Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 10, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-24575 | |
Entity Registrant Name | STABILIS SOLUTIONS, INC. | |
Entity Central Index Key | 0001043186 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-3410234 | |
Entity Address, Address Line One | 10375 Richmond Avenue | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77042 | |
City Area Code | 832 | |
Local Phone Number | 456-6500 | |
Entity Information, Former Legal or Registered Name | Stabilis Energy, Inc. | |
Title of 12(b) Security | Common Stock, $.001 par value per share | |
Trading Symbol | SLNG | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,896,626 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,410,000 | $ 3,979,000 |
Accounts receivable, net | 1,993,000 | 5,945,000 |
Inventories, net | 161,000 | 209,000 |
Prepaid expenses and other current assets | 3,712,000 | 3,583,000 |
Total current assets | 9,276,000 | 13,716,000 |
Property, plant and equipment, net | 53,852,000 | 60,363,000 |
Right-of-use assets | 881,000 | 965,000 |
Goodwill | 4,453,000 | 4,453,000 |
Investments in foreign joint ventures | 10,316,000 | 10,521,000 |
Other noncurrent assets | 306,000 | 308,000 |
Total assets | 79,084,000 | 90,326,000 |
Current liabilities: | ||
Current portion of long-term notes payable | 447,000 | 0 |
Current portion of long-term notes payable - related parties | 2,737,000 | 1,000,000 |
Current portion of finance lease obligation - related parties | 1,312,000 | 3,440,000 |
Current portion of operating lease obligations | 383,000 | 364,000 |
Short-term notes payable | 744,000 | 558,000 |
Accrued liabilities | 4,116,000 | 5,018,000 |
Accounts payable | 3,273,000 | 4,728,000 |
Total current liabilities | 13,012,000 | 15,108,000 |
Long-term notes payable, net of current portion | 633,000 | 0 |
Long-term notes payable, net of current portion - related parties | 3,340,000 | 6,077,000 |
Finance lease obligations, net of current portion - related parties | 0 | 648,000 |
Long-term portion of operating lease obligations | 565,000 | 650,000 |
Deferred compensation | 72,000 | 0 |
Deferred income taxes | 32,000 | 0 |
Total liabilities | 17,654,000 | 22,483,000 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred Stock; $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 0 | 0 |
Common stock; $0.001 par value, 37,500,000 shares authorized, 16,896,626 and 16,800,612 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively (Note 14) | 17,000 | 17,000 |
Additional paid-in capital | 91,092,000 | 90,748,000 |
Accumulated other comprehensive loss | (402,000) | (291,000) |
Accumulated deficit | (29,277,000) | (22,631,000) |
Total stockholders’ equity | 61,430,000 | 67,843,000 |
Total liabilities and equity | $ 79,084,000 | $ 90,326,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 37,500,000 | 37,500,000 |
Common stock, shares issued (in shares) | 16,896,626 | 16,800,612 |
Common stock, shares, outstanding (in shares) | 16,896,626 | 16,800,612 |
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 | ||||
Total revenues | $ 9,019 | $ 10,514 | $ 27,860 | $ 34,584 |
Operating expenses: | ||||
Selling, general and administrative expenses | 2,338 | 3,781 | 7,892 | 8,139 |
Depreciation expense | 2,266 | 2,307 | 6,802 | 6,892 |
Total operating expenses | 11,452 | 13,768 | 34,898 | 38,764 |
Loss from operations before equity income | (2,433) | (3,254) | (7,038) | (4,180) |
Net equity income from foreign joint ventures' operations: | ||||
Income from equity investments in foreign joint ventures | 642 | 187 | 1,529 | 187 |
Foreign joint ventures' operations related expenses | (69) | (52) | (182) | (52) |
Net equity income from foreign joint ventures' operations | 573 | 135 | 1,347 | 135 |
Loss from operations | (1,860) | (3,119) | (5,691) | (4,045) |
Other income (expense): | ||||
Interest expense, net | (2) | (33) | (28) | (37) |
Interest expense, net - related parties | (199) | (306) | (681) | (910) |
Other income (expense) | (31) | 124 | (6) | 61 |
Gain from disposal of fixed assets | 0 | 17 | 11 | 17 |
Total other income (expense) | (232) | (198) | (704) | (869) |
Loss before income tax expense | (2,092) | (3,317) | (6,395) | (4,914) |
Income tax expense | 41 | 38 | 251 | 38 |
Net loss | (2,133) | (3,355) | (6,646) | (4,952) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 207 |
Net loss attributable to Stabilis Solutions, Inc. | $ (2,133) | $ (3,355) | $ (6,646) | $ (5,159) |
Net loss per common share: | ||||
Net loss per common share, basic and diluted (in usd per share) | $ (0.13) | $ (0.22) | $ (0.39) | $ (0.37) |
Weighted average number of common shares outstanding: | ||||
Weighted average number of common shares outstanding, basic and diluted (in shares) | 16,896,626 | 15,070,733 | 16,867,939 | 13,816,341 |
LNG Product | ||||
Revenue | ||||
Total revenues | $ 6,594 | $ 7,919 | $ 18,609 | $ 26,872 |
Operating expenses: | ||||
Cost of revenue | 5,044 | 5,441 | 13,692 | 19,051 |
Rental, service and other | ||||
Revenue | ||||
Total revenues | 1,073 | 1,224 | 5,613 | 6,341 |
Operating expenses: | ||||
Cost of revenue | 808 | 1,095 | 3,381 | 3,538 |
Power delivery | ||||
Revenue | ||||
Total revenues | 1,352 | 1,371 | 3,638 | 1,371 |
Operating expenses: | ||||
Cost of revenue | $ 996 | $ 1,144 | $ 3,131 | $ 1,144 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,133) | $ (3,355) | $ (6,646) | $ (4,952) |
Foreign currency translation adjustment | 424 | (530) | (111) | (530) |
Total comprehensive loss | (1,709) | (3,885) | (6,757) | (5,482) |
Total comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 207 |
Total comprehensive loss attributable to Stabilis Solutions, Inc. | $ (1,709) | $ (3,885) | $ (6,757) | $ (5,689) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-controlling Interest |
Balance, beginning at Dec. 31, 2018 | $ 52,664 | $ 13 | $ 68,244 | $ 0 | $ (16,916) | $ 1,323 |
Balance, beginning (in shares) at Dec. 31, 2018 | 13,178,750 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (559) | (738) | 179 | |||
Balance, ending at Mar. 31, 2019 | 52,105 | $ 13 | 68,244 | 0 | (17,654) | 1,502 |
Balance, ending (in shares) at Mar. 31, 2019 | 13,178,750 | |||||
Balance, beginning at Dec. 31, 2018 | 52,664 | $ 13 | 68,244 | 0 | (16,916) | 1,323 |
Balance, beginning (in shares) at Dec. 31, 2018 | 13,178,750 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (4,952) | |||||
Other comprehensive income (loss) | (530) | |||||
Balance, ending at Sep. 30, 2019 | 68,160 | $ 17 | 90,748 | (530) | (22,075) | 0 |
Balance, ending (in shares) at Sep. 30, 2019 | 16,800,612 | |||||
Balance, beginning at Mar. 31, 2019 | 52,105 | $ 13 | 68,244 | 0 | (17,654) | 1,502 |
Balance, beginning (in shares) at Mar. 31, 2019 | 13,178,750 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (1,038) | (1,066) | 28 | |||
Balance, ending at Jun. 30, 2019 | 51,067 | $ 13 | 68,244 | 0 | (18,720) | 1,530 |
Balance, ending (in shares) at Jun. 30, 2019 | 13,178,750 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Recapitalization due to reverse merger | 11,089 | $ 1 | 12,618 | (1,530) | ||
Recapitalization due to reverse merger (in shares) | 1,466,092 | |||||
Shares issued in extinguishment of debt | 6,889 | $ 2 | 6,887 | |||
Shares issued in extinguishment of debt (in shares) | 1,470,807 | |||||
Shares issued in acquisition of Diversenergy | 3,000 | $ 1 | 2,999 | |||
Shares issued in acquisition of Diversenergy (in shares) | 684,963 | |||||
Net loss | (3,355) | (3,355) | ||||
Other comprehensive income (loss) | (530) | (530) | ||||
Balance, ending at Sep. 30, 2019 | 68,160 | $ 17 | 90,748 | (530) | (22,075) | 0 |
Balance, ending (in shares) at Sep. 30, 2019 | 16,800,612 | |||||
Balance, beginning at Dec. 31, 2019 | 67,843 | $ 17 | 90,748 | (291) | (22,631) | 0 |
Balance, beginning (in shares) at Dec. 31, 2019 | 16,800,612 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued (in shares) | 34,706 | |||||
Stock-based compensation | 19 | 19 | ||||
Net loss | (1,050) | (1,050) | 0 | |||
Other comprehensive income (loss) | (619) | (619) | ||||
Balance, ending at Mar. 31, 2020 | 66,193 | $ 17 | 90,767 | (910) | (23,681) | 0 |
Balance, ending (in shares) at Mar. 31, 2020 | 16,835,318 | |||||
Balance, beginning at Dec. 31, 2019 | 67,843 | $ 17 | 90,748 | (291) | (22,631) | 0 |
Balance, beginning (in shares) at Dec. 31, 2019 | 16,800,612 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (6,646) | |||||
Other comprehensive income (loss) | (111) | |||||
Balance, ending at Sep. 30, 2020 | 61,430 | $ 17 | 91,092 | (402) | (29,277) | 0 |
Balance, ending (in shares) at Sep. 30, 2020 | 16,896,626 | |||||
Balance, beginning at Mar. 31, 2020 | 66,193 | $ 17 | 90,767 | (910) | (23,681) | 0 |
Balance, beginning (in shares) at Mar. 31, 2020 | 16,835,318 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued (in shares) | 61,308 | |||||
Stock-based compensation | 139 | 139 | ||||
Net loss | (3,463) | (3,463) | ||||
Other comprehensive income (loss) | 84 | 84 | ||||
Balance, ending at Jun. 30, 2020 | 62,953 | $ 17 | 90,906 | (826) | (27,144) | 0 |
Balance, ending (in shares) at Jun. 30, 2020 | 16,896,626 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 186 | 186 | ||||
Net loss | (2,133) | (2,133) | ||||
Other comprehensive income (loss) | 424 | 424 | ||||
Balance, ending at Sep. 30, 2020 | $ 61,430 | $ 17 | $ 91,092 | $ (402) | $ (29,277) | $ 0 |
Balance, ending (in shares) at Sep. 30, 2020 | 16,896,626 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (6,646) | $ (4,952) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation expense | 6,802 | 6,892 |
Deferred income tax expense | 41 | 0 |
Stock-based compensation expense | 344 | 0 |
Bad debt expense | 144 | 147 |
Gain on disposal of fixed assets | (11) | (17) |
Gain on extinguishment of debt | 0 | (116) |
Income from equity investment in joint venture | (1,529) | (187) |
Distributions from equity investment in joint venture | 2,054 | 0 |
Deferred compensation costs | 72 | 0 |
Change in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 3,629 | 1,823 |
Due to (from) related parties | 0 | 113 |
Inventories | 48 | 67 |
Prepaid expenses and other current assets | (396) | (1,184) |
Prepaid expenses and other current assets | (2,085) | 1,117 |
Other | 0 | 18 |
Net cash provided by operating activities | 2,467 | 3,721 |
Cash flows from investing activities: | ||
Acquisition of fixed assets | (327) | (2,103) |
Proceeds on sales of fixed assets | 12 | 125 |
Net cash used in investing activities | (315) | (3,243) |
Cash flows from financing activities: | ||
Proceeds on long-term borrowings | 1,080 | 0 |
Proceeds on long-term borrowings from related parties | 0 | 5,000 |
Payments on long-term borrowings from related parties | (3,776) | (2,582) |
Proceeds from short-term notes payable | 776 | 767 |
Payments on short-term notes payable | (644) | (394) |
Net cash provided by (used in) financing activities | (2,564) | 2,791 |
Effect of exchange rate changes on cash | (157) | 0 |
Net increase (decrease) in cash and cash equivalents | (569) | 3,269 |
Cash and cash equivalents, beginning of period | 3,979 | 1,247 |
Cash and cash equivalents, end of period | 3,410 | 4,516 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 834 | 1,108 |
Income taxes paid | 210 | 0 |
Non-cash investing and financing activities: | ||
Extinguishment of long-term debt through issuance of common stock | 0 | 7,000 |
American Electric | ||
Cash flows from investing activities: | ||
Acquisition, net of cash received | 0 | (1,876) |
Diversenergy | ||
Cash flows from investing activities: | ||
Acquisition, net of cash received | $ 0 | $ 611 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation Overview Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) produce, market, and sell liquefied natural gas (“LNG”). The Company also resells liquefied natural gas from third parties and provides services, transportation, and equipment to customers. The Company changed its name from Stabilis Energy, Inc. to Stabilis Solutions, Inc. on October 9, 2020. The Company is a supplier of LNG to the industrial, midstream, and oilfield sectors in North America and provides turnkey fuel solutions to help industrial users of propane, diesel and other crude-based fuel products convert to LNG, which may result in reduced fuel costs and improved environmental footprint. Stabilis opened its 100,000 gallons per day (“gpd”) LNG production facility in George West, Texas in January 2015 to service industrial and oilfield customers in Texas and the greater Gulf Coast region. The Company owns a second liquefaction plant capable of producing 25,000 gpd that is currently not in operation. Stabilis is vertically integrated from LNG production through distribution including cryogenic equipment rental and field services. The Company also provides power delivery equipment and services through its subsidiary in Brazil, M&I Electric Brazil Sistemas e Servicios em Energia LTDA (“M&I Brazil”) and its 40% interest in a joint venture in China, BOMAY Electric Industries Co., Ltd. (“BOMAY”). Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements include our accounts and those of our subsidiaries and, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in the notes to condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2019 included in the Company's Annual Report on Form 10-K, as filed on March 16, 2020. All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements (Unaudited), all dollar amounts in tabulations are in thousands, unless otherwise indicated. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is required to make certain disclosures if it concludes that there is substantial doubt about the entity’s ability to continue as a going concern within one year from the date of the issuance of these financial statements. The Company has incurred recurring operating losses and has negative working capital. The Company is subject to substantial business risks and uncertainties inherent in the current LNG industry. Additionally, the impact of the COVID-19 pandemic has created additional uncertainties regarding the future demand for LNG from our customers. There is no assurance that the Company will be able to generate sufficient revenues in the future to sustain itself or to support future growth. These factors were reviewed by management to determine if there was substantial doubt as to the Company’s ability to continue as a going concern. Management concluded that its plan to address the Company’s liquidity issues would allow it to continue as a going concern. A number of cost control measures have been implemented, including headcount reductions, temporary salary reductions, travel reductions, elimination of certain consultants, and other measures to adjust to anticipated activity levels and maintain adequate liquidity. Furthermore, the Company has recently seen a resumption of activity with existing customers as well as new revenue opportunities, particularly in Mexico. Accordingly, management believes the business will generate sufficient cash flows from its operations to fund the business for the next 12 months. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include the carrying amount of contingencies, valuation allowances for receivables, inventories, and deferred income tax assets, valuations assigned to assets and liabilities in business combinations, and impairments of long-lived assets. Actual results could differ from those estimates, and these differences could be material to the condensed consolidated financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, “Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment” (“ASU No. 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments of ASU No. 2017-04 were adopted by the Company effective January 1, 2020. The adoption of this standard had no impact on our condensed consolidated financial position or results of operations, as the adoption is applied on a prospective basis. Recently Issued Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (ASU No. 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes and also improves consistent application by clarifying and amending existing guidance. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this guidance on our condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU No. 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU No. 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU No. 2020-04 on our condensed consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions American Electric Technologies, Inc (“American Electric”). On July 26, 2019, we completed the Share Exchange with American Electric and its subsidiaries and began operating under the name Stabilis Energy, Inc., since changed to Stabilis Solutions, Inc. Because the former owners of Stabilis Energy, LLC owned 88.4% of the voting stock of the combined company immediately following the effective date and certain other factors, including that directors designated by LNG Investment, parent of Stabilis Energy, LLC, constituted a majority of the board of directors, Stabilis Energy, LLC is treated as the acquiror of American Electric in the Share Exchange for accounting purposes. As a result, the Share Exchange is treated by American Electric as a reverse acquisition under the purchase method of accounting in accordance with US GAAP. The aggregate consideration paid in connection with the Share Exchange was allocated to American Electric’s tangible and intangible assets and liabilities based on their fair values at the time of the completion of the Share Exchange. The assets and liabilities and results of operations of American Electric are consolidated into the results of operations of Stabilis as of the completion of the Share Exchange. Consistent with the purchase method of accounting, the total purchase price is allocated to the acquired tangible and intangible assets and assumed liabilities of American Electric based on their estimated fair values as of the Share Exchange closing date. The excess of the purchase price over the fair value of the acquired assets and liabilities assumed is reflected as goodwill and is attributable to strategic advantages gained from the acquisition of a public entity with access to LNG markets in Brazil and China. All of the goodwill is assigned to the Power Delivery segment and is not expected to be deductible for income tax purposes. Diversenergy, LLC (“Diversenergy”). On August 20, 2019, we completed our acquisition of Diversenergy and its subsidiaries. We purchased all of the issued and outstanding membership interests of Diversenergy for total consideration of 684,963 shares of Company common stock valued at $3.0 million as of the closing date and $2.0 million in cash, subject to adjustments for Diversenergy’s net working capital as of the closing date. Diversenergy specializes in LNG distribution, providing LNG to customers which use it as a fuel in mobile high horsepower applications and to customers which do not have natural gas pipeline access. The completion of the acquisition will expand the Company's presence in the distributed LNG and compressed natural gas (“CNG”) markets in Mexico. Consistent with the purchase method of accounting, the total purchase price is allocated to the acquired tangible and intangible assets and assumed liabilities of Diversenergy based on their estimated fair values as of the closing date. The excess of the purchase price over the fair value of the acquired assets and liabilities assumed is reflected as goodwill and is attributable to the strategic opportunities to grow the Company's LNG and CNG business in Mexico. All of the goodwill is assigned to the LNG segment and is not expected to be deductible for income tax purposes. The assets and liabilities and results of operations of Diversenergy are consolidated into the results of operations of Stabilis as of the acquisition date. Proforma Results from Acquisitions (unaudited) The following unaudited consolidated pro forma information is presented as if the above acquisitions had occurred on January 1, 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Revenue $ 11,302 $ 38,543 Net loss (4,402) (5,846) This unaudited pro forma amounts above have been compiled from current and historical financial statements and is not necessarily indicative of the results that actually would have been achieved had the transaction occurred as of January 1, 2019 or of future operating results. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Disaggregated Revenues The table below presents revenue disaggregated by source, for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 LNG Product $ 6,594 $ 7,919 $ 18,609 $ 26,872 Rental 737 759 4,012 4,340 Service 187 7 593 689 Power Delivery 1,352 1,371 3,638 1,371 Other 149 458 1,008 1,312 $ 9,019 $ 10,514 $ 27,860 $ 34,584 See Note 5—Business Segments, below, for additional disaggregation of revenue. Contract Liabilities The Company recognizes contract liabilities upon receipt of payments for which the performance obligations have not been fulfilled at the reporting date, resulting in deferred revenue. Contract liabilities are included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. The following table presents the changes in the Company’s contract liabilities for the periods ended September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Balance at beginning of period $ 185 $ 93 Cash received, excluding amounts recognized as revenue 694 185 Amounts recognized as revenue (477) (93) Balance at end of period $ 402 $ 185 The Company has no other material contract assets or liabilities and contract costs. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company’s revenues are derived from two operating segments: LNG and Power Delivery. The LNG segment supplies LNG to multiple end markets in North America and provides turnkey fuel solutions to help users of propane, diesel and other crude-based fuel products convert to LNG. The Power Delivery segment provides power delivery equipment and services through our subsidiary in Brazil and in China through our 40% interest in BOMAY. Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in thousands) (in thousands) LNG Power Delivery Total LNG Power Delivery Total Revenues $ 7,667 $ 1,352 $ 9,019 $ 24,222 $ 3,638 $ 27,860 Depreciation 2,237 29 2,266 6,706 96 6,802 Loss from operations before equity income (2,179) (254) (2,433) (5,909) (1,129) (7,038) Net equity income from foreign joint ventures' operations — 573 573 — 1,347 1,347 Income (loss) from operations (2,179) 319 (1,860) (5,909) 218 (5,691) Net income (loss) (2,458) 325 (2,133) (6,678) 32 (6,646) September 30, 2020 (in thousands) LNG Power Delivery Total Total assets $ 65,582 $ 13,502 $ 79,084 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in thousands) (in thousands) LNG Power Delivery Total LNG Power Delivery Total Revenues $ 9,143 $ 1,371 $ 10,514 $ 33,213 $ 1,371 $ 34,584 Depreciation 2,277 30 2,307 6,862 30 6,892 Loss from operations before equity income (2,988) (266) (3,254) (3,914) (266) (4,180) Net equity income from foreign joint ventures' operations — 135 135 — 135 135 Income (loss) from operations (2,988) (131) (3,119) (3,914) (131) (4,045) Net loss (3,209) (146) (3,355) (4,806) (146) (4,952) December 31, 2019 (in thousands) LNG Power Delivery Total Total assets $ 75,883 $ 14,443 $ 90,326 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets The Company’s prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Prepaid LNG $ 55 $ 189 Prepaid insurance 967 698 Prepaid supplier expenses 295 229 Other receivables 2,046 1,655 Deposits 192 347 Other 157 465 Total prepaid expenses and other current assets $ 3,712 $ 3,583 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following (in thousands): September 30, December 31, Liquefaction plants and systems $ 40,830 $ 40,617 Real property and buildings 1,603 1,794 Vehicles and tanker trailers and equipment 46,904 46,597 Computer and office equipment 506 453 Construction in progress 174 409 Leasehold improvements 30 31 90,047 89,901 Less: accumulated depreciation (36,195) (29,538) $ 53,852 $ 60,363 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following presents changes in goodwill during 2019 (in thousands): Goodwill December 31, 2018 $ — Acquisition of American Electric 139 Acquisition of Diversenergy 4,314 December 31, 2019 4,453 Business acquisitions during the third quarter of 2019 account for the balance of goodwill as of September 30, 2020. The Company performs an impairment test for goodwill annually or more frequently if indicators of potential impairment exist. We completed our annual goodwill impairment test as of September 30, 2020 and no impairments were identified. See Note 3—Acquisitions for discussion of the acquisitions. |
Investments in Foreign Joint Ve
Investments in Foreign Joint Ventures | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Foreign Joint Ventures | Investments in Foreign Joint Ventures BOMAY. The Company holds a 40% interest in BOMAY Electric Industries Company, Ltd. (“BOMAY”), which builds electrical systems for sale in China. The majority partner in this foreign joint venture is Baoji Oilfield Machinery Co., Ltd. (a subsidiary of China National Petroleum Corporation), which owns 51%. The remaining 9% is owned by AA Energies, Inc. The Company made no sales to its joint venture in the nine months ended September 30, 2020 and 2019. Below is summary financial information for BOMAY at September 30, 2020 and December 31, 2019, and operational results for the three and nine months ended September 30, 2020 and for the period from July 27, 2019 to September 30, 2019 in U.S. dollars (in thousands, unaudited): September 30, December 31, 2019 Assets: Total current assets $ 60,324 $ 81,247 Total non-current assets 5,675 5,775 Total assets $ 65,999 $ 87,022 Liabilities and equity: Total liabilities $ 37,597 $ 58,176 Total joint ventures’ equity 28,402 28,846 Total liabilities and equity $ 65,999 $ 87,022 Three Months Ended Nine Months Ended 2020 2020 Revenue $ 17,641 $ 44,844 Gross Profit 3,224 7,456 Earnings 1,663 3,662 July - September 30, 2019 Revenue $ 8,466 Gross Profit 1,668 Earnings 467 The following is a summary of activity in our investment in BOMAY for the nine months ended September 30, 2020 and for the period from July 27, 2019 to December 31, 2019 in U.S. dollars (in thousands, unaudited): September 30, 2020 July 27, 2019 to December 31, 2019 Investments in BOMAY (1) (2) Balance at the beginning of the period $ 9,333 $ 9,333 Undistributed earnings: Balance at the beginning of the period 1,257 — Equity in earnings 1,529 1,257 Dividend distributions (2,054) — Balance at end of period 732 1,257 Foreign currency translation: Balance at the beginning of the period (69) — Change during the period 320 (69) Balance at end of period 251 (69) Total investment in BOMAY at end of period $ 10,316 $ 10,521 ________ (1) Accumulated statutory reserves in equity method investments of $2.66 million at September 30, 2020 and December 31, 2019 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. (2) The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.2 million will be accreted over the remaining eight The Company accounts for its investment in BOMAY using the equity method of accounting. Under the equity method, the Company’s share of the joint venture operations earnings or losses is recognized in the condensed consolidated statements of operations as equity income (loss) from foreign joint venture operations. Joint venture income increases the carrying value of the joint venture and joint venture losses reduce the carrying value. Dividends received from the joint venture reduce the carrying value. In accordance with our long-lived asset policy, when events or circumstances indicate the carrying amount of an asset may not be recoverable, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. In making this evaluation, a variety of quantitative and qualitative factors are considered including national and local economic, political and market conditions, industry trends and prospects, liquidity and capital resources and other pertinent factors. Based on this evaluation for this reporting period, the Company does not believe an impairment adjustment is necessary at September 30, 2020. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The Company’s accrued liabilities consisted of the following (in thousands): September 30, December 31, Compensation and benefits $ 1,709 $ 2,641 Professional fees 364 131 LNG fuel and transportation 1,051 1,582 Accrued interest 9 134 Contract liabilities 402 185 Other taxes payable 383 163 Other operating expenses 198 182 Total accrued liabilities $ 4,116 $ 5,018 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s carrying value of debt consisted of the following (in thousands): September 30, December 31, Unsecured promissory note $ 1,080 $ — Secured term note payable - related party 1,077 2,077 Secured promissory note - related party 5,000 5,000 Insurance and other notes payable 744 558 Less: amounts due within one year (3,928) (1,558) Total long-term debt $ 3,973 $ 6,077 On May 8, 2020, the Company received loan proceeds of $1.1 million (the “Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan, which is in the form of a promissory note, dated May 8, 2020, between the Company and Cadence Bank, N.A. as the lender (the “Note”), matures on May 8, 2022 and bears interest at a fixed rate of 1.00% per annum, payable monthly commencing on December 2, 2020. There is no prepayment penalty. Under the terms of the PPP, all or a portion of the principal may be forgiven if the Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities. While no assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part, management believes we currently meet the requirements and the Company intends to apply for forgiveness. With respect to any portion of the Loan that is not forgiven, the Loan will be subject to customary provisions for a loan of this type, including customary events of default relating to, among other things, payment defaults and breaches of the provisions of the Note. During the nine months ended September 30, 2020 and 2019, the Company recorded interest expense as follows (in thousands): September 30, September 30, Unsecured promissory note $ 4 $ — Secured term note payable - related party 57 339 Secured promissory note - related party 224 56 Insurance and other notes payable 24 34 Total interest expense $ 309 $ 429 Certain of the agreements governing our outstanding debt have certain covenants with which we must comply. As of September 30, 2020, we were in compliance with all of these covenants. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2020 and December 31, 2019 (in thousands): Classification September 30, 2020 December 31, 2019 Assets Operating lease assets Right-of-use assets $ 881 $ 965 Finance lease assets Property and equipment, net of accumulated depreciation 8,425 9,302 Total lease assets $ 9,306 $ 10,267 Liabilities Current Operating Current portion of operating lease obligations $ 383 $ 364 Finance Current portion of finance lease obligation - related parties 1,312 3,440 Noncurrent Operating Long-term portion of operating lease obligation 565 650 Finance Finance lease obligations, net of current portion - related parties — 648 Total lease liabilities $ 2,260 $ 5,102 The following table summarizes the components of lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands, unaudited): Lease Cost Classification Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Operating lease cost Cost of sales $ 42 $ 29 $ 122 $ 116 Operating lease cost Selling, general and administrative expenses 4 75 185 182 Finance lease cost Amortization of leased assets Depreciation 294 274 879 858 Interest on lease liabilities Interest expense 104 170 400 510 Net lease cost $ 444 $ 548 $ 1,586 $ 1,666 The following schedule presents the future minimum lease payments for our operating and finance obligations at September 30, 2020 (in thousands): Operating Finance Total Remainder 2020 $ 139 $ 727 $ 866 2021 429 646 1,075 2022 172 — 172 2023 145 — 145 2024 149 — 149 Thereafter 25 — 25 Total lease payments 1,059 1,373 2,432 Less: Interest (111) (61) (172) Present value of lease liabilities $ 948 $ 1,312 $ 2,260 Lease term and discount rates for our operating and finance lease obligations are as follows: Lease Term and Discount Rate September 30, 2020 Weighted-average remaining lease term (years) Operating leases 3.1 Finance leases 0.3 Weighted-average discount rate Operating leases 7.3% Finance leases 8.9% The following table summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2019: Other information September 30, 2020 September 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 287 $ 298 Financing cash flows from finance leases 2,640 2,582 Interest paid 400 510 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,163 $ 1,173 |
Leases | Leases The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2020 and December 31, 2019 (in thousands): Classification September 30, 2020 December 31, 2019 Assets Operating lease assets Right-of-use assets $ 881 $ 965 Finance lease assets Property and equipment, net of accumulated depreciation 8,425 9,302 Total lease assets $ 9,306 $ 10,267 Liabilities Current Operating Current portion of operating lease obligations $ 383 $ 364 Finance Current portion of finance lease obligation - related parties 1,312 3,440 Noncurrent Operating Long-term portion of operating lease obligation 565 650 Finance Finance lease obligations, net of current portion - related parties — 648 Total lease liabilities $ 2,260 $ 5,102 The following table summarizes the components of lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands, unaudited): Lease Cost Classification Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Operating lease cost Cost of sales $ 42 $ 29 $ 122 $ 116 Operating lease cost Selling, general and administrative expenses 4 75 185 182 Finance lease cost Amortization of leased assets Depreciation 294 274 879 858 Interest on lease liabilities Interest expense 104 170 400 510 Net lease cost $ 444 $ 548 $ 1,586 $ 1,666 The following schedule presents the future minimum lease payments for our operating and finance obligations at September 30, 2020 (in thousands): Operating Finance Total Remainder 2020 $ 139 $ 727 $ 866 2021 429 646 1,075 2022 172 — 172 2023 145 — 145 2024 149 — 149 Thereafter 25 — 25 Total lease payments 1,059 1,373 2,432 Less: Interest (111) (61) (172) Present value of lease liabilities $ 948 $ 1,312 $ 2,260 Lease term and discount rates for our operating and finance lease obligations are as follows: Lease Term and Discount Rate September 30, 2020 Weighted-average remaining lease term (years) Operating leases 3.1 Finance leases 0.3 Weighted-average discount rate Operating leases 7.3% Finance leases 8.9% The following table summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2019: Other information September 30, 2020 September 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 287 $ 298 Financing cash flows from finance leases 2,640 2,582 Interest paid 400 510 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,163 $ 1,173 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Other Purchases and Sales During the nine months ended September 30, 2020 and 2019, the Company paid Applied Cryo Technologies, Inc. (“ACT”), a company owned 51% by Crenshaw Family Holdings International, Inc., $109 thousand and $413 thousand, respectively, for equipment, repairs and services. During the three months ended September 30, 2020 and 2019, the Company paid ACT $36 thousand and $255 thousand, respectively, for equipment repairs and services. The Company also sold $4 thousand of LNG to ACT during the three and nine months ended September 30, 2019. The Company had no sales to ACT during the three and nine months ended September 30, 2020. As of December 31, 2019, the Company had $4 thousand due from ACT included in accounts receivable on the condensed consolidated balance sheets. There was no receivable due from ACT as of September 30, 2020. As of September 30, 2020 and December 31, 2019, the Company had $13 thousand and $24 thousand, respectively, due to ACT included in accounts payable on the condensed consolidated balance sheets. The Company purchases supplies and services from a subsidiary of The Modern Group. Casey Crenshaw is the beneficial owner of 25% of the Modern Group and is deemed to jointly control The Modern Group with family members. During the nine months ended September 30, 2020 and 2019, the Company made purchases of supplies and services from a subsidiary of The Modern Group totaling $213 thousand and $44 thousand, respectively. During the three months ended September 30, 2020 and 2019, the Company made purchases of supplies and services from a subsidiary of The Modern Group totaling $18 thousand and $13 thousand, respectively. There was no receivable due from The Modern Group as of September 30, 2020 and December 31, 2019. As of September 30, 2020 and December 31, 2019 the Company had $7 thousand and $22 thousand, respectively, due to The Modern Group included in accounts payable on the condensed consolidated balance sheets. Chart Energy & Chemicals, Inc. (“Chart E&C”) beneficially owns 8.7% of our outstanding common stock. During the nine months ended September 30, 2020 and 2019, purchases from Chart E&C totaled $22 thousand and $64 thousand, respectively. During the three months ended September 30, 2020 and 2019, purchases from Chart E&C totaled $2 thousand and $64 thousand, respectively. As of December 31, 2019, the Company had $8 thousand due to Chart E&C included in accounts payable on the condensed consolidated balance sheets. There was no payable due to Chart E&C as of September 30, 2020 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters The Company is subject to federal, state and local environmental laws and regulations. The Company does not anticipate any expenditures to comply with such laws and regulations that would have a material impact on the Company’s condensed consolidated financial position, results of operations or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state and local environmental laws and regulations. Litigation, Claims and Contingencies The Company carries liability insurance to cover its liability to third parties arising out of the operation of its vehicles and equipment and the limits are sufficient to cover any likely final judgment and to pay the cost of defending the cases. The Company may become party to various legal actions that arise in the ordinary course of its business that are not covered by liability insurance. The Company is also subject to audit by tax and other authorities for varying periods in various federal, state and local jurisdictions, and disputes may arise during the course of these audits. It is impossible to determine the ultimate liabilities that the Company may incur resulting from any of these lawsuits, claims, proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities, if any. If these matters were to ultimately be resolved unfavorably, it is possible that such an outcome could have a material adverse effect upon the Company’s condensed consolidated financial position, results of operations, or liquidity. The Company, does not, however, anticipate such an outcome and it believes the ultimate resolution of these matters will not have a material adverse effect on the Company’s condensed consolidated financial position, results of operations, or liquidity. Additionally, the Company currently expenses all legal costs as they are incurred. In October 2018, American Electric received notification of a potential liability of $4.3 million associated with an asset purchase agreement to sell substantially all of its U.S. business assets and operations to Myers Power Products, Inc. (“Myers”). The contractual terms of the agreement included a provision for true-up of the net working capital, estimated as of the date of closing, to actual working capital as calculated by Myers and agreed to by American Electric. Any difference in the actual (conclusive) net working capital in relation to the estimated working capital at closing results in an adjustment to the purchase price. American Electric received notification from Myers of their actual working capital calculation. In the notification, Myers communicated a decrease of approximately $4.3 million in net working capital, in comparison to the estimated working capital used at contract closing. The contractual terms of the transaction provided that in the event Myers and American Electric could not agree to a conclusive net working capital adjustment, then all items remaining in dispute shall be submitted by either one of the parties within thirty (30) calendar days after the expiration of the resolution period to a national or regional independent accounting firm mutually acceptable to Myers and American Electric (the “Neutral Arbitrator”). The Neutral Arbitrator shall act as an arbitrator to determine the conclusive net working capital. The conclusive net working capital, once determined, may result in a purchase price adjustment due to Myers or to the Company. As of September 30, 2020, there have not been any updates to the potential liability. The Company is working with legal counsel to resolve the matter. The Company believes the ultimate resolution of this matter will not have a material adverse impact of the Company’s condensed consolidated financial position, results of operations, or liquidity. In January of 2020, the Company received notification that its subsidiary, M&I Electric Industries, Inc. (“M&I”) has been named as a defendant in a class action lawsuit “Pelton Ray Barrett, et al. v. Arkema, Inc., et al.” as the result of a fire on August 31, 2017, on a site owned or operated by Arkema, Inc. allegedly resulting in chemical exposure. Other defendants in the suit, including M&I are alleged to have been responsible for the installation, repair, design, and/or maintenance of the electrical, refrigeration and environmental systems required to mitigate damages from the release of chemicals. The Company, through its insurance providers, has engaged outside legal counsel to defend against these claims. The Company believes the ultimate resolution of this matter will not have a material adverse impact on the Company’s condensed consolidated financial position, results of operations, or liquidity. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Issuances of Common Stock The Company is authorized to issue up to 37,500,000 shares of Common Stock, $0.001 par value per share. In February 2020, the Company issued 34,706 shares of common stock to former directors as payment for services rendered as members of the American Electric Board of Directors (see Note 16—Stock-Based Compensation for further discussion). Issuances of Warrants As of September 30, 2020, the Company had outstanding Warrants to purchase 62,500 shares of our common stock as follows: Date of Issuance No. of Warrants Exercise Price Expiration Date Nov. 13, 2017 62,500 $18.08 Nov. 13, 2022 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Restricted Stock Awards Independent directors receive 50% of their retainer fee as Restricted Stock Awards (“RSAs”). The RSAs are issued immediately upon grant and are subject to a one year vesting period and other restrictions. During the nine months ended September 30, 2020, the Company granted 61,308 RSAs to independent directors under the Company's 2019 Long Term Incentive Plan (the “2019 Plan”). The fair value of the RSAs on the date of grant was $150 thousand based on the previous day closing price of our common stock as reported on the OTCQX Best Market on the grant date. The Company recognized $38 thousand and $95 thousand in stock-based compensation costs for the three and nine months ended September 30, 2020, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations. As of September 30, 2020, the Company had $55 thousand of unrecognized compensation costs related to our Board of Directors grants, which is expected to be recognized over a weighted average period of less than one year. Restricted Stock Units During the nine months ended September 30, 2020, the Company granted 781,000 Restricted Stock Units (“RSUs”) to employees under the 2019 Plan. The fair value of the RSUs on the date of grant was $1.4 million based on the previous day closing price of our common stock as reported on the OTCQX Best Market on the grant date. The Company recognized $148 thousand and $249 thousand in stock-based compensation costs for the three and nine months ended September 30, 2020, respectively, which is included in general and administrative expenses in the condensed consolidated statements of operations. The Company recognized 2,500 forfeitures as a reduction of expense previously recorded as general and administrative expenses in the condensed consolidated statements of operations during the nine months ended September 30, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company records income taxes for interim periods based on an estimated annual effective tax rate. The estimated annual effective tax rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, the timing of distributions on foreign investments from which foreign taxes are withheld, and changes to actual or forecasted permanent book to tax differences. The Company’s effective tax rate for the nine months ended September 30, 2020 and 2019 was 0.6% and 0.8%, respectively. The 2020 rate reflects state and foreign income taxes and the Company’s deferred federal income tax benefit generated from an expected net operating loss, offset by a change in the valuation allowance on net deferred tax assets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsAt the Annual Meeting of Stockholders of the Company held on September 17, 2020, the stockholders of the Company authorized an amendment to the Articles of Incorporation to change the name of the Company to Stabilis Solutions, Inc. On October 9, 2020, Amended and Restated Articles of Incorporation were filed by the Secretary of State of Florida and our common stock began trading under the name Stabilis Solutions, Inc. on October 19, 2020. The change of name did not result in changes to the Company’s ticker symbol, or the CUSIP number for the Company’s outstanding shares of common stock. Accordingly, our common stock will continue to be traded on the OTCQX Best Market under the ticker symbol “SLNG”. |
Overview and Basis of Present_2
Overview and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Overview | Overview Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) produce, market, and sell liquefied natural gas (“LNG”). The Company also resells liquefied natural gas from third parties and provides services, transportation, and equipment to customers. The Company changed its name from Stabilis Energy, Inc. to Stabilis Solutions, Inc. on October 9, 2020. |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements include our accounts and those of our subsidiaries and, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in the notes to condensed consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2019 included in the Company's Annual Report on Form 10-K, as filed on March 16, 2020. All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements (Unaudited), all dollar amounts in tabulations are in thousands, unless otherwise indicated. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is required to make certain disclosures if it concludes that there is substantial doubt about the entity’s ability to continue as a going concern within one year from the date of the issuance of these financial statements. The Company has incurred recurring operating losses and has negative working capital. The Company is subject to substantial business risks and uncertainties inherent in the current LNG industry. Additionally, the impact of the COVID-19 pandemic has created additional uncertainties regarding the future demand for LNG from our customers. There is no assurance that the Company will be able to generate sufficient revenues in the future to sustain itself or to support future growth. These factors were reviewed by management to determine if there was substantial doubt as to the Company’s ability to continue as a going concern. Management concluded that its plan to address the Company’s liquidity issues would allow it to continue as a going concern. A number of cost control measures have been implemented, including headcount reductions, temporary salary reductions, travel reductions, elimination of certain consultants, and other measures to adjust to anticipated activity levels and maintain adequate liquidity. Furthermore, the Company has recently seen a resumption of activity with existing customers as well as new revenue opportunities, particularly in Mexico. Accordingly, management believes the business will generate sufficient cash flows from its operations to fund the business for the next 12 months. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include the carrying amount of contingencies, valuation allowances for receivables, inventories, and deferred income tax assets, valuations assigned to assets and liabilities in business combinations, and impairments of long-lived assets. Actual results could differ from those estimates, and these differences could be material to the condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, “Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment” (“ASU No. 2017-04”). The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments of ASU No. 2017-04 were adopted by the Company effective January 1, 2020. The adoption of this standard had no impact on our condensed consolidated financial position or results of operations, as the adoption is applied on a prospective basis. Recently Issued Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (ASU No. 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes and also improves consistent application by clarifying and amending existing guidance. ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. We are currently evaluating the impact of this guidance on our condensed consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU No. 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU No. 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU No. 2020-04 on our condensed consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Summarized Financial Information | The following unaudited consolidated pro forma information is presented as if the above acquisitions had occurred on January 1, 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Revenue $ 11,302 $ 38,543 Net loss (4,402) (5,846) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Source | The table below presents revenue disaggregated by source, for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 LNG Product $ 6,594 $ 7,919 $ 18,609 $ 26,872 Rental 737 759 4,012 4,340 Service 187 7 593 689 Power Delivery 1,352 1,371 3,638 1,371 Other 149 458 1,008 1,312 $ 9,019 $ 10,514 $ 27,860 $ 34,584 |
Schedule of Contract Balances | The following table presents the changes in the Company’s contract liabilities for the periods ended September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 December 31, 2019 Balance at beginning of period $ 185 $ 93 Cash received, excluding amounts recognized as revenue 694 185 Amounts recognized as revenue (477) (93) Balance at end of period $ 402 $ 185 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 (in thousands) (in thousands) LNG Power Delivery Total LNG Power Delivery Total Revenues $ 7,667 $ 1,352 $ 9,019 $ 24,222 $ 3,638 $ 27,860 Depreciation 2,237 29 2,266 6,706 96 6,802 Loss from operations before equity income (2,179) (254) (2,433) (5,909) (1,129) (7,038) Net equity income from foreign joint ventures' operations — 573 573 — 1,347 1,347 Income (loss) from operations (2,179) 319 (1,860) (5,909) 218 (5,691) Net income (loss) (2,458) 325 (2,133) (6,678) 32 (6,646) September 30, 2020 (in thousands) LNG Power Delivery Total Total assets $ 65,582 $ 13,502 $ 79,084 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (in thousands) (in thousands) LNG Power Delivery Total LNG Power Delivery Total Revenues $ 9,143 $ 1,371 $ 10,514 $ 33,213 $ 1,371 $ 34,584 Depreciation 2,277 30 2,307 6,862 30 6,892 Loss from operations before equity income (2,988) (266) (3,254) (3,914) (266) (4,180) Net equity income from foreign joint ventures' operations — 135 135 — 135 135 Income (loss) from operations (2,988) (131) (3,119) (3,914) (131) (4,045) Net loss (3,209) (146) (3,355) (4,806) (146) (4,952) December 31, 2019 (in thousands) LNG Power Delivery Total Total assets $ 75,883 $ 14,443 $ 90,326 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | The Company’s prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Prepaid LNG $ 55 $ 189 Prepaid insurance 967 698 Prepaid supplier expenses 295 229 Other receivables 2,046 1,655 Deposits 192 347 Other 157 465 Total prepaid expenses and other current assets $ 3,712 $ 3,583 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The Company’s property, plant and equipment consisted of the following (in thousands): September 30, December 31, Liquefaction plants and systems $ 40,830 $ 40,617 Real property and buildings 1,603 1,794 Vehicles and tanker trailers and equipment 46,904 46,597 Computer and office equipment 506 453 Construction in progress 174 409 Leasehold improvements 30 31 90,047 89,901 Less: accumulated depreciation (36,195) (29,538) $ 53,852 $ 60,363 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | The following presents changes in goodwill during 2019 (in thousands): Goodwill December 31, 2018 $ — Acquisition of American Electric 139 Acquisition of Diversenergy 4,314 December 31, 2019 4,453 |
Investments in Foreign Joint _2
Investments in Foreign Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information of Foreign Joint Venture | Below is summary financial information for BOMAY at September 30, 2020 and December 31, 2019, and operational results for the three and nine months ended September 30, 2020 and for the period from July 27, 2019 to September 30, 2019 in U.S. dollars (in thousands, unaudited): September 30, December 31, 2019 Assets: Total current assets $ 60,324 $ 81,247 Total non-current assets 5,675 5,775 Total assets $ 65,999 $ 87,022 Liabilities and equity: Total liabilities $ 37,597 $ 58,176 Total joint ventures’ equity 28,402 28,846 Total liabilities and equity $ 65,999 $ 87,022 Three Months Ended Nine Months Ended 2020 2020 Revenue $ 17,641 $ 44,844 Gross Profit 3,224 7,456 Earnings 1,663 3,662 July - September 30, 2019 Revenue $ 8,466 Gross Profit 1,668 Earnings 467 |
Schedule of Activity in Investment in Foreign Joint Ventures | The following is a summary of activity in our investment in BOMAY for the nine months ended September 30, 2020 and for the period from July 27, 2019 to December 31, 2019 in U.S. dollars (in thousands, unaudited): September 30, 2020 July 27, 2019 to December 31, 2019 Investments in BOMAY (1) (2) Balance at the beginning of the period $ 9,333 $ 9,333 Undistributed earnings: Balance at the beginning of the period 1,257 — Equity in earnings 1,529 1,257 Dividend distributions (2,054) — Balance at end of period 732 1,257 Foreign currency translation: Balance at the beginning of the period (69) — Change during the period 320 (69) Balance at end of period 251 (69) Total investment in BOMAY at end of period $ 10,316 $ 10,521 ________ (1) Accumulated statutory reserves in equity method investments of $2.66 million at September 30, 2020 and December 31, 2019 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”), regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. (2) The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.2 million will be accreted over the remaining eight |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The Company’s accrued liabilities consisted of the following (in thousands): September 30, December 31, Compensation and benefits $ 1,709 $ 2,641 Professional fees 364 131 LNG fuel and transportation 1,051 1,582 Accrued interest 9 134 Contract liabilities 402 185 Other taxes payable 383 163 Other operating expenses 198 182 Total accrued liabilities $ 4,116 $ 5,018 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Debt | The Company’s carrying value of debt consisted of the following (in thousands): September 30, December 31, Unsecured promissory note $ 1,080 $ — Secured term note payable - related party 1,077 2,077 Secured promissory note - related party 5,000 5,000 Insurance and other notes payable 744 558 Less: amounts due within one year (3,928) (1,558) Total long-term debt $ 3,973 $ 6,077 |
Schedule Of Interest Expense On Debt | During the nine months ended September 30, 2020 and 2019, the Company recorded interest expense as follows (in thousands): September 30, September 30, Unsecured promissory note $ 4 $ — Secured term note payable - related party 57 339 Secured promissory note - related party 224 56 Insurance and other notes payable 24 34 Total interest expense $ 309 $ 429 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities Obligations | The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2020 and December 31, 2019 (in thousands): Classification September 30, 2020 December 31, 2019 Assets Operating lease assets Right-of-use assets $ 881 $ 965 Finance lease assets Property and equipment, net of accumulated depreciation 8,425 9,302 Total lease assets $ 9,306 $ 10,267 Liabilities Current Operating Current portion of operating lease obligations $ 383 $ 364 Finance Current portion of finance lease obligation - related parties 1,312 3,440 Noncurrent Operating Long-term portion of operating lease obligation 565 650 Finance Finance lease obligations, net of current portion - related parties — 648 Total lease liabilities $ 2,260 $ 5,102 |
Schedule of Lease Expenses | The following table summarizes the components of lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands, unaudited): Lease Cost Classification Three Months Ended September 30, Nine Months Ended 2020 2019 2020 2019 Operating lease cost Cost of sales $ 42 $ 29 $ 122 $ 116 Operating lease cost Selling, general and administrative expenses 4 75 185 182 Finance lease cost Amortization of leased assets Depreciation 294 274 879 858 Interest on lease liabilities Interest expense 104 170 400 510 Net lease cost $ 444 $ 548 $ 1,586 $ 1,666 |
Schedule of Future Minimum Lease Payments for Operating and Finance Obligation | The following schedule presents the future minimum lease payments for our operating and finance obligations at September 30, 2020 (in thousands): Operating Finance Total Remainder 2020 $ 139 $ 727 $ 866 2021 429 646 1,075 2022 172 — 172 2023 145 — 145 2024 149 — 149 Thereafter 25 — 25 Total lease payments 1,059 1,373 2,432 Less: Interest (111) (61) (172) Present value of lease liabilities $ 948 $ 1,312 $ 2,260 |
Schedule of Lease Costs and Terms for Operating and Finance Lease Obligations | Lease term and discount rates for our operating and finance lease obligations are as follows: Lease Term and Discount Rate September 30, 2020 Weighted-average remaining lease term (years) Operating leases 3.1 Finance leases 0.3 Weighted-average discount rate Operating leases 7.3% Finance leases 8.9% |
Schedule of Supplemental Cash Flow Information Related To Leases | The following table summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2019: Other information September 30, 2020 September 30, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 287 $ 298 Financing cash flows from finance leases 2,640 2,582 Interest paid 400 510 Noncash activities from right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1,163 $ 1,173 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Outstanding Warrants | As of September 30, 2020, the Company had outstanding Warrants to purchase 62,500 shares of our common stock as follows: Date of Issuance No. of Warrants Exercise Price Expiration Date Nov. 13, 2017 62,500 $18.08 Nov. 13, 2022 |
Overview and Basis of Present_3
Overview and Basis of Presentation (Details) gallon in Thousands | 9 Months Ended |
Sep. 30, 2020gallon | |
Bomay | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Ownership percentage | 40.00% |
Texas | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Daily capacity of production facility in gallons | 100 |
Permian Basin | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Daily capacity of production facility in gallons | 25 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Aug. 20, 2019 | Jul. 26, 2019 | Aug. 20, 2020 |
Diversenergy, LLC | |||
Business Acquisition [Line Items] | |||
Value of common stock | $ 3 | ||
Cash | $ 2 | ||
Common Stock | Diversenergy, LLC | |||
Business Acquisition [Line Items] | |||
Number of shares of the combined company (in shares) | 684,963 | ||
Share Exchange Agreement | Board of Directors Chairman | |||
Business Acquisition [Line Items] | |||
Percentage of beneficial ownership | 88.40% |
Acquisitions - Schedule of Summ
Acquisitions - Schedule of Summarized Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Business Combinations [Abstract] | ||
Revenue | $ 11,302 | $ 38,543 |
Net loss | $ (4,402) | $ (5,846) |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 9,019 | $ 10,514 | $ 27,860 | $ 34,584 |
LNG Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,594 | 7,919 | 18,609 | 26,872 |
Rental | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 737 | 759 | 4,012 | 4,340 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 187 | 7 | 593 | 689 |
Power Delivery | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,352 | 1,371 | 3,638 | 1,371 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 149 | $ 458 | $ 1,008 | $ 1,312 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Contract with Customer, Asset and Liability, Rollforward [Roll Forward] | ||
Balance at beginning of period | $ 185 | $ 93 |
Cash received, excluding amounts recognized as revenue | 694 | 185 |
Amounts recognized as revenue | (477) | (93) |
Balance at end of period | $ 402 | $ 185 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||||||
Number of operating segments | segment | 2 | ||||||||
Total revenues | $ 9,019 | $ 10,514 | $ 27,860 | $ 34,584 | |||||
Depreciation | 2,266 | 2,307 | 6,802 | 6,892 | |||||
Loss from operations before equity income | (2,433) | (3,254) | (7,038) | (4,180) | |||||
Net equity income from foreign joint ventures' operations | 573 | 135 | 1,347 | 135 | |||||
Income (loss) from operations | (1,860) | (3,119) | (5,691) | (4,045) | |||||
Net loss | (2,133) | $ (3,463) | $ (1,050) | (3,355) | $ (1,038) | $ (559) | (6,646) | (4,952) | |
Total assets | 79,084 | 79,084 | $ 90,326 | ||||||
LNG | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 7,667 | 9,143 | 24,222 | 33,213 | |||||
Depreciation | 2,237 | 2,277 | 6,706 | 6,862 | |||||
Loss from operations before equity income | (2,179) | (2,988) | (5,909) | (3,914) | |||||
Net equity income from foreign joint ventures' operations | 0 | 0 | 0 | 0 | |||||
Income (loss) from operations | (2,179) | (2,988) | (5,909) | (3,914) | |||||
Net loss | (2,458) | (3,209) | (6,678) | (4,806) | |||||
Total assets | 65,582 | 65,582 | 75,883 | ||||||
Power Delivery | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenues | 1,352 | 1,371 | 3,638 | 1,371 | |||||
Depreciation | 29 | 30 | 96 | 30 | |||||
Loss from operations before equity income | (254) | (266) | (1,129) | (266) | |||||
Net equity income from foreign joint ventures' operations | 573 | 135 | 1,347 | 135 | |||||
Income (loss) from operations | 319 | (131) | 218 | (131) | |||||
Net loss | 325 | $ (146) | 32 | $ (146) | |||||
Total assets | $ 13,502 | $ 13,502 | $ 14,443 | ||||||
Bomay | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Ownership percentage | 40.00% | 40.00% |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid expenses and other current assets | ||
Prepaid LNG | $ 55 | $ 189 |
Prepaid insurance | 967 | 698 |
Prepaid supplier expenses | 295 | 229 |
Other receivables | 2,046 | 1,655 |
Deposits | 192 | 347 |
Other | 157 | 465 |
Prepaid expenses and other current expenses | $ 3,712 | $ 3,583 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 90,047 | $ 89,901 |
Less: accumulated depreciation | (36,195) | (29,538) |
Property, plant and equipment, net | 53,852 | 60,363 |
Liquefaction plants and systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 40,830 | 40,617 |
Real property and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,603 | 1,794 |
Vehicles and tanker trailers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 46,904 | 46,597 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 506 | 453 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 174 | 409 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 30 | $ 31 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 2,266 | $ 2,307 | $ 6,802 | $ 6,892 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 0 |
Ending balance | 4,453 |
American Electric | |
Goodwill [Roll Forward] | |
Acquisition | 139 |
Diversenergy, LLC | |
Goodwill [Roll Forward] | |
Acquisition | $ 4,314 |
Investments in Foreign Joint _3
Investments in Foreign Joint Ventures - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | $ 9,019,000 | $ 10,514,000 | $ 27,860,000 | $ 34,584,000 |
Affiliated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net sales | $ 0 | |||
Bomay | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 40.00% | 40.00% | ||
Bomay | Baoji Oilfield Machinery Co., Ltd. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 51.00% | 51.00% | ||
Bomay | AA Energies, Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 9.00% | 9.00% |
Investments in Foreign Joint _4
Investments in Foreign Joint Ventures - Schedule of Financial Information of Foreign Joint Venture (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Assets | |||||||||
Total current assets | $ 9,276 | $ 9,276 | $ 13,716 | ||||||
Total assets | 79,084 | 79,084 | 90,326 | ||||||
Liabilities and Equity | |||||||||
Total liabilities | 17,654 | 17,654 | 22,483 | ||||||
Total joint ventures’ equity | 61,430 | 61,430 | 67,843 | ||||||
Total liabilities and equity | 79,084 | 79,084 | 90,326 | ||||||
Net income (loss) | (2,133) | $ (3,463) | $ (1,050) | $ (3,355) | $ (1,038) | $ (559) | (6,646) | $ (4,952) | |
Bomay | Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||||
Assets | |||||||||
Total current assets | 60,324 | 60,324 | 81,247 | ||||||
Total non-current assets | 5,675 | 5,675 | 5,775 | ||||||
Total assets | 65,999 | 65,999 | 87,022 | ||||||
Liabilities and Equity | |||||||||
Total liabilities | 37,597 | 37,597 | 58,176 | ||||||
Total joint ventures’ equity | 28,402 | 28,402 | 28,846 | ||||||
Total liabilities and equity | 65,999 | 65,999 | $ 87,022 | ||||||
Revenue | 17,641 | 8,466 | 44,844 | ||||||
Gross Profit | 3,224 | 1,668 | 7,456 | ||||||
Net income (loss) | $ 1,663 | $ 467 | $ 3,662 |
Investments in Foreign Joint _5
Investments in Foreign Joint Ventures - Schedule of Activity in Investment in Foreign Joint Ventures (Details) - USD ($) $ in Thousands | 5 Months Ended | 9 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Undistributed earnings: | |||
Dividend distributions | $ (2,054) | $ 0 | |
Foreign currency translation: | |||
Investments in foreign joint ventures | $ 10,521 | 10,316 | |
Accumulated statutory reserves in equity method investments | 2,660 | 2,660 | |
Accretion of investment | 97 | ||
Accumulated accretion | 151 | ||
Bomay | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||
Balance at the beginning of the period | 9,333 | 9,333 | |
Undistributed earnings: | |||
Balance at the beginning of the period | 0 | 1,257 | |
Equity in earnings | 1,257 | 1,529 | |
Dividend distributions | 0 | (2,054) | |
Balance at end of period | 1,257 | 732 | |
Foreign currency translation: | |||
Balance at the beginning of the period | 0 | (69) | |
Change during the period | (69) | 320 | |
Balance at end of period | (69) | 251 | |
Investments in foreign joint ventures | $ 10,521 | $ 10,316 | |
Ownership percentage | 40.00% | ||
Basis difference | $ 1,200 | ||
Remaining life of joint venture | 8 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued liabilities | ||
Compensation and benefits | $ 1,709 | $ 2,641 |
Professional fees | 364 | 131 |
LNG fuel and transportation | 1,051 | 1,582 |
Accrued interest | 9 | 134 |
Contract liabilities | 402 | 185 |
Other taxes payable | 383 | 163 |
Other operating expenses | 198 | 182 |
Total accrued liabilities | $ 4,116 | $ 5,018 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Unsecured promissory note | $ 1,080 | $ 0 |
Secured term note payable - related party | 1,077 | 2,077 |
Secured promissory note - related party | 5,000 | 5,000 |
Insurance and other notes payable | 744 | 558 |
Less: amounts due within one year | (3,928) | (1,558) |
Total long-term debt | $ 3,973 | $ 6,077 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Promissory Note - Cadence Bank, N.A. - Loan Pursuant to CARES Act $ in Millions | May 08, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 1.1 |
Interest rate | 1.00% |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | ||
Interest expense | $ 309 | $ 429 |
Unsecured promissory note | ||
Debt Instrument [Line Items] | ||
Interest expense | 4 | 0 |
Secured term note payable - related party | ||
Debt Instrument [Line Items] | ||
Interest expense | 57 | 339 |
Secured promissory note - related party | ||
Debt Instrument [Line Items] | ||
Interest expense | 224 | 56 |
Insurance and other notes payable | ||
Debt Instrument [Line Items] | ||
Interest expense | $ 24 | $ 34 |
Leases - Schedule of Lease Asse
Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets and Liabilities, Lessee | ||
Operating lease assets | $ 881 | $ 965 |
Finance lease assets | $ 8,425 | $ 9,302 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Total lease assets | $ 9,306 | $ 10,267 |
Operating lease liabilities current | 383 | 364 |
Finance lease liabilities current | 1,312 | 3,440 |
Operating lease liabilities non-current | 565 | 650 |
Finance lease liabilities non-current | 0 | 648 |
Present value of lease liabilities | $ 2,260 | $ 5,102 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Amortization of leased assets | $ 294 | $ 274 | $ 879 | $ 858 |
Interest on lease liabilities | 104 | 170 | 400 | 510 |
Net lease cost | 444 | 548 | 1,586 | 1,666 |
Cost of sales | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | 42 | 29 | 122 | 116 |
Selling, general and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 4 | $ 75 | $ 185 | $ 182 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Obligation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Remainder 2020 | $ 139 | |
2021 | 429 | |
2022 | 172 | |
2023 | 145 | |
2024 | 149 | |
Thereafter | 25 | |
Total lease payments | 1,059 | |
Less: Interest | (111) | |
Present value of lease liabilities | 948 | |
Finance Leases | ||
Remainder 2020 | 727 | |
2021 | 646 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 1,373 | |
Less: Interest | (61) | |
Present value of lease liabilities | 1,312 | |
Total | ||
Remainder 2020 | 866 | |
2021 | 1,075 | |
2022 | 172 | |
2023 | 145 | |
2024 | 149 | |
Thereafter | 25 | |
Total lease payments | 2,432 | |
Less: Interest | (172) | |
Present value of lease liabilities | $ 2,260 | $ 5,102 |
Leases - Schedule of Lease Co_2
Leases - Schedule of Lease Costs and Terms for Operating and Finance Lease Obligations (Details) | Sep. 30, 2020 |
Leases [Abstract] | |
Operating leases, weighted-average remaining lease term (years) | 3 years 1 month 6 days |
Finance leases, weighted-average remaining lease term (years) | 3 months 18 days |
Operating leases, weighted-average discount rate | 7.30% |
Finance leases, weighted-average discount rate Weighted-average discount rate | 8.90% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 287 | $ 298 |
Financing cash flows from finance leases | 2,640 | 2,582 |
Interest paid | 400 | 510 |
Noncash activities from right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 1,163 | $ 1,173 |
Related Party Transactions - Ot
Related Party Transactions - Other Purchases and Sales (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | $ 2,000 | $ 64,000 | $ 22,000 | $ 64,000 | |
Due to related parties | $ 0 | $ 0 | $ 8,000 | ||
Affiliated Entity | Chart E&C | |||||
Related Party Transaction [Line Items] | |||||
Percentage of common stock owned | 8.70% | 8.70% | |||
Affiliated Entity | Applied Cryo Technologies | |||||
Related Party Transaction [Line Items] | |||||
Payment for equipment repairs and services | 255,000 | ||||
Related party sales | $ 0 | 4,000 | $ 0 | 4,000 | |
Due from related parties | 0 | 0 | 4,000 | ||
Due to related parties | $ 13,000 | $ 13,000 | 24,000 | ||
Affiliated Entity | TMG | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 25.00% | 25.00% | |||
Due from related parties | $ 0 | $ 0 | 0 | ||
Due to related parties | 7,000 | 7,000 | $ 22,000 | ||
Purchase of supplies and services | $ 18,000 | $ 13,000 | $ 213,000 | $ 44,000 | |
Applied Cryo Technologies | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 51.00% | 51.00% | 51.00% | 51.00% | |
Payment for equipment repairs and services | $ 109,000 | $ 413,000 | $ 36,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended |
Oct. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Potential liability related to asset purchase agreement | $ 4.3 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2020 | Feb. 29, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Members Equity [Line Items] | ||||
Common stock, shares authorized (in shares) | 37,500,000 | 37,500,000 | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | ||
Common stock issued to former directors (in shares) | 34,706 | |||
RSA | ||||
Members Equity [Line Items] | ||||
Number of shares granted | 61,308 | 61,308 |
Stockholders' Equity - Issuance
Stockholders' Equity - Issuances of Warrants (Details) | Sep. 30, 2020$ / sharesshares |
Class of Stock [Line Items] | |
No. of Warrants (in shares) | 62,500 |
Warrant, November 13, 2022 Expiration | |
Class of Stock [Line Items] | |
No. of Warrants (in shares) | 62,500 |
Exercise Price (in usd per share) | $ / shares | $ 18.08 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Apr. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | |
RSA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Retainer fee, percentage | 50.00% | 50.00% | |
Vesting period | 1 year | ||
Number of shares granted | 61,308 | 61,308 | |
Grant date fair value | $ 150 | ||
Compensation costs | $ 38 | 95 | |
Compensation cost expected to be recognized | 55 | $ 55 | |
Unrecognized compensation costs, weighted average period | 1 year | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 781,000 | ||
Grant date fair value | $ 1,400 | ||
Compensation costs | 148 | $ 249 | |
Forfeitures (in shares) | (2,500) | ||
Compensation cost expected to be recognized | $ 1,100 | $ 1,100 | |
Unrecognized compensation costs, weighted average period | 3 years |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 0.60% | 0.80% |