Natural Gas Services (NGS) 10-Q 15 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 06, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-31398
Entity Registrant Name	NATURAL GAS SERVICES GROUP, INC.
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	75-2811855
Entity Address, Address Line One	404 Veterans Airpark Ln., Ste 300
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79705
City Area Code	432
Local Phone Number	262-2700
Title of 12(b) Security	Common Stock, Par Value $0.01
Trading Symbol	NGS
Security Exchange Name	NYSE
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		12,437,074
Entity Central Index Key	0001084991
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 5,239	$ 2,746
Trade accounts receivable, net of allowance for doubtful accounts of $933 and $823, respectively	42,341	39,186
Inventory, net of allowance for obsolescence of $2,836	18,811	21,639
Federal income tax receivable	11,512	11,538
Prepaid expenses and other	938	1,162
Total current assets	78,841	76,271
Long-term inventory, net of allowance for obsolescence of $1,168	879	701
Rental equipment, net of accumulated depreciation of $197,780 and $191,745, respectively	377,999	373,649
Property and equipment, net of accumulated depreciation of $18,061 and $17,649, respectively	20,071	20,550
Intangibles, net of accumulated amortization of $2,415 and $2,384, respectively	744	775
Other assets	7,642	6,783
Total assets	486,176	478,729
Current Liabilities:
Accounts payable	12,431	17,628
Accrued liabilities	11,995	15,085
Total current liabilities	24,426	32,713
Long-term debt	172,000	164,000
Deferred income tax liability	43,092	41,636
Other long-term liabilities	5,392	4,486
Total liabilities	244,910	242,835
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Preferred stock, 5,000 shares authorized, no shares issued or outstanding	0	0
Common stock, 30,000 shares authorized, par value $0.01; 13,694 and 13,688 shares issued, respectively	137	137
Additional paid-in capital	116,754	116,480
Retained earnings	139,379	134,281
Treasury shares, at cost, 1,310 shares	(15,004)	(15,004)
Total stockholders' equity	241,266	235,894
Total liabilities and stockholders' equity	$ 486,176	$ 478,729

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Allowance for doubtful accounts	$ 933	$ 823
Allowance for inventory obsolescence, current	2,836	2,836
Allowance for inventory obsolescence, noncurrent	1,168	1,168
Accumulated depreciation, rental equipment	197,780	191,745
Accumulated depreciation, property and equipment	18,061	17,649
Accumulated amortization, intangibles	$ 2,415	$ 2,384
Stockholders’ Equity:
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	13,694,000	13,688,000
Treasury shares (in shares)	1,310,000	1,310,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue:
Rental income	$ 33,734	$ 22,723
Total revenue from contracts with customers	3,173	3,897
Total revenue	36,907	26,620
Operating costs and expenses:
Cost of rentals, exclusive of depreciation stated separately below	13,114	11,645
Cost of sales, exclusive of depreciation stated separately below	2,180	3,237
Cost of aftermarket services, exclusive of depreciation stated separately below	500	609
Selling, general and administrative expenses	4,702	4,562
Depreciation and amortization	7,087	6,165
Retirement of rental equipment	5	0
Total operating costs and expenses	27,588	26,218
Operating income	9,319	402
Other income (expense):
Interest expense	(2,935)	0
Other income, net	193	118
Total other income (expense), net	(2,742)	118
Income before provision for income taxes	6,577	520
Income tax (expense) benefit	(1,479)	(150)
Net income	$ 5,098	$ 370
Earnings per share:
Basic (in dollars per share)	$ 0.41	$ 0.03
Diluted (in dollars per share)	$ 0.41	$ 0.03
Weighted average shares outstanding:
Basic (in shares)	12,380	12,213
Diluted (in shares)	12,465	12,354
Sales
Revenue:
Total revenue from contracts with customers	$ 2,503	$ 2,992
Aftermarket services
Revenue:
Total revenue from contracts with customers	$ 670	$ 905

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2022		0
Beginning balance at Dec. 31, 2022	$ 230,076	$ 0	$ 135	$ 115,411	$ 129,534	$ (15,004)
Beginning balance (in shares) at Dec. 31, 2022			13,519,000
Beginning balance (in shares) at Dec. 31, 2022						1,310,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense on common stock options	22			22
Issuance of restricted stock (in shares)			29,000
Compensation expense on restricted common stock	465			465
Taxes paid related to net shares settlement of equity awards	(184)			(184)
Net income	370				370
Ending balance (in shares) at Mar. 31, 2023		0
Ending balance at Mar. 31, 2023	$ 230,749	$ 0	$ 135	115,714	129,904	$ (15,004)
Ending balance (in shares) at Mar. 31, 2023			13,548,000
Ending balance (in shares) at Mar. 31, 2023						1,310,000
Beginning balance (in shares) at Dec. 31, 2023	0	0
Beginning balance at Dec. 31, 2023	$ 235,894	$ 0	$ 137	116,480	134,281	$ (15,004)
Beginning balance (in shares) at Dec. 31, 2023	13,688,000		13,688,000
Beginning balance (in shares) at Dec. 31, 2023	1,310,000					1,310,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense on common stock options	$ 29			29
Compensation expense on restricted common stock	245			245
Taxes paid related to net shares settlement of equity awards (in shares)			6,000
Net income	$ 5,098				5,098
Ending balance (in shares) at Mar. 31, 2024	0	0
Ending balance at Mar. 31, 2024	$ 241,266	$ 0	$ 137	$ 116,754	$ 139,379	$ (15,004)
Ending balance (in shares) at Mar. 31, 2024	13,694,000		13,694,000
Ending balance (in shares) at Mar. 31, 2024	1,310,000					1,310,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,098	$ 370
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,087	6,165
Amortization of debt issuance costs	150	52
Deferred income tax expense	1,456	148
Stock-based compensation	274	487
Bad debt allowance	110	48
Gain on sale of assets	0	(25)
Retirement of rental equipment	5	0
Loss (gain) on company owned life insurance	(184)	(18)
Changes in operating assets and liabilities:
Trade accounts receivables	(3,265)	(351)
Inventory	2,650	(986)
Prepaid expenses and prepaid income taxes	250	497
Accounts payable and accrued liabilities	(7,962)	11,574
Deferred income	(418)	77
Other	358	184
NET CASH PROVIDED BY OPERATING ACTIVITIES	5,609	18,222
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of rental equipment, property and other equipment	(10,932)	(47,792)
Purchase of company owned life insurance	(9)	(50)
NET CASH USED IN INVESTING ACTIVITIES	(10,941)	(47,842)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loan	8,000	36,011
Payments of other long-term liabilities, net	(175)	(36)
Payments of debt issuance costs	0	(2,131)
Taxes paid related to net share settlement of equity awards	0	(184)
NET CASH PROVIDED BY FINANCING ACTIVITIES	7,825	33,660
NET CHANGE IN CASH AND CASH EQUIVALENTS	2,493	4,040
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	2,746	3,372
CASH AND CASH EQUIVALENTS AT END OF PERIOD	5,239	7,412
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	6,220	855
NON-CASH TRANSACTIONS
Transfer of rental equipment to inventory	0	708
Right of use asset acquired through a finance lease	$ 532	$ 0

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of BusinessNatural Gas Services Group, Inc. (the "Company", “NGS”, "Natural Gas Services Group", "we" or "our") (a Colorado corporation), is a leading provider of natural gas compression equipment and services to the energy industry. We rent, service and maintain natural gas compressors and related equipment. We also design, fabricate and manufacture compressor units both for sale and rental to our customers. NGS is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, a rebuild shop in Midland, Texas, and service facilities located in major oil and natural gas producing basins in the U.S. The Company was formed on December 17, 1998.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiary, NGSG Properties, LLC, which owns the Company's headquarter office building and the rabbi trust associated with the Company's deferred compensation plan. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. These financial statements include all adjustments, consisting of only normal recurring adjustments, which are necessary to make our financial position at March 31, 2024 and the results of our operations for the three months ended March 31, 2024 and 2023 not misleading. Some adjustments may cause the prior year number in these financial statements to differ from the prior year interim financial statements. As permitted by the rules and regulations of the Securities and Exchange Commission (the "SEC"), the accompanying condensed consolidated financial statements do not include all disclosures normally required by generally accepted accounting principles in the United States of America (GAAP). These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 on file with the SEC. In our opinion, the condensed consolidated financial statements are a fair presentation of the financial position, results of operations, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2024. Revenue Recognition Policy Revenue is measured based on the consideration and terms specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties (i.e. sales and property taxes). Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our Consolidated Statements of Operations. Nature of Goods and Services The following is a description of principal activities from which the Company generates its revenue: Rental Revenue. The Company generates revenue from renting compressors to our customers. These contracts, which all qualify as operating leases under ASC Topic 842, Leases (ASC 842), may also include a fee for servicing the compressor during the rental contract. Our rental contracts typically range from six Sales Revenue . The Company generates revenue by the sale of custom/fabricated compressors and parts, as well as exchange/rebuilding customer owned compressors and sale of used rental equipment. Our sales revenue is recognized in accordance with ASC 606. Custom/fabricated compressors - The Company designs and fabricates compressors based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor is completed and shipped, or in accordance with a bill and hold arrangement, in which the customer accepts title and assumes the risk and rewards of ownership at a specified time. We request some of our customers to make progressive payments as the compressor is being built; these payments are recorded as a contract liability on the Accrued Liability line on the consolidated balance sheet until control has been transferred. These contracts also may include an assurance warranty clause to guarantee the product is free from defects in material and workmanship for a set duration of time; this is a standard industry practice and is not considered a performance obligation. Parts - Revenue is recognized after the customer obtains control of the parts. Control is passed either by the customer taking physical possession or the parts being shipped. The amount of revenue recognized is not adjusted for expected returns, as our historical part returns have been de minimis. Exchange or rebuild customer owned compressors - Based on the contract, the Company will either exchange a new/rebuilt compressor for the customer’s malfunctioning compressor or rebuild the customer’s compressor. Revenue is recognized after control of the replacement or rebuilt compressor has transferred to the customer based on the terms of the contract, i.e., by physical delivery, delivery and installment, or shipment of the compressor. Used compressors - From time to time, a customer may request to purchase a used compressor out of our rental fleet. Revenue from the sale of rental equipment is recognized when the control has passed to the customer based on the terms of the contract, i.e. when the customer has taken physical possession or the equipment has been shipped. Aftermarket Service Revenue . The Company provides routine or call-out services on customer owned equipment. Revenue is recognized after services in the contract are rendered. Payment terms for sales revenue and aftermarket services revenue discussed above are generally 30 to 60 days although terms for specific customers can vary. Also, the transaction prices are not subject to variable consideration constraints. Disaggregation of Revenue The following table shows the Company's revenue disaggregated by product or service type for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 (in thousands) Compressors - sales $ 1,283 $ 969 Other (parts/rebuilds) - sales 1,220 2,023 Aftermarket services 670 905 Total revenue from contracts with customers 3,173 3,897 Add: ASC 842 rental revenue 33,734 22,723 Total revenue $ 36,907 $ 26,620 Contract Balances As of March 31, 2024 and December 31, 2023, we had the following receivables and deferred income from contracts with customers: March 31, 2024 December 31, 2023 (in thousands) Accounts Receivable Accounts receivable - contracts with customers $ 5,186 $ 7,138 Accounts receivable - ASC 842 38,088 32,871 Total Accounts Receivable 43,274 40,009 Less: Allowance for doubtful accounts (933) (823) Total Accounts Receivable, net $ 42,341 $ 39,186 Deferred income $ — $ 418 The Company recognized sales revenues of $418 thousand for the three months ended March 31, 2024 that was included in accrued liabilities at the beginning of 2024. The increase in accounts receivable and decrease in deferred income were primarily due to normal timing differences between our performance and the customers’ payments. Remaining Performance Obligations As of March 31, 2024, the Company had no deferred revenue related to unsatisfied performance obligations. Contract Costs The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general and administrative expenses on our condensed consolidated statements of operations. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense in the tax provision in our condensed consolidated statements of operations. We account for uncertain tax positions in accordance with guidance in ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the condensed consolidated financial statements. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. We have no liabilities for uncertain ta x positions as of March 31, 2024. Our policy regarding income tax interest and penalties is to expense those items as interest expense and other expense, respectively. Capitalized Interest The Company capitalizes interest from external borrowings on significant expenditures for the fabrication of its natural gas compressor equipment until such projects are ready for their intended use. Capitalized interest is added to the cost of the underlying asset and is amortized over the useful lives of the assets in the same manner as the underlying assets. For the three months ended March 31, 2024 and 2023, th e Company capitalized interest aggregating approximately $1.2 million a nd $0.9 million , respe ctively. Recently Issued Accounting Pronouncements In December 2023, the Financial Standards Accounting Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on the financial statement disclosures. In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements or disclosures.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Inventory	Inventory Our inventory, net of allowance for obsolescence of $4.0 million at March 31, 2024 and $4.0 million at December 31, 2023, consisted of the following amounts: March 31, 2024 December 31, 2023 (in thousands) Inventory, net of allowance for obsolescence of $2,836,000 $ 17,934 $ 20,227 Work-in-process 877 1,412 Inventory - current 18,811 21,639 Raw materials - long term net of allowance of $1,168 879 701 Inventory - total $ 19,690 $ 22,340 Our long-term inventory consists of raw materials that remain viable but that the Company does not expect to sell or use within one year. Inventory Allowance We routinely review our inventory allowance balance to account for slow moving or obsolete inventory costs that may not be recoverable in the future. A summary of our inventory allowance is as follows: March 31, 2024 December 31, 2023 (in thousands) Beginning balance $ 4,004 $ 120 Accruals — 3,965 Write-offs — (81) Ending balance $ 4,004 $ 4,004

Federal Income Tax Receivable

Federal Income Tax Receivable	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Federal Income Tax Receivable	Federal Income Tax Receivable On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the economic impact caused by the COVID-19 pandemic. The CARES Act allowed NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid federal income taxes. The Company generated significant NOLs during 2018 and 2019, and has filed amended returns to carryback these losses for five years. Accordingly, during 2020, the Company recorded a federal income tax receivable of $15.0 million and an increase to its deferred income tax liability of $10.1 million on its condensed consolidated balance sheet. During the third quarter of 2020, the

Rental Equipment

Rental Equipment	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Rental Equipment	Rental Equipment Our rental equipment and associated accumulated depreciation as of March 31, 2024 and December 31, 2023, respectively, consisted of the following: March 31, 2024 December 31, 2023 (in thousands) Compressor units $ 517,592 $ 514,527 Work-in-process 58,187 50,867 Rental equipment 575,779 565,394 Accumulated depreciation (197,780) (191,745) Rental equipment, net of accumulated depreciation $ 377,999 $ 373,649

Long-term Debt

Long-term Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Our long-term debt consists of the following: March 31, 2024 December 31, 2023 (in thousands) Total long-term debt $ 172,000 $ 164,000 Amended and Restated Credit Agreement On May 11, 2021, we entered into a five-year senior secured revolving credit agreement ("Credit Agreement") with Texas Capital Bank, National Association (the "Lender") with an initial commitment of $20 million and an accordion feature that would increase the maximum commitment to $30 million, subject to collateral availability. On December 12, 2022, we entered into a First Amendment to the Credit Agreement (the "First Amendment") to increase the maximum commitment to $30 million. We also have a right to request from the Lender, on an uncommitted basis, an increase of up to $30 million on the aggregate commitment; provided, however, the aggregate commitment amount is not permitted to exceed $50 million. The maturity date of the Credit Agreement was May 11, 2026. The obligations under the Credit Agreement were secured by a first priority lien on a variety of our assets, including inventory and accounts receivable as well as a variable number of our leased compressor equipment. On February 28, 2023, we replaced our prior credit agreement by entering into a five-year senior secured revolving credit agreement (“Amended and Restated Credit Agreement”) with Texas Capital Bank, as administrative agent (the “Lender”), TCBI Securities, Inc., as joint lead arranger and sole book runner and Bank of America, N.A., as joint lead arranger, with an initial commitment of $175 million as of the closing date. Subject to collateral availability, we also have a right to request from the Lender, on an uncommitted basis, an increase of up to $125 million on the aggregate commitment; provided, however, the aggregate commitment amount is not permitted to exceed $300 million. The maturity date of the Amended and Restated Credit Agreement is February 28, 2028. The obligations under the Amended and Restated Credit Agreement are secured by a first priority lien on most of our assets, including inventory and accounts receivable as well as a variable number of our leased compressor equipment. In connection with the amendment we agreed to pay fees of $2.0 million (representing fees equal to 1.39% of the $145 million increase in the commitment) and reimburse the lenders for their expenses. On November 14, 2023, the Company entered into a First Amendment to the Amended and Restated Credit Agreement (the "Amendment") with the Lender and certain other lenders to (i) increase the lender commitment from $175 million to $225 million, and (ii) to add First-Citizens Bank & Trust Company as a new lender to the facility. In connection with the Amendment, we agreed to pay fees of $0.6 million (representing fees equal to 1.125% of the $50 million increase in the commitment) and reimburse the lenders for their expenses. As of March 31, 2024, we were in compliance with all financial covenants in our Amended and Restated Credit Agreement. As of March 31, 2024, we had approximately $172 million outstanding under our Amended and Restated Credit Agreement with a weighted average interest rate of 8.93%. At March 31, 2024, we had approximately $46.1 million available for borrowing under the Amended and Restated Credit Agreement, subject to borrowing base determination. Borrowing Base . At any time before the maturity of the Amended and Restated Credit Agreement, we may draw, repay and re-borrow amounts available under the borrowing base up to the maximum aggregate availability discussed above. Generally, the borrowing base equals the sum of (a) 85% of eligible accounts receivable owed to the Company, plus (b) 50% of the eligible inventory, valued at the lower of cost or market value at such time, subject to a cap of this component not to exceed $2.5 million, plus (c) the lesser of (i) 95% of the net book value of the compressors that the Lender has determined are eligible for the extension of credit, valued at the lower of cost or market value with depreciation not to exceed 25 years, at such time and (ii) 80% of the net liquidation value percentage of the net book value of the eligible compressors that the Lender has determined are eligible for the extension of credit, valued at the lower of cost or market value with depreciation not to exceed 25 years, at such time, plus (d) 80% of the net book value, valued at the lower of cost (excluding any costs for capitalized interest or other noncash capitalized costs) or market of the eligible new compressor fleet, minus (e) any required availability reserves determined by the Lender in its sole discretion. The Lender may adjust the borrowing base components if material deviations in the collateral are discovered in future audits of the collateral. Interest and Fees. Under the terms of the Amended and Restated Credit Agreement, we have the option of selecting the applicable variable rate for each revolving loan, or portion thereof, of either (a) the Base Rate (as defined below) plus the Applicable Margin, or (b) in the case of a Term SOFR (“Secured Overnight Financing Rate”) Loan, the Adjusted Term SOFR rate plus the Applicable Margin. "Base Rate" means, for any day, a rate of interest per annum equal to the highest of (a) the prime rate for such day; (b) the sum of the federal funds rate for such day plus 0.50%; and (c) the Adjusted Term SOFR for such day plus 1.00%. The Applicable Margin is determined based upon the leverage ratio as set forth in the most recent compliance certificate received by the Lender for each fiscal quarter from time to time pursuant to the Amended and Restated Credit Agreement. Depending on the leverage ratio, the Applicable Margin can be 2.00% to 2.75% for Base Rate Loans (as defined in the Amended and Restated Credit Agreement) and 3% to 3.75% for Term SOFR Loans and for requested letters of credit. In addition, we are required to pay a monthly commitment fee on the daily average unused amount of the commitment while the Amended and Restated Credit Agreement is in effect at an annual rate equal to 0.50% of the unused commitment amount. Accrued interest is payable monthly on outstanding principal amounts and unused commitment fee, provided that accrued interest on Term SOFR Loans is payable at the end of each interest period, but in no event less frequently than quarterly. Covenants. The Amended and Restated Credit Agreement contains customary representations and warranties, as well as covenants which, among other things, condition or limit our ability to incur additional indebtedness and liens; enter into transactions with affiliates; make acquisitions in excess of certain amounts; pay dividends; redeem or repurchase capital stock or senior notes; make investments or loans; make negative pledges; consolidate, merge or effect asset sales; or change the nature of our business. In addition, we are subject to certain financial covenants in the Amended and Restated Credit Agreement that require us to maintain (i) a leverage ratio, as defined, lesser than or equal to 3.50 to 1.00 as of the last day of each fiscal quarter ending on or prior to December 31, 2024 and 3.25 to 1.00 for the fiscal quarter ending March 31, 2025 and for each fiscal quarter thereafter and (ii) a fixed charge coverage ratio greater than or equal to 1.25 to 1.00 as of the last day of each fiscal quarter. As of March 31, 2024, the Company is in compliance with these covenants. Events of Default and Acceleration . The Amended and Restated Credit Agreement contains customary events of default for credit facilities of this size and type, and includes, without limitation, payment defaults; defaults in performance of covenants or other agreements contained in the Amended and Restated Credit Agreement and the other transaction documents; inaccuracies in representations and warranties; certain defaults, termination events or similar events; certain defaults with respect to any other Company indebtedness in excess of $1.0 million; certain bankruptcy or insolvency events; the rendering of certain judgments in excess of $1.0 million; certain ERISA events; certain change in control events and the defectiveness of any liens. Obligations outstanding under the Amended and Restated Credit Agreement may be accelerated upon the occurrence of an event of default. .

Stock-Based and Other Long-Term

Stock-Based and Other Long-Term Incentive Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based and Other Long-Term Incentive Compensation	Stock-Based and Other Long-Term Incentive Compensation Stock Options A summary of all option activity as of December 31, 2023, and changes during the three months ended March 31, 2024 is presented below: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2023 129,751 $ 20.59 4.10 $ 274 Granted — $ — — $ — Cancelled / Forfeited (667) $ 10.58 — $ 3 Expired (29,667) $ 30.41 — $ — Outstanding, March 31, 2024 99,417 $ 17.72 4.98 $ 442 Exercisable, March 31, 2024 75,082 $ 19.97 3.92 $ 231 The following table summarizes information about our stock options outstanding at March 31, 2024: Range of Exercise Prices Options Outstanding Options Exercisable Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $0.01-18.00 51,000 8.01 $ 10.77 26,665 $ 10.76 $22.01-26.00 28,667 1.03 $ 22.90 28,667 $ 22.90 $26.01-30.00 19,750 2.88 $ 28.15 19,750 $ 28.15 99,417 4.98 $ 17.72 75,082 $ 19.97 The following table summarizes changes in our unvested stock options for the three months ended March 31, 2024: Unvested Stock Options: Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2023 24,335 $ 5.45 Granted — $ — Vested, outstanding shares — $ — Cancelled/Forfeited — $ — Unvested at March 31, 2024 24,335 $ 5.45 As of March 31, 2024, there was $82,000 of unrecognized compensation cost related to unvested options. For the three months ended March 31, 2024, there was $29,000 of compensation expense for stock options. For the three months ended March 31, 2023, there was $22,000 of compensation expense for stock options. Restricted Shares/Units and Performance Share Units The following summarizes grants made of equity awards under our 2019 Equity Incentive Plan, as amended, on the dates indicated: • On April 25, 2023, the Compensation Committee awarded 27,840 shares of restricted stock to our Chief Technical Officer that vest ratably over three years, beginning on April 25, 2024. • Pursuant to the Retirement Agreement dated May 17, 2022, between the Company and Mr. Taylor, on April 25, 2023, the Compensation Committee awarded 58,790 fully vested shares of common stock to Mr. Taylor. • On May 9, 2023, the Compensation Committee awarded each of our four independent Board members 9,470 restricted stock units. These restricted stock units vest one year from the date of grant. With respect to the 9,470 share RSU award received by Mr. Jacobs, at the time of grant, he was an employee of Mill Road Capital Management, LLC (“Mill Road”), and was serving on our Board pursuant to a right of appointment held by Mill Road in connection with a Cooperation Agreement between Mill Road and us. Pursuant to a pre-existing contractual obligation, Mill Road has the right to receive the economic benefit of the shares upon vesting of this RSU. On January 29, 2024, Mr. Jacobs terminated his employment with Mill Road and on February 12, 2024, he began employment as our permanent Chief Executive Officer. As a result, since he no longer qualified as an independent member of our Board, Mr. Jacobs relinquished the vesting of 2,252 shares representing the pro-rata number of shares allocable under the award since the beginning his employment in February. Thus, these shares have not been issued and remain in our 2019 Plan for future award grants. In connection with the contractual obligation noted above, 6,856 of the vested shares are in the process of being transferred by Mr. Jacobs to Mill Road for no consideration, and Mr. Jacobs continues to own 362 of the vested shares relating the period between his termination of employment with Mill Road and employment as our CEO. • On June 30, 2023, Stephen C. Taylor, in connection with his agreement to continue as our Interim Chief Executive Officer while we finalized our permanent CEO search, was granted restricted stock units for 10,101 shares of common stock that vest one year from the date of grant. In addition, Mr. Taylor was also issued 10,101 shares of common stock pursuant to his Retirement Agreement. • On October 8, 2023, the Compensation Committee awarded 6,361 restricted stock units to Brian Tucker, our Chief Operating Officer. These units will vest ratably over three years beginning on October 9, 2024. • On October 26, 2023, the compensation committee awarded 4,623 restricted stock units to an independent director. These units vest one year from the date of the grant. • On January 29, 2024, the compensation committee awarded Justin Jacobs, our Chief Executive Officer, 31,382 restricted stock units and two performance share unit awards, one for 6,494 shares representing a signing bonus and another for 31,382 shares representing an award for 2024 (pro-rated). The restricted stock units vest over three years in equal tranches beginning on the one-year anniversary of the grant date. . • On March 4, 2024, the compensation committee awarded Brian Tucker our Chief Operating Officer 11,293 restricted stock units and 11,293 performance share units. These restricted stock units vest over three years in equal tranches beginning on the one-year anniversary of the grant date. • In addition on March 14, 2024, the compensation committee awarded Jim Hazlett, our Chief Technical Officer, 21,984 restricted stock units. These restricted stock units vest over three years in equal tranches beginning on the one-year anniversary of the grant date. In connection with the performance share unit awards granted to Messrs. Jacobs and Tucker set forth above, potential payout for the PSU award is based upon performance for a three-year period ending December 31, 2026 measured against relative total shareholder return (“TSR”) compared to a peer group as established by the Compensation Committee. The PSU award payout ranges from zero (if the Company ranks below the 30th percentile) and up to 200% for Mr. Jacobs, the CEO (if the Company ranks first) based upon the Company’s relative TSR performance ranking (subject to certain caps based on absolute TSR). Total compensation expense related to these and previously granted restricted stock awards was $0.2 million and $0.5 million for the nine months ended March 31, 2024, and 2023, respectively. A summary of all restricted stock/units outstanding as of December 31, 2023 and activity during the three months ended March 31, 2024 is presented below: Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2023 133,898 $ 10.66 1.57 $ 1,813 Granted 64,659 $ 16.60 $ 1,073 Vested (9,648) $ 9.52 $ 157 Canceled/Forfeited (21,147) $ 11.12 $ 235 Outstanding, March 31, 2024 167,762 $ 13.02 3.97 $ 3,260

Earnings (loss) per Share

Earnings (loss) per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings (loss) per Share	Earnings (loss) per Share The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation : Three months ended March 31, 2024 2023 (in thousands, except per share data) Numerator: Net income (loss) $ 5,098 $ 370 Denominator for earnings per basic common share: Weighted average common shares outstanding 12,380 12,213 Denominator for earnings per diluted common share: Weighted average common shares outstanding 12,380 12,213 Dilutive effect of stock options and restricted stock/units 85 141 Diluted weighted average shares 12,465 12,354 Earnings (loss) per common share: Basic $ 0.41 $ 0.03 Diluted $ 0.41 $ 0.03

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesFrom time to time, we are a party to various legal proceedings in the ordinary course of our business. We are not currently a party to any material legal proceedings, and we are not aware of any threatened material litigation. The Company believes it maintains adequate insurance coverage against any potential litigation loss relating to insurable risks.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In accordance with ASC 855 - Subsequent Events - the Company has evaluated all events subsequent to the balance sheet date as of March 31, 2024 through the date this report was issued and believes nothing is required thereunder.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiary, NGSG Properties, LLC, which owns the Company's headquarter office building and the rabbi trust associated with the Company's deferred compensation plan. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation. These financial statements include all adjustments, consisting of only normal recurring adjustments, which are necessary to make our financial position at March 31, 2024 and the results of our operations for the three months ended March 31, 2024 and 2023 not misleading. Some adjustments may cause the prior year number in these financial statements to differ from the prior year interim financial statements. As permitted by the rules and regulations of the Securities and Exchange Commission (the "SEC"), the accompanying condensed consolidated financial statements do not include all disclosures normally required by generally accepted accounting principles in the United States of America (GAAP). These financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 on file with the SEC. In our opinion, the condensed consolidated financial statements are a fair presentation of the financial position, results of operations, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2024.
Revenue Recognition Policy and Contract Costs	Revenue Recognition Policy Revenue is measured based on the consideration and terms specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties (i.e. sales and property taxes). Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our Consolidated Statements of Operations. Nature of Goods and Services The following is a description of principal activities from which the Company generates its revenue: Rental Revenue. The Company generates revenue from renting compressors to our customers. These contracts, which all qualify as operating leases under ASC Topic 842, Leases (ASC 842), may also include a fee for servicing the compressor during the rental contract. Our rental contracts typically range from six Sales Revenue . The Company generates revenue by the sale of custom/fabricated compressors and parts, as well as exchange/rebuilding customer owned compressors and sale of used rental equipment. Our sales revenue is recognized in accordance with ASC 606. Custom/fabricated compressors - The Company designs and fabricates compressors based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor is completed and shipped, or in accordance with a bill and hold arrangement, in which the customer accepts title and assumes the risk and rewards of ownership at a specified time. We request some of our customers to make progressive payments as the compressor is being built; these payments are recorded as a contract liability on the Accrued Liability line on the consolidated balance sheet until control has been transferred. These contracts also may include an assurance warranty clause to guarantee the product is free from defects in material and workmanship for a set duration of time; this is a standard industry practice and is not considered a performance obligation. Parts - Revenue is recognized after the customer obtains control of the parts. Control is passed either by the customer taking physical possession or the parts being shipped. The amount of revenue recognized is not adjusted for expected returns, as our historical part returns have been de minimis. Exchange or rebuild customer owned compressors - Based on the contract, the Company will either exchange a new/rebuilt compressor for the customer’s malfunctioning compressor or rebuild the customer’s compressor. Revenue is recognized after control of the replacement or rebuilt compressor has transferred to the customer based on the terms of the contract, i.e., by physical delivery, delivery and installment, or shipment of the compressor. Used compressors - From time to time, a customer may request to purchase a used compressor out of our rental fleet. Revenue from the sale of rental equipment is recognized when the control has passed to the customer based on the terms of the contract, i.e. when the customer has taken physical possession or the equipment has been shipped. Aftermarket Service Revenue . The Company provides routine or call-out services on customer owned equipment. Revenue is recognized after services in the contract are rendered. Payment terms for sales revenue and aftermarket services revenue discussed above are generally 30 to 60 days although terms for specific customers can vary. Also, the transaction prices are not subject to variable consideration constraints. Contract Costs The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general and administrative expenses on our condensed consolidated statements of operations.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. To the extent we establish a valuation allowance or increase this allowance in a period, we include an expense in the tax provision in our condensed consolidated statements of operations. We account for uncertain tax positions in accordance with guidance in ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the condensed consolidated financial statements. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon settlement. A liability for unrecognized tax benefits is recorded for any tax benefits claimed in our tax returns that do not meet these recognition and measurement standards. We have no liabilities for uncertain ta x positions as of March 31, 2024. Our policy regarding income tax interest and penalties is to expense those items as interest expense and other expense, respectively.
Capitalized Interest	Capitalized Interest
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In December 2023, the Financial Standards Accounting Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on the financial statement disclosures. In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements or disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Disaggregation of Revenue	The following table shows the Company's revenue disaggregated by product or service type for the three months ended March 31, 2024 and 2023: Three months ended March 31, 2024 2023 (in thousands) Compressors - sales $ 1,283 $ 969 Other (parts/rebuilds) - sales 1,220 2,023 Aftermarket services 670 905 Total revenue from contracts with customers 3,173 3,897 Add: ASC 842 rental revenue 33,734 22,723 Total revenue $ 36,907 $ 26,620
Schedule of Contract with Customer, Asset and Liability	As of March 31, 2024 and December 31, 2023, we had the following receivables and deferred income from contracts with customers: March 31, 2024 December 31, 2023 (in thousands) Accounts Receivable Accounts receivable - contracts with customers $ 5,186 $ 7,138 Accounts receivable - ASC 842 38,088 32,871 Total Accounts Receivable 43,274 40,009 Less: Allowance for doubtful accounts (933) (823) Total Accounts Receivable, net $ 42,341 $ 39,186 Deferred income $ — $ 418

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventory	Our inventory, net of allowance for obsolescence of $4.0 million at March 31, 2024 and $4.0 million at December 31, 2023, consisted of the following amounts: March 31, 2024 December 31, 2023 (in thousands) Inventory, net of allowance for obsolescence of $2,836,000 $ 17,934 $ 20,227 Work-in-process 877 1,412 Inventory - current 18,811 21,639 Raw materials - long term net of allowance of $1,168 879 701 Inventory - total $ 19,690 $ 22,340 A summary of our inventory allowance is as follows: March 31, 2024 December 31, 2023 (in thousands) Beginning balance $ 4,004 $ 120 Accruals — 3,965 Write-offs — (81) Ending balance $ 4,004 $ 4,004

Rental Equipment (Tables)

Rental Equipment (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Rental Equipment	Our rental equipment and associated accumulated depreciation as of March 31, 2024 and December 31, 2023, respectively, consisted of the following: March 31, 2024 December 31, 2023 (in thousands) Compressor units $ 517,592 $ 514,527 Work-in-process 58,187 50,867 Rental equipment 575,779 565,394 Accumulated depreciation (197,780) (191,745) Rental equipment, net of accumulated depreciation $ 377,999 $ 373,649

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	Our long-term debt consists of the following: March 31, 2024 December 31, 2023 (in thousands) Total long-term debt $ 172,000 $ 164,000

Stock-Based and Other Long-Te_2

Stock-Based and Other Long-Term Incentive Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Option Activity	A summary of all option activity as of December 31, 2023, and changes during the three months ended March 31, 2024 is presented below: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2023 129,751 $ 20.59 4.10 $ 274 Granted — $ — — $ — Cancelled / Forfeited (667) $ 10.58 — $ 3 Expired (29,667) $ 30.41 — $ — Outstanding, March 31, 2024 99,417 $ 17.72 4.98 $ 442 Exercisable, March 31, 2024 75,082 $ 19.97 3.92 $ 231
Schedule of Stock Options Outstanding	The following table summarizes information about our stock options outstanding at March 31, 2024: Range of Exercise Prices Options Outstanding Options Exercisable Shares Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price Shares Weighted Average Exercise Price $0.01-18.00 51,000 8.01 $ 10.77 26,665 $ 10.76 $22.01-26.00 28,667 1.03 $ 22.90 28,667 $ 22.90 $26.01-30.00 19,750 2.88 $ 28.15 19,750 $ 28.15 99,417 4.98 $ 17.72 75,082 $ 19.97
Schedule of Status of Unvested Stock Options	The following table summarizes changes in our unvested stock options for the three months ended March 31, 2024: Unvested Stock Options: Shares Weighted Average Grant Date Fair Value Per Share Unvested at December 31, 2023 24,335 $ 5.45 Granted — $ — Vested, outstanding shares — $ — Cancelled/Forfeited — $ — Unvested at March 31, 2024 24,335 $ 5.45
Schedule of Restricted Stock Activity	A summary of all restricted stock/units outstanding as of December 31, 2023 and activity during the three months ended March 31, 2024 is presented below: Number Weighted Average Weighted Aggregate Intrinsic Value (in thousands) Outstanding, December 31, 2023 133,898 $ 10.66 1.57 $ 1,813 Granted 64,659 $ 16.60 $ 1,073 Vested (9,648) $ 9.52 $ 157 Canceled/Forfeited (21,147) $ 11.12 $ 235 Outstanding, March 31, 2024 167,762 $ 13.02 3.97 $ 3,260

Earnings (loss) per Share (Tabl

Earnings (loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table reconciles the numerators and denominators of the basic and diluted earnings per share computation : Three months ended March 31, 2024 2023 (in thousands, except per share data) Numerator: Net income (loss) $ 5,098 $ 370 Denominator for earnings per basic common share: Weighted average common shares outstanding 12,380 12,213 Denominator for earnings per diluted common share: Weighted average common shares outstanding 12,380 12,213 Dilutive effect of stock options and restricted stock/units 85 141 Diluted weighted average shares 12,465 12,354 Earnings (loss) per common share: Basic $ 0.41 $ 0.03 Diluted $ 0.41 $ 0.03

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from External Customer [Line Items]
Revenue	$ 36,907,000	$ 26,620,000
Revenue recognized	418,000
Deferred income	$ 0		$ 418,000
Amortization period of capitalized contract costs	1 year
Uncertain tax positions	$ 0
Capitalized interest	$ 1,200,000	$ 900,000
Rental Contracts, Excluding Large Horsepower Compressors | Minimum
Revenue from External Customer [Line Items]
Rental contract term	6 months
Rental Contracts, Large Horsepower Compressors | Maximum
Revenue from External Customer [Line Items]
Rental contract term	60 months

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 3,173	$ 3,897
Add: ASC 842 rental revenue	33,734	22,723
Total revenue	36,907	26,620
Compressors - sales
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,283	969
Other (parts/rebuilds) - sales
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,220	2,023
Aftermarket services
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 670	$ 905

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Contract with Customer, Asset and Liability (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Accounts Receivable
Accounts receivable - contracts with customers	$ 5,186,000	$ 7,138,000
Accounts receivable - ASC 842	38,088,000	32,871,000
Total Accounts Receivable	43,274,000	40,009,000
Less: Allowance for doubtful accounts	(933,000)	(823,000)
Total Accounts Receivable, net	42,341,000	39,186,000
Deferred income	$ 0	$ 418,000

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Allowance for inventory obsolescence, current	$ 4,004	$ 4,004	$ 120
Allowance for inventory obsolescence, current	2,836	2,836
Inventory, net of allowance for obsolescence of $2,836,000	17,934	20,227
Work-in-process	877	1,412
Inventory - current	18,811	21,639
Allowance for inventory obsolescence, noncurrent	1,168	1,168
Raw materials - long term net of allowance of $1,168	879	701
Inventory - total	$ 19,690	$ 22,340

Inventory - Schedule of Inven_2

Inventory - Schedule of Inventory Allowance (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Inventory Valuation Reserves [Roll Forward]
Beginning balance	$ 4,004	$ 120
Accruals	0	3,965
Write-offs	0	(81)
Ending balance	$ 4,004	$ 4,004

Federal Income Tax Receivable (

Federal Income Tax Receivable (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2020	Mar. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Federal income tax receivable		$ 15,000	$ 11,512	$ 11,538
Deferred tax liability increase due to tax law change		$ 10,100
Income tax received refunds	$ 3,900

Rental Equipment (Details)

Rental Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Rental equipment	$ 575,779	$ 565,394
Accumulated depreciation	(197,780)	(191,745)
Rental equipment, net of accumulated depreciation	377,999	373,649
Impairment of rental equipment (less than)	100
Compressor units
Property, Plant and Equipment [Line Items]
Rental equipment	517,592	514,527
Work-in-process
Property, Plant and Equipment [Line Items]
Rental equipment	$ 58,187	$ 50,867

Long-term Debt - Schedule of Lo

Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Total long-term debt	$ 172,000	$ 164,000

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - Revolving credit facility $ in Millions				3 Months Ended
	Nov. 14, 2023 USD ($)	Feb. 28, 2023 USD ($)	May 11, 2021 USD ($)	Mar. 31, 2025	Mar. 31, 2024 USD ($)	Nov. 13, 2023 USD ($)	Dec. 12, 2022 USD ($)
Line of Credit Facility [Line Items]
Debt instrument, term		5 years
Borrowing base amount available		$ 175
Aggregate credit agreement commitment	$ 225					$ 175	$ 30
Potential increase in borrowing capacity	50	125	$ 30
Potential maximum borrowing capacity		300	$ 50
Amendment fees	$ 0.6	$ 2
Amendment fees, percentage	1.125%	1.39%
Increase in commitment		$ 145
Outstanding balance					$ 172
Weighted average interest rate					8.93%
Outstanding credit facility					$ 46.1
Percentage of eligible non investment grade decors		85%
Percentage of eligible inventory		50%
Line of credit facility, non exceeding cap of components		$ 2.5
Percentage of eligible compressors for extension of credit		95%
Term for depreciation		25 years
Percentage of net liquidation value of eligible compressors for extension of credit		80%
Percentage of eligible value at cost		80%
Unused commitment fee, rate		0.50%
Maximum leverage ratio allowed		3.50
Fixed charge coverage ratio		1.25
Forecast
Line of Credit Facility [Line Items]
Maximum leverage ratio allowed				3.25
Maximum
Line of Credit Facility [Line Items]
Default trigger, certain defaults of other company indebtedness, amount		$ 1
Default trigger, rendering of certain judgments, amount		$ 1
Federal Fund Rate
Line of Credit Facility [Line Items]
Variable rate, applicable margin		0.50%
SOFR Rate
Line of Credit Facility [Line Items]
Variable rate, applicable margin		1%
SOFR Rate | Minimum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		3%
SOFR Rate | Maximum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		3.75%
Base Rate | Minimum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		2%
Base Rate | Maximum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		2.75%
New Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument, term			5 years
Borrowing base amount available			$ 20
Aggregate credit agreement commitment			$ 30

Stock-Based and Other Long-Te_3

Stock-Based and Other Long-Term Incentive Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number  of Stock Options
Outstanding, beginning of period (in shares)	129,751
Granted (in shares)	0
Canceled/Forfeited (in shares)	(667)
Expired (in shares)	(29,667)
Outstanding, end of period (in shares)	99,417	129,751
Exercisable (in shares)	75,082
Weighted AverageExercise Price
Outstanding, beginning of period (in dollars per share)	$ 20.59
Granted (in dollars per share)	0
Canceled/Forfeited (in dollars per share)	10.58
Expired (in dollars per share)	30.41
Outstanding, end of period (in dollars per share)	17.72	$ 20.59
Exercisable (in dollars per share)	$ 19.97
WeightedAverageRemainingContractual Life (years)
Outstanding, weighted average remaining contractual life	4 years 11 months 23 days	4 years 1 month 6 days
Exercisable, weighted average remaining contractual life	3 years 11 months 1 day
AggregateIntrinsicValue(in thousands)
Outstanding, aggregate intrinsic value	$ 442	$ 274
Granted, aggregate intrinsic value	0
Cancelled/Forfeited, aggregate intrinsic value	3
Exercisable, aggregate intrinsic value	$ 231

Stock-Based and Other Long-Te_4

Stock-Based and Other Long-Term Incentive Compensation - Schedule of Stock Options Outstanding (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares (in shares) | shares	99,417
Options outstanding, weighted average remaining contractual life (years)	4 years 11 months 23 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 17.72
Options exercisable, shares (in shares) | shares	75,082
Options exercisable, weighted average exercise price (in dollars per share)	$ 19.97
$0.01-18.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	0.01
Range of exercise prices, upper limit (in dollars per share)	$ 18
Options outstanding, shares (in shares) | shares	51,000
Options outstanding, weighted average remaining contractual life (years)	8 years 3 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 10.77
Options exercisable, shares (in shares) | shares	26,665
Options exercisable, weighted average exercise price (in dollars per share)	$ 10.76
$22.01-26.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	22.01
Range of exercise prices, upper limit (in dollars per share)	$ 26
Options outstanding, shares (in shares) | shares	28,667
Options outstanding, weighted average remaining contractual life (years)	1 year 10 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 22.90
Options exercisable, shares (in shares) | shares	28,667
Options exercisable, weighted average exercise price (in dollars per share)	$ 22.90
$26.01-30.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	26.01
Range of exercise prices, upper limit (in dollars per share)	$ 30
Options outstanding, shares (in shares) | shares	19,750
Options outstanding, weighted average remaining contractual life (years)	2 years 10 months 17 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 28.15
Options exercisable, shares (in shares) | shares	19,750
Options exercisable, weighted average exercise price (in dollars per share)	$ 28.15

Stock-Based and Other Long-Te_5

Stock-Based and Other Long-Term Incentive Compensation - Schedule of Status of Unvested Stock Options (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Shares
Unvested, beginning of period (in shares) | shares	24,335
Granted (in shares) | shares	0
Vested, outstanding shares (in shares) | shares	0
Canceled/Forfeited (in shares) | shares	0
Unvested, end of period (in shares) | shares	24,335
Weighted Average Grant Date Fair Value Per Share
Unvested, beginning of period (in dollars per share) | $ / shares	$ 5.45
Granted (in dollar per share) | $ / shares	0
Vested, outstanding shares (in dollars per share) | $ / shares	0
Canceled/Forfeited (in dollars per share) | $ / shares	0
Unvested, end of period (in dollars per share) | $ / shares	$ 5.45

Stock-Based and Other Long-Te_6

Stock-Based and Other Long-Term Incentive Compensation - Stock Option, Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 82
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 29	$ 22

Stock-Based and Other Long-Te_7

Stock-Based and Other Long-Term Incentive Compensation - Restricted Shares/Units, Narrative (Details) $ in Millions									3 Months Ended
	Mar. 14, 2024 shares	Mar. 04, 2024 shares	Jan. 29, 2024 shares	Oct. 26, 2023 shares	Oct. 08, 2023 shares	Jun. 30, 2023 shares	May 09, 2023 independent_director shares	Apr. 25, 2023 shares	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)									64,659
Shares forfeited (in shares)									21,147
Vested (in shares)									9,648
Share-based compensation expense | $									$ 0.2	$ 0.5
Restricted Stock | Chief Technical Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)								27,840
Award vesting period								3 years
Restricted Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)								58,790
Restricted Stock | Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of independent directors | independent_director							4
Restricted Stock Units (RSUs) | Chief Technical Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	21,984
Award vesting period	3 years
Restricted Stock Units (RSUs) | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			31,382			10,101
Award vesting period			3 years			1 year
Restricted Stock Units (RSUs) | Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				4,623			9,470
Award vesting period				1 year			1 year
Shares forfeited (in shares)							2,252
Number of shares to be transferred (in shares)							6,856
Vested (in shares)							362
Restricted Stock Units (RSUs) | Chief Operating Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		11,293			6,361
Award vesting period		3 years			3 years
Common Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)						10,101
Performance Shares Signing Bonus | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			6,494
Performance Shares, 2024 Pro-Rated | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)			31,382
Performance Shares | Chief Operating Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		11,293
Performance Shares | Chief Operating Officer And Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period									3 years
Performance Shares | Chief Operating Officer And Chief Executive Officer | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage									0%
Performance Shares | Chief Operating Officer And Chief Executive Officer | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage									200%

Stock-Based and Other Long-Te_8

Stock-Based and Other Long-Term Incentive Compensation - Schedule of Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number  of Shares
Outstanding, beginning of period (in shares)	133,898
Granted (in shares)	64,659
Vested (in shares)	(9,648)
Canceled/Forfeited (in shares)	(21,147)
Outstanding, ending of period (in shares)	167,762	133,898
Weighted Average Grant Date Fair Value
Outstanding beginning of period (in dollars per share)	$ 10.66
Granted (in dollars per share)	16.60
Vested (in dollars per share)	9.52
Canceled/Forfeited (in dollars per share)	11.12
Outstanding ending of the period (in dollars per share)	$ 13.02	$ 10.66
Weighted Average Remaining Contractual Life (years)
Weighted average remaining contractual life (years)	3 years 11 months 19 days	1 year 6 months 25 days
Aggregate Intrinsic Value (in thousands)
Outstanding, aggregate intrinsic value	$ 3,260	$ 1,813
Granted, aggregate intrinsic value	1,073
Vested, aggregate intrinsic value	157
Cancelled/Forfeited, aggregate intrinsic value	$ 235

Earnings (loss) per Share (Deta

Earnings (loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income (loss)	$ 5,098	$ 370
Denominator for earnings per basic common share:
Weighted average common shares outstanding (in shares)	12,380	12,213
Denominator for earnings per diluted common share:
Weighted average common shares outstanding (in shares)	12,380	12,213
Dilutive effect of stock options and restricted stock/units (in shares)	85	141
Diluted weighted average shares (in shares)	12,465	12,354
Earnings (loss) per common share:
Basic (in dollars per share)	$ 0.41	$ 0.03
Diluted (in dollars per share)	$ 0.41	$ 0.03