FLOTEK INDUSTRIES INCCN
For the period ended Mar 31, 2024. Filed May 9, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 9, 2024
FTK$25.98+6.3%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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PART II
FLOTEK INDUSTRIES INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| March 31, 2024 | December 31, 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $5,219 | $5,851 |
| Restricted cash | 100 | 102 |
| Accounts receivable, net of allowance for credit losses of $374 and $745 at March 31, 2024 and December 31, 2023, respectively | 10,718 | 13,687 |
| Accounts receivable, related party, net of allowance for credit losses of $0 at each of March 31, 2024 and December 31, 2023 | 38,655 | 34,569 |
| Inventories, net | 13,871 | 12,838 |
| Other current assets | 2,686 | 3,564 |
| Current contract assets | 7,019 | 5,836 |
| Total current assets | 78,268 | 76,447 |
| Long-term contract assets | 66,369 | 68,820 |
| Property and equipment, net | 5,061 | 5,129 |
| Operating lease right-of-use assets | 4,336 | 5,030 |
| Deferred tax assets, net | 91 | 300 |
| Other long-term assets | 1,725 | 1,787 |
| TOTAL ASSETS | $155,850 | $157,513 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $35,952 | $31,705 |
| Accrued liabilities | 3,365 | 5,890 |
| Income taxes payable | 78 | 45 |
| Current portion of operating lease liabilities | 2,083 | 2,449 |
| Current portion of finance lease liabilities | 13 | 22 |
| Asset-based loan | 3,111 | 7,492 |
| Current portion of long-term debt | 179 | 179 |
| Total current liabilities | 44,781 | 47,782 |
| Deferred revenue, long-term | 35 | 35 |
| Long-term operating lease liabilities | 7,121 | 7,676 |
| Long-term debt | 15 | 60 |
| TOTAL LIABILITIES | 51,952 | 55,553 |
| Stockholders’ equity: | ||
| Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares issued and outstanding | — | — |
| Common stock, $0.0001 par value, 240,000,000 shares authorized; 30,772,837 shares issued and 29,661,130 shares outstanding at March 31, 2024; 30,772,837 shares issued and 29,664,130 shares outstanding at December 31, 2023 (As adjusted, see Note 13) | 3 | 3 |
| Additional paid-in capital (As adjusted, see Note 13) | 463,484 | 463,140 |
| Accumulated other comprehensive income | 169 | 127 |
| Accumulated deficit | (325,244) | (326,806) |
| Treasury stock, at cost; 1,111,707 and 1,108,707 shares at March 31, 2024 and December 31, 2023, respectively (As adjusted, see Note 13) | (34,514) | (34,504) |
| Total stockholders’ equity | 103,898 | 101,960 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $155,850 | $157,513 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three months ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Revenue: | ||
| Revenue from external customers | $13,180 | $11,652 |
| Revenue from related party | 27,194 | 36,355 |
| Total revenues | 40,374 | 48,007 |
| Cost of sales | 31,553 | 46,127 |
| Gross profit | 8,821 | 1,880 |
| Operating costs and expenses: | ||
| Selling, general, and administrative | 6,084 | 6,451 |
| Depreciation | 220 | 176 |
| Research and development | 406 | 614 |
| Severance costs | 3 | 2,223 |
| Gain in fair value of Contract Consideration Convertible Notes Payable | — | (26,095) |
| Total operating costs and expenses | 6,713 | (16,631) |
| Income from operations | 2,108 | 18,511 |
| Other income (expense): | ||
| Paycheck protection plan loan forgiveness | — | 4,522 |
| Interest expense | (278) | (1,672) |
| Other expense, net | (26) | (9) |
| Total other income (expense) | (304) | 2,841 |
| Income before income taxes | 1,804 | 21,352 |
| Income tax expense | (242) | (9) |
| Net income | $1,562 | $21,343 |
| Income (loss) per common share (As adjusted, see Note 14): | ||
| Basic | $0.05 | $1.30 |
| Diluted | $0.05 | $(0.12) |
| Weighted average common shares (As adjusted, see Note 14): | ||
| Weighted average common shares used in computing basic income (loss) per common share | 29,431 | 16,468 |
| Weighted average common shares used in computing diluted income (loss) per common share | 30,316 | 26,462 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
| Three months ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net income | $1,562 | $21,343 |
| Other comprehensive income: | ||
| Foreign currency translation adjustment | 42 | (21) |
| Comprehensive income | $1,604 | $21,322 |
FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands)
| Three months ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash flows from operating activities: | ||
| Net income | $1,562 | $21,343 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Change in fair value of contingent consideration | (26) | (359) |
| Change in fair value of Contract Consideration Convertible Notes Payable | — | (26,095) |
| Amortization of convertible note issuance cost | — | 83 |
| Paid-in-kind interest expense | — | 1,571 |
| Amortization of contract assets | 1,267 | 1,251 |
| Depreciation | 220 | 176 |
| Amortization of asset-based loan origination costs | 85 | — |
| Provision for credit losses, net of recoveries | 32 | 23 |
| Provision for excess and obsolete inventory | 285 | 258 |
| Lease expense | 694 | 977 |
| Stock compensation expense | 311 | (1,112) |
| Deferred income tax expense (benefit) | 209 | (6) |
| Paycheck protection plan loan forgiveness | — | (4,522) |
| Changes in current assets and liabilities: | ||
| Accounts receivable | 2,937 | 3,504 |
| Accounts receivable, related party | (4,086) | (3,546) |
| Inventories | (1,318) | (441) |
| Other assets | 856 | (470) |
| Accounts payable | 4,246 | 8,554 |
| Accrued liabilities | (2,499) | 1,236 |
| Operating lease liabilities | (921) | (1,190) |
| Income taxes payable | 33 | (87) |
| Interest payable | — | (8) |
| Net cash provided by operating activities | 3,887 | 1,140 |
| Cash flows from investing activities: | ||
| Capital expenditures | (152) | (157) |
| Net cash used in investing activities | (152) | (157) |
| Cash flows from financing activities: | ||
| Payment for forfeited stock options | — | (617) |
| Payments on long term debt | (45) | (15) |
| Proceeds from asset-based loan | 38,800 | — |
| Payments on asset-based loan | (43,181) | — |
| Payments to tax authorities for shares withheld from employees | (9) | (200) |
| Proceeds from issuance of stock | 33 | 20 |
| Payments for finance leases | (9) | (6) |
| Net cash used in financing activities | (4,411) | (818) |
| Effect of changes in exchange rates on cash and cash equivalents | 42 | (21) |
| Net change in cash and cash equivalents and restricted cash | (634) | 144 |
| Cash and cash equivalents at the beginning of period | 5,851 | 12,290 |
| Restricted cash at the beginning of period | 102 | 100 |
| Cash and cash equivalents and restricted cash at beginning of period | 5,953 | 12,390 |
| Cash and cash equivalents at end of period | 5,219 | 12,433 |
| Restricted cash at the end of period | 100 | 101 |
| Cash and cash equivalents and restricted cash at end of period | $5,319 | $12,534 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
| Three months ended March 31, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Common Stock · Treasury Stock · AdditionalPaid-inCapital · AccumulatedOtherComprehensiveIncome · Accumulated Deficit · Total Stockholders’ Equity | ||||||||
| SharesIssued · ParValue · Shares · Cost | ||||||||
| Balance, December 31, 2023 | 30,773 | $3 | 1,109 | $(34,504) | $463,140 | $127 | $(326,806) | $101,960 |
| Net income | — | — | — | — | — | — | 1,562 | 1,562 |
| Foreign currency translation adjustment | — | — | — | — | — | 42 | — | 42 |
| Stock issued under employee stock purchase plan | — | — | (10) | — | 33 | — | — | 33 |
| Restricted stock forfeited | — | — | 11 | — | — | — | — | — |
| Stock compensation expense | — | — | — | — | 311 | — | — | 311 |
| Shares withheld to cover taxes | — | — | 2 | (10) | — | — | — | (10) |
| Balance, March 31, 2024 | 30,773 | $3 | 1,112 | $(34,514) | $463,484 | $169 | $(325,244) | $103,898 |
| Three months ended March 31, 2023 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Common Stock · Treasury Stock · AdditionalPaid-inCapital · AccumulatedOtherComprehensiveIncome · Accumulated Deficit · Total Stockholders’ Equity | |||||||||||||
| SharesIssued · ParValue · Shares · Cost | |||||||||||||
| (As adjusted, see Note 13) | |||||||||||||
| Balance, December 31, 2022 | 13,986 | $1 | 1,021 | $(34,251) | $388,184 | $181 | $(351,519) | $2,596 | |||||
| Net income | — | — | — | — | — | — | 21,343 | 21,343 | |||||
| Foreign currency translation adjustment | — | — | — | — | — | (21) | — | (21) | |||||
| Stock issued under employee stock purchase plan | — | — | (4) | — | 20 | — | — | 20 | |||||
| Restricted stock granted | 2 | — | — | — | — | — | — | — | |||||
| Restricted stock forfeited | (7) | — | 28 | — | — | — | — | — | |||||
| Restricted stock units vested | 64 | — | — | — | — | — | — | — | |||||
| Forfeited stock options purchased | — | — | — | — | (617) | — | — | (617) | |||||
| Stock compensation expense | — | — | — | (1,112) | — | — | (1,112) | ||||||
| Shares withheld to cover taxes | — | — | 29 | (200) | — | — | — | (200) | |||||
| Issuance of stock warrants, net of transaction fee | — | — | — | — | 15,092 | — | — | 15,092 | |||||
| Equity contribution | — | — | — | — | 11,040 | — | — | 11,040 | |||||
| Conversion of notes to common stock | 1,723 | 1 | — | — | 8,996 | — | — | 8,997 | |||||
| Balance, March 31, 2023 | 15,768 | $2 | 1,074 | $(34,451) | $421,603 | $160 | $(330,176) | $57,138 | |||||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.