Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting

9 – Segment Reporting

 

We report the results of each of our two reportable segments, beginning with the second quarter of 2017, in accordance with ASC 280, Segment Reporting. Our Chief Executive Officer evaluates the results of operations on a consolidated as well as a segment level and is the person responsible for the final assessment of performance and making key operating decisions. Discrete financial information is available for each of the segments, and the operating results of each of the operating segments are used for performance evaluation and resource allocations.

 

Our two operating segments are managed through operating segments that are aligned with our geographic operating locations of Argentina and the U.S. We also report certain corporate and other non-operating activities under the heading “Corporate and Other”, which primarily reflects corporate personnel and activities, incentive compensation programs and other costs.

 

We account for intersegment sales at prices that we generally establish by reference to similar transactions with unaffiliated customers. Reporting segments are measured based on gross margin, which is defined as revenues reduced by total cost of services. Cost of services excludes depreciation and amortization expense.

 

Summarized financial information is shown in the following tables:

 

   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
    2018     2017     2018     2017  
                         
Revenues(1):                                
Argentina   $ 2,428,907     $ 5,750,853     $ 10,720,007     $ 13,748,447  
United States     12,503,599       7,369,376       40,202,471       10,462,098  
Total revenues   $ 14,932,506     $ 13,120,229     $ 50,922,478     $ 24,210,545  
                                 
Cost of services(1,2):                                
Argentina   $ 2,423,860     $ 7,054,471     $ 10,890,367     $ 17,225,253  
United States     14,757,813       7,820,487       48,304,293       12,709,963  
Total cost of services   $ 17,181,673     $ 14,874,958     $ 59,194,660     $ 29,935,216  
                                 
Gross margin(1,2):                                
Argentina   $ 5,047     $ (1,303,618 )   $ (170,360 )   $ (3,476,806 )
United States     (2,254,214 )     (451,111 )     (8,101,822 )     (2,247,865 )
Total gross margin   $ (2,249,167 )   $ (1,754,729 )   $ (8,272,182 )   $ (5,724,671 )
                                 
Corporate and Other:   $ 7,210,806     $ 2,949,010     $ 16,261,116     $ 8,024,675  
                                 
Capital expenditures:                                
Argentina   $     $ 230,826     $ 2,846     $ 1,584,444  
United States     620,570       16,561,322       6,134,877       22,917,672  
Corporate and Other           61,365       1,040       193,932  
Total capital expenditures   $ 620,570     $ 16,853,513     $ 6,138,763     $ 24,696,048  
                                 
Depreciation and amortization:                                
Argentina   $ 1,553,562     $ 1,338,187     $ 4,333,808     $ 3,947,056  
United States     4,488,313       555,348       12,144,340       631,017  
Corporate and Other     31,848       42,789       290,157       122,762  
Total depreciation and amortization   $ 6,073,723     $ 1,936,324     $ 16,768,305     $ 4,700,835  
                                 
Impairment:                                
Argentina   $     $     $     $  
United States     19,665,000             23,350,445        
Corporate and Other                        
Total impairment   $ 19,665,000     $     $ 23,350,445     $  

 

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, and depreciation and amortization expense.