Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-33926 | ||
Entity Registrant Name | TRECORA RESOURCES | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 75-1256622 | ||
Entity Address, Address Line One | 1650 Hwy 6 S, Suite 190 | ||
Entity Address, City or Town | Sugar Land | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77478 | ||
City Area Code | 281 | ||
Local Phone Number | 980-5522 | ||
Title of 12(b) Security | Common Stock, par value $0.10 per share | ||
Trading Symbol | TREC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 207 | ||
Entity Common Stock, Shares Outstanding | 24,834,693 | ||
Documents Incorporated by Reference | Certain information required to be furnished pursuant to Part III of this Form 10–K will be set forth in, and will be incorporated by reference from, the registrant’s definitive proxy statement for the 2022 Annual Meeting of Stockholders to be filed by the registrant with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days after the registrant’s fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0000007039 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | BKM Sowan Horan, LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 5127 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 30,535 | $ 55,664 |
Trade receivables, net | 32,811 | 25,301 |
Inventories | 21,134 | 12,945 |
Prepaid expenses and other assets | 4,313 | 9,198 |
Taxes receivable | 0 | 2,788 |
Total current assets | 88,793 | 105,896 |
PLANT, PIPELINE, AND EQUIPMENT, NET | 185,521 | 187,104 |
OPERATING LEASE ASSETS, NET | 8,170 | 10,528 |
Intangible assets, net | 11,056 | 12,893 |
MINERAL PROPERTIES | 0 | 412 |
TOTAL ASSETS | 293,540 | 316,833 |
CURRENT LIABILITIES | ||
Accounts payable | 12,075 | 14,447 |
Accrued liabilities | 5,873 | 6,857 |
Current portion of long-term debt | 4,194 | 4,194 |
Current portion of operating lease | 3,227 | 3,195 |
Current portion of other liabilities | 626 | 891 |
Total current liabilities | 25,995 | 29,584 |
CARES ACT, PPP Loans | 0 | 6,123 |
LONG-TERM DEBT, net of current portion | 37,707 | 41,901 |
OPERATING LEASE LONG TERM | 4,923 | 7,333 |
OTHER LIABILITIES, net of current portion | 417 | 968 |
DEFERRED INCOME TAXES | 24,525 | 26,517 |
Total liabilities | 93,567 | 112,426 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common Stock ‑ authorized 40 million shares of $.10 par value; issued 25.0 and 24.8 million in 2021 and 2020, respectively, and outstanding 23.6 and 24.8 million in 2021 and 2020, respectively | 2,499 | 2,483 |
Additional Paid-in Capital | 63,260 | 61,311 |
Common Stock in Treasury, at cost 1.4 and nil million shares in 2021 and 2020, respectively | (11,486) | 0 |
Retained Earnings | 145,700 | 140,324 |
Total Trecora Resources Stockholders' Equity | 199,973 | 204,118 |
Non-controlling interest | 0 | 289 |
Total equity | 199,973 | 204,407 |
TOTAL LIABILITIES AND EQUITY | $ 293,540 | $ 316,833 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares issued (in shares) | 25,000,000 | 24,800,000 |
Common stock, shares outstanding (in shares) | 23,600,000 | 24,800,000 |
Treasury stock (in shares) | 1,400,000 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Revenues | $ 272,690 | $ 208,626 | $ 258,959 |
Operating costs and expenses | |||
Cost of sales and processing (including depreciation and amortization of $16,415, $15,300, and $15,361, respectively) | 244,114 | 179,948 | 220,444 |
Gross Profit | 28,576 | 28,678 | 38,515 |
General and Administrative Expenses | |||
General and administrative | 26,123 | 24,334 | 24,386 |
Professional services associated with M&A and strategic initiatives | 4,655 | 558 | 0 |
Impairment of goodwill and certain intangibles | 0 | 0 | 24,152 |
Depreciation | 882 | 848 | 840 |
Total General and Administrative Expenses | 31,660 | 25,740 | 49,378 |
Operating income (loss) | (3,084) | 2,938 | (10,863) |
Other expenses | |||
Interest expense | 1,205 | 2,491 | 5,139 |
Gain on extinguishment of debt | (6,123) | 0 | 0 |
(Gain) loss on disposal of assets | (279) | 39 | 680 |
Miscellaneous income | (486) | (595) | (232) |
Total other income (expense) | (5,683) | 1,935 | 5,587 |
Income (loss) from continuing operations before income tax benefit | 2,599 | 1,003 | (16,450) |
Income tax benefit | 2,364 | 3,963 | 3,566 |
Income (loss) from continuing operations | 4,963 | 4,966 | (12,884) |
Income (loss) from discontinued operations, net of tax | 0 | 26,209 | (2,090) |
Net income (loss) | $ 4,963 | $ 31,175 | $ (14,974) |
Basic income (loss) per common share: | |||
Net income (loss) from continuing operations (in dollars per share) | $ 0.20 | $ 0.20 | $ (0.52) |
Net income (loss) from discontinued operations, net of tax (in dollars per share) | 0 | 1.06 | (0.08) |
Net income (loss) (in dollars per share) | $ 0.20 | $ 1.26 | $ (0.60) |
Basic weighted average number of common shares outstanding (in shares) | 24,459 | 24,802 | 24,698 |
Diluted income (loss) per common share: | |||
Net income (loss) from continuing operations (in dollars per share) | $ 0.20 | $ 0.20 | $ (0.52) |
Net income (loss) from discontinued operations, net of tax (in dollars per share) | 0 | 1.03 | (0.08) |
Net income (loss) (in dollars per share) | $ 0.20 | $ 1.23 | $ (0.60) |
Diluted weighted average number of common shares outstanding (in shares) | 25,081 | 25,356 | 24,698 |
Product sales | |||
Revenues | |||
Revenues | $ 257,539 | $ 192,375 | $ 243,314 |
Processing fees | |||
Revenues | |||
Revenues | $ 15,151 | $ 16,251 | $ 15,645 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Depreciation and amortization | $ 16,415 | $ 15,300 | $ 15,361 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Total | Noncontrolling Interest |
Balance (in shares) at Dec. 31, 2018 | 24,626 | ||||||
Balance at Dec. 31, 2018 | $ 185,161 | $ 2,463 | $ 58,294 | $ (8) | $ 124,123 | $ 184,872 | $ 289 |
Stock options | |||||||
Issued to Directors | 0 | 0 | |||||
Issued to Employees | 0 | 0 | |||||
Restricted stock units | |||||||
Issued to Directors | 353 | 353 | 353 | ||||
Issued to Employees | 883 | 883 | 883 | ||||
Common stock | |||||||
Issued to Directors (in shares) | 20 | ||||||
Issued to Directors | 9 | $ 1 | 8 | 9 | |||
Issued to Employees (in shares) | 104 | ||||||
Issued to Employees | 11 | $ 11 | 11 | ||||
Net Income (Loss) | (14,974) | (14,974) | (14,974) | ||||
Balance (in shares) at Dec. 31, 2019 | 24,750 | ||||||
Balance at Dec. 31, 2019 | 171,443 | $ 2,475 | 59,530 | 0 | 109,149 | 171,154 | 289 |
Restricted stock units | |||||||
Issued to Directors | 1,369 | 1,369 | 1,369 | ||||
Issued to Employees | 420 | 420 | 420 | ||||
Common stock | |||||||
Issued to Directors (in shares) | 56 | ||||||
Issued to Directors | 0 | $ 5 | (5) | 0 | |||
Issued to Employees (in shares) | 27 | ||||||
Issued to Employees | 0 | $ 3 | (3) | 0 | |||
Net Income (Loss) | $ 31,175 | 31,175 | 31,175 | ||||
Balance (in shares) at Dec. 31, 2020 | 24,800 | 24,833 | |||||
Balance at Dec. 31, 2020 | $ 204,407 | $ 2,483 | 61,311 | 0 | 140,324 | 204,118 | 289 |
Restricted stock units | |||||||
Issued to Directors | 436 | 436 | 436 | ||||
Issued to Employees | 1,529 | 1,529 | 1,529 | ||||
Common stock | |||||||
Issued to Directors (in shares) | 72 | ||||||
Issued to Directors | 0 | $ 7 | (7) | 0 | |||
Issued to Employees (in shares) | 85 | ||||||
Issued to Employees | 0 | $ 9 | (9) | 0 | |||
Disposition of Non-Controlling Interest | 124 | 413 | 413 | (289) | |||
Stock Repurchases | (11,486) | (11,486) | (11,486) | ||||
Net Income (Loss) | $ 4,963 | 4,963 | 4,963 | ||||
Balance (in shares) at Dec. 31, 2021 | 23,600 | 24,990 | |||||
Balance at Dec. 31, 2021 | $ 199,973 | $ 2,499 | $ 63,260 | $ (11,486) | $ 145,700 | $ 199,973 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | |||
Net Income (Loss) | $ 4,963 | $ 31,175 | $ (14,974) |
Income (Loss) from Discontinued Operations | 0 | 26,209 | (2,090) |
Income (Loss) from Continuing Operations | 4,963 | 4,966 | (12,884) |
Adjustments to reconcile Income (Loss) from Continuing Operations to Net Cash Provided by Operating Activities: | |||
Depreciation and Amortization | 15,459 | 14,306 | 14,345 |
Amortization of Intangible Assets | 1,837 | 1,842 | 1,856 |
Stock-based Compensation | 2,247 | 1,912 | 1,250 |
Deferred Income Taxes | (1,992) | 14,553 | (2,993) |
Bad Debt Expense (Recoveries) | 0 | 0 | (23) |
Amortization of Loan Fees | 181 | 181 | 181 |
Gain on Extinguishment of Debt | (6,123) | 0 | 0 |
(Gain) Loss on Disposal of Assets | (279) | 39 | 680 |
Impairment of Goodwill and Certain Intangibles | 0 | 0 | 24,152 |
Changes in Operating Assets and Liabilities: | |||
(Increase) Decrease in Trade Receivables | (7,510) | 1,018 | 816 |
(Increase) Decrease in Taxes Receivable | 2,788 | (2,606) | 0 |
(Increase) Decrease in Inventories | (8,189) | 680 | 2,914 |
(Increase) Decrease in Prepaid Expenses and Other Assets | 4,885 | (2,403) | (304) |
Increase (Decrease) in Other Liabilities | (599) | (5,746) | 543 |
Increase (Decrease) in Accounts Payable and Accrued Liabilities | (3,293) | 831 | (4,944) |
Net Cash Provided by Operating Activities - Continuing Operations | 4,375 | 29,573 | 25,589 |
Net Cash Used in Operating Activities - Discontinued Operations | 0 | (4,008) | (468) |
Net Cash Provided by Operating Activities | 4,375 | 25,565 | 25,121 |
INVESTING ACTIVITIES | |||
Additions to Plant, Pipeline and Equipment | (14,152) | (13,351) | (10,079) |
Proceeds from Sale of Property, Plant and Equipment | 319 | 0 | 0 |
Proceeds from PEVM | 535 | 150 | 27 |
Net Cash Used in Investing Activities - Continuing Operations | (13,298) | (13,201) | (10,052) |
Net Cash Provided by Investing Activities - Discontinued Operations | 0 | 68,530 | 4,021 |
Net Cash Provided by (Used in) Investing Activities | (13,298) | 55,329 | (6,031) |
FINANCING ACTIVITIES | |||
Net Cash Paid Related to Stock-Based Compensation | (345) | (123) | (305) |
Additions to CARES Act, PPP Loans | 0 | 6,123 | 0 |
Additions to Long-Term Debt | 0 | 20,000 | 2,000 |
Repayment of Long-Term Debt | (4,375) | (57,375) | (21,375) |
Purchase of Treasury Stock | (11,486) | 0 | 0 |
Net Cash Used in Financing Activities | (16,206) | (31,375) | (19,680) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (25,129) | 49,519 | (590) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 55,664 | 6,145 | 6,735 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 30,535 | 55,664 | 6,145 |
Supplemental disclosure of cash flow information: | |||
Cash payments for interest | 986 | 2,266 | 4,731 |
Cash payments (net of refunds) for taxes | (3,029) | (11,069) | 53 |
Supplemental disclosure of non-cash items: | |||
Capital expansion amortized to depreciation expense | 236 | 821 | 792 |
Cash held in escrow by AMAK | 0 | 1,877 | 0 |
Foreign taxes paid by AMAK | $ 0 | $ 270 | $ 0 |
BUSINESS AND OPERATIONS OF THE
BUSINESS AND OPERATIONS OF THE COMPANY | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS AND OPERATIONS OF THE COMPANY | BUSINESS AND OPERATIONS OF THE COMPANY Trecora Resources (the “Company”) was organized as a Delaware corporation in 1967. The Company’s principal business activities are the manufacturing of various specialty petrochemicals products, specialty waxes and providing custom processing services. The Company’s specialty petrochemicals operations are primarily conducted through a wholly-owned subsidiary, Texas Oil and Chemical Co. II, Inc. (“TOCCO”). TOCCO owns all of the capital stock of South Hampton Resources, Inc. (“SHR”) and Trecora Chemical, Inc. (“TC”). SHR owns all of the capital stock of Gulf State Pipe Line Company, Inc. (“GSPL”). SHR owns and operates a specialty petrochemicals product facility in Silsbee, Texas which manufactures high purity hydrocarbons used primarily in polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, Canadian tar sands, and in the catalyst support industry. TC owns and operates a facility located in Pasadena, Texas which manufactures specialty waxes and provides custom processing services. These specialty waxes are used in the production of coatings, hot melt adhesives and lubricants. GSPL owns and operates pipelines that connect the SHR facility to a natural gas line, to SHR’s truck and rail loading terminal and to a major petroleum pipeline owned by an unaffiliated third party. The Company owned approximately 55% of the capital stock of a Nevada mining company, Pioche Ely Valley Mines, Inc. (“PEVM”), which did not conduct any substantial business activity and sold all of its remaining assets in 2021. PEVM was legally dissolved in February 2022. For more information, see Note 11. The Company also previously owned 33% of a Saudi Arabian joint stock company, Al Masane Al Kobra Mining Company (“AMAK”). On October 2, 2019, we announced that we had entered into a Share Sale and Purchase Agreement (as amended, the “Purchase Agreement”) pursuant to which we agreed to sell our entire investment in AMAK. The share sale was completed on September 28, 2020. For more information, see Note 6. We attribute revenues to countries based upon the origination of the transaction. All of our revenues for the years ended December 31, 2021, 2020, and 2019, originated in the United States. In addition, all of our long-lived assets are in the United States. For convenience in this report, the terms “Company", “our", “us", “we" or “TREC" may be used to refer to Trecora Resources and its subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation – The Consolidated Financial Statements include the balance sheets, statements of operations, stockholders' equity, and cash flows of the Company, TOCCO, TC, SHR, GSPL and PEVM. Other entities which are not controlled but over which the Company has the ability to exercise significant influence are accounted for using the equity method of accounting. All intercompany profits, transactions and balances have been eliminated. Cash, Cash Equivalents and Short-Term Investments – Our principal banking and short-term investing activities are with local and national financial institutions. Short-term investments with an original maturity of three months or less are classified as cash equivalents. Inventories – For SHR, finished products and feedstock are recorded at the lower of cost, determined on the first-in, first-out method (FIFO), or market. For TC, inventory is recorded at the lower of cost or market as follows: (1) raw material cost is calculated using the weighted-average cost method and (2) product inventory cost is calculated using the specific cost method. Trade Receivables and Allowance for Doubtful Accounts – We evaluate the collectability of our trade receivables and adequacy of the allowance for doubtful accounts based upon historical experience and any specific customer financial difficulties of which we become aware. For the year ended December 31, 2021, there was no change in the allowance for doubtful accounts balance. For the year ended December 31, 2020, we decreased the balance by $129,000 due to collections of previously allowed for receivables. For the year ended December 31, 2019, we increased the balance by $152,000 due to concerns regarding collectability for a specific customer. We track customer balances and past due amounts to determine if customers may be having financial difficulties. This, along with historical experience and a working knowledge of each customer, helps determine accounts that should be written off. Amounts written off were nil, $129,000 and nil in 2021, 2020 and 2019, respectively. Discontinued Operations – Assets that are sold or classified as held for sale are classified as discontinued operations provided that the disposal represents a strategic shift that has (or will have) a major effect on our operations and financial results (e.g., a disposal of a major geographical area, a major line of business, a major equity method investment or other major parts of an entity). Plant, Pipeline and Equipment – Plant, pipeline and equipment are stated at cost. Depreciation is provided over the estimated service lives using the straight-line method. Gains and losses from disposition are included in operations in the period incurred. Maintenance and repairs are expensed as incurred. Major renewals and improvements are capitalized. Interest costs incurred to finance expenditures during construction phase are capitalized as part of the historical cost of constructing the assets. Construction commences with the development of the design and ends when the assets are ready for use. Capitalized interest costs are included in plant, pipeline and equipment and are depreciated over the service life of the related assets. Labor costs incurred to self-construct assets are capitalized as part of the historical cost the assets. Construction commences with the development of the design and ends when the assets are ready for use. Capitalized labor costs are included in plant, pipeline and equipment and are depreciated over the service life of the related assets. Platinum catalyst is included in plant, pipeline and equipment at cost. Amortization of the catalyst is based upon cost less estimated salvage value of the catalyst using the straight line method over the estimated useful life (see Note 8). Leases – The Company enters into leases as a lessee for rail cars, rail equipment, office space and office equipment in the ordinary course of business. When procuring services, or upon entering into a contract, the Company determines whether an arrangement contains a lease at its inception. As part of that evaluation the Company considers whether there is an implicitly or explicitly identified asset in the arrangement and whether the Company, as the lessee, has the right to control the use of that asset. The Company also reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. All leases with a term of more than 12 months are recognized as right-of-use (“ROU”) assets and associated lease liabilities in the combined balance sheet. Lease liabilities are measured at the lease commencement date and determined using the present value of the lease payments not yet paid, at the Company’s incremental borrowing rate, which approximates the rate at which the Company would borrow on a secured basis. The interest rate implicit in the lease is generally not determinable in the transactions where the Company is the lessee. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid rent and lease incentives. All of the Company’s leases are classified as operating leases. The leases include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company made a policy election to not recognize leases with a lease term of 12 months or less in the combined balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. Goodwill and Other Intangible Assets – Goodwill and indefinite-lived intangible assets are tested for impairment at least annually; however, these tests are performed more frequently when events or changes in circumstances indicate that the asset may be impaired. Impairment exists when carrying value exceeds fair value. Estimates of fair value are based on appraisals, market prices for comparable assets, or internal estimates of future net cash flows. Definite-lived intangible assets consist of customer relationships, licenses, permits and developed technology. The majority of these assets are being amortized using discounted estimated future cash flows over the term of the related agreements. Intangible assets associated with customer relationships are being amortized using the discounted estimated future cash flows method based upon assumed rates of annual customer attrition. We continually evaluate the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they will be removed from the consolidated balance sheets. Business Combinations and Related Business Acquisition Costs – Assets and liabilities associated with business acquisitions are recorded at fair value using the acquisition method of accounting. We allocate the purchase price of acquisitions based upon the fair value of each component which may be derived from various observable and unobservable inputs and assumptions. We may use third-party valuation specialists to assist us in this allocation. Initial purchase price allocations are preliminary and subject to revision within the measurement period, not to exceed one year from the date of acquisition. The fair value of property, plant and equipment and intangible assets are based upon the discounted cash flow method that involves inputs that are not observable in the market (Level 3). Goodwill assigned represents the amount of consideration transferred in excess of the fair value assigned to identifiable assets acquired and liabilities assumed. Business acquisition costs are expensed as incurred and are reported as general and administrative expenses in the consolidated statements of income. We define these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional consulting fees, as well as, travel associated with the evaluation and effort to acquire specific businesses. Investment in AMAK (Discontinued Operations) – Prior to the completion of the sale of our ownership interest in AMAK, we accounted for our investment in AMAK using the equity method of accounting under which we recorded in income our share of AMAK’s income or loss for each period. The amount recorded was also adjusted to reflect the amortization of certain differences between the basis in our investment in AMAK and our share of the net assets of AMAK was reflected in AMAK’s financial statements (see Note 6). Any proceeds received from or payments made to AMAK were recorded as decreases or increases in the balance of our investment. Other Assets – Other assets include a license used in specialty petrochemicals operations, spare parts inventory and certain specialty petrochemicals assets. Spare parts are accounted for using FIFO. Long-Lived Assets Impairment – Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable based on the undiscounted net cash flows to be generated from the asset’s use. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis although other factors including the state of the economy are considered. Revenue Recognition – Revenue is measured based on a consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. In evaluating when a customer has control of the asset we primarily consider whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer has accepted delivery and a right to payment exists. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales and processing. The Company does not offer material rights of return or service-type warranties. The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, disaggregation of revenues, and contract balance disclosures, see Note 17. Specialty Petrochemicals segment The Specialty Petrochemicals segment of the Company produces eight high purity hydrocarbons and other petroleum based products including isopentane, normal pentane, isohexane and hexane. These products are used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, crude oil from the Canadian tar sands, and in the catalyst support industry. SHR’s specialty petrochemicals products are typically transported to customers by rail car, tank truck, iso-container and ship. Product Sales – The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company’s product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment for prime product sales is typically due and collected 30 to 60 days subsequent to point of sale. Processing Fees – The Company’s services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements the customer retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Specialty Waxes segment The Specialty Waxes segment of the Company manufactures and sells specialty polyethylene and poly alpha olefin waxes and also provides custom processing services for customers. Product Sales – The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company’s product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Processing Fees – The Company’s promised services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements and Purchase Order Arrangements, the customer typically retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction and Purchase Order Arrangement is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Shipping and Handling Costs – Shipping and handling costs are classified as cost of product sales and processing and are expensed as incurred. Retirement Plan – We offer employees the benefit of participating in a 401(k) plan. We match 100% up to 6% of pay with vesting occurring over 2 years. For the years ended December 31, 2021, 2020, and 2019, matching contributions of approximately $1.3 million, $1.3 million, and $1.3 million, respectively, were made on behalf of employees. Environmental Liabilities – Remediation costs are accrued based on estimates of known environmental remediation exposure. Ongoing environmental compliance costs, including maintenance and monitoring costs, are expensed as incurred. Other Liabilities – We periodically make changes in or expand our custom processing units at the request of the customer. The cost to make these changes is shared by the customer. Upon completion of a project a note receivable and a deferred liability are recorded to recover the project costs which are then capitalized. At times instead of a note receivable being established, the customer pays an upfront cost. The amortization of other liabilities is recorded as a reduction to depreciation expense over the life of the contract with the customer. As of December 31 of each year, depreciation expense was offset and reduced by approximately $0.2 million, $0.8 million, and $0.8 million, for 2021, 2020, and 2019, respectively. Net Income Per Share – We compute basic income per common share based on the weighted-average number of common shares outstanding. Diluted income per common share is computed based on the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if potential dilutive common shares, consisting of stock options, unvested restricted stock units, and shares which could be issued upon conversion of debt, had been issued (see Note 18). Foreign Currency – The functional currency for the Company and each of the Company’s subsidiaries is the US dollar (USD). Transaction gains or losses as a result of transactions denominated and settled in currencies other than the USD are reflected in the statements of income as foreign exchange transaction gains or losses. We do not employ any practices to minimize foreign currency risks. As of December 31, 2021, 2020 and 2019, foreign currency translation adjustments were not significant. Management Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include allowance for doubtful accounts receivable and inventory obsolescence; assessment of impairment of our long-lived assets and intangible assets; litigation liabilities, post-retirement benefit obligations, environmental liabilities, and current and deferred income taxes. Actual results could differ from these estimates. In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (“COVID-19”) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s results of operations and financial position at December 31, 2021. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of the Consolidated Financial Statements. These estimates may change, as new events occur and additional information is obtained. Share-Based Compensation – We recognize share-based compensation of stock options granted based upon the fair value of options on the grant date using the Black-Scholes pricing model (see Note 15). Share-based compensation expense recognized during the period is based on the fair value of the portion of share-based payments awards that is ultimately expected to vest. Share-based compensation expense recognized in the consolidated statements of operations for the years ended December 31, 2021, 2020, and 2019 includes compensation expense based on the estimated grant date fair value for awards that are ultimately expected to vest, and accordingly has been reduced for estimated forfeitures. Estimated forfeitures at the time of grant are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Fair Value – The carrying value of cash and cash equivalents, trade receivables, taxes receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of variable rate long term debt and notes payable reflect recent market transactions and approximate carrying value. We used other observable inputs that would qualify as Level 2 inputs to make our assessment of the approximate fair value of our cash and cash equivalents, trade receivables, taxes receivable, accounts payable, accrued liabilities, other liabilities, notes payable and variable rate long term debt. We measure fair value by ASC Topic 820 Fair Value. ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC Topic 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard amends numerous accounting pronouncements but does not require any new fair value measurements of reported balances. ASC Topic 820 emphasizes that fair value, among other things, is based on exit price versus entry price, should include assumptions about risk such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. When considering the assumptions that market participants would use in pricing the asset or liability, ASC Topic 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The fair value hierarchy prioritizes inputs used to measure fair value into three broad levels. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Income Taxes – Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company maintains a valuation allowance for a deferred tax asset when it is deemed to be more likely than not that some or all of the deferred tax asset will not be realized. Our estimate of the potential outcome of any uncertain tax issues is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. We use a more likely than not threshold for financial statement recognition and measurement of tax position taken or expected to be taken in a tax return. To the extent that our assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. We report tax-related interest and penalties as a component of income tax expense. Subsequent Events – The Company has evaluated subsequent events through March 10, 2022, the date that the Consolidated Financial Statements were approved by management. Recently Adopted Accounting Pronouncements Effective January 1, 2020, we adopted Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, which changed the way entities recognize impairment of most financial assets. Short-term and long-term financial assets, as defined by the standard, are impacted by immediate recognition of estimated credit losses in the financial statements, reflecting the net amount expected to be collected. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, and early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements 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 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 contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. This guidance is effective from March 12, 2020 through December 31, 2022 and adoption is optional. We are currently evaluating the impact of ASU 2020-04 on our Consolidated Financial Statements. |
CONCENTRATIONS OF REVENUES AND
CONCENTRATIONS OF REVENUES AND CREDIT RISK | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF REVENUES AND CREDIT RISK | CONCENTRATIONS OF REVENUES AND CREDIT RISK We sell our products and services to companies in the chemical, plastics, and petroleum industries. We perform periodic credit evaluations of our customers and generally do not require collateral from our customers. For the years ended December 31, 2021, 2020, and 2019, one customer accounted for 13.4%, 15.4%, and 15.0%, respectively, of consolidated revenue. The associated accounts receivable balances for this customer, ExxonMobil and their affiliates, were approximately $4.6 million and $4.1 million at December 31, 2021 and 2020, respectively. We market our products in many foreign jurisdictions. For the years ended December 31, 2021, 2020, and 2019, revenue in foreign jurisdictions accounted for approximately 19.0%, 24.0%, and 21.9% of consolidated revenue, respectively. SHR utilizes one major supplier to purchase all our feedstock supply. The feedstock is a commodity product commonly available from other suppliers if needed. At December 31, 2021, and 2020, we owed the supplier approximately $3.4 million and $4.4 million, respectively, for feedstock purchases. We hold our cash with various financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000. At times during the year, cash balances may exceed this limit. We have not experienced any losses in such accounts and do not believe we are exposed to any significant risk of loss related to cash. |
TRADE RECEIVABLES
TRADE RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
TRADE RECEIVABLES | TRADE RECEIVABLES Trade receivables, net, at December 31, consisted of the following: 2021 2020 (thousands of dollars) Trade receivables $ 33,111 $ 25,601 Less allowance for doubtful accounts (300) (300) Trade receivables, net $ 32,811 $ 25,301 Accounts receivable serves as collateral for our amended and restated loan agreement with a domestic bank (see Note 13). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories include the following at December 31: 2021 2020 (thousands of dollars) Raw material $ 2,348 $ 2,580 Work in process 212 138 Finished products 18,574 10,227 Total inventory $ 21,134 $ 12,945 Inventory serves as collateral for our amended and restated loan agreement with a domestic bank (see Note 13). Inventory included products in transit valued at approximately $4.9 million and $3.6 million at December 31, 2021 and 2020, respectively. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 28, 2020, the Company completed the final closing of the previously disclosed sale of its ownership interest in AMAK (the “Share Sale”) to AMAK and certain existing shareholders of AMAK and their assignees (collectively, the “Purchasers”). The Share Sale was completed in multiple closings pursuant to a Share Sale and Purchase Agreement, dated September 22, 2019 (which we refer to herein as the “Purchase Agreement”), among the Company, AMAK, and other Purchasers and resulted in aggregate gross proceeds to the Company of Saudi Riyals (“SAR”) 265 million (approximately $70 million) (before taxes and expenses). As of December 31, 2019, the Company had a non-controlling equity interest of 33.3% in AMAK of approximately $32.9 million. In connection with the Share Sale, the Company also recorded income from discontinued operations, net of tax, of approximately $1.5 million in the third quarter of 2020, which represents a portion of the Purchaser’s non-refundable deposit of 5% of the purchase price that was forfeited by certain Purchasers for failing to timely close the Share Sale. Other fees and expenses incurred and paid by the Company related to the transaction were approximately $4.0 million and are reflected in operating cash flows from discontinued operations for 2020. In connection with the completion of the Share Sale, the Company filed the necessary tax returns in the Kingdom of Saudi Arabia and paid foreign taxes related to the transaction of approximately $1.3 million. These foreign taxes created a foreign tax credit which was used to offset U.S. taxes in 2020. As previously disclosed, and as a result of the Company’s initial investment in AMAK, the Company was required to execute a limited guarantee on October 24, 2010 (the “Guarantee”) of up to 41% of a loan (the “Loan”) by the Saudi Industrial Development Fund (“SIDF”) to AMAK to fund the construction of the AMAK facilities and to provide working capital needs. The provision of personal or corporate guarantees, as applicable, by each shareholder of AMAK was a condition to SIDF providing the Loan. Pursuant to the Purchase Agreement, the Purchasers (other than AMAK) agreed, upon the completion of the Share Sale, to assume the Company’s obligation under the Guarantee (proportionately based upon such Purchaser’s percentage acquisition of ordinary shares in the Share Sale). While a formal written release of the Company from the Guarantee was not obtained from SIDF prior to closing, the Company believes that the Purchasers’ assumption of the Company’s obligation under the Guarantee effectively eliminates the Company’s liability arising under the Guarantee. As the sale of the Company's interest in AMAK was completed as of September 28, 2020, there is no applicable 2021 financial information to present and it is thereby omitted for comparison purposes. Included in discontinued operations are the following: Years Ended December 31, 2020 2019 (thousands of dollars) Saudi administration and transaction expenses $ (2,452) $ (187) Equity in earnings (losses) of AMAK 702 (986) Gain (loss) on sale of equity interest 34,926 (1,473) Income (loss) from discontinued operations before taxes 33,176 (2,646) Tax (expense) benefit (6,967) 556 Income (loss) from discontinued operations, net of tax $ 26,209 $ (2,090) AMAK’s financial statements were prepared in the functional currency of AMAK which is the SAR. In June 1986 the SAR was officially pegged to the U. S. Dollar at a fixed exchange rate of 1 USD to 3.75 SAR. The summarized results of operations and financial position for AMAK are as follows: Results of Operations Nine Months Ended September 30, Year Ended December 31, 2020 2019 (thousands of dollars) Sales $ 62,633 $ 78,350 Cost of sales (55,728) (69,620) Gross profit 6,905 8,730 Selling, general, and administrative (4,985) (13,047) Operating income (loss) 1,920 (4,317) Other (expense) income (346) 558 Finance and interest expense (1,211) (1,450) Income (loss) before Zakat and income taxes 363 (5,209) Zakat and income tax (expense) benefit (490) (1,801) Net loss $ (127) $ (7,010) Financial Position September 30, 2020 (thousands of dollars) Current assets $ 29,799 Noncurrent assets 209,814 Total assets $ 239,613 Current liabilities $ 40,919 Long term liabilities 79,122 Stockholders' equity 119,572 $ 239,613 The equity in the earnings (losses) of AMAK included in income (loss) from discontinued operations, net of tax, on the consolidated statements of operations for the years ended December 31, 2020 and 2019 is comprised of the following: Nine Months Ended September 30, Year Ended December 31, 2020 2019 (thousands of dollars) AMAK Net Loss (127) (7,010) Company’s share of loss reported by AMAK (308) * (1,996) Amortization of difference between Company’s investment in AMAK and Company’s share of net assets of AMAK 1,010 1,010 Equity in earnings (losses) of AMAK 702 (986) * Percentage of Ownership varies during the period. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets at December 31 are summarized as follows: 2021 2020 (thousands of dollars) Prepaid license $ 500 $ 403 Prepaid insurance 1,145 4,241 Spare parts 2,114 2,376 Cash held by AMAK for foreign taxes (see Note 6) — 1,877 Other prepaid expenses and assets 554 301 Total $ 4,313 $ 9,198 |
PLANT, PIPELINE AND EQUIPMENT
PLANT, PIPELINE AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PLANT, PIPELINE AND EQUIPMENT | PLANT, PIPELINE AND EQUIPMENT Plant, pipeline and equipment include the following at December 31: 2021 2020 (thousands of dollars) Platinum catalyst $ 1,478 $ 1,580 Catalyst 4,325 4,325 Land 5,428 5,428 Plant, pipeline and equipment 282,780 270,149 Construction in progress 7,213 6,422 Total plant, pipeline and equipment 301,224 287,904 Less accumulated depreciation (115,703) (100,800) Net plant, pipeline and equipment $ 185,521 $ 187,104 Plant, pipeline and equipment serve as collateral for our amended and restated loan agreement with a domestic bank (see Note 13). Labor capitalized for construction for 2021, 2020 and 2019 was approximately $0.6 million, $0.6 million and nil, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expense were as follows: December 31, ($ in thousands) Classification in the Consolidated Statements of Operations 2021 2020 2019 Operating lease cost (a) Cost of sales, exclusive of depreciation and amortization $ 4,366 $ 4,088 $ 4,361 Operating lease cost (a) Selling, general and administrative 135 137 137 Total operating lease cost $ 4,501 $ 4,225 $ 4,498 Finance lease cost: Amortization of right-of-use assets Depreciation — — — Interest on lease liabilities Interest Expense — — — Total finance lease cost $ — $ — $ — Total lease cost $ 4,501 $ 4,225 $ 4,498 (a) Short-term lease costs were approximately $0.8 million, $0.5 million and nil as of December 31, 2021, 2020 and 2019, respectively. The Company had no variable lease expense during the period. December 31, ($ in thousands) Classification on the Consolidated Balance Sheets 2021 2020 Assets: Operating Operating lease assets $ 8,170 $ 10,528 Finance Property, plant, and equipment — — Total leased assets $ 8,170 $ 10,528 Liabilities: Current Operating Current portion of operating lease liabilities $ 3,227 $ 3,195 Finance Short-term debt and current portion of long-term debt — — Noncurrent Operating Operating lease liabilities 4,923 7,333 Finance Long-term debt — — Total lease liabilities $ 8,150 $ 10,528 December 31, ($ in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 3,678 $ 3,713 $ 4,389 Operating cash flows used for finance leases — — — Financing cash flows used for finance leases — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 915 $ 206 $ 81 Finance leases — — — December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 3.0 3.7 Finance leases 0.0 0.0 Weighted-average discount rate: Operating leases 4.5 % 4.5 % Finance leases — % — % Nearly all of the Company’s lease contracts do not provide a readily determinable implicit rate. For these contracts, the Company’s estimated incremental borrowing rate is based on information available at the inception of the lease. As of December 31, 2021, maturities of lease liabilities were as follows: ($ in thousands) Operating Leases Finance Leases 2022 $ 3,511 $ — 2023 2,619 — 2024 1,298 — 2025 1,123 — 2026 149 — Total lease payments $ 8,700 $ — Less: Interest 550 — Total lease obligations $ 8,150 $ — |
LEASES | LEASES The components of lease expense were as follows: December 31, ($ in thousands) Classification in the Consolidated Statements of Operations 2021 2020 2019 Operating lease cost (a) Cost of sales, exclusive of depreciation and amortization $ 4,366 $ 4,088 $ 4,361 Operating lease cost (a) Selling, general and administrative 135 137 137 Total operating lease cost $ 4,501 $ 4,225 $ 4,498 Finance lease cost: Amortization of right-of-use assets Depreciation — — — Interest on lease liabilities Interest Expense — — — Total finance lease cost $ — $ — $ — Total lease cost $ 4,501 $ 4,225 $ 4,498 (a) Short-term lease costs were approximately $0.8 million, $0.5 million and nil as of December 31, 2021, 2020 and 2019, respectively. The Company had no variable lease expense during the period. December 31, ($ in thousands) Classification on the Consolidated Balance Sheets 2021 2020 Assets: Operating Operating lease assets $ 8,170 $ 10,528 Finance Property, plant, and equipment — — Total leased assets $ 8,170 $ 10,528 Liabilities: Current Operating Current portion of operating lease liabilities $ 3,227 $ 3,195 Finance Short-term debt and current portion of long-term debt — — Noncurrent Operating Operating lease liabilities 4,923 7,333 Finance Long-term debt — — Total lease liabilities $ 8,150 $ 10,528 December 31, ($ in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 3,678 $ 3,713 $ 4,389 Operating cash flows used for finance leases — — — Financing cash flows used for finance leases — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 915 $ 206 $ 81 Finance leases — — — December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 3.0 3.7 Finance leases 0.0 0.0 Weighted-average discount rate: Operating leases 4.5 % 4.5 % Finance leases — % — % Nearly all of the Company’s lease contracts do not provide a readily determinable implicit rate. For these contracts, the Company’s estimated incremental borrowing rate is based on information available at the inception of the lease. As of December 31, 2021, maturities of lease liabilities were as follows: ($ in thousands) Operating Leases Finance Leases 2022 $ 3,511 $ — 2023 2,619 — 2024 1,298 — 2025 1,123 — 2026 149 — Total lease payments $ 8,700 $ — Less: Interest 550 — Total lease obligations $ 8,150 $ — |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill We evaluated our goodwill for impairment during the fourth quarter of 2019 in connection with our annual review. As part of our review, we assessed 2019 operating performance and its impact on the operating cash flows of our Specialty Waxes reporting unit. We concluded based on this analysis that the estimates of fair value of our Specialty Waxes reporting unit was lower than its book value, including goodwill. As a result, we recorded a non-cash impairment charge of $24.2 million in 2019, representing all of the goodwill previously allocated to this reporting unit. Intangible Assets The following table summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): December 31, 2021 Intangible assets subject to amortization Gross Accumulated Net Customer relationships $ 16,852 $ (8,145) $ 8,707 Non-compete agreements 94 (94) — Licenses and permits 1,471 (808) 663 Developed technology 6,131 (4,445) 1,686 Total $ 24,548 $ (13,492) $ 11,056 December 31, 2020 Intangible assets subject to amortization Gross Accumulated Net Customer relationships $ 16,852 $ (7,022) $ 9,830 Non-compete agreements 94 (94) — Licenses and permits 1,471 (707) 764 Developed technology 6,131 (3,832) 2,299 Total $ 24,548 $ (11,655) $ 12,893 Amortization expense for intangible assets included in cost of sales for the years ended December 31, 2021, 2020, and 2019, was approximately $1.8 million, $1.8 million, and $1.9 million respectively. Based on identified intangible assets that are subject to amortization as of December 31, 2021, we expect future amortization expenses for each period to be as follows (in thousands): Total 2022 2023 2024 2025 2026 Thereafter Customer relationships $ 8,707 $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 3,092 Licenses and permits 663 86 86 86 86 86 233 Developed technology 1,686 613 613 460 — — — Total future amortization expense $ 11,056 $ 1,822 $ 1,822 $ 1,669 $ 1,209 $ 1,209 $ 3,325 |
MINERAL PROPERTIES IN THE UNITE
MINERAL PROPERTIES IN THE UNITED STATES | 12 Months Ended |
Dec. 31, 2021 | |
Mineral Industries Disclosures [Abstract] | |
MINERAL PROPERTIES IN THE UNITED STATES | MINERAL PROPERTIES IN THE UNITED STATESThe principal assets of PEVM were an undivided interest in 48 patented and 5 unpatented mining claims totaling approximately 1,500 acres in southeast Nevada. In November 2019, PEVM entered into a sales contract. The sale, which was completed on November 11, 2021, resulted in liquidation of substantially all of PEVM's remaining assets. All proceeds from the sale were used to repay outstanding indebtedness owed to the Company. PEVM was legally dissolved on February 16, 2022. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities at December 31 are summarized as follows: 2021 2020 (thousands of dollars) Accrued state taxes $ 192 $ 125 Accrued payroll 3,123 2,282 Accrued royalties 294 260 Accrued officer compensation 989 1,053 Accrued professional expenses 287 559 Accrued foreign taxes — 1,054 Other liabilities 988 1,524 Total $ 5,873 $ 6,857 |
LONG-TERM DEBT AND LONG-TERM OB
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS | LONG-TERM DEBT AND LONG-TERM OBLIGATIONS Senior Secured Credit Facilities As of December 31, 2021, the Company had no outstanding borrowings under the senior secured revolving credit facility (the “Revolving Facility”) and approximately $42.2 million in borrowings outstanding under the senior secured term loan facility (the “Term Loan Facility”) (and, together with the Revolving Facility, the “Credit Facilities ”), in each case, under the Company's amended and restated credit agreement (as amended, the “ARC Agreement”), entered into by TOCCO, SHR, GSPL and TC (SHR, GSPL and TC collectively the “Guarantors”) . As of December 31, 2021, the Company had approximately $75.0 million of availability under our Revolving Facility (which has aggregate commitments of $75.0 million under the ARC Agreement). However, TOCCO’s ability to make additional borrowings under the Revolving Facility at December 31, 2021 was limited by, and in the future may be limited by, the Company’s obligation to maintain compliance with the covenants contained in the ARC Agreement (including maintenance of a maximum Consolidated Leverage Ratio and minimum Consolidated Fixed Charge Coverage Ratio (each as defined in the ARC Agreement)). The maturity date for the ARC Agreement is July 31, 2023. Subject to the lenders acceptance of any increased commitment and other conditions, TOCCO has the option, at any time, to request an increase to the commitment under the Revolving Facility and/or the Term Loan Facility by an additional amount of up to $50.0 million in the aggregate. Borrowings under each of the Credit Facilities bear interest on the outstanding principal amount at a rate equal to LIBOR plus an applicable margin of 1.25% to 2.50% or, at our option, the Base Rate plus an applicable margin of 0.25% to 1.50%, in each case, with the applicable margin being determined based on the Consolidated Leverage Ratio of TOCCO. A commitment fee between 0.20% and 0.375% is also payable quarterly on the unused portion of the Revolving Facility. As of December 31, 2021, the year to date effective interest rate for the Credit Facilities was 1.85% . Borrowings under the Term Loan Facility are subject to quarterly amortization payments, approximating $4.4 million annually, based on a commercial style amortization method over a twenty years period; provided, that the final principal installment will be paid on the maturity date and will be in an amount equal to the outstanding borrowings under the Term Loan Facility on such date. On May 8, 2020, TOCCO and the Guarantors entered into a Seventh Amendment to the ARC Agreement. Pursuant to the Seventh Amendment, certain amendments were made to the terms of the ARC Agreement, including, among other things, to (a) permit the incurrence of additional indebtedness in the form of loans (the “PPP Loans”) under the United States Small Business Administration Paycheck Protection Program (the “PPP”) and (b) exclude the PPP Loans from the calculation of the Consolidated Leverage Ratio until such time that any portion of the PPP Loans are not forgiven in accordance with the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). For each fiscal quarter after December 31, 2019, TOCCO must maintain a maximum Consolidated Leverage Ratio of 3.50 to 1.00 (subject to temporary increase following certain acquisitions). TOCCO's Consolidated Leverage Ratio was 1.05 and 1.65 as of December 31, 2021 and December 31, 2020, respectively. Additionally, TOCCO must maintain a minimum Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal quarter of 1.15 to 1.00. TOCCO's Consolidated Fixed Charge Coverage Ratio was 4.79 and 1.8 as of December 31, 2021 and December 31, 2020, respectively. On May 3, 2021, TOCCO and the Guarantors entered into an Eighth Amendment to Amended and Restated Credit Agreement (the “Eighth Amendment”) which amended the definition of Consolidated EBITDA for any Measurement Period (as defined in the ARC Agreement) to allow for certain add backs not to exceed $5.0 million in the aggregate for the 2021 fiscal year related to charges, expenses and losses arising from or related to Texas freeze event. The ARC Agreement contains a number of customary affirmative and negative covenants and the Company was in compliance with those covenants as of December 31, 2021. PPP Loans On May 6, 2020, SHR and TC (collectively, the “Borrowers”) received loan proceeds from loans (the “PPP Loans”) under the United States Small Business Administration Paycheck Protection Program in an aggregate principal amount of approximately $6.1 million. The PPP Loans were evidenced by unsecured promissory notes each payable to Bank of America, N.A. The Borrowers fully utilized the PPP Loans to cover payroll and benefits costs in accordance with the relevant terms and conditions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company was notified of full forgiveness for the PPP Loans for TC and SHR on September 8, 2021 and November 6, 2021, respectively. The forgiveness of the PPP Loans is recognized as gain on extinguishment of debt in the Consolidated Financial Statements as of December 31, 2021. Debt Issuance Costs Debt issuance costs of approximately $0.9 million were incurred in connection with the fourth amendment to the ARC Agreement. Unamortized debt issuance costs of approximately $0.3 million and $0.5 million for the years ended December 31, 2021 and December 31, 2020, have been netted against outstanding loan balances. Long-term debt and long-term obligations at December 31 are summarized as follows: 2021 2020 (thousands of dollars) Revolving facility $ — $ — Term loan facility 42,188 46,563 Loan fees (287) (468) Total long-term debt 41,901 46,095 Less current portion including loan fees 4,194 4,194 Total long-term debt, less current portion including loan fees $ 37,707 $ 41,901 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation The Company is periodically named in legal actions arising from normal business activities. We evaluate the merits of these actions and, if we determine that an unfavorable outcome is probable and can be reasonably estimated, we will establish the necessary reserves. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future. Supplier Agreements In accordance with our supplier agreements, on a recurring monthly basis, the Company commits to purchasing a determined volume of feedstock in anticipation of upcoming requirements. Feedstock purchases are invoiced and recorded when they are delivered. As of December 31, 2021 and 2020, the value of the remaining undelivered feedstock approximated $19.7 million and $9.2 million, respectively. From time to time, we may incur shortfall fees due to feedstock purchases being below the minimum amounts as prescribed by our agreements with our suppliers. The shortfall fee expenses were $0.3 million, $1.1 million and $0.6 million for the years ended December 31, 2021, 2020, and 2019. Environmental Remediation Amounts charged to expense for various activities related to environmental monitoring, compliance, and improvements were approximately $1.1 million in 2021, $0.9 million in 2020 and $0.9 million in 2019. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Stock Option Plan for Key Employees, as well as, the Non-Employee Director Stock Option Plan (hereinafter collectively referred to as the “Stock Option Plans”), were approved by the Company’s stockholders in July 2008. The Stock Option Plans allot for the issuance of up to 1,000,000 shares. The Trecora Resources Stock and Incentive Plan (the “Plan”) was approved by the Company’s stockholders in June 2012. The Plan allows for the issuance of up to 2,500,000 shares in the form of stock options or restricted stock unit awards. Share-based compensation of approximately $2.2 million, $1.9 million, and $1.3 million was recognized in 2021, 2020, and 2019, respectively. Stock Options and Warrant Awards Stock options and warrants granted under the provisions of the Stock Option Plans permit the purchase of our common stock at exercise prices equal to the closing price of Company common stock on the date the options were granted. The options have terms of 10 years and generally vest ratably over terms of 4 to 5 years. There were no stock options or warrant awards issued during 2021, 2020, or 2019. A summary of the status of the Company’s stock option and warrant awards is as follows: Stock Options and Warrants Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Intrinsic Outstanding at January 1, 2021 487,000 $ 10.87 Granted — — Expired — — Exercised (20,000) 4.09 Forfeited — — Outstanding at December 31, 2021 467,000 $ 11.16 1.9 $ — Expected to vest — $ — 0.0 $ — Exercisable at December 31, 2021 467,000 $ 11.16 1.9 $ — The aggregate intrinsic value of options was calculated as the difference between the exercise price of the underlying awards and the quoted price of our common stock. At December 31, 2021, options to purchase approximately 0.1 million shares of common stock were in-the-money. Since no options were granted, the weighted average grant-date fair value per share of options granted during the years 2021, 2020, and 2019 was nil. During 2021, 2020, and 2019 the aggregate intrinsic value of options and warrants exercised was approximately nil, $0.1 million and $2.6 million respectively, determined as of the date of option exercise. The Company received approximately nil, nil and $0.9 million in cash from the exercise of options during 2021, 2020 and 2019, respectively. Of the 85,000 stock options and warrants exercised in 2019, the Company only issued approximately 11,000 shares due to cashless transactions. The tax benefit realized from the exercise in 2019 was insignificant. As of December 31, 2021, there was no unrecognized compensation costs related to non-vested share-based compensation. Restricted Stock and Restricted Stock Unit Awards Generally, restricted stock and restricted stock unit awards are granted annually to officers and directors of the Company under the provisions of the Plan. Restricted stock units are also granted ad hoc to attract or retain key personnel, and the terms and conditions under which these restricted stock units vest vary by award. The fair market value of restricted stock units granted is equal to the Company’s closing stock price on the date of grant. Restricted stock units granted generally vest ratably over periods ranging from 1 to 3 years. Certain awards also include vesting provisions based on performance metrics. Upon vesting, the restricted stock units are settled by issuing one share of Company common stock per unit. A summary of the status of the Company’s restricted stock units activity is as follows: Shares of Restricted Stock Units Weighted Average Grant Date Price per Share Outstanding at January 1, 2021 567,563 $ 7.42 Granted 337,443 7.30 Forfeited (121,448) 7.98 Vested (197,114) 7.75 Outstanding at December 31, 2021 586,444 $ 7.32 Expected to vest 586,444 As of December 31, 2021, there was approximately $0.7 million of unrecognized compensation costs related to non-vested restricted share-based compensation that is expected to be recognized over a weighted average period of 1.1 years. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We file an income tax return in the U.S. federal jurisdiction and a margin tax return in Texas. Previously, the Texas Comptroller selected the R&D credit calculations related to the 2014 and 2015 calendar years for audit. The state of Texas suspended examination of these years in order to perform a comprehensive review of audit procedures to provide consistency. During the fourth quarter of 2019, we received notice that Texas had completed its review of its procedures and initiated additional requests for information which has been submitted for their review. In early 2022, we were contacted by the State of Texas to schedule meetings to close the examinations. We do not expect any material changes from the results of the Texas audits. Our federal and Texas tax returns remain open for examination for the years 2017 through 2020. As of December 31, 2021 and 2020, respectively, we recognized no adjustments for uncertain tax positions or related interest and penalties. On March 27, 2020, the CARES Act was enacted into law. The CARES Act provided stimulus measures to companies impacted by the COVID-19 pandemic, which included the ability to defer payment for employer payroll taxes, utilize net operating loss (“NOL”) carrybacks, increased the limitation on the deductibility of interest expense, technical corrections to allow accelerated tax depreciation on qualified improvement property, as well as allowing qualified businesses to apply for loans and grants. We filed carryback claims allowed under these provisions and have collected all amounts, including interest. The provision (benefit) for income taxes from continuing operations consisted of the following: Year ended December 31, 2021 2020 2019 (thousands of dollars) Current federal benefit $ (552) $ (19,190) $ — Current state expense 173 86 91 Deferred federal expense (benefit) (1,910) 15,140 (3,564) Deferred state expense (benefit) (75) 1 (93) Income tax expense (benefit) $ (2,364) $ (3,963) $ (3,566) The difference between the year ended effective tax rate in income tax expense (benefit) and the Federal statutory rate of 21% is as follows: 2021 2020 2019 (thousands of dollars) Income taxes at U.S. statutory rate $ 546 $ 211 $ (3,455) State taxes, net of federal benefit 62 71 256 Forgiveness of PPP Loans (1,286) — — Net operating loss carryback — (4,655) — Research and development credits — (518) (203) Permanent and other items (1,686) 928 (164) Total tax benefit $ (2,364) $ (3,963) $ (3,566) The significant differences in rate are primarily due to compensation limits, stock-based compensation, tax impact of law changes, research and development credits and forgiveness of PPP Loans. Tax effects of temporary differences that give rise to significant portions of federal and state deferred tax assets and liabilities were as follows: December 31, 2021 2020 (thousands of dollars) Deferred tax liabilities: Plant, pipeline and equipment $ (31,126) $ (31,119) Other assets (29) (31) Operating lease asset (1,712) (2,211) Total deferred tax liabilities $ (32,867) $ (33,361) Deferred tax assets: Net operating loss carryforward 1,836 — Intangible assets 3,079 3,396 Operating lease liability 1,712 2,211 Stock-based compensation 1,070 956 Mineral interests — 226 Interest expense carryforward 253 — Inventory 263 146 Other 129 135 Gross deferred tax assets 8,342 7,070 Valuation allowance — (226) Total net deferred tax assets $ 8,342 $ 6,844 Net deferred tax liabilities $ (24,525) $ (26,517) We had provided a valuation allowance in 2020 against our mineral interests deferred tax assets because of uncertainties regarding their realization. The mineral interest deferred tax asset and corresponding valuation allowance was removed in 2021 as a result of the sale of PEVM. See Note 11. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We operate in two business segments: Specialty Petrochemicals and Specialty Waxes. We operate through business segments according to the nature and economic characteristics of our products as well as the manner in which the information is used internally by our key decision maker, who is our Chief Executive Officer. The accounting policies of the reporting segments are the same as those described in Note 2. Our Specialty Petrochemicals segment includes SHR and GSPL. Our Specialty Waxes segment includes TC. We also separately identify our corporate overhead which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Year Ended December 31, 2021 Specialty Petrochemicals Specialty Waxes Corporate Consolidated (in thousands) Net revenues $ 234,091 $ 38,599 $ — $ 272,690 Operating income (loss) before depreciation and amortization 25,930 3,120 (14,838) 14,212 Operating income (loss) 14,748 (2,988) (14,844) (3,084) Income (loss) from continuing operations before taxes 17,722 (800) (14,323) 2,599 Depreciation and amortization 11,183 6,108 5 17,296 Capital expenditures 11,633 2,519 — 14,152 Year Ended December 31, 2021 Specialty Petrochemicals Specialty Waxes Corporate Eliminations Consolidated (in thousands) Intangible assets, net $ — $ 11,056 $ — $ — $ 11,056 Total assets 298,966 79,860 109,292 (194,578) 293,540 Year Ended December 31, 2020 Specialty Petrochemicals Specialty Waxes Corporate Consolidated (in thousands) Net revenues $ 172,350 $ 36,276 $ — $ 208,626 Operating income (loss) before depreciation and amortization 26,438 1,762 (9,114) 19,086 Operating income (loss) 15,827 (3,760) (9,129) 2,938 Income (loss) from continuing operations before taxes 13,294 (3,606) (8,685) 1,003 Depreciation and amortization 10,611 5,522 16 16,149 Capital expenditures 11,334 2,017 — 13,351 Year Ended December 31, 2020 Specialty Petrochemicals Specialty Waxes Corporate Eliminations Consolidated (in thousands) Intangible assets, net $ — $ 12,893 $ — $ — $ 12,893 Total assets 298,198 83,108 127,260 (191,733) 316,833 |
NET INCOME (LOSS) PER COMMON SH
NET INCOME (LOSS) PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER COMMON SHARE | NET INCOME (LOSS) PER COMMON SHARE Year ended December 31, 2021 2020 2019 (thousands of dollars, except per share amounts) Net Income per Common Share - Continuing Operations Net income (loss) from continuing operations $ 4,963 $ 4,966 $ (12,884) Basic income (loss) from continuing operations per common share: Weighted average shares outstanding 24,459 24,802 24,698 Per share amount (dollars) $ 0.20 $ 0.20 $ (0.52) Diluted income (loss) from continuing operations per common share: Weighted average shares outstanding 25,081 25,356 24,698 Per share amount (dollars) $ 0.20 $ 0.20 $ (0.52) Weighted average shares-denominator 24,459 24,802 24,698 Unvested restricted stock unit grant 622 554 — Weighted average shares, as adjusted 25,081 25,356 24,698 Net Income per Common Share - Discontinued Operations Net income (loss) from discontinued operations $ — $ 26,209 $ (2,090) Basic income (loss) from discontinued operations per common share: Weighted average shares outstanding 24,459 24,802 24,698 Per share amount (dollars) $ — $ 1.06 $ (0.08) Diluted income (loss) from discontinued operations per common share: Weighted average shares outstanding 25,081 25,356 24,698 Per share amount (dollars) $ — $ 1.03 $ (0.08) Weighted average shares-denominator 24,459 24,802 24,698 Unvested restricted stock unit grant 622 554 — Weighted average shares, as adjusted 25,081 25,356 24,698 Net Income per Common Share Net income (loss) $ 4,963 $ 31,175 $ (14,974) Basic income (loss) per common share: Weighted average shares outstanding 24,459 24,802 24,698 Per share amount (dollars) $ 0.20 $ 1.26 $ (0.60) Diluted income (loss) per common share: Weighted average shares outstanding 25,081 25,356 24,698 Per share amount (dollars) $ 0.20 $ 1.23 $ (0.60) Weighted average shares-denominator 24,459 24,802 24,698 Unvested restricted stock unit grant 622 554 — Effect of dilutive stock options — — — Weighted average shares, as adjusted 25,081 25,356 24,698 At December 31, 2021, 2020, and 2019, 0.5 million, 0.5 million and 0.5 million potential common stock shares, respectively, were issuable upon the exercise of options and warrants. At December 31, 2021, the Company had 0.5 million stock options that were not included in the computation of diluted earnings per share because such options would be anti-dilutive. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In November 2020, Company Director Adam C. Peakes joined Merichem Company as Executive Vice President and Chief Financial Officer. The Company incurred expenses of less than $0.1 million during each of the years ended December 31, 2021, 2020, and 2019, respectively, for Merichem Company. At December 31, 2021 and 2020, we had outstanding liabilities payable to Merichem Company of less than $0.1 million and $0.1 million, respectively. Consulting fees of approximately nil , nil and $0.1 million were incurred during 2021, 2020, and 2019, respectively, from Nicholas Carter, Director and former CEO. Due to his history and experience with the Company and to provide continuity after his retirement, a consulting agreement was entered into with Mr. Carter in July 2015, which terminated effective December 31, 2019. |
POST-RETIREMENT OBLIGATIONS
POST-RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
POST-RETIREMENT OBLIGATIONS | POST-RETIREMENT OBLIGATIONSAs previously disclosed, the Company entered into agreements with certain former executive officers to provide certain welfare benefits. At December 31, 2021 and 2020, respectively, approximately $0.3 million and $0.3 million was outstanding and included in other liabilities. For the period ended December 31, 2021, and 2020, approximately $0.00 million and $0.01 million, respectively, had been paid. |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | TRECORA RESOURCES AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Three years ended December 31, 2021 Description Beginning Additions Deductions Ending ALLOWANCE FOR DEFERRED December 31, 2019 225,622 — — 225,622 December 31, 2020 225,622 — — 225,622 December 31, 2021 225,622 — (225,622) — Description Beginning Additions Deductions Ending ALLOWANCE FOR DOUBTFUL December 31, 2019 452,000 — (23,000) 429,000 December 31, 2020 429,000 — (129,000) 300,000 December 31, 2021 300,000 — — 300,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The Consolidated Financial Statements include the balance sheets, statements of operations, stockholders' equity, and cash flows of the Company, TOCCO, TC, SHR, GSPL and PEVM. Other entities which are not controlled but over which the Company has the ability to exercise significant influence are accounted for using the equity method of accounting. All intercompany profits, transactions and balances have been eliminated. |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments – Our principal banking and short-term investing activities are with local and national financial institutions. Short-term investments with an original maturity of three months or less are classified as cash equivalents. |
Inventories | Inventories – For SHR, finished products and feedstock are recorded at the lower of cost, determined on the first-in, first-out method (FIFO), or market. For TC, inventory is recorded at the lower of cost or market as follows: (1) raw material cost is calculated using the weighted-average cost method and (2) product inventory cost is calculated using the specific cost method. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts – We evaluate the collectability of our trade receivables and adequacy of the allowance for doubtful accounts based upon historical experience and any specific customer financial difficulties of which we become aware. For the year ended December 31, 2021, there was no change in the allowance for doubtful accounts balance. For the year ended December 31, 2020, we decreased the balance by $129,000 due to collections of previously allowed for receivables. For the year ended December 31, 2019, we increased the balance by $152,000 due to concerns regarding collectability for a specific customer. We track customer balances and past due amounts to determine if customers may be having financial difficulties. This, along with historical experience and a working knowledge of each customer, helps determine accounts that should be written off. |
Discontinued Operations | Discontinued Operations – Assets that are sold or classified as held for sale are classified as discontinued operations provided that the disposal represents a strategic shift that has (or will have) a major effect on our operations and financial results (e.g., a disposal of a major geographical area, a major line of business, a major equity method investment or other major parts of an entity). |
Plant, Pipeline and Equipment | Plant, Pipeline and Equipment – Plant, pipeline and equipment are stated at cost. Depreciation is provided over the estimated service lives using the straight-line method. Gains and losses from disposition are included in operations in the period incurred. Maintenance and repairs are expensed as incurred. Major renewals and improvements are capitalized. Interest costs incurred to finance expenditures during construction phase are capitalized as part of the historical cost of constructing the assets. Construction commences with the development of the design and ends when the assets are ready for use. Capitalized interest costs are included in plant, pipeline and equipment and are depreciated over the service life of the related assets. Labor costs incurred to self-construct assets are capitalized as part of the historical cost the assets. Construction commences with the development of the design and ends when the assets are ready for use. Capitalized labor costs are included in plant, pipeline and equipment and are depreciated over the service life of the related assets. Platinum catalyst is included in plant, pipeline and equipment at cost. Amortization of the catalyst is based upon cost less estimated salvage value of the catalyst using the straight line method over the estimated useful life (see Note 8). |
Leases | Leases – The Company enters into leases as a lessee for rail cars, rail equipment, office space and office equipment in the ordinary course of business. When procuring services, or upon entering into a contract, the Company determines whether an arrangement contains a lease at its inception. As part of that evaluation the Company considers whether there is an implicitly or explicitly identified asset in the arrangement and whether the Company, as the lessee, has the right to control the use of that asset. The Company also reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised. All leases with a term of more than 12 months are recognized as right-of-use (“ROU”) assets and associated lease liabilities in the combined balance sheet. Lease liabilities are measured at the lease commencement date and determined using the present value of the lease payments not yet paid, at the Company’s incremental borrowing rate, which approximates the rate at which the Company would borrow on a secured basis. The interest rate implicit in the lease is generally not determinable in the transactions where the Company is the lessee. The ROU asset equals the lease liability adjusted for any initial direct costs, prepaid rent and lease incentives. All of the Company’s leases are classified as operating leases. The leases include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company made a policy election to not recognize leases with a lease term of 12 months or less in the combined balance sheet. Lease expense for these leases is recognized on a straight-line basis over the lease term. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill and indefinite-lived intangible assets are tested for impairment at least annually; however, these tests are performed more frequently when events or changes in circumstances indicate that the asset may be impaired. Impairment exists when carrying value exceeds fair value. Estimates of fair value are based on appraisals, market prices for comparable assets, or internal estimates of future net cash flows. Definite-lived intangible assets consist of customer relationships, licenses, permits and developed technology. The majority of these assets are being amortized using discounted estimated future cash flows over the term of the related agreements. Intangible assets associated with customer relationships are being amortized using the discounted estimated future cash flows method based upon assumed rates of annual customer attrition. We continually evaluate the reasonableness of the useful lives of these assets. Once these assets are fully amortized, they will be removed from the consolidated balance sheets. |
Business Combinations and Related Business Acquisition Costs | Business Combinations and Related Business Acquisition Costs – Assets and liabilities associated with business acquisitions are recorded at fair value using the acquisition method of accounting. We allocate the purchase price of acquisitions based upon the fair value of each component which may be derived from various observable and unobservable inputs and assumptions. We may use third-party valuation specialists to assist us in this allocation. Initial purchase price allocations are preliminary and subject to revision within the measurement period, not to exceed one year from the date of acquisition. The fair value of property, plant and equipment and intangible assets are based upon the discounted cash flow method that involves inputs that are not observable in the market (Level 3). Goodwill assigned represents the amount of consideration transferred in excess of the fair value assigned to identifiable assets acquired and liabilities assumed. Business acquisition costs are expensed as incurred and are reported as general and administrative expenses in the consolidated statements of income. We define these costs to include finder’s fees, advisory, legal, accounting, valuation, and other professional consulting fees, as well as, travel associated with the evaluation and effort to acquire specific businesses. |
Investment in AMAK (Discontinued Operations) | Investment in AMAK (Discontinued Operations) – Prior to the completion of the sale of our ownership interest in AMAK, we accounted for our investment in AMAK using the equity method of accounting under which we recorded in income our share of AMAK’s income or loss for each period. The amount recorded was also adjusted to reflect the amortization of certain differences between the basis in our investment in AMAK and our share of the net assets of AMAK was reflected in AMAK’s financial statements (see Note 6). Any proceeds received from or payments made to AMAK were recorded as decreases or increases in the balance of our investment. |
Other Assets | Other Assets – Other assets include a license used in specialty petrochemicals operations, spare parts inventory and certain specialty petrochemicals assets. Spare parts are accounted for using FIFO. |
Long-Lived Assets Impairment | Long-Lived Assets Impairment – Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable based on the undiscounted net cash flows to be generated from the asset’s use. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis although other factors including the state of the economy are considered. |
Revenue Recognition and Shipping and Handling Costs | Revenue Recognition – Revenue is measured based on a consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. In evaluating when a customer has control of the asset we primarily consider whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer has accepted delivery and a right to payment exists. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of product sales and processing. The Company does not offer material rights of return or service-type warranties. The following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue. For more detailed information about reportable segments, disaggregation of revenues, and contract balance disclosures, see Note 17. Specialty Petrochemicals segment The Specialty Petrochemicals segment of the Company produces eight high purity hydrocarbons and other petroleum based products including isopentane, normal pentane, isohexane and hexane. These products are used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, crude oil from the Canadian tar sands, and in the catalyst support industry. SHR’s specialty petrochemicals products are typically transported to customers by rail car, tank truck, iso-container and ship. Product Sales – The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company’s product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment for prime product sales is typically due and collected 30 to 60 days subsequent to point of sale. Processing Fees – The Company’s services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements the customer retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Specialty Waxes segment The Specialty Waxes segment of the Company manufactures and sells specialty polyethylene and poly alpha olefin waxes and also provides custom processing services for customers. Product Sales – The Company sells individual (distinct) products to its customers on a stand-alone basis (point-of-sale) without any further integration. There is no significant modification of any one or more products sold to fulfill another promised product or service within any of the Company’s product sale transactions. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Processing Fees – The Company’s promised services consist of processing customer supplied feedstocks into custom products including, if requested, services for forming, packaging, and arranging shipping. Pursuant to Tolling Agreements and Purchase Order Arrangements, the customer typically retains title to the feedstocks and processed products. The performance obligation in each Tolling Agreement transaction and Purchase Order Arrangement is the processing of customer provided feedstocks into custom products and is satisfied over time. The amount of consideration received for product sales is stated within the executed invoice with the customer. Payment is typically due and collected within 30 days subsequent to point of sale. Shipping and Handling Costs – Shipping and handling costs are classified as cost of product sales and processing and are expensed as incurred. |
Retirement Plan | Retirement Plan – We offer employees the benefit of participating in a 401(k) plan. We match 100% up to 6% of pay with vesting occurring over 2 years. |
Environmental Liabilities | Environmental Liabilities – Remediation costs are accrued based on estimates of known environmental remediation exposure. Ongoing environmental compliance costs, including maintenance and monitoring costs, are expensed as incurred. |
Other Liabilities | Other Liabilities – We periodically make changes in or expand our custom processing units at the request of the customer. The cost to make these changes is shared by the customer. Upon completion of a project a note receivable and a deferred liability are recorded to recover the project costs which are then capitalized. At times instead of a note receivable being established, the customer pays an upfront cost. The amortization of other liabilities is recorded as a reduction to depreciation expense over the life of the contract with the customer. |
Net Income Per Share | Net Income Per Share – We compute basic income per common share based on the weighted-average number of common shares outstanding. Diluted income per common share is computed based on the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if potential dilutive common shares, consisting of stock options, unvested restricted stock units, and shares which could be issued upon conversion of debt, had been issued (see Note 18). |
Foreign Currency | Foreign Currency – The functional currency for the Company and each of the Company’s subsidiaries is the US dollar (USD). Transaction gains or losses as a result of transactions denominated and settled in currencies other than the USD are reflected in the statements of income as foreign exchange transaction gains or losses. We do not employ any practices to minimize foreign currency risks. |
Management Estimates | Management Estimates – The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include allowance for doubtful accounts receivable and inventory obsolescence; assessment of impairment of our long-lived assets and intangible assets; litigation liabilities, post-retirement benefit obligations, environmental liabilities, and current and deferred income taxes. Actual results could differ from these estimates. In early 2020, the World Health Organization declared the rapidly spreading coronavirus disease (“COVID-19”) outbreak a pandemic. This pandemic has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there were no material adverse impacts on the Company’s results of operations and financial position at December 31, 2021. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of the Consolidated Financial Statements. These estimates may change, as new events occur and additional information is obtained. |
Share-Based Compensation | Share-Based Compensation – We recognize share-based compensation of stock options granted based upon the fair value of options on the grant date using the Black-Scholes pricing model (see Note 15). Share-based compensation expense recognized during the period is based on the fair value of the portion of share-based payments awards that is ultimately expected to vest. Share-based compensation expense recognized in the consolidated statements of operations for the years ended December 31, 2021, 2020, and 2019 includes compensation expense based on the estimated grant date fair value for awards that are ultimately expected to vest, and accordingly has been reduced for estimated forfeitures. Estimated forfeitures at the time of grant are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Fair Value | Fair Value – The carrying value of cash and cash equivalents, trade receivables, taxes receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. The fair value of variable rate long term debt and notes payable reflect recent market transactions and approximate carrying value. We used other observable inputs that would qualify as Level 2 inputs to make our assessment of the approximate fair value of our cash and cash equivalents, trade receivables, taxes receivable, accounts payable, accrued liabilities, other liabilities, notes payable and variable rate long term debt. We measure fair value by ASC Topic 820 Fair Value. ASC Topic 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC Topic 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard amends numerous accounting pronouncements but does not require any new fair value measurements of reported balances. ASC Topic 820 emphasizes that fair value, among other things, is based on exit price versus entry price, should include assumptions about risk such as nonperformance risk in liability fair values, and is a market-based measurement, not an entity-specific measurement. When considering the assumptions that market participants would use in pricing the asset or liability, ASC Topic 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The fair value hierarchy prioritizes inputs used to measure fair value into three broad levels. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. |
Income Taxes | Income Taxes – Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company maintains a valuation allowance for a deferred tax asset when it is deemed to be more likely than not that some or all of the deferred tax asset will not be realized. Our estimate of the potential outcome of any uncertain tax issues is subject to management’s assessment of relevant risks, facts, and circumstances existing at that time. We use a more likely than not threshold for financial statement recognition and measurement of tax position taken or expected to be taken in a tax return. To the extent that our assessment of such tax position changes, the change in estimate is recorded in the period in which the determination is made. We report tax-related interest and penalties as a component of income tax expense. |
Subsequent Events | Subsequent Events – The Company has evaluated subsequent events through March 10, 2022, the date that the Consolidated Financial Statements were approved by management. |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Effective January 1, 2020, we adopted Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, which changed the way entities recognize impairment of most financial assets. Short-term and long-term financial assets, as defined by the standard, are impacted by immediate recognition of estimated credit losses in the financial statements, reflecting the net amount expected to be collected. The adoption of this standard did not have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for us in the first quarter of 2021 on a prospective basis, and early adoption is permitted. The Company does not expect that the adoption of this guidance will have a material impact on our Consolidated Financial Statements. Recent Accounting Pronouncements 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 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 contracts, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. This guidance is effective from March 12, 2020 through December 31, 2022 and adoption is optional. We are currently evaluating the impact of ASU 2020-04 on our Consolidated Financial Statements. |
TRADE RECEIVABLES (Tables)
TRADE RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Trade Receivables, Net | Trade receivables, net, at December 31, consisted of the following: 2021 2020 (thousands of dollars) Trade receivables $ 33,111 $ 25,601 Less allowance for doubtful accounts (300) (300) Trade receivables, net $ 32,811 $ 25,301 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories include the following at December 31: 2021 2020 (thousands of dollars) Raw material $ 2,348 $ 2,580 Work in process 212 138 Finished products 18,574 10,227 Total inventory $ 21,134 $ 12,945 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Included in discontinued operations are the following: Years Ended December 31, 2020 2019 (thousands of dollars) Saudi administration and transaction expenses $ (2,452) $ (187) Equity in earnings (losses) of AMAK 702 (986) Gain (loss) on sale of equity interest 34,926 (1,473) Income (loss) from discontinued operations before taxes 33,176 (2,646) Tax (expense) benefit (6,967) 556 Income (loss) from discontinued operations, net of tax $ 26,209 $ (2,090) |
Summarized Results of Operation and Financial Position for AMAK | The summarized results of operations and financial position for AMAK are as follows: Results of Operations Nine Months Ended September 30, Year Ended December 31, 2020 2019 (thousands of dollars) Sales $ 62,633 $ 78,350 Cost of sales (55,728) (69,620) Gross profit 6,905 8,730 Selling, general, and administrative (4,985) (13,047) Operating income (loss) 1,920 (4,317) Other (expense) income (346) 558 Finance and interest expense (1,211) (1,450) Income (loss) before Zakat and income taxes 363 (5,209) Zakat and income tax (expense) benefit (490) (1,801) Net loss $ (127) $ (7,010) Financial Position September 30, 2020 (thousands of dollars) Current assets $ 29,799 Noncurrent assets 209,814 Total assets $ 239,613 Current liabilities $ 40,919 Long term liabilities 79,122 Stockholders' equity 119,572 $ 239,613 |
Equity in Income or Loss of AMAK Reflected on Consolidated Statements | The equity in the earnings (losses) of AMAK included in income (loss) from discontinued operations, net of tax, on the consolidated statements of operations for the years ended December 31, 2020 and 2019 is comprised of the following: Nine Months Ended September 30, Year Ended December 31, 2020 2019 (thousands of dollars) AMAK Net Loss (127) (7,010) Company’s share of loss reported by AMAK (308) * (1,996) Amortization of difference between Company’s investment in AMAK and Company’s share of net assets of AMAK 1,010 1,010 Equity in earnings (losses) of AMAK 702 (986) * Percentage of Ownership varies during the period. |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets at December 31 are summarized as follows: 2021 2020 (thousands of dollars) Prepaid license $ 500 $ 403 Prepaid insurance 1,145 4,241 Spare parts 2,114 2,376 Cash held by AMAK for foreign taxes (see Note 6) — 1,877 Other prepaid expenses and assets 554 301 Total $ 4,313 $ 9,198 |
PLANT, PIPELINE AND EQUIPMENT (
PLANT, PIPELINE AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Plant, Pipeline and Equipment | Plant, pipeline and equipment include the following at December 31: 2021 2020 (thousands of dollars) Platinum catalyst $ 1,478 $ 1,580 Catalyst 4,325 4,325 Land 5,428 5,428 Plant, pipeline and equipment 282,780 270,149 Construction in progress 7,213 6,422 Total plant, pipeline and equipment 301,224 287,904 Less accumulated depreciation (115,703) (100,800) Net plant, pipeline and equipment $ 185,521 $ 187,104 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense were as follows: December 31, ($ in thousands) Classification in the Consolidated Statements of Operations 2021 2020 2019 Operating lease cost (a) Cost of sales, exclusive of depreciation and amortization $ 4,366 $ 4,088 $ 4,361 Operating lease cost (a) Selling, general and administrative 135 137 137 Total operating lease cost $ 4,501 $ 4,225 $ 4,498 Finance lease cost: Amortization of right-of-use assets Depreciation — — — Interest on lease liabilities Interest Expense — — — Total finance lease cost $ — $ — $ — Total lease cost $ 4,501 $ 4,225 $ 4,498 (a) Short-term lease costs were approximately $0.8 million, $0.5 million and nil as of December 31, 2021, 2020 and 2019, respectively. December 31, ($ in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used for operating leases $ 3,678 $ 3,713 $ 4,389 Operating cash flows used for finance leases — — — Financing cash flows used for finance leases — — — Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 915 $ 206 $ 81 Finance leases — — — December 31, 2021 2020 Weighted-average remaining lease term (in years): Operating leases 3.0 3.7 Finance leases 0.0 0.0 Weighted-average discount rate: Operating leases 4.5 % 4.5 % Finance leases — % — % |
Schedule of Lease Assets and Liabilities | December 31, ($ in thousands) Classification on the Consolidated Balance Sheets 2021 2020 Assets: Operating Operating lease assets $ 8,170 $ 10,528 Finance Property, plant, and equipment — — Total leased assets $ 8,170 $ 10,528 Liabilities: Current Operating Current portion of operating lease liabilities $ 3,227 $ 3,195 Finance Short-term debt and current portion of long-term debt — — Noncurrent Operating Operating lease liabilities 4,923 7,333 Finance Long-term debt — — Total lease liabilities $ 8,150 $ 10,528 |
Schedule of Operating Lease Maturities | As of December 31, 2021, maturities of lease liabilities were as follows: ($ in thousands) Operating Leases Finance Leases 2022 $ 3,511 $ — 2023 2,619 — 2024 1,298 — 2025 1,123 — 2026 149 — Total lease payments $ 8,700 $ — Less: Interest 550 — Total lease obligations $ 8,150 $ — |
Schedule of Finance Lease Maturities | As of December 31, 2021, maturities of lease liabilities were as follows: ($ in thousands) Operating Leases Finance Leases 2022 $ 3,511 $ — 2023 2,619 — 2024 1,298 — 2025 1,123 — 2026 149 — Total lease payments $ 8,700 $ — Less: Interest 550 — Total lease obligations $ 8,150 $ — |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Finite-Lived Intangible Assets by Major Class | The following table summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (in thousands): December 31, 2021 Intangible assets subject to amortization Gross Accumulated Net Customer relationships $ 16,852 $ (8,145) $ 8,707 Non-compete agreements 94 (94) — Licenses and permits 1,471 (808) 663 Developed technology 6,131 (4,445) 1,686 Total $ 24,548 $ (13,492) $ 11,056 December 31, 2020 Intangible assets subject to amortization Gross Accumulated Net Customer relationships $ 16,852 $ (7,022) $ 9,830 Non-compete agreements 94 (94) — Licenses and permits 1,471 (707) 764 Developed technology 6,131 (3,832) 2,299 Total $ 24,548 $ (11,655) $ 12,893 |
Schedule of Expected Future Amortization Expenses | Based on identified intangible assets that are subject to amortization as of December 31, 2021, we expect future amortization expenses for each period to be as follows (in thousands): Total 2022 2023 2024 2025 2026 Thereafter Customer relationships $ 8,707 $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 1,123 $ 3,092 Licenses and permits 663 86 86 86 86 86 233 Developed technology 1,686 613 613 460 — — — Total future amortization expense $ 11,056 $ 1,822 $ 1,822 $ 1,669 $ 1,209 $ 1,209 $ 3,325 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at December 31 are summarized as follows: 2021 2020 (thousands of dollars) Accrued state taxes $ 192 $ 125 Accrued payroll 3,123 2,282 Accrued royalties 294 260 Accrued officer compensation 989 1,053 Accrued professional expenses 287 559 Accrued foreign taxes — 1,054 Other liabilities 988 1,524 Total $ 5,873 $ 6,857 |
LONG-TERM DEBT AND LONG-TERM _2
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Long-term Obligations | Long-term debt and long-term obligations at December 31 are summarized as follows: 2021 2020 (thousands of dollars) Revolving facility $ — $ — Term loan facility 42,188 46,563 Loan fees (287) (468) Total long-term debt 41,901 46,095 Less current portion including loan fees 4,194 4,194 Total long-term debt, less current portion including loan fees $ 37,707 $ 41,901 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Status of Stock Option Awards and Warrants | A summary of the status of the Company’s stock option and warrant awards is as follows: Stock Options and Warrants Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Intrinsic Outstanding at January 1, 2021 487,000 $ 10.87 Granted — — Expired — — Exercised (20,000) 4.09 Forfeited — — Outstanding at December 31, 2021 467,000 $ 11.16 1.9 $ — Expected to vest — $ — 0.0 $ — Exercisable at December 31, 2021 467,000 $ 11.16 1.9 $ — |
Schedule of Restricted Stock Units Activity | A summary of the status of the Company’s restricted stock units activity is as follows: Shares of Restricted Stock Units Weighted Average Grant Date Price per Share Outstanding at January 1, 2021 567,563 $ 7.42 Granted 337,443 7.30 Forfeited (121,448) 7.98 Vested (197,114) 7.75 Outstanding at December 31, 2021 586,444 $ 7.32 Expected to vest 586,444 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision (benefit) for income taxes from continuing operations consisted of the following: Year ended December 31, 2021 2020 2019 (thousands of dollars) Current federal benefit $ (552) $ (19,190) $ — Current state expense 173 86 91 Deferred federal expense (benefit) (1,910) 15,140 (3,564) Deferred state expense (benefit) (75) 1 (93) Income tax expense (benefit) $ (2,364) $ (3,963) $ (3,566) |
Schedule of Effective Income Tax Expense (Benefit) | The difference between the year ended effective tax rate in income tax expense (benefit) and the Federal statutory rate of 21% is as follows: 2021 2020 2019 (thousands of dollars) Income taxes at U.S. statutory rate $ 546 $ 211 $ (3,455) State taxes, net of federal benefit 62 71 256 Forgiveness of PPP Loans (1,286) — — Net operating loss carryback — (4,655) — Research and development credits — (518) (203) Permanent and other items (1,686) 928 (164) Total tax benefit $ (2,364) $ (3,963) $ (3,566) |
Tax Effects of Temporary Differences | Tax effects of temporary differences that give rise to significant portions of federal and state deferred tax assets and liabilities were as follows: December 31, 2021 2020 (thousands of dollars) Deferred tax liabilities: Plant, pipeline and equipment $ (31,126) $ (31,119) Other assets (29) (31) Operating lease asset (1,712) (2,211) Total deferred tax liabilities $ (32,867) $ (33,361) Deferred tax assets: Net operating loss carryforward 1,836 — Intangible assets 3,079 3,396 Operating lease liability 1,712 2,211 Stock-based compensation 1,070 956 Mineral interests — 226 Interest expense carryforward 253 — Inventory 263 146 Other 129 135 Gross deferred tax assets 8,342 7,070 Valuation allowance — (226) Total net deferred tax assets $ 8,342 $ 6,844 Net deferred tax liabilities $ (24,525) $ (26,517) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | We also separately identify our corporate overhead which includes financing and administrative activities such as legal, accounting, consulting, investor relations, officer and director compensation, corporate insurance, and other administrative costs. Year Ended December 31, 2021 Specialty Petrochemicals Specialty Waxes Corporate Consolidated (in thousands) Net revenues $ 234,091 $ 38,599 $ — $ 272,690 Operating income (loss) before depreciation and amortization 25,930 3,120 (14,838) 14,212 Operating income (loss) 14,748 (2,988) (14,844) (3,084) Income (loss) from continuing operations before taxes 17,722 (800) (14,323) 2,599 Depreciation and amortization 11,183 6,108 5 17,296 Capital expenditures 11,633 2,519 — 14,152 Year Ended December 31, 2021 Specialty Petrochemicals Specialty Waxes Corporate Eliminations Consolidated (in thousands) Intangible assets, net $ — $ 11,056 $ — $ — $ 11,056 Total assets 298,966 79,860 109,292 (194,578) 293,540 Year Ended December 31, 2020 Specialty Petrochemicals Specialty Waxes Corporate Consolidated (in thousands) Net revenues $ 172,350 $ 36,276 $ — $ 208,626 Operating income (loss) before depreciation and amortization 26,438 1,762 (9,114) 19,086 Operating income (loss) 15,827 (3,760) (9,129) 2,938 Income (loss) from continuing operations before taxes 13,294 (3,606) (8,685) 1,003 Depreciation and amortization 10,611 5,522 16 16,149 Capital expenditures 11,334 2,017 — 13,351 Year Ended December 31, 2020 Specialty Petrochemicals Specialty Waxes Corporate Eliminations Consolidated (in thousands) Intangible assets, net $ — $ 12,893 $ — $ — $ 12,893 Total assets 298,198 83,108 127,260 (191,733) 316,833 |
NET INCOME (LOSS) PER COMMON _2
NET INCOME (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | Year ended December 31, 2021 2020 2019 (thousands of dollars, except per share amounts) Net Income per Common Share - Continuing Operations Net income (loss) from continuing operations $ 4,963 $ 4,966 $ (12,884) Basic income (loss) from continuing operations per common share: Weighted average shares outstanding 24,459 24,802 24,698 Per share amount (dollars) $ 0.20 $ 0.20 $ (0.52) Diluted income (loss) from continuing operations per common share: Weighted average shares outstanding 25,081 25,356 24,698 Per share amount (dollars) $ 0.20 $ 0.20 $ (0.52) Weighted average shares-denominator 24,459 24,802 24,698 Unvested restricted stock unit grant 622 554 — Weighted average shares, as adjusted 25,081 25,356 24,698 Net Income per Common Share - Discontinued Operations Net income (loss) from discontinued operations $ — $ 26,209 $ (2,090) Basic income (loss) from discontinued operations per common share: Weighted average shares outstanding 24,459 24,802 24,698 Per share amount (dollars) $ — $ 1.06 $ (0.08) Diluted income (loss) from discontinued operations per common share: Weighted average shares outstanding 25,081 25,356 24,698 Per share amount (dollars) $ — $ 1.03 $ (0.08) Weighted average shares-denominator 24,459 24,802 24,698 Unvested restricted stock unit grant 622 554 — Weighted average shares, as adjusted 25,081 25,356 24,698 Net Income per Common Share Net income (loss) $ 4,963 $ 31,175 $ (14,974) Basic income (loss) per common share: Weighted average shares outstanding 24,459 24,802 24,698 Per share amount (dollars) $ 0.20 $ 1.26 $ (0.60) Diluted income (loss) per common share: Weighted average shares outstanding 25,081 25,356 24,698 Per share amount (dollars) $ 0.20 $ 1.23 $ (0.60) Weighted average shares-denominator 24,459 24,802 24,698 Unvested restricted stock unit grant 622 554 — Effect of dilutive stock options — — — Weighted average shares, as adjusted 25,081 25,356 24,698 |
BUSINESS AND OPERATIONS OF TH_2
BUSINESS AND OPERATIONS OF THE COMPANY (Details) | Dec. 31, 2021 |
AMAK | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 55.00% |
PEVM | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 33.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts increase (decrease) | $ 0 | $ (129) | $ 152 |
Receivable write-offs | $ 0 | 129 | 0 |
Employer percent of match | 100.00% | ||
Employer percent match of gross pay | 6.00% | ||
Vesting period under 401(k) plan | 2 years | ||
Matching contributions on behalf of employees | $ 1,300 | 1,300 | 1,300 |
Reduction in depreciation expense due to amortization of capitalize liability | $ 236 | $ 821 | $ 792 |
CONCENTRATIONS OF REVENUES AN_2
CONCENTRATIONS OF REVENUES AND CREDIT RISK (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Accounts receivable | $ 32,811 | $ 25,301 | |
Accounts payable | 12,075 | 14,447 | |
FDIC insured amount | 250 | ||
One Major Supplier | |||
Concentration Risk [Line Items] | |||
Accounts payable | $ 3,400 | $ 4,400 | |
Revenue | Customer Concentration Risk | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk | 13.40% | 15.40% | 15.00% |
Revenue | Geographic Concentration Risk | Non-US | |||
Concentration Risk [Line Items] | |||
Concentration risk | 19.00% | 24.00% | 21.90% |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 4,600 | $ 4,100 |
TRADE RECEIVABLES (Details)
TRADE RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Trade receivables | $ 33,111 | $ 25,601 |
Less allowance for doubtful accounts | (300) | (300) |
Trade receivables, net | $ 32,811 | $ 25,301 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 2,348 | $ 2,580 |
Work in process | 212 | 138 |
Finished products | 18,574 | 10,227 |
Total inventory | 21,134 | 12,945 |
Inventory products in transit | $ 4,900 | $ 3,600 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Thousands, ر.س in Millions | Sep. 22, 2019USD ($) | Sep. 22, 2019SAR (ر.س) | Sep. 30, 2020USD ($) | Dec. 31, 2021USD ($)ر.س / $ | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Net income (loss) from discontinued operations | $ 1,500 | $ 0 | $ 26,209 | $ (2,090) | ||
Non-refundable deposit of amount sold, percentage | 5.00% | |||||
Operating cash flows from discontinued operations | $ 0 | 4,008 | $ 468 | |||
Saudi Industrial Development Fund Limited Guarantee | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Loan guarantee percentage | 41.00% | |||||
AMAK | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale of investment | $ 70,000 | ر.س 265 | ||||
Percentage investment in AMAK | 33.30% | |||||
Investments in AMAK | $ 32,900 | |||||
Foreign exchange rate (SR per USD) | ر.س / $ | 3.75 | |||||
AMAK | Foreign Tax Authority | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Foreign income tax expense (benefit), continuing operations | $ 1,300 |
DISCONTINUED OPERATIONS - Disco
DISCONTINUED OPERATIONS - Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued operations (net of tax) | $ 0 | $ 26,209 | $ (2,090) |
Investment in Al Masane Al Kobra Mining Company (AMAK) | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Saudi administration and transaction expenses | (2,452) | (187) | |
Equity in earnings (losses) of AMAK | 702 | (986) | |
Gain (loss) on sale of equity interest | 34,926 | (1,473) | |
Income (loss) from discontinued operations before taxes | 33,176 | (2,646) | |
Tax (expense) benefit | (6,967) | 556 | |
Discontinued operations (net of tax) | $ 26,209 | $ (2,090) |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Operating Results (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Cost of sales | $ (244,114) | $ (179,948) | $ (220,444) | |
Gross Profit | 28,576 | 28,678 | 38,515 | |
Operating income (loss) | (3,084) | 2,938 | (10,863) | |
Other (expense) income | 5,683 | (1,935) | (5,587) | |
Zakat and income tax (expense) benefit | (2,364) | (3,963) | (3,566) | |
Net income (loss) | $ 4,963 | $ 31,175 | (14,974) | |
AMAK | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sales | $ 62,633 | 78,350 | ||
Cost of sales | (55,728) | (69,620) | ||
Gross Profit | 6,905 | 8,730 | ||
Selling, general, and administrative | (4,985) | (13,047) | ||
Operating income (loss) | 1,920 | (4,317) | ||
Other (expense) income | (346) | 558 | ||
Finance and interest expense | (1,211) | (1,450) | ||
Income (loss) before Zakat and income taxes | 363 | (5,209) | ||
Zakat and income tax (expense) benefit | 490 | 1,801 | ||
Net income (loss) | $ (127) | $ (7,010) |
DISCONTINUED OPERATIONS - Sum_2
DISCONTINUED OPERATIONS - Summary of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | |||||
Current assets | $ 88,793 | $ 105,896 | |||
TOTAL ASSETS | 293,540 | 316,833 | |||
Current liabilities | 25,995 | 29,584 | |||
Stockholders' equity | 199,973 | 204,407 | $ 171,443 | $ 185,161 | |
TOTAL LIABILITIES AND EQUITY | $ 293,540 | $ 316,833 | |||
AMAK | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Current assets | $ 29,799 | ||||
Noncurrent assets | 209,814 | ||||
TOTAL ASSETS | 239,613 | ||||
Current liabilities | 40,919 | ||||
Long term liabilities | 79,122 | ||||
Stockholders' equity | 119,572 | ||||
TOTAL LIABILITIES AND EQUITY | $ 239,613 |
DISCONTINUED OPERATIONS - Equit
DISCONTINUED OPERATIONS - Equity in the Income or Loss of Equity Method Investment (Details) - AMAK - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
AMAK Net Loss | $ (127) | $ (7,010) |
Company’s share of loss reported by AMAK | (308) | (1,996) |
Amortization of difference between Company’s investment in AMAK and Company’s share of net assets of AMAK | 1,010 | 1,010 |
Equity in earnings (losses) of AMAK | $ 702 | $ (986) |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid license | $ 500 | $ 403 |
Prepaid insurance | 1,145 | 4,241 |
Spare parts | 2,114 | 2,376 |
Cash held by AMAK for foreign taxes | 0 | 1,877 |
Other prepaid expenses and assets | 554 | 301 |
Total | $ 4,313 | $ 9,198 |
PLANT, PIPELINE AND EQUIPMENT_2
PLANT, PIPELINE AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | $ 301,224 | $ 287,904 | |
Less accumulated depreciation | (115,703) | (100,800) | |
Net plant, pipeline and equipment | 185,521 | 187,104 | |
Capitalized labor costs | 600 | 600 | $ 0 |
Platinum catalyst | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 1,478 | 1,580 | |
Catalyst | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 4,325 | 4,325 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 5,428 | 5,428 | |
Plant, pipeline and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | 282,780 | 270,149 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total plant, pipeline and equipment | $ 7,213 | $ 6,422 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 4,501,000 | $ 4,225,000 | $ 4,498,000 |
Finance lease cost, amortization of right-of-use assets | 0 | 0 | 0 |
Finance lease cost, interest on lease liabilities | 0 | 0 | 0 |
Total finance lease cost | 0 | 0 | 0 |
Total lease cost | 4,501,000 | 4,225,000 | 4,498,000 |
Short-term lease costs | 800,000 | 500,000 | 0 |
Variable lease costs | 0 | ||
Cost of sales, exclusive of depreciation and amortization | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | 4,366,000 | 4,088,000 | 4,361,000 |
Selling, general and administrative | |||
Lessee, Lease, Description [Line Items] | |||
Total operating lease cost | $ 135,000 | $ 137,000 | $ 137,000 |
LEASES - Balance Sheet Classifi
LEASES - Balance Sheet Classifications (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating | $ 8,170 | $ 10,528 |
Finance | 0 | 0 |
Total leased assets | 8,170 | 10,528 |
Current portion of operating lease liabilities | 3,227 | 3,195 |
Finance lease liability, current | 0 | 0 |
Operating lease liabilities, noncurrent | 4,923 | 7,333 |
Finance lease liabilities, noncurrent | 0 | 0 |
Total lease liabilities | $ 8,150 | $ 10,528 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | PLANT, PIPELINE, AND EQUIPMENT, NET | PLANT, PIPELINE, AND EQUIPMENT, NET |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | LONG-TERM DEBT, net of current portion | LONG-TERM DEBT, net of current portion |
LEASES - Cash Flow Classificati
LEASES - Cash Flow Classifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating cash flows used for operating leases | $ 3,678 | $ 3,713 | $ 4,389 |
Operating cash flows used for finance leases | 0 | 0 | 0 |
Financing cash flows used for finance leases | 0 | 0 | 0 |
Right-of-use assets obtained in exchange for lease obligations, Operating leases | 915 | 206 | 81 |
Right-of-use assets obtained in exchange for lease obligations, Finance leases | $ 0 | $ 0 | $ 0 |
LEASES - Terms and Discount Rat
LEASES - Terms and Discount Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term, Operating leases (in years) | 3 years | 3 years 8 months 12 days |
Weighted-average remaining lease term, Finance leases (in years) | 0 years | 0 years |
Weighted-average discount rate, Operating leases | 4.50% | 4.50% |
Weighted-average discount rate, Finance leases | 0.00% | 0.00% |
LEASES - Maturities (Details)
LEASES - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2022 | $ 3,511 | |
2023 | 2,619 | |
2024 | 1,298 | |
2025 | 1,123 | |
2026 | 149 | |
Total lease payments | 8,700 | |
Less: Interest | 550 | |
Total lease obligations | 8,150 | $ 10,528 |
Finance Leases | ||
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Total lease payments | 0 | |
Less: Interest | 0 | |
Total lease obligations | $ 0 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | |||
Amortization of intangible assets | $ 1,837 | $ 1,842 | $ 1,856 |
Specialty Waxes | |||
Goodwill [Line Items] | |||
Goodwill, impairment loss | $ 24,200 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible assets subject to amortization (Definite-lived) | ||
Gross | $ 24,548 | $ 24,548 |
Accumulated Amortization | (13,492) | (11,655) |
Total | 11,056 | 12,893 |
Customer relationships | ||
Intangible assets subject to amortization (Definite-lived) | ||
Gross | 16,852 | 16,852 |
Accumulated Amortization | (8,145) | (7,022) |
Total | 8,707 | 9,830 |
Non-compete agreements | ||
Intangible assets subject to amortization (Definite-lived) | ||
Gross | 94 | 94 |
Accumulated Amortization | (94) | (94) |
Total | 0 | 0 |
Licenses and permits | ||
Intangible assets subject to amortization (Definite-lived) | ||
Gross | 1,471 | 1,471 |
Accumulated Amortization | (808) | (707) |
Total | 663 | 764 |
Developed technology | ||
Intangible assets subject to amortization (Definite-lived) | ||
Gross | 6,131 | 6,131 |
Accumulated Amortization | (4,445) | (3,832) |
Total | $ 1,686 | $ 2,299 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Expected Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 11,056 | $ 12,893 |
2022 | 1,822 | |
2023 | 1,822 | |
2024 | 1,669 | |
2025 | 1,209 | |
2026 | 1,209 | |
Thereafter | 3,325 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 8,707 | 9,830 |
2022 | 1,123 | |
2023 | 1,123 | |
2024 | 1,123 | |
2025 | 1,123 | |
2026 | 1,123 | |
Thereafter | 3,092 | |
Licenses and permits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 663 | 764 |
2022 | 86 | |
2023 | 86 | |
2024 | 86 | |
2025 | 86 | |
2026 | 86 | |
Thereafter | 233 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total | 1,686 | $ 2,299 |
2022 | 613 | |
2023 | 613 | |
2024 | 460 | |
2025 | 0 | |
2026 | 0 | |
Thereafter | $ 0 |
MINERAL PROPERTIES IN THE UNI_2
MINERAL PROPERTIES IN THE UNITED STATES (Details) | 12 Months Ended |
Dec. 31, 2021apatent | |
Mineral Industries Disclosures [Abstract] | |
Number of patented mining claims in which PEVM has undivided interest | 48 |
Number of unpatented mining claims in which PEVM has undivided interest | 5 |
Area under patented and unpatented mining claims | a | 1,500 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Accrued state taxes | $ 192 | $ 125 |
Accrued payroll | 3,123 | 2,282 |
Accrued royalties | 294 | 260 |
Accrued officer compensation | 989 | 1,053 |
Accrued professional expenses | 287 | 559 |
Accrued foreign taxes | 0 | 1,054 |
Other liabilities | 988 | 1,524 |
Total | $ 5,873 | $ 6,857 |
LONG-TERM DEBT AND LONG-TERM _3
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS - Narrative (Details) $ in Thousands | May 06, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 03, 2021USD ($) |
Debt Instrument [Line Items] | |||||
Additional borrowing capacity | $ 50,000 | ||||
Additions to CARES Act, PPP Loans | 0 | $ 6,123 | $ 0 | ||
Loan fees | 287 | 468 | |||
Unamortized debt issuance cost | 300 | 500 | |||
Amended And Restated Credit Agreement, Eighth Amendment | Revolving facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 0 | |||
Available remaining borrowing capacity | $ 75,000 | ||||
Effective interest rate | 1.85% | ||||
Line of credit facility amortization of payments | $ 4,400 | ||||
Amortization period | 20 years | ||||
Amended And Restated Credit Agreement, Eighth Amendment | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 42,188 | $ 46,563 | |||
Borrowed funds under the agreement | $ 42,200 | ||||
Amended And Restated Credit Agreement, Eighth Amendment | TOCCO | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio, minimum required | 3.50 | ||||
Consolidated leverage ratio | 1.05 | 1.65 | |||
Consolidated fixed charge coverage ratio, minimum required | 1.15 | ||||
Consolidated fixed charge coverage ratio | 4.79 | 1.8 | |||
PPP Loans | CARES Act | |||||
Debt Instrument [Line Items] | |||||
Additions to CARES Act, PPP Loans | $ 6,100 | ||||
ARC Agreement, Fourth Amendment | |||||
Debt Instrument [Line Items] | |||||
Available remaining borrowing capacity | $ 75,000 | ||||
Debt instrument, maximum add-backs | $ 5,000 | ||||
Loan fees | $ 900 | ||||
ARC Agreement, Fourth Amendment | Revolving facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.20% | ||||
ARC Agreement, Fourth Amendment | Revolving facility | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.25% | ||||
ARC Agreement, Fourth Amendment | Revolving facility | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.25% | ||||
ARC Agreement, Fourth Amendment | Revolving facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, commitment fee percentage | 0.375% | ||||
ARC Agreement, Fourth Amendment | Revolving facility | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
ARC Agreement, Fourth Amendment | Revolving facility | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.50% |
LONG-TERM DEBT AND LONG-TERM _4
LONG-TERM DEBT AND LONG-TERM OBLIGATIONS - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Loan fees | $ (287) | $ (468) |
Total long-term debt | 41,901 | 46,095 |
Less current portion including loan fees | 4,194 | 4,194 |
LONG-TERM DEBT, net of current portion | 37,707 | 41,901 |
Revolving facility | Amended And Restated Credit Agreement, Eighth Amendment | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 0 |
Secured Debt | Amended And Restated Credit Agreement, Eighth Amendment | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 42,188 | $ 46,563 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Undelivered feedstock | $ 19.7 | $ 9.2 | |
Shortfall fee expenses | 0.3 | 1.1 | $ 0.6 |
Environmental remediation expense | $ 1.1 | $ 0.9 | $ 0.9 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2012 | Jul. 31, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | $ 2,247,000 | $ 1,912,000 | $ 1,250,000 | ||
Stock Option Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance (in shares) | 1,000,000 | ||||
Unrecognized compensation costs related to non-vested share-based compensation | $ 0 | ||||
Stock Option Plans | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of expiration period | 10 years | ||||
Granted (in shares) | 0 | 0 | 0 | ||
Weighted average grant date fair value (in dollars per share) | $ 0 | ||||
Proceeds from stock options exercised | $ 0 | $ 0 | $ 900,000 | ||
Shares issued upon option and warrant exercise (in shares) | 11,000 | ||||
Stock Option Plans | Stock Options and Warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Issued during the period (in shares) | 0 | 0 | 0 | ||
Granted (in shares) | 0 | ||||
Intrinsic value of options and warrants exercised | $ 0 | $ 100,000 | $ 2,600,000 | ||
Exercised in period (in shares) | 85,000 | ||||
Stock Option Plans | Common Stock | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options in the money (in shares) | 100,000 | ||||
Stock Option Plans | Minimum | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Stock Option Plans | Maximum | Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
The Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance (in shares) | 2,500,000 | ||||
The Plan | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation costs related to non-vested restricted share-based compensation | $ 700,000 | ||||
Weighted average period compensation cost expected to be recognized | 1 year 1 month 6 days | ||||
The Plan | Minimum | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
The Plan | Maximum | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options and Warrant Awards (Details) - Stock Options and Warrants - Stock Option Plans - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options and Warrants | ||
Outstanding at beginning of period (in shares) | 487,000 | |
Granted (in shares) | 0 | |
Expired (in shares) | 0 | |
Exercised (in shares) | (20,000) | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 467,000 | 487,000 |
Expected to vest (in shares) | 0 | |
Exercisable (in shares) | 467,000 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, beginning of period (in dollars per share) | $ 11.16 | $ 10.87 |
Granted (in dollars per share) | 0 | |
Expired (in dollars per share) | 0 | |
Exercised (in dollars per share) | 4.09 | |
Forfeited (in dollars per share) | 0 | |
Expected to vest (in dollars per share) | 0 | |
Exercisable (in dollars per share) | $ 11.16 | |
Weighted Average Remaining Contractual Life | ||
Outstanding, contractual life | 1 year 10 months 24 days | |
Expected to vest, contractual life | 0 years | |
Exercisable, contractual life | 1 year 10 months 24 days | |
Intrinsic Value | ||
Outstanding, intrinsic value | $ 0 | |
Expected to vest, intrinsic value | 0 | |
Exercisable, intrinsic value | $ 0 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted Stock and Restricted Stock Unit Awards (Details) - The Plan - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares of Restricted Stock Units | |
Outstanding, beginning of period (in shares) | 567,563 |
Granted (in shares) | 337,443 |
Forfeited (in shares) | (121,448) |
Vested (in shares) | (197,114) |
Outstanding, end of period (in shares) | 586,444 |
Expected to vest (in shares) | 586,444 |
Weighted Average Grant Date Price per Share | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 7.42 |
Granted (in dollars per share) | $ / shares | 7.30 |
Forfeited (in dollars per share) | $ / shares | 7.98 |
Vested (in dollars per share) | $ / shares | 7.75 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 7.32 |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current federal benefit | $ (552) | $ (19,190) | $ 0 |
Current state expense | 173 | 86 | 91 |
Deferred federal expense (benefit) | (1,910) | 15,140 | (3,564) |
Deferred state expense (benefit) | (75) | 1 | (93) |
Income tax expense (benefit) | $ (2,364) | $ (3,963) | $ (3,566) |
INCOME TAXES - Effective Tax Re
INCOME TAXES - Effective Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income taxes at U.S. statutory rate | $ 546 | $ 211 | $ (3,455) |
State taxes, net of federal benefit | 62 | 71 | 256 |
Forgiveness of PPP Loans | (1,286) | 0 | 0 |
Net operating loss carryback | 0 | (4,655) | 0 |
Research and development credits | 0 | (518) | (203) |
Permanent and other items | (1,686) | 928 | (164) |
Income tax expense (benefit) | $ (2,364) | $ (3,963) | $ (3,566) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax liabilities: | ||
Plant, pipeline and equipment | $ (31,126) | $ (31,119) |
Other assets | (29) | (31) |
Operating lease asset | (1,712) | (2,211) |
Total deferred tax liabilities | (32,867) | (33,361) |
Deferred tax assets: | ||
Net operating loss carryforward | 1,836 | 0 |
Intangible assets | 3,079 | 3,396 |
Operating lease liability | 1,712 | 2,211 |
Stock-based compensation | 1,070 | 956 |
Mineral interests | 0 | 226 |
Interest expense carryforward | 253 | 0 |
Inventory | 263 | 146 |
Other | 129 | 135 |
Gross deferred tax assets | 8,342 | 7,070 |
Valuation allowance | 0 | (226) |
Total net deferred tax assets | 8,342 | 6,844 |
Net deferred tax liabilities | $ (24,525) | $ (26,517) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Net revenues | $ 272,690 | $ 208,626 | $ 258,959 |
Operating income (loss) before depreciation and amortization | 14,212 | 19,086 | |
Operating income (loss) | (3,084) | 2,938 | (10,863) |
Income (loss) from continuing operations before taxes | 2,599 | 1,003 | $ (16,450) |
Depreciation and amortization | 17,296 | 16,149 | |
Capital expenditures | 14,152 | 13,351 | |
Intangible assets, net | 11,056 | 12,893 | |
Total assets | 293,540 | 316,833 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 0 | 0 | |
Operating income (loss) before depreciation and amortization | (14,838) | (9,114) | |
Operating income (loss) | (14,844) | (9,129) | |
Income (loss) from continuing operations before taxes | (14,323) | (8,685) | |
Depreciation and amortization | 5 | 16 | |
Capital expenditures | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Total assets | 109,292 | 127,260 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Intangible assets, net | 0 | 0 | |
Total assets | (194,578) | (191,733) | |
Specialty Petrochemicals | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 234,091 | 172,350 | |
Operating income (loss) before depreciation and amortization | 25,930 | 26,438 | |
Operating income (loss) | 14,748 | 15,827 | |
Income (loss) from continuing operations before taxes | 17,722 | 13,294 | |
Depreciation and amortization | 11,183 | 10,611 | |
Capital expenditures | 11,633 | 11,334 | |
Intangible assets, net | 0 | 0 | |
Total assets | 298,966 | 298,198 | |
Specialty Waxes | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 38,599 | 36,276 | |
Operating income (loss) before depreciation and amortization | 3,120 | 1,762 | |
Operating income (loss) | (2,988) | (3,760) | |
Income (loss) from continuing operations before taxes | (800) | (3,606) | |
Depreciation and amortization | 6,108 | 5,522 | |
Capital expenditures | 2,519 | 2,017 | |
Intangible assets, net | 11,056 | 12,893 | |
Total assets | $ 79,860 | $ 83,108 |
NET INCOME (LOSS) PER COMMON _3
NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) from continuing operations | $ 4,963 | $ 4,966 | $ (12,884) | |
Net income (loss) from discontinued operations | $ 1,500 | 0 | 26,209 | (2,090) |
Net income (loss) | $ 4,963 | $ 31,175 | $ (14,974) | |
Basic income (loss) per common share: | ||||
Weighted average shares outstanding (in shares) | 24,459 | 24,802 | 24,698 | |
Basic earnings (loss) per share, continuing operations (in dollars per share) | $ 0.20 | $ 0.20 | $ (0.52) | |
Basic earnings (loss) per share, discontinued operations (in dollars per share) | 0 | 1.06 | (0.08) | |
Net income (loss) (in dollars per share) | $ 0.20 | $ 1.26 | $ (0.60) | |
Diluted income (loss) per common share: | ||||
Weighted average shares outstanding (in shares) | 25,081 | 25,356 | 24,698 | |
Diluted earnings (loss) per share, continuing operations (in dollars per share) | $ 0.20 | $ 0.20 | $ (0.52) | |
Net income (loss) from discontinued operations, net of tax (in dollars per share) | 0 | 1.03 | (0.08) | |
Diluted earnings (loss) per share (in dollars per share) | $ 0.20 | $ 1.23 | $ (0.60) | |
Unvested restricted stock unit grant (in shares) | 622 | 554 | 0 | |
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | |
Diluted weighted average number of common shares outstanding (in shares) | 25,081 | 25,356 | 24,698 |
NET INCOME (LOSS) PER COMMON _4
NET INCOME (LOSS) PER COMMON SHARE (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential common stock shares issuable (in shares) | 0.5 | 0.5 | 0.5 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential common stock shares issuable (in shares) | 0.5 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 100 | $ 100 | $ 100 |
Account payable, related parties | 100 | 100 | |
Consulting fees | 4,655 | 558 | 0 |
Chairman of the Board | |||
Related Party Transaction [Line Items] | |||
Consulting fees | $ 0 | $ 0 | $ 100 |
POST-RETIREMENT OBLIGATIONS (De
POST-RETIREMENT OBLIGATIONS (Details) - Postretirement Benefits - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Deferred compensation arrangement with individual, amount of post-retirement obligation outstanding | $ 300 | $ 300 |
Defined benefit plan, benefits paid | $ 0 | $ 10 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 225,622 | $ 225,622 | $ 225,622 |
Additions | 0 | 0 | 0 |
Deductions | (225,622) | 0 | 0 |
Ending balance | 0 | 225,622 | 225,622 |
SEC Schedule, 12-09, Allowance, Credit Loss | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | 300,000 | 429,000 | 452,000 |
Additions | 0 | 0 | 0 |
Deductions | 0 | (129,000) | (23,000) |
Ending balance | $ 300,000 | $ 300,000 | $ 429,000 |