating Leases Operating lease right-of-use assets, net of accumulated amortization (1) $ 8,754 $ 6,000 Operating lease obligations, current $ 2,797 $ 2,157 Long-term operating lease obligations 6,218 4,178 Total operating lease obligation $ 9,015 $ 6,335 Finance Leases Finance lease right-of-use assets, net of accumulated amortization (2) $ 1,602 $ 1,743 Finance lease obligations, current $ 957 $ 1,011 Long-term finance lease obligations 2,955 3,152 Total finance lease obligations $ 3,912 $ 4,163 (1) Operating lease ROU assets are reported net of accumulated amortization of $2.3 million and $1.9 million as of March 31, 2022 and December 31, 2021, respectively. (2) Finance lease ROU assets are reported net of accumulated amortization of $1.3 million and $1.1 million as of March 31, 2022 and December 31, 2021, respectively. Lease financial information as of and for the three months ended March 31, 2022 and 2021 is provided in the following table: Three Months Ended March 31, (in thousands) 2022 2021 Finance lease cost: Amortization of right-of-use assets $ 141 $ 174 Interest on lease liabilities 78 79 Operating lease cost 806 459 Short-term lease cost 243 567 Variable lease cost (1) 9 9 Total lease cost $ 1,277 $ 1,288 Other Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases $ 78 $ 79 Operating cash flows for operating leases $ 738 $ 575 Financing cash flows for finance leases $ 226 $ 315 Right-of-use assets obtained in exchange for new operating lease liabilities $ 3,418 $ 2,679 Weighted-average remaining lease term - finance leases 2.7 years 3.3 years Weighted-average remaining lease term - operating leases 4.4 years 1.6 years Weighted-average discount rate - finance leases 6.29 % 6.18 % Weighted-average discount rate - operating leases 5.99 % 8.46 % (1) Primarily includes common area maintenance, property taxes and insurance payable to lessors. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Accounts Receivable | The following table shows the components of the Company's Receivables, net: As of (in thousands) March 31, 2022 December 31, 2021 Trade receivables, net $ 12,987 $ 10,476 Other receivables 21 — Norit Receivable - current — 2,146 Total Receivable, net $ 13,008 $ 12,622 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table summarizes the Company's inventories recorded at the lower of average cost or net realizable value as of March 31, 2022 and December 31, 2021: As of (in thousands) March 31, 2022 December 31, 2021 Product inventory, net $ 5,706 $ 4,901 Raw material inventory 4,574 2,949 $ 10,280 $ 7,850 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets and Other assets | The following table summarizes the components of Prepaid expenses and other assets and Other long-term assets, net as presented in the Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Prepaid expenses and other assets: Prepaid expenses $ 3,102 $ 2,571 Prepaid income taxes and income tax refunds 2,899 2,782 Other 1,386 1,308 $ 7,387 $ 6,661 Other long-term assets, net: Right of use assets, operating leases, net $ 8,754 $ 6,000 Upfront Customer Consideration 6,855 6,982 Mine development costs, net 5,340 5,330 Spare parts, net 4,243 4,598 Mine reclamation asset, net 1,717 1,742 Highview Investment 552 552 Other 1,452 1,193 Norit Receivable — 6,846 $ 28,913 $ 33,243 |
Schedule of Other Liabilities | The following table details the components of Other current liabilities and Other long-term liabilities as presented in the Condensed Consolidated Balance Sheets: As of (in thousands) March 31, December 31, Other current liabilities: Current portion of operating lease obligations $ 2,797 $ 2,157 Current portion of mine reclamation liability 29 1,775 Income and other taxes payable 888 807 Deferred revenue 268 — Other 570 385 $ 4,552 $ 5,124 Other long-term liabilities: Mine reclamation liabilities $ 8,317 $ 8,184 Operating lease obligations, long-term 6,218 4,178 Deferred revenue, long-term 935 — $ 15,470 $ 12,362 |
Schedule of Change in Asset Retirement Obligation | The Mine reclamation liability related to the Five Forks Mine is included in Other long-term liabilities. The Mine reclamation liability related to Marshall Mine is included in Other current liabilities and Other long-term liabilities. The Mine reclamation liabilities represent AROs and activity for the three months ended March 31, 2022 and year ended December 31, 2021 was as follows: As of (in thousands) March 31, 2022 December 31, 2021 Asset retirement obligations, beginning of period $ 9,959 $ 21,447 Accretion 157 1,102 Liabilities settled (1,770) (10,010) Changes due to scope and timing of reclamation (1) — (2,580) Asset retirement obligations, end of period 8,346 9,959 Less current portion 29 1,775 Asset retirement obligations, long-term $ 8,317 $ 8,184 (1) As of June 30, 2021 and December 31, 2021, the Company revised its estimate of future obligations owed for the reclamation of the Marshall Mine primarily based on scope reductions related to future reclamation requirements. As a result, the Company reduced the Marshall Mine ARO by $2.7 million and recorded a corresponding gain on change in estimate of $2.7 million for the year ended December 31, 2021. |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table summarizes the results of operations of Tinuum Group: Three Months Ended March 31, (in thousands) 2022 2021 Gross profit $ 964 $ 2,675 Operating, selling, general and administrative expenses 3,197 13,802 Loss from operations (2,233) (11,127) Other income (expenses), net 501 853 (Income) loss attributable to noncontrolling interest (294) 35,578 Net (loss) income available to members $ (2,026) $ 25,304 ADES equity earnings from Tinuum Group $ 1,012 $ 16,362 The following tables present the Company's investment balance, equity earnings and cash distributions in excess of the investment balance, if any, for the three months ended March 31, 2022 and 2021 ( in thousands ): Description Date(s) Investment balance ADES equity earnings Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2021 $ — $ — $ — $ (21,779) ADES proportionate share of loss from Tinuum Group First Quarter (861) (861) — — Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) First Quarter (21,779) (21,779) — 21,779 Cash distributions from Tinuum Group First Quarter (1,012) — 1,012 — Adjustment for current year cash distributions in excess of investment balance First Quarter 23,652 23,652 — (23,652) Total investment balance, equity earnings and cash distributions 3/31/2022 $ — $ 1,012 $ 1,012 $ (23,652) Description Date(s) Investment balance ADES equity earnings Cash distributions Memorandum Account: Cash distributions and equity earnings in (excess) of investment balance Beginning balance 12/31/2020 $ 3,387 $ — $ — $ — ADES proportionate share of income from Tinuum Group First Quarter 10,755 10,755 — — Cash distributions from Tinuum Group First Quarter (19,749) — 19,749 — Adjustment for current year cash distributions in excess of investment balance First Quarter 5,607 5,607 — (5,607) Total investment balance, equity earnings and cash distributions 3/31/2021 $ — $ 16,362 $ 19,749 $ (5,607) The following table summarizes the results of operations of Tinuum Services: Three Months Ended March 31, (in thousands) 2022 2021 Gross profit (loss) $ 968 $ (18,522) Operating, selling, general and administrative expenses 2,545 54,366 Loss from operations (1,577) (72,888) Other income (expenses), net 894 (427) Loss attributable to noncontrolling interest 323 77,215 Net (loss) income $ (360) $ 3,900 ADES equity (loss) earnings from Tinuum Services $ (180) $ 1,950 The following table details the carrying value of the Company's respective equity method investments included in the Equity method investments line item on the Condensed Consolidated Balance Sheets and indicates the Company's maximum exposure to loss: As of (in thousands) March 31, December 31, Equity method investment in Tinuum Services $ 711 $ 2,391 Equity method investment in Tinuum Group — — Total equity method investments $ 711 $ 2,391 The following table details the components of the Company's respective equity method investments included in the "Earnings from equity method investments" line item on the Condensed Consolidated Statements of Operations: Three Months Ended March 31, (in thousands) 2022 2021 Earnings from Tinuum Group $ 1,012 $ 16,362 (Loss) earnings from Tinuum Services (180) 1,950 Earnings from other 1 — Earnings from equity method investments $ 833 $ 18,312 The following table details the components of the cash distributions from the Company's respective equity method investments included as a component of cash flows from operating activities and investing activities in the Condensed Consolidated Statements of Cash Flows. Distributions from equity method investees are reported in the Condensed Consolidated Statements of Cash Flows as "Distributions from equity method investees, return on investment" as a component of cash flows from operations until such time as the carrying value in an equity method investee company is reduced to zero. Thereafter, such distributions are reported as "Distributions from equity method investees in excess of cumulative earnings" as a component of cash flows from investing activities. Three Months Ended March 31, (in thousands) 2022 2021 Distributions from equity method investees, return on investment Tinuum Services $ 1,501 $ 3,502 Tinuum Group — 14,142 $ 1,501 $ 17,644 Distributions from equity method investees in excess of investment basis Tinuum Group $ 1,012 $ 5,607 Other 1 — $ 1,013 $ 5,607 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Allocation of Compensation Expense | Total stock-based compensation expense for the three months ended March 31, 2022 and 2021 was as follows: Three Months Ended March 31, (in thousands) 2022 2021 RSA expense $ 427 $ 407 PSU expense 37 14 Total stock-based compensation expense $ 464 $ 421 |
Schedule of Unrecognized Compensation Cost | The amount of unrecognized compensation cost as of March 31, 2022, and the expected weighted-average period over which the cost will be recognized is as follows: As of March 31, 2022 (in thousands, expect years) Unrecognized Compensation Cost Expected Weighted- RSA expense $ 3,625 2.40 PSU expense 245 2.07 Total unrecognized stock-based compensation expense $ 3,870 2.34 |
Summary of Restricted Stock Activity | A summary of RSA activity under the Company's various stock compensation plans for the three months ended March 31, 2022 is presented below: Restricted Stock Weighted-Average Grant Date Fair Value Non-vested at January 1, 2022 531,623 $ 5.94 Granted 336,079 $ 6.40 Vested (217,973) $ 6.47 Forfeited (12,337) $ 6.05 Non-vested at March 31, 2022 637,392 $ 6.00 |
Summary of Performance Shares Units | A summary of PSU activity for the three months ended March 31, 2022 is presented below: Units Weighted-Average Aggregate Intrinsic Value (in thousands) Weighted-Average PSU's outstanding, January 1, 2022 88,026 $ 6.65 Granted 60,565 9.59 Vested / Settled — — Forfeited / Canceled — — PSU's outstanding, March 31, 2022 148,591 $ 7.85 $ 924 2.07 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense and Effective Tax Rates | For the three months ended March 31, 2022 and 2021, the Company's income tax expense and effective tax rates were: Three Months Ended March 31, (in thousands, except for rate) 2022 2021 Income tax expense $ — $ 4,489 Effective tax rate — % 25 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values of Remaining Financial Instruments | The following table provides the estimated fair values of the remaining financial instruments: As of March 31, 2022 As of December 31, 2021 (in thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Instruments: Highview Investment $ 552 $ 552 $ 552 $ 552 Highview Obligation $ 221 $ 221 $ 227 $ 227 |
Basis of Presentation - Calcula
Basis of Presentation - Calculations of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Net (loss) income | $ (3,033) | $ 13,737 |
Basic weighted-average common shares outstanding (in shares) | 18,344 | 18,166 |
Add: dilutive effect of equity instruments (in shares) | 0 | 108 |
Diluted weighted-average shares outstanding (in shares) | 18,344 | 18,274 |
(Loss) earnings per share - basic (in dollars per share) | $ (0.17) | $ 0.76 |
(Loss) earnings per share - diluted (in dollars per share) | $ (0.17) | $ 0.75 |
Total shares excluded from diluted shares outstanding (in shares) | 300 | 100 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022numberOfSegments | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Customer Supply Agreement (Deta
Customer Supply Agreement (Details) - USD ($) $ in Millions | Feb. 25, 2022 | Sep. 30, 2020 |
Additional Term of Contract [Abstract] | ||
Term of contract | 15 years | |
Additional term of contract | 10 years | |
Period of termination notice | 3 years | |
Reclamation reimbursements | $ 8.5 | $ 10.2 |
Estimated credit risk | 1.50% | |
Supply agreement, cash received | 10.6 | |
Reclamation costs | 0.8 | |
Reclamation reimbursement | 9 | |
Loss on reclamation reimbursement | 0.5 | |
Specific capital contributions | $ 1.3 |
Acquisition of Marshall Mine -
Acquisition of Marshall Mine - Additional Information (Details) - USD ($) $ in Thousands | Feb. 25, 2022 | Sep. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Reclamation reimbursements | $ 8,500 | $ 10,200 | ||||
Term of contract | 15 years | |||||
Asset retirement obligation | $ 8,346 | $ 9,959 | $ 21,447 | |||
Amortization of upfront customer consideration | 500 | |||||
Marshall Mine | ||||||
Business Acquisition [Line Items] | ||||||
Asset retirement obligation | $ 4,700 | $ 6,300 | ||||
Marshall Mine | ||||||
Business Acquisition [Line Items] | ||||||
Membership interest | 100.00% | |||||
Term of contract | 15 years | |||||
Marshall Mine | Cabot | ||||||
Business Acquisition [Line Items] | ||||||
Reclamation reimbursements | $ 10,200 | |||||
Term of contract | 13 years |
Acquisition of Marshall Mine _2
Acquisition of Marshall Mine - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Norit receivable, short-term | $ 0 | $ 2,481 |
Property and equipment, net | 30,310 | 30,171 |
Total Assets | 181,571 | 185,436 |
Liabilities | ||
Asset retirement obligation, short-term | 29 | 1,775 |
Asset retirement obligation, long-term | 8,317 | 8,184 |
Total Liabilities | 37,221 | 38,135 |
Marshall Mine | ||
ASSETS | ||
Cash | 169 | 914 |
Norit receivable, short-term | 0 | 2,056 |
Property and equipment, net | 1,861 | 1,968 |
Norit receivable, long-term | 0 | 6,846 |
Restricted cash | 10,000 | 10,027 |
Upfront customer consideration | 6,855 | 6,982 |
Total Assets | 18,885 | 28,793 |
Liabilities | ||
Accounts payable and accrued liabilities | 105 | 1,065 |
Asset retirement obligation, short-term | 29 | 1,775 |
Asset retirement obligation, long-term | 4,623 | 4,546 |
Total Liabilities | $ 4,757 | $ 7,386 |
Leases - Balance Sheets (Detail
Leases - Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Right of use assets, operating leases, net | $ 8,754 | $ 6,000 |
Operating lease obligations, current | 2,797 | 2,157 |
Operating lease obligations, long-term | 6,218 | 4,178 |
Total operating lease obligation | 9,015 | 6,335 |
Finance Leases | ||
Total finance lease right-of-use assets | 1,602 | 1,743 |
Finance lease obligations, current | 957 | 1,011 |
Long-term finance lease obligations | 2,955 | 3,152 |
Total finance lease obligations | 3,912 | 4,163 |
Operating lease, accumulated amortization | 2,300 | 1,900 |
Finance Lease, accumulated amortization | $ 1,300 | $ 1,100 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets, net | Other long-term assets, net | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities | |
Operating lease, expense | $ 1.1 | $ 1 | |
General and Administrative Expense | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, expense | 0.1 | 0.1 | |
Consumables | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, expense | $ 1 | $ 0.9 |
Leases - Lease Liabilities (Det
Leases - Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease, cost | ||
Amortization of right-of-use assets | $ 141 | $ 174 |
Interest on lease liabilities | 78 | 79 |
Operating lease cost | 806 | 459 |
Short-term lease cost | 243 | 567 |
Variable lease cost | 9 | 9 |
Total lease cost | 1,277 | 1,288 |
Operating cash flows for finance leases | 78 | 79 |
Operating cash flows for operating leases | 738 | 575 |
Financing cash flows for finance leases | 226 | 315 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 3,418 | $ 2,679 |
Weighted-average remaining lease term - finance leases | 2 years 8 months 12 days | 3 years 3 months 18 days |
Weighted-average remaining lease term - operating leases | 4 years 4 months 24 days | 1 year 7 months 6 days |
Weighted-average discount rate - finance leases | 6.29% | 6.18% |
Weighted-average discount rate - operating leases | 5.99% | 8.46% |
Revenues - Narrative (Details)
Revenues - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Collection terms | Credit terms are generally net 30 from the date of invoice. |
Revenues - Receivables (Details
Revenues - Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Other receivables | $ 21 | $ 0 |
Receivables, net | 13,008 | 12,622 |
Norit Litigation | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | 0 | 2,146 |
Trade Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivables, net | $ 12,987 | $ 10,476 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | Advanced Purification Technologies | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Percent of revenue generated | 11.00% | 19.00% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Product inventory, net | $ 5,706 | $ 4,901 |
Raw material inventory | 4,574 | 2,949 |
Inventories | $ 10,280 | $ 7,850 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Mar. 31, 2022USD ($)entity | Dec. 31, 2021USD ($) | Jun. 07, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||
Surety bond amount | $ 7,500,000 | $ 7,500,000 | $ 16,600,000 |
Restricted cash, long-term | $ 10,000,000 | $ 10,027,000 | |
Tinuum Group, LLC | |||
Related Party Transaction [Line Items] | |||
Number of entities affiliated with related parties | entity | 2 | ||
Limited guarantees, percent | 50.00% | ||
Liabilities or expense | $ 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid expenses and other assets and Other assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Prepaid expenses and other assets: | ||
Prepaid expenses | $ 3,102 | $ 2,571 |
Prepaid income taxes and income tax refunds | 2,899 | 2,782 |
Other | 1,386 | 1,308 |
Other current assets | 7,387 | 6,661 |
Other long-term assets, net: | ||
Right of use assets, operating leases, net | 8,754 | 6,000 |
Upfront Customer Consideration | 6,855 | 6,982 |
Mine development costs, net | 5,340 | 5,330 |
Spare parts, net | 4,243 | 4,598 |
Mine reclamation asset, net | 1,717 | 1,742 |
Highview Investment | 552 | 552 |
Other | 1,452 | 1,193 |
Norit Receivable | 0 | 6,846 |
Total | $ 28,913 | $ 33,243 |
Supplemental Financial Inform_4
Supplemental Financial Information - Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Other current liabilities: | |||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | Other current liabilities |
Current portion of operating lease obligations | $ 2,797 | $ 2,157 | |
Current portion of mine reclamation liability | 29 | 1,775 | |
Income and other taxes payable | 888 | 807 | |
Deferred revenue | 268 | 0 | |
Other | 570 | 385 | |
Other current liabilities | $ 4,552 | $ 5,124 | |
Other long-term liabilities: | |||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities | |
Mine reclamation liabilities | $ 8,317 | $ 8,184 | |
Operating lease obligations, long-term | 6,218 | 4,178 | |
Deferred revenue, long-term | 935 | 0 | |
Other long-term liabilities | $ 15,470 | $ 12,362 |
Supplemental Financial Inform_5
Supplemental Financial Information - Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning of period | $ 9,959 | $ 21,447 |
Accretion | 157 | 1,102 |
Liabilities settled | (1,770) | (10,010) |
Changes due to amount and timing of reclamation | 0 | (2,580) |
Asset retirement obligations, end of period | 8,346 | 9,959 |
Less current portion | 29 | 1,775 |
Asset retirement obligations, long-term | 8,317 | 8,184 |
Property, Plant and Equipment [Line Items] | ||
Gain on change in estimate, asset retirement obligation | 2,700 | |
Marshall Mine | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation, beginning of period | 6,300 | |
Asset retirement obligations, end of period | $ 4,700 | 6,300 |
Property, Plant and Equipment [Line Items] | ||
Gain on change in estimate, asset retirement obligation | $ 2,700 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Earnings from equity method investments | $ 833,000 | $ 18,312,000 | ||
Equity method investments | $ 711,000 | $ 2,391,000 | ||
Tinuum Group, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percent | 42.50% | 42.50% | ||
Earnings from equity method investments | $ 1,012,000 | 16,362,000 | ||
Equity method investments | $ 0 | 0 | $ 0 | $ 3,387,000 |
Tinuum Services, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percent | 50.00% | 50.00% | ||
Earnings from equity method investments | $ (180,000) | 1,950,000 | ||
Equity method investments | 711,000 | $ 2,391,000 | ||
Equity Method Investment | Tinuum Group, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Loss attributable to noncontrolling interest | 294,000 | (35,578,000) | ||
Equity Method Investment | Tinuum Services, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Loss attributable to noncontrolling interest | $ (323,000) | $ (77,215,000) |
Equity Method Investments - Res
Equity Method Investments - Results of Operations and Summary of Distributions (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||
Operating, selling, general and administrative expenses | $ 29,737,000 | $ 22,277,000 | ||
Net (loss) income | (3,033,000) | 13,737,000 | ||
ADES equity earnings | 833,000 | 18,312,000 | ||
Equity method investments | 711,000 | $ 2,391,000 | ||
Distributions from equity method investees, return on investment | 1,501,000 | 17,644,000 | ||
Distributions from equity method investees in excess of investment basis | 1,013,000 | 5,607,000 | ||
Tinuum Group, LLC | ||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||
ADES equity earnings | 1,012,000 | 16,362,000 | ||
Equity method investments | 0 | 0 | 0 | $ 3,387,000 |
Distributions from equity method investees, return on investment | 0 | 14,142,000 | ||
Distributions from equity method investees in excess of investment basis | 1,012,000 | 5,607,000 | ||
Tinuum Services, LLC | ||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||
ADES equity earnings | (180,000) | 1,950,000 | ||
Equity method investments | 711,000 | $ 2,391,000 | ||
Distributions from equity method investees, return on investment | 1,501,000 | 3,502,000 | ||
Earnings from other | ||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||
ADES equity earnings | 1,000 | 0 | ||
Distributions from equity method investees in excess of investment basis | 1,000 | 0 | ||
Equity Method Investment | Tinuum Group, LLC | ||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||
Gross profit (loss) | 964,000 | 2,675,000 | ||
Operating, selling, general and administrative expenses | 3,197,000 | 13,802,000 | ||
Loss from operations | (2,233,000) | (11,127,000) | ||
Other income (expenses), net | 501,000 | 853,000 | ||
Loss attributable to noncontrolling interest | (294,000) | 35,578,000 | ||
Net (loss) income | (2,026,000) | 25,304,000 | ||
Equity Method Investment | Tinuum Services, LLC | ||||
Equity Method Investment, Financial Statement, Reported Amounts [Abstract] | ||||
Gross profit (loss) | 968,000 | (18,522,000) | ||
Operating, selling, general and administrative expenses | 2,545,000 | 54,366,000 | ||
Loss from operations | (1,577,000) | (72,888,000) | ||
Other income (expenses), net | 894,000 | (427,000) | ||
Loss attributable to noncontrolling interest | 323,000 | 77,215,000 | ||
Net (loss) income | $ (360,000) | $ 3,900,000 |
Equity Method Investments - Rol
Equity Method Investments - Rollforward of CCS Investment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity Method Investments [Roll Forward] | ||
Beginning balance | $ 2,391,000 | |
Total investment balance, equity earnings (loss) and cash distributions | 711,000 | |
Tinuum Group, LLC | ||
Equity Method Investments [Roll Forward] | ||
Beginning balance | 0 | $ 3,387,000 |
ADES proportionate share of loss from Tinuum Group | (861,000) | 10,755,000 |
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 21,779,000 | |
Cash distributions from Tinuum Group | 1,012,000 | 19,749,000 |
Adjustment for current year cash distributions in excess of investment balance | 23,652,000 | 5,607,000 |
Total investment balance, equity earnings (loss) and cash distributions | 0 | 0 |
Tinuum Group, LLC | ADES equity earnings | ||
Equity Method Investments [Roll Forward] | ||
Beginning balance | 0 | 0 |
ADES proportionate share of loss from Tinuum Group | (861,000) | 10,755,000 |
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 21,779,000 | |
Cash distributions from Tinuum Group | 0 | 0 |
Adjustment for current year cash distributions in excess of investment balance | 23,652,000 | 5,607,000 |
Total investment balance, equity earnings (loss) and cash distributions | 1,012,000 | 16,362,000 |
Tinuum Group, LLC | Cash distributions | ||
Equity Method Investments [Roll Forward] | ||
Beginning balance | 0 | 0 |
ADES proportionate share of loss from Tinuum Group | 0 | 0 |
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 0 | |
Cash distributions from Tinuum Group | 1,012,000 | 19,749,000 |
Adjustment for current year cash distributions in excess of investment balance | 0 | 0 |
Total investment balance, equity earnings (loss) and cash distributions | 1,012,000 | 19,749,000 |
Tinuum Group, LLC | Memorandum Account: Cash distributions and equity loss in (excess) of investment balance | ||
Equity Method Investments [Roll Forward] | ||
Beginning balance | 21,779,000 | 0 |
ADES proportionate share of loss from Tinuum Group | 0 | 0 |
Recovery of prior cash distributions in excess of investment balance (prior to cash distributions) | 21,779,000 | |
Cash distributions from Tinuum Group | 0 | 0 |
Adjustment for current year cash distributions in excess of investment balance | 23,652,000 | 5,607,000 |
Total investment balance, equity earnings (loss) and cash distributions | $ 23,652,000 | $ 5,607,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Mar. 31, 2022 | Nov. 30, 2019 | Nov. 30, 2018 | May 05, 2017 |
Maximum | ||||
Class of Stock [Line Items] | ||||
Requirement to own shares outstanding as percent | 4.99% | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Remaining authorized amount | $ 7,000,000 | |||
Authorized incremental amount | $ 7,100,000 | |||
Common Stock | Maximum | ||||
Class of Stock [Line Items] | ||||
Authorized amount | $ 20,000,000 |
Stock-Based Compensation - Allo
Stock-Based Compensation - Allocation of Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 464 | $ 421 |
Restricted stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 427 | 407 |
Performance share units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 37 | $ 14 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Unrecognized Compensation Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 3,870 |
Expected Weighted-Average Period of Recognition (in years) | 2 years 4 months 2 days |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 3,625 |
Expected Weighted-Average Period of Recognition (in years) | 2 years 4 months 24 days |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 245 |
Expected Weighted-Average Period of Recognition (in years) | 2 years 25 days |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Non-vested Restricted Stock Activity (Details) - Restricted stock awards | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of SAR's Outstanding and Exercisable | |
Non-vested shares, Beginning balance (in shares) | shares | 531,623 |
Granted (in shares) | shares | 336,079 |
Vested (in shares) | shares | (217,973) |
Forfeited (in shares) | shares | (12,337) |
Non-vested shares, Ending balance (in shares) | shares | 637,392 |
Units | |
Non-vested shares, Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 5.94 |
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 6.40 |
Vested in period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 6.47 |
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 6.05 |
Non-vested shares, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 6 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Non-vested PSUs (Details) - Performance share units $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Number of SAR's Outstanding and Exercisable | |
Non-vested shares, Beginning balance (in shares) | shares | 88,026 |
Granted (in shares) | shares | 60,565 |
Vested / Settled (in shares) | shares | 0 |
Forfeited / Canceled (in shares) | shares | 0 |
Non-vested shares, Ending balance (in shares) | shares | 148,591 |
Units | |
Non-vested shares, Weighted-Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 6.65 |
Granted, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 9.59 |
Vested / Settled in period, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Forfeited, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | 0 |
Non-vested shares, Weighted-Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 7.85 |
Outstanding, Aggregate Intrinsic Value | $ | $ 924 |
Outstanding, Weighted Average Remaining Contractual Term (in years) | 2 years 25 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 0 | $ 4,489 |
Effective tax rate | 0.00% | 25.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | Mar. 31, 2022USD ($)numberOfFinancialInstitutions | Dec. 31, 2021USD ($)numberOfFinancialInstitutions |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Highview Investment | $ 552 | $ 552 |
Recurring Basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of instruments held | numberOfFinancialInstitutions | 0 | 0 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Highview Investment | $ 552 | $ 552 |
Highview Obligation | 221 | 227 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Highview Investment | 552 | 552 |
Highview Obligation | $ 221 | $ 227 |