Blue Dolphin Energy (BDCO) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 14, 2019
Document And Entity Information
Entity Registrant Name	BLUE DOLPHIN ENERGY CO
Entity Central Index Key	0000793306
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,975,514
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 372	$ 14
Restricted cash	49	49
Accounts receivable, net	170	379
Accounts receivable, related party	492	0
Prepaid expenses and other current assets	1,283	1,786
Deposits	194	194
Inventory	1,797	1,510
Refundable federal income tax	166	108
Total current assets	4,523	4,040
LONG-TERM ASSETS
Total property and equipment, net	64,080	64,697
Operating lease right-of-use assets	720	0
Restricted cash, noncurrent	1,546	1,602
Surety bonds	230	230
Deferred tax assets, net	50	108
Total long-term assets	66,626	66,637
TOTAL ASSETS	71,149	70,677
CURRENT LIABILITIES
Long-term debt less unamortized debt issue costs, current portion, in default	34,355	34,863
Long-term debt, related party, current portion, in default	7,584	7,041
Line of credit payable	12,175	0
Interest payable	3,573	2,939
Interest payable, related party	1,854	1,534
Accounts payable	2,418	2,719
Accounts payable, related party	1,831	1,529
Current portion of lease liabilities	271	0
Asset retirement obligations, current portion	2,580	2,580
Accrued expenses and other current liabilities	2,105	1,571
Accrued arbitration award payable	9,528	21,128
Total current liabilities	78,274	75,904
LONG-TERM LIABILITIES
Long-term operating leases, net of current portion	654	0
Total long-term liabilities	654	0
TOTAL LIABILITIES	78,928	75,904
Commitments and contingencies (Note 18)
STOCKHOLDERS' DEFICIT
Common stock ($0.01 par value, 20,000,000 shares authorized; 10,975,514 shares issued at June 30, 2019 and December 31, 2018)	110	110
Additional paid-in capital	36,936	36,936
Retained earnings (deficit)	(44,825)	(42,273)
TOTAL STOCKHOLDERS' DEFICIT	(7,779)	(5,227)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 71,149	$ 70,677

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
STOCKHOLDERS' DEFICIT
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	10,975,514	10,975,514
Common stock, shares outstanding	10,975,514	10,975,514

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
REVENUE FROM OPERATIONS
Refinery operations	$ 77,257	$ 88,265	$ 145,115	$ 159,777
Tolling and terminaling	1,088	850	2,157	1,584
Total revenue from operations	78,345	89,115	147,272	161,361
COST OF GOODS SOLD
Crude oil, fuel use, and chemicals	76,364	82,992	139,551	151,078
Other conversion costs	2,192	2,098	4,521	4,504
Total cost of goods sold	78,556	85,090	144,072	155,582
Gross profit (loss)	(211)	4,025	3,200	5,779
COST OF OPERATIONS
LEH operating fee	183	154	333	308
Other operating expenses	56	56	113	100
General and administrative expenses	579	688	1,249	1,348
Depletion, depreciation and amortization	633	463	1,223	918
Accretion of asset retirement obligations	0	78	0	144
Total cost of operations	1,451	1,439	2,918	2,818
Income (loss) from operations	(1,662)	2,586	282	2,961
OTHER INCOME (EXPENSE)
Easement, interest and other income	1	1	1	2
Interest and other expense	(1,638)	(751)	(2,835)	(1,495)
Total other income (expense)	(1,637)	(750)	(2,834)	(1,493)
Income (loss) before income taxes	(3,299)	1,836	(2,552)	1,468
Income tax benefit	0	0	0	217
Net income (loss)	$ (3,299)	$ 1,836	$ (2,552)	$ 1,685
Income (loss) per common share:
Basic	$ (0.30)	$ 0.17	$ (0.23)	$ 0.15
Diluted	$ (0.30)	$ 0.17	$ (0.23)	$ 0.15
Weighted average number of common shares outstanding:
Basic	10,975,514	10,925,513	10,975,514	10,925,513
Diluted	10,975,514	10,925,513	10,975,514	10,925,513

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
OPERATING ACTIVITIES
Net income (loss)	$ (3,299)	$ 1,836	$ (2,552)	$ 1,685
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and amortization			1,223	918
Deferred income tax			0	(216)
Amortization of debt issue costs			189	64
Accretion of asset retirement obligations	0	78	0	144	$ 265
Changes in operating assets and liabilities
Accounts receivable			209	252
Accounts receivable, related party			(492)	653
Prepaid expenses and other current assets			503	(1,110)
Deposits and other assets			0	(66)
Inventory			(287)	(1,091)
Accrued arbitration award			(11,600)	(3,000)
Accounts payable, accrued expenses and other liabilities			1,211	2,635
Accounts payable, related party			302	252
Net cash provided by (used in) operating activities			(11,294)	1,120
INVESTING ACTIVITIES
Capital expenditures			(494)	(1,231)
Net cash used in investing activities			(494)	(1,231)
FINANCING ACTIVITIES
Proceeds from line of credit			12,402	0
Payments on debt			(541)	(475)
Net activity on related-party debt			229	452
Net cash provided by (used in) financing activities			12,090	(23)
Net change in cash, cash equivalents, and restricted cash			302	(134)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD			1,665	2,146	2,146
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$ 1,967	$ 2,012	1,967	2,012	$ 1,665
Non-cash investing and financing activities:
Financing of capital expenditures via accounts payable and capital leases			86	82
Financing of guaranty fees via long-term debt, related party			315	325
Line of credit closing costs included in principal balance			398	0
Interest paid			1,174	1,290
Income taxes paid			$ 0	$ 0

1. Organization

1. Organization	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Nature of Operations Structure and Management We have the following active subsidiaries: ● Blue Dolphin Pipe Line Company, a Delaware corporation (“BDPL”); ● Blue Dolphin Petroleum Company, a Delaware corporation; ● Blue Dolphin Services Co., a Texas corporation (“BDSC”); ● Lazarus Energy, LLC, a Delaware limited liability company (“LE”); ● Lazarus Refining & Marketing, LLC, a Delaware limited liability company (“LRM”); and ● Nixon Product Storage, LLC, a Delaware limited liability company (“NPS”). In June 2018, Blue Dolphin acquired 100% of the issued and outstanding membership interests of NPS from Lazarus Midstream Partners, L.P. (Lazarus Midstream), an affiliate of LEH, pursuant to an Assignment Agreement. The assignment was accounted for as a combination of entities under common control. See “Note (5) NPS Assignment” of this Quarterly Report for further information related to the NPS assignment. The transaction represents transfer of a vacant shell entity owned by Lazarus Midstream to Blue Dolphin for a nominal fee of $10.00. See “Part I, Item 1. Business” and “Part I, Item 2. Properties” in our Annual Report for additional information regarding our operating subsidiaries, principal facilities, and assets. Going Concern Final Arbitration Award and Settlement Agreement A hearing on confirmation of the Final Arbitration Award was scheduled to occur on September 18, 2017 in state district court in Harris County, Texas. Prior to the scheduled hearing, LE and GEL jointly notified the court that the hearing would be continued for a period of no more than 90 days after September 18, 2017 (the “Continuance Period”), to facilitate settlement discussions between the parties. On September 26, 2017, LE and Blue Dolphin, together with LEH and Jonathan Carroll, entered into a Letter Agreement with GEL, effective September 18, 2017 (the “GEL Letter Agreement”), confirming the parties’ agreement to the continuation of the confirmation hearing during the Continuance Period, subject to the terms of the GEL Letter Agreement. The GEL Letter Agreement was subsequently amended nine times to extend the Continuance Period through July 2018. LE, NPS, and Blue Dolphin, together with LEH, Carroll & Company Financial Holdings, L.P. (“C&C”), and Jonathan Carroll (collectively referred to herein as the “Lazarus Parties”), entered into that certain Settlement Agreement with GEL, dated as of July 20, 2018 (as may be further amended, restated, supplemented or otherwise modified from time to time, the “Settlement Agreement”), whereby GEL and the Lazarus Parties agreed to mutually release all claims against each other and to file a stipulation of dismissal with prejudice in connection with the GEL Arbitration (the “Settlement”), subject to the terms and conditions set forth in the Settlement Agreement. The Settlement is conditioned upon the Lazarus Parties paying GEL a lump sum cash payment of $10.0 million (the “Settlement Payment”) and $0.5 million in cash at the end of each calendar month (the “Interim Payments”). The Settlement Agreement restricts the Lazarus Parties from taking certain actions without the prior written consent of GEL, including: (i) the incurrence of any debt not specifically excepted in the Settlement Agreement, (ii) the establishment of any liens not specifically excepted in the Settlement Agreement, (iii) the disposition of any assets other than certain ordinary course sales to unaffiliated third parties, payments to unaffiliated third-party trade creditors and scheduled debt payments, (iv) the entrance into any transactions with affiliates not specifically excepted in the Settlement Agreement, (v) the failure to pay debts generally as they become due, and (vi) the entrance into a bankruptcy, reorganization or similar proceeding. A violation of any of the restrictions in the Settlement Agreement or failure of the Lazarus Parties to make Interim Payments as they become due, will constitute an event of default under the Settlement Agreement which, subject to certain cure periods, would allow GEL to terminate the Settlement Agreement and enforce its rights under the Final Arbitration Award. Simultaneously with the execution of the Settlement Agreement, Jonathan Carroll and C&C entered into a Security Agreement pursuant to which Jonathan Carroll and C&C agreed to secure up to $10.0 million of LE’s obligations under the Final Arbitration Award with a security interest in their equity in LEH. On May 6, 2019, the Lazarus Parties and GEL entered into a Fifth Amendment to the Settlement Agreement (the “Fifth Amendment”). The Fifth Amendment provided for, among other things: ● GEL’s consent to the Lazarus Parties entering into a $12.8 million Line of Credit, Guarantee and Security Agreement between NPS and Pilot Travel Centers LLC; ("Pilot") ● deferral of an April 30, 2019 Interim Payment under the Settlement Agreement, such deferred Interim Payment now being due in monthly installments of $0.1 million on the last day of each of the months June through October 2019 (the “Deferred Interim Installment Payments”); ● Payment of the Settlement Payment to be paid in one or more installment payments, the sum total of such payments constituting the Settlement Payment; and ● An extension to October 31, 2019 of the date on which the Deferred Interim Installment Payment and the Settlement Payment can be made (the “Settlement Date”). During the period May 7, 2019 to May 10, 2019, the Lazarus Parties made multiple payments to GEL in the aggregate total amount of $10.0 million, which payments represent the Settlement Payment. Unless extended in writing by GEL, if the Lazarus Parties fail to either timely make a Deferred Interim Installment Payment ($0.1 million each) or pay all of the remaining Interim Installment Payments (totaling $0.3 million as of the filing date of this Quarterly Report) on or before the Settlement Date, GEL may terminate the Settlement Agreement. Blue Dolphin can provide no assurance that the Lazarus Parties will be able to timely make the remaining Deferred Interim Installment Payments or that the consummation of the Settlement will occur. If the Lazarus Parties do not timely make the remaining Deferred Interim Installment Payments or another event of default under the Settlement Agreement occurs and the Settlement Agreement is terminated, GEL may seek to enforce the Final Award against the Lazarus Parties, in which case, Blue Dolphin and its affiliates would likely be required to seek protection under bankruptcy laws. As of the filing date of this Quarterly Report, GEL has received the following amounts from the Lazarus Parties toward reducing the outstanding balance of the Final Arbitration Award: (in millions) Initial payment (September 2017) $ 3.7 Interim Payments (July 2018 to April 2019) 8.0 Settlement Payment (May 2019) 10.0 Deferred Interim Installment Payments (June 2019 to July 2019) 0.2 $ 21.9 The Interim Payments did not reduce the amount of the Settlement Payment, but such payments did reduce the Final Arbitration Award. At the time of the Settlement, the difference between the amounts paid to GEL by the Lazarus Parties and the amount we have accrued on our consolidated balance sheet for arbitration award payable will be recognized as a gain on our consolidated statement of operations. At June 30, 2019 and December 31, 2018, accrued arbitration award payable on our consolidated balance sheet was $9.5 million and $21.1 million, respectively. Defaults Under Veritex Secured Loan Agreements ● Events of Default ● Financial Covenant Defaults The debt associated with these loans was classified within the current portion of long-term debt on our consolidated balance sheets at June 30, 2019 and December 31, 2018 due to existing events of default related to the Final Arbitration Award as well as the uncertainty of LE and LRM’s ability to meet financial covenants in the secured loan agreements in the future. Veritex has been working with LE and LRM and continues to be aware and party to all discussions and arrangements with GEL surrounding the executed settlement agreement and all amendments and extensions with GEL. In a notice to obligors dated April 30, 2019 (the "Veritex Consent'), Veritex agreed to waive certain covenant defaults and forbear from enforcing its remedies under the secured loan agreements subject to: (i) the agreement and concurrence of the USDA and (ii) the replenishment of a payment reserve account in the amount of $1.0 million as required by one of the secured loan agreements on or before August 31, 2019. Any exercise by Veritex of its rights and remedies under such secured loan agreements would have a material adverse effect on our business operations, including crude oil and condensate procurement and our customer relationships; financial condition; and results of operations. Further, Blue Dolphin and its affiliates would likely be required to seek protection under bankruptcy laws, and the trading prices of our common stock and the value of an investment in our common stock could significantly decrease, which could lead to holders of our common stock losing their investment in our common stock in its entirety. (See “Note (11) Long-Term Debt and Accrued Interest” for additional disclosures related to Veritex and the secured loan agreements.) Consecutive Quarterly Net Losses and Working Capital Deficits We had a working capital deficit of $73.8 million and $71.9 million at June 30, 2019 and December 31, 2018, respectively. Excluding the current portion of long-term debt, we had a working capital deficit of $31.8 million and $30.0 at June 30, 2019 at December 31, 2018, respectively. Operating Risks For additional disclosures related to the Final Arbitration Award, the Settlement Agreement, defaults under secured loan agreements, our business strategy, and risk factors that could materially affect our future business, financial condition and results of operations, refer to the following section in this Quarterly Report: ● Item 1. Financial Statements: - Note (9) Related-Party Transactions - Note (11) Long-Term Debt and Accrued Interest - Note (18) Commitments and Contingencies – Legal Matters ● Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations: - Final Arbitration Award and Settlement Agreement - Results of Operations - Liquidity and Capital Resources Refer to the following sections in our Annual Report on Form 10-K for the period ended December 31, 2018 (the “Annual Report”): ● Part I, Item 1. Business – Business Strategy ● Part I, Item 1A. Risk Factors ● Part I, Item 3. Legal Proceedings

2. Basis of Presentation

2. Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements, which include Blue Dolphin and its subsidiaries, have been prepared in accordance with GAAP for interim consolidated financial information pursuant to the rules and regulations of the SEC under Article 10 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In management’s opinion, all adjustments considered necessary for a fair presentation have been included, disclosures are adequate, and the presented information is not misleading. The consolidated balance sheet as of December 31, 2018 was derived from the audited financial statements at that date. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019, or for any other period.

3. Significant Accounting Polic

3. Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Significant Accounting Policies	The summary of significant accounting policies of Blue Dolphin is presented to assist in understanding our consolidated financial statements. Our consolidated financial statements and accompanying notes are representations of management, who is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of our consolidated financial statements. Use of Estimates Cash and Cash Equivalents Restricted Cash Accounts Receivable and Allowance for Doubtful Accounts Inventory Property and Equipment Refinery and Facilities We record refinery and facilities at cost less any adjustments for depreciation or impairment. Adjustment of the asset and the related accumulated depreciation accounts are made for the refinery and facilities asset’s retirement and disposal, with the resulting gain or loss included in the consolidated statements of operations. For financial reporting purposes, depreciation of refinery and facilities assets is computed using the straight-line method using an estimated useful life of 25 years beginning when the refinery and facilities assets are placed in service. We did not record any impairment of our refinery and facilities assets for the periods presented. Pipelines and Facilities Oil and Gas Properties Construction in Progress (See “Note (8) Property, Plant and Equipment, Net” for additional disclosures related to our refinery and facilities assets, oil and gas properties, pipelines and facilities assets, and construction in progress.) Revenue Recognition Revenue from Contracts with Customers (ASC 606) Refinery Operations Revenue We consider a variety of facts and circumstances in assessing the point of control transfer, including but not limited to: whether the purchaser can direct the use of the refined petroleum product, the transfer of significant risks and rewards, our rights to payment, and transfer of legal title. In each case, the term between the sale and when payment is due is not significant. Transportation, shipping, and handling costs incurred are included in cost of goods sold. Excise and other taxes that are collected from customers and remitted to governmental authorities are not included in revenue. Tolling and Terminaling Revenue We typically satisfy performance obligations for tolling and terminaling operations with the passage of time. We determine the transaction price at agreement inception based on the guaranteed minimum amount of revenue over the term of the agreement. We allocate the transaction price to the single performance obligation that exists under the agreement, and we recognize revenue in the amount for which we have a right to invoice. Generally, payment terms do not exceed 30 days. Revenue from tank storage customers may, from time to time, include fees for ancillary services, such as in-tank and tank-to-tank blending. These services are considered optional to the customer, and the price we charge for such services is not included in the fixed cost under the customer’s tank storage agreement. Ancillary services are considered a separate performance obligation by us under the tank storage agreement. The performance obligation is satisfied when the requested service has been performed in the applicable period. Income Taxes As of each reporting date, management considers new evidence, both positive and negative, to determine the realizability of deferred tax assets. Management considers whether it is more likely than not that a portion or all of the deferred tax assets will be realized, which is dependent upon the generation of future taxable income prior to the expiration of any net operating loss (“NOL”) carryforwards. When management determines that it is more likely than not that a tax benefit will not be realized, a valuation allowance is recorded to reduce deferred tax assets. A significant piece of objective negative evidence evaluated was cumulative losses incurred over the three-year period ended December 31, 2018. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. Based on this evaluation, we recorded a valuation allowance against the deferred tax assets for which realization was not deemed more likely than not as of June 30, 2019 and December 31, 2018. We expect to recover deferred tax assets related to the Alternative Minimum Tax (“AMT”) credit carryforwards. In addition, we have NOL carryforwards that remain available for future use. The benefit of an uncertain tax position is recognized in the financial statements if it meets a minimum recognition threshold. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more-likely-than-not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At June 30, 2019 and December 31, 2018, there were no uncertain tax positions for which a reserve or liability was necessary. (See “Note (16) Income Taxes” for further information related to income taxes.) Impairment or Disposal of Long-Lived Assets Asset Retirement Obligations Management has concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, management believes that these assets have indeterminate lives under FASB ASC guidance for estimating AROs because dates or ranges of dates upon which we would retire these assets cannot reasonably be estimated at this time. When a legal or contractual obligation to dismantle or remove the refinery and facilities assets arises and a date or range of dates can reasonably be estimated for the retirement of these assets, we will estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using present value techniques. We recorded an ARO liability related to future asset retirement costs associated with dismantling, relocating, or disposing of our offshore platform, pipeline systems, and related onshore facilities, as well as for plugging and abandoning wells and restoring land and sea beds. The cost estimates for each of our assets were developed based upon regulatory requirements, structural makeup, water depth, reservoir characteristics, reservoir depth, equipment demand, current retirement procedures, and construction and engineering consultations. Estimating future costs are difficult and require management to make judgments that are subject to future revisions based upon numerous factors, including changing technology, political, and regulatory environments. We review our assumptions and estimates of future abandonment costs on an annual basis. (See “Note (13) Asset Retirement Obligations” for additional information related to our AROs.) Computation of Earnings Per Share The number of shares related to options, warrants, restricted stock, and similar instruments included in diluted EPS is based on the “Treasury Stock Method” prescribed in FASB ASC guidance for computation of EPS. This method assumes theoretical repurchase of shares using proceeds of the respective stock option or warrant exercised, and, for restricted stock, the amount of compensation cost attributed to future services that has not yet been recognized and the amount of any current and deferred tax benefit that would be credited to additional paid-in-capital upon the vesting of the restricted stock, at a price equal to the issuer’s average stock price during the related earnings period. Accordingly, the number of shares includable in the calculation of EPS in respect of the stock options, warrants, restricted stock, and similar instruments is dependent on this average stock price and will increase as the average stock price increases. (See “Note (17) Earnings Per Share” for additional information related to EPS.) New Pronouncements Adopted ASUs 2019-01, 2018-20, 2018-11, 2018-10, and 2016-02, Leases (Topic 842) ASU 2018-09, Codification Improvements ASU 2014-09, Revenue from Contracts with Customers (ASC 606) Collaborative Arrangements (Topic 808) New Pronouncements Issued, Not Yet Effective ASU 2019-07, Codification Updates to SEC Sections eXtensible Business Reporting Language (“ ASU 2018-17, Consolidation (Topic 810) ASU 2018-05, Income Taxes (Topic 740) Other new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity.

4. Revenue and Segment Informat

4. Revenue and Segment Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Revenue and Segment Information	We have two reportable business segments: (i) Refinery Operations and (ii) Tolling and Terminaling. Refinery operations relate to the refining and marketing of petroleum products at our 15,000-bpd crude distillation tower. Tolling and terminaling operations relate to tolling and storage terminaling services under related-party and third-party lease agreements. Both operations are conducted at the Nixon Facility. Revenue from Contracts with Customers Disaggregation of Revenue Receivables from Contracts with Customers Remaining Performance Obligations Segment Information Three Months Ended June 30, 2019 2018 (in thousands) Segments Segment Refinery Tolling and Corporate Refinery Tolling and Corporate Operations Terminaling & Other Total Operations Terminaling & Other Total Net revenues (excluding intercompany fees and sales) $ 77,257 $ 1,088 $ - $ 78,345 $ 88,265 $ 850 $ - $ 89,115 Intercompany fees and sales (653 ) 653 - - (875 ) 875 - - Operation costs and expenses(1) (78,376 ) (363 ) (56 ) (78,795 ) (85,197 ) (47 ) (134 ) (85,378 ) Segment contribution margin $ (1,772 ) $ 1,378 $ (56 ) $ (450 ) $ 2,193 $ 1,678 $ (134 ) $ 3,737 General and administrative expenses (274 ) (62 ) (243 ) (579 ) (314 ) (62 ) (312 ) (688 ) Depreciation and amortization (483 ) (99 ) (51 ) (633 ) (417 ) (46 ) - (463 ) Interest and other non-operating expenses, net (1,637 ) (750 ) Income (loss) before income taxes (3,299 ) 1,836 Net income (loss) $ (3,299 ) $ 1,836 Capital expenditures $ 371 $ - $ - $ 371 $ 351 $ 340 $ - $ 691 Identifiable assets $ 50,463 $ 18,500 $ 2,186 $ 71,149 $ 54,966 $ 19,317 $ 964 $ 75,247 (1) Operation costs within Refinery Operations includes the arbitration award and associated fees. Operation cost within Tolling and Terminaling includes terminal operating expenses, an allocation of other costs (e.g. insurance and maintenance), and associated refinery fuel use costs. Operation cost within Corporate and Other includes expenses associated with our pipeline assets and oil and gas leasehold interests (such as accretion). Six Months Ended June 30, 2019 2018 (in thousands) Segments Segment Refinery Tolling and Corporate Refinery Tolling and Corporate Operations Terminaling & Other Total Operations Terminaling & Other Total Net revenues (excluding intercompany fees and sales) $ 145,115 $ 2,157 $ - $ 147,272 $ 159,777 $ 1,584 $ - $ 161,361 Intercompany fees and sales (1,259 ) 1,259 - - (1,546 ) 1,546 - - Operation costs and expenses(1) (143,678 ) (727 ) (113 ) (144,518 ) (155,348 ) (388 ) (244 ) (155,980 ) Segment contribution margin $ 178 $ 2,689 $ (113 ) $ 2,754 $ 2,883 $ 2,742 $ (244 ) $ 5,381 General and administrative expenses (606 ) (105 ) (538 ) (1,249 ) (708 ) (104 ) (690 ) (1,502 ) Depreciation and amortization (948 ) (198 ) (77 ) (1,223 ) (826 ) (92 ) - (918 ) Interest and other non-operating expenses, net (2,834 ) (1,493 ) Income (loss) before income taxes (2,552 ) 1,468 Income tax benefit - 217 Net income (loss) $ (2,552 ) $ 1,685 Capital expenditures $ 411 $ 83 $ - $ 494 $ 687 $ 544 $ - $ 1,231 Identifiable assets $ 50,463 $ 18,500 $ 2,186 $ 71,149 $ 54,966 $ 19,317 $ 964 $ 75,247 (1) Operation costs within Refinery Operations includes the arbitration award and associated fees. Operation cost within Tolling and Terminaling includes terminal operating expenses, an allocation of other costs (e.g. insurance and maintenance), and associated refinery fuel use costs. Operation cost within Corporate and Other includes expenses associated with our pipeline assets and oil and gas leasehold interests (such as accretion).

5. NPS Assignment

5. NPS Assignment	6 Months Ended
	Jun. 30, 2019
Term Loan Due 2017 [Member]
NPS Assignment	In June 2018, Blue Dolphin obtained 100% of the issued and outstanding membership interest of NPS from Lazarus Midstream pursuant to an Assignment Agreement. The transaction represents transfer of a vacant shell entity owned by Lazarus Midstream to Blue Dolphin for the nominal fee of $10.00. The assignment of interest facilitated the Lazarus Parties obtaining the Settlement Financing under the Settlement Agreement. The assignment was accounted for as a combination of entities under common control. Accordingly, the recognized assets and liabilities of NPS were transferred at their carrying amounts at the date of transfer and the results of operations are included for the three and six months ended June 30, 2019. NPS did not have significant assets, liabilities or results of operations for the three and six months ended June 30, 2018. NPS holds a leasehold interest in petroleum storage tanks at the Nixon Facility. NPS’ revenues and expenses are included in our Tolling and Terminaling business segment.

6. Prepaid Expenses and Other C

6. Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) Prepaid insurance $ 750 $ 437 Prepaid crude oil and condensate 350 1,166 Prepaid easement renewal fees 132 - Other prepaids 51 183 $ 1,283 $ 1,786

7. Inventory

7. Inventory	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventory	Inventory as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) Crude oil and condensate $ 1,086 $ 861 AGO 463 276 Naphtha 141 143 Chemicals 84 106 Propane 18 17 LPG mix 5 5 HOBM - 102 $ 1,797 $ 1,510

8. Property, Plant and Equipmen

8. Property, Plant and Equipment, Net	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Property, plant and equipment, net, as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) Refinery and facilities $ 66,308 $ 63,058 Land 566 566 Other property and equipment 833 747 67,707 64,371 Less: Accumulated depletion, depreciation, and amortization (11,575 ) (10,429 ) 56,132 53,942 Construction in progress 7,948 10,755 $ 64,080 $ 64,697 We capitalize interest cost incurred on funds used to construct property, plant, and equipment. Capitalized interest, which is recorded as part of the asset to which it relates, is depreciated over the asset’s useful life. Interest cost capitalized, which is currently included in construction in progress, was $0.7 million and $1.3 million at June 30, 2019 and December 31, 2018, respectively. Capital expenditures at the Nixon Facility are being funded by working capital derived from revenue from operations and LEH and its affiliates (including Jonathan Carroll), as well as from long-term debt from Veritex that was secured in 2015 for expansion of the Nixon Facility. Unused amounts under the Veritex loans are reflected in restricted cash (current and non-current portions) on our consolidated balance sheets. See “Note (11) Long-Term Debt and Accrued Interest” for additional disclosures related to borrowings for capital spending.

9. Related Party Transactions

9. Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Parties LEH Ingleside Crude, LLC (“Ingleside”) Lazarus Marine Terminal I, LLC (“LMT”) Jonathan Carroll Currently, we depend on LEH and its affiliates (including Jonathan Carroll and Ingleside) for financing when revenue from operations and borrowings under bank facilities are insufficient to meet our liquidity needs. Such borrowings are reflected in our consolidated balance sheets in accounts payable, related party, and/or long-term debt, related party. Operations Related Agreements . Amended and Restated Operating Agreement Jet Fuel Sales Agreement Dock Tolling Agreement Office Sub-Lease Agreement Financial Agreements . BDPL Loan Agreement ( ) Principal Amount: $4.0 million Maturity Date: August 2018 Principal and Interest Payment: $500,000 annually Interest Rate: 16.00% The proceeds of the BDPL Loan Agreement were used for working capital. There are no financial maintenance covenants associated with the BDPL Loan Agreement. The BDPL Loan Agreement is secured by certain property owned by BDPL. Outstanding principal owed to LEH under the BDPL Loan Agreement is reflected in long-term debt, related party, current portion in our consolidated balance sheets. Accrued interest under the BDPL Loan Agreement is reflected in interest payable, related party, current portion in our consolidated balance sheets. Promissory Notes ( ) ● June LEH Note ● March Ingleside Note ● March Carroll Note Amended and Restated Guaranty Fee Agreements As previously disclosed, the GEL Letter Agreement (and its amendments) and the Settlement Agreement prohibited the Lazarus Parties from making payments to Jonathan Carroll pursuant to the Amended and Restated Guaranty Fee Agreements. Once the Settlement occurs, payment of outstanding amounts owed to Jonathan Carroll under the guaranty fee agreements will be made and regular payments will resume. Jonathan Carroll has received no payments under guaranty fee agreements, either in cash or common stock, since May 2017. Financial Statements Impact Consolidated Balance Sheets Long-term debt, related party, current portion and interest payable, related party, as of the dates indicated was as follows: June 30, December 31, 2019 2018 (in thousands) LEH June LEH Note (in default) $ 736 $ 611 BDPL Loan Agreement (in default) 5,854 5,534 LEH total 6,590 6,145 Ingleside March Ingleside Note (in default) 1,333 1,283 Jonathan Carroll March Carroll Note (in default) 1,515 1,147 9,438 8,575 Less: Long-term debt, related party, current portion, in default (7,584 ) (7,041 ) Less: Interest payable, related party (in default) (1,854 ) (1,534 ) $ - $ - Consolidated Statements of Operations Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except percent amounts) Refinery operations LEH $ 24,173 30.2 % $ 25,549 28.6 % $ 44,982 30.2 % $ 46,116 28.6 % Other customers 53,084 68.3 % 62,716 70.4 % 100,133 68.3 % 113,661 70.4 % Tolling and terminaling Other customers 1,088 1.5 % 850 1.0 % 2,157 1.5 % 1,584 1.0 % $ 78,345 100.0 % $ 89,115 100.0 % $ 147,272 100.0 % $ 161,361 100.0 % Fees associated with the Dock Tolling Agreement with LMT totaled $0.2 million for both three-month periods ended June 30, 2019 and 2018. Fees associated with the Dock Tolling Agreement with LMT totaled $0.4 million for both six-month periods ended June 30, 2019 and 2018. Lease payments received under the office sub-lease agreement with LEH totaled $0.01 million for the three months ended June 30, 2019 and 2018. Lease payments received under the office sub-lease agreement with LEH totaled $0.02 million for the six months ended June 30, 2019 and 2018. The LEH operating fee totaled approximately $0.2 million in both three-month periods ended June 30, 2019 and 2018. For both six-month periods ended June 30, 2019 and 2018, the LEH operating fee totaled approximately $0.3 million. Interest expense associated with the BDPL Loan Agreement, Amended and Restated Guaranty Fee Agreements, and related-party promissory notes (the June LEH Note, the March Ingleside Note, and the March Carroll Note) for the periods indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Jonathan Carroll (in thousands) Guaranty Fee Agreements First Term Loan Due 2034 $ 111 $ 115 $ 223 $ 230 Second Term Loan Due 2034 March Carroll Note (in default) 28 15 53 16 LEH BDPL Loan Agreement (in default) 160 162 320 323 June LEH Note (in default) 16 1 23 - Ingleside March Ingleside Note (in default) 26 24 52 71 $ 387 $ 364 $ 763 $ 734

10. Accrued Expenses and Other

10. Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2019
Other Liabilities, Current [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) Unearned revenue $ 1,023 $ 434 Insurance 382 61 Board of director fees payable 338 273 Property taxes 121 48 Other payable 167 265 Excise and income taxes payable 64 47 Customer deposits 10 109 Easement payable - 223 Accrued rent - 111 $ 2,105 $ 1,571

11. Long-Term Debt and Accrued

11. Long-Term Debt and Accrued Interest	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Long-Term Debt and Accrued Interest	Outstanding Balances Long-term debt, which represents outstanding principal and accrued interest, as of the dates indicated was as follows: June 30, December 31, 2019 2018 (in thousands) First Term Loan Due 2034 (in default) $ 22,365 $ 22,593 Second Term Loan Due 2034 (in default) 9,184 9,353 Notre Dame Debt (in default) 8,219 7,821 Capital lease - 41 $ 39,768 $ 39,808 Less: Current portion of long-term debt, net (34,355 ) (34,863 ) Less: Unamortized debt issue costs (1,942 ) (2,006 ) Less: Interest payable (in default) (3,471 ) (2,939 ) $ - $ - Unamortized debt issue costs related to long-term debt as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) First Term Loan Due 2034 (in default) $ 1,674 $ 1,674 Second Term Loan Due 2034 (in default) 768 768 Less: Accumulated amortization (500 ) (436 ) $ 1,942 $ 2,006 Amortization expense was $0.03 million for the three months ended June 30, 2019 and 2018. Amortization expense was $0.06 million for the six months ended June 30, 2019 and 2018. Accrued interest related to long-term debt, which is reflected as interest payable in our consolidated balance sheets, as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) Notre Dame Debt (in default) $ 3,241 $ 2,843 First Term Loan Due 2034 (in default) 183 43 Second Term Loan Due 2034 (in default) 47 53 3,471 2,939 Less: Interest payable (in default) (3,471 ) (2,939 ) Long-term interest payable, net of current portion $ - $ - USDA-Guaranteed Loans Amended and Restated Guaranty Fee Agreements epayment Defaults in USDA-Guaranteed Loan Agreements In the Veritex Consent, Veritex agreed to waive certain covenant defaults and forbear from enforcing its remedies under the secured loan agreements subject to: (i) the agreement and concurrence of the USDA and (ii) the replenishment of the $1.0 payment reserve account in the amount as required under the First Term Loan Due 2034 on or before August 31, 2019. Any exercise by Veritex of its rights and remedies under the First Term Loan Due 2034 and Second Term Loan Due 2034 would have a material adverse effect on our business, financial condition, and results of operations and would likely require Blue Dolphin to seek protection under bankruptcy laws. (See “Note (1) Organization – Going Concern” and “– Operating Risks” for additional disclosures related to the First Term Loan Due 2034 and Second Term Loan Due 2034, the Final Arbitration Award and financial covenant violations.) Key Terms of Long-Term Debt . First Term Loan Due 2034 (In Default) Principal Amount: $25.0 million Maturity Date: June 2034 Principal and Interest Payment: $0.2 million monthly Interest Rate: Wall Street Journal Prime Rate plus 2.75% A portion of the proceeds of the First Term Loan Due 2034 were used to refinance approximately $8.5 million of debt owed under a previous debt facility with American First National Bank. Remaining proceeds are being used primarily to construct new petroleum storage tanks at the Nixon Facility. The First Term Loan Due 2034, which is 100% USDA-guaranteed, is secured by: (i) a first lien on the Nixon Facility’s business assets (excluding accounts receivable and inventory), (ii) assignment of all Nixon Facility contracts, permits, and licenses, (iii) absolute assignment of Nixon Facility rents and leases, including tank rental income, (iv) a payment reserve account held by Veritex, and (v) a pledge of $5.0 million of a life insurance policy on Jonathan Carroll. The First Term Loan Due 2034 contains representations and warranties, affirmative, restrictive, and financial covenants, as well as events of default which are customary for bank facilities of this type. Pursuant to a construction rider in the First Term Loan Due 2034, proceeds available for use were placed in a disbursement account whereby Veritex makes payments for construction related expenses. Amounts held in the disbursement account are reflected as restricted cash (current portion) and restricted cash, noncurrent in our consolidated balance sheets. Second Term Loan Due 2034 (In Default) Principal Amount: $10.0 million Maturity Date: December 2034 Principal and Interest Payment: $0.1 million monthly Interest Rate: Wall Street Journal Prime Rate plus 2.75% A portion of the proceeds of the Second Term Loan Due 2034 were used to refinance a previous bridge loan from Veritex in the amount of $3.0 million, the funds of which were used to purchase idle refinery equipment for refurbishment and use at the Nixon Facility. Remaining proceeds are being used primarily to construct additional new petroleum storage tanks at the Nixon Facility. The Second Term Loan Due 2034, which is 100% USDA-guaranteed, is secured by: (i) a second priority lien on the rights of LE in the crude distillation tower and the other collateral of LE pursuant to a security agreement; (ii) a first priority lien on the real property interests of LRM; (iii) a first priority lien on all of LRM’s fixtures, furniture, machinery and equipment; (iv) a first priority lien on all of LRM’s contractual rights, general intangibles and instruments, except with respect to LRM’s rights in its leases of certain specified tanks, with respect to which Veritex has a second priority lien in such leases subordinate to a prior lien granted by LRM to Veritex to secure obligations of LRM under a term loan that matured in 2017; and (v) all other collateral as described in the security documents. The Second Term Loan Due 2034 contains representations and warranties, affirmative, restrictive, and financial covenants, as well as events of default which are customary for bank facilities of this type. Pursuant to a construction rider in the Second Term Loan Due 2034, proceeds available for use were placed in a disbursement account whereby Veritex makes payments for construction related expenses. Amounts held in the disbursement account are reflected as restricted cash (current portion) and restricted cash, noncurrent in our consolidated balance sheets. Notre Dame Debt (In Default) Original Principal Amount: $8.0 million Additional Principal: $3.7 million Maturity Date: January 2018 Principal and Interest Payment: None; payment rights subordinated to senior lender Default Interest Rate: 16.00% Pursuant to a Sixth Amendment to the Notre Dame Debt, entered on November 14, 2017 and made effective September 18, 2017, the Notre Dame Debt was amended to increase the principal amount by $3.7 million (the “Additional Principal”). The Additional Principal was used to make payments to GEL to reduce the balance of the Final Arbitration Award in the amount of $3.6 million in accordance with the GEL Letter Agreement. Pursuant to a Subordination Agreement dated June 2015, the holder of the Notre Dame Debt agreed to subordinate its right to payments, as well as any security interest and liens on the Nixon Facility’s business assets, in favor of Veritex as holder of the First Term Loan Due 2034. To date, no payments have been made to Notre Dame Investors, Inc. under the Notre Dame Debt. The Notre Dame Debt is secured by a Deed of Trust, Security Agreement and Financing Statements (the “Subordinated Deed of Trust”), which encumbers the crude distillation tower and general assets of LE. There are no financial maintenance covenants associated with the Notre Dame Debt.

12. Line of Credit Payable

12. Line of Credit Payable	6 Months Ended
	Jun. 30, 2019
Line of Credit Facility [Abstract]
Line of Credit Payable	Line of credit payable consists of a line of credit, guarantee and security agreement between NPS and Pilot (the “Pilot Line of Credit”). NPS and Pilot entered the Pilot Line of Credit on May 3, 2019. The parties to the Pilot Line of Credit subsequently entered into amendments to the Pilot Line of Credit on May 9, 2019 and May 10, 2019. Line of credit payable, which represents outstanding principal and accrued interest, as of the dates indicated was as follows: June 30, December 31, 2019 2018 (in thousands) Pilot Line of Credit $ 12,902 $ - Less: Unamortized debt issue costs (625 ) - Less: Interest payable (102 ) - $ 12,175 $ - Key terms of the Pilot Line of Credit are as follow: Principal Amount: Up to $12.8 million Maturity Date: May 2020 Interest Payment: $0.2 million monthly Interest Rate: 12.00% per annum The Pilot Line of Credit was primarily used to fund the Settlement Payment to GEL. Remaining funds are being used to finance NPS' purchase of crude oil from Pilot pursuant to certain purchase and supply agreements and to provide working capital. The Pilot Line of Credit contains customary affirmative and negative covenants and events of default and is secured by (i) NPS receivables, (ii) NPS assets, including a tank lease (the “Tank Lease”), and (iii) LRM receivables. On May 3, 2019, as an inducement to Pilot’s entry into the Pilot Line of Credit, Blue Dolphin and Pilot entered into a Pledge Agreement (the “Pledge Agreement”) whereby Blue Dolphin pledged its equity interests in NPS to Pilot to secure NPS’ obligations under the Pilot Line of Credit. Blue Dolphin, LE, LRM, and LEH have each guaranteed NPS’ obligations under the Pilot Line of Credit. On May 10, 2019, LE, NPS, Pilot and Veritex entered into a Subordination and Attornment Agreement (the “Subordination Agreement”), providing that, if Veritex in its capacity as a secured lender of LE and LRM were to foreclose on LE property that NPS was leasing from LE pursuant to the Tank Lease, Veritex would permit the performance of obligations under the Tank Lease so long as certain conditions are met. The effectiveness of the Subordination Agreement is subject to certain conditions, including the agreement and concurrence of the USDA.

13. Asset Retirement Obligation

13. Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Refinery and Facilities Pipelines and Facilities and Oil and Gas Properties Due to the length of inactivity of our pipelines and facilities assets, BDPL is required by the Bureau of Ocean Energy Management (“BOEM”) to abandon-in-place certain pipelines and remove an anchor platform in federal waters. BDPL has been in communications with BOEM and the Bureau of Safety and Environmental Enforcement (“BSEE”) related to abandonment operations and associated pipeline financial assurance requirements. Management anticipates performing certain abandonment operations during 2019, however, timing depends on several factors, including resource availability and weather. As of the date of this Quarterly Report, decommissioning work has not yet commenced. Plugging and abandonment costs are recorded during the period incurred or as information becomes available to substantiate actual and/or probable costs. Changes to our ARO liability for the periods indicated were as follows: June 30, December 31, 2019 2018 (in thousands) Asset retirement obligations, at the beginning of the period $ 2,580 $ 2,315 Accretion expense - 265 2,580 2,580 Less: asset retirement obligations, current portion (2,580 ) (2,580 ) Long-term asset retirement obligations, at the end of the period $ - $ -

14. Concentration of Risk

14. Concentration of Risk	6 Months Ended
	Jun. 30, 2019
Risks and Uncertainties [Abstract]
Concentration of Risk	Bank Accounts Key Supplier Significant Customers For the three months ended June 30, 2019, we had 4 customers that accounted for approximately 98.7% of our refined petroleum product sales. LEH, a related party, was 1 of these 4 significant customers and accounted for approximately 31.3% of our refined petroleum product sales. At June 30, 2019, these 4 customers represented approximately $0.6 million in accounts receivable. LEH represented approximately $0.5 million in accounts receivable. LEH purchases our jet fuel and resells the jet fuel to a government agency. LEH bids for jet fuel contracts are evaluated under preferential pricing terms due to its HUBZone certification. (See “Note (9) Related-Party Transactions,” “Note (11) Long-Term Debt and Accrued Interest,” and “Note (18) Commitments and Contingencies – Financing Agreements” for additional disclosures related to LEH.) For the six months ended June 30, 2019, we had 4 customers that accounted for approximately 98.0% of our refined petroleum product sales. LEH was 1 of these 4 significant customers and accounted for approximately 31.0% of our refined petroleum product sales. At June 30, 2019, these 4 customers represented approximately $0.6 million in accounts receivable. LEH represented approximately $0.5 million in accounts receivable. For the three months ended June 30, 2018, we had 5 customers that accounted for approximately 96.7% of refinery operations revenue. LEH was 1 of these 5 significant customers and accounted for approximately 28.9% of refinery operations revenue. At June 30, 2018, these 5 customers represented approximately $0.7 million in accounts receivable. LEH represented approximately $0 in accounts receivable. For the six months ended June 30, 2018, we had 4 customers that accounted for approximately 86.8% of our refined petroleum product sales. LEH was 1 of these 4 significant customers and accounted for approximately 28.9% of our refined petroleum product sales. At June 30, 2018, these 4 customers represented approximately $0.7 million in accounts receivable. LEH represented approximately $0 in accounts receivable. Refined Petroleum Product Sales Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except percent amounts) LPG mix $ 1 0.0 % $ - 0.0 % $ 9 0.0 % $ 3 0.0 % Naphtha 15,416 20.3 % 23,648 26.8 % 29,211 20.1 % 39,966 25.0 % Jet fuel 24,173 30.7 % 25,549 28.9 % 44,982 31.0 % 46,116 28.9 % HOBM 16,747 23.8 % 22,430 25.4 % 32,907 22.7 % 38,859 24.3 % AGO 20,920 25.2 % 16,638 18.9 % 38,006 26.2 % 34,833 21.8 % $ 77,257 100.0 % $ 88,265 100.0 % $ 145,115 100.0 % $ 159,777 100.0 %

15. Leases

15. Leases	6 Months Ended
	Jun. 30, 2019
Leases, Operating [Abstract]
Leases	We adopted the new lease accounting guidance using the modified retrospective method and applied it to all leases based on the contract terms in effect as of January 1, 2019. For existing contracts, we carried forward our historical assessment of: (i) whether contracts are or contain leases, (ii) lease classification, and (iii) initial direct costs. As of June 30, 2019, leases were as follow: ● Office Lease (Operating Lease) ● Crane (Finance Lease) ● Backhoe Rent-to-Own Agreement (Finance Lease). For leases with terms greater than 12 months, including renewal options when appropriate, we record the related right-of-use asset and lease liability as the present value of the fixed lease payments over the lease term. Since the leases do not provide a readily-determinable discount rate, we use the incremental borrowing rate to discount lease payments to present value. The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: Classification on Consolidated Balance Sheet June 30, 2019 (in thousands) Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 787 Less: Accumulated amortization on operating lease assets Operating lease right-of-use assets (67 ) 720 Finance lease assets Property and equipment, net 180 Less: Accumulated amortization on finance lease assets Property and equipment, net (21 ) 159 Total lease assets $ 879 Liabilities Current Operating lease Current portion of lease liabilities $ 167 Finance leases Current portion of lease liabilities 104 271 Noncurrent Operating lease Long-term lease liabilities, net of current 654 Total lease liabilities $ 925 Weighted average remaining lease term in years Operating lease 4.17 Finance leases 0.80 Weighted average discount rate Operating lease 8.25% Finance leases 8.25% The following table presents information related to lease costs for finance and operating leases: Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (in thousands) Operating lese costs $ 51 $ 77 Finance lease costs: Depreciation of leased assets 4 8 Interest on lease liabilities 1 2 Total lease cost 56 $ 87 The table below presents supplemental cash flow information related to leases as follows: Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 40 $ 96 Operating cash flows for finance leases 1 2 Financing cash flows for finance leases 10 21 As of June 30, 2019, maturities of lease liabilities for the periods indicated were as follows: Operating Lease Financing Leases Total (in thousands) 2019 $ 82 $ 31 $ 113 2020 175 73 248 2021 194 - 194 2022 215 - 215 2023 155 - 155 $ 821 $ 104 $ 925 As of June 30, 2019, our future minimum annual lease commitments that are non-cancelable for the periods indicated are as follow: Operating Lease (in thousands) 2019 $ 114 2020 230 2021 233 2022 237 2023 161 $ 975

16. Income Taxes

16. Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	The provision for income tax benefit for the periods indicated as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Current Federal $ - $ - $ - $ 108 State - - - - Deferred Change in valuation allowance - - - 109 Total provision for income taxes $ - $ - $ - $ 217 The state of Texas has a Texas margins tax (“TMT”), which is a form of business tax imposed on gross margin. Although TMT is imposed on an entity’s gross profit rather than on its net income, certain aspects of TMT make it like an income tax. Accordingly, TMT is treated as an income tax for financial reporting purposes. Effective Tax Rate Deferred income taxes as of the dates indicated consisted of the following: June 30, December 31, 2019 2018 (in thousands) Deferred tax assets: Net operating loss and capital loss carryforwards $ 13,365 $ 11,260 Accrued arbitration award payable 1,256 2,850 Business interest expense 1,299 704 Start-up costs (crude oil and condensate processing facility) 636 678 Asset retirement obligations liability/deferred revenue 541 542 AMT credit and other 50 108 Total deferred tax assets 17,147 16,142 Deferred tax liabilities: Basis differences in property and equipment (5,564 ) (5,153 ) Total deferred tax liabilities (5,564 ) (5,153 ) 11,583 10,989 Valuation allowance (11,533 ) (10,881 ) Deferred tax assets, net $ 50 $ 108 Deferred Income Taxes NOL Carryforwards NOL carryforwards that remained available for future use for the periods indicated were as follow (amounts shown are net of NOLs that will expire unused because of the IRC Section 382 limitation): Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total (in thousands) Balance at December 31, 2017 $ 9,614 $ 30,219 $ 39,833 Net operating losses - 7,116 7,116 Balance at December 31, 2018 $ 9,614 $ 37,335 $ 46,949 Net operating losses - 10,021 10,021 Balance at June 30, 2019 $ 9,614 $ 47,356 $ 56,970 Valuation Allowance

17. Earnings Per Share

17. Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnings Per Share	A reconciliation between basic and diluted income per share for the periods indicated was as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except share and per share amounts) Net income (loss) $ (3,299 ) $ 1,836 $ (2,552 ) $ 1,685 Basic and diluted loss per share $ (0.30 ) $ 0.17 $ (0.23 ) $ 0.15 Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 10,975,514 10,925,513 10,975,514 10,925,513 Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding. Diluted EPS for three and six months ended June 30, 2019 and 2018 was the same as basic EPS as there were no stock options or other dilutive instruments outstanding.

18. Commitments and Contingenci

18. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal Matters Final Arbitration Award and Settlement Agreement Veritex Secured Loan Agreement Events of Default Other Legal Matters Amended and Restated Operating Agreement Financing Agreements Guarantees Health, Safety and Environmental Matters Nixon Facility Expansion Supplemental Pipeline Bonds BDPL has been in discussions with BOEM to resolve the Separate Orders and the June 2018 INCs. There can be no assurance that BOEM will: (i) accept a proposal for a reduced amount of supplemental financial assurance, (ii) not require additional supplemental pipeline bonds related to BDPL’s existing pipeline rights-of-way, and/or (iii) not impose penalties under the June 2018 INCs. As a result, we are unable to predict the outcome of the Separate Orders, the settlement discussions with BOEM or their ultimate impact, if any, on our business, financial condition or results of operations. Accordingly, we have not recorded a liability on our consolidated balance sheet as of June 30, 2019. As of June 30, 2019 and December 31, 2018, BDPL maintained approximately $0.9 million in credit and cash-backed pipeline rights-of-way bonds issued to the BOEM. If BDPL is required by BOEM to provide significant additional supplemental bonds or acceptable financial assurance or is assessed significant penalties under the June 2018 INCs, we will experience a significant and material adverse effect on our operations, liquidity, and financial condition. Idle Iron In a letter dated December 19, 2018, BSEE issued to BDPL an INC for its failure to flush and fill Segment #13101 (the “December 2018 INC”) pursuant to the pipeline decommissioning approval letter issued in March 2017. BSEE asserts that the December 2018 INC authorizes BSEE to impose financial penalties on BDPL if it does not comply with the December 2018 INC within ten (10) days. As of the date of this Quarterly Report, flushing of the pipeline segment has not yet commenced and decommission work has not yet begun. Management anticipates performing certain abandonment operations during 2019, however, timing depends several factors, including resource availability and weather. BDPL has been in discussions with BSEE to resolve the December 2018 INC. There can be no assurance that BSEE will not impose penalties under the December 2018 INC. As a result, we are unable to predict BOEM’s response or the ultimate impact, if any, on our business, financial condition or results of operations. Accordingly, we have not recorded a liability on our consolidated balance sheet as of June 30, 2019. As of June 30, 2019, BDPL maintained $2.6 million in asset retirement obligations related to abandonment of these assets. If BDPL is assessed significant penalties under the December 2018 INC, we will experience a significant and material adverse effect on our operations, liquidity, and financial condition.

3. Significant Accounting Pol_2

3. Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents
Restricted Cash	Restricted Cash
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts
Inventory	Inventory
Property and Equipment	Property and Equipment Refinery and Facilities We record refinery and facilities at cost less any adjustments for depreciation or impairment. Adjustment of the asset and the related accumulated depreciation accounts are made for the refinery and facilities asset’s retirement and disposal, with the resulting gain or loss included in the consolidated statements of operations. For financial reporting purposes, depreciation of refinery and facilities assets is computed using the straight-line method using an estimated useful life of 25 years beginning when the refinery and facilities assets are placed in service. We did not record any impairment of our refinery and facilities assets for the periods presented. Pipelines and Facilities Oil and Gas Properties Construction in Progress (See “Note (8) Property, Plant and Equipment, Net” for additional disclosures related to our refinery and facilities assets, oil and gas properties, pipelines and facilities assets, and construction in progress.)
Revenue Recognition	Revenue Recognition Revenue from Contracts with Customers (ASC 606) Refinery Operations Revenue We consider a variety of facts and circumstances in assessing the point of control transfer, including but not limited to: whether the purchaser can direct the use of the refined petroleum product, the transfer of significant risks and rewards, our rights to payment, and transfer of legal title. In each case, the term between the sale and when payment is due is not significant. Transportation, shipping, and handling costs incurred are included in cost of goods sold. Excise and other taxes that are collected from customers and remitted to governmental authorities are not included in revenue. Tolling and Terminaling Revenue We typically satisfy performance obligations for tolling and terminaling operations with the passage of time. We determine the transaction price at agreement inception based on the guaranteed minimum amount of revenue over the term of the agreement. We allocate the transaction price to the single performance obligation that exists under the agreement, and we recognize revenue in the amount for which we have a right to invoice. Generally, payment terms do not exceed 30 days. Revenue from tank storage customers may, from time to time, include fees for ancillary services, such as in-tank and tank-to-tank blending. These services are considered optional to the customer, and the price we charge for such services is not included in the fixed cost under the customer’s tank storage agreement. Ancillary services are considered a separate performance obligation by us under the tank storage agreement. The performance obligation is satisfied when the requested service has been performed in the applicable period.
Income Taxes	Income Taxes As of each reporting date, management considers new evidence, both positive and negative, to determine the realizability of deferred tax assets. Management considers whether it is more likely than not that a portion or all of the deferred tax assets will be realized, which is dependent upon the generation of future taxable income prior to the expiration of any net operating loss (“NOL”) carryforwards. When management determines that it is more likely than not that a tax benefit will not be realized, a valuation allowance is recorded to reduce deferred tax assets. A significant piece of objective negative evidence evaluated was cumulative losses incurred over the three-year period ended December 31, 2018. Such objective evidence limits the ability to consider other subjective evidence, such as projections for future growth. Based on this evaluation, we recorded a valuation allowance against the deferred tax assets for which realization was not deemed more likely than not as of June 30, 2019 and December 31, 2018. We expect to recover deferred tax assets related to the Alternative Minimum Tax (“AMT”) credit carryforwards. In addition, we have NOL carryforwards that remain available for future use. The benefit of an uncertain tax position is recognized in the financial statements if it meets a minimum recognition threshold. A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities. If the income tax position is expected to meet the more-likely-than-not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement. At June 30, 2019 and December 31, 2018, there were no uncertain tax positions for which a reserve or liability was necessary. (See “Note (16) Income Taxes” for further information related to income taxes.)
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets
Asset Retirement Obligations	Asset Retirement Obligations Management has concluded that there is no legal or contractual obligation to dismantle or remove the refinery and facilities assets. Further, management believes that these assets have indeterminate lives under FASB ASC guidance for estimating AROs because dates or ranges of dates upon which we would retire these assets cannot reasonably be estimated at this time. When a legal or contractual obligation to dismantle or remove the refinery and facilities assets arises and a date or range of dates can reasonably be estimated for the retirement of these assets, we will estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using present value techniques. We recorded an ARO liability related to future asset retirement costs associated with dismantling, relocating, or disposing of our offshore platform, pipeline systems, and related onshore facilities, as well as for plugging and abandoning wells and restoring land and sea beds. The cost estimates for each of our assets were developed based upon regulatory requirements, structural makeup, water depth, reservoir characteristics, reservoir depth, equipment demand, current retirement procedures, and construction and engineering consultations. Estimating future costs are difficult and require management to make judgments that are subject to future revisions based upon numerous factors, including changing technology, political, and regulatory environments. We review our assumptions and estimates of future abandonment costs on an annual basis. (See “Note (13) Asset Retirement Obligations” for additional information related to our AROs.)
Computation of Earnings Per Share	Computation of Earnings Per Share The number of shares related to options, warrants, restricted stock, and similar instruments included in diluted EPS is based on the “Treasury Stock Method” prescribed in FASB ASC guidance for computation of EPS. This method assumes theoretical repurchase of shares using proceeds of the respective stock option or warrant exercised, and, for restricted stock, the amount of compensation cost attributed to future services that has not yet been recognized and the amount of any current and deferred tax benefit that would be credited to additional paid-in-capital upon the vesting of the restricted stock, at a price equal to the issuer’s average stock price during the related earnings period. Accordingly, the number of shares includable in the calculation of EPS in respect of the stock options, warrants, restricted stock, and similar instruments is dependent on this average stock price and will increase as the average stock price increases. (See “Note (17) Earnings Per Share” for additional information related to EPS.)
New Pronouncements	New Pronouncements Adopted ASUs 2019-01, 2018-20, 2018-11, 2018-10, and 2016-02, Leases (Topic 842) ASU 2018-09, Codification Improvements ASU 2014-09, Revenue from Contracts with Customers (ASC 606) Collaborative Arrangements (Topic 808) New Pronouncements Issued, Not Yet Effective ASU 2019-07, Codification Updates to SEC Sections eXtensible Business Reporting Language (“ ASU 2018-17, Consolidation (Topic 810) ASU 2018-05, Income Taxes (Topic 740) Other new pronouncements issued but not yet effective are not expected to have a material impact on our financial position, results of operations, or liquidity.

1. Organization (Tables)

1. Organization (Tables)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Amounts from the Lazarus Parties toward reducing the outstanding balance of the Final Arbitration Award	(in millions) Initial payment (September 2017) $ 3.7 Interim Payments (July 2018 to April 2019) 8.0 Settlement Payment (May 2019) 10.0 Deferred Interim Installment Payments (June 2019 to July 2019) 0.2 $ 21.9

4. Revenue and Segment Inform_2

4. Revenue and Segment Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Business segment reporting	Three Months Ended June 30, 2019 2018 (in thousands) Segments Segment Refinery Tolling and Corporate Refinery Tolling and Corporate Operations Terminaling & Other Total Operations Terminaling & Other Total Net revenues (excluding intercompany fees and sales) $ 77,257 $ 1,088 $ - $ 78,345 $ 88,265 $ 850 $ - $ 89,115 Intercompany fees and sales (653 ) 653 - - (875 ) 875 - - Operation costs and expenses(1) (78,376 ) (363 ) (56 ) (78,795 ) (85,197 ) (47 ) (134 ) (85,378 ) Segment contribution margin $ (1,772 ) $ 1,378 $ (56 ) $ (450 ) $ 2,193 $ 1,678 $ (134 ) $ 3,737 General and administrative expenses (274 ) (62 ) (243 ) (579 ) (314 ) (62 ) (312 ) (688 ) Depreciation and amortization (483 ) (99 ) (51 ) (633 ) (417 ) (46 ) - (463 ) Interest and other non-operating expenses, net (1,637 ) (750 ) Income (loss) before income taxes (3,299 ) 1,836 Net income (loss) $ (3,299 ) $ 1,836 Capital expenditures $ 371 $ - $ - $ 371 $ 351 $ 340 $ - $ 691 Identifiable assets $ 50,463 $ 18,500 $ 2,186 $ 71,149 $ 54,966 $ 19,317 $ 964 $ 75,247 (1) Operation costs within Refinery Operations includes the arbitration award and associated fees. Operation cost within Tolling and Terminaling includes terminal operating expenses, an allocation of other costs (e.g. insurance and maintenance), and associated refinery fuel use costs. Operation cost within Corporate and Other includes expenses associated with our pipeline assets and oil and gas leasehold interests (such as accretion). Six Months Ended June 30, 2019 2018 (in thousands) Segments Segment Refinery Tolling and Corporate Refinery Tolling and Corporate Operations Terminaling & Other Total Operations Terminaling & Other Total Net revenues (excluding intercompany fees and sales) $ 145,115 $ 2,157 $ - $ 147,272 $ 159,777 $ 1,584 $ - $ 161,361 Intercompany fees and sales (1,259 ) 1,259 - - (1,546 ) 1,546 - - Operation costs and expenses(1) (143,678 ) (727 ) (113 ) (144,518 ) (155,348 ) (388 ) (244 ) (155,980 ) Segment contribution margin $ 178 $ 2,689 $ (113 ) $ 2,754 $ 2,883 $ 2,742 $ (244 ) $ 5,381 General and administrative expenses (606 ) (105 ) (538 ) (1,249 ) (708 ) (104 ) (690 ) (1,502 ) Depreciation and amortization (948 ) (198 ) (77 ) (1,223 ) (826 ) (92 ) - (918 ) Interest and other non-operating expenses, net (2,834 ) (1,493 ) Income (loss) before income taxes (2,552 ) 1,468 Income tax benefit - 217 Net income (loss) $ (2,552 ) $ 1,685 Capital expenditures $ 411 $ 83 $ - $ 494 $ 687 $ 544 $ - $ 1,231 Identifiable assets $ 50,463 $ 18,500 $ 2,186 $ 71,149 $ 54,966 $ 19,317 $ 964 $ 75,247 (1) Operation costs within Refinery Operations includes the arbitration award and associated fees. Operation cost within Tolling and Terminaling includes terminal operating expenses, an allocation of other costs (e.g. insurance and maintenance), and associated refinery fuel use costs. Operation cost within Corporate and Other includes expenses associated with our pipeline assets and oil and gas leasehold interests (such as accretion).

6. Prepaid Expenses and Other_2

6. Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid balances	June 30, December 31, 2019 2018 (in thousands) Prepaid insurance $ 750 $ 437 Prepaid crude oil and condensate 350 1,166 Prepaid easement renewal fees 132 - Other prepaids 51 183 $ 1,283 $ 1,786

7. Inventory (Tables)

7. Inventory (Tables)	6 Months Ended
	Jun. 30, 2019
Inventory Disclosure [Abstract]
Inventory	June 30, December 31, 2019 2018 (in thousands) Crude oil and condensate $ 1,086 $ 861 AGO 463 276 Naphtha 141 143 Chemicals 84 106 Propane 18 17 LPG mix 5 5 HOBM - 102 $ 1,797 $ 1,510

8. Property, Plant and Equipm_2

8. Property, Plant and Equipment, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Property and equipment	June 30, December 31, 2019 2018 (in thousands) Refinery and facilities $ 66,308 $ 63,058 Land 566 566 Other property and equipment 833 747 67,707 64,371 Less: Accumulated depletion, depreciation, and amortization (11,575 ) (10,429 ) 56,132 53,942 Construction in progress 7,948 10,755 $ 64,080 $ 64,697

9. Related Party Transactions (

9. Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Related Party Transactions [Abstract]
Accounts payable, related party	June 30, December 31, 2019 2018 (in thousands) LEH June LEH Note (in default) $ 736 $ 611 BDPL Loan Agreement (in default) 5,854 5,534 LEH total 6,590 6,145 Ingleside March Ingleside Note (in default) 1,333 1,283 Jonathan Carroll March Carroll Note (in default) 1,515 1,147 9,438 8,575 Less: Long-term debt, related party, current portion, in default (7,584 ) (7,041 ) Less: Interest payable, related party (in default) (1,854 ) (1,534 ) $ - $ -
Refinery operating expenses	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except percent amounts) Refinery operations LEH $ 24,173 30.2 % $ 25,549 28.6 % $ 44,982 30.2 % $ 46,116 28.6 % Other customers 53,084 68.3 % 62,716 70.4 % 100,133 68.3 % 113,661 70.4 % Tolling and terminaling Other customers 1,088 1.5 % 850 1.0 % 2,157 1.5 % 1,584 1.0 % $ 78,345 100.0 % $ 89,115 100.0 % $ 147,272 100.0 % $ 161,361 100.0 %
Accrued interest expenses	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Jonathan Carroll (in thousands) Guaranty Fee Agreements First Term Loan Due 2034 $ 111 $ 115 $ 223 $ 230 Second Term Loan Due 2034 March Carroll Note (in default) 28 15 53 16 LEH BDPL Loan Agreement (in default) 160 162 320 323 June LEH Note (in default) 16 1 23 - Ingleside March Ingleside Note (in default) 26 24 52 71 $ 387 $ 364 $ 763 $ 734

10. Accrued Expenses and Othe_2

10. Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Other Liabilities, Current [Abstract]
Accrued expenses and other current liabilities	June 30, December 31, 2019 2018 (in thousands) Unearned revenue $ 1,023 $ 434 Insurance 382 61 Board of director fees payable 338 273 Property taxes 121 48 Other payable 167 265 Excise and income taxes payable 64 47 Customer deposits 10 109 Easement payable - 223 Accrued rent - 111 $ 2,105 $ 1,571

11. Long-Term Debt and Accrue_2

11. Long-Term Debt and Accrued Interest (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of long term debt	June 30, December 31, 2019 2018 (in thousands) First Term Loan Due 2034 (in default) $ 22,365 $ 22,593 Second Term Loan Due 2034 (in default) 9,184 9,353 Notre Dame Debt (in default) 8,219 7,821 Capital lease - 41 $ 39,768 $ 39,808 Less: Current portion of long-term debt, net (34,355 ) (34,863 ) Less: Unamortized debt issue costs (1,942 ) (2,006 ) Less: Interest payable (in default) (3,471 ) (2,939 ) $ - $ -
Schedule of debt issue costs	June 30, December 31, 2019 2018 (in thousands) First Term Loan Due 2034 (in default) $ 1,674 $ 1,674 Second Term Loan Due 2034 (in default) 768 768 Less: Accumulated amortization (500 ) (436 ) $ 1,942 $ 2,006
Accrued interest related to our long-term debt, net	June 30, December 31, 2019 2018 (in thousands) Notre Dame Debt (in default) $ 3,241 $ 2,843 First Term Loan Due 2034 (in default) 183 43 Second Term Loan Due 2034 (in default) 47 53 3,471 2,939 Less: Interest payable (in default) (3,471 ) (2,939 ) Long-term interest payable, net of current portion $ - $ -

12. Line of Credit Payable (Tab

12. Line of Credit Payable (Tables)	6 Months Ended
	Jun. 30, 2019
Line of Credit Facility [Abstract]
Line of credit	June 30, December 31, 2019 2018 (in thousands) Pilot Line of Credit $ 12,902 $ - Less: Unamortized debt issue costs (625 ) - Less: Interest payable (102 ) - $ 12,175 $ -

13. Asset Retirement Obligati_2

13. Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	June 30, December 31, 2019 2018 (in thousands) Asset retirement obligations, at the beginning of the period $ 2,580 $ 2,315 Accretion expense - 265 2,580 2,580 Less: asset retirement obligations, current portion (2,580 ) (2,580 ) Long-term asset retirement obligations, at the end of the period $ - $ -

14. Concentration of Risk (Tabl

14. Concentration of Risk (Tables)	6 Months Ended
	Jun. 30, 2019
Risks and Uncertainties [Abstract]
Percentages of all refined petroleum products sales to total sales	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except percent amounts) LPG mix $ 1 0.0 % $ - 0.0 % $ 9 0.0 % $ 3 0.0 % Naphtha 15,416 20.3 % 23,648 26.8 % 29,211 20.1 % 39,966 25.0 % Jet fuel 24,173 30.7 % 25,549 28.9 % 44,982 31.0 % 46,116 28.9 % HOBM 16,747 23.8 % 22,430 25.4 % 32,907 22.7 % 38,859 24.3 % AGO 20,920 25.2 % 16,638 18.9 % 38,006 26.2 % 34,833 21.8 % $ 77,257 100.0 % $ 88,265 100.0 % $ 145,115 100.0 % $ 159,777 100.0 %

15. Leases (Tables)

15. Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of leases	Classification on Consolidated Balance Sheet June 30, 2019 (in thousands) Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 787 Less: Accumulated amortization on operating lease assets Operating lease right-of-use assets (67 ) 720 Finance lease assets Property and equipment, net 180 Less: Accumulated amortization on finance lease assets Property and equipment, net (21 ) 159 Total lease assets $ 879 Liabilities Current Operating lease Current portion of lease liabilities $ 167 Finance leases Current portion of lease liabilities 104 271 Noncurrent Operating lease Long-term lease liabilities, net of current 654 Total lease liabilities $ 925 Weighted average remaining lease term in years Operating lease 4.17 Finance leases 0.80 Weighted average discount rate Operating lease 8.25% Finance leases 8.25%
Lease costs	Three Months Ended Six Months Ended June 30, June 30, 2019 2019 (in thousands) Operating lese costs $ 51 $ 77 Finance lease costs: Depreciation of leased assets 4 8 Interest on lease liabilities 1 2 Total lease cost 56 $ 87
Supplemental cash flow information related to leases	Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating lease $ 40 $ 96 Operating cash flows for finance leases 1 2 Financing cash flows for finance leases 10 21
Maturities of operating lease liabilities	Operating Lease Financing Leases Total (in thousands) 2019 $ 82 $ 31 $ 113 2020 175 73 248 2021 194 - 194 2022 215 - 215 2023 155 - 155 $ 821 $ 104 $ 925
Future minimum annual lease commitments	Operating Lease (in thousands) 2019 $ 114 2020 230 2021 233 2022 237 2023 161 $ 975

16. Income Taxes (Tables)

16. Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Current Federal $ - $ - $ - $ 108 State - - - - Deferred Change in valuation allowance - - - 109 Total provision for income taxes $ - $ - $ - $ 217
Deferred tax assets and deferred tax liabilities	June 30, December 31, 2019 2018 (in thousands) Deferred tax assets: Net operating loss and capital loss carryforwards $ 13,365 $ 11,260 Accrued arbitration award payable 1,256 2,850 Business interest expense 1,299 704 Start-up costs (crude oil and condensate processing facility) 636 678 Asset retirement obligations liability/deferred revenue 541 542 AMT credit and other 50 108 Total deferred tax assets 17,147 16,142 Deferred tax liabilities: Basis differences in property and equipment (5,564 ) (5,153 ) Total deferred tax liabilities (5,564 ) (5,153 ) 11,583 10,989 Valuation allowance (11,533 ) (10,881 ) Deferred tax assets, net $ 50 $ 108
NOL carryforwards	Net Operating Loss Carryforward Pre-Ownership Change Post-Ownership Change Total (in thousands) Balance at December 31, 2017 $ 9,614 $ 30,219 $ 39,833 Net operating losses - 7,116 7,116 Balance at December 31, 2018 $ 9,614 $ 37,335 $ 46,949 Net operating losses - 10,021 10,021 Balance at June 30, 2019 $ 9,614 $ 47,356 $ 56,970

17. Earnings Per Share (Tables)

17. Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands, except share and per share amounts) Net income (loss) $ (3,299 ) $ 1,836 $ (2,552 ) $ 1,685 Basic and diluted loss per share $ (0.30 ) $ 0.17 $ (0.23 ) $ 0.15 Basic and Diluted Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock 10,975,514 10,925,513 10,975,514 10,925,513

1. Organization (Details)

1. Organization (Details) $ in Thousands	Jun. 30, 2019USD ($)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	$ 21,900
Initial payment (September 2017)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	3,700
Interim Payments (July 2018 to April 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	8,000
Settlement Payment (May 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	10,000
Deferred Interim Installment Payments (June 2019 to July 2019)
Amounts received to reduce the outstanding balance of the Final Arbitration Award	$ 200

1. Organization (Details Narrat

1. Organization (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ (3,299)	$ 1,836	$ (2,552)	$ 1,685
Net loss per common share	$ (0.30)	$ 0.17	$ (0.23)	$ 0.15

3. Significant Accounting Pol_3

3. Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 100	$ 100

4. Business Segment Information

4. Business Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net revenues (excluding intercompany fees and sales)	$ 78,345	$ 89,115	$ 147,272	$ 161,361
General and administrative expenses	579	688	1,249	1,348
Net income (loss)	(3,299)	1,836	(2,552)	1,685
Refinery Operations [Member]
Net revenues (excluding intercompany fees and sales)	77,257	88,265	145,115	159,777
Intercompany fees and sales	(653)	(875)	(1,259)	(1,546)
Operation costs and expenses	(78,376)	(85,197)	(143,678)	(155,348)
Segment contribution margin	(1,772)	2,193	178	2,883
General and administrative expenses	(274)	(314)	(606)	(708)
Depreciation and amortization	(483)	(417)	(948)	(826)
Capital expenditures	371	351	411	687
Identifiable assets	50,463	54,966	50,463	54,966
Tolling and Terminaling [Member]
Net revenues (excluding intercompany fees and sales)	1,088	850	2,157	1,584
Intercompany fees and sales	653	875	1,259	1,546
Operation costs and expenses	(363)	(47)	(727)	(388)
Segment contribution margin	1,378	1,678	2,689	2,742
General and administrative expenses	(62)	(62)	(105)	(104)
Depreciation and amortization	(99)	(46)	(198)	(92)
Capital expenditures	0	340	83	544
Identifiable assets	18,500	19,317	18,500	19,317
Corporate & Other [Member]
Net revenues (excluding intercompany fees and sales)	0	0	0	0
Intercompany fees and sales	0	0	0	0
Operation costs and expenses	(56)	(134)	(113)	(244)
Segment contribution margin	(56)	(134)	(113)	(244)
General and administrative expenses	(243)	(312)	(538)	(690)
Depreciation and amortization	(51)	0	(77)	0
Capital expenditures	0	0	0	0
Identifiable assets	2,186	964	2,186	964
Total
Net revenues (excluding intercompany fees and sales)	78,345	89,115	147,272	161,361
Intercompany fees and sales	0	0	0	0
Operation costs and expenses	(78,795)	(85,378)	(144,518)	(155,980)
Segment contribution margin	(450)	3,737	2,754	5,381
General and administrative expenses	(579)	(688)	(1,249)	(1,502)
Depreciation and amortization	(633)	(463)	(1,223)	(918)
Interest and other non-operating income (expenses)	(1,637)	(750)	(2,834)	(1,493)
Income (loss) before income taxes	(3,299)	1,836	(2,552)	1,468
Income tax benefit			0	217
Net income (loss)	(3,299)	1,836	(2,552)	1,685
Capital expenditures	371	691	494	1,231
Identifiable assets	$ 71,149	$ 75,247	$ 71,149	$ 75,247

6. Prepaid Expenses and Other_3

6. Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 750	$ 437
Prepaid crude oil and condensate	350	1,166
Prepaid easement renewal fees	132	0
Other prepaids	51	183
Prepaid expenses, net	$ 1,283	$ 1,786

7. Inventory (Details)

7. Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Crude oil and condensate	$ 1,086	$ 861
AGO	463	276
Naphtha	141	143
Chemicals	84	106
Propane	18	17
LPG mix	5	5
HOBM	0	102
Inventories, net	$ 1,797	$ 1,510

8. Property, Plant and Equipm_3

8. Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Refinery and facilities	$ 66,308	$ 63,058
Land	566	566
Other property and equipment	833	747
Property, Plant and Equipment, gross	67,707	64,371
Less: Accumulated depletion, depreciation and amortization	(11,575)	(10,429)
Property, plant and equipment, gross	56,132	53,942
Construction in progress	7,948	10,755
Property, plant and equipment, net	$ 64,080	$ 64,697

8. Property, Plant and Equipm_4

8. Property, Plant and Equipment, Net (Details Narrative) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Interest cost capitalized	$ 700	$ 1,300

9. Related Party Transactions_2

9. Related Party Transactions (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Prepaid operating expenses, related party	$ 9,438	$ 8,575
Less: Long-term debt, related party, current portion, in default	(7,584)	(7,041)
Less: Interest payable, related party, in default	(1,854)	(1,534)
Long-term debt - net of current portion, related party	0	0
LEH [Member]
Prepaid operating expenses, related party	6,590	6,145
LEH [Member] | June LEH Note [Member]
Prepaid operating expenses, related party	736	611
LEH [Member] | BDPL Loan Agreement [Member]
Prepaid operating expenses, related party	5,854	5,534
Ingleside [Member] | March Ingleside Note [Member]
Prepaid operating expenses, related party	1,333	1,283
Jonathan Carroll [Member] | March Carroll Note [Member]
Prepaid operating expenses, related party	$ 1,515	$ 1,147

9. Related Party Transactions_3

9. Related Party Transactions (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Tolling and terminaling revenues	$ 1,088	$ 850	$ 2,157	$ 1,584
Total revenues	$ 78,345	$ 89,115	$ 147,272	$ 161,361
Tolling and terminaling revenues, percent	1.50%	1.00%	1.50%	1.00%
Total revenues, percent	100.00%	100.00%	100.00%	100.00%
LEH [Member]
Refinery operations revenues	$ 24,173	$ 25,549	$ 44,982	$ 46,116
Refinery operations revenues, percent	30.20%	28.60%	30.20%	28.60%
Other Customers [Member]
Refinery operations revenues	$ 53,084	$ 62,716	$ 100,133	$ 113,661
Refinery operations revenues, percent	68.30%	70.40%	68.30%	70.40%

9. Related Party Transactions_4

9. Related Party Transactions (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest expenses under loan and guarantee, related party	$ 387	$ 364	$ 763	$ 734
Jonathan Carroll [Member] | Guaranty Fee Agreements [Member]
Interest expenses under loan and guarantee, related party	111	115	223	230
Jonathan Carroll [Member] | March Carroll Note [Member]
Interest expenses under loan and guarantee, related party	28	15	53	16
LEH [Member] | BDPL Loan Agreement [Member]
Interest expenses under loan and guarantee, related party	160	162	320	323
LEH [Member] | June LEH Note [Member]
Interest expenses under loan and guarantee, related party	16	1	23	0
Ingleside [Member] | March Ingleside Note [Member]
Interest expenses under loan and guarantee, related party	$ 26	$ 24	$ 52	$ 71

9. Related Party Transactions_5

9. Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transactions [Abstract]
Accounts payable, related party	$ 1,831		$ 1,831		$ 1,529
Dock Tolling Agreement with LMT fees	200	$ 200	400	$ 400
Lease payments received under the office sub-lease agreement with LEH	$ 10	$ 10	$ 20	$ 20

10. Accrued Expenses and Othe_3

10. Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other Liabilities, Current [Abstract]
Unearned revenue	$ 1,023	$ 434
Insurance	382	61
Board of director fees payable	338	273
Property taxes	121	48
Other payable	167	265
Excise and income taxes payable	64	47
Customer deposits	10	109
Easement payable	0	223
Accrued rent	0	111
Accrued Expenses and Other Current Liabilities, Net	$ 2,105	$ 1,571

11. Long-Term Debt and Accrue_3

11. Long-Term Debt and Accrued Interest (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Principal balance outstanding	$ 39,768	$ 39,808
Less: Current portion of long-term debt, net	(34,355)	(34,863)
Less: Unamortized debt issue costs	(1,942)	(2,006)
Less: Interest payable (in default)	(3,471)	(2,939)
Long term debt	0	0
First Term Loan Due 2034 [Member]
Principal balance outstanding	22,365	22,593
Second Term Loan Due 2034 [Member]
Principal balance outstanding	9,184	9,353
Notre Dame Debt [Member]
Principal balance outstanding	8,219	7,821
Capital Leases [Member]
Principal balance outstanding	$ 0	$ 41

11. Long-Term Debt and Accrue_4

11. Long-Term Debt and Accrued Interest (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
First Term Loan Due 2034	$ 1,674	$ 1,674
Second Term Loan Due 2034	768	768
Less: Accumulated amortization	(500)	(436)
Long term debt	$ 1,942	$ 2,006

11. Long-Term Debt and Accrue_5

11. Long-Term Debt and Accrued Interest (Details 2) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Notre Dame Debt (in default)	$ 3,241	$ 2,843
First Term Loan Due 2034	183	43
Second Term Loan Due 2034	47	53
Total	3,471	2,939
Less: Interest payable, in default	(3,471)	(2,939)
Long term debt	$ 0	$ 0

12. Line of Credit Payable (Det

12. Line of Credit Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Line of credit, gross	$ 39,768	$ 39,808
Less: Unamortized debt issue costs	(1,942)	(2,006)
Less: Interest payable	(3,471)	(2,939)
Pilot Line of Credit
Line of credit, gross	12,902	0
Less: Unamortized debt issue costs	(625)	0
Less: Interest payable	(102)	0
Line of credit	$ 12,175	$ 0

13. Asset Retirement Obligati_3

13. Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations, at the beginning of the period			$ 2,580	$ 2,315	$ 2,315
Accretion expense	$ 0	$ 78	0	$ 144	265
Asset retirement obligations	2,580		2,580		2,580
Less: asset retirement obligations, current portion	(2,580)		(2,580)		(2,580)
Long-term asset retirement obligations, at the end of the period	$ 0		$ 0		$ 0

14. Concentration of Risk (Deta

14. Concentration of Risk (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total refined petroleum product sales	$ 77,257	$ 88,265	$ 145,115	$ 159,777
Concentration Risk	100.00%	100.00%	100.00%	100.00%
LPG mix
Total refined petroleum product sales	$ 1	$ 0	$ 9	$ 3
Concentration Risk	0.00%	0.00%	0.00%	0.00%
Naphtha
Total refined petroleum product sales	$ 15,416	$ 23,648	$ 29,211	$ 39,966
Concentration Risk	20.30%	26.80%	20.10%	25.00%
Jet Fuel
Total refined petroleum product sales	$ 24,173	$ 25,549	$ 44,982	$ 46,116
Concentration Risk	30.70%	28.90%	31.00%	28.90%
HOBM
Total refined petroleum product sales	$ 16,747	$ 22,430	$ 32,907	$ 38,859
Concentration Risk	23.80%	25.40%	22.70%	24.30%
AGO
Total refined petroleum product sales	$ 20,920	$ 16,638	$ 38,006	$ 34,833
Concentration Risk	25.20%	18.90%	26.20%	21.80%

14. Concentration of Risk (De_2

14. Concentration of Risk (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Balances in excess of FDIC insurance limit	$ 1,500	$ 1,200

15. Leases (Details)

15. Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease right-of-use assets, gross	$ 787
Less: Accumulated amortization on operating lease assets	(67)
Operating lease right-of-use assets, net	720	$ 0
Finance lease assets, gross	180
Less: Accumulated amortization on finance lease assets	(21)
Finance lease assets, net	159
Total lease assets	879
Current portion of operating lease	167
Current portion of finance lease	104
Total current lease liability	271	0
Long-term portion of operating lease	654	$ 0
Total lease liabilities	$ 925
Weighted average remaining lease term in years - operating lease	4 years 2 months 1 day
Weighted average remaining lease term in years - finance lease	9 months 18 days
Weighted average discount rate - operating lease	8.25%
Weighted average discount rate - finance lease	8.25%

15. Leases (Details 1)

15. Leases (Details 1) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease costs	$ 51	$ 77
Depreciation of leased assets	4	8
Interest on lease liabilities	1	2
Total lease cost	$ 56	$ 87

15. Leases (Details 2)

15. Leases (Details 2) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating cash flows for operating lease	$ 40	$ 96
Operating cash flows for finance leases	1	2
Financing cash flows for finance leases	$ 10	$ 21

15. Leases (Details 3)

15. Leases (Details 3) $ in Thousands	Jun. 30, 2019USD ($)
Operating Lease
2019	$ 82
2020	175
2021	194
2022	215
2023	155
Total minimum rental payments	821
Finance Lease
2019	31
2020	73
2021	0
2022	0
2023	0
Total minimum rental payments	104
Total
2019	113
2020	248
2021	194
2022	215
2023	155
Total minimum rental payments	$ 925

15. Leases (Details 4)

15. Leases (Details 4) $ in Thousands	Jun. 30, 2019USD ($)
Leases [Abstract]
2019	$ 114
2020	230
2021	233
2022	237
2023	161
Total	$ 975

16. Income Taxes (Details)

16. Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current federal	$ 0	$ 0	$ 0	$ 108	$ 108
Current state	0	0	0	0	43
Change in valuation allowance	0	0	0	109	109
Total provision for income taxes	$ 0	$ 0	$ 0	$ 217	$ (260)

16. Income Taxes (Details 1)

16. Income Taxes (Details 1) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss and capital loss carryforwards	$ 13,365	$ 11,260
Accrued arbitration award payable	1,256	2,850
Business interest expense	1,299	704
Start-up costs (crude oil and condensate processing facility)	636	678
Asset retirement obligations liability/deferred revenue	541	542
AMT credit and other	50	108
Total deferred tax assets	17,147	16,142
Deferred tax liabilities:
Basis differences in property and equipment	(5,564)	(5,153)
Total deferred tax liabilities	(5,564)	(5,153)
Deferred tax assets, net	11,583	10,989
Valuation allowance	(11,533)	(10,881)
Deferred tax assets, net	$ 50	$ 108

16. Income Taxes (Details 2)

16. Income Taxes (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Beginning balance	$ 46,949	$ 39,833
Net operating losses	10,021	7,116
Ending balance	56,970	46,949
Pre-Ownership Change [Member]
Beginning balance	9,614	9,614
Net operating losses	0	0
Ending balance	9,614	9,614
Post-Ownership Change [Member]
Beginning balance	37,325	30,219
Net operating losses	10,021	7,116
Ending balance	$ 47,356	$ 37,325

16. Income Taxes (Details Narra

16. Income Taxes (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income tax benefit	$ 0	$ 0	$ 0	$ (217)	$ 260

17. Earnings per share (Details

17. Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ (3,299)	$ 1,836	$ (2,552)	$ 1,685
Basic and diluted income per share	$ (.30)	$ .17	$ (.23)	$ .15
Basic and diluted
Weighted average number of shares of common stock outstanding and potential dilutive shares of common stock	10,975,514	10,925,513	10,975,514	10,925,513