Stabilis Solutions Q2 2024: BOMAY JV Accretion Noted

TL;DR

Stabilis Solutions Q2 10-Q shows $65k accretion from BOMAY JV for H1 2024/2023.

AI Summary

Stabilis Solutions, Inc. reported its Q2 2024 results, filing a 10-Q on August 7, 2024. The company's initial investment in BOMAY, a joint venture, resulted in a basis difference accounted for under ASC 805. This difference is being accreted over nine years, with Stabilis Solutions recognizing approximately $65 thousand in accretion for both the six months ended June 30, 2024, and June 30, 2023.

Why It Matters

This filing details the accounting treatment for a joint venture investment, impacting the company's reported earnings and asset values.

Risk Assessment

Risk Level: low — The filing primarily concerns accounting for a joint venture and does not indicate significant new operational or financial risks.

Key Numbers

• $65 thousand — Accretion from BOMAY JV (Recognized for the six months ended June 30, 2024 and 2023)
• 9 years — Expected life of BOMAY JV (Period over which the basis difference is being accreted)
• 40% — Stabilis's share of BOMAY's equity (Ownership stake in the joint venture)

Key Players & Entities

• Stabilis Solutions, Inc. (company) — Filer of the 10-Q
• BOMAY (company) — Joint venture mentioned in the filing
• ASC 805 (other) — Accounting standard applied to BOMAY investment
• $65 thousand (dollar_amount) — Accretion amount for the six months ended June 30, 2024 and 2023
• June 30, 2024 (date) — End of reporting period for accretion

FAQ

Filing Documents

• slng20240630_10q.htm (10-Q) — 1038KB
• ex_680480.htm (EX-31.1) — 14KB
• ex_680481.htm (EX-31.2) — 14KB
• ex_680482.htm (EX-32.1) — 10KB
• logo01.jpg (GRAPHIC) — 3KB
• 0001437749-24-025209.txt ( ) — 5297KB
• slng-20240630.xsd (EX-101.SCH) — 49KB
• slng-20240630_cal.xml (EX-101.CAL) — 43KB
• slng-20240630_def.xml (EX-101.DEF) — 319KB
• slng-20240630_lab.xml (EX-101.LAB) — 266KB
• slng-20240630_pre.xml (EX-101.PRE) — 350KB
• slng20240630_10q_htm.xml (XML) — 794KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income (Loss) 6 Condensed Consolidated Statements of Stockholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 4.

Controls and Procedures

Controls and Procedures 23

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 5. Other Information 23 Item 6. Exhibits 24

Signatures

Signatures 25 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ("this Report") includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements represent intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks and uncertainties and other factors. These statements may relate to, but are not limited to, information or assumptions about us, our capital and other expenditures, dividends, financing plans, capital structure, cash flow, pending legal and regulatory proceedings and claims, including environmental matters, future economic performance, operating income, cost savings, and management's plans, strategies, goals and objectives for future operations and growth. These forward-looking statements generally are accompanied by words such as "intend," "anticipate," "believe," "estimate," "expect," "should," "seek," "project," "plan" or similar expressions. Any statement that is not a historical fact is a forward-looking statement. It should be understood that these forward-looking statements are necessary estimates reflecting the best judgment of senior management, not guarantees of future performance. Many of the factors that impact forward-looking statements are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements as described in Part I. "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("the SEC") on March 7, 2024, as well as any additional risk factors identified and described in Part II. "Item 1A. Risk Factors" of this Report. We undertake no obligation to update or revise any forward-looking st

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. Stabilis Solutions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, in thousands, except share and per share data) June 30, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 11,483 $ 5,374 Accounts receivable, net 5,933 7,752 Inventories, net 155 169 Prepaid expenses and other current assets 1,325 1,677 Total current assets 18,896 14,972 Property, plant and equipment: Cost 110,426 110,646 Less accumulated depreciation ( 62,057 ) ( 61,167 ) Property, plant and equipment, net 48,369 49,479 Goodwill 4,314 4,314 Investments in foreign joint ventures 10,541 12,009 Right-of-use assets and other noncurrent assets 453 525 Total assets $ 82,573 $ 81,299 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 6,607 $ 5,707 Accrued liabilities 3,614 4,166 Current portion of long-term notes payable 1,216 1,682 Current portion of finance and operating lease obligations 82 164 Total current liabilities 11,519 11,719 Long-term notes payable, net of current portion and debt issuance costs 7,378 7,747 Long-term portion of finance and operating lease obligations — 21 Total liabilities 18,897 19,487 Commitments and contingencies (Note 10) Stockholders' Equity: Preferred stock; $ 0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at June 30, 2024 and December 31, 2023 — — Common stock; $ 0.001 par value, 37,500,000 shares authorized, 18,585,014 and 18,573,391 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively 19 19 Additional paid-in capital 102,839 102,057 Accumulated other comprehensive loss ( 432 ) ( 18 ) Accumulated deficit ( 38,750 ) ( 40,246 ) Total stockholders' equity 63,676 61,812 Total liabilities and stockholders' equity $ 82,573 $ 81,299 The accompanying notes are an integral part of the Condensed Consolidated

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