Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | U.S. WELL SERVICES, INC. | |
Entity Central Index Key | 0001670349 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38025 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-1847117 | |
Entity Address, Address Line One | 1360 Post Oak Boulevard | |
Entity Address, Address Line Two | Suite 1800 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 832 | |
Local Phone Number | 562-3730 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 71,766,358 | |
Title of each class | CLASS A COMMON SHARES $0.0001, par value | |
Trading Symbol | USWS | |
Name of each exchange on which registered | NASDAQ | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,302,936 | |
Warrants [Member] | ||
Document Information [Line Items] | ||
Title of each class | WARRANTS | |
Trading Symbol | USWSW | |
Name of each exchange on which registered | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 519 | $ 33,794 |
Restricted cash | 519 | 7,610 |
Accounts receivable (net of allowance for doubtful accounts of $9,000 and $22 as of September 30, 2020 and December 31, 2019, respectively) | 36,416 | 79,542 |
Inventory, net | 7,321 | 9,052 |
Prepaids and other current assets | 10,443 | 13,332 |
Total current assets | 55,218 | 143,330 |
Property and equipment, net | 242,810 | 441,610 |
Intangible assets, net | 13,708 | 21,826 |
Goodwill | 4,971 | 4,971 |
Deferred financing costs, net | 1,196 | 1,045 |
TOTAL ASSETS | 317,903 | 612,782 |
CURRENT LIABILITIES: | ||
Accounts payable | 35,745 | 70,170 |
Accrued expenses and other current liabilities | 12,142 | 40,481 |
Notes payable | 1,867 | 8,068 |
Current portion of long-term equipment financing | 3,473 | 5,564 |
Capital lease obligation | 6,201 | 10,474 |
Current portion of long-term debt | 6,250 | |
Total current liabilities | 59,428 | 141,007 |
Long-term equipment financing | 10,243 | 10,501 |
Long-term debt | 250,831 | 274,391 |
Other long-term liabilities | 1,598 | 215 |
TOTAL LIABILITIES | 322,100 | 426,114 |
Commitments and contingencies (NOTE 16) | ||
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Additional paid in capital | 240,547 | 248,302 |
Accumulated deficit | (317,642) | (111,201) |
Total stockholders' equity (deficit) attributable to U.S. Well Services, Inc. | (77,088) | 137,107 |
Noncontrolling interest | 10,633 | |
Total Stockholders' Equity (Deficit) | (77,088) | 147,740 |
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY (DEFICIT) | 317,903 | 612,782 |
Series A Convertible Redeemable Preferred Stock [Member] | ||
MEZZANINE EQUITY | ||
Redeemable Convertible Preferred Stock | 50,907 | 38,928 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Redeemable Convertible Preferred Stock | 50,907 | 38,928 |
Series B Convertible Redeemable Preferred Stock [Member] | ||
MEZZANINE EQUITY | ||
Redeemable Convertible Preferred Stock | 21,984 | |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Redeemable Convertible Preferred Stock | 21,984 | |
Common Class A [Member] | ||
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common stock | 7 | 5 |
Total Stockholders' Equity (Deficit) | $ 7 | 5 |
Common Class B [Member] | ||
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common stock | 1 | |
Total Stockholders' Equity (Deficit) | $ 1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts | $ 9,000 | $ 22 |
Series A Convertible Redeemable Preferred Stock [Member] | ||
Mezzanine Equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine Equity, authorized | 55,000 | 55,000 |
Mezzanine Equity, issued | 52,000 | 55,000 |
Mezzanine Equity, outstanding | 52,000 | 55,000 |
Mezzanine Equity, liquidation preference | $ 61,006 | $ 59,050 |
Common Class A [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 71,413,883 | 62,857,624 |
Common stock, outstanding | 71,413,883 | 62,857,624 |
Common Class B [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 2,302,936 | 5,500,692 |
Common stock, outstanding | 2,302,936 | 5,500,692 |
Series B Convertible Redeemable Preferred Stock [Member] | ||
Mezzanine Equity, par value | $ 0.0001 | $ 0.0001 |
Mezzanine Equity, authorized | 22,050 | 0 |
Mezzanine Equity, issued | 22,050 | 0 |
Mezzanine Equity, outstanding | 22,050 | 0 |
Mezzanine Equity, liquidation preference | $ 23,398 | $ 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | $ 44,042 | $ 130,884 | $ 195,914 | $ 422,075 |
Costs and expenses: | ||||
Depreciation and amortization | 16,393 | 39,723 | 65,759 | 117,888 |
Selling, general and administrative expenses | 6,098 | 8,216 | 30,376 | 24,474 |
Impairment of long-lived assets | 147,543 | |||
Loss on disposal of assets | 755 | 4,976 | 5,852 | 15,884 |
Loss from operations | (10,361) | (12,823) | (198,937) | (44,012) |
Interest expense, net | (5,744) | (8,449) | (19,357) | (21,384) |
Loss on extinguishment of debt | (12,558) | |||
Other income | 30 | 62 | 81 | 1,774 |
Loss before income taxes | (16,075) | (21,210) | (218,213) | (76,180) |
Income tax expense (benefit) | (87) | 39 | (824) | 469 |
Net loss | (15,988) | (21,249) | (217,389) | (76,649) |
Net loss attributable to noncontrolling interest | (51) | (4,280) | (10,948) | (15,929) |
Net loss attributable to U.S. Well Services, Inc. | (15,937) | (16,969) | (206,441) | (60,720) |
Deemed and imputed dividends on Series A preferred stock | (467) | (4,406) | (11,220) | (5,966) |
Net loss attributable to U.S. Well Services, Inc. common stockholders | $ (18,939) | $ (23,045) | $ (224,458) | $ (69,016) |
Loss per common share (See Note 12): | ||||
Basic and diluted | $ (0.28) | $ (0.45) | $ (3.46) | $ (1.36) |
Weighted average common shares outstanding: | ||||
Basic and diluted | 66,666,994 | 50,249,606 | 63,430,713 | 49,182,110 |
Series A Convertible Redeemable Preferred Stock [Member] | ||||
Costs and expenses: | ||||
Dividends accrued on preferred stock | $ (1,854) | $ (1,670) | $ (5,450) | $ (2,330) |
Series B Convertible Redeemable Preferred Stock [Member] | ||||
Costs and expenses: | ||||
Dividends accrued on preferred stock | (681) | (1,347) | ||
Service [Member] | ||||
Costs and expenses: | ||||
Cost of services (excluding depreciation and amortization) | $ 31,157 | $ 90,792 | $ 145,321 | $ 307,841 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (217,389) | $ (76,649) |
Adjustments to reconcile net loss to cash provided by operating activities: | ||
Depreciation and amortization | 65,759 | 117,888 |
Impairment of long-lived assets | 147,543 | |
Provision for losses on accounts receivable | 9,031 | 307 |
Provision for losses on inventory obsolescence | 603 | |
Loss on disposal of assets | 5,852 | 15,884 |
Amortization of discount on debt | 2,355 | 1,373 |
Deferred financing costs amortization | 1,017 | 1,049 |
Loss on extinguishment of debt | 12,558 | |
Share-based compensation expense | 4,519 | 5,672 |
Changes in assets and liabilities: | ||
Accounts receivable | 34,096 | (50,331) |
Inventory | 1,128 | (2,036) |
Prepaids and other current assets | 5,979 | 1,795 |
Accounts payable | (22,375) | 2,243 |
Accrued liabilities | (8,360) | 1,487 |
Accrued interest | (10,669) | 11,090 |
Net cash provided by operating activities | 19,089 | 42,330 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (43,948) | (194,114) |
Proceeds from sale of property and equipment | 15,778 | 706 |
Net cash used in investing activities | (28,170) | (193,408) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility | 25,723 | 49,134 |
Repayment of revolving credit facility | (51,034) | (65,000) |
Proceeds from issuance of long-term debt | 10,000 | 285,000 |
Repayments of long-term debt | (2,500) | (75,000) |
Payment of fees related to debt extinguishment | (6,560) | |
Proceeds from issuance of note payable | 9,117 | |
Repayments of notes payable | (6,201) | (4,560) |
Repayments of amounts under equipment financing | (2,349) | (66,872) |
Principal payments under finance lease obligation | (4,272) | (12,494) |
Proceeds from issuance of preferred stock and warrants, net | 19,596 | 54,524 |
Deferred financing costs | (20,248) | (13,451) |
Net cash provided by (used in) financing activities | (31,285) | 153,838 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (40,366) | 2,760 |
Cash and cash equivalents and restricted cash, beginning of period | 41,404 | 30,036 |
Cash and cash equivalents and restricted cash, end of period | 1,038 | 32,796 |
Supplemental cash flow disclosure: | ||
Interest paid | 25,865 | 7,853 |
Income tax paid | 144 | 353 |
Non-cash investing and financing activities: | ||
Beneficial conversion feature of Series A preferred stock | 20,132 | |
Issuance of warrants to purchase common stock associated with Series A preferred stock offering | 10,720 | |
Conversion of Series A preferred stock to Class A common stock | 4,691 | |
Deemed and imputed dividends on Series A preferred stock | 11,220 | 5,966 |
Changes in accrued and unpaid capital expenditures | 12,149 | 13,045 |
Assets under finance lease obligations | 10,451 | |
Financed equipment purchases | 66,342 | |
Common Class A [Member] | ||
Non-cash investing and financing activities: | ||
Issuance of stock to senior secured term loan lenders | 1,438 | |
Series B Convertible Redeemable Preferred Stock [Member] | ||
Non-cash investing and financing activities: | ||
Issuance of stock to senior secured term loan lenders | 1,050 | |
Dividends accrued on preferred stock | 1,347 | |
Series A Convertible Redeemable Preferred Stock [Member] | ||
Non-cash investing and financing activities: | ||
Dividends accrued on preferred stock | $ 5,450 | $ 2,330 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Class A [Member] | Common Class B [Member] | Additional Paid in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Noncontrolling Interests [Member] | Noncontrolling Interests [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] |
Balance at Dec. 31, 2018 | $ 240,349 | $ 122 | $ 5 | $ 1 | $ 204,928 | $ (17,383) | $ 95 | $ 52,798 | $ 27 |
Balance (in shares) at Dec. 31, 2018 | 49,254,760 | 13,937,332 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201409Member | ||||||
Exercise of warrants (in shares) | 2,925,712 | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | 161,932 | (161,932) | |||||||
Restricted stock granted to employees (in shares) | 2,218,183 | ||||||||
Class A common stock granted to board members | 418 | 331 | 87 | ||||||
Class A common stock granted to board members (in shares) | 46,875 | ||||||||
Share-based compensation | 5,359 | 4,265 | 1,094 | ||||||
Restricted stock forfeitures (in shares) | (18,687) | ||||||||
Issuance of warrants to purchase common stock associated with preferred stock offering | 10,720 | 10,720 | |||||||
Beneficial conversion feature of Series A preferred stock | 20,132 | 20,132 | |||||||
Deemed and imputed dividends on Series A preferred stock | (5,966) | (5,966) | |||||||
Accrued Series A preferred stock dividends | (2,330) | (2,330) | |||||||
Net loss | (76,649) | (60,720) | (15,929) | ||||||
Balance at Sep. 30, 2019 | 192,155 | $ 5 | $ 1 | 232,080 | (78,008) | 38,077 | |||
Balance (in shares) at Sep. 30, 2019 | 54,588,775 | 13,775,400 | |||||||
Balance at Jun. 30, 2019 | 217,279 | $ 5 | $ 1 | 236,398 | (61,039) | 41,914 | |||
Balance (in shares) at Jun. 30, 2019 | 54,607,462 | 13,775,400 | |||||||
Share-based compensation | 2,201 | 1,758 | 443 | ||||||
Restricted stock forfeitures (in shares) | (18,687) | ||||||||
Deemed and imputed dividends on Series A preferred stock | (4,406) | (4,406) | |||||||
Accrued Series A preferred stock dividends | (1,670) | (1,670) | |||||||
Net loss | (21,249) | (16,969) | (4,280) | ||||||
Balance at Sep. 30, 2019 | 192,155 | $ 5 | $ 1 | 232,080 | (78,008) | 38,077 | |||
Balance (in shares) at Sep. 30, 2019 | 54,588,775 | 13,775,400 | |||||||
Balance at Dec. 31, 2019 | 147,740 | $ 5 | $ 1 | 248,302 | (111,201) | 10,633 | |||
Balance (in shares) at Dec. 31, 2019 | 62,857,624 | 5,500,692 | |||||||
Class A common stock issuance | 1,438 | $ 1 | 1,437 | ||||||
Class A common stock issuance (in shares) | 5,530,022 | ||||||||
Conversion of Class B common stock to Class A common stock | $ 1 | $ (1) | |||||||
Conversion of Class B common stock to Class A common stock (in shares) | 3,197,756 | (3,197,756) | |||||||
Conversion of Series A preferred stock to Class A common stock | 4,691 | 4,691 | |||||||
Conversion of Series A preferred stock to Class A common stock (in shares) | 523,973 | ||||||||
Share-based compensation | 4,519 | 4,204 | 315 | ||||||
Tax withholding related to vesting of share-based compensation | (70) | (70) | |||||||
Tax withholding related to vesting of share-based compensation (in shares) | (154,253) | ||||||||
Restricted stock forfeitures (in shares) | (541,239) | ||||||||
Deemed and imputed dividends on Series A preferred stock | (11,220) | (11,220) | |||||||
Accrued Series A preferred stock dividends | (5,450) | (5,450) | |||||||
Accrued Series B preferred stock dividends | (1,347) | (1,347) | |||||||
Net loss | (217,389) | (206,441) | (10,948) | ||||||
Balance at Sep. 30, 2020 | (77,088) | $ 7 | 240,547 | (317,642) | |||||
Balance (in shares) at Sep. 30, 2020 | 71,413,883 | 2,302,936 | |||||||
Balance at Jun. 30, 2020 | (63,826) | $ 7 | 237,872 | (301,705) | |||||
Balance (in shares) at Jun. 30, 2020 | 68,361,213 | 5,014,897 | |||||||
Class A common stock issuance (in shares) | 400 | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | 2,711,961 | (2,711,961) | |||||||
Conversion of Series A preferred stock to Class A common stock | 4,691 | 4,691 | |||||||
Conversion of Series A preferred stock to Class A common stock (in shares) | 523,973 | ||||||||
Share-based compensation | 1,037 | 986 | 51 | ||||||
Restricted stock forfeitures (in shares) | (183,664) | ||||||||
Deemed and imputed dividends on Series A preferred stock | (467) | (467) | |||||||
Accrued Series A preferred stock dividends | (1,854) | (1,854) | |||||||
Accrued Series B preferred stock dividends | (681) | (681) | |||||||
Net loss | (15,988) | (15,937) | $ (51) | ||||||
Balance at Sep. 30, 2020 | $ (77,088) | $ 7 | $ 240,547 | $ (317,642) | |||||
Balance (in shares) at Sep. 30, 2020 | 71,413,883 | 2,302,936 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | NOTE 1 – DESCRIPTION OF BUSINESS U.S. Well Services, Inc. (the “Company”), f/k/a Matlin & Partners Acquisition Corp (“MPAC”), is a Houston, Texas-based technology-focused oilfield service company focused on hydraulic fracturing for oil and natural gas exploration and production (“E&P”) companies in the United States. The process of hydraulic fracturing involves pumping a pressurized stream of fracturing fluid—typically a mixture of water, chemicals and proppant—into a well casing or tubing in order to cause the underground mineral formation to fracture or crack. Fractures release trapped hydrocarbon particles and provide a conductive channel for the oil or natural gas to flow freely to the wellbore for collection. The propping agent or proppant, becomes lodged in the cracks created by the hydraulic fracturing process, “propping” them open to facilitate the flow of hydrocarbons from the reservoir to the well. The Company’s fleets consist of mobile hydraulic fracturing units and other auxiliary heavy equipment to perform fracturing services. The Company has two designs for hydraulic fracturing units: (1) Conventional Fleets, which are powered by diesel fuel and utilize traditional internal combustion engines, transmissions, and radiators and (2) Clean Fleet ® MPAC was incorporated in Delaware in March 2016 as a special purpose acquisition company, formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more target businesses. On November 9, 2018, MPAC acquired USWS Holdings LLC, a Delaware limited liability company (“USWS Holdings”), pursuant to the Merger and Contribution Agreement, dated as of July 13, 2018, and subsequently amended (as amended, the “Merger and Contribution Agreement”). The acquisition, together with the other transactions contemplated by the Merger and Contribution Agreement are referred to herein as the “Transaction”. In connection with the closing of the Transaction, MPAC changed its name to U.S. Well Services, Inc. Following the completion of the Transaction, substantially all of the Company’s assets and operations are held and conducted by U.S. Well Services, LLC (“USWS LLC”), a wholly owned subsidiary of USWS Holdings, and the Company’s only assets are equity interests representing 97% ownership of USWS Holdings as of September 30, 2020. Unless the context otherwise requires, “the Company”, “we,” “us,” and “our” refer, for periods prior to the completion of the Transaction, to USWS Holdings and its subsidiaries and, for periods upon or after the completion of the Transaction, to U.S. Well Services, Inc. and its subsidiaries, including USWS Holdings and its subsidiaries. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by GAAP for annual financial statements and should be read in conjunction with the annual financial statements included in the Company's 2019 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 5, 2020 (the “Annual Report”). The accompanying unaudited condensed consolidated financial statements and accompanying notes present the consolidated financial position, results of operations, cash flows, and equity (deficit) of the Company as of the dates and for the periods presented. The interim data includes all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2020. Principles of Consolidation The condensed consolidated financial statements comprise the financial statements of the Company, its wholly owned subsidiaries, and its subsidiaries that it controls due to ownership of a majority voting interest. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the Company. All significant intercompany balances and transactions are eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We regularly evaluate estimates and judgments based on historical experience and other relevant facts and circumstances. Significant estimates included in these financial statements primarily relate to allowance for doubtful accounts, allowance for inventory obsolescence, estimated useful lives and valuation of property and equipment and intangible assets, impairment assessments of goodwill and long-lived assets, Level 2 inputs used in fair value estimation of term loans, and the assumptions used in our Black-Scholes and Monte Carlo option pricing models associated with the valuation of share-based compensation and certain equity instruments. Actual results could differ from those estimates. Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements, or are reserved for a specific purpose, and not readily available for immediate or general use are recorded in restricted cash in our condensed consolidated balance sheets. The restricted cash in our condensed consolidated balance sheet represents cash transferred into a trust account to support our workers’ compensation obligations and cash held for use in capital expenditures related to approved fleet expansion in amounts of $0.5 million and a nominal amount, respectively, as of September 30, 2020, and $0.5 million and $7.1 million, respectively, as of December 31, 2019. The following table provides a reconciliation of the amount of cash and cash equivalents reported on the condensed consolidated balance sheets to the total of cash and cash equivalents and restricted cash shown on the condensed consolidated statements of cash flows (in thousands) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 519 $ 33,794 Restricted cash 519 7,610 Cash and cash equivalents and restricted cash $ 1,038 $ 41,404 Inventory Inventory consists of proppant, chemicals, and other consumable materials and supplies used in our high-pressure hydraulic fracturing operations. Inventories are stated at the lower of cost or net realizable value. Cost is determined principally on a first-in-first-out cost basis. All inventories are purchased for use by the Company in the delivery of its services with no inventory being sold separately to outside parties. Inventory quantities on hand are reviewed regularly and write-downs for obsolete inventory are recorded based on our forecast of the inventory item demand in the near future. As of September 30, 2020 and December 31, 2019, the Company had reserves of $0.4 million and $0.6 million, respectively, for obsolete and slow-moving inventory. Property and Equipment Property and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. Expenditures for renewals and betterments that extend the lives of the assets are capitalized. Amounts spent for maintenance and repairs, which do not improve or extend the life of the related asset, are charged to expense as incurred. The Company separately identifies and accounts for certain critical components of its hydraulic fracturing units including the engine, transmission, and pump, which requires us to separately estimate the useful lives of these components. For our other service equipment, we do not separately identify and track depreciation of specific original components. When we replace components of these assets, we typically estimate the net book values of the components that are retired, which are based primarily upon their replacement costs, their ages and their original estimated useful lives. In the first quarter of 2020, our review of impairment of long-lived assets (refer to “Note 5 – Goodwill and Intangible Assets”) necessitated a review of the useful lives of our property and equipment. Current trends in hydraulic fracturing equipment operating conditions, such as increasing treating pressures and higher pumping rates, along with the increase in daily pumping time are shortening the useful life of certain critical components we use. We determined that the average useful life of fluid ends and fuel injectors is now less than one year, resulting in our determination that costs associated with the replacement of these components will no longer be capitalized, but instead expensed as they are used in operations . This change in accounting estimate was made effective in March 2020 and accounted for prospectively . Goodwill Goodwill is not amortized, but is reviewed for impairment annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Judgements regarding indicators of potential impairment are based on market conditions and operational performance of the business. As of December 31 of each year, or as required, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment initially using a qualitative approach to determine whether conditions exist that indicate it is more likely than not that a reporting unit’s carrying value is greater than its fair value, and if such conditions are identified, then a quantitative analysis will be performed to determine if there is any impairment. The Company may also elect to perform a single step quantitative analysis in which the carrying amount of the reporting unit is compared to its fair value, which the Company estimates using a guideline public company method, a form of the market approach. The guideline public company method utilized the trading multiples of similarly traded public companies as they related to the Company’s operating metrics. An impairment charge would be recognized for the amount by which the carrying amount of the reporting unit exceeds the reporting unit’s fair value, and only limited to the total amount of goodwill allocated to the reporting unit. Fair Value of Financial Instruments Fair value is defined under Accounting Standards Codification (ASC) 820, Fair Value Measurement Level 1–inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2–inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3–inputs are unobservable for the asset or liability. The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of September 30, 2020 and December 31, 2019: Senior Secured Term Loan . The fair value of the Senior Secured Term Loan is $193.9 million and approximates carrying value as of September 30, 2020 and December 31, 2019, respectively. Equipment financing . The carrying value of the equipment financing approximates fair value as its terms are consistent with and comparable to current market rates as of September 30, 2020 and December 31, 2019, respectively. Revenue Recognition The Company recognizes revenue based on the customer’s ability to benefit from the services rendered in an amount that reflects the consideration expected to be received in exchange for those services. The Company’s performance obligations are satisfied over time, typically measured in number of stages completed or the number of pumping days a fleet is available to pump for a customer in a month. All revenue is recognized when a contract with a customer exists, collectability of amounts subject to invoice is probable, the performance obligations under the contract have been satisfied over time, and the amount to which the Company has the right to invoice has been determined. A portion of the Company’s contracts contain variable consideration; however, this variable consideration is typically unknown at the time of contract inception, and is not known until the job is complete, at which time the variability is resolved. The Company has elected to use the “as invoiced” practical expedient to recognize revenue based upon the amount it has a right to invoice upon the completion of each performance obligation per the terms of the contract. Accounts Receivable Accounts receivable are recorded at their outstanding balances adjusted for an allowance for doubtful accounts. The allowance for doubtful accounts is determined by analyzing the payment history and credit worthiness of each customer. Receivable balances are charged off when they are considered uncollectible by management. Recoveries of receivables previously charged off are recorded as income when received. The Company held a reserve for doubtful accounts of $9.0 million and a nominal amount as of September 30, 2020 and December 31, 2019, respectively. The reserve was recorded due to growing uncertainty as to collectability of billed amounts from customers weakened by the recent collapse in crude oil prices. We are continuing to work with our customers on collecting these receivables. Major Customer and Concentration of Credit Risk The concentration of our customers in the oil and natural gas industry may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. We perform ongoing credit evaluations of our customers and do not generally require collateral in support of our trade receivables. The following table shows the percentage of revenues from our significant customers for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Customer A * 21.8% Customer B 23.6% * Customer C 21.5% 10.1% Customer D * 16.1% Customer E 18.0% * Customer F 26.0% * Customer G * 20.0% Nine Months Ended September 30, 2020 2019 Customer A 13.5% 16.3% Customer B 17.1% * Customer C 17.5% * Customer D * 17.4% Customer E 13.7% * Customer F 17.1% * Customer G * 16.9% Customer I * 10.9% An asterisk indicates that revenue is less than ten percent. The following table shows the percentage of trade receivables from our significant customers as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Customer A * 12.0% Customer B 25.9% 10.3% Customer C 14.6% * Customer D * 12.1% Customer E 14.0% * Customer F 13.4% * Customer G 23.5% 34.5% Customer H * 15.9% An asterisk indicates that trade receivable is less than ten percent. Income Taxes The Company, under ASC 740, uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. |
Accounting Standards
Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Standards | NOTE 3 – ACCOUNTING STANDARDS Except as discussed below, there have been no recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2020, as compared to the recent accounting pronouncements described in the Annual Report, that are of significance, or potential significance to the Company. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In June 2020, the FASB issued ASU 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) - Effective Dates for Certain Entities |
Prepaids and Other Current Asse
Prepaids and Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
PREPAIDS AND OTHER CURRENT ASSETS | NOTE 4 – PREPAIDS AND OTHER CURRENT ASSETS Prepaids and other current assets as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) September 30, 2020 December 31, 2019 Prepaid insurance $ 3,847 $ 11,127 Income tax receivable 1,567 810 Other current assets 5,029 1,395 Total prepaid expenses and other current assets $ 10,443 $ 13,332 During the third quarter of 2020, certain pieces of equipment were damaged. The Company has insurance coverage in place covering, among other things, property damage up to certain specified amounts. Other current assets include recoverable costs from insurance amounting to $3.1 million, which represents net book value of the equipment damaged. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 5 – GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. The Company performs an impairment analysis related to goodwill as of December 31 of each year, or when the Company identifies certain triggering events or circumstances that would more likely than not reduce the estimated fair value of the goodwill below its carrying amount. In the first quarter of 2020, the Company performed an impairment analysis of goodwill and long-lived assets. This impairment analysis was triggered by the sudden and drastic decline in oil prices in March 2020 and the corresponding decrease in the Company’s stock price, operating results and revised forecasts. The Company performed a quantitative goodwill impairment test utilizing the single-step approach to compare the carrying value of the reporting unit to its estimated fair value. The estimated fair value of the reporting unit was determined using a guideline public company method, a form of the market approach. The guideline public company method utilized the trading multiples of similarly traded public companies as they related to our operating metrics. Based on the impairment test, the Company determined that goodwill was not impaired as the reporting unit’s carrying value, after accounting for the impairment charges of long-lived assets, did not exceed the reporting unit’s fair value. Intangible Assets A summary of intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) Estimated Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Book Value As of September 30, 2020 Trademarks 10 $ 1,415 $ 104 $ 1,311 Patents 20 12,776 379 12,397 $ 14,191 $ 483 $ 13,708 As of December 31, 2019 Trademarks 10 $ 3,132 $ 913 $ 2,219 Patents 20 22,955 3,348 19,607 $ 26,087 $ 4,261 $ 21,826 The intangible assets are amortized over the period the Company expects to receive the related economic benefit. Amortization expense related to amortizable intangible assets for the three months ended September 30, 2020 and 2019 was $0.2 million and $1.9 million, respectively, and was included as part of depreciation and amortization in the condensed consolidated statements of operations. Amortization expense related to amortizable intangible assets for the nine months ended September 30, 2020 and 2019 was $0.8 million and $5.7 million, respectively. As discussed above, the Company identified a triggering event in the first quarter of 2020 and performed a quantitative impairment test on long-lived assets. The expected present value method, a form of the income approach, was utilized to determine the fair value of long-lived assets. This method is based on expected cash flows using a risk-adjusted discount rate, which reflects the weighted average cost of capital of similarly traded public companies. As a result of the impairment test performed, the Company recorded in the first quarter of 2020 an impairment charge of $7.2 million to reduce the carrying value of intangible assets from $21.4 million to $14.2 million, representing its fair value on the date of impairment. The estimated amortization expense for future periods is as follows (in thousands) Fiscal Year Estimated Amortization Expense Remainder of 2020 $ 242 2021 966 2022 966 2023 966 2024 966 Thereafter 9,602 Total $ 13,708 |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) Estimated Useful Life September 30, 2020 December 31, 2019 Fracturing equipment 1.5 to 25 years $ 258,218 $ 651,162 Light duty vehicles 5 years 2,184 8,188 Furniture and fixtures 5 years 67 277 IT equipment 3 years 1,676 6,724 Auxiliary equipment 2 to 20 years 12,720 38,502 Leasehold improvements Term of lease 287 725 275,152 705,578 Less: Accumulated depreciation and amortization (32,342 ) (263,968 ) Property and equipment, net $ 242,810 $ 441,610 Depreciation and amortization expense related to property and equipment for the three months ended September 30, 2020 and 2019 was $16.2 million and $37.8 million, respectively. Depreciation and amortization expense related to property and equipment for the nine months ended September 30, 2020 and 2019 was $64.9 million and $112.2 million, respectively. As a result of the impairment test on long-lived assets described in “Note 5 – Goodwill and Intangible Assets,” the Company recorded in the first quarter of 2020 an impairment charge of $140.3 million to reduce the carrying value of property and equipment from $414.1 million to $273.8 million, representing its fair value on the date of impairment. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 7 – ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) September 30, 2020 December 31, 2019 Accrued payroll and benefits $ 5,011 $ 9,356 Accrued taxes 5,013 9,817 Accrued interest 217 18,190 Other current liabilities 1,901 3,118 Accrued expenses and other current liabilities $ 12,142 $ 40,481 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 8 – NOTES PAYABLE Notes payable represents premium finance agreements with a credit finance institution to pay the premiums on insurance policies for the Company’s directors’ and officers’ liability, general liability, workers’ compensation, umbrella, auto and pollution coverage needs. These premium finance agreements had total balances of $1.9 million and $8.1 million as of September 30, 2020 and December 31, 2019, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 9 – DEBT Long-term debt as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) September 30, 2020 December 31, 2019 Senior Secured Term Loan $ 247,500 $ 250,000 ABL Credit Facility 14,939 40,090 PPP Loan 10,000 - Equipment financing 13,716 16,065 Capital leases 6,201 10,474 Total debt principal balance 292,356 316,629 Unamortized discount on debt and debt issuance costs (21,608 ) (9,449 ) Current maturities (9,674 ) (22,288 ) Net Long-term debt $ 261,074 $ 284,892 Senior Secured Term Loan During the first quarter of 2020, the Company made principal and interest payments amounting to $2.5 million and $24.3 million, respectively. The interest payments consisted of $17.9 million of accrued interest as of December 31, 2019, and $6.4 million of interest incurred in the first quarter of 2020. On April 1, 2020, the Company, USWS LLC, as the borrower, and all of the other subsidiaries of the Company entered into a Second Amendment (the “Term Loan Amendment”) to the senior secured term loan with CLMG Corp., as administrative and collateral agent, and the lenders party thereto. Pursuant to the Term Loan Amendment, the interest rate on amounts outstanding under the senior secured term loan was reduced to 0.0% and scheduled principal amortization payments were suspended for the period beginning April 1, 2020 and ending March 31, 2022. Beginning April 1, 2022, the senior secured term loan, as amended by the Term Loan Amendment, will resume incurring interest at the applicable LIBOR rate, subject to a 2.0% floor, plus 8.25%, and scheduled principal amortization payments equal to 0.5% of the initial principal balance of the term loans will resume on a quarterly basis commencing June 30, 2022. Additionally, pursuant to the Term Loan Amendment, certain other covenants were amended including, but not limited to, covenants relating to collateral inspections and excess cash flow, and the maturity date of the senior secured term loan was extended to December 5, 2025. The Company accounted for the Term Loan Amendment as a troubled debt restructuring under ASC 470-60, Troubled Debt Restructurings by Debtors In exchange for entering into the Term Loan Amendment, the lenders under the senior secured term loan received an extension fee comprised of a $20.0 million cash payment, 1,050 shares of Series B preferred stock valued at $1.1 million based on the stated liquidation preference of $1,000 per share, and 5,529,622 shares of Class A common stock valued at $1.4 million based on the closing price of the Class A common stock at the date of issuance. The Series B preferred stock issued to the lenders under the senior secured term loan had the same terms as the Series B preferred stock issued to certain institutional investors as described in “Note 10 – Mezzanine Equity”. The total fair value of cash and non-cash consideration transferred to the lenders under the senior secured term loan were accounted for as discount on debt issuance and amortized using the effective interest method. On July 30, 2020, the Company, USWS LLC, as the borrower, and all of the other subsidiaries of the Company entered into a Second Amendment (the “Third Term Loan Amendment”) to the senior secured term loan with CLMG Corp., as administrative and collateral agent, and the lenders party thereto. Pursuant to the Third Term Loan Amendment, the agents and the lenders agreed to make certain modifications and amendments to the senior secured term loan in order to, among other things, consent to the entry into the PPP Loan, subject to the amended terms and conditions specified for the same in the Third Term Loan Amendment. Additionally, the Third Term Loan Amendment made certain modifications to the senior secured term loan which limits the Company’s ability to deploy and use collateral outside of the continental United States and other than in connection with oil and gas fracking and exploration without the prior consent of the administrative agent. In the Third Term Loan Amendment the Company further agreed to specific conditions and covenants regarding a turbine rental and services agreement entered into on June 19, 2020 and which affect the equipment which is the subject thereof. ABL Credit Facility In April and August of 2020, the Company, USWS LLC, and all of the other subsidiaries of the Company entered into the First Amendment (the “ABL Amendment”) and Second Amendment (the “Second ABL Amendment”), respectively, to the ABL Credit Facility with the lenders party thereto and Bank of America, N.A., as the administrative agent, swing line lender and letter of credit issuer. Pursuant to the ABL Amendment, the aggregate revolving commitment under the ABL Credit Facility was reduced from $75.0 million to $60.0 million, the maturity date was extended from May 7, 2024 to April 1, 2025, and the interest rate margin applicable to borrowings under the ABL Credit Facility was increased by 0.50% per annum and a LIBOR floor of 1% was added. In addition, the borrowing base under the ABL Credit Facility was amended to include a FILO Amount (as defined in the ABL Amendment) which increases borrowing base availability by up to the lesser of (i) $4.0 million and (ii) 5.0% of the value of eligible accounts receivable, subject to scheduled monthly reductions. Loans under the ABL Credit Facility which are advanced in respect of the FILO Amount accrue interest at a rate that is 1.50% higher than the rate applicable to other loans under the ABL Credit Facility, and may be repaid only after all other loans under the ABL Credit Facility have been repaid. Pursuant to the Second ABL Amendment, the aggregate revolving commitment under the ABL Credit Facility was reduced from $60.0 million to $50.0 million and certain modifications were made to eligible accounts in the borrowing base and to the applicable thresholds in the cash dominion trigger period and financial covenant trigger period, among other things. The Company’s option to request an increase in commitments under the accordion feature was also removed under the terms of the Second ABL Amendment. Under ASC 470-50, Modifications and Extinguishments The Paycheck Protection Program (PPP) Loan In July 2020, the Company received an unsecured $10.0 million loan (the “PPP Loan”) that bears interest at a rate of 1.0% per annum and matures in five years under the Paycheck Protection Program from a commercial bank. The Paycheck Protection Program was established under the Coronavirus Aid, Relief and Economic Security Act (as amended, the “CARES Act”) and is administered by the U.S. Small Business Administration. Under the terms of the CARES Act, loan recipients can apply for and be granted forgiveness for all or a portion of the loan. Forgiveness is determined, subject to certain limitations, based on the use of the loan proceeds for payroll costs, interest on mortgages or other debt obligations, rents and utilities. At least 60% of the proceeds must be used for payroll costs. No assurance can be given that the Company will obtain forgiveness of the PPP Loan either in whole or in part. Accordingly, the Company accounted for the PPP Loan as part of long-term debt in the condensed consolidated balance sheets. Equipment Financing In March 2020, the Company entered into an agreement with a lender to consolidate various individual equipment financing agreements, which represented substantially all of our equipment financing notes, with the same lender into four notes. The amendments under the consolidated equipment financing agreements pertain to maturity date, interest rate, and date of first installment payment. The Company evaluated the debt modification in accordance with ASC 470-50 and concluded that the debt modification did not result in a substantially different debt, and accordingly, no gain or loss was recorded. The total outstanding balance of the consolidated equipment financing agreements as of September 30, 2020 was $13.7 million, payable in equal monthly installments through May 1, 2024, at an interest rate of 5.7%. The weighted average interest rate of amounts outstanding under the equipment financing agreements was 5.7% and 6.4% per annum as of September 30, 2020 and December 31, 2019, respectively. Payments of Debt Obligations due by Period Presented in the following table is a schedule of the repayment requirements of long-term debt as of September 30, 2020 (in thousands) : Principal Amount of Long-term Debt Remainder of 2020 $ 7,052 2021 3,519 2022 7,462 2023 8,930 2024 6,705 Thereafter 258,688 Total $ 292,356 |
Mezzanine Equity
Mezzanine Equity | 9 Months Ended |
Sep. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
MEZZANINE EQUITY | NOTE 10 – MEZZANINE EQUITY Series A Redeemable Convertible Preferred Stock The following table summarizes the Company’s Series A Redeemable Convertible Preferred Stock, par value $0.0001 per share (“Series A preferred stock”) activities for the nine months ended September 30, 2020 ( in thousands, except share amounts Shares Amount Series A preferred stock as of December 31, 2019 55,000 $ 38,928 Deemed and imputed dividends on Series A preferred stock - 11,220 Accrued Series A preferred stock dividends - 5,450 Conversion of Series A preferred stock to Class A common stock (3,000 ) (4,691 ) Series A preferred stock as of September 30, 2020 52,000 $ 50,907 In accordance with the Series A preferred stock purchase agreement, subject to there being Series A preferred stock outstanding, the Company will issue an additional 4,399,992 warrants to the purchasers of Series A preferred stock in quarterly installments of 488,888 warrants beginning nine months after May 24, 2019. During the nine months ended September 30, 2020, the Company issued 1,466,664 additional warrants to the purchasers of Series A preferred stock. In the third quarter of 2020, a holder of the Series A preferred stock converted 3,000 shares of Series A preferred stock and accrued dividends into 523,973 shares of Class A common stock pursuant to the certificate of designations authorizing and establishing the rights, preferences and privileges of the Series A preferred stock. Accordingly, the Company recorded a reduction of $4.7 million in the carrying value of the Series A preferred stock. As of September 30, 2020, 52,000 shares of Series A preferred stock were outstanding and convertible into 9,146,254 shares of Class A common stock, and dividends accrued and outstanding with respect to the Series A preferred stock were $9.5 million and reflected in the carrying value of Series A preferred stock. Series B Redeemable Convertible Preferred Stock The following table summarizes the Company’s Series B Redeemable Convertible Preferred Stock, par value $0.0001 per share (“Series B preferred stock”) activities for the nine months ended September 30, 2020 ( in thousands, except share amounts Shares Amount Series B preferred stock as of December 31, 2019 - $ - Proceeds from issuance of Series B preferred stock 21,000 21,000 Issuance of Series B preferred stock to senior secured term loan lenders 1,050 1,050 Issuance cost associated with Series B preferred stock - (1,413 ) Accrued Series B preferred stock dividends - 1,347 Series B preferred stock as of September 30, 2020 22,050 $ 21,984 On March 31, 2020, the Company entered into a purchase agreement with certain institutional investors (collectively, the “Purchasers”), pursuant to which the Company agreed to issue and sell in a private placement 21,000 shares of Series B preferred stock, for an aggregate purchase price of $21.0 million. On April 1, 2020 (the “Series B Closing Date”), the Purchasers purchased the Series B preferred stock. Two of the purchasers of the Series B preferred stock were affiliates of Crestview Partners, which held, prior to the issuance, an aggregate 36.67% ownership interest in the Company and is entitled to designate for nomination by the Company for election two directors to serve on the Company’s Board of Directors. The Series B preferred stock ranks senior to the Class A common stock and Class B common stock and in parity with the Series A preferred stock, with respect to distributions. The Series B preferred stock has only specified voting rights, including with respect to the issuance or creation of senior securities, amendments to the Company’s Second Amended and Restated Certificate of Incorporation that negatively impact the rights of the Series B preferred stock and the payment of dividends on, or repurchase or redemption of, Class A common stock. The Company has the option, but no obligation, to redeem the Series B preferred stock for cash. If the Company notifies the holders that it has elected to redeem the Series B preferred stock, a holder may instead elect to convert its shares of Series B preferred stock at the specified conversion price, which is initially $0.308 per share. The Series B preferred stock converted in response to a redemption notice will net settle for a combination of cash and Class A common stock. Each holder of Series B preferred stock may convert all or any portion of its Series B preferred stock into Class A common stock based on the then-applicable liquidation preference, subject to anti-dilution adjustments, at any time, but not more than once per quarter, so long as any conversion is for at least $1.0 million based on the liquidation preference on the date of the conversion notice. Following the eighteen-month anniversary of the Series B Closing Date, the Company may cause the conversion of all or any portion of the Series B preferred stock into Class A common stock if (i) the closing price of the Class A common stock is greater than 130% of the conversion price for 20 days over any 30-day trading period; (ii) the average daily trading volume of the Class A common stock exceeded 250,000 for 20 days over any 30-day trading period; and (iii) the Company has an effective registration statement on file with the Securities and Exchange Commission covering resales of the underlying Class A common stock to be received upon such conversion. The Series B preferred stock was recorded as Mezzanine Equity, net of issuance cost, on the condensed consolidated balance sheets because it has redemption features upon certain triggering events that are outside the Company’s control, such as change in control. As of September 30, 2020, 22,050 shares of Series B preferred stock were outstanding and convertible into 75,966,724 shares of Class A common stock, and dividends accrued and outstanding with respect to the Series B preferred stock was $1.3 million and reflected in the carrying value of Series B preferred stock. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 11 – STOCKHOLDERS’ EQUITY Shares Authorized and Outstanding Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. See “Note 10 – Mezzanine Equity” for the discussion of preferred stock issued and outstanding. Class A Common Stock The Company is authorized to issue 400,000,000 shares of Class A common stock with a par value of $0.0001 per share. At September 30, 2020 and December 31, 2019, there were 71,413,883 and 62,857,624 shares of Class A common stock issued and outstanding, respectively. At September 30, 2020, 1,000,000 outstanding shares of Class A common stock were subject to cancellation on November 9, 2024, unless the closing price per share of the Class A common stock has equaled or exceeded $12.00 for any 20 trading days within any 30-trading day period, and 609,677 outstanding shares of Class A common stock were subject to the same cancellation provision, but at a closing price per share of $13.50. On June 26, 2020, the Company entered into an Equity Distribution Agreement (the “ATM Agreement”) with Piper Sandler & Co. relating to the Company’s shares of Class A common stock. In accordance with the terms of the ATM Agreement, the Company may offer and sell over a period of time, up to $10.3 million of our Class A common stock. The ATM Agreement relates to an “at-the-market” offering program. Under the ATM Agreement, the Company will pay Piper Sandler an aggregate commission of up to 3% of the gross sales price per share of Class A common stock sold under the ATM Agreement. The Company sold 400 shares of Class A common stock for total net proceeds of two hundred and two dollars and seventy six cents under this ATM Agreement as of September 30, 2020. The Company paid six dollars and twenty four cents in commission with respect to this sale. Class B Common Stock The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. The shares of Class B common stock are non-economic; however, holders are entitled to one vote per share. Each share of Class B common stock, together with one unit of USWS Holdings, is exchangeable for one share of Class A common stock or, at the Company’s election, the cash equivalent to the market value of one share of Class A common stock. As of September 30, 2020 and December 31, 2019, there were 2,302,936 and 5,500,692 shares of Class B common stock issued and outstanding, respectively. During the nine months ended September 30, 2020 , 3,197,756 shares of Class B common stock were converted to an equivalent number of shares of Class A common stock. Warrants As of September 30, 2020, 9,994,635 public warrants and 15,500,000 private placement warrants were outstanding, and exercisable for an aggregate of 12,747,318 shares of Class A common stock. In addition, as of September 30, 2020, 4,399,997 warrants were outstanding pursuant to the Series A preferred stock purchase agreement, and exercisable for 4,399,997 shares of Class A common stock. Noncontrolling Interest The Company’s noncontrolling ownership interest in consolidated subsidiaries is presented in the condensed consolidated balance sheet within stockholders’ equity (deficit) as a separate component and represents approximately 3% ownership of USWS Holdings as of September 30, 2020. Long-Term Incentive Plan An aggregate of 8,160,500 shares of Class A common stock were initially available for issuance under the 2018 Long Term Incentive Plan (“LTIP”). Shares issued under the LTIP are further discussed in “Note 13 - Share-Based Compensation”. The aggregate number of shares available for issuance as of September 30, 2020 was 5,053,961. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | NOTE 12 – EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional common shares that could have been outstanding assuming the exercise of stock options, exercise of warrants, conversion of Series A and Series B preferred stock, conversion of Class B common stock and vesting of restricted shares of Class A common stock. Basic and diluted net income (loss) per share excludes the income (loss) attributable to and shares associated with the 1,609,677 shares of Class A common stock that are subject to cancellation on November 9, 2024 if certain market conditions have not been met. The Company has included in the calculation accrued dividends on Series A and Series B preferred stock and deemed dividends resulting from the amortization of discounts related to the Series A preferred stock. The following table sets forth the calculation of basic and diluted earnings per share for the periods indicated based on the weighted average number of shares of Class A common stock outstanding for the period (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic Net Income (Loss) Per Share Numerator: Net loss attributable to U.S. Well Services, Inc. $ (15,937 ) $ (16,969 ) $ (206,441 ) $ (60,720 ) Net loss attributable to cancellable Class A common stock 376 527 5,109 1,924 Basic net loss attributable to U.S. Well Services, Inc. shareholders (15,561 ) (16,442 ) (201,332 ) (58,796 ) Dividends accrued on Series A preferred stock (1,854 ) (1,670 ) (5,450 ) (2,330 ) Dividends accrued on Series B preferred stock (681 ) - (1,347 ) - Deemed and imputed dividends on Series A preferred stock (467 ) (4,406 ) (11,220 ) (5,966 ) Basic net loss attributable to U.S. Well Services, Inc. Class A common shareholders $ (18,563 ) $ (22,518 ) $ (219,349 ) $ (67,092 ) Denominator: Weighted average shares outstanding 68,276,671 51,859,283 65,040,390 50,791,787 Cancellable Class A common stock (1,609,677 ) (1,609,677 ) (1,609,677 ) (1,609,677 ) Basic and diluted weighted average shares outstanding 66,666,994 50,249,606 63,430,713 49,182,110 Basic and diluted net income (loss) per share attributable to Class A common shareholders $ (0.28 ) $ (0.45 ) $ (3.46 ) $ (1.36 ) A summary of securities excluded from the computation of diluted earnings per share is presented below for the applicable periods: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Dilutive earnings per share: Anti-dilutive stock options 877,266 1,068,162 877,266 1,068,162 Anti-dilutive warrants 17,147,315 15,680,651 17,147,315 15,680,651 Anti-dilutive restricted stock 1,492,161 2,729,496 1,492,161 2,729,496 Anti-dilutive Class B common stock convertible into Class A common stock 2,302,936 13,775,400 2,302,936 13,775,400 Anti-dilutive Series A preferred stock convertible into Class A common stock 9,146,254 8,595,172 9,146,254 8,595,172 Anti-dilutive Series B preferred stock convertible into Class A common stock 75,966,724 - 75,966,724 - Potentially dilutive securities excluded as anti-dilutive 106,932,656 41,848,881 106,932,656 41,848,881 |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | NOTE 13 – SHARE-BASED COMPENSATION Share-based compensation expense consisted of the following ( in thousands Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Restricted stock $ 819 $ 1,937 $ 3,832 $ 4,788 Unrestricted stock - 104 - 312 Stock options 218 265 687 572 Total $ 1,037 (1) $ 2,306 (2) $ 4,519 (3) $ 5,672 (4) (1) (2) (3) (4) Restricted Stock The following table summarizes the restricted stock activity for the nine months ended September 30, 2020: Weighted- average Unvested shares grant-date fair value per share Non-vested restricted stock as of December 31, 2019 2,723,637 $ 8.87 Granted - - Vested (690,237 ) 8.87 Forfeited (541,239 ) 8.85 Non-vested restricted stock as of September 30, 2020 1,492,161 $ 8.88 Stock Options The following table summarizes the stock option activity for the nine months ended September 30, 2020: Number of shares Weighted average exercise price (per share data) Weighted Average Remaining Contractual Life (years) Outstanding as of December 31, 2019 1,068,162 $ 8.91 6.21 Exercised - - - Forfeited/Expired (190,896 ) 8.91 - Outstanding as of September 30, 2020 877,266 $ 8.91 5.46 Exercisable as of September 30, 2020 219,317 $ 8.91 5.46 As of September 30, 2020, total unrecognized compensation cost related to stock-based compensation grants under the LTIP was $10.7 million. We expect to recognize these costs over a weighted average period of 2.4 years. |
Employee Benefit Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | NOTE 14 – EMPLOYEE BENEFIT PLAN In 2013, the Company established the U.S. Well Services 401(k) Plan. The Company matched 100% of employee contributions up to 6% of the employee’s salary, subject to cliff vesting after two years of service. At the end of the first quarter of 2020, the Company suspended its match of employee contributions. For the three months ended September 30, 2020 and 2019, matching contributions were $0.0 million and $1.1 million, respectively. For the nine months ended September 30, 2020 and 2019, matching contributions were $1.0 million and $3.8 million, |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15 – INCOME TAXES On March 27, 2020, the President signed the CARES Act into law. The CARES Act contains several corporate income tax provisions, including, among other things, providing a 5-year carryback of net operating loss (“NOL”) tax carryforwards generated in tax years 2018, 2019, and 2020, removing the 80% taxable income limitation on utilization of those NOLs if carried back to prior tax years or utilized in tax years beginning before 2021, temporarily liberalizing the interest deductions rules under Section 163(j) of the Tax Cuts and Jobs Act of 2017, and making corporate alternative minimum tax credits immediately refundable. During the second quarter of 2020, the Company filed an application to carry back its 2018 NOLs, claiming a refund of approximately $0.8 million. The Company continues to evaluate other potential effects of the CARES Act. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions and is subject to examination by the taxing authorities. The Company’s effective tax rate on continuing operations for the nine months ended September 30, 2020 was (0.38)%. The difference between the effective tax rate and the U.S. federal statutory rate is due to state taxes, flow-through income not subject to tax, and a valuation allowance. We follow guidance issued by the FASB in accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the consolidated financial statements and applies to all income tax positions. Each income tax position is assessed using a two-step process. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the condensed consolidated financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. We have considered our exposure under the standard at both the federal and state tax levels. We did not record any liabilities for uncertain tax positions as of September 30, 2020 or December 31, 2019. We record income tax-related interest and penalties, if any, as a component of income tax expense. We did not incur any material interest or penalties on income taxes. After consideration of all the information available, management determined that a valuation allowance was appropriate, as it is more likely than not that the Company will not utilize its net deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16 – COMMITMENTS AND CONTINGENCIES Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Sand Purchase Agreements The Company entered into agreements for the supply of proppant for use in its hydraulic fracturing operations. Under the terms of these agreements, the Company is subject to minimum purchase quantities on a monthly, quarterly, or annual basis at fixed prices or may pay penalties in the event of any shortfall. As of September 30, 2020, we estimated and accrued for a shortfall in quantities. This accrual is presented as part of accrued liabilities on the condensed consolidated balance sheets. The following is a schedule of the contracted volumes in dollars and minimum commitments under the proppant supply purchase agreements as of September 30, 2020 (in thousands) Minimum Contracted Commitments Remainder of 2020 $ 7,758 $ 4,027 2021 11,340 960 Total $ 19,098 $ 4,987 The minimum commitments represent the aggregate amounts that we would be obligated to pay in the event we procured no additional proppant under the contracts subsequent to September 30, 2020. During the first quarter of 2019, we became involved in a contract dispute with a proppant vendor resulting in the cancellation of the contract. Accordingly, as of September 30, 2020, we have excluded $47.1 million and $48.0 million of contracted and minimum commitments, respectively, related to this contract. The litigation involving the contract in dispute is in the discovery stage, and as such no prediction can be made as to the outcome of the case at this time and we are unable to reasonably estimate the potential losses or range of losses resulting from this litigation, if any. Operating Lease Agreements The Company has various operating leases for facilities with terms ranging from 24 to 76 months. Rent expense was $0.7 million for each of the three months ended September 30, 2020 and 2019, of which $0.4 million and $0.6 million, respectively, are recorded as part of cost of services and $0.3 million, and $0.1 million, respectively, are recorded as part of selling, general and administrative expenses in the condensed consolidated statements of operations. Rent expense for the nine months ended September 30, 2020 and 2019 was $1.8 million and $2.0 million, respectively, of which $1.1 million and $1.6 million, respectively, are recorded as part of cost of services and $0.7 million and $0.4 million, respectively, are recorded as part of selling, general administrative expenses in the condensed consolidated statements of operations. The following is a schedule of minimum future payments on non-cancellable operating leases as of September 30, 2020 (in thousands) Remainder of 2020 $ 358 2021 1,114 2022 828 2023 308 2024 258 Thereafter 67 Total minimum future rentals $ 2,933 On April 1, 2020, the Company entered into an agreement to extend the lease on one of its facilities. The extended term of the lease is for a period of 36 months commencing on April 1, 2020, with rent throughout the term totaling $0.7 million. Capital Lease Agreements The total amount of future minimum lease payments related to the capital leases as of September 30, 2020 was $6.4 million, all of which is due in the remainder of 2020. This amount includes imputed interest totaling $0.2 million. Self-insurance The Company established a self-insured plan for employees’ healthcare benefits except for losses in excess of varying threshold amounts. The Company charges to expense all actual claims made during each reporting period, as well as an estimate of claims incurred, but not yet reported. The amount of estimated claims incurred, but not reported was $0.3 million and $0.6 million as of September 30, 2020 and December 31, 2019, respectively, and was reported as accrued expenses in the condensed consolidated balance sheets. The Company believes that the liabilities recorded are appropriate based on the known facts and circumstances and does not expect further losses materially in excess of the amounts already accrued for existing claims. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 17 – RELATED PARTY TRANSACTIONS On April 1, 2020, Crestview Partners purchased 11,500 shares of Series B preferred stock for a total payment of $11.5 million. The TCW Group, Inc. purchased 6,500 shares of Series B preferred stock for a total payment of $6.5 million and David Matlin, a member of the Company’s Board of Directors, purchased 1,878 shares of Series B preferred stock for a total payment of $1.9 million. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 – SUBSEQUENT EVENTS On November 5, 2020, pursuant to the Amended and Restated U.S. Well Services, Inc. 2018 Stock Incentive Plan (the “A&R LTIP”), the Company made grants of deferred stock units and certain performance incentive awards that will provide for potential future payments to be made to certain key employees of the Company. The A&R LTIP, which was approved by the Board of Directors, upon the recommendation of the Compensation Committee of the Board of Directors on September 21, 2020, is expected to be included in the Company’s Proxy Statement for its 2021 Annual Meeting of Stockholders for approval by the Company’s stockholders. The details of these grants are further discussed in “Part II, Item 5 – Other Information”. The Company is still in the process of evaluating the accounting impact of these grants. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared using generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by GAAP for annual financial statements and should be read in conjunction with the annual financial statements included in the Company's 2019 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 5, 2020 (the “Annual Report”). The accompanying unaudited condensed consolidated financial statements and accompanying notes present the consolidated financial position, results of operations, cash flows, and equity (deficit) of the Company as of the dates and for the periods presented. The interim data includes all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results of operations expected for the entire fiscal year ended December 31, 2020. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements comprise the financial statements of the Company, its wholly owned subsidiaries, and its subsidiaries that it controls due to ownership of a majority voting interest. Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continue to be consolidated until the date when such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the Company. All significant intercompany balances and transactions are eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We regularly evaluate estimates and judgments based on historical experience and other relevant facts and circumstances. Significant estimates included in these financial statements primarily relate to allowance for doubtful accounts, allowance for inventory obsolescence, estimated useful lives and valuation of property and equipment and intangible assets, impairment assessments of goodwill and long-lived assets, Level 2 inputs used in fair value estimation of term loans, and the assumptions used in our Black-Scholes and Monte Carlo option pricing models associated with the valuation of share-based compensation and certain equity instruments. Actual results could differ from those estimates. |
Restricted Cash | Restricted Cash Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements, or are reserved for a specific purpose, and not readily available for immediate or general use are recorded in restricted cash in our condensed consolidated balance sheets. The restricted cash in our condensed consolidated balance sheet represents cash transferred into a trust account to support our workers’ compensation obligations and cash held for use in capital expenditures related to approved fleet expansion in amounts of $0.5 million and a nominal amount, respectively, as of September 30, 2020, and $0.5 million and $7.1 million, respectively, as of December 31, 2019. The following table provides a reconciliation of the amount of cash and cash equivalents reported on the condensed consolidated balance sheets to the total of cash and cash equivalents and restricted cash shown on the condensed consolidated statements of cash flows (in thousands) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 519 $ 33,794 Restricted cash 519 7,610 Cash and cash equivalents and restricted cash $ 1,038 $ 41,404 |
Inventory | Inventory Inventory consists of proppant, chemicals, and other consumable materials and supplies used in our high-pressure hydraulic fracturing operations. Inventories are stated at the lower of cost or net realizable value. Cost is determined principally on a first-in-first-out cost basis. All inventories are purchased for use by the Company in the delivery of its services with no inventory being sold separately to outside parties. Inventory quantities on hand are reviewed regularly and write-downs for obsolete inventory are recorded based on our forecast of the inventory item demand in the near future. As of September 30, 2020 and December 31, 2019, the Company had reserves of $0.4 million and $0.6 million, respectively, for obsolete and slow-moving inventory. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost, with depreciation provided on a straight-line basis over their estimated useful lives. Expenditures for renewals and betterments that extend the lives of the assets are capitalized. Amounts spent for maintenance and repairs, which do not improve or extend the life of the related asset, are charged to expense as incurred. The Company separately identifies and accounts for certain critical components of its hydraulic fracturing units including the engine, transmission, and pump, which requires us to separately estimate the useful lives of these components. For our other service equipment, we do not separately identify and track depreciation of specific original components. When we replace components of these assets, we typically estimate the net book values of the components that are retired, which are based primarily upon their replacement costs, their ages and their original estimated useful lives. In the first quarter of 2020, our review of impairment of long-lived assets (refer to “Note 5 – Goodwill and Intangible Assets”) necessitated a review of the useful lives of our property and equipment. Current trends in hydraulic fracturing equipment operating conditions, such as increasing treating pressures and higher pumping rates, along with the increase in daily pumping time are shortening the useful life of certain critical components we use. We determined that the average useful life of fluid ends and fuel injectors is now less than one year, resulting in our determination that costs associated with the replacement of these components will no longer be capitalized, but instead expensed as they are used in operations . This change in accounting estimate was made effective in March 2020 and accounted for prospectively . |
Goodwill | Goodwill Goodwill is not amortized, but is reviewed for impairment annually, or more frequently when events or changes in circumstances indicate that the carrying value may not be recoverable. Judgements regarding indicators of potential impairment are based on market conditions and operational performance of the business. As of December 31 of each year, or as required, the Company performs an impairment analysis of goodwill. The Company may assess its goodwill for impairment initially using a qualitative approach to determine whether conditions exist that indicate it is more likely than not that a reporting unit’s carrying value is greater than its fair value, and if such conditions are identified, then a quantitative analysis will be performed to determine if there is any impairment. The Company may also elect to perform a single step quantitative analysis in which the carrying amount of the reporting unit is compared to its fair value, which the Company estimates using a guideline public company method, a form of the market approach. The guideline public company method utilized the trading multiples of similarly traded public companies as they related to the Company’s operating metrics. An impairment charge would be recognized for the amount by which the carrying amount of the reporting unit exceeds the reporting unit’s fair value, and only limited to the total amount of goodwill allocated to the reporting unit. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined under Accounting Standards Codification (ASC) 820, Fair Value Measurement Level 1–inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2–inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3–inputs are unobservable for the asset or liability. The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of September 30, 2020 and December 31, 2019: Senior Secured Term Loan . The fair value of the Senior Secured Term Loan is $193.9 million and approximates carrying value as of September 30, 2020 and December 31, 2019, respectively. Equipment financing . The carrying value of the equipment financing approximates fair value as its terms are consistent with and comparable to current market rates as of September 30, 2020 and December 31, 2019, respectively. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue based on the customer’s ability to benefit from the services rendered in an amount that reflects the consideration expected to be received in exchange for those services. The Company’s performance obligations are satisfied over time, typically measured in number of stages completed or the number of pumping days a fleet is available to pump for a customer in a month. All revenue is recognized when a contract with a customer exists, collectability of amounts subject to invoice is probable, the performance obligations under the contract have been satisfied over time, and the amount to which the Company has the right to invoice has been determined. A portion of the Company’s contracts contain variable consideration; however, this variable consideration is typically unknown at the time of contract inception, and is not known until the job is complete, at which time the variability is resolved. The Company has elected to use the “as invoiced” practical expedient to recognize revenue based upon the amount it has a right to invoice upon the completion of each performance obligation per the terms of the contract. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at their outstanding balances adjusted for an allowance for doubtful accounts. The allowance for doubtful accounts is determined by analyzing the payment history and credit worthiness of each customer. Receivable balances are charged off when they are considered uncollectible by management. Recoveries of receivables previously charged off are recorded as income when received. The Company held a reserve for doubtful accounts of $9.0 million and a nominal amount as of September 30, 2020 and December 31, 2019, respectively. The reserve was recorded due to growing uncertainty as to collectability of billed amounts from customers weakened by the recent collapse in crude oil prices. We are continuing to work with our customers on collecting these receivables. |
Major Customer and Concentration of Credit Risk | Major Customer and Concentration of Credit Risk The concentration of our customers in the oil and natural gas industry may impact our overall exposure to credit risk, either positively or negatively, in that customers may be similarly affected by changes in economic and industry conditions. We perform ongoing credit evaluations of our customers and do not generally require collateral in support of our trade receivables. The following table shows the percentage of revenues from our significant customers for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Customer A * 21.8% Customer B 23.6% * Customer C 21.5% 10.1% Customer D * 16.1% Customer E 18.0% * Customer F 26.0% * Customer G * 20.0% Nine Months Ended September 30, 2020 2019 Customer A 13.5% 16.3% Customer B 17.1% * Customer C 17.5% * Customer D * 17.4% Customer E 13.7% * Customer F 17.1% * Customer G * 16.9% Customer I * 10.9% An asterisk indicates that revenue is less than ten percent. The following table shows the percentage of trade receivables from our significant customers as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Customer A * 12.0% Customer B 25.9% 10.3% Customer C 14.6% * Customer D * 12.1% Customer E 14.0% * Customer F 13.4% * Customer G 23.5% 34.5% Customer H * 15.9% An asterisk indicates that trade receivable is less than ten percent. |
Income Taxes | Income Taxes The Company, under ASC 740, uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of the amount of cash and cash equivalents reported on the condensed consolidated balance sheets to the total of cash and cash equivalents and restricted cash shown on the condensed consolidated statements of cash flows (in thousands) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 519 $ 33,794 Restricted cash 519 7,610 Cash and cash equivalents and restricted cash $ 1,038 $ 41,404 |
Schedule of Percentage of Revenues and Trade Receivables from Customers | The following table shows the percentage of revenues from our significant customers for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Customer A * 21.8% Customer B 23.6% * Customer C 21.5% 10.1% Customer D * 16.1% Customer E 18.0% * Customer F 26.0% * Customer G * 20.0% Nine Months Ended September 30, 2020 2019 Customer A 13.5% 16.3% Customer B 17.1% * Customer C 17.5% * Customer D * 17.4% Customer E 13.7% * Customer F 17.1% * Customer G * 16.9% Customer I * 10.9% An asterisk indicates that revenue is less than ten percent. The following table shows the percentage of trade receivables from our significant customers as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Customer A * 12.0% Customer B 25.9% 10.3% Customer C 14.6% * Customer D * 12.1% Customer E 14.0% * Customer F 13.4% * Customer G 23.5% 34.5% Customer H * 15.9% An asterisk indicates that trade receivable is less than ten percent. |
Prepaids and Other Current As_2
Prepaids and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaids and Other Current Assets | Prepaids and other current assets as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) September 30, 2020 December 31, 2019 Prepaid insurance $ 3,847 $ 11,127 Income tax receivable 1,567 810 Other current assets 5,029 1,395 Total prepaid expenses and other current assets $ 10,443 $ 13,332 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | A summary of intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) Estimated Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Book Value As of September 30, 2020 Trademarks 10 $ 1,415 $ 104 $ 1,311 Patents 20 12,776 379 12,397 $ 14,191 $ 483 $ 13,708 As of December 31, 2019 Trademarks 10 $ 3,132 $ 913 $ 2,219 Patents 20 22,955 3,348 19,607 $ 26,087 $ 4,261 $ 21,826 |
Schedule of Estimated Future Amortization Expense | The estimated amortization expense for future periods is as follows (in thousands) Fiscal Year Estimated Amortization Expense Remainder of 2020 $ 242 2021 966 2022 966 2023 966 2024 966 Thereafter 9,602 Total $ 13,708 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) Estimated Useful Life September 30, 2020 December 31, 2019 Fracturing equipment 1.5 to 25 years $ 258,218 $ 651,162 Light duty vehicles 5 years 2,184 8,188 Furniture and fixtures 5 years 67 277 IT equipment 3 years 1,676 6,724 Auxiliary equipment 2 to 20 years 12,720 38,502 Leasehold improvements Term of lease 287 725 275,152 705,578 Less: Accumulated depreciation and amortization (32,342 ) (263,968 ) Property and equipment, net $ 242,810 $ 441,610 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) September 30, 2020 December 31, 2019 Accrued payroll and benefits $ 5,011 $ 9,356 Accrued taxes 5,013 9,817 Accrued interest 217 18,190 Other current liabilities 1,901 3,118 Accrued expenses and other current liabilities $ 12,142 $ 40,481 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of September 30, 2020 and December 31, 2019 consisted of the following (in thousands) September 30, 2020 December 31, 2019 Senior Secured Term Loan $ 247,500 $ 250,000 ABL Credit Facility 14,939 40,090 PPP Loan 10,000 - Equipment financing 13,716 16,065 Capital leases 6,201 10,474 Total debt principal balance 292,356 316,629 Unamortized discount on debt and debt issuance costs (21,608 ) (9,449 ) Current maturities (9,674 ) (22,288 ) Net Long-term debt $ 261,074 $ 284,892 |
Schedule of Repayment Requirements of Long-term Debt | Presented in the following table is a schedule of the repayment requirements of long-term debt as of September 30, 2020 (in thousands) : Principal Amount of Long-term Debt Remainder of 2020 $ 7,052 2021 3,519 2022 7,462 2023 8,930 2024 6,705 Thereafter 258,688 Total $ 292,356 |
Mezzanine Equity (Tables)
Mezzanine Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Summary of Series A and Series B Redeemable Convertible Preferred Stock (Series A and Series B Preferred Stock) Activities | The following table summarizes the Company’s Series A Redeemable Convertible Preferred Stock, par value $0.0001 per share (“Series A preferred stock”) activities for the nine months ended September 30, 2020 ( in thousands, except share amounts Shares Amount Series A preferred stock as of December 31, 2019 55,000 $ 38,928 Deemed and imputed dividends on Series A preferred stock - 11,220 Accrued Series A preferred stock dividends - 5,450 Conversion of Series A preferred stock to Class A common stock (3,000 ) (4,691 ) Series A preferred stock as of September 30, 2020 52,000 $ 50,907 The following table summarizes the Company’s Series B Redeemable Convertible Preferred Stock, par value $0.0001 per share (“Series B preferred stock”) activities for the nine months ended September 30, 2020 ( in thousands, except share amounts Shares Amount Series B preferred stock as of December 31, 2019 - $ - Proceeds from issuance of Series B preferred stock 21,000 21,000 Issuance of Series B preferred stock to senior secured term loan lenders 1,050 1,050 Issuance cost associated with Series B preferred stock - (1,413 ) Accrued Series B preferred stock dividends - 1,347 Series B preferred stock as of September 30, 2020 22,050 $ 21,984 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic And Diluted Earning Per Share | The following table sets forth the calculation of basic and diluted earnings per share for the periods indicated based on the weighted average number of shares of Class A common stock outstanding for the period (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic Net Income (Loss) Per Share Numerator: Net loss attributable to U.S. Well Services, Inc. $ (15,937 ) $ (16,969 ) $ (206,441 ) $ (60,720 ) Net loss attributable to cancellable Class A common stock 376 527 5,109 1,924 Basic net loss attributable to U.S. Well Services, Inc. shareholders (15,561 ) (16,442 ) (201,332 ) (58,796 ) Dividends accrued on Series A preferred stock (1,854 ) (1,670 ) (5,450 ) (2,330 ) Dividends accrued on Series B preferred stock (681 ) - (1,347 ) - Deemed and imputed dividends on Series A preferred stock (467 ) (4,406 ) (11,220 ) (5,966 ) Basic net loss attributable to U.S. Well Services, Inc. Class A common shareholders $ (18,563 ) $ (22,518 ) $ (219,349 ) $ (67,092 ) Denominator: Weighted average shares outstanding 68,276,671 51,859,283 65,040,390 50,791,787 Cancellable Class A common stock (1,609,677 ) (1,609,677 ) (1,609,677 ) (1,609,677 ) Basic and diluted weighted average shares outstanding 66,666,994 50,249,606 63,430,713 49,182,110 Basic and diluted net income (loss) per share attributable to Class A common shareholders $ (0.28 ) $ (0.45 ) $ (3.46 ) $ (1.36 ) |
Summary of Securities Excluded from Computation of Diluted Earnings Per Share | A summary of securities excluded from the computation of diluted earnings per share is presented below for the applicable periods: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Dilutive earnings per share: Anti-dilutive stock options 877,266 1,068,162 877,266 1,068,162 Anti-dilutive warrants 17,147,315 15,680,651 17,147,315 15,680,651 Anti-dilutive restricted stock 1,492,161 2,729,496 1,492,161 2,729,496 Anti-dilutive Class B common stock convertible into Class A common stock 2,302,936 13,775,400 2,302,936 13,775,400 Anti-dilutive Series A preferred stock convertible into Class A common stock 9,146,254 8,595,172 9,146,254 8,595,172 Anti-dilutive Series B preferred stock convertible into Class A common stock 75,966,724 - 75,966,724 - Potentially dilutive securities excluded as anti-dilutive 106,932,656 41,848,881 106,932,656 41,848,881 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share-based Compensation Expense | Share-based compensation expense consisted of the following ( in thousands Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Restricted stock $ 819 $ 1,937 $ 3,832 $ 4,788 Unrestricted stock - 104 - 312 Stock options 218 265 687 572 Total $ 1,037 (1) $ 2,306 (2) $ 4,519 (3) $ 5,672 (4) (1) (2) (3) (4) |
Schedule of Restricted Stock Transactions | The following table summarizes the restricted stock activity for the nine months ended September 30, 2020: Weighted- average Unvested shares grant-date fair value per share Non-vested restricted stock as of December 31, 2019 2,723,637 $ 8.87 Granted - - Vested (690,237 ) 8.87 Forfeited (541,239 ) 8.85 Non-vested restricted stock as of September 30, 2020 1,492,161 $ 8.88 |
Schedule of Stock Option Activity | The following table summarizes the stock option activity for the nine months ended September 30, 2020: Number of shares Weighted average exercise price (per share data) Weighted Average Remaining Contractual Life (years) Outstanding as of December 31, 2019 1,068,162 $ 8.91 6.21 Exercised - - - Forfeited/Expired (190,896 ) 8.91 - Outstanding as of September 30, 2020 877,266 $ 8.91 5.46 Exercisable as of September 30, 2020 219,317 $ 8.91 5.46 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contracted Volumes and Minimum Commitments under Proppant Supply Purchase Agreements | The following is a schedule of the contracted volumes in dollars and minimum commitments under the proppant supply purchase agreements as of September 30, 2020 (in thousands) Minimum Contracted Commitments Remainder of 2020 $ 7,758 $ 4,027 2021 11,340 960 Total $ 19,098 $ 4,987 |
Schedule of Minimum Future Payments on Non-Cancelable Operating Leases | The following is a schedule of minimum future payments on non-cancellable operating leases as of September 30, 2020 (in thousands) Remainder of 2020 $ 358 2021 1,114 2022 828 2023 308 2024 258 Thereafter 67 Total minimum future rentals $ 2,933 |
Description of Business (Detail
Description of Business (Details Narrative) | Sep. 30, 2020 |
Merger and Contribution Agreement [Member] | USWS Holdings [Member] | |
Description Of Business [Line Items] | |
Equity interests ownership | 97.00% |
Significant Accounting Polici_4
Significant Accounting Policies (Details Narrative) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Line Items] | ||
Restricted cash | $ 519,000 | $ 7,610,000 |
Inventory valuation reserves | 400,000 | 600,000 |
Allowance for doubtful accounts | 9,000,000 | 22,000 |
Accrued for payment of interest and penalties | 0 | |
Senior Secured Term Loan [Member] | ||
Accounting Policies [Line Items] | ||
Long term debt fair value | 193,900,000 | |
Workers’ Compensation Obligations [Member] | ||
Accounting Policies [Line Items] | ||
Restricted cash | $ 500,000 | 500,000 |
Approved Fleet Expansion [Member] | ||
Accounting Policies [Line Items] | ||
Restricted cash | $ 7,100,000 |
Significant Accounting Polici_5
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 519 | $ 33,794 | ||
Restricted cash | 519 | 7,610 | ||
Cash and cash equivalents and restricted cash | $ 1,038 | $ 41,404 | $ 32,796 | $ 30,036 |
Significant Accounting Polici_6
Significant Accounting Policies (Details 1) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenues [Member] | |||||
Concentration risk, Percentage | 10.00% | ||||
Revenues [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||
Concentration risk, Percentage | 21.80% | 13.50% | 16.30% | ||
Revenues [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||
Concentration risk, Percentage | 23.60% | 17.10% | |||
Revenues [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||||
Concentration risk, Percentage | 21.50% | 10.10% | 17.50% | ||
Revenues [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |||||
Concentration risk, Percentage | 16.10% | 17.40% | |||
Revenues [Member] | Customer Concentration Risk [Member] | Customer E [Member] | |||||
Concentration risk, Percentage | 18.00% | 13.70% | |||
Revenues [Member] | Customer Concentration Risk [Member] | Customer F [Member] | |||||
Concentration risk, Percentage | 26.00% | 17.10% | |||
Revenues [Member] | Customer Concentration Risk [Member] | Customer G [Member] | |||||
Concentration risk, Percentage | 20.00% | 16.90% | |||
Revenues [Member] | Customer Concentration Risk [Member] | Customer I [Member] | |||||
Concentration risk, Percentage | 10.90% | ||||
Trade Receivables [Member] | |||||
Concentration risk, Percentage | 10.00% | ||||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||
Concentration risk, Percentage | 12.00% | ||||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||
Concentration risk, Percentage | 25.90% | 10.30% | |||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||||
Concentration risk, Percentage | 14.60% | ||||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer D [Member] | |||||
Concentration risk, Percentage | 12.10% | ||||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer E [Member] | |||||
Concentration risk, Percentage | 14.00% | ||||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer F [Member] | |||||
Concentration risk, Percentage | 13.40% | ||||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer G [Member] | |||||
Concentration risk, Percentage | 23.50% | 34.50% | |||
Trade Receivables [Member] | Customer Concentration Risk [Member] | Customer H [Member] | |||||
Concentration risk, Percentage | 15.90% |
Significant Accounting Polici_7
Significant Accounting Policies (Parenthetical) (Details 1) | 9 Months Ended |
Sep. 30, 2020 | |
Revenues [Member] | |
Concentration risk, Percentage | 10.00% |
Trade Receivables [Member] | |
Concentration risk, Percentage | 10.00% |
Prepaids and Other Current As_3
Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid insurance | $ 3,847 | $ 11,127 |
Income tax receivable | 1,567 | 810 |
Other current assets | 5,029 | 1,395 |
Total prepaid expenses and other current assets | $ 10,443 | $ 13,332 |
Prepaids and Other Current As_4
Prepaids and Other Current Assets (Details Narrative) $ in Millions | Sep. 30, 2020USD ($) |
Other Current Assets [Member] | |
Prepaid And Other Current Assets [Line Items] | |
Recoverable costs from insurance | $ 3.1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 14,191 | $ 26,087 |
Accumulated Amortization | 483 | 4,261 |
Net Book Value | $ 13,708 | $ 21,826 |
Trademarks [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 10 years | 10 years |
Gross Carrying Value | $ 1,415 | $ 3,132 |
Accumulated Amortization | 104 | 913 |
Net Book Value | $ 1,311 | $ 2,219 |
Patents [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Estimated Useful Life (in years) | 20 years | 20 years |
Gross Carrying Value | $ 12,776 | $ 22,955 |
Accumulated Amortization | 379 | 3,348 |
Net Book Value | $ 12,397 | $ 19,607 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 0.2 | $ 1.9 | $ 0.8 | $ 5.7 | |
Intangible Assets [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Impairment charge | $ 7.2 | ||||
Intangible Assets [Member] | Maximum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Impairment charge | 21.4 | ||||
Intangible Assets [Member] | Minimum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Impairment charge | $ 14.2 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 242 | |
2021 | 966 | |
2022 | 966 | |
2023 | 966 | |
2024 | 966 | |
Thereafter | 9,602 | |
Net Book Value | $ 13,708 | $ 21,826 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 275,152 | $ 705,578 |
Less: Accumulated depreciation and amortization | (32,342) | (263,968) |
Property and equipment, net | 242,810 | 441,610 |
Fracturing Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 258,218 | 651,162 |
Fracturing Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 1 year 6 months | |
Fracturing Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 25 years | |
Light Duty Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,184 | 8,188 |
Estimated Useful Life | 5 years | |
Furniture and fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 67 | 277 |
Estimated Useful Life | 5 years | |
IT Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,676 | 6,724 |
Estimated Useful Life | 3 years | |
Auxiliary Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 12,720 | 38,502 |
Auxiliary Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 2 years | |
Auxiliary Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Life | 20 years | |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 287 | $ 725 |
Estimated Useful Life | Term of lease |
Property and Equipment, Net - (
Property and Equipment, Net - (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | $ 16,393 | $ 39,723 | $ 65,759 | $ 117,888 | |
Property and Equipment [Member] | |||||
Property Plant And Equipment [Line Items] | |||||
Depreciation and amortization | $ 16,200 | $ 37,800 | $ 64,900 | $ 112,200 | |
Impairment charge | $ 140,300 | ||||
Property and Equipment [Member] | Maximum [Member] | |||||
Property Plant And Equipment [Line Items] | |||||
Impairment charge | 414,100 | ||||
Property and Equipment [Member] | Minimum [Member] | |||||
Property Plant And Equipment [Line Items] | |||||
Impairment charge | $ 273,800 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables And Accruals [Abstract] | ||
Accrued payroll and benefits | $ 5,011 | $ 9,356 |
Accrued taxes | 5,013 | 9,817 |
Accrued interest | 217 | 18,190 |
Other current liabilities | 1,901 | 3,118 |
Accrued expenses and other current liabilities | $ 12,142 | $ 40,481 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Short Term Debt [Line Items] | ||
Notes payable, current portion | $ 1,867 | $ 8,068 |
Premium Finance Agreement [Member] | Directors and Officers Liability, General liability, Workers' Compensation, Umbrella, Auto and Pollution Coverage [Member] | ||
Short Term Debt [Line Items] | ||
Short term debt, term | Notes payable represents premium finance agreements with a credit finance institution to pay the premiums on insurance policies for the Company’s directors’ and officers’ liability, general liability, workers’ compensation, umbrella, auto and pollution coverage needs. These premium finance agreements had total balances of $1.9 million and $8.1 million as of September 30, 2020 and December 31, 2019, respectively | |
Notes payable, current portion | $ 1,900 | $ 8,100 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Capital leases | $ 6,201 | $ 10,474 |
Total debt principal balance | 292,356 | 316,629 |
Unamortized discount on debt and debt issuance costs | (21,608) | (9,449) |
Current maturities | (9,674) | (22,288) |
Net Long-term debt | 261,074 | 284,892 |
Senior Secured Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility | 247,500 | 250,000 |
ABL Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility | 14,939 | 40,090 |
PPP Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility | 10,000 | |
Equipment Financing [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility | $ 13,716 | $ 16,065 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Millions | Apr. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Term Loan Amendment [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, reduction percentage | 0.00% | ||
Debt instrument, floor interest rate percentage | 2.00% | ||
Line of credit facility, interest rate | 8.25% | ||
Debt instrument periodic payment percentage of principal amount. | 0.50% | ||
Debt instrument, frequency of periodic payment | quarterly | ||
Debt instrument, extended maturity date | Dec. 5, 2025 | ||
Senior Secured Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, principle amount | $ 2.5 | ||
Debt instrument, interest payment | 24.3 | ||
Debt Instrument, accrued interest payment | $ 17.9 | ||
Debt Instrument, interest incurred | $ 6.4 |
Debt - (Details Narrative 2)
Debt - (Details Narrative 2) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Term Loan Amendment [Member] | |
Debt Instrument [Line Items] | |
Gain recognized | $ 0 |
Debt - (Details Narrative 3)
Debt - (Details Narrative 3) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Common Class A [Member] | |||
Debt Instrument [Line Items] | |||
Common stock | $ 7 | $ 5 | |
Term Loan Amendment [Member] | Senior Secured Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Extension fee | $ 20,000 | ||
Term Loan Amendment [Member] | Senior Secured Term Loan [Member] | Series B Preferred Stock [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, floor interest rate percentage | 1,050 | ||
Preferred stock, liquidation preference value | $ 1,100 | ||
Preferred stock, liquidation preference per share | $ 1,000 | ||
Term Loan Amendment [Member] | Senior Secured Term Loan [Member] | Common Class A [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, floor interest rate percentage | 5,529,622 | ||
Common stock | $ 1,400 |
Debt - (Details Narrative 4)
Debt - (Details Narrative 4) - ABL Amendment [Member] - USD ($) | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Sep. 30, 2020 | Apr. 01, 2020 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 60,000,000 | $ 75,000,000 | ||
Line of credit facility, extend maturity description | the maturity date was extended from May 7, 2024 to April 1, 2025 | |||
Line of credit facility, maturity date | May 7, 2024 | |||
Line of credit facility, extended maturity date | Apr. 1, 2025 | |||
Line of credit facility, percentage increase in interest rate | 0.50% | |||
Debt instrument, floor interest rate percentage | 1.00% | |||
Line of credit facility, available borrowing capacity | $ 4,000,000 | |||
Line of credit facility, eligible accounts receivable percentage | 5.00% | |||
Line of credit facility, FILO amount accrue interest rate percentage | 1.50% |
Debt - (Details Narrative 5)
Debt - (Details Narrative 5) - Second ABL Amendment [Member] - USD ($) | Aug. 31, 2020 | Aug. 01, 2020 | Jul. 31, 2020 |
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | $ 60,000,000 | |
Unamortized deferred financing cost | $ 200,000 |
Debt (Details Narrative 6)
Debt (Details Narrative 6) - ABL Credit Facility [Member] | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 25,700,000 |
Outstanding revolver loan | $ 14,900,000 |
Debt (Details Narrative 7)
Debt (Details Narrative 7) - Paycheck Protection Program CARES Act [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Unsecured loan received | $ 10 |
Unsecured loan interest rate | 1.00% |
Unsecured loan maturity term | 5 years |
Percentage of minimum amount of unsecured loan used for payroll cost | 60.00% |
Debt (Details Narrative 8)
Debt (Details Narrative 8) - Equipment Financing [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Credit Facility | $ 13.7 | |
Equipment financing agreements interest rate | 5.70% | |
Equipment financing agreements payment term | payable in equal monthly installments through May 1, 2024 | |
Debt instrument, weighted average interest rate of amount outstanding | 5.70% | 6.40% |
Debt (Details 1)
Debt (Details 1) $ in Thousands | Sep. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2020 | $ 7,052 |
2021 | 3,519 |
2022 | 7,462 |
2023 | 8,930 |
2024 | 6,705 |
Thereafter | 258,688 |
Principal Amount of Long-term Debt | $ 292,356 |
Mezzanine Equity (Details Narra
Mezzanine Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | May 24, 2019 |
Series A Redeemable Convertible Preferred Stock [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Mezzanine Equity, par value | $ 0.0001 | $ 0.0001 | ||||||
Conversion of Series A preferred stock to Class A common stock, shares | 3,000 | 3,000 | ||||||
Conversion of Series A preferred stock to Class A common stock | $ 4,700 | $ (4,691) | ||||||
Number of shares outstanding | 52,000 | 52,000 | 55,000 | |||||
Dividends accrued on preferred stock | $ 9,500 | |||||||
Series A Redeemable Convertible Preferred Stock [Member] | Private Placement [Member] | Purchasers [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Number of additional warrants issued to the purchasers | 1,466,664 | 1,466,664 | 4,399,992 | |||||
Warrants outstanding | 488,888 | |||||||
Common Class A [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Number of Class A common stock converted from accrued dividends | 523,973 | 523,973 | ||||||
Number of shares issued upon conversion | 9,146,254 | 9,146,254 | ||||||
Average daily trading volume of common stock | 250,000 | |||||||
Conversion of common stock consecutive trading period | 20 days | |||||||
Common stock maximum trading period | 30 days | |||||||
Series B Convertible Redeemable Preferred Stock [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Mezzanine Equity, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Number of shares outstanding | 22,050 | 22,050 | 0 | |||||
Dividends accrued on preferred stock | $ 681 | $ 1,347 | ||||||
Number of shares issued | 22,050 | 22,050 | 0 | |||||
Temporary equity, conversion price per share | $ 0.308 | |||||||
Series B Convertible Redeemable Preferred Stock [Member] | Minimum [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Temporary equity to conversion of preferred stock | $ 1,000 | |||||||
Series B Convertible Redeemable Preferred Stock [Member] | Private Placement [Member] | Purchasers [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Number of shares issued | 21,000 | |||||||
Gross proceeds from convertible preferred stock | $ 21,000 | |||||||
Percentage of warrants ownership interest | 36.67% | |||||||
Series A Convertible Redeemable Preferred Stock [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Mezzanine Equity, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Number of shares outstanding | 52,000 | 52,000 | 55,000 | |||||
Dividends accrued on preferred stock | $ 1,854 | $ 1,670 | $ 5,450 | $ 2,330 | ||||
Number of shares issued | 52,000 | 52,000 | 55,000 | |||||
Series A Convertible Redeemable Preferred Stock [Member] | Minimum [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Temporary equity, minimum percentage of conversion price to the closing price | 130.00% | |||||||
Common Class B [Member] | ||||||||
Temporary Equity [Line Items] | ||||||||
Number of shares issued upon conversion | 75,966,724 | 75,966,724 |
Mezzanine Equity (Details)
Mezzanine Equity (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($)shares | Sep. 30, 2020USD ($)shares | |
Series A Redeemable Convertible Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Preferred stock as of December 31, 2019, shares | shares | 55,000 | |
Preferred stock as of December 31, 2019 | $ 38,928 | |
Deemed and imputed dividends on Series A preferred stock | 11,220 | |
Accrued preferred stock dividends | $ 5,450 | |
Conversion of Series A preferred stock to Class A common stock, shares | shares | (3,000) | (3,000) |
Conversion of Series A preferred stock to Class A common stock | $ 4,700 | $ (4,691) |
Preferred stock as of June 30, 2020, shares | shares | 52,000 | 52,000 |
Preferred stock as of September 30, 2020 | $ 50,907 | $ 50,907 |
Series B Convertible Redeemable Preferred Stock [Member] | ||
Temporary Equity [Line Items] | ||
Preferred stock as of December 31, 2019, shares | shares | 0 | |
Proceeds from issuance of Series B preferred stock, shares | shares | 21,000 | 21,000 |
Proceeds from issuance of Series B preferred stock | $ 21,000 | |
Issuance of Series B preferred stock to senior secured term loan lenders, shares | shares | 1,050 | |
Issuance of Series B preferred stock to senior secured term loan lenders | $ 1,050 | |
Issuance cost associated with Series B preferred stock | (1,413) | |
Accrued preferred stock dividends | $ 1,347 | |
Preferred stock as of June 30, 2020, shares | shares | 22,050 | 22,050 |
Preferred stock as of September 30, 2020 | $ 21,984 | $ 21,984 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | Jun. 26, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Class Of Stock [Line Items] | |||||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||||||
Preferred stock, authorized | 10,000,000 | 10,000,000 | |||||||
Long Term Incentive Plan [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares of Restricted Stock Granted | 5,053,961 | ||||||||
USWS Holdings [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 3.00% | 3.00% | |||||||
Public Warrants [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Warrants outstanding | 9,994,635 | 9,994,635 | |||||||
Private Placement Warrant [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Warrants outstanding | 15,500,000 | 15,500,000 | |||||||
Common Class A [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common stock, authorized | 400,000,000 | 400,000,000 | 400,000,000 | ||||||
Common stock, issued | 71,413,883 | 71,413,883 | 62,857,624 | ||||||
Common stock, outstanding | 71,413,883 | 71,413,883 | 54,588,775 | 68,361,213 | 62,857,624 | 54,607,462 | 49,254,760 | ||
Common stock maximum trading period | 30 days | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | 2,711,961 | 3,197,756 | 161,932 | ||||||
Warrants issued to purchase stock | 12,747,318 | 12,747,318 | |||||||
Shares of Restricted Stock Granted | 2,218,183 | ||||||||
Common Class A [Member] | Long Term Incentive Plan [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common Stock Available For Issuance | 8,160,500 | ||||||||
Common Class A [Member] | Purchasers [Member] | Private Placement Warrant [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Warrants outstanding | 4,399,997 | 4,399,997 | |||||||
Common Class A [Member] | ATM Agreement [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Shares issued | 400 | ||||||||
Net proceeds | two hundred and two dollars and seventy six cents | ||||||||
Payments for commission | six dollars and twenty four cents | ||||||||
Common Class A [Member] | ATM Agreement [Member] | Piper Sandler & Co. [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common Stock, Shares Authorized | $ 10,300,000 | ||||||||
Common Class A [Member] | ATM Agreement [Member] | Piper Sandler & Co. [Member] | Maximum [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Sale of common stock commission on gross sale price | 3.00% | ||||||||
Common Class A [Member] | Stock Price Equaled or Exceeded 12.00 [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares outstanding subject to cancellation | 1,000,000 | 1,000,000 | |||||||
Closing price per share | $ 12 | $ 12 | |||||||
Common stock maximum trading period | 30 days | ||||||||
Common Class A [Member] | Stock Price 13.50 [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, shares outstanding subject to cancellation | 609,677 | 609,677 | |||||||
Closing price per share | $ 13.50 | $ 13.50 | |||||||
Common Class B [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common stock, authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||||
Common stock, issued | 2,302,936 | 2,302,936 | 5,500,692 | ||||||
Common stock, outstanding | 2,302,936 | 2,302,936 | 13,775,400 | 5,014,897 | 5,500,692 | 13,775,400 | 13,937,332 | ||
Common stock, voting rights | one | ||||||||
Conversion of Class B common stock to Class A common stock (in shares) | (2,711,961) | (3,197,756) | (161,932) | ||||||
Series A Convertible Redeemable Preferred Stock [Member] | Purchasers [Member] | Private Placement Warrant [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Warrants outstanding | 4,399,997 | 4,399,997 | |||||||
Warrants issued to purchase stock | 4,399,997 | 4,399,997 |
Earnings (Loss) Per Share - (De
Earnings (Loss) Per Share - (Details Narrative) - shares | Nov. 09, 2024 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Earnings Per Share Basic [Line Items] | |||||
Basic and diluted net income (loss) per share excludes the income (loss) attributable and shares associated to cancellation | 1,609,677 | 1,609,677 | 1,609,677 | 1,609,677 | |
Class A Common Stock [Member] | Scenario, Forecast [Member] | |||||
Earnings Per Share Basic [Line Items] | |||||
Basic and diluted net income (loss) per share excludes the income (loss) attributable and shares associated to cancellation | 1,609,677 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic Net Income (Loss) Per Share | ||||
Net loss attributable to U.S. Well Services, Inc. | $ (15,937) | $ (16,969) | $ (206,441) | $ (60,720) |
Net loss attributable to cancellable Class A common stock | 376 | 527 | 5,109 | 1,924 |
Basic net loss attributable to U.S. Well Services, Inc. shareholders | (15,561) | (16,442) | (201,332) | (58,796) |
Deemed and imputed dividends on Series A preferred stock | (467) | (4,406) | (11,220) | (5,966) |
Basic net loss attributable to U.S. Well Services, Inc. Class A common shareholders | $ (18,563) | $ (22,518) | $ (219,349) | $ (67,092) |
Weighted average shares outstanding | 68,276,671 | 51,859,283 | 65,040,390 | 50,791,787 |
Cancellable Class A common stock | (1,609,677) | (1,609,677) | (1,609,677) | (1,609,677) |
Basic and diluted weighted average shares outstanding | 66,666,994 | 50,249,606 | 63,430,713 | 49,182,110 |
Basic and diluted net income (loss) per share attributable to Class A common shareholders | $ (0.28) | $ (0.45) | $ (3.46) | $ (1.36) |
Series A Convertible Redeemable Preferred Stock [Member] | ||||
Basic Net Income (Loss) Per Share | ||||
Dividends accrued on preferred stock | $ (1,854) | $ (1,670) | $ (5,450) | $ (2,330) |
Series B Convertible Redeemable Preferred Stock [Member] | ||||
Basic Net Income (Loss) Per Share | ||||
Dividends accrued on preferred stock | $ (681) | $ (1,347) |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details1) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 106,932,656 | 41,848,881 | 106,932,656 | 41,848,881 |
Anti-dilutive Stock Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 877,266 | 1,068,162 | 877,266 | 1,068,162 |
Anti-dilutive Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 17,147,315 | 15,680,651 | 17,147,315 | 15,680,651 |
Anti-dilutive Restricted Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 1,492,161 | 2,729,496 | 1,492,161 | 2,729,496 |
Anti-dilutive Class B Common Stock Convertible into Class A Common Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 2,302,936 | 13,775,400 | 2,302,936 | 13,775,400 |
Anti-dilutive Series A Preferred Stock Convertible into Class A Common Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 9,146,254 | 8,595,172 | 9,146,254 | 8,595,172 |
Anti-dilutive Series B Preferred Stock Convertible into Class A Common Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities excluded as anti-dilutive | 75,966,724 | 75,966,724 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 1,037 | $ 2,306 | $ 4,519 | $ 5,672 |
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | 819 | 1,937 | 3,832 | 4,788 |
Unrestricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | 104 | 312 | ||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 218 | $ 265 | $ 687 | $ 572 |
Share-Based Compensation (Paren
Share-Based Compensation (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 1,037 | $ 2,306 | $ 4,519 | $ 5,672 |
Cost of Services [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | (97) | 757 | 1,106 | 1,835 |
Selling, General and Administrative Expenses [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 1,134 | $ 1,549 | $ 3,413 | $ 3,837 |
Share-Based Compensation (Det_2
Share-Based Compensation (Details 1) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested shares, Beginning balance | shares | 2,723,637 |
Unvested shares, Vested | shares | (690,237) |
Unvested shares, Forfeited | shares | (541,239) |
Unvested shares, Ending balance | shares | 1,492,161 |
Weighted-average grant-date fair value per share at beginning of period | $ / shares | $ 8.87 |
Weighted-average grant-date fair value per share, Vested | $ / shares | 8.87 |
Weighted-average grant-date fair value per share, Forfeited | $ / shares | 8.85 |
Weighted-average grant-date fair value per share at end of period | $ / shares | $ 8.88 |
Share-Based Compensation (Det_3
Share-Based Compensation (Details 2) - Stock Options [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares, Beginning balance | 1,068,162 | |
Number of shares, Forfeited/Expired | (190,896) | |
Number of shares, Ending balance | 877,266 | 1,068,162 |
Number of shares, Exercisable | 219,317 | |
Weighted average exercise price, Beginning of period | $ 8.91 | |
Weighted average exercise price, Forfeited/Expired | 8.91 | |
Weighted average exercise price, Ending of period | 8.91 | $ 8.91 |
Weighted average exercise price, Exercisable | $ 8.91 | |
Weighted average remaining contractual term | 5 years 5 months 15 days | 6 years 2 months 15 days |
Weighted average remaining contractual term, Exercisable | 5 years 5 months 15 days |
Share-Based Compensation (Det_4
Share-Based Compensation (Details Narrative) - Stock Options [Member] - Long Term Incentive Plan [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock-based compensation to be recognized | $ 10.7 |
Period for recognition of unrecognized compensation cost | 2 years 4 months 24 days |
Employee Benefit Plan - (Detail
Employee Benefit Plan - (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution | 100.00% | |||
Employer matching contributions | $ 0 | $ 1.1 | $ 1 | $ 3.8 |
Defined contribution plan, vesting period | 2 years | |||
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plan, percent of employees' gross pay | 6.00% |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | Mar. 27, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||||
Net operating loss, amount claim for refund due to CARES Act | $ 800,000 | |||
Net operating loss carryback description | 5-year carryback of net operating loss (“NOL”) tax carryforwards generated in tax years 2018, 2019, and 2020, removing the 80% taxable income limitation on utilization of those NOLs if carried back to prior tax years or utilized in tax years beginning before 2021 | |||
Net operating loss carryback period due to CARES Act | 5 years | |||
Net operating loss carryforwards, percentage of taxable income removed due to CARES Act | 80.00% | |||
Effective tax rate on continuing operations | (0.38%) | |||
Uncertain tax positions | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Contracted | |
Remainder of 2020 | $ 7,758 |
2021 | 11,340 |
Total | 19,098 |
Minimum Commitments | |
Remainder of 2020 | 4,027 |
2021 | 960 |
Total | $ 4,987 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions | Apr. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||||||
Excluded amount of contracted | $ 47.1 | $ 47.1 | ||||
Excluded amount of minimum commitments | 48 | 48 | ||||
Rent expense | $ 0.7 | 0.7 | $ 0.7 | 1.8 | $ 2 | |
Expected term of operating leases for facilities | 36 months | |||||
Operating lease agreement, commencement date | Apr. 1, 2020 | |||||
Future minimum lease payment related to capital leases due in the remainder of 2020 | 6.4 | 6.4 | ||||
Imputed interest | 0.2 | 0.2 | ||||
Estimated claims incurred, but not reported | 0.3 | 0.3 | $ 0.6 | |||
Cost of Services [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Rent expense | 0.4 | 0.6 | 1.1 | 1.6 | ||
Selling, General and Administrative Expenses [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Rent expense | $ 0.3 | $ 0.1 | $ 0.7 | $ 0.4 | ||
Minimum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Term of operating leases for facilities | 24 months | 24 months | ||||
Maximum [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Term of operating leases for facilities | 76 months | 76 months |
Commitments and Contingencies_3
Commitments and Contingencies - (Details1) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2020 | $ 358 |
2021 | 1,114 |
2022 | 828 |
2023 | 308 |
2024 | 258 |
Thereafter | 67 |
Total minimum future rentals | $ 2,933 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - Series B Convertible Redeemable Preferred Stock [Member] - USD ($) $ in Millions | Apr. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Proceeds from issuance of Series B preferred stock, shares | 22,050 | 0 | |
Rockwater Energy Solutions [Member] | Crestview Partners (“Crestview”) [Member] | |||
Proceeds from issuance of Series B preferred stock, shares | 11,500 | ||
Amount of stock held by related party | $ 11.5 | ||
Rockwater Energy Solutions [Member] | TCW Group Inc [Member] | |||
Proceeds from issuance of Series B preferred stock, shares | 6,500 | ||
Amount of stock held by related party | $ 6.5 | ||
Rockwater Energy Solutions [Member] | David Matlin [Member] | |||
Proceeds from issuance of Series B preferred stock, shares | 1,878 | ||
Amount of stock held by related party | $ 1.9 |