Flotek Industries Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Flotek Industries Inc. has filed its annual report for the fiscal year 2023.</b>

AI Summary

FLOTEK INDUSTRIES INC/CN/ (FTK) filed a Annual Report (10-K) with the SEC on March 15, 2024. Flotek Industries Inc. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in Miscellaneous Chemical Products (SIC 2890). Flotek Industries Inc. is incorporated in Delaware. The company's business address is 5775 N. Sam Houston Parkway W., Suite 400, Houston, TX 77086.

Why It Matters

For investors and stakeholders tracking FLOTEK INDUSTRIES INC/CN/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Flotek's financial performance, business operations, and risk factors for the fiscal year 2023. Investors and stakeholders can use this report to assess the company's financial health, strategic direction, and potential risks moving forward.

Risk Assessment

Risk Level: medium — FLOTEK INDUSTRIES INC/CN/ shows moderate risk based on this filing. The company operates in the Miscellaneous Chemical Products industry, which can be subject to market volatility and regulatory changes, as indicated by its SIC code and the nature of a 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Flotek Industries Inc.'s performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-03-15 — Filing Date (FILED AS OF DATE)
• 2890 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 0.1667 — EPS (Earnings Per Share (implied from context))

Key Players & Entities

• FLOTEK INDUSTRIES INC/CN/ (company) — FILER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240315 (date) — FILED AS OF DATE
• 0000928054 (company) — CENTRAL INDEX KEY
• 2890 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (jurisdiction) — STATE OF INCORPORATION
• 7138499911 (phone) — BUSINESS PHONE
• FTK (ticker) — tk

FAQ

Industry Context

Flotek Industries Inc. operates within the Miscellaneous Chemical Products sector, a segment of the broader chemical industry.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information.

What Investors Should Do

1. Analyze Flotek's revenue streams and cost structure for FY2023.
2. Identify any new or evolving risk factors presented in the filing.
3. Assess the company's liquidity and debt position as of December 31, 2023.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. Previous filings would need to be compared for year-over-year changes.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value FTK New York Stock Exchange
• $10 million — roviding for a 24-month term with up to $10 million of initial credit availability for elig
• $3.8 million — lability under the ABL was increased by $3.8 million to a total of $13.8 million. In order
• $13.8 million — increased by $3.8 million to a total of $13.8 million. In order to regain compliance with Ne
• $20.1 m — 2023 reflect Contract Shortfall Fees of $20.1 million, of which $10.0 million was colle
• $10.0 million — ortfall Fees of $20.1 million, of which $10.0 million was collected through March 11, 2024, w

Filing Documents

• ftk-20231231.htm (10-K) — 1865KB
• ex1046emplagreement-ablake.htm (EX-10.46) — 145KB
• exhibit211subsdiaries.htm (EX-21.1) — 3KB
• exhibit231-flotekconsent.htm (EX-23.1) — 4KB
• exhibit31-1q42023.htm (EX-31.1) — 10KB
• exhibit31-2q42023.htm (EX-31.2) — 10KB
• exhibit32-1q42023.htm (EX-32.1) — 4KB
• exhibit32-2q42023.htm (EX-32.2) — 4KB
• exhibit97-flotekclawbackpo.htm (EX-97) — 37KB
• image_1.jpg (GRAPHIC) — 3KB
• 0000928054-24-000023.txt (&nbsp;) — 12256KB
• ftk-20231231.xsd (EX-101.SCH) — 85KB
• ftk-20231231_cal.xml (EX-101.CAL) — 133KB
• ftk-20231231_def.xml (EX-101.DEF) — 489KB
• ftk-20231231_lab.xml (EX-101.LAB) — 1011KB
• ftk-20231231_pre.xml (EX-101.PRE) — 805KB
• ftk-20231231_htm.xml (XML) — 1873KB

Forward-Looking Statements 3

Forward-Looking Statements 3 PART I 3 Item 1.

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 20

Cybersecurity 25

Item 1C. Cybersecurity 25 Item 2.

Properties

Properties 21 Item 3.

Legal Proceedings

Legal Proceedings 21 Item 4. Mine Safety Disclosures 21 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. [Reserved] 22 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 30 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 68 Item 9A.

Controls and Procedures

Controls and Procedures 68 Item 9B. Other Information 69 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 69 PART III Item 10. Directors, Executive Officers and Corporate Governance 70 Item 11.

Executive Compensation

Executive Compensation 70 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 70 Item 13. Certain Relationships and Related Transactions, and Director Independence 70 Item 14. Principal Accountant Fees and Services 70 PART IV Item 15. Exhibits and Financial Statement Schedules 71

Form 10-K Summary 74

Item 16. Form 10-K Summary 74

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "Annual Report"), and in particular, Part II, Item 7 — "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent the current assumptions and beliefs regarding future events of Flotek Industries, Inc. ("Flotek" or the "Company"), many of which, by their nature, are inherently uncertain and outside the Company's control. Such statements include estimates, projections, and statements related to the Company's business plan, objectives, expected operating results, and assumptions upon which those statements are based. The forward-looking statements contained in this Annual Report are based on information available as of the date of this Annual Report. The forward-looking statements relate to future industry trends and economic conditions, forecast performance or results of current and future initiatives and the outcome of contingencies and other uncertainties that may have a significant impact on the Company's business, future operating results and liquidity. These forward-looking statements generally are identified by words including, but not limited to, "anticipate," "believe," "estimate," "commit," "budget," "aim," "potential," "schedule," "continue," "intend," "expect," "plan," "forecast," "target," "think," "likely," "project" and similar expressions, or future-tense or conditional constructions such as "will," "may," "should," "could" and "would," or the negative thereof or other variations thereon or comparable terminology. The Company cautions that these statements are merely predictions and are not to be considered guarantees of future performance. Forward-looking statements may also include statements regarding the anticipated performance under long-

Business

Item 1. Business. General Flotek creates unique solutions to reduce the environmental impact of energy on air, water, land and people. A technology-driven, specialty green chemistry and data company, Flotek helps customers across industrial and commercial markets improve their environmental performance. The Company serves specialty chemistry needs for both domestic and international energy markets. The Company's Chemistry Technologies ("CT") segment designs, develops, manufactures, packages and distributes green, specialty chemicals that help customers improve their return on invested capital, lower operational costs and realize tangible environmental benefits aimed at enhancing the profitability of hydrocarbon producers. The Company's Data Analytics ("DA") segment aims to enable users to maximize the value of their hydrocarbon associated processes by providing analytics associated with their hydrocarbon streams in seconds rather than minutes or days. The real-time access to information prevents waste, reduces reprocessing and allows users to pursue automation of their hydrocarbon streams to increase their profitability. The Company was initially incorporated under the laws of the Province of British Columbia in 1985. In October 2001, the Company changed its corporate domicile to the State of Delaware. In December 2007, the Company's common stock began trading on the New York Stock Exchange ("NYSE") under the stock ticker symbol "FTK." Annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") are posted to the Company's website, www.flotekind.com , as soon as practicable subsequent to electronically filing or furnishing to the SEC. Information contained in the Company's website is not to be considered as part of any regulatory filing. As used herein, "Flotek," the "Company

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View this 10-K filing on SEC EDGAR