Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40364 | |
Entity Registrant Name | STABILIS SOLUTIONS, INC. | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-3410234 | |
Entity Address, Address Line One | 11750 Katy Freeway | |
Entity Address, Address Line Two | Suite 900 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77079 | |
City Area Code | 832 | |
Local Phone Number | 456-6500 | |
Title of 12(b) Security | Common Stock, $.001 par value | |
Trading Symbol | SLNG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,386,733 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001043186 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 11,102 | $ 910 |
Accounts receivable, net | 10,375 | 9,397 |
Inventories, net | 214 | 258 |
Prepaid expenses and other current assets | 3,118 | 1,522 |
Assets held for sale | 2,049 | 0 |
Assets of discontinued operations, current | 3,667 | 3,446 |
Total current assets | 30,525 | 15,533 |
Property, plant and equipment: | ||
Cost | 101,752 | 101,192 |
Less accumulated depreciation | (53,617) | (47,027) |
Property, plant and equipment, net | 48,135 | 54,165 |
Goodwill | 4,314 | 4,314 |
Investment in foreign joint venture | 10,424 | 12,325 |
Right-of-use assets and other noncurrent assets | 565 | 167 |
Assets of discontinued operations, noncurrent | 0 | 832 |
Total assets | 93,963 | 87,336 |
Current liabilities: | ||
Accounts payable | 1,781 | 5,065 |
Accrued liabilities | 17,189 | 6,317 |
Current portion of notes payable | 1,086 | 855 |
Current portion of long-term notes payable - related parties | 2,399 | 1,168 |
Current portion of finance and operating lease obligations | 157 | 292 |
Liabilities of discontinued operations, current | 2,817 | 1,931 |
Total current liabilities | 25,429 | 15,628 |
Long-term notes payable, net of current portion | 8,640 | 7,608 |
Long-term notes payable, net of current portion - related parties | 622 | 2,435 |
Long-term portion of finance and operating lease obligations | 219 | 318 |
Other noncurrent liabilities | 612 | 0 |
Liabilities of discontinued operations, noncurrent | 0 | 288 |
Total liabilities | 35,522 | 26,277 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity: | ||
Preferred Stock; $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock; $0.001 par value, 37,500,000 shares authorized, 18,386,733 and 17,691,268 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 19 | 18 |
Additional paid-in capital | 99,531 | 97,875 |
Accumulated other comprehensive (loss) income | (1,073) | 351 |
Accumulated deficit | (40,036) | (37,185) |
Total stockholders’ equity | 58,441 | 61,059 |
Total liabilities and stockholders’ equity | $ 93,963 | $ 87,336 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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) | 18,386,733 | 17,691,268 |
Common stock, shares, outstanding (in shares) | 18,386,733 | 17,691,268 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues: | ||||
Revenues | $ 25,819 | $ 17,779 | $ 69,236 | $ 48,291 |
Operating expenses: | ||||
Cost of revenues | 19,904 | 14,369 | 54,945 | 37,301 |
Change in unrealized gain on natural gas derivatives | (926) | 0 | (27) | 0 |
Selling, general and administrative expenses | 3,658 | 5,286 | 9,643 | 10,558 |
Loss (gain) from disposal of fixed assets | 46 | 0 | (34) | (24) |
Depreciation expense | 2,115 | 2,284 | 6,589 | 6,653 |
Impairment of right-of-use lease asset | 0 | 376 | 0 | 376 |
Total operating expenses | 24,797 | 22,315 | 71,116 | 54,864 |
Income (loss) from operations before equity income | 1,022 | (4,536) | (1,880) | (6,573) |
Net equity income from foreign joint venture operations: | ||||
Income from equity investment in foreign joint venture | 205 | 308 | 1,126 | 1,267 |
Foreign joint venture operating related expenses | (91) | (62) | (239) | (192) |
Net equity income from foreign joint venture operations | 114 | 246 | 887 | 1,075 |
Income (loss) from operations | 1,136 | (4,290) | (993) | (5,498) |
Other income (expense): | ||||
Interest expense, net | (150) | (119) | (437) | (189) |
Interest expense, net - related parties | (49) | (120) | (129) | (441) |
Other income (expense) | (28) | 37 | (99) | 1,031 |
Total other income (expense) | (227) | (202) | (665) | 401 |
Net income (loss) from continuing operations before income tax expense | 909 | (4,492) | (1,658) | (5,097) |
Income tax (benefit) expense | (115) | 89 | (248) | 229 |
Net income (loss) from continuing operations | 1,024 | (4,581) | (1,410) | (5,326) |
Loss from discontinued operations, net of tax | (1,301) | (44) | (1,441) | (128) |
Net loss | $ (277) | $ (4,625) | $ (2,851) | $ (5,454) |
Net income (loss) per common share (Note 13): | ||||
Basic income (loss) per common share from continuing operations (in usd per share) | $ 0.06 | $ (0.26) | $ (0.08) | $ (0.31) |
Basic loss per common share from discontinued operations (in usd per share) | (0.07) | 0 | (0.08) | (0.01) |
Basic net loss per common share (in usd per share) | (0.02) | (0.26) | (0.16) | (0.32) |
Diluted income (loss) per common share from continuing operations (in usd per share) | 0.06 | (0.26) | (0.08) | (0.31) |
Diluted loss per common share from discontinued operations (in usd per share) | (0.07) | 0 | (0.08) | (0.01) |
Diluted net loss per common share (in usd per share) | $ (0.01) | $ (0.26) | $ (0.16) | $ (0.32) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (277) | $ (4,625) | $ (2,851) | $ (5,454) |
Foreign currency translation adjustment | (849) | (150) | (1,424) | 50 |
Total comprehensive loss | $ (1,126) | $ (4,775) | $ (4,275) | $ (5,404) |
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 |
Balance, beginning (in shares) at Dec. 31, 2020 | 16,896,626 | ||||
Balance, beginning at Dec. 31, 2020 | $ 62,030 | $ 17 | $ 91,278 | $ 122 | $ (29,387) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 162 | 162 | |||
Net loss | 175 | 175 | |||
Other comprehensive income (loss), net of tax | (202) | (202) | |||
Balance, ending (in shares) at Mar. 31, 2021 | 16,896,626 | ||||
Balance, ending at Mar. 31, 2021 | 62,165 | $ 17 | 91,440 | (80) | (29,212) |
Balance, beginning (in shares) at Dec. 31, 2020 | 16,896,626 | ||||
Balance, beginning at Dec. 31, 2020 | 62,030 | $ 17 | 91,278 | 122 | (29,387) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (5,454) | ||||
Other comprehensive income (loss), net of tax | 50 | ||||
Balance, ending (in shares) at Sep. 30, 2021 | 17,691,268 | ||||
Balance, ending at Sep. 30, 2021 | 62,722 | $ 18 | 97,373 | 172 | (34,841) |
Balance, beginning (in shares) at Mar. 31, 2021 | 16,896,626 | ||||
Balance, beginning at Mar. 31, 2021 | 62,165 | $ 17 | 91,440 | (80) | (29,212) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued from vesting of stock-based awards (in shares) | 101,284 | ||||
Stock-based compensation | 122 | 122 | |||
Shares issued in asset acquisition (in shares) | 500,000 | ||||
Shares issued in asset acquisition | 3,795 | $ 1 | 3,794 | ||
Net loss | (1,004) | (1,004) | |||
Other comprehensive income (loss), net of tax | 402 | 402 | |||
Balance, ending (in shares) at Jun. 30, 2021 | 17,497,910 | ||||
Balance, ending at Jun. 30, 2021 | 65,480 | $ 18 | 95,356 | 322 | (30,216) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued from vesting of stock-based awards (in shares) | 250,000 | ||||
Stock-based compensation | 2,447 | 2,447 | |||
Employee tax payments from restricted stock with holdings (in shares) | (56,642) | ||||
Employee tax payments from restricted stock with holdings | (430) | (430) | |||
Net loss | (4,625) | (4,625) | |||
Other comprehensive income (loss), net of tax | (150) | (150) | |||
Balance, ending (in shares) at Sep. 30, 2021 | 17,691,268 | ||||
Balance, ending at Sep. 30, 2021 | 62,722 | $ 18 | 97,373 | 172 | (34,841) |
Balance, beginning (in shares) at Dec. 31, 2021 | 17,691,268 | ||||
Balance, beginning at Dec. 31, 2021 | 61,059 | $ 18 | 97,875 | 351 | (37,185) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued from vesting of stock-based awards (in shares) | 501,334 | ||||
Stock-based compensation | 531 | 531 | |||
Net loss | (406) | (406) | |||
Other comprehensive income (loss), net of tax | 377 | 377 | |||
Balance, ending (in shares) at Mar. 31, 2022 | 18,192,602 | ||||
Balance, ending at Mar. 31, 2022 | 61,561 | $ 18 | 98,406 | 728 | (37,591) |
Balance, beginning (in shares) at Dec. 31, 2021 | 17,691,268 | ||||
Balance, beginning at Dec. 31, 2021 | $ 61,059 | $ 18 | 97,875 | 351 | (37,185) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued in asset acquisition (in shares) | 500,000 | ||||
Net loss | $ (2,851) | ||||
Other comprehensive income (loss), net of tax | (1,424) | ||||
Balance, ending (in shares) at Sep. 30, 2022 | 18,386,733 | ||||
Balance, ending at Sep. 30, 2022 | 58,441 | $ 19 | 99,531 | (1,073) | (40,036) |
Balance, beginning (in shares) at Mar. 31, 2022 | 18,192,602 | ||||
Balance, beginning at Mar. 31, 2022 | 61,561 | $ 18 | 98,406 | 728 | (37,591) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued from vesting of stock-based awards (in shares) | 87,337 | ||||
Stock-based compensation | 608 | 608 | |||
Net loss | (2,168) | (2,168) | |||
Other comprehensive income (loss), net of tax | (952) | (952) | |||
Balance, ending (in shares) at Jun. 30, 2022 | 18,279,939 | ||||
Balance, ending at Jun. 30, 2022 | 59,049 | $ 18 | 99,014 | (224) | (39,759) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common stock issued from vesting of stock-based awards (in shares) | 125,000 | ||||
Common stock issued from vesting of stock-based awards | 1 | $ 1 | |||
Stock-based compensation | 602 | 602 | |||
Employee tax payments from restricted stock with holdings (in shares) | (18,206) | ||||
Employee tax payments from restricted stock with holdings | (85) | (85) | |||
Net loss | (277) | (277) | |||
Other comprehensive income (loss), net of tax | (849) | (849) | |||
Balance, ending (in shares) at Sep. 30, 2022 | 18,386,733 | ||||
Balance, ending at Sep. 30, 2022 | $ 58,441 | $ 19 | $ 99,531 | $ (1,073) | $ (40,036) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss from continuing operations | $ (1,410) | $ (5,326) |
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: | ||
Depreciation | 6,589 | 6,653 |
Stock-based compensation expense | 1,741 | 2,731 |
Gain on disposal of fixed assets | (34) | (24) |
Gain on extinguishment of debt | 0 | (1,080) |
Income from equity investment in joint venture | (1,126) | (1,267) |
Change in unrealized gain on natural gas derivatives | (27) | 0 |
Cash settlements from derivatives | 1,062 | 0 |
Distributions from equity investment in joint venture | 1,550 | 1,387 |
Impairment of right-of-use lease asset | 0 | 376 |
Change in operating assets and liabilities: | ||
Accounts receivable | (977) | (1,381) |
Inventories | 44 | (23) |
Prepaid expenses and other current assets | (1,216) | 218 |
Accounts payable and accrued liabilities | 5,174 | 3,611 |
Other | (570) | (3) |
Cash provided by operating activities from continuing operations | 10,800 | 5,872 |
Cash provided by (used in) operating activities from discontinued operations | 738 | (443) |
Net cash provided by operating activities | 11,538 | 5,429 |
Cash flows from investing activities: | ||
Acquisition of fixed assets | (1,746) | (6,748) |
Proceeds from sale of fixed assets | 100 | 258 |
Proceeds from assets held for sale | 2,049 | 0 |
Cash provided by (used in) investing activities from continuing operations | 403 | (6,490) |
Cash used in investing activities from discontinued operations | (334) | (200) |
Net cash provided by (used in) investing activities | 69 | (6,690) |
Cash flows from financing activities: | ||
Proceeds from borrowings on short- and long-term notes payable | 1,000 | 6,997 |
Payments on short- and long-term notes payable | (1,555) | (432) |
Payments on notes payable and finance leases from related parties | (669) | (3,277) |
Payment of debt issuance costs | 0 | (420) |
Employee tax payments from restricted stock withholdings | (85) | (430) |
Cash provided by (used in) financing activities from continuing operations | (1,309) | 2,438 |
Cash provided by (used in) financing activities from discontinued operations | (113) | 13 |
Net cash provided by (used in) financing activities | (1,422) | 2,451 |
Effect of exchange rate changes on cash | 7 | (76) |
Net increase in cash and cash equivalents | 10,192 | 1,114 |
Cash and cash equivalents, beginning of period | 910 | 1,240 |
Cash and cash equivalents, end of period | $ 11,102 | $ 2,354 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Basis of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (“LNG”) to multiple end markets across North America. The Company provides LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote clean power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is not available, has been interrupted, or needs to be supplemented. Additionally, LNG can be used as a partner fuel for renewable energy, and as an alternative to traditional fuel sources, such as distillate fuel oil (including diesel fuel and other fuel oils) and propane, among others to provide both environmental and economic benefits. Stabilis operates two LNG production facilities in George West, Texas and Port Allen, Louisiana to service customers in Texas and the greater Gulf Coast region. The Company also builds power and control systems for the energy industry in China through its 40% owned Chinese joint venture, BOMAY Electric Industries, Inc (“BOMAY”). The BOMAY operations is accounted as an equity investment. The Company has historically provided electrical switch-gear, generator and instrumentation construction, installation and service to the marine, power generation, oil and gas, and broad industrial market segments in Brazil. At September 30, 2022, the Company agreed to exit its operations in Brazil (the "Brazil Operations") and has presented the Brazil Operations as discontinued operations in accordance with U.S. GAAP. See also "Basis of Presentation and Consolidation" below and Note 2 for a further discussion of our discontinued operations. Basis of Presentation and Consolidation The accompanying unaudited, interim condensed consolidated financial statements ("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 consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to prevent the information presented herein from being misleading. The 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 periods presented are not necessarily indicative of the results of operations to be expected for the full year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021 included in the Company's Annual Report on Form 10-K, as filed on March 10, 2022. All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements, all dollar amounts in tabulations are in thousands, unless otherwise indicated. The Company believes that the Brazil Operations meet the criteria for discontinued operations presentation at September 30, 2022. Accordingly, such assets and liabilities at September 30, 2022, results of operations for the three and nine months ended and cash flows for the nine months ended September 30, 2022 have been classified as discontinued operations on our Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows, respectively. The classification of these assets, liabilities, results of operations and cash flows as discontinued operations requires retrospective application to financial information for all prior periods presented. Therefore, such assets and liabilities at December 31, 2021, and operating results and cash flows for the corresponding 2021 periods have been recast on our Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Operations and Condensed Consolidated Statements of Cash Flows, respectively. Unless otherwise noted, the amounts presented throughout the notes to our Financial Statements relate to our continuing operations. See Note 2 for further discussion of the Company's decision to exit the Brazil Operations. Reclassifications The Company reclassified $0.5 million and $1.5 million from selling, general and administrative expenses to costs of rental, service and other within the Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2021, respectively, to conform to current period presentation. The Company also reclassified $0.3 million from costs of LNG product to costs of rental service and other within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2021 to conform to current period presentation. Such reclassifications had no impact on the consolidated financial position, income from operations, net income or cash flows. Use of Estimates in the Preparation of the Consolidated Financial Statements 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 fair value of natural gas derivatives, 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. Derivative instruments The Company had certain natural gas derivative instruments as of September 30, 2022. The Company recognizes all of its derivative instruments as either assets or liabilities which are recorded at fair value on its Condensed Consolidated Balance Sheet. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies for and has been designated as a hedge and the type of hedge. The Company has not designated the derivative as a hedge under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Condensed Consolidated Statements of Operations. The Company did not enter into any derivative transactions for speculative purposes. See Note 4 for further discussion of the Company's derivatives. Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted 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 consolidated financial position and results of operations. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments,” which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For receivables, and other short-term financial instruments, companies will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination. ASU No. 2016-13 will be effective for the Company in the first quarter 2023. Early adoption of the new standard is permitted; however, Stabilis has not elected to early adopt the standard. We are currently evaluating the effect that the new standard will have on our consolidated financial statements, if any. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS At September 30, 2022, the Company determined that it would exit its Brazil Operations as the Company desires to focus its resources and management on the core LNG business. The Company expects that the exit will be in the form of a sale for cash or a combination of cash and a note receivable. The Company expects the sale will close within the next year. Impairment of Brazil Operations The Company reviews its long-lived assets whenever events or changes in circumstances indicate that a particular asset or group of asset's carrying value may not be recoverable. The Company determined that the decision to exit the Brazil Operations is such an event and recorded an impairment charge of $1.3 million measured as the estimated fair value of $0.9 million (calculated as the estimated net proceeds that would be received in an orderly and timely sale of the operations) less the carrying value of the Brazil net assets at September 30, 2022. The impairment charge is included within income (loss) from discontinued operations, net of tax as reported in the Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2022. Classification as Discontinued Operations The Company believes that the decision to exit the Brazil Operations at September 30, 2022 meets the criteria for discontinued operations presentation within the Condensed Consolidated Financial Statements as the decision to exit these operations represents a strategic shift of the future operations of the Company with separately reported financial information available as the Brazil Operations represent substantially all of the revenue and expenses of the Company's previously reported Power Delivery segment. Accordingly, such assets and liabilities at September 30, 2022, results of operations for the three and nine months ended and cash flows for the nine months ended September 30, 2022 have been classified as discontinued operations on our Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows, respectively. The classification of these assets, liabilities, results of operations and cash flows as discontinued operations requires retrospective application to financial information for all prior periods presented. Accordingly, the Condensed Consolidated Financial Statements and related notes have been updated to separately state the assets and liabilities, revenues and expenses and cash flows between its continuing operations and the discontinued operations as of and for all periods presented. Corporate allocations of $0.1 million and $0.6 million previously reported within the Company's Power Delivery Segment have been reclassified to continuing operations for the three and nine months ended September 30, 2022. Included within the Company's accumulated other comprehensive income (loss) at September 30, 2022 is $1.0 million of cumulative translation losses which will be removed upon sale. The following table summarizes the components of income from discontinued operations (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue $ 3,202 $ 1,925 $ 8,602 $ 5,129 Costs and expenses 3,082 1,987 8,392 5,247 Impairment 1,310 — 1,310 — Other income and interest expense, net (45) 22 (80) 117 Loss from discontinued operations before income taxes $ (1,235) $ (40) $ (1,180) $ (1) Income tax expense 66 4 261 127 Loss from discontinued operations net of income taxes $ (1,301) $ (44) $ (1,441) $ (128) The following table summarizes the assets and liabilities of discontinued operations (in thousands): September 30, December 31, Assets Cash and cash equivalents $ 478 $ 1,149 Accounts receivable, net 1,222 926 Contract assets and other current assets 1,967 1,371 Total current assets of discontinued operations 3,667 3,446 Property, plant and equipment, net — 522 Goodwill — 138 Other noncurrent assets — 172 Total assets of discontinued operations $ 3,667 $ 4,278 September 30, December 31, Liabilities Accounts payable $ 498 $ 492 Accrued liabilities 1,956 1,213 Current portion of notes payable 158 108 Current portion of finance and operating lease obligations 205 118 Total current liabilities of discontinued operations 2,817 1,931 Long-term notes payable, net of current portion and other noncurrent liabilities — 288 Total liabilities of discontinued operations $ 2,817 $ 2,219 Segment Reporting As a result of the classification of the Brazil Operations as discontinued operations, the Company believes that it only has one reporting segment. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION We recognize revenues when the transfer of promised goods or services are delivered to our customers in accordance with the applicable customer contract and we are entitled to be paid by the customer. Revenues are measured as consideration specified in the contract. Amounts are billed upon completion of service or transfer of a product and are generally due within 30 days. Revenues from contracts with customers are disaggregated into (1) LNG product (2) rental, service, and (3) other. LNG product revenue generated includes the revenue from the product and delivery of LNG to our customer’s location. Product revenue is recognized upon delivery of the related item to the customer, at which point the customer controls the product and the Company has an unconditional right to payment. Product contracts are established by agreeing on a sales price or transaction price for the related item. Revenue is recognized when the customer has taken control of the product. Payment terms for product contracts are generally within thirty days from the receipt of the invoice. The Company acts as a principal when using third party transportation companies and therefore recognizes the gross revenue for the delivery of LNG. Rental, service and other revenue generated by the Company includes equipment and human resources provided to the customer to support the use of LNG and power delivery equipment and services in their application. Rental contracts are established by agreeing on a rental price or transaction price for the related piece of equipment and the rental period which is generally daily or monthly. The Company maintains control of the equipment that the customer uses and can replace the rented equipment with similar equipment should the rented equipment become inoperable or the Company chooses to replace the equipment for maintenance purposes. Revenue is recognized as the rental period is completed and for periods that cross month end, revenue is recognized for the portion of the rental period that has been completed to date. Payment terms for rental contracts are generally within thirty days from the receipt of the invoice. Performance obligations for rental revenue are considered to be satisfied as the rental period is completed based upon the terms of the related contract. LNG service revenue generated by the Company consists of mobilization and demobilization of equipment and onsite technical support while customers are consuming LNG in their applications. Service revenue is billed based on contractual terms that can be based on an event (i.e. mobilization or demobilization) or an hourly rate. Revenue is recognized as the event is completed or work is done. Performance obligations for service revenue are considered to be satisfied as the event is completed or work is done per the terms of the related contract. Disaggregated Revenues The table below presents revenue disaggregated by source, for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended Revenues: 2022 2021 2022 2021 LNG Product $ 21,623 $ 14,420 $ 58,744 $ 37,927 Rental and service 3,843 3,046 9,966 8,996 Other 353 313 526 1,368 $ 25,819 $ 17,779 $ 69,236 $ 48,291 The table below presents revenue disaggregated by geographic location, for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended Revenues: 2022 2021 2022 2021 Mexico 3,427 3,501 12,087 7,198 United States 22,392 14,278 57,149 41,093 $ 25,819 $ 17,779 $ 69,236 $ 48,291 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS As of September 30, 2022, the Company held a series of call options (“the Call Options”) for the purchase of natural gas related to customer commitments. The Call Options are for a total of 2.0 million MMBtu (million British thermal units) of natural gas over a period of approximately two years. The Company purchased the Call Options to manage the risk of increasing natural gas prices above what it can charge its customers. The Company recognizes all of its derivative instruments as either assets or liabilities which are recorded at fair value on its Condensed Consolidated Balance Sheet. The fair value of the Call Options are predominantly determined from broker quotes and are considered a level 2 fair value measurement. The following table presents the location and fair value of the Call Options at September 30, 2022 and December 31, 2021 (in thousands): Location on Condensed Consolidated Balance Sheet September 30, 2022 (1) December 31, 2021 (2) Prepaid expenses and other current assets (3) $ 1,190 $ — Right-of-use assets and other noncurrent assets (3) 538 — $ 1,728 $ — _______________ (1) Amounts are presented on a gross basis. (2) The Company did not have any derivative instruments at December 31, 2021. (3) The classification between current and noncurrent assets is based upon when the Call Options mature. The Company has not designated the Call Options as a hedge under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within change in unrealized loss on natural gas derivatives within the Company's Condensed Consolidated Statements of Operations. The table below presents the changes in the fair value of the Call Options for the three and nine months ended September 30, 2022 as well as their net realized gains and losses. Three Months Ended Nine Months Ended Changes in fair value of derivatives 2022 2021 (1) 2022 2021 (1) Fair value of natural gas derivatives, beginning of period $ 1,126 $ — $ — $ — Purchases of natural gas derivatives — — 2,241 — Unrealized gains (losses) transferred to realized gains (losses), net (324) — (540) — Change in unrealized gain on natural gas derivatives (2) 926 — 27 — Fair value of natural gas derivatives, end of period $ 1,728 $ — $ 1,728 $ — Three Months Ended Nine Months Ended Realized gain (loss) from derivative instruments 2022 2021 (1) 2022 2021 (1) Unrealized gains (losses) transferred to realized gains (losses), net $ (324) $ — $ (540) $ — Derivative settlement payments received (2) 682 — 1,062 — Realized gain (loss) from natural gas derivatives, net (3) $ 358 $ — $ 522 $ — _______________ (1) The Company did not have any derivative instruments at December 31, 2021. (2) Amounts are presented as their own separate line item within the Company's Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows. (3) Amounts are included within cost of LNG product on the Company's Condensed Consolidated Statement of Operations. The Company may enter into forward sales contracts for the delivery of LNG to its customers. These contracts are not accounted for as derivatives, but accounted for under the normal purchase normal sales exclusion under U.S. GAAP and are not measured at fair value each reporting period. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2022 | |
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 at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Prepaid LNG $ — $ 92 Prepaid insurance 1,342 892 Prepaid supplier expenses 248 201 Fair value of derivatives, current 1,190 — Deposits 287 243 Other 51 94 Total prepaid expenses and other current assets $ 3,118 $ 1,522 |
Assets Held For Sale And Proper
Assets Held For Sale And Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Assets Held For Sale And Property, Plant and Equipment | ASSETS HELD FOR SALE AND PROPERTY, PLANT AND EQUIPMENT Assets Held for Sale During the quarter, the Company entered into an agreement to sell certain assets for $2.0 million. At September 30, 2022, the Company had received the funds; however, the purchaser had not taken delivery of the assets and they remain within the Company's custody as of the date of this Report, but are expected to be delivered to the purchaser during the fourth quarter 2022. The Company classified the assets as assets held for sale which are included as their own line item on the Company's Condensed Consolidated Balance Sheet at September 30, 2022. Proceeds received from the purchaser have been reported as investing activities within the Company's Condensed Consolidated Statement of Cash flows for the nine months ended September 30, 2022 and included within accrued liabilities on the Company's Condensed Consolidated Balance Sheet at September 30, 2022. The proceeds received from the sale equaled the carrying value of the assets. Accordingly, no impairment was recorded at September 30, 2022. At December 31, 2021, these assets were classified as construction in progress within property, plant and equipment. These assets did not meet the criteria for discontinued operations presentation. Property, Plant and Equipment The Company’s property, plant and equipment at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Liquefaction plants and systems $ 47,606 $ 47,235 Real property and buildings 2,057 2,047 Vehicles and tanker trailers and equipment 51,168 49,905 Computer and office equipment 483 478 Construction in progress 408 1,495 Leasehold improvements 30 32 101,752 101,192 Less: accumulated depreciation (53,617) (47,027) $ 48,135 $ 54,165 Depreciation expense totaled $2.1 million and $2.3 million for the three months ended September 30, 2022 and 2021, respectively, and $6.6 million and $6.7 million for the nine months ended September 30, 2022 and 2021, respectively, all of which is included in the Condensed Consolidated Statements of Operations as a separate line item. |
Investments in Foreign Joint Ve
Investments in Foreign Joint Ventures | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Foreign Joint Ventures | INVESTMENT IN FOREIGN JOINT VENTURE 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 during the three and nine months ended September 30, 2022 and 2021. The tables below present a summary of BOMAY's assets and liabilities and equity at September 30, 2022 and December 31, 2021, and its operational results for the three and nine months ended September 30, 2022 and 2021 in U.S. dollars (in thousands, unaudited): September 30, December 31, 2021 Assets: Total current assets $ 75,220 $ 75,249 Total non-current assets 2,968 3,544 Total assets $ 78,188 $ 78,793 Liabilities and equity: Total liabilities $ 49,469 $ 45,253 Total joint ventures’ equity 28,719 33,540 Total liabilities and equity $ 78,188 $ 78,793 Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue $ 12,364 $ 10,040 $ 55,090 $ 43,261 Gross Profit 2,332 3,420 7,637 8,111 Earnings 430 688 2,573 2,923 The table below presents the components of our investment in BOMAY and a summary of the activity within those components for the nine months ended September 30, 2022 in U.S. dollars (in thousands, unaudited): Initial Investment at Merger (1), (2) Undistributed Earnings Cumulative Foreign Exchange Translation Adj Investment in BOMAY Balance at December 31, 2021 $ 9,333 $ 1,965 $ 1,027 $ 12,325 Equity in earnings — 1,126 — 1,126 Less: dividend distributions — (1,550) — (1,550) Foreign currency translation gain (loss) — — (1,477) (1,477) Balance at September 30, 2022 $ 9,333 $ 1,541 $ (450) $ 10,424 _______________ (1) Accumulated statutory reserves in equity method investments of $2.7 million at September 30, 2022 and December 31, 2021 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 is being accreted over eight years (the expected life of the joint venture). The Company's accretion during the nine months ended September 30, 2022 and 2021 both totaled approximately $96 thousand each, respectively, and is included in income from equity investment in foreign joint venture in the accompanying Condensed Consolidated Statement of Operations. The remaining basis difference, net of accumulated accretion at September 30, 2022 and December 31, 2021 is summarized in the following table (amounts in thousands): September 30, December 31, 2021 Original basis difference $ 1,165 $ 1,165 Less accumulated accretion (410) (314) Net remaining basis difference, net at end of period $ 755 $ 851 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 of our investment in BOMAY is necessary for the period ending September 30, 2022. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES The Company’s accrued liabilities at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Compensation and benefits $ 2,526 $ 2,465 Professional fees 275 275 LNG fuel and transportation 6,969 2,788 Accrued interest 32 53 Customer deposits 6,821 — Other taxes payable 394 476 Other accrued liabilities 172 260 Total accrued liabilities $ 17,189 $ 6,317 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s carrying value of debt, net of debt issuance costs at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Secured term note, net of debt issuance costs $ 8,640 $ 7,608 Secured promissory note - related party 3,022 3,603 Insurance and other notes payable 1,085 855 Less: amounts due within one year (3,485) (2,023) Total long-term debt $ 9,262 $ 10,043 Secured Term Note On April 8, 2021, the Company entered into a loan agreement (the “Loan Agreement”) with AmeriState Bank (“Lender”), as lender, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, to provide for an advancing loan facility in the aggregate principal amount of up to $10.0 million (the “AmeriState Loan”), of which $9.0 million was drawn and outstanding as of September 30, 2022. The AmeriState Loan, which is in the form of a term loan facility, matures on April 8, 2031 and bears interest at 5.75% per annum through April 8, 2026, and the U.S. prime lending rate plus 2.5% per annum thereafter. The AmeriState Loan provides that proceeds from borrowings may be used for working capital purposes at the Company’s liquefaction plant in George West, Texas and related fees and costs associated with the AmeriState Loan. Upon an Event of Default (as defined in the Loan Agreement), the Lender may (i) terminate its commitment, (ii) declare the outstanding principal amount of the Advancing Notes (as defined in the Loan Agreement) due and payable, or (iii) exercise all rights and remedies available to Lender under the Loan Agreement. On April 8, 2021, Mil e High LN G LLC, Stabilis GDS, Inc., Stabilis LNG Eagle Ford LLC and Stabilis Energy Services, LLC, each a wholly owned subsidiary of the Company (collectively, “Debtor”), entered into a Security Agreement and Assignment (the “Security Agreement”) in favor of the Lender. The Security Agreement grants to Lender a first priority security interest in the collateral identified therein, which includes specific equipment collateral owned by the Company. Secured Promissory Note - Related Party On August 16, 2019, the Company issued a secured promissory note to M/G Finance Co., Ltd., a related party, in the principal amount of $5.0 million, at an interest rate per annum of 6.0% until December 10, 2020, and 12.0% thereafter, maturing in December 2022. The secured promissory note was subsequently amended on September 20, 2021, and on March 9, 2022 to defer scheduled debt and interest payments, reduce the interest rate and extend the maturity date. Payments under the secured promissory note, as amended, resume in October 2022 and will be in equal monthly installments through December 2023. The secured promissory note, as amended, bears interest at 6.0%. The debt is secured by certain equipment of the Company. Insurance and Other Notes Payable The Company finances its annual commercial insurance premiums for its business and operations with a finance company. During the three and nine months ended September 30, 2022, the Company financed $1.4 million of insurance premiums with a short term note payable. The short term note payable requires monthly payments of principal and interest over ten months with interest at 5.75%. The Company's prior insurance note payable was paid in full August, 2022 and incurred interest of 3.95%. At September 30, 2022 and December 31, 2021, outstanding principal under the Company's insurance notes payable was $1.1 million and $0.9 million, respectively. Interest Expense During the three and nine months ended September 30, 2022 and 2021, the Company recorded interest expense on debt and capital lease as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Secured term note $ 143 $ 117 $ 408 $ 176 Secured promissory note - related party 49 120 129 441 Insurance and other notes payable 5 — 23 7 Interest expense on debt 197 237 560 624 Other interest 2 2 6 6 Total interest expense $ 199 $ 239 $ 566 $ 630 Certain of the agreements governing our outstanding debt have certain covenants with which we must comply. As of September 30, 2022, we were in compliance with all of these covenants. Loan Forgiveness under the Paycheck Protection Program In June 2021, the Company's loan pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) of $1.1 million (the “PPP Loan”) was forgiven by the Small Business Administration. The Company recognized a gain on forgiveness of debt in the amount of $1.1 million which is included in other income (expense) within our Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Other Purchases and Sales Applied Cryo Technologies, Inc. (“ACT”), is a company that was owned 51% by Crenshaw Family Holdings, LP (“Crenshaw Family Holdings”). Crenshaw Family Holdings sold its interest in ACT on November 22, 2021. During the three and nine months ended September 30, 2021, the Company purchased from ACT $32 thousand and $0.5 million for equipment, repairs and services, respectively. The Company had $29 thousand of sales to ACT during the three and nine months ended September 30, 2021. At December 31, 2021, the Company had $18 thousand due from ACT included in accounts receivable on the Condensed Consolidated Balance Sheets and $23 thousand 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. The Company made purchases of supplies and services from a subsidiary of The Modern Group totaling $38 thousand and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $0.2 million and $0.8 million for the nine months ended September 30, 2022 and 2021, respectively. The Company had no sales to The Modern Group during either the three or nine months ended September 30, 2022, and had sales of $13 thousand during the three and nine months ended September 30, 2021. The Company had no receivable due from The Modern Group at September 30, 2022 or December 31, 2021. As of September 30, 2022 and December 31, 2021, the Company had $0.1 million and $0.8 million, respectively, due to a subsidiary of The Modern Group included in accounts payable on the Condensed Consolidated Balance Sheets. Chart E&C beneficially owns 8.0% of our outstanding common stock at September 30, 2022, and was party to a Secured Term Note Payable with the Company prior to its repayment by the Company during 2021. The Company purchases services from Chart E&C. The Company made purchases from Chart E&C of $0.0 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and purchases also totaled $0.1 million and $0.1 million during the nine months ended September 30, 2022 and 2021, respectively. The Company had no receivable due from Chart at September 30, 2022 or December 31, 2021. As of September 30, 2022 the Company had no amounts due to Chart E&C. At December 31, 2021, the Company had $0.2 million due to Chart E&C included in accounts payable on the Condensed Consolidated Balance Sheets. Secured Promissory Note - Related Party |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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 |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity and Stock-Based Compensation | STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION 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. During the nine months ended September 30, 2022, the Company issued 500,000 shares of common stock, to its former chief executive officer pursuant to the terms of his separation and release agreement. The restricted stock units (RSU's) were expensed during the third quarter 2021. In addition, during the nine months ended September 30, 2022, 212,337 shares of common stock were issued to other employees upon vesting of RSU's issued under the Company's long term incentive plan. Amended and Restated 2019 Long Term Incentive Plan The Company has a long term incentive plan (the “Amended and Restated Plan”) which provides for a maximum number of shares of common stock available for issuance of 4,000,000 shares. Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year. Stock-Based Compensation and Awards During the nine months ended September 30, 2022, the Company issued a total of 40,764 RSU’s and 774,505 stock options pursuant to the Amended and Restated Plan. The RSU’s were valued at $0.2 million based upon the closing price of $4.11 on the date of grant and will vest over three years. The Company has estimated the value of the options issued using a valuation model. The full aggregate fair value determined was $1.5 million using observable inputs from trading values of the Company's shares of stock. Assumptions used in determining the valuation of the options included the following: • A strike price of $6.00 per share with 3-year vesting terms and the closing price of the common stock of $4.11 at date of grant. • The risk free rate assumed the return of a U.S. Treasury bill of 3 years (the vesting period), which was approximately 1.7% at the date of grant. • $0 dividends as we have not historically paid dividends. • A term of 6.5 years, which was determined as the midpoint between the vesting period of 3 years with an expiration date of 10 years. • Volatility of approximately 58%. The Company includes stock compensation expense within general and administrative expenses in the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2022 and 2021, the Company recognized $1.7 million and $2.7 million of stock compensation expense, respectively. As of September 30, 2022, the Company had $1.1 million of unrecognized compensation costs related to 247,607 outstanding RSUs which are expected to be recognized over a weighted average period of less than one year and $3.3 million of unrecognized compensation costs related to 2,074,505 outstanding options which are expected to be recognized over a weighted average period of less than three years. All RSU's and options are expected to vest. |
Income (Loss) Per Share
Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER SHARE The calculation of net income (loss) per common share including the number of shares for both basic and diluted net income (loss) per share is as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Basic weighted average number of common shares outstanding 18,324,534 17,578,653 18,256,587 17,202,631 Dilutive securities (1),(2) 272,074 — — — Total shares including dilutive securities 18,596,608 17,578,653 18,256,587 17,202,631 Net income (loss) from continuing operations $ 1,024 $ (4,581) $ (1,410) $ (5,326) Loss from discontinued operations, net of tax (1,301) (44) (1,441) (128) Net loss $ (277) $ (4,625) $ (2,851) $ (5,454) Basic income (loss) per common share: Basic income (loss) per common share from continuing operations $ 0.06 $ (0.26) $ (0.08) $ (0.31) Basic loss per common share from discontinued operations (0.07) — (0.08) (0.01) Basic net loss per common share (0.02) (0.26) (0.16) (0.32) . Diluted income (loss) per common share: Diluted income (loss) per common share from continuing operations $ 0.06 $ (0.26) $ (0.08) $ (0.31) Diluted loss per common share from discontinued operations (0.07) — (0.08) (0.01) Diluted net loss per common share (0.01) (0.26) (0.16) (0.32) _______________ (1) Dilutive securities include shares of unvested RSUs and stock options with exercise prices below the share price (in-the-money options) at September 30, 2022. The number of dilutive stock options is calculated under the treasury stock method which assumes proceeds received from the exercise of the options would be used to buy back shares of the Company's common stock at the market price. Excluded from the number of dilutive shares are 600,391 in-the-money options that could be repurchased under the treasury method and 1,300,000 options, with exercise prices in excess of the market price (out-of -the-money options) at September 30, 2022. (2) The Company had no dilutive securities for the three months ended September 30, 2021 or for the nine months ended September 30, 2022 and 2021 since the Company incurred net losses for both continuing and discontinued operations for these periods and inclusion would be antidilutive. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The Company's supplemental disclosure of cash flow information for the nine months ended September 30, 2022 and 2021 is as follows (in thousands): Nine Months Ended Supplemental Disclosure of Cash Flow Information: 2022 2021 Interest paid $ 635 $ 380 Income taxes paid 29 169 Significant non-cash investing and financing activities: Common stock issued to acquire fixed assets $ — $ 3,795 Equipment acquired from issuance of note payable 359 — Acquisition of fixed assets included within accounts payable 565 — Fixed assets transferred to assets held for sale 1,841 — Equipment acquired under capital leases — 104 Insurance premium financing 1,203 1,278 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn October 31, 2022, the Company entered into a sales agreement and closed on the sale of its Brazil Operations to the general manager of the Brazil Operations for approximately $0.9 million consisting of a cash payment of $0.2 million and a note receivable due in annual installments of $0.1 million, $0.1 million, $0.2 million and $0.3 million over the next four years. The Company does not expect to record a gain or loss on the sale due to the impairment loss recorded during the three and nine months ended September 30, 2022, in discontinued operations. See further discussion in Note 2 regarding the Company's decision to exit its Brazil Operations. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (“LNG”) to multiple end markets across North America. The Company provides LNG solutions to customers in diverse end markets, including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote clean power and utility markets. LNG can be used to deliver natural gas to locations where pipeline service is not available, has been interrupted, or needs to be supplemented. Additionally, LNG can be used as a partner fuel for renewable energy, and as an alternative to traditional fuel sources, such as distillate fuel oil (including diesel fuel and other fuel oils) and propane, among others to provide both environmental and economic benefits. Stabilis operates two LNG production facilities in George West, Texas and Port Allen, Louisiana to service customers in Texas and the greater Gulf Coast region. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited, interim condensed consolidated financial statements ("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 consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to prevent the information presented herein from being misleading. The 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 periods presented are not necessarily indicative of the results of operations to be expected for the full year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2021 included in the Company's Annual Report on Form 10-K, as filed on March 10, 2022. All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements, all dollar amounts in tabulations are in thousands, unless otherwise indicated. The Company believes that the Brazil Operations meet the criteria for discontinued operations presentation at September 30, 2022. Accordingly, such assets and liabilities at September 30, 2022, results of operations for the three and nine months ended and cash flows for the nine months ended September 30, 2022 have been classified as discontinued operations on our Condensed Consolidated Balance Sheet, Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Cash Flows, respectively. The classification of these assets, liabilities, results of operations and cash flows as discontinued operations requires retrospective application to financial information for all prior periods presented. Therefore, such assets and liabilities at December 31, 2021, and operating results and cash flows for the corresponding 2021 periods have been recast on our Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Operations and Condensed Consolidated Statements of Cash Flows, respectively. Unless otherwise noted, the amounts presented throughout the notes to our Financial Statements relate to our continuing operations. See Note 2 for further discussion of the Company's decision to exit the Brazil Operations. |
Use of Estimates in the Preparation of the Consolidated Financial Statements | Use of Estimates in the Preparation of the Consolidated Financial Statements 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 fair value of natural gas derivatives, 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. |
Derivative instruments | Derivative instruments The Company had certain natural gas derivative instruments as of September 30, 2022. The Company recognizes all of its derivative instruments as either assets or liabilities which are recorded at fair value on its Condensed Consolidated Balance Sheet. The accounting for changes in the fair value of a derivative instrument depends on whether it qualifies for and has been designated as a hedge and the type of hedge. The Company has not designated the derivative as a hedge under U.S. GAAP and all resulting gains and losses from changes in the fair value of its derivative instruments are included within the Condensed Consolidated Statements of Operations. The Company did not enter into any derivative transactions for speculative purposes. See Note 4 for further discussion of the Company's derivatives. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Standards Not Yet Adopted 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 consolidated financial position and results of operations. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the components of income from discontinued operations (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue $ 3,202 $ 1,925 $ 8,602 $ 5,129 Costs and expenses 3,082 1,987 8,392 5,247 Impairment 1,310 — 1,310 — Other income and interest expense, net (45) 22 (80) 117 Loss from discontinued operations before income taxes $ (1,235) $ (40) $ (1,180) $ (1) Income tax expense 66 4 261 127 Loss from discontinued operations net of income taxes $ (1,301) $ (44) $ (1,441) $ (128) The following table summarizes the assets and liabilities of discontinued operations (in thousands): September 30, December 31, Assets Cash and cash equivalents $ 478 $ 1,149 Accounts receivable, net 1,222 926 Contract assets and other current assets 1,967 1,371 Total current assets of discontinued operations 3,667 3,446 Property, plant and equipment, net — 522 Goodwill — 138 Other noncurrent assets — 172 Total assets of discontinued operations $ 3,667 $ 4,278 September 30, December 31, Liabilities Accounts payable $ 498 $ 492 Accrued liabilities 1,956 1,213 Current portion of notes payable 158 108 Current portion of finance and operating lease obligations 205 118 Total current liabilities of discontinued operations 2,817 1,931 Long-term notes payable, net of current portion and other noncurrent liabilities — 288 Total liabilities of discontinued operations $ 2,817 $ 2,219 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended Revenues: 2022 2021 2022 2021 LNG Product $ 21,623 $ 14,420 $ 58,744 $ 37,927 Rental and service 3,843 3,046 9,966 8,996 Other 353 313 526 1,368 $ 25,819 $ 17,779 $ 69,236 $ 48,291 The table below presents revenue disaggregated by geographic location, for the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended Revenues: 2022 2021 2022 2021 Mexico 3,427 3,501 12,087 7,198 United States 22,392 14,278 57,149 41,093 $ 25,819 $ 17,779 $ 69,236 $ 48,291 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the location and fair value of the Call Options at September 30, 2022 and December 31, 2021 (in thousands): Location on Condensed Consolidated Balance Sheet September 30, 2022 (1) December 31, 2021 (2) Prepaid expenses and other current assets (3) $ 1,190 $ — Right-of-use assets and other noncurrent assets (3) 538 — $ 1,728 $ — _______________ (1) Amounts are presented on a gross basis. (2) The Company did not have any derivative instruments at December 31, 2021. (3) The classification between current and noncurrent assets is based upon when the Call Options mature. |
Derivative Instruments, Gain (Loss) | The table below presents the changes in the fair value of the Call Options for the three and nine months ended September 30, 2022 as well as their net realized gains and losses. Three Months Ended Nine Months Ended Changes in fair value of derivatives 2022 2021 (1) 2022 2021 (1) Fair value of natural gas derivatives, beginning of period $ 1,126 $ — $ — $ — Purchases of natural gas derivatives — — 2,241 — Unrealized gains (losses) transferred to realized gains (losses), net (324) — (540) — Change in unrealized gain on natural gas derivatives (2) 926 — 27 — Fair value of natural gas derivatives, end of period $ 1,728 $ — $ 1,728 $ — Three Months Ended Nine Months Ended Realized gain (loss) from derivative instruments 2022 2021 (1) 2022 2021 (1) Unrealized gains (losses) transferred to realized gains (losses), net $ (324) $ — $ (540) $ — Derivative settlement payments received (2) 682 — 1,062 — Realized gain (loss) from natural gas derivatives, net (3) $ 358 $ — $ 522 $ — _______________ (1) The Company did not have any derivative instruments at December 31, 2021. (2) Amounts are presented as their own separate line item within the Company's Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows. (3) Amounts are included within cost of LNG product on the Company's Condensed Consolidated Statement of Operations. |
Schedule of Derivative Assets at Fair Value | The table below presents the changes in the fair value of the Call Options for the three and nine months ended September 30, 2022 as well as their net realized gains and losses. Three Months Ended Nine Months Ended Changes in fair value of derivatives 2022 2021 (1) 2022 2021 (1) Fair value of natural gas derivatives, beginning of period $ 1,126 $ — $ — $ — Purchases of natural gas derivatives — — 2,241 — Unrealized gains (losses) transferred to realized gains (losses), net (324) — (540) — Change in unrealized gain on natural gas derivatives (2) 926 — 27 — Fair value of natural gas derivatives, end of period $ 1,728 $ — $ 1,728 $ — Three Months Ended Nine Months Ended Realized gain (loss) from derivative instruments 2022 2021 (1) 2022 2021 (1) Unrealized gains (losses) transferred to realized gains (losses), net $ (324) $ — $ (540) $ — Derivative settlement payments received (2) 682 — 1,062 — Realized gain (loss) from natural gas derivatives, net (3) $ 358 $ — $ 522 $ — _______________ (1) The Company did not have any derivative instruments at December 31, 2021. (2) Amounts are presented as their own separate line item within the Company's Condensed Consolidated Statement of Operations and Condensed Consolidated Statement of Cash Flows. (3) Amounts are included within cost of LNG product on the Company's Condensed Consolidated Statement of Operations. |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | The Company’s prepaid expenses and other current assets at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Prepaid LNG $ — $ 92 Prepaid insurance 1,342 892 Prepaid supplier expenses 248 201 Fair value of derivatives, current 1,190 — Deposits 287 243 Other 51 94 Total prepaid expenses and other current assets $ 3,118 $ 1,522 |
Assets Held For Sale And Prop_2
Assets Held For Sale And Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The Company’s property, plant and equipment at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Liquefaction plants and systems $ 47,606 $ 47,235 Real property and buildings 2,057 2,047 Vehicles and tanker trailers and equipment 51,168 49,905 Computer and office equipment 483 478 Construction in progress 408 1,495 Leasehold improvements 30 32 101,752 101,192 Less: accumulated depreciation (53,617) (47,027) $ 48,135 $ 54,165 |
Investments in Foreign Joint _2
Investments in Foreign Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information of Foreign Joint Venture | The tables below present a summary of BOMAY's assets and liabilities and equity at September 30, 2022 and December 31, 2021, and its operational results for the three and nine months ended September 30, 2022 and 2021 in U.S. dollars (in thousands, unaudited): September 30, December 31, 2021 Assets: Total current assets $ 75,220 $ 75,249 Total non-current assets 2,968 3,544 Total assets $ 78,188 $ 78,793 Liabilities and equity: Total liabilities $ 49,469 $ 45,253 Total joint ventures’ equity 28,719 33,540 Total liabilities and equity $ 78,188 $ 78,793 Three Months Ended Nine Months Ended 2022 2021 2022 2021 Revenue $ 12,364 $ 10,040 $ 55,090 $ 43,261 Gross Profit 2,332 3,420 7,637 8,111 Earnings 430 688 2,573 2,923 |
Schedule of Activity in Investment in Foreign Joint Ventures | The table below presents the components of our investment in BOMAY and a summary of the activity within those components for the nine months ended September 30, 2022 in U.S. dollars (in thousands, unaudited): Initial Investment at Merger (1), (2) Undistributed Earnings Cumulative Foreign Exchange Translation Adj Investment in BOMAY Balance at December 31, 2021 $ 9,333 $ 1,965 $ 1,027 $ 12,325 Equity in earnings — 1,126 — 1,126 Less: dividend distributions — (1,550) — (1,550) Foreign currency translation gain (loss) — — (1,477) (1,477) Balance at September 30, 2022 $ 9,333 $ 1,541 $ (450) $ 10,424 _______________ (1) Accumulated statutory reserves in equity method investments of $2.7 million at September 30, 2022 and December 31, 2021 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 is being accreted over eight years (the expected life of the joint venture). The Company's accretion during the nine months ended September 30, 2022 and 2021 both totaled approximately $96 thousand each, respectively, and is included in income from equity investment in foreign joint venture in the accompanying Condensed Consolidated Statement of Operations. The remaining basis difference, net of accumulated accretion at September 30, 2022 and December 31, 2021 is summarized in the following table (amounts in thousands): September 30, December 31, 2021 Original basis difference $ 1,165 $ 1,165 Less accumulated accretion (410) (314) Net remaining basis difference, net at end of period $ 755 $ 851 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The Company’s accrued liabilities at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Compensation and benefits $ 2,526 $ 2,465 Professional fees 275 275 LNG fuel and transportation 6,969 2,788 Accrued interest 32 53 Customer deposits 6,821 — Other taxes payable 394 476 Other accrued liabilities 172 260 Total accrued liabilities $ 17,189 $ 6,317 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Value of Debt | The Company’s carrying value of debt, net of debt issuance costs at September 30, 2022 and December 31, 2021 consisted of the following (in thousands): September 30, December 31, Secured term note, net of debt issuance costs $ 8,640 $ 7,608 Secured promissory note - related party 3,022 3,603 Insurance and other notes payable 1,085 855 Less: amounts due within one year (3,485) (2,023) Total long-term debt $ 9,262 $ 10,043 |
Schedule Of Interest Expense On Debt | During the three and nine months ended September 30, 2022 and 2021, the Company recorded interest expense on debt and capital lease as follows (in thousands): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Secured term note $ 143 $ 117 $ 408 $ 176 Secured promissory note - related party 49 120 129 441 Insurance and other notes payable 5 — 23 7 Interest expense on debt 197 237 560 624 Other interest 2 2 6 6 Total interest expense $ 199 $ 239 $ 566 $ 630 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of net income (loss) per common share including the number of shares for both basic and diluted net income (loss) per share is as follows (in thousands, except share and per share data): Three Months Ended Nine Months Ended 2022 2021 2022 2021 Basic weighted average number of common shares outstanding 18,324,534 17,578,653 18,256,587 17,202,631 Dilutive securities (1),(2) 272,074 — — — Total shares including dilutive securities 18,596,608 17,578,653 18,256,587 17,202,631 Net income (loss) from continuing operations $ 1,024 $ (4,581) $ (1,410) $ (5,326) Loss from discontinued operations, net of tax (1,301) (44) (1,441) (128) Net loss $ (277) $ (4,625) $ (2,851) $ (5,454) Basic income (loss) per common share: Basic income (loss) per common share from continuing operations $ 0.06 $ (0.26) $ (0.08) $ (0.31) Basic loss per common share from discontinued operations (0.07) — (0.08) (0.01) Basic net loss per common share (0.02) (0.26) (0.16) (0.32) . Diluted income (loss) per common share: Diluted income (loss) per common share from continuing operations $ 0.06 $ (0.26) $ (0.08) $ (0.31) Diluted loss per common share from discontinued operations (0.07) — (0.08) (0.01) Diluted net loss per common share (0.01) (0.26) (0.16) (0.32) _______________ (1) Dilutive securities include shares of unvested RSUs and stock options with exercise prices below the share price (in-the-money options) at September 30, 2022. The number of dilutive stock options is calculated under the treasury stock method which assumes proceeds received from the exercise of the options would be used to buy back shares of the Company's common stock at the market price. Excluded from the number of dilutive shares are 600,391 in-the-money options that could be repurchased under the treasury method and 1,300,000 options, with exercise prices in excess of the market price (out-of -the-money options) at September 30, 2022. (2) The Company had no dilutive securities for the three months ended September 30, 2021 or for the nine months ended September 30, 2022 and 2021 since the Company incurred net losses for both continuing and discontinued operations for these periods and inclusion would be antidilutive. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The Company's supplemental disclosure of cash flow information for the nine months ended September 30, 2022 and 2021 is as follows (in thousands): Nine Months Ended Supplemental Disclosure of Cash Flow Information: 2022 2021 Interest paid $ 635 $ 380 Income taxes paid 29 169 Significant non-cash investing and financing activities: Common stock issued to acquire fixed assets $ — $ 3,795 Equipment acquired from issuance of note payable 359 — Acquisition of fixed assets included within accounts payable 565 — Fixed assets transferred to assets held for sale 1,841 — Equipment acquired under capital leases — 104 Insurance premium financing 1,203 1,278 |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) facility | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) facility | Sep. 30, 2021 USD ($) | Apr. 08, 2021 USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of production facilities | facility | 2 | 2 | |||
Selling, general and administrative expense | $ 3,658,000 | $ 5,286,000 | $ 9,643,000 | $ 10,558,000 | |
Cost of revenues | $ 19,904,000 | 14,369,000 | 54,945,000 | 37,301,000 | |
Reclassification | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Selling, general and administrative expense | $ 500,000 | 1,500,000 | |||
Reclassification | LNG product | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Cost of revenues | $ 300,000 | ||||
Loan Agreement | AmeriState Bank | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||||
Proceeds from loan | $ 9,000,000 | ||||
Bomay | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 40% | 40% |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 USD ($) segment | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net loss | $ 277 | $ 2,168 | $ 406 | $ 4,625 | $ 1,004 | $ (175) | $ 2,851 | $ 5,454 | ||
Accumulated other comprehensive (loss) income | $ 1,073 | 1,073 | 1,073 | $ (351) | ||||||
Number of operating segments | segment | 1 | |||||||||
Discontinued Operations | Brazil Operations | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Impairment | 1,310 | 0 | 1,310 | 0 | ||||||
Disposal group, including discontinued operation, consideration | $ 900 | 900 | 900 | |||||||
Discontinued Operations | Brazil Operations | Power Delivery | Revision of Prior Period, Reclassification, Adjustment | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Net loss | $ 100 | $ 600 | ||||||||
Accumulated other comprehensive (loss) income | $ 1,000 | $ 1,000 | $ 1,000 |
Discontinued Operations - Summa
Discontinued Operations - Summary Of Income From Discontinued Operations, Net Of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations net of income taxes | $ (1,301) | $ (44) | $ (1,441) | $ (128) |
Discontinued Operations | Brazil Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenue | 3,202 | 1,925 | 8,602 | 5,129 |
Costs and expenses | 3,082 | 1,987 | 8,392 | 5,247 |
Impairment | 1,310 | 0 | 1,310 | 0 |
Other income and interest expense, net | (45) | 22 | (80) | 117 |
Loss from discontinued operations before income taxes | (1,235) | (40) | (1,180) | (1) |
Income tax expense | 66 | 4 | 261 | 127 |
Loss from discontinued operations net of income taxes | $ (1,301) | $ (44) | $ (1,441) | $ (128) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary Of Assets And Liabilities Of Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Total current assets of discontinued operations | $ 3,667 | $ 3,446 |
Liabilities | ||
Total current liabilities of discontinued operations | 2,817 | 1,931 |
Discontinued Operations | Brazil Operations | ||
Assets | ||
Cash and cash equivalents | 478 | 1,149 |
Accounts receivable, net | 1,222 | 926 |
Contract assets and other current assets | 1,967 | 1,371 |
Total current assets of discontinued operations | 3,667 | 3,446 |
Property, plant and equipment, net | 0 | 522 |
Goodwill | 0 | 138 |
Other noncurrent assets | 0 | 172 |
Total assets of discontinued operations | 3,667 | 4,278 |
Liabilities | ||
Accounts payable | 498 | 492 |
Accrued liabilities | 1,956 | 1,213 |
Current portion of notes payable | 158 | 108 |
Current portion of finance and operating lease obligations | 205 | 118 |
Total current liabilities of discontinued operations | 2,817 | 1,931 |
Long-term notes payable, net of current portion and other noncurrent liabilities | 0 | 288 |
Total liabilities of discontinued operations | $ 2,817 | $ 2,219 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |
Period of recognition, performance obligations | 30 days |
Product Contracts | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 days |
Rental Contracts | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 days |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue Disaggregated by Source and Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 25,819 | $ 17,779 | $ 69,236 | $ 48,291 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,427 | 3,501 | 12,087 | 7,198 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,392 | 14,278 | 57,149 | 41,093 |
LNG product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21,623 | 14,420 | 58,744 | 37,927 |
Rental and service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,843 | 3,046 | 9,966 | 8,996 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 353 | $ 313 | $ 526 | $ 1,368 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Call Option MMBTU in Millions | 9 Months Ended |
Sep. 30, 2022 MMBTU | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Nonmonetary notional amount, energy measure | 2 |
Term of contract | 2 years |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Details) - Call Option - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative asset | $ 1,728 | $ 1,126 | $ 0 | $ 0 | $ 0 | $ 0 |
Prepaid expenses and other current assets | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative asset | 1,190 | 0 | ||||
Right-of-use assets and other noncurrent assets | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Derivative asset | $ 538 | $ 0 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Assets at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Changes in fair value of derivatives | ||||
Change in unrealized gain on natural gas derivatives | $ 926 | $ 0 | $ 27 | $ 0 |
Call Option | ||||
Changes in fair value of derivatives | ||||
Fair value of natural gas derivatives, beginning of period | 1,126 | 0 | 0 | 0 |
Purchases of natural gas derivatives | 0 | 0 | 2,241 | 0 |
Unrealized gains (losses) transferred to realized gains (losses), net | (324) | 0 | (540) | 0 |
Change in unrealized gain on natural gas derivatives | 926 | 0 | 27 | 0 |
Fair value of natural gas derivatives, end of period | 1,728 | 0 | 1,728 | 0 |
Realized gain (loss) from derivative instruments | ||||
Unrealized gains (losses) transferred to realized gains (losses), net | (324) | 0 | (540) | 0 |
Derivative settlement payments received | 682 | 0 | 1,062 | 0 |
Realized gain (loss) from natural gas derivatives, net | $ 358 | $ 0 | $ 522 | $ 0 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Prepaid expenses and other current assets | ||
Prepaid LNG | $ 0 | $ 92 |
Prepaid insurance | 1,342 | 892 |
Prepaid supplier expenses | 248 | 201 |
Fair value of derivatives, current | 1,190 | 0 |
Deposits | 287 | 243 |
Other | 51 | 94 |
Total prepaid expenses and other current assets | $ 3,118 | $ 1,522 |
Assets Held For Sale And Prop_3
Assets Held For Sale And Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Proceeds from assets held for sale | $ 2,000 | $ 2,049 | $ 0 | |
Depreciation | $ 2,115 | $ 2,284 | $ 6,589 | $ 6,653 |
Assets Held For Sale And Prop_4
Assets Held For Sale And Property, Plant and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 101,752 | $ 101,192 |
Less accumulated depreciation | (53,617) | (47,027) |
Property, plant and equipment, net | 48,135 | 54,165 |
Liquefaction plants and systems | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 47,606 | 47,235 |
Real property and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 2,057 | 2,047 |
Vehicles and tanker trailers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 51,168 | 49,905 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 483 | 478 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 408 | 1,495 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 30 | $ 32 |
Investments in Foreign Joint _3
Investments in Foreign Joint Ventures - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 25,819,000 | $ 17,779,000 | $ 69,236,000 | $ 48,291,000 |
Affiliated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Bomay | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 40% | 40% | ||
Bomay | Baoji Oilfield Machinery Co., Ltd. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 51% | 51% | ||
Bomay | AA Energies, Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 9% | 9% |
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, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets: | ||||||||||
Total current assets | $ 30,525 | $ 30,525 | $ 15,533 | |||||||
Total assets | 93,963 | 93,963 | 87,336 | |||||||
Liabilities and equity: | ||||||||||
Total liabilities | 35,522 | 35,522 | 26,277 | |||||||
Total joint ventures’ equity | 58,441 | $ 59,049 | $ 61,561 | $ 62,722 | $ 65,480 | $ 62,165 | 58,441 | $ 62,722 | 61,059 | $ 62,030 |
Total liabilities and stockholders’ equity | 93,963 | 93,963 | 87,336 | |||||||
Earnings | (277) | $ (2,168) | $ (406) | (4,625) | $ (1,004) | $ 175 | (2,851) | (5,454) | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||
Assets: | ||||||||||
Total current assets | 75,220 | 75,220 | 75,249 | |||||||
Total non-current assets | 2,968 | 2,968 | 3,544 | |||||||
Total assets | 78,188 | 78,188 | 78,793 | |||||||
Liabilities and equity: | ||||||||||
Total liabilities | 49,469 | 49,469 | 45,253 | |||||||
Total joint ventures’ equity | 28,719 | 28,719 | 33,540 | |||||||
Total liabilities and stockholders’ equity | 78,188 | 78,188 | $ 78,793 | |||||||
Revenue | 12,364 | 10,040 | 55,090 | 43,261 | ||||||
Gross Profit | 2,332 | 3,420 | 7,637 | 8,111 | ||||||
Earnings | $ 430 | $ 688 | $ 2,573 | $ 2,923 |
Investments in Foreign Joint _5
Investments in Foreign Joint Ventures - Schedule of Activity in Investment in Foreign Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Undistributed Earnings | |||||
Less: dividend distributions | $ (1,550) | $ (1,387) | |||
Investment in BOMAY | |||||
Investment in BOMAY at December 31, 2021 | 12,325 | ||||
Equity in earnings | $ 205 | $ 308 | 1,126 | 1,267 | |
Less: dividend distributions | (1,550) | (1,387) | |||
Investment in BOMAY at September 30, 2022 | 10,424 | 10,424 | |||
Accretion during period | 96 | $ 96 | |||
Original basis difference | 1,165 | 1,165 | $ 1,165 | ||
Less accumulated accretion | (410) | (410) | (314) | ||
Net remaining basis difference, net at end of period | 755 | 755 | 851 | ||
Bomay | |||||
Initial Investment at Merger | |||||
Initial Investment at Merger at December 31, 2021 | 9,333 | ||||
Initial Investment at Merger at September 30, 2022 | 9,333 | 9,333 | |||
Undistributed Earnings | |||||
Undistributed earnings at December 31, 2021 | 1,965 | ||||
Equity in earnings | 1,126 | ||||
Less: dividend distributions | (1,550) | ||||
Undistributed earnings at September 30, 2022 | 1,541 | 1,541 | |||
Cumulative Foreign Exchange Translation Adj | |||||
Cumulative foreign currency translation at December 31, 2021 | 1,027 | ||||
Foreign currency translation gain (loss) | (1,477) | ||||
Cumulative foreign currency translation at September 30, 2022 | (450) | (450) | |||
Investment in BOMAY | |||||
Investment in BOMAY at December 31, 2021 | 12,325 | ||||
Equity in earnings | 1,126 | ||||
Less: dividend distributions | (1,550) | ||||
Foreign currency translation gain (loss) | (1,477) | ||||
Investment in BOMAY at September 30, 2022 | 10,424 | 10,424 | |||
Accumulated statutory reserves in equity method investments | $ 2,700 | $ 2,700 | $ 2,700 | ||
Ownership percentage | 40% | 40% | |||
Remaining life of joint venture | 8 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued liabilities | ||
Compensation and benefits | $ 2,526 | $ 2,465 |
Professional fees | 275 | 275 |
LNG fuel and transportation | 6,969 | 2,788 |
Accrued interest | 32 | 53 |
Customer deposits | 6,821 | 0 |
Other taxes payable | 394 | 476 |
Other accrued liabilities | 172 | 260 |
Total accrued liabilities | $ 17,189 | $ 6,317 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Secured term note, net of debt issuance costs | $ 8,640 | $ 7,608 |
Secured promissory note - related party | 3,022 | 3,603 |
Insurance and other notes payable | 1,085 | 855 |
Less: amounts due within one year | (3,485) | (2,023) |
Total long-term debt | $ 9,262 | $ 10,043 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Apr. 08, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Aug. 16, 2019 | |
Debt Instrument [Line Items] | |||||||
Noncash, insurance premium financing | $ 1,400,000 | $ 1,400,000 | |||||
Insurance terms | 10 months | ||||||
Insurance notes interest rate | 5.75% | ||||||
Outstanding principal amount of premium financed | $ 1,100,000 | $ 1,100,000 | $ 900,000 | ||||
Gain on extinguishment of debt | 0 | $ 1,080,000 | |||||
Loan Agreement | AmeriState Bank | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 10,000,000 | ||||||
Proceeds from loan | $ 9,000,000 | ||||||
Interest rate | 5.75% | ||||||
Loan Agreement | AmeriState Bank | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Prime lending rate plus | 2.50% | ||||||
Secured promissory note - related party | Secured Debt | M/G Finance Co., Ltd. | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6% | 6% | |||||
Debt instrument, face amount | $ 5,000,000 | ||||||
Secured promissory note - related party | Secured Debt | M/G Finance Co., Ltd. | To December 10, 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6% | ||||||
Secured promissory note - related party | Secured Debt | M/G Finance Co., Ltd. | December 11, 2020 and Thereafter | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 12% | ||||||
2021 to 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Insurance notes interest rate | 3.95% | ||||||
Loan Pursuant to CARES Act | Notes Payable to Banks | Cadence Bank, N.A. | |||||||
Debt Instrument [Line Items] | |||||||
PPP loan forgiven by the Small Business Administration | $ 1,100,000 | ||||||
Gain on extinguishment of debt | $ 1,100,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 197 | $ 237 | $ 560 | $ 624 |
Other interest | 2 | 2 | 6 | 6 |
Total interest expense | 199 | 239 | 566 | 630 |
Secured term note | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 143 | 117 | 408 | 176 |
Secured promissory note - related party | ||||
Debt Instrument [Line Items] | ||||
Interest expense | 49 | 120 | 129 | 441 |
Insurance and other notes payable | ||||
Debt Instrument [Line Items] | ||||
Interest expense | $ 5 | $ 0 | $ 23 | $ 7 |
Related Party Transactions - Ot
Related Party Transactions - Other Purchases and Sales (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Applied Cryo Technologies | |||||
Related Party Transaction [Line Items] | |||||
Payment for equipment repairs and services | $ 500,000 | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | $ 0 | $ 100,000 | $ 100,000 | 100,000 | |
Due to related parties | $ 0 | $ 0 | $ 200,000 | ||
Affiliated Entity | Chart E&C | |||||
Related Party Transaction [Line Items] | |||||
Common stock, ownership percentage | 8% | 8% | |||
Affiliated Entity | Applied Cryo Technologies | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | 32,000 | ||||
Related party sales | 29,000 | 29,000 | |||
Due from related parties | 18,000 | ||||
Due to related parties | 23,000 | ||||
Affiliated Entity | Applied Cryo Technologies | Crenshaw Family Holding, LP | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 51% | 51% | |||
Affiliated Entity | TMG | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related parties | $ 38,000 | 100,000 | |||
Related party sales | 0 | $ 13,000 | $ 0 | 13,000 | |
Due from related parties | 0 | 0 | 0 | ||
Due to related parties | $ 100,000 | 100,000 | $ 800,000 | ||
Purchase of supplies and services | $ 200,000 | $ 800,000 | |||
Affiliated Entity | TMG | The Modern Group | |||||
Related Party Transaction [Line Items] | |||||
Equity method investment, ownership percentage | 25% | 25% |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation - Additional Information (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Class of Stock [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 | |
Shares issued in asset acquisition (in shares) | 500,000 | ||
Common stock, shares issued (in shares) | 18,386,733 | 17,691,268 | |
Unrecognized compensation costs | $ 1,500,000 | ||
Compensation costs | $ 1,700,000 | $ 2,700,000 | |
Black Scholes Valuation Model | |||
Class of Stock [Line Items] | |||
Closing price of common stock (in usd per share) | $ 4.11 | ||
Vesting period | 3 years | ||
Strike price (in usd per share) | $ 6 | ||
Purchase price of common stock, percent | 1.70% | ||
Fair value assumptions, expected dividend payments | $ 0 | ||
Term of award | 6 years 6 months | ||
Expiration period | 10 years | ||
Volatility rate | 58% | ||
Participant | |||
Class of Stock [Line Items] | |||
Grant limit (in shares) | 2,000,000 | ||
Non-Employee Board Member | |||
Class of Stock [Line Items] | |||
Grant limit (in shares) | 100,000 | ||
Amended and Restated 2019 Long Term Incentive Plan | |||
Class of Stock [Line Items] | |||
Common stock available for issuance (in shares) | 4,000,000 | ||
RSUs | |||
Class of Stock [Line Items] | |||
Common stock, shares issued (in shares) | 212,337 | ||
Number of shares granted (in shares) | 40,764 | ||
Outstanding vested (in shares) | 774,505 | ||
Share-based payment arrangement, accelerated cost | $ 200,000 | ||
Closing price of common stock (in usd per share) | $ 4.11 | ||
Vesting period | 3 years | ||
Unrecognized compensation costs | $ 1,100,000 | ||
Compensation costs outstanding (in shares) | 247,607 | ||
Unrecognized compensation costs, weighted average period (less than) | 1 year | ||
Options | |||
Class of Stock [Line Items] | |||
Unrecognized compensation costs | $ 3,300,000 | ||
Unrecognized compensation costs, weighted average period (less than) | 3 years | ||
Outstanding options (in shares) | 2,074,505 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||||
Basic weighted average number of common shares outstanding (in shares) | 18,324,534 | 17,578,653 | 18,256,587 | 17,202,631 | ||||
Dilutive securities (in shares) | 272,074 | 0 | 0 | 0 | ||||
Total shares including dilutive securities (in shares) | 18,596,608 | 17,578,653 | 18,256,587 | 17,202,631 | ||||
Net income (loss) from continuing operations | $ 1,024 | $ (4,581) | $ (1,410) | $ (5,326) | ||||
Loss from discontinued operations, net of tax | (1,301) | (44) | (1,441) | (128) | ||||
Net loss | $ (277) | $ (2,168) | $ (406) | $ (4,625) | $ (1,004) | $ 175 | $ (2,851) | $ (5,454) |
Basic income (loss) per common share: | ||||||||
Basic income (loss) per common share continuing operations (in usd per share) | $ 0.06 | $ (0.26) | $ (0.08) | $ (0.31) | ||||
Basic loss per common share from discontinued operations (in usd per share) | (0.07) | 0 | (0.08) | (0.01) | ||||
Basic net loss per common share (in usd per share) | (0.02) | (0.26) | (0.16) | (0.32) | ||||
Diluted income (loss) per common share: | ||||||||
Diluted income (loss) per common share from continuing operations (in usd per share) | 0.06 | (0.26) | (0.08) | (0.31) | ||||
Diluted loss per common share from discontinued operations (in usd per share) | (0.07) | 0 | (0.08) | (0.01) | ||||
Diluted net loss per common share (in usd per share) | $ (0.01) | $ (0.26) | $ (0.16) | $ (0.32) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | 0 | 0 | 0 |
In-The-Money Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 600,391 | |||
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 1,300,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | $ 635 | $ 380 |
Income taxes paid | 29 | 169 |
Significant non-cash investing and financing activities: | ||
Common stock issued to acquire fixed assets | 0 | 3,795 |
Equipment acquired from issuance of note payable | 359 | 0 |
Acquisition of fixed assets included within accounts payable | 565 | 0 |
Fixed assets transferred to assets held for sale | 1,841 | 0 |
Equipment acquired under capital leases | 0 | 104 |
Insurance premium financing | $ 1,203 | $ 1,278 |
Subsequent Events (Details)
Subsequent Events (Details) - Brazil Operations - Discontinued Operations - USD ($) $ in Millions | Oct. 31, 2022 | Sep. 30, 2022 |
Subsequent Event [Line Items] | ||
Disposal group, including discontinued operation, consideration | $ 0.9 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Disposal group, including discontinued operation, consideration | $ 0.9 | |
Proceeds from assets held for sale | 0.2 | |
Note receivable, year one | 0.1 | |
Note receivable, year two | 0.1 | |
Note receivable, year three | 0.2 | |
Note receivable, year four | $ 0.3 |