Eco-Stim Energy Solutions, Inc. (NASDAQ: ESES) (“EcoStim” or the
“Company”) announced its financial and operating results for the
quarter ended June 30, 2018.
Q2 2018 HIGHLIGHTS
- Revenues for Q2 2018 grew 114% over Q2 2017 to $18.2
million from $8.5 million; revenues for Q2 2018 increased by $0.4
million as compared with Q1 2018
- Two U.S. fleets combined into one “super fleet” to
improve efficiency; resulted in new Company record with 130 stages
completed in June 2018 and Company record fleet revenue set in July
2018
- U.S. gross margin improved from a loss of $3.4 million
in Q1 2018 to a $2.4 million loss in Q2 2018;
~95% of Q2 2018 loss was incurred prior to
formation of the “super fleet”
- CNG-fueled turbine pumps put to work in July in the
pump down market to leverage lower fuel cost
advantage
- Gross margin in Argentina improved from a loss of $0.3
million in Q1 2018 to a positive gross margin in Q2 2018 of $0.1
million
J. Chris Boswell, President and Chief Executive Officer stated,
“In June we combined our two U.S. frac fleets into one larger
“super fleet” to improve our cash flow following poor performance
in April and May while attempting to operate two fleets
simultaneously in a weakening spot market. We are pleased
with the efforts of the “super fleet” to date as evidenced by the
completion of a Company record 130 stages in June and a Company
record revenue generation in July. The creation of the “super
fleet” has improved the cash flow profile as ~95% of the U.S. gross
margin losses for Q2 2018 were experienced prior to the formation
of the “super fleet.” We have continued to reduce costs and
generated strong revenues in July which should provide further
improvements in our U.S. gross margin.
Our Argentina fleet generated a positive gross margin for the
quarter. We continue to work under a transition agreement,
and we expect to continue providing services for a transition
period ending on or before December 2018, depending on the volume
of work to be performed for our customer. The Company has
hired an Investment Bank to help evaluate strategic alternatives
for its Argentina business including a sale, merger or joint
venture. The Company believes that the Argentina market is
growing and undersupplied, and we look forward to recognizing the
value inherent in this business.
Lastly, we are working hard to maximize shareholder value and
take advantage of the significant hard asset value of our
businesses, our high-quality workforce and the recent improvements
in our operational performance. In that regard, the Company
has engaged Johnson Rice & Company to provide advice regarding
various initiatives to enhance shareholder value.”
Quarter Financial Results
For Q2 2018, the Company reported a net loss of $16.6 million,
or a loss of $0.22 per basic and diluted share, as compared to a
net loss of $6.1 million, or a loss of $0.31 per basic and diluted
share, reported in Q2 2017. The net loss for Q2 2018 included
an impairment charge with respect to underutilized equipment of
$3.7 million and $0.9 million in special charges related to the
combination of our two U.S. fleets into the “super fleet” and
certain legal fees.
Revenues
U.S. revenue for Q2 2018 was $15.0 million, compared to $3.1
million for Q2 2017. The Company started its U.S. operations
during Q2 2017 and as such generated limited revenue in Q2
2017.
Argentina revenue for Q2 2018 decreased $2.2 million to $3.2
million, compared to $5.4 million for Q2 2017. The Q2 2017
revenue included billings for 3rd party services that were
sub-contracted by the Company. These services were
contracted directly by our customer during the period from February
to June 2018.
Cost of Sales
U.S. cost of services was $17.5 million for Q2 2018, compared to
$4.5 for Q2 2017 and $16.1 million in Q1 2018. The increase
in costs compared to Q1 2018 was a result of the additional costs
related to the operation of two fleets until Fleet #1 was combined
with Fleet #2 in May 2018. Following the decision to
consolidate fleets, the Company reduced cost levels to focus on
achieving profitability. As a result, the gross margin
loss from the U.S. operation was reduced from $1.7 million in May
to $0.1 million in June 2018. The $17.5 million in cost of
services for Q2 2018 included $0.4 million of special charges
related to the combination of the two fleets.
Argentina cost of services decreased $3.7 million to $3.1
million for Q2 2018, compared to $6.8 million for Q2 2017.
This decrease was attributable to lower activity levels and a
reduction in costs incurred attributable to non-core third party
services.
G&A Expense
Selling, general and administrative ("G&A") expense
increased $1.1 million to $3.4 million for Q2 2018, compared to
$2.3 million for Q2 2017. This increase was a result of our
expansion into the U.S. market which did not occur until mid Q2
2017. There were also related increases in non-cash
stock compensation, corporate salaries, director compensation and
certain legal and other professional expenses. G&A
expense for Q2 2018 included $0.7 million of non-cash stock
compensation charges. G&A expense for Q2 2018 also
included $0.5 million of special charges as described
above.
Impairment Expense
In Q2 2018, the Company recorded impairment expense of $3.7
million with respect to underutilized equipment.
Cash and Total Liquidity
On June 30, 2018, EcoStim had cash and cash equivalents of
approximately $1.9 million, compared to $8.8 million at December
31, 2017 and $3.7 million at June 30, 2017. The Company
secured $5.5 million in funding from a shareholder loan in June
2018 to fund capital expenditures and working capital.
Subsequent to June 30, the Company has been pursuing the sale of
non-core equipment valued between approximately $1.5 and $3.0
million.
Capital Expenditures
Total cash capital expenditures made during Q2 2018 were
approximately $1.8 million compared to $1.5 million in Q1 2018 and
$4.2 million in Q2 2017, comprised mainly of additional pressure
pumping equipment and maintenance capex.
Forward Guidance
The Company has a limited operating history, with our U.S
operations starting up in Q2 2017 and only a few years of
operations in Argentina in a difficult but improving market
environment. While the market in both Argentina and the U.S.
is now stronger, utilization of our frac fleets is difficult to
accurately predict and therefore the Company does not plan to
provide any earnings guidance for 2018 at this time. As the
Company’s capacity additions made over the past year are deployed
and the Company develops a longer operating history in the US,
management may decide to provide guidance in the future.
Factors that may influence our outlook and performance include the
reliability and performance of our equipment, utilization of our
assets in both the U.S. and Argentina markets, the size of each
job, pricing levels, and the service and product components of each
job, as well as other factors discussed in our filings with the
U.S. Securities and Exchange Commission.
Conference Call
The Company will host a conference call on Tuesday, August 14th,
2018 at 8:30 AM EDT, 7:30 AM CDT. To participate in the call
please dial 877-900-9524 from the United States and Canada, and
412-902-0029 internationally. Additionally, the Company will
host a web cast to review an investor presentation which will be
accessible through the following link:
https://78449.themediaframe.com/dataconf/productusers/eses/mediaframe/25789/indexl.html
Participants should dial in five to ten minutes before the
scheduled time and must be on a touchtone telephone to ask
questions. A replay of the call will be available through
August 31, 2018, by dialing 877-660-6853 from the U.S and Canada,
and 201-612-7415 internationally. The replay passcode is
13597819.
About the Company
EcoStim is an environmentally focused oilfield service and
technology company offering well stimulation and completion
services and field management technologies to oil and gas producers
drilling in the U.S. and international unconventional shale
markets. In addition to conventional pumping equipment,
EcoStim offers its clients completion techniques that can
dramatically reduce horsepower requirements, emissions and surface
footprint.
Forward-Looking Statements:
Certain statements and information in this press release
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. The words
“believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,”
“should,” “would,” “could” “offer to” or other similar expressions
are intended to identify forward-looking statements, which are
generally not historical in nature. All statements, other
than statements of historical facts, included in this press release
that address activities, events or developments that the Company is
preparing for, plans, expects, believes or anticipates will or may
occur in the future are forward-looking statements. Examples
of forward-looking statements include, but are not limited to, the
Company’s statements made relating to: (i) revenue, earnings,
profitability, gross margin, and other financial results for future
periods, (ii) future pricing and other conditions in the markets
served by the Company, (iii) the future utilization and operating
efficiency of the Company’s frac fleets, and (iv) the Company’s
review of strategic alternatives for its Argentina business and
other initiatives to enhance shareholder value. These statements
are based on certain assumptions made by the Company based on
management's experience, expectations and perception of historical
trends, current conditions, anticipated future developments and
other factors believed to be appropriate. Forward-looking
statements are not guarantees of performance. Although the
Company believes the expectations reflected in its forward-looking
statements are reasonable and are based on reasonable assumptions,
no assurance can be given that these assumptions are accurate or
that any of these expectations will be achieved (in full or at all)
or will prove to have been correct. Our forward-looking
statements involve significant risks and uncertainties (some of
which are beyond our control) and assumptions that could cause
actual results to differ materially from our historical experience
and our present expectations or projections.
For additional information regarding known material factors that
could cause our actual results to differ materially from our
projected results, please see our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Investors should carefully consider the risk factors included in
our filings, and should keep in mind the cautionary statements in
this press release and in our filings.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
###
Financial Statements
ECO-STIM ENERGY SOLUTIONS,
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
|
|
(Unaudited) |
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
1,904,263 |
|
|
$ |
8,826,076 |
|
Accounts
receivable |
|
|
7,557,612 |
|
|
|
10,167,044 |
|
Inventory |
|
|
3,138,320 |
|
|
|
3,699,245 |
|
Prepaids
and other assets |
|
|
5,648,345 |
|
|
|
5,150,910 |
|
Total current
assets |
|
|
18,248,540 |
|
|
|
27,843,275 |
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
75,703,514 |
|
|
|
75,825,539 |
|
Total
assets |
|
$ |
93,952,054 |
|
|
$ |
103,668,814 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
18,702,217 |
|
|
$ |
15,587,623 |
|
Accrued
expenses |
|
|
6,235,351 |
|
|
|
6,343,842 |
|
Short-term shareholder note |
|
|
5,109,995 |
|
|
|
- |
|
Short-term equipment financing note |
|
|
4,420,228 |
|
|
|
7,047,020 |
|
Short-term insurance financing note |
|
|
847,059 |
|
|
|
- |
|
Current
portion of capital lease payable |
|
|
3,731,342 |
|
|
|
836,855 |
|
Total current
liabilities |
|
|
39,046,192 |
|
|
|
29,815,340 |
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
|
|
|
Long-term
equipment financing note |
|
|
832,843 |
|
|
|
1,172,712 |
|
Total non-current
liabilities |
|
|
832,843 |
|
|
|
1,172,712 |
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
|
|
Preferred
stock |
|
|
10 |
|
|
|
- |
|
Common
stock |
|
|
74,874 |
|
|
|
74,578 |
|
Additional paid-in capital |
|
|
154,900,047 |
|
|
|
144,071,119 |
|
Treasury
stock |
|
|
(57,469 |
) |
|
|
(57,469 |
) |
Accumulated deficit |
|
|
(100,844,443 |
) |
|
|
(71,407,466 |
) |
Total stockholders’
equity |
|
|
54,073,019 |
|
|
|
72,680,762 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ equity |
|
$ |
93,952,054 |
|
|
$ |
103,668,814 |
|
ECO-STIM ENERGY SOLUTIONS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenues |
|
$ |
18,211,128 |
|
|
$ |
8,527,659 |
|
|
$ |
35,989,972 |
|
|
$ |
11,090,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cost and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
services |
|
|
20,536,962 |
|
|
|
11,320,245 |
|
|
|
42,012,988 |
|
|
|
15,060,131 |
|
Selling,
general, and administrative expenses |
|
|
3,425,845 |
|
|
|
2,250,305 |
|
|
|
6,587,728 |
|
|
|
3,807,709 |
|
Research
and development |
|
|
105,739 |
|
|
|
116,638 |
|
|
|
105,739 |
|
|
|
203,792 |
|
Depreciation and amortization expense |
|
|
5,566,719 |
|
|
|
1,422,719 |
|
|
|
10,694,582 |
|
|
|
2,764,511 |
|
Impairment of fixed assets |
|
|
3,685,445 |
|
|
|
- |
|
|
|
3,685,445 |
|
|
|
- |
|
Total operating costs
and expenses |
|
|
33,320,710 |
|
|
|
15,109,907 |
|
|
|
63,086,482 |
|
|
|
21,836,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(15,109,582 |
) |
|
|
(6,582,248 |
) |
|
|
(27,096,510 |
) |
|
|
(10,745,827 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(528,022 |
) |
|
|
(116,157 |
) |
|
|
(948,712 |
) |
|
|
(1,706,615 |
) |
Interest
forgiven |
|
|
- |
|
|
|
634,477 |
|
|
|
- |
|
|
|
634,477 |
|
Foreign
currency gain (loss) |
|
|
(734,158 |
) |
|
|
159,213 |
|
|
|
(1,049,905 |
) |
|
|
(25,058 |
) |
Other
income (expense) |
|
|
(221,074 |
) |
|
|
(243,119 |
) |
|
|
(358,225 |
) |
|
|
32,904 |
|
Total other income
(expense) |
|
|
(1,483,254 |
) |
|
|
434,414 |
|
|
|
(2,356,842 |
) |
|
|
(1,064,292 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
16,375 |
|
|
|
- |
|
|
|
16,375 |
|
|
|
633,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(16,576,461 |
) |
|
$ |
(6,147,834 |
) |
|
$ |
(29,436,977 |
) |
|
$ |
(11,176,859 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share |
|
|
(0.22 |
) |
|
|
(0.31 |
) |
|
|
(0.39 |
) |
|
|
(0.64 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding – basic and diluted |
|
|
74,873,477 |
|
|
|
19,937,375 |
|
|
|
74,727,107 |
|
|
|
17,396,511 |
|
ECO-STIM ENERGY SOLUTIONS,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
Six month ended |
|
|
|
June 30, |
|
|
|
2018 |
|
|
2017 |
|
Operating
Activities |
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(29,436,977 |
) |
|
$ |
(11,176,859 |
) |
Depreciation and amortization |
|
|
10,694,582 |
|
|
|
2,764,511 |
|
Amortization of debt discount and loan origination cost |
|
|
35,084 |
|
|
|
424,714 |
|
Impairment of fixed assets |
|
|
3,685,445 |
|
|
|
- |
|
Stock
based compensation |
|
|
1,366,933 |
|
|
|
551,360 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
2,609,432 |
|
|
|
(2,870,123 |
) |
Inventory |
|
|
560,925 |
|
|
|
(878,498 |
) |
Prepaids
and other assets |
|
|
(638,467 |
) |
|
|
(1,639,592 |
) |
Accounts
payable and accrued expenses |
|
|
(2,642,065 |
) |
|
|
5,207,834 |
|
Net cash provided by
(used in) operating activities |
|
|
(13,765,108 |
) |
|
|
(7,616,653 |
) |
Investing
Activities |
|
|
|
|
|
|
|
|
Purchases
of equipment |
|
|
(5,518,193 |
) |
|
|
(7,842,535 |
) |
Net cash used in
investing activities |
|
|
(5,518,193 |
) |
|
|
(7,842,535 |
) |
Financing
Activities |
|
|
|
|
|
|
|
|
Proceeds
from sale of common stock, net |
|
|
- |
|
|
|
966,780 |
|
Proceeds
from notes payable |
|
|
8,544,908 |
|
|
|
19,298,251 |
|
Proceeds
from sale of preferred stock, net |
|
|
9,712,301 |
|
|
|
- |
|
Payments
on notes payable |
|
|
(5,457,985 |
) |
|
|
(2,229,270 |
) |
Payments
on capital lease |
|
|
(437,736 |
) |
|
|
(380,858 |
) |
Net cash provided by
(used in) financing activities |
|
|
12,361,488 |
|
|
|
17,654,903 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
|
(6,921,813 |
) |
|
|
2,195,715 |
|
Cash and cash
equivalents, beginning of period |
|
|
8,826,076 |
|
|
|
1,731,364 |
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period |
|
$ |
1,904,263 |
|
|
$ |
3,927,079 |
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosure of Cash Flow Information |
|
|
|
|
|
|
|
|
Cash paid
during the year for interest |
|
$ |
631,784 |
|
|
$ |
230,473 |
|
Cash paid
during the year for income taxes |
|
$ |
238,113 |
|
|
$ |
116,286 |
|
|
|
|
|
|
|
|
|
|
Non-cash
transactions |
|
|
|
|
|
|
|
|
Property,
plant and equipment additions in accounts payable |
|
$ |
5,398,165 |
|
|
$ |
1,832,335 |
|
Conversion of debt to equity |
|
$ |
- |
|
|
$ |
41,354,301 |
|
Notes
payable settled through recapitalization |
|
$ |
- |
|
|
$ |
22,000,000 |
|
Interest
forgiven from convertible debt |
|
$ |
- |
|
|
$ |
634,477 |
|
Equipment
purchased with notes payable |
|
$ |
44,503 |
|
|
$ |
- |
|
Preferred
dividend accrued |
|
$ |
250,000 |
|
|
$ |
- |
|
Non-GAAP Financial Information:Adjusted EBITDA,
a non-GAAP term, is used by management to evaluate, assess and
benchmark our operational results. The Company uses adjusted EBITDA
as a supplement measure to review the Company’s performance and
should not be considered an alternative to net income, operating
income, cash flow from operating activities or any other measure of
financial performance or liquidity presented in accordance with
GAAP. Adjusted EBITDA excludes some, but not all, items that
affect net income and operating income. The Company’s
non-GAAP measures may not be comparable to similarly titled
measures of other organizations because other organizations may not
calculate such other non-GAAP measures in the same manner.
Adjusted EBITDA is defined as net loss with adjustments for
depreciation and amortization, impairment, interest expense,
interest forgiven, income tax provision, foreign exchange, other
expenses, non-cash stock-based compensation expense and certain
special charges as noted below.
ECO-STIM ENERGY SOLUTIONS,
INC.
RECONCILIATION NET LOSS TO ADJUSTED
EBITDA
The following table presents a reconciliation of net loss
to adjusted EBITDA, which is the most comparable non-GAAP
performance measure, for each of the periods indicated:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net loss |
|
|
(16,576,461 |
) |
|
|
(6,147,834 |
) |
|
|
(29,436,977 |
) |
|
|
(11,176,859 |
) |
Depreciation and
amortization |
|
|
5,566,719 |
|
|
|
1,422,719 |
|
|
|
10,694,582 |
|
|
|
2,764,511 |
|
Impairment |
|
|
3,685,445 |
|
|
|
- |
|
|
|
3,685,445 |
|
|
|
- |
|
Interest expenses |
|
|
528,022 |
|
|
|
94,011 |
|
|
|
948,712 |
|
|
|
1,644,599 |
|
Interest forgiven |
|
|
- |
|
|
|
(634,477 |
) |
|
|
- |
|
|
|
(634,477 |
) |
Provision for income
taxes |
|
|
(16,375 |
) |
|
|
- |
|
|
|
(16,375 |
) |
|
|
(633,260 |
) |
Foreign exchange |
|
|
734,158 |
|
|
|
85,880 |
|
|
|
1,049,905 |
|
|
|
25,058 |
|
Other expenses |
|
|
221,074 |
|
|
|
20,672 |
|
|
|
358,225 |
|
|
|
29,112 |
|
EBITDA |
|
|
(5,857,418 |
) |
|
|
(5,159,029 |
) |
|
|
(12,716,483 |
) |
|
|
(7,981,316 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based
compensation |
|
|
715,069 |
|
|
|
423,188 |
|
|
|
1,366,933 |
|
|
|
551,360 |
|
Special charges * |
|
|
901,578 |
|
|
|
- |
|
|
|
901,578 |
|
|
|
- |
|
Adjusted EBITDA |
|
|
(4,240,771 |
) |
|
|
(4,735,841 |
) |
|
|
(10,447,972 |
) |
|
|
(7,429,956 |
) |
* Special charges related to the combination of our two U.S.
fleets into our “super fleet” and legal fees.
Reportable Segment Information (Unaudited)
|
|
Three Months |
|
|
Six Months |
|
|
|
Ended June 30, |
|
|
Ended June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
$ |
3,195,482 |
|
|
$ |
5,434,937 |
|
|
$ |
8,291,100 |
|
|
$ |
7,997,594 |
|
United States (1) |
|
|
15,015,646 |
|
|
|
3,092,722 |
|
|
|
27,698,872 |
|
|
|
3,092,722 |
|
Total Revenue |
|
$ |
18,211,128 |
|
|
$ |
8,527,659 |
|
|
$ |
35,989,972 |
|
|
$ |
11,090,316 |
|
Cost of
services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
|
3,079,662 |
|
|
|
6,798,790 |
|
|
|
8,466,507 |
|
|
|
10,170,782 |
|
United States |
|
|
17,457,300 |
|
|
|
4,521,455 |
|
|
|
33,546,481 |
|
|
|
4,889,349 |
|
Total cost of services |
|
$ |
20,536,962 |
|
|
$ |
11,320,245 |
|
|
$ |
42,012,988 |
|
|
$ |
15,060,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
|
115,820 |
|
|
|
(1,363,853 |
) |
|
|
(175,407 |
) |
|
|
(2,173,188 |
) |
United States |
|
|
(2,441,654 |
) |
|
|
(1,428,733 |
) |
|
|
(5,847,609 |
) |
|
|
(1,796,627 |
) |
Total gross margin |
|
$ |
(2,325,834 |
) |
|
$ |
(2,792,586 |
) |
|
$ |
(6,023,016 |
) |
|
$ |
(3,969,815 |
) |
(1 |
) |
U.S. activity began in February 2017 with start-up
expenses being incurred. The Company began recognizing U.S. revenue
in late May 2017. Intersegment transactions included in revenues
were not significant for any of the periods presented. |
|
|
(2 |
) |
Gross margin is defined as revenues less costs of
services. Cost of services excludes selling, general and
administrative expenses, research and development expenses and
depreciation and amortization expense. |
Contact:
investorrelations@ecostim-es.com
281-531-7200