FLOTEK INDUSTRIES INCCN
For the period ended Sep 30, 2024. Filed Nov 7, 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.
Sep 30, 2024 · Filed Nov 7, 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)
| September 30, 2024 | December 31, 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $4,997 | $5,851 |
| Restricted cash | 101 | 102 |
| Accounts receivable, net of allowance for credit losses of $388 and $745 at September 30, 2024 and December 31, 2023, respectively | 12,220 | 13,687 |
| Accounts receivable, related party, net of allowance for credit losses of $0 at September 30, 2024 and December 31, 2023, respectively | 47,064 | 34,569 |
| Inventories, net | 12,744 | 12,838 |
| Other current assets | 2,687 | 3,564 |
| Current contract asset | 6,480 | 5,836 |
| Total current assets | 86,293 | 76,447 |
| Long-term contract asset | 63,835 | 68,820 |
| Property and equipment, net | 4,958 | 5,129 |
| Operating lease right-of-use assets | 3,759 | 5,030 |
| Deferred tax assets, net | 66 | 300 |
| Other long-term assets | 1,738 | 1,787 |
| TOTAL ASSETS | $160,649 | $157,513 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $37,395 | $31,705 |
| Accrued liabilities | 4,115 | 5,890 |
| Income taxes payable | 54 | 45 |
| Current portion of operating lease liabilities | 1,642 | 2,449 |
| Current portion of finance lease liabilities | — | 22 |
| Asset-based loan | 1,426 | 7,492 |
| Current portion of long-term debt | 104 | 179 |
| Total current liabilities | 44,736 | 47,782 |
| Deferred revenue, long-term | 35 | 35 |
| Long-term operating lease liabilities | 6,871 | 7,676 |
| Long-term debt | — | 60 |
| TOTAL LIABILITIES | 51,642 | 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; 30,891,597 shares issued and 29,789,476 shares outstanding at September 30, 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) | 464,143 | 463,140 |
| Accumulated other comprehensive income | 133 | 127 |
| Accumulated deficit | (320,738) | (326,806) |
| Treasury stock, at cost; 1,102,121 and 1,108,707 shares at September 30, 2024 and December 31, 2023, respectively (As adjusted, see Note 13) | (34,534) | (34,504) |
| Total stockholders’ equity | 109,007 | 101,960 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $160,649 | $157,513 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenue: | ||||
| Revenue from external customers | $16,565 | $17,806 | $47,935 | $47,278 |
| Revenue from related party | 33,177 | 29,462 | 88,332 | 98,592 |
| Total revenues | 49,742 | 47,268 | 136,267 | 145,870 |
| Cost of sales | 40,623 | 38,221 | 109,159 | 131,037 |
| Gross profit | 9,119 | 9,047 | 27,108 | 14,833 |
| Operating costs and expenses: | ||||
| Selling, general, and administrative | 5,714 | 6,526 | 18,056 | 21,303 |
| Depreciation | 220 | 181 | 662 | 530 |
| Research and development | 462 | 757 | 1,349 | 2,231 |
| Severance costs | — | 2 | 23 | (28) |
| Gain on sale of property and equipment | — | (38) | (34) | (38) |
| Gain in fair value of Contract Consideration Convertible Notes Payable | — | — | — | (29,969) |
| Total operating costs and expenses | 6,396 | 7,428 | 20,056 | (5,971) |
| Income from operations | 2,723 | 1,619 | 7,052 | 20,804 |
| Other income (expense): | ||||
| Paycheck protection plan loan forgiveness | — | — | — | 4,522 |
| Interest expense | (256) | (160) | (842) | (2,537) |
| Other income, net | 102 | (91) | 151 | (82) |
| Total other income (expense) | (154) | (251) | (691) | 1,903 |
| Income before income taxes | 2,569 | 1,368 | 6,361 | 22,707 |
| Income tax expense | (37) | (81) | (293) | (98) |
| Net income | $2,532 | $1,287 | $6,068 | $22,609 |
| Income (loss) per common share (As adjusted, see Note 14): | ||||
| Basic | $0.09 | $0.04 | $0.21 | $0.97 |
| Diluted | $0.08 | $0.04 | $0.20 | $(0.18) |
| Weighted average common shares (As adjusted, see Note 14): | ||||
| Weighted average common shares used in computing basic income (loss) per common share | 29,613 | 29,358 | 29,498 | 23,291 |
| Weighted average common shares used in computing diluted income (loss) per common share | 30,897 | 30,688 | 30,655 | 28,034 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net income | $2,532 | $1,287 | $6,068 | $22,609 |
| Other comprehensive income (loss): | ||||
| Foreign currency translation adjustment | (52) | 47 | 6 | 13 |
| Comprehensive income | $2,480 | $1,334 | $6,074 | $22,622 |
FLOTEK INDUSTRIES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (in thousands)
| Nine months ended September 30, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash flows from operating activities: | ||
| Net income | $6,068 | $22,609 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
| Change in fair value of contingent consideration | (46) | (384) |
| Change in fair value of Contract Consideration Convertible Notes Payable | — | (29,969) |
| Amortization of convertible note issuance costs | — | 83 |
| Paid-in-kind interest expense | — | 2,284 |
| Amortization of contract assets | 4,341 | 3,665 |
| Depreciation | 662 | 530 |
| Amortization of asset-based loan origination costs | 243 | 36 |
| Provision for credit losses, net of recoveries | 121 | 97 |
| Provision for excess and obsolete inventory | 626 | 626 |
| Gain on sale of property and equipment | (34) | (38) |
| Non-cash lease expense | 1,661 | 2,316 |
| Stock compensation expense | 915 | (565) |
| Deferred income tax expense | 233 | 50 |
| Paycheck protection plan loan forgiveness | — | (4,522) |
| Changes in current assets and liabilities: | ||
| Accounts receivable | 1,346 | 3,472 |
| Accounts receivable, related party | (12,495) | (2,082) |
| Inventories | (532) | (776) |
| Other assets | 849 | (863) |
| Accounts payable | 5,690 | 60 |
| Accrued liabilities | (1,730) | (3,179) |
| Operating lease liabilities | (2,002) | (2,636) |
| Income taxes payable | 9 | (54) |
| Interest payable | — | (8) |
| Net cash provided by (used in) operating activities | 5,925 | (9,248) |
| Cash flows from investing activities: | ||
| Capital expenditures | (491) | (593) |
| Proceeds from sale of assets | 34 | 68 |
| Net cash used in investing activities | (457) | (525) |
| Cash flows from financing activities: | ||
| Payment for forfeited stock options | — | (617) |
| Payments on long term debt | (135) | (104) |
| Proceeds from asset-based loan | 122,600 | 27,750 |
| Payments on asset-based loan | (128,666) | (24,380) |
| Payment of asset-based loan origination costs | (164) | (502) |
| Payments to tax authorities for shares withheld from employees | (30) | (246) |
| Proceeds from issuance of stock | 88 | 48 |
| Payments for finance leases | (22) | (24) |
| Net cash (used in) provided by financing activities | (6,329) | 1,925 |
| Effect of changes in exchange rates on cash and cash equivalents | 6 | 13 |
| Net change in cash and cash equivalents and restricted cash | (855) | (7,835) |
| 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 | 4,997 | 4,453 |
| Restricted cash at the end of period | 101 | 102 |
| Cash and cash equivalents and restricted cash at end of period | $5,098 | $4,555 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
| Three Months Ended September 30, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Common Stock · Treasury Stock · AdditionalPaid-inCapital · AccumulatedOtherComprehensiveIncome · Accumulated Deficit · Total Stockholders’ Equity | ||||||||
| SharesIssued · ParValue · Shares · Cost | ||||||||
| Balance, June 30, 2024 | 30,867 | $3 | 1,107 | $(34,528) | $463,844 | $185 | $(323,270) | $106,234 |
| Net income | — | — | — | — | — | — | 2,532 | 2,532 |
| Foreign currency translation adjustment | — | — | — | — | — | (52) | — | (52) |
| Stock issued under employee stock purchase plan | — | — | (6) | — | 26 | — | — | 26 |
| Restricted stock units vested | 25 | — | — | — | — | — | — | — |
| Stock compensation expense | — | — | — | — | 273 | — | — | 273 |
| Shares withheld to cover taxes | — | — | 1 | (6) | — | — | — | (6) |
| Balance, September 30, 2024 | 30,892 | $3 | 1,102 | $(34,534) | $464,143 | $133 | $(320,738) | $109,007 |
| Three Months Ended September 30, 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Common Stock · Treasury Stock · AdditionalPaid-inCapital · AccumulatedOtherComprehensiveIncome · Accumulated Deficit · Total Stockholders’ Equity | ||||||||
| SharesIssued · ParValue · Shares · Cost | ||||||||
| (As adjusted, see Note 13) | ||||||||
| Balance, June 30, 2023 | 26,370 | $3 | 1,113 | $(34,480) | $462,529 | $147 | $(330,197) | $98,002 |
| Net income | — | — | — | — | — | — | 1,287 | 1,287 |
| Foreign currency translation adjustment | — | — | — | — | — | 47 | — | 47 |
| Stock issued under employee stock purchase plan | — | — | (4) | — | 15 | — | — | 15 |
| Restricted stock granted | 145 | — | — | — | — | — | — | — |
| Restricted stock forfeited | — | — | 1 | — | — | — | — | — |
| Stock compensation expense | — | — | — | — | 270 | — | — | 270 |
| Shares withheld to cover taxes | (3) | — | — | (2) | (15) | — | — | (17) |
| Exercise of pre-funded warrants | 4,228 | — | — | — | — | — | — | — |
| Balance, September 30, 2023 | 30,740 | $3 | 1,110 | $(34,482) | $462,799 | $194 | $(328,910) | $99,604 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(continued)
| Nine Months Ended September 30, 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 | — | — | — | — | — | — | 6,068 | 6,068 |
| Foreign currency translation adjustment | — | — | — | — | — | 6 | — | 6 |
| Stock issued under employee stock purchase plan | — | — | (25) | — | 88 | — | — | 88 |
| Restricted stock granted | 94 | — | — | — | — | — | — | — |
| Restricted stock forfeited | — | — | 11 | — | — | — | — | — |
| Restricted stock units vested | 25 | — | — | — | — | — | — | — |
| Stock compensation expense | — | — | — | — | 915 | — | — | 915 |
| Shares withheld to cover taxes | — | — | 7 | (30) | — | — | — | (30) |
| Balance, September 30, 2024 | 30,892 | $3 | 1,102 | $(34,534) | $464,143 | $133 | $(320,738) | $109,007 |
| Nine Months Ended September 30, 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 | — | — | — | — | — | — | 22,609 | 22,609 | ||||||
| Foreign currency translation adjustment | — | — | — | — | — | 13 | — | 13 | ||||||
| Stock issued under employee stock purchase plan | — | — | (12) | — | 48 | — | — | 48 | ||||||
| Restricted stock granted | 148 | — | — | — | — | — | — | — | ||||||
| Restricted stock forfeited | (7) | — | 65 | — | — | — | — | — | ||||||
| Restricted stock units vested | 82 | — | — | — | — | — | — | — | ||||||
| Forfeited stock options purchased | — | — | — | — | (617) | — | — | (617) | ||||||
| Stock compensation expense | — | — | — | (565) | — | — | (565) | |||||||
| Shares withheld to cover taxes | (3) | 36 | (231) | (15) | — | — | (246) | |||||||
| Exercise of pre-funded warrants | 4,228 | — | — | — | — | — | — | — | ||||||
| Issuance of stock warrants, net of transaction fee | — | — | — | — | 15,092 | — | — | 15,092 | ||||||
| Conversion of convertible notes payable to Pre-Funded Warrants | — | — | — | — | 11,040 | — | — | 11,040 | ||||||
| Conversion of convertible notes payable to Common Stock | 1,723 | — | — | — | 8,996 | — | — | 8,996 | ||||||
| Conversion of Amended ProFrac Agreement Contract Consideration Convertible Notes Payable to Common Stock | 10,583 | 2 | — | — | 40,636 | — | — | 40,638 | ||||||
| Balance, September 30, 2023 | 30,740 | $3 | 1,110 | $(34,482) | $462,799 | $194 | $(328,910) | $99,604 | ||||||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.