10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 10-Q

____________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2021

☐ TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to

Commission file number. 001-40364

____________________

STABILIS SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

____________________

Florida	59-3410234
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

11750 Katy Freeway, Suite 900, Houston, TX 77079

(Address of principal executive offices, including zip code)

(832) 456-6500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $.001 par value	SLNG	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Act: 

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of November 10, 2021, there were 17,691,268 outstanding shares of our common stock, par value $.001 per share.

STABILIS SOLUTIONS, INC. AND SUBSIDIARIES

FORM 10-Q Index

For the Quarterly Period Ended September 30, 2021

		Page
	Part I. Financial Information
Item 1.	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	22
Item 4.	Controls and Procedures	34
	Part II. Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
Signatures		37

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This document includes statements that constitute forward-looking statements within the meaning of the federal securities laws. These statements are subject to risks and uncertainties. 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, our recent business combination, 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 necessarily estimates reflecting the best judgment of senior management, not guarantees of future performance. They are subject to a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described in Part II. “Item 1A. Risk Factors” in this document.

Forward-looking statements represent intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors. Many of those factors are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. In addition to the risk factors and other cautionary statements described in Part II. “Item 1A. Risk Factors” in this document, the factors include:

•our ability to execute our business strategy;

•our limited operating history;

•our ability to satisfy our liquidity needs, including our ability to generate sufficient liquidity or cash flow from operations and our ability to obtain additional financing to affect our strategy;

•loss of one or more of our customers;

•credit and performance risk of our customers and contractual counterparties;

•cyclical or other changes in the demand for and price of LNG and natural gas;

•operational, regulatory, environmental, political, legal and economic risks pertaining to the construction and operation of our facilities;

•the effects of current and future worldwide economic conditions and demand for oil and natural gas and power system equipment and services;

•hurricanes or other natural or man-made disasters;

•public health crises, such as the ongoing COVID-19 outbreak, which could further deteriorate economic conditions;

•dependence on contractors for successful completions of our energy related infrastructure;

•reliance on third party engineers;

•competition from third parties in our business;

•failure of LNG to be a competitive source of energy in the markets in which we operate, and seek to operate;

•increased labor costs, and the unavailability of skilled workers or our failure to attract and retain qualified personnel;

•major health and safety incidents relating to our business;

•failure to obtain and maintain approvals and permits from governmental and regulatory agencies;

•changes to health and safety, environmental and similar laws and governmental regulations that are adverse to our operations;

•changes in regulatory, geopolitical, social, economic, tax or monetary policies and other factors resulting from the transition to the Biden administration and Democratic control of Congress;

•volatility of the market price of our common stock;

•our ability to successfully integrate acquisitions; and

•future benefits to be derived from our investments in technologies, joint ventures and acquired companies.

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements contained herein. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. All forward-looking statements included in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

In this Quarterly Report on Form 10-Q, we may rely on and refer to information from market research reports, analyst reports and other publicly available information. Although we believe that this information is reliable, we cannot guarantee the accuracy and completeness of this information, and we have not independently verified it.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except share and per share data)

	September 30, 2021		December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$	2,938	$	1,814
Accounts receivable, net	7,328		5,620
Inventories, net	424		226
Prepaid expenses and other current assets	4,298		3,111
Due from related parties	—		42
Total current assets	14,988		10,813
Property, plant and equipment:
Cost	100,758		90,422
Less accumulated depreciation	(44,900)		(38,384)
Property, plant and equipment, net	55,858		52,038
Right-of-use assets	128		786
Goodwill	4,453		4,453
Investments in foreign joint ventures	11,923		11,897
Other noncurrent assets	319		326
Total assets	$	87,669	$	80,313
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of notes payable	$	1,379	$	1,112
Current portion of notes payable - related parties	2,580		3,351
Current portion of finance lease obligation	16		—
Current portion of finance lease obligation - related parties	—		648
Current portion of operating lease obligations	206		362
Accrued liabilities	7,432		4,361
Accounts payable	5,163		4,395
Total current liabilities	16,776		14,229
Long-term notes payable, net of current portion	6,772		682
Long-term notes payable, net of current portion - related parties	919		2,726
Long-term portion of finance lease obligations	68		—
Long-term portion of operating lease obligations	314		490
Other noncurrent liabilities	98		156
Total liabilities	24,947		18,283
Commitments and contingencies (Note 12)
Stockholders’ Equity:
Preferred Stock; $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	—		—
Common stock; $0.001 par value, 37,500,000 shares authorized, 17,691,268 and 16,896,626 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	18		17
Additional paid-in capital	97,373		91,278
Accumulated other comprehensive income	172		122
Accumulated deficit	(34,841)		(29,387)
Total stockholders’ equity	62,722		62,030
Total liabilities and stockholders’ equity	$	87,669	$	80,313

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except share and per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue
LNG product	$	14,420	$	6,594	$	37,927	$	18,609
Rental, service and other	3,359		1,073		10,364		5,613
Power delivery	1,925		1,352		5,129		3,638
Total revenues	19,704		9,019		53,420		27,860
Operating expenses:
Costs of LNG product	11,988		5,044		30,154		13,692
Costs of rental, service and other	1,917		808		5,649		3,381
Costs of power delivery	1,542		996		3,994		3,131
Selling, general and administrative expenses	6,155		2,338		13,195		7,892
Gain from disposal of fixed assets	—		—		(24)		(11)
Depreciation expense	2,324		2,266		6,767		6,802
Impairment of right-of-use lease asset	376		—		376		—
Total operating expenses	24,302		11,452		60,111		34,887
Loss from operations before equity income	(4,598)		(2,433)		(6,691)		(7,027)
Net equity income from foreign joint ventures' operations:
Income from equity investments in foreign joint ventures	308		642		1,267		1,529
Foreign joint ventures' operations related expenses	(62)		(69)		(192)		(182)
Net equity income from foreign joint ventures' operations	246		573		1,075		1,347
Loss from operations	(4,352)		(1,860)		(5,616)		(5,680)
Other income (expense):
Interest expense, net	(130)		(2)		(224)		(28)
Interest expense, net - related parties	(120)		(199)		(441)		(681)
Other income (loss)	70		(31)		1,183		(6)
Total other income (expense)	(180)		(232)		518		(715)
Loss before income tax expense	(4,532)		(2,092)		(5,098)		(6,395)
Income tax expense	93		41		356		251
Net loss	$	(4,625)	$	(2,133)	$	(5,454)	$	(6,646)
Common Stock Data:
Net loss per common share:
Basic and diluted	$	(0.26)	$	(0.13)	$	(0.32)	$	(0.39)
Weighted average number of common shares outstanding:
Basic and diluted	17,578,653		16,896,626		17,202,631		16,867,939

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

5

Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net loss	$	(4,625)	$	(2,133)	$	(5,454)	$	(6,646)
Foreign currency translation adjustment	(150)		424		50		(111)
Total comprehensive loss	$	(4,775)	$	(1,709)	$	(5,404)	$	(6,757)

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

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Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited, in thousands, except share data)

	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total
	Shares	Amount
Balance at December 31, 2020	16,896,626	$	17	$	91,278	$	122	$	(29,387)	$	62,030
Stock-based compensation	—	—		162		—		—		162
Net income	—	—		—		—		175		175
Other comprehensive loss	—	—		—		(202)		—		(202)
Balance at March 31, 2021	16,896,626	17		91,440		(80)		(29,212)		62,165
Common stock issued	101,284	—		—		—		—		—
Stock-based compensation	—	—		122		—		—		122
Shares issued in asset acquisition	500,000	1		3,794		—		—		3,795
Net loss	—	—		—		—		(1,004)		(1,004)
Other comprehensive income	—	—		—		402		—		402
Balance at June 30, 2021	17,497,910	18		95,356		322		(30,216)		65,480
Common stock issued	250,000	—		—		—		—		—
Stock-based compensation	—	—		2,447		—		—		2,447
Employee tax payments from restricted stock withholdings	(56,642)	—		(430)		—		—		(430)
Net loss	—	—		—		—		(4,625)		(4,625)
Other comprehensive loss	—	—		—		(150)		—		(150)
Balance at September 30, 2021	17,691,268	$	18	$	97,373	$	172	$	(34,841)	$	62,722

	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total
	Shares	Amount
Balance at December 31, 2019	16,800,612	$	17	$	90,748	$	(291)	$	(22,631)	$	67,843
Common stock issued	34,706	—		—		—		—		—
Stock-based compensation	—	—		19		—		—		19
Net loss	—	—		—		—		(1,050)		(1,050)
Other comprehensive loss	—	—		—		(619)		—		(619)
Balance at March 31, 2020	16,835,318	17		90,767		(910)		(23,681)		66,193
Common stock issued	61,308	—		—		—		—		—
Stock-based compensation	—	—		139		—		—		139
Net loss	—	—		—		—		(3,463)		(3,463)
Other comprehensive income	—	—		—		84		—		84
Balance at June 30, 2020	16,896,626	17		90,906		(826)		(27,144)		62,953
Stock-based compensation	—	—		186		—		—		186
Net loss	—	—		—		—		(2,133)		(2,133)
Other comprehensive income	—	—		—		424		—		424
Balance at September 30, 2020	16,896,626	$	17	$	91,092	$	(402)	$	(29,277)	$	61,430

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

7

Stabilis Solutions, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

	Nine Months Ended September 30,
	2021		2020
Cash flows from operating activities:
Net loss	$	(5,454)	$	(6,646)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	6,767		6,802
Stock-based compensation expense	2,731		344
Bad debt expense	—		144
Gain on disposal of fixed assets	(24)		(11)
Gain on extinguishment of debt	(1,086)		—
Income from equity investment in joint venture	(1,267)		(1,529)
Distributions from equity investment in joint venture	1,387		2,054
Impairment of right-of-use lease asset	376		—
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable	(1,708)		3,629
Due to (from) related parties	42		—
Inventories	(173)		48
Prepaid expenses and other current assets	91		(396)
Accounts payable and accrued liabilities	3,878		(2,085)
Other	(82)		113
Net cash provided by operating activities	5,478		2,467
Cash flows from investing activities:
Acquisition of fixed assets	(6,948)		(327)
Proceeds on sales of fixed assets	258		12
Net cash used in investing activities	(6,690)		(315)
Cash flows from financing activities:
Proceeds from borrowings on short- and long-term notes payable	7,228		1,856
Payments on short- and long-term notes payable	(650)		(644)
Payments on notes payable and financed leases from related parties	(3,277)		(3,776)
Payment of debt issuance costs	(420)		—
Employee tax payments from restricted stock withholdings	(430)		—
Net cash provided by (used in) financing activities	2,451		(2,564)
Effect of exchange rate changes on cash	(115)		(157)
Net increase (decrease) in cash and cash equivalents	1,124		(569)
Cash and cash equivalents, beginning of period	1,814		3,979
Cash and cash equivalents, end of period	$	2,938	$	3,410
Supplemental disclosure of cash flow information:
Interest paid	$	645	$	834
Income taxes paid	228		210
Non-cash investing and financing activities:
Common stock issued to acquire fixed assets	$	3,795	$	—
Insurance premium financing	1,278		—
Equipment acquired under capital leases	104		—

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements

8

STABILIS SOLUTIONS, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Overview and Basis of Presentation

Overview

Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) produce, provide turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (“LNG”) and hydrogen to multiple end markets across North America. The Company also distributes LNG and hydrogen from third parties and provides services, transportation, and equipment to customers.

The Company is a supplier of LNG and hydrogen solutions to customers in diverse end markets, including aerospace, agriculture, industrial, utility, pipeline, mining, energy, remote clean power, and high horsepower transportation markets in North America and provides turnkey fuel solutions to help industrial users of propane, diesel and other crude-based fuel products convert to LNG, which may result in reduced fuel costs and an improved environmental footprint. Stabilis is vertically integrated from LNG production through distribution including cryogenic equipment rental and field services. Stabilis opened its 100,000 gallons per day (“gpd”) LNG production facility in George West, Texas in January 2015 to service industrial and oilfield customers in Texas and the greater Gulf Coast region. The Company owns a second liquefaction plant capable of producing 25,000 gpd that is currently not in operation.

On June 1, 2021 the Company acquired a third LNG production facility in Port Allen, Louisiana. The plant is capable of producing 30,000 gpd.

The Company also provides power delivery equipment and services through its subsidiary in Brazil, M&I Electric Brazil Sistemas e Servicios em Energia LTDA (“M&I Brazil”) and its 40% interest in a joint venture in China, BOMAY Electric Industries Co., Ltd. (“BOMAY”).

Basis of Presentation

The accompanying unaudited, interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") include our accounts and those of our subsidiaries and, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in the notes to consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to prevent the information presented herein from being misleading. The Condensed Consolidated Financial Statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020 included in the Company's Annual Report on Form 10-K, as filed on March 16, 2021.

All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements, all dollar amounts in tabulations are in thousands, unless otherwise indicated.

The accompanying Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is required to make certain disclosures if it concludes that there is substantial doubt about the entity’s ability to continue as a going concern within one year from the date of the issuance of these financial statements. The Company has incurred recurring operating losses, and the Company is subject to business risks and uncertainties inherent in the current LNG industry. There is no assurance that the Company will be able to generate sufficient revenues in the future to sustain itself or to support future growth.

The Company's working capital and business risks within the LNG industry were reviewed by management to determine if there was substantial doubt as to the Company’s ability to continue as a going concern. Management concluded that its plan to address the Company’s liquidity issues would allow it to continue as a going concern. The Company has recently experienced its highest ever year-to-date revenue, including a resumption of activity with existing customers as well as new revenue opportunities, particularly in Mexico and with power generation customers. On April 8, 2021, the Company obtained a new advancing loan facility, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, in the aggregate principal amount of up to $10.0 million, of which $7.0 million was drawn and outstanding as of September 30, 2021.

9

The Company's management believes that current working capital, access to its advancing loan facility and revenue growth of the business will generate sufficient cash flows to fund the business for the next 12 months.

Reclassifications

Presentation of certain prior year amounts have been condensed on the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows herein to conform to current period presentation. Such reclassifications had no impact on the consolidated financial position, results of operations or cash flows.

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include the carrying amount of contingencies, valuation allowances for receivables, inventories, and deferred income tax assets, valuations assigned to assets and liabilities in business combinations, and impairments of long-lived assets. Actual results could differ from those estimates, and these differences could be material to the Condensed Consolidated Financial Statements.

Income Taxes

The Company records income taxes for interim periods based on an estimated annual effective tax rate. The estimated annual effective tax rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, the timing of distributions on foreign investments from which foreign taxes are withheld, and changes to actual or forecasted permanent book to tax differences.

The Company’s effective tax rate for the nine months ended September 30, 2021 and 2020 was 7.0% and 3.9%, respectively. The 2021 rate reflects state and foreign income taxes. No U.S. federal income tax benefit was recorded for the periods presented as any net U.S. deferred tax assets generated from operating losses were offset by a change in the Company's valuation allowance on net deferred tax assets.

2. Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU No. 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes and also improves consistent application by clarifying and amending existing guidance. ASU No. 2019-12 was adopted by the Company effective January 1, 2021. The adoption of this standard had no impact on our unaudited interim condensed consolidated financial position or results of operations.

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU No. 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU No. 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU No. 2020-04 on our consolidated financial position and results of operations.

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3. Revenue Recognition

Disaggregated Revenues

The table below presents revenue disaggregated by source, for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2021		2020		2021		2020
LNG Product	$	14,420	$	6,594	$	37,927	$	18,609
Rental	2,712		737		8,039		4,012
Service	334		187		957		593
Power Delivery	1,925		1,352		5,129		3,638
Other	313		149		1,368		1,008
	$	19,704	$	9,019	$	53,420	$	27,860

The table below presents revenue disaggregated by geographic location, for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2021		2020		2021		2020
Brazil	$	1,925	$	1,352	$	5,129	$	3,638
Mexico	3,501		2,729		7,198		2,778
United States	14,278		4,938		41,093		21,444
	$	19,704	$	9,019	$	53,420	$	27,860

See Note 4—Business Segments, below, for additional disaggregation of revenue.

Contract Liabilities

The Company recognizes contract liabilities upon receipt of payments for which the performance obligations have not been fulfilled at the reporting date, resulting in deferred revenue. Contract liabilities are included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. The table below presents the changes in the Company’s contract liabilities for the nine months ended September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Balance at beginning of period	$	357	$	185
Cash received, excluding amounts recognized as revenue	283		777
Amounts recognized as revenue	(352)		(605)
Balance at end of period	$	288	$	357

The Company has no other material contract assets or liabilities and contract costs.

4. Business Segments

The Company’s revenues are derived from two operating segments: LNG and Power Delivery. The LNG segment supplies LNG to multiple end markets in North America and provides turnkey fuel solutions to help users of propane, diesel and other crude-based fuel products convert to LNG. The Power Delivery segment provides power delivery equipment and services in Brazil and through our BOMAY joint venture in China. The tables below present operating results by segment for the three and nine months ended September 30, 2021 and 2020 as well as their respective total assets at September 30, 2021 and December 31, 2020 (in thousands):

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	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	LNG		Power Delivery		Total		LNG		Power Delivery		Total
Revenues	$	17,779	$	1,925	$	19,704	$	48,291	$	5,129	$	53,420
Depreciation	2,284		40		2,324		6,653		114		6,767
Loss from operations before equity income	(4,441)		(157)		(4,598)		(6,013)		(678)		(6,691)
Net equity income from foreign joint ventures' operations	—		246		246		—		1,075		1,075
Income (loss) from operations	(4,441)		89		(4,352)		(6,013)		397		(5,616)
Interest expense, net	118		12		130		188		36		224
Interest expense, net - related parties	120		—		120		441		—		441
Income tax expense	93		—		93		356		—		356
Net income (loss)	(4,735)		110		(4,625)		(5,967)		513		(5,454)

	September 30, 2021
	LNG		Power Delivery		Total
Total assets	$	71,450	$	16,219	$	87,669

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	LNG		Power Delivery		Total		LNG		Power Delivery		Total
Revenues	$	7,667	$	1,352	$	9,019	$	24,222	$	3,638	$	27,860
Depreciation	2,237		29		2,266		6,706		96		6,802
Loss from operations before equity income	(2,179)		(254)		(2,433)		(5,898)		(1,129)		(7,027)
Net equity income from foreign joint ventures' operations	—		573		573		—		1,347		1,347
Income (loss) from operations	(2,179)		319		(1,860)		(5,898)		218		(5,680)
Interest expense, net	11		(9)		2		16		12		28
Interest expense, net - related parties	199		—		199		681		—		681
Income tax expense	41		—		41		41		210		251
Net income (loss)	(2,458)		325		(2,133)		(6,678)		32		(6,646)

	December 31, 2020
	LNG		Power Delivery		Total
Total assets	$	64,757	$	15,556	$	80,313

Our operating segments offer different products and services and are managed separately as business units. Cash, cash equivalents and investments are not managed centrally, so the gains and losses on foreign currency remeasurement, and interest and dividend income, are included in the segments’ results.

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5. Prepaid Expenses and Other Current Assets

The Company’s prepaid expenses and other current assets at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Prepaid LNG	$	51	$	90
Prepaid insurance	1,385		734
Prepaid supplier expenses	326		299
Other receivables	1,923		1,521
Deposits	360		285
Other	253		182
Total prepaid expenses and other current assets	$	4,298	$	3,111

6. Property, Plant and Equipment

The Company’s property, plant and equipment at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Liquefaction plants and systems	$	47,225	$	40,841
Real property and buildings	2,373		1,649
Vehicles and tanker trailers and equipment	49,556		47,179
Computer and office equipment	609		532
Construction in progress	964		191
Leasehold improvements	31		30
	100,758		90,422
Less: accumulated depreciation	(44,900)		(38,384)
	$	55,858	$	52,038

Depreciation expense for the nine months ended September 30, 2021 and 2020 both totaled $6.8 million respectively, of which all is included in the unaudited Condensed Consolidated Statements of Operations as its own and separate line item.

On June 1, 2021 the Company closed on the purchase of an LNG production facility in Port Allen, Louisiana. The acquisition included the LNG liquefaction facility, the related assets and real property. The Company paid consideration of $5.0 million in cash and 500,000 shares of Company common stock, subject to a registration rights agreement, which shares were valued at $3.8 million.

7. Investments in Foreign Joint Ventures

The Company holds a 40% interest in BOMAY Electric Industries Company, Ltd. (“BOMAY”), which builds electrical systems for sale in China. The majority partner in this foreign joint venture is Baoji Oilfield Machinery Co., Ltd. (a subsidiary of China National Petroleum Corporation), which owns 51%. The remaining 9% is owned by AA Energies, Inc. The Company made no sales to its joint venture during the three and nine months ended September 30, 2021 and 2020.

The Company accounts for its investment in BOMAY using the equity method of accounting. Under the equity method, the Company’s share of the joint venture operations earnings or losses is recognized in the condensed consolidated statements of operations as equity income (loss) from foreign joint venture operations. Joint venture income increases the carrying value of the joint venture and joint venture losses reduce the carrying value. Dividends received from the joint venture reduce the carrying value. The Company considers dividend distributions received from its equity method investments which do not exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in the accompanying Condensed Consolidated Statements of Cash flows.

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The tables below present a summary of BOMAY's assets and liabilities and equity at September 30, 2021 and December 31, 2020, and its operational results for the three and nine months ended September 30, 2021 and 2020 in U.S. dollars (in thousands, unaudited):

	September 30, 2021		December 31, 2020
Assets:
Total current assets	$	60,707	$	51,811
Total non-current assets	6,690		7,136
Total assets	$	67,397	$	58,947
Liabilities and equity:
Total liabilities	$	34,779	$	26,355
Total joint ventures’ equity	32,618		32,592
Total liabilities and equity	$	67,397	$	58,947

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue	$	10,040	$	17,641	$	43,261	$	44,844
Gross Profit	3,420		3,224		8,111		7,456
Earnings	688		1,663		2,923		3,662

The table below presents a summary of activity in our investment in BOMAY for the periods ended September 30, 2021 and December 31, 2020 in U.S. dollars (in thousands, unaudited):

	September 30, 2021		December 31, 2020
Investment in BOMAY (1)(2)
Initial investment	$	9,333	$	9,333
Undistributed earnings:
Balance at the beginning of the period	1,908		1,257
Equity in earnings	1,267		2,705
Dividend distributions	(1,387)		(2,054)
Balance at end of period	1,788		1,908
Foreign currency translation:
Balance at the beginning of the period	656		(69)
Change during the period	146		725
Balance at end of period	802		656
Total investment in BOMAY at end of period	$	11,923	$	11,897

(1)Accumulated statutory reserves in equity method investments of $2.66 million at September 30, 2021 and December 31, 2020 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”) regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

(2)The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.2 million will be accreted over the remaining seven year life of the joint venture. The Company accreted $97 thousand for both the nine months ended September 30, 2021 and 2020, which is included in income from equity investments in foreign joint ventures in the accompanying unaudited interim condensed consolidated statements of operations. As of September 30, 2021 and December 31, 2020, accumulated accretion totaled $280 thousand and $183 thousand, respectively.

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In accordance with our long-lived asset policy, when events or circumstances indicate the carrying amount of an asset may not be recoverable, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. In making this evaluation, a variety of quantitative and qualitative factors are considered including national and local economic, political and market conditions, industry trends and prospects, liquidity and capital resources and other pertinent factors. Based on this evaluation for this reporting period, the Company does not believe an impairment of our investment in BOMAY is necessary for the period ending September 30, 2021.

8. Accrued Liabilities

    The Company’s accrued liabilities at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Compensation and benefits	$	3,134	$	1,745
Professional fees	623		408
LNG fuel and transportation	2,507		1,151
Accrued interest	—		21
Contract liabilities	288		357
Other taxes payable	582		328
Other accrued liabilities	298		351
Total accrued liabilities	$	7,432	$	4,361

9. Debt

The Company’s carrying value of debt at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Unsecured promissory note	$	—	$	1,080
Secured term note, net of debt issuance costs	6,598		—
Secured term note payable - related party	—		1,077
Secured promissory note - related party	3,498		5,000
Insurance and other notes payable	1,554		714
Less: amounts due within one year	(3,959)		(4,463)
Total long-term debt	$	7,691	$	3,408

Unsecured Promissory Note

During 2020, the Company received loan proceeds of $1.1 million (the “PPP Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Under the terms of the PPP, all or a portion of the principal may be forgiven if the PPP Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities. In June 2021, the forgiveness of the PPP Loan was approved by the Small Business Administration in full and the PPP Loan has been forgiven. The Company recognized a gain on forgiveness of debt in the amount of $1.1 million which is included in other income (expense) in the accompanying unaudited interim condensed consolidated statements of operations.

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Secured Term Note

On April 8, 2021, the Company entered into a loan agreement (the “Loan Agreement”) with AmeriState Bank (“Lender”), as lender, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, to provide for an advancing loan facility in the aggregate principal amount of up to $10.0 million (the “AmeriState Loan”), of which $7.0 million was drawn and outstanding as of September 30, 2021. The AmeriState Loan, which is in the form of a term loan facility, matures on April 8, 2031 and bears interest at 5.75% per annum through April 8, 2026, and the U.S. prime lending rate plus 2.5% per annum thereafter. The AmeriState Loan provides that proceeds from borrowings may be used for working capital purposes at the Company’s liquefaction plant in George West, Texas and related fees and costs associated with the AmeriState Loan.

Upon an Event of Default (as defined in the Loan Agreement), the Lender may (i) terminate its commitment, (ii) declare the outstanding principal amount of the Advancing Notes (as defined in the Loan Agreement) due and payable, or (iii) exercise all rights and remedies available to Lender under the Loan Agreement.

On April 8, 2021, Mile High LNG LLC, Stabilis GDS, Inc., Stabilis LNG Eagle Ford LLC and Stabilis Energy Services, LLC, each a wholly owned subsidiary of the Company (collectively, “Debtor”), entered into a Security Agreement and Assignment (the “Security Agreement”) in favor of the Lender. The Security Agreement grants to Lender a first priority security interest in the collateral identified therein, which includes specific equipment collateral owned by the Company.

Repayment of Secured Term Note Payable - Related Party

The Company had a Secured Term Note Payable, as amended, with Chart Energy & Chemicals, Inc. (“Chart E&C”), who beneficially owns approximately 8.3% of our outstanding common stock. The note contained various covenants that limited the Company's ability to grant certain liens, incur additional indebtedness, guarantee or become contingently liable for obligations of any person except for those allowed by Chart E&C, merge or consolidate into or with a third party or engage in certain asset dispositions and acquisitions, pay dividends or make distributions, transact with affiliates, prepay indebtedness, and issue additional equity interests. Borrowings incurred interest on the outstanding principal at the rate of 3.0% plus the London interbank offered rate (3.15% at December 31, 2020). During the three months ended September 30, 2021, the Company repaid this debt in full totaling approximately $1.1 million.

Amendment of Secured Promissory Note - Related Party

On September 20, 2021, the Company amended its secured promissory note with M/G Finance Co., Ltd, a related party, to defer scheduled debt and interest payments for September through December 2021 for a period of one year, such payments to be included with the scheduled payments for September through December 2022. The secured promissory note is secured by certain equipment of the Company.

During the nine months ended September 30, 2021 and 2020, the Company recorded interest expense on debt as follows (in thousands):

	September 30, 2021		September 30, 2020
Unsecured promissory note	$	—	$	4
Secured term note	$	176	$	—
Secured term note payable - related party	22		57
Secured promissory note - related party	409		224
Insurance and other notes payable	41		24
Total interest expense on debt	$	648	$	309

Certain of the agreements governing our outstanding debt have certain covenants with which we must comply. As of September 30, 2021, we were in compliance with all of these covenants.

10. Leases

On July 30, 2021, the Company terminated its office lease with Millenium-Windfall Partners, Ltd for a fixed settlement of $0.4 million, payable in 43 monthly payments. In accordance with the termination, the Company was released from all future rights and obligations under the lease. In accordance with the termination of the lease, the Company recorded an impairment charge of $0.4 million related to its remaining right-of-use asset for this lease for the three and nine months ended September 30,

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2021. The Company also remeasured the lease obligation as of July 30, 2021 and the remaining obligation of $0.4 million under the termination settlement is included in the Company's liabilities at September 30, 2021. The table below summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2021 and December 31, 2020 (in thousands):

	Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Right-of-use assets	$	128	$	786
Finance lease assets	Property and equipment, net of accumulated depreciation	90		6,781
Total lease assets		$	218	$	7,567
Liabilities
Current
Operating	Current portion of operating lease obligations	$	206	$	362
Finance	Current portion of finance lease obligation	16		—
Finance	Current portion of finance lease obligation - related parties	—		648
Noncurrent
Operating	Long-term portion of operating lease obligation	314		490
Finance	Long-term portion of finance lease obligations	68		—
Total lease liabilities		$	604	$	1,500

The table below summarizes the components of lease expense for the three and nine months ended September 30, 2021 and 2020 (in thousands, unaudited):

Lease Cost	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Operating lease cost	Cost of sales	$	39	$	42	$	116	$	122
Operating lease cost	Selling, general and administrative expenses	75		4		198		185
Finance lease cost
Amortization of leased assets	Depreciation	5		294		14		879
Interest on lease liabilities	Interest expense	2		104		17		400
Net lease cost		$	121	$	444	$	345	$	1,586

On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur.

In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. These assets are included in the Company's property, plant and equipment, net on the Condensed Consolidated Balance Sheets and the purchase had no effect on the net book value of these assets.

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The schedule below presents the future minimum lease payments for our operating and finance lease obligations at September 30, 2021 (in thousands):

	Operating Leases		Finance Leases		Total
Remainder 2021	$	85	$	6	$	91
2022	181		25		206
2023	147		25		172
2024	131		41		172
2025	21		—		21
Thereafter	—		—		—
Total lease payments	565		97		662
Less: Interest	(45)		(13)		(58)
Present value of lease liabilities	$	520	$	84	$	604

Lease term and discount rates for our operating and finance lease obligations are as follows:

	September 30, 2021
Weighted-average remaining lease term (years)
Operating leases	2.7
Finance leases	2.3
Weighted-average discount rate
Operating leases	7.2%
Finance leases	10.7%

The table below summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 (in thousands):

	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	250	$	287
Financing cash flows from finance leases	668		2,640
Interest paid	35		400
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	1,163

11. Related Party Transactions

Other Purchases and Sales

During the nine months ended September 30, 2021 and 2020, the Company paid Applied Cryo Technologies, Inc. (“ACT”), a company owned 51% by Crenshaw Family Holdings, LP (“Crenshaw Family Holdings”), $530 thousand and $109 thousand, respectively, for equipment, repairs and services. Casey Crenshaw, the Company's controlling shareholder, is the beneficial owner of 25% of Crenshaw Family Holdings and is deemed to jointly control Crenshaw Family Holdings with family members. During the three months ended September 30, 2021 and 2020, the Company paid ACT $32 thousand and $36 thousand, respectively, for equipment repairs and services. The Company had $30 thousand of sales to ACT during the three and nine months ended September 30, 2021. The Company had no sales to ACT during the three and nine months ended September 30, 2020. The Company had $30 thousand and $2 thousand due from ACT included in accounts receivable on the unaudited condensed consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, the Company had $15 thousand and $121 thousand, respectively, due to ACT included in accounts payable on the unaudited condensed consolidated balance sheets.

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The Company purchases supplies and services from a subsidiary of The Modern Group. Casey Crenshaw is the beneficial owner of 25% of The Modern Group and is deemed to jointly control The Modern Group with family members. During the nine months ended September 30, 2021 and 2020, the Company made purchases of supplies and services from a subsidiary of The Modern Group totaling $848 thousand and $213 thousand, respectively. During the three months ended September 30, 2021 and 2020, the Company made purchases of supplies and services totaling $127 thousand and $18 thousand, respectively. The Company had $13 thousand of sales to The Modern Group during the three and nine months ended September 30, 2021 with no sales during the same period of 2020. The Company had an $11 thousand receivable due from The Modern Group at September 30, 2021. There was no receivable due from The Modern Group at December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company had $548 thousand and $582 thousand, respectively, due to a subsidiary of The Modern Group included in accounts payable on the unaudited condensed consolidated balance sheets.

Chart E&C beneficially owns 8.3% of our outstanding common stock and was party to a Secured Term Note Payable with the Company prior to its repayment by the Company during the three and nine months ended September 30, 2021. The Company purchases services from Chart E&C. During the nine months ended September 30, 2021 and 2020, purchases from Chart E&C totaled $137 thousand and $22 thousand, respectively. During the three months ended September 30, 2021 and 2020, purchases from Chart E&C totaled $59 thousand and $2 thousand. As of September 30, 2021 and December 31, 2020, the Company had $58 thousand and $14 thousand, respectively, due to Chart E&C included in accounts payable on the unaudited condensed consolidated balance sheets.

Secured Promissory Note - Related Party

On September 20, 2021, the Company amended its secured promissory note with M/G Finance Co., Ltd, a related party, to defer scheduled debt and interest payments for September through December 2021. See additional discussion in Note 9 - Debt.

12. Commitments and Contingencies

Environmental Matters

The Company is subject to federal, state and local environmental laws and regulations. The Company does not anticipate any expenditures to comply with such laws and regulations that would have a material impact on the Company’s condensed consolidated financial position, results of operations or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state and local environmental laws and regulations.

Litigation, Claims and Contingencies

The Company may become party to various legal actions that arise in the ordinary course of its business. The Company is also subject to audit by tax and other authorities for varying periods in various federal, state and local jurisdictions, and disputes may arise during the course of these audits. It is impossible to determine the ultimate liabilities that the Company may incur resulting from any of these lawsuits, claims, proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities, if any. If these matters were to ultimately be resolved unfavorably, it is possible that such an outcome could have a material adverse effect upon the Company’s consolidated financial position, results of operations, or liquidity. The Company does not, however, anticipate such an outcome and it believes the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. Additionally, the Company currently expenses all legal costs as they are incurred.

In October 2018, American Electric Technologies, Inc., a predecessor in interest to the Company (“American Electric”) received notification of a potential liability of $4.3 million associated with an asset purchase agreement to sell substantially all of its U.S. business assets and operations to Myers Power Products, Inc. (“Myers”). The contractual terms of the agreement included a provision for true-up of the net working capital, estimated as of the date of closing, to actual working capital as calculated by Myers and agreed to by American Electric. Any difference in the actual (conclusive) net working capital in relation to the estimated working capital at closing results in an adjustment to the purchase price. In response, American Electric disputed Myers’ claim and Myers’ working capital calculation. On November 5, 2020, the Company filed a petition in Harris County, Texas requesting a declaratory judgment in favor of the Company. During the nine months ended September 30, 2021, the parties reached an amicable resolution of their differences and all claims regarding the net working capital were mutually released and the lawsuit was dismissed with prejudice to refiling same.

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13. Stockholders’ Equity

Issuances of Common Stock

The Company is authorized to issue up to 37,500,000 shares of common stock, $0.001 par value per share.

During the nine months ended September 30, 2021, the Company issued 500,000 shares of common stock, valued at $3.8 million, as partial consideration for the purchase of an LNG production facility in Port Allen, Louisiana. See Note 6—Property, Plant and Equipment, above, for additional information.

In addition, during the nine months ended September 30, 2021, the Company issued a net 294,642 shares of common stock upon vesting of the Restricted Stock Units under its 2019 Long Term Incentive Plan. See Note 14—Stock-Based Compensation, below, for additional information.

Issuances of Warrants

As of September 30, 2021, the Company had outstanding Warrants to purchase 62,500 shares of our common stock as follows:

Date of Issuance	No. of Warrants	Exercise Price	Expiration Date
Nov. 13, 2017	62,500	$18.08	Nov. 13, 2022

14. Stock-Based Compensation

Amendment of the 2019 Long Term Incentive Plan

In July 2021, the Company's Board of Directors approved the Amended and Restated 2019 Long Term Incentive Plan (the “Amended and Restated Plan”), which was subsequently approved by the Company's shareholders on September 14, 2021. Under the Amended and Restated Plan, the maximum number of shares of common stock available for issuance was increased from 1,675,000 shares to 4,000,000 shares.

Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year.

Restricted Stock Units

The Company granted 500,000 Restricted Stock Units ("RSUs") under the 2019 Plan during the nine months ended September 30, 2021 as outlined below.

On August 22, 2021, the Company entered into a separation and release agreement with James C. Reddinger (formerly the Company's chief executive officer) pursuant to which Mr. Reddinger voluntarily resigned from his employment with the Company and as a member of the Company’s Board of Directors. Under the separation and release agreement, the Company agreed that Mr. Reddinger’s 500,000 RSUs granted under the Company's 2019 Long Term Incentive Plan would fully vest as of August 22, 2021, subject to Mr. Reddinger agreeing to hold the shares through December 31, 2022, and his continued compliance with his obligations in his separation and release agreement. In accordance with the 2019 Long Term Incentive Plan, the RSUs will be settled upon the earlier of (i) Mr. Reddinger's death or (ii) the date that is six months after his separation from service.

On August 23, 2021, the Company appointed Westervelt T. “Westy” Ballard, Jr., age 49, as its president and chief executive officer. In connection with Mr. Ballard's appointment, the Company granted Mr. Ballard 500,000 RSUs, of which 250,000 RSUs vested immediately on August 23, 2021. The remaining 250,000 will vest over a two-year period in two equal tranches on August 23, 2022, and August 23, 2023, conditioned on Mr. Ballard remaining continuously employed through each vesting date.

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Stock Options

The Company also agreed to grant Mr. Ballard 1,300,000 options to purchase the Company’s common stock, subject to Board approval with a strike price equal to $10.00 per share, which will vest (i) 442,000 options on August 23, 2022, (ii) 429,000 options on August 23, 2023, and (iii) 429,000 options on August 23, 2024, conditioned on Mr. Ballard remaining continuously employed through each vesting date. The Company anticipates entering into an award agreement with Mr. Ballard with respect to such options during the fourth quarter of 2021.

The Company includes stock compensation expense within general and administrative expenses in the unaudited interim condensed consolidated statements of operations. During the nine months ended September 30, 2021, the Company recognized $2.7 million of stock compensation expense which included $0.5 million and $1.7 million related to the immediate vesting of Mr. Reddinger's and Mr. Ballard's RSUs, respectively. During the nine months ended September 30, 2020, the Company recognized $249 thousand in stock-based compensation costs related to RSUs. The Company recognized $2.4 million and $148 thousand in stock-based compensation costs related to RSUs during the three months ended September 30, 2021 and 2020, respectively. During the nine months ended September 30, 2021, a net 294,642 share awards vested and were issued.

As of September 30, 2021, the Company had $1.7 million of unrecognized compensation costs related to 430,688 outstanding RSUs, which is expected to be recognized over a weighted average period of less than two years. All units are expected to vest.

Restricted Stock Awards

In February 2020, independent directors received 50% of their retainer fee as Restricted Stock Awards (“RSAs”). The 34,706 RSAs were issued immediately upon grant and were subject to a one year vesting period and other restrictions under the Company's 2019 Long Term Incentive Plan (the “2019 Plan”). During the nine months ended September 30, 2021, the 34,706 RSAs vested.

The Company granted 61,308 RSAs under the 2019 Plan to independent directors in April 2020. The Company recognized $17 thousand and $95 thousand in stock-based compensation costs related to RSAs for the nine months ended September 30, 2021 and 2020, respectively, which is included in general and administrative expenses in the unaudited condensed consolidated statements of operations. The Company recognized $38 thousand in stock-based compensation costs related to RSAs during the three months ended September 30, 2020. The Company did not recognize stock-based compensation expense for the three months ended September 30, 2021. As of September 30, 2021, the Company had no unrecognized compensation costs related to grants of RSAs.

15. Concentration of Credit Risk

As of September 30, 2021 and December 31, 2020, two customers comprised 42% and 47% of our net accounts receivable balance, respectively. During the three months ended September 30, 2021, revenues from two customers represented 39% of total revenues. During the three months ended September 30, 2020, revenues from one customer represented 26% of total revenues. During the nine months ended September 30, 2021 revenues from two customers represented 38% of our total revenues. During the nine months ended September 30, 2020, revenues from one customer represented 12% of our total revenues.

As of September 30, 2021, two vendors comprised 33% of our net accounts payable balance. As of December 31, 2020, one vendor comprised 15% of our net accounts payable balance. For the three months ended September 30, 2021 and September 30, 2020, cost of revenues from one vendor represented 17% and 23% of our total cost of revenues, respectively. During the nine months ended September 30, 2021, cost of revenues from one vendor represented 13% of our total cost of revenues. During the nine months ended September 30, 2020, cost of revenues from two vendors represented 23% of our total cost of revenues.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included elsewhere in this Form 10-Q and the consolidated financial statements included in the 2020 Annual Report on Form 10-K filed on March 16, 2021. Historical results and percentage relationships set forth in the condensed consolidated statements of operations and cash flows, including trends that might appear, are not necessarily indicative of future operations or cash flows.

Overview

Stabilis is an energy transition company that provides turnkey clean energy production, storage, transportation and fueling solutions including providing natural gas and hydrogen to multiple end markets in North America. Our diverse customer base utilizes LNG and hydrogen solutions as a fuel source in a variety of applications in the aerospace, industrial, utilities and pipelines, mining, energy, remote clean power and high horsepower transportation markets. Our customers use LNG as a partner fuel for renewable energy and as an alternative to traditional fuel sources, such as diesel, fuel oil, and propane, to reduce harmful environmental emissions and to lower fuel costs. Our customers also use LNG as a “virtual pipeline” solution when natural gas pipelines are not available or are curtailed.

Stabilis seeks to provide our customers with safe, reliable and cost effective LNG and hydrogen fueling solutions and power delivery equipment and services. We provide multiple products and services to our customers, including:

LNG Production, LNG and Hydrogen Sales—Stabilis builds and operates cryogenic natural gas processing facilities, called “liquefiers”, which convert natural gas into LNG through a multiple stage cooling process. We currently own and operate a liquefier that can produce up to 100,000 LNG gallons (379 cubic meters) per day. In June 2021 the Company purchased another LNG production facility that can produce 30,000 LNG gallons (114 cubic meters) per day. We also purchase LNG from third-party production sources which allows us to support customers in markets where we do not own liquefiers.

Transportation and Logistics Services—Stabilis offers our customers a “virtual natural gas pipeline” by providing them with turnkey LNG transportation and logistics services in North America. We deliver LNG to our customers’ work sites from both our own production facility and our network of approximately 25 third-party production sources located throughout North America. We own a fleet of LNG fueled trucks and cryogenic trailers to transport and deliver LNG. We also outsource similar equipment and transportation services for both LNG and hydrogen from qualified third-party providers as required to support our customer base.

Cryogenic Equipment Rental—Stabilis owns and operates a rental fleet of approximately 150 mobile LNG storage and vaporization assets, including: transportation trailers, electric and gas-fired vaporizers, ambient vaporizers, storage tanks, and mobile vehicle fuelers. We also own several stationary storage and regasification assets. We believe this is one of the largest fleets of small-scale LNG equipment in North America. Our fleet consists primarily of trailer-mounted mobile assets, making delivery to and between customer locations more efficient. We deploy these assets on job sites to provide our customers with the equipment required to transport, store, and consume LNG in their fueling operations.

Engineering and Field Support Services—Stabilis has experience in the safe, cost effective, and reliable use of LNG and hydrogen in multiple customer applications. We have also developed many processes and procedures that we believe improve our customers’ use of LNG and hydrogen in their operations. Our engineers help our customers design and integrate LNG and hydrogen into their fueling operations and our field service technicians help our customers mobilize, commission and reliably operate on the job site.

Stabilis generates revenue by selling and delivering LNG and hydrogen to our customers. We also generate revenue by renting cryogenic equipment and providing engineering and field support services. We sell our products and services separately or as a bundle depending on the customer’s needs. LNG pricing depends on market pricing for natural gas and competing fuel sources (such as diesel, fuel oil, and propane among others), as well as the customer’s purchased volume, contract duration and credit profile.

Stabilis’ customers use LNG and hydrogen in their operations for multiple reasons, including lower and more stable fuel costs, reduced environmental emissions, and improved operating performance. We believe that LNG and hydrogen consumption will continue to increase in the future.

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Power Delivery—Stabilis provides power delivery equipment and services for the oil and gas, marine, power generation and broad industrial market segments in Brazil, and builds electrical systems for sale in China through our 40% interest in BOMAY.

Recent Developments

Appointment of Westy Ballard as CEO and resignation of James Reddinger—On August 23, 2021, the Company appointed Westervelt T. “Westy” Ballard, Jr., as its president and chief executive officer. The Company entered into a three-year employment agreement with Mr. Ballard effective as of August 23, 2021, subject to successive one-year extensions. The Company's Board of Directors also appointed Mr. Ballard as a director of the Company's Board of Directors, following which he was subsequently elected as a director by the Company's shareholders at the Company's annual stockholder meeting. In connection with Mr. Ballard's appointment, the Company granted Mr. Ballard RSUs, and agreed to grant Mr. Ballard options to purchase the Company’s common stock as further discussed in Note 14 of the Notes to Condensed Consolidated Financial Statements. On August 22, 2021, the Company entered into a separation and release agreement with James C. Reddinger, the Company's prior president and chief executive officer. Under the separation and release agreement, the Company agreed to pay Mr. Reddinger’s base salary through December 31, 2022. Additionally, the Company agreed that Mr. Reddinger’s RSUs granted under the 2019 Long Term Incentive Plan as of August 22, 2021, would fully vest subject to Mr. Reddinger's agreement to hold the shares through December 31, 2022, and his continued compliance with his obligations in his separation and release agreement. In accordance with the 2019 Long Term Incentive Plan, the RSUs will be settled upon the earlier of (i) Mr. Reddinger's death or (ii) the date that is six months after his separation from service.

Acquisition of additional LNG facilities—On June 1, 2021 the Company acquired an LNG production facility in Port Allen, Louisiana. The plant is capable of producing 30,000 gpd of LNG. The facility is strategically located and will support some of Stabilis' largest customers. The facility increases the Company's total production capacity by 30%.

Post-COVID 19 demand and increasing prices—The COVID-19 pandemic, in general, resulted in a period of depressed demand and uncertainty across many markets including our business, customers and suppliers. Roll-out, availability and access to vaccines has resulted in relaxing many of the COVID 19 restrictions creating a post-COVID-19 period of recovery in economic growth and demand in recent months. However, increases in economic growth and demand have been limited by supplies of natural gas, labor and transportation resources within our markets resulting a period of increasing costs. Further, natural gas inventories and production, which decreased during the COVID 19 pandemic, have been slow to respond. During the third quarter of 2021, we experienced higher than normal natural gas prices. Natural gas futures continue to trade at multi-year highs (in excess of $6.00 at certain times). We expect high natural gas price trends to continue in the near-term as winter approaches further pushing up demand in the physical market; however, no assurances can be made about price trends.

Limited labor resources have also resulted in a shortage of drivers to transport our product to our customers and increasing costs. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs which has resulted in margin pressure and decreasing margins.

As post-COVID-19 pandemic demand continues to evolve, the economy, commodity prices, demand for our products and our cost of operations and share price may all be impacted. The ultimate extent and effects of these impacts are difficult to estimate; however, continued periods of increasing costs could adversely impact our future results and operating cash flows.

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Results of Operations

The Company’s revenues are derived from two operating segments. The Company's LNG Segment supplies LNG to multiple end markets in North America and provides turnkey fuel solutions to help users of propane, diesel and other crude-based fuel products convert to LNG. The Company's Power Delivery Segment provides power delivery equipment and services in Brazil and through our BOMAY joint venture in China. The Company evaluates the performance of its segments based primarily on segment operating income. See also Note 4 to our Notes to Condensed Consolidated Financial Statements for further discussion of our segments.

Three Months Ended September 30, 2021 Compared to Three Months Ended September 30, 2020

The comparative tables below reflect our consolidated operating results as well as the operating results of our two operating segments for the three months ended September 30, 2021 (the “Current Quarter”) as compared to the three months ended September 30, 2020 (the “Prior Year Quarter”) (unaudited, amounts in thousands, except for percentages).

Consolidated	Three Months Ended September 30,				$ Change		% Change
	2021		2020
Revenue:
LNG product	$	14,420	$	6,594	$	7,826	118.7	%
Rental, service and other	3,359		1,073		2,286		213.0
Power delivery	1,925		1,352		573		42.4
Total revenues	19,704		9,019		10,685		118.5
Operating expenses:
Costs of LNG product	11,988		5,044		6,944		137.7
Costs of rental, service and other	1,917		808		1,109		137.3
Costs of power delivery	1,542		996		546		54.8
Selling, general and administrative	6,155		2,338		3,817		163.3
Depreciation	2,324		2,266		58		2.6
Impairment of right-of-use lease asset	376		—		376		n/a
Total operating expenses	24,302		11,452		12,850		112.2
Loss from operations before equity income	(4,598)		(2,433)		(2,165)		89.0
Net equity income from foreign joint ventures' operations	246		573		(327)		(57.1)
Loss from operations	(4,352)		(1,860)		(2,492)		134.0
Other income (expense):
Interest expense, net	(130)		(2)		(128)		98.5
Interest expense, net - related parties	(120)		(199)		79		(39.7)
Other income (expense)	70		(31)		101		(325.8)
Total other income (expense)	(180)		(232)		52		(22.4)
Loss before income tax expense	(4,532)		(2,092)		(2,440)		116.6
Income tax expense	93		41		52		126.8
Net loss	$	(4,625)	$	(2,133)	$	(2,492)	116.8	%

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Segment Results

LNG Segment	Three Months Ended September 30,				$ Change		% Change
	2021		2020
Revenue:
LNG product	$	14,420	$	6,594	$	7,826	118.7	%
Rental, service and other	3,359		1,073		2,286		213.0
Total revenues	17,779		7,667		10,112		131.9
Operating expenses:
Costs of LNG product	11,988		5,044		6,944		137.7
Costs of rental, service and other	1,917		808		1,109		137.3
Selling, general and administrative	5,655		1,757		3,898		221.9
Depreciation	2,284		2,237		47		2.1
Impairment of right-of-use lease asset	376		—		376		n/a
Total operating expenses	22,220		9,846		12,374		125.7
Loss from operations	$	(4,441)	$	(2,179)	$	(2,262)	103.8	%

Power Delivery Segment	Three Months Ended September 30,				$ Change		% Change
	2021		2020
Revenue:
Power delivery	$	1,925	$	1,352	$	573	42.4	%
Operating expenses:
Costs of power delivery	1,542		996		546		54.8
Selling, general and administrative	500		581		(81)		(13.9)
Depreciation	40		29		11		37.9
Total operating expenses	2,082		1,606		476		29.6
Loss from operations before equity income	(157)		(254)		97		(38.2)
Net equity income from foreign joint ventures' operations	246		573		(327)		(57.1)
Income from operations	$	89	$	319	$	(230)	(72.1)	%

Revenue

LNG product revenue. During the Current Quarter, LNG product revenue increased $7.8 million or 119% versus the Prior Year Quarter primarily related to:

•An increase of 6.8 million LNG gallons delivered during the Current Quarter compared to the Prior Year Quarter particularly with power generation customers; and

•Increased natural gas prices compared to the Prior Year Quarter.

Rental, service, and other revenue. Rental, service and other revenue increased by $2.3 million or 213% in the Current Quarter relative to the Prior Year Quarter due to the economic recovery and a higher concentration of current projects with additional equipment and labor revenues from projects in Mexico and power generation customers.

Power delivery. Power delivery revenue increased by $0.6 million or 42% in the Current Quarter due to new contracts.

Operating Expenses

Costs of LNG product. Cost of product in the Current Quarter increased $6.9 million or 138%. As a percentage of LNG product revenue, these costs increase from 76% from the prior year quarter to 83% in the Current Quarter. The increased costs were attributable to:

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•Inflationary pressures including increased costs from higher natural gas prices, increased transportation costs and increased liquefaction costs; and

•Additional LNG gallons delivered.

Costs of rental, service, and other. Costs increased $1.1 million or 137% in the Current Quarter primarily related to increased labor and equipment rentals, maintenance and travel costs to support the increase in rental, service and other revenues.

Costs of power delivery. Costs increased $0.5 million or 55% in the Current Quarter due to higher activity levels associated with new contracts.

Selling, general and administrative. Selling, general and administrative expense increased $3.8 million or 163% during the Current Quarter due to higher compensation costs primarily related to the executive transition and vesting of incentives. During the Current Quarter, we recorded $2.2 million related to the immediate vesting of restricted stock units associated with our executive transition and an additional $0.8 million of severance and legal expenses. The remaining increase is primarily related to increased headcount for sales and business development personnel, commissions and travel.

Depreciation. Depreciation expense increased 3% during the Current Quarter as compared to the Prior Year Quarter due to the acquisition of our Port Allen facility on June 1, 2021, partially offset by decreases from other assets reaching the end of their depreciable lives.

Impairment of right-of-use lease asset. During the Current Quarter, we recorded an impairment of $0.4 million related to the settlement and release of our Houston office lease. See Note 10 of the Notes to Condensed Consolidated Financial Statements for additional discussion of our lease settlement.

Net Equity Income From Foreign Joint Ventures' Operations

Income from investments in foreign joint ventures. Income from investments in foreign joint ventures decreased $0.3 million during the Current Quarter due to stronger than normal sales in the Prior Year Quarter.

Other Income (Expense)

Interest expense, net. Interest expense increased $0.1 million during the Current Quarter as compared to the Prior Year Quarter primarily related to interest on the Company's advancing loan with AmeriState Bank.

Interest expense, net - related parties. Related party interest expense decreased $0.1 million during the Current Quarter as compared to the Prior Year Quarter primarily related to repayment of the short-term note payable - related party of $1.1 million as further discussed in Note 9 of the Notes to condensed consolidated financial Statements and the maturity of capital leases in 2020 and January of 2021, partially offset by a scheduled increase in interest rates.

Other income (expense). Other income was $0.1 million during the Current Quarter compared to other expense of $31 thousand in the Prior Year Quarter.

Income tax expense. The Company incurred state and foreign income tax expense of $0.1 million during the Current Quarter compared to $41 thousand during the Prior Year Quarter. No U.S. federal income tax benefit was recorded for the Current Quarter or Prior Quarter as any net U.S. deferred tax assets generated from operating losses were offset by a change in the Company's valuation allowance on net deferred tax assets.

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Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020

The following comparative tables below reflect our consolidated operating results as well as the operating results of our two operating segments for the nine months ended September 30, 2021 (the “Current Year”) as compared to the nine months ended September 30, 2020 (the “Prior Year”) (unaudited, amounts in thousands, except for percentages):

Consolidated	Nine Months Ended September 30,				$ Change		% Change
	2021		2020
Revenue:
LNG product	$	37,927	$	18,609	$	19,318	103.8	%
Rental, service and other	10,364		5,613		4,751		84.6
Power delivery	5,129		3,638		1,491		41.0
Total revenues	53,420		27,860		25,560		91.7
Operating expenses:
Costs of LNG product	30,154		13,692		16,462		120.2
Costs of rental, service and other	5,649		3,381		2,268		67.1
Costs of power delivery	3,994		3,131		863		27.6
Selling, general and administrative	13,195		7,892		5,303		67.2
Gain from disposal of fixed assets	(24)		(11)		(13)		118.2
Depreciation	6,767		6,802		(35)		(0.5)
Impairment of right-of-use lease asset	376		—		376		n/a
Total operating expenses	60,111		34,887		25,224		72.3
Loss from operations before equity income	(6,691)		(7,027)		336		(4.8)
Net equity income from foreign joint ventures' operations	1,075		1,347		(272)		(20.2)
Loss from operations	(5,616)		(5,680)		64		(1.1)
Other income (expense):
Interest expense, net	(224)		(28)		(196)		700.0
Interest expense, net - related parties	(441)		(681)		240		(35.2)
Other income	1,183		(6)		1,189		n/a
Total other income (expense)	518		(715)		1,233		(172.4)
Loss before income tax expense	(5,098)		(6,395)		1,297		(20.3)
Income tax expense	356		251		105		41.8
Net loss	$	(5,454)	$	(6,646)	$	1,192	(17.9)	%

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Segment Results

LNG Segment	Nine Months Ended September 30,				$ Change		% Change
	2021		2020
Revenue:
LNG product	$	37,927	$	18,609	$	19,318	103.8	%
Rental, service and other	10,364		5,613		4,751		84.6
Total revenues	48,291		24,222		24,069		99.4
Operating expenses:
Costs of LNG product	30,154		13,692		16,462		120.2
Costs of rental, service and other	5,649		3,381		2,268		67.1
Selling, general and administrative	11,496		6,352		5,144		81.0
Gain from disposal of fixed assets	(24)		(11)		(13)		118.2
Depreciation	6,653		6,706		(53)		(0.8)
Impairment of right-of-use lease asset	376		—		376		n/a
Total operating expenses	54,304		30,120		24,184		80.3
Loss from operations before equity income	$	(6,013)	$	(5,898)	$	(115)	(1.9)	%

Power Delivery Segment	Nine Months Ended September 30,				$ Change		% Change
	2021		2020
Revenue:
Power delivery	$	5,129	$	3,638	$	1,491	41.0	%
Operating Expenses:
Costs of power delivery	3,994		3,131		863		27.6
Selling, general and administrative	1,699		1,540		159		10.3
Depreciation	114		96		18		18.8
Total operating expenses	5,807		4,767		1,040		21.8
Loss from operations before equity income	(678)		(1,129)		451		(39.9)
Net equity income from foreign joint ventures' operations	1,075		1,347		(272)		(20.2)
Income (loss) from operations	$	397	$	218	$	179	82.1	%

Revenue

LNG product revenue. During the Current, Year LNG product revenues increased $19.3 million or 104% versus the Prior Year primarily related to:

•An increase of 20.9 million LNG gallons delivered compared to the Prior Year particularly with power generation customers; and

•Increased natural gas prices compared to the Prior Year.

Rental, service, and other revenue. Rental, service and other revenues increased by $4.8 million or 85% in the Current Year compared to Prior Year primarily related to the economic recovery and a higher concentration of current projects with additional equipment and labor revenues from projects in Mexico and power generation customers.

Power delivery revenue. Power delivery revenue increased by $1.5 million or 41% in the Current Year due to new contracts.

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Operating Expenses

Cost of LNG product. Cost of LNG product in the Current Year increased $16.5 million or 120%. As a percentage of LNG product revenue, these costs increased from 74% in the Prior Year to 80% in the Current Year. The increased costs were attributable to:

•Inflationary pressure including increased costs from higher natural gas prices, increased transportation costs and increased liquefaction costs; and

•Additional LNG gallons delivered.

Cost of rental, service, and other. This cost increased $2.3 million or 67% in the Current Year primarily related to increased labor and equipment rentals to support the increase in rental, service and other revenues.

Costs of power delivery. Costs increased $0.9 million or 28% in the Current Year due to costs associated with new contracts.

Selling, general and administrative. Selling, general and administrative expense in the Current Year increased by $5.3 million or 67% from the Prior Year primarily due to the executive transition and vesting of incentives occurring in the Current Year. During the Current Year, we recorded $2.2 million related to the immediate vesting of restricted stock units associated with our executive transition and an additional $0.8 million of severance and legal expenses. The remaining increase is primarily related to higher compensation costs related to increased headcount for sales and business development personnel, commissions and travel.

Depreciation. Depreciation expense essentially remained the same, slightly decreaseing by 1% during the Current Year as compared to the Prior Year due to assets reaching the end of their depreciable lives, offset by additional depreciation expense on our Port Allen facility which was acquired on June 1, 2021.

Impairment of right-of-use lease asset. During the Current Year, we recorded an impairment of $0.4 million related to the settlement and release of our Houston office lease. See Note 10 of our Notes to Condensed Consolidated Financial Statements for additional discussion of our lease settlement.

Net Equity Income From Foreign Joint Ventures' Operations

Income from investments in foreign joint ventures. Income from investments in foreign joint ventures decreased $0.3 million from the Prior Year due to stronger sales in the Prior Year.

Other Income (Expense)

Interest expense, net. Interest expense in the Current Year increased $0.2 million primarily due to interest associated with the Company's advancing loan with AmeriState Bank.

Interest expense, net - related parties. Related party interest expense decreased $0.2 million during the Current Year primarily related to repayment of the short-term note payable - related party of $1.1 million as further discussed in Note 9 of the Notes to Condensed Consolidated Financial Statements and the maturity of capital leases in 2020 and January of 2021, partially offset by a scheduled increase in interest rates in the Current Year.

Other income (expense). Other income was $1.2 million in the Current Year compared to expense of $6 thousand in the Prior Year. Current Year income related to the Paycheck Protection Program loan forgiveness and the release of escrow funds from the Myers transaction settlement.

Gain on the disposal of fixed assets. The gain from disposal of rolling stock was $11 thousand in the Prior Year compared to $24 thousand in the Current Year.

Income tax expense. The Company incurred foreign tax expense of $0.4 million during the Current Year compared to $0.3 million during the Prior Year. No U.S. federal income tax benefit was recorded for the Current Year or Prior Year as any net U.S. deferred tax assets generated from operating losses were offset by a change in the Company's valuation allowance on net deferred tax assets.

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Liquidity and Capital Resources

Overview

The Company is subject to substantial business risks and uncertainties inherent in the LNG industry. There is no assurance that the Company will be able to generate sufficient cash flows in the future to sustain itself or to support future growth.

Historically, our principal sources of liquidity have consisted of cash on hand, cash provided by our operations, and distributions from our BOMAY joint venture. Additionally, the Company obtained equipment financing from MG Finance, a related party. During the Current Year, our principal sources of liquidity were cash provided by our operations and an advancing loan facility with AmeriState Bank in the aggregate principal amount of up to $10.0 million. We have used a portion of our cash flows generated from operations to invest in fixed assets to support growth as well as to pay interest and principal amounts outstanding under our borrowings and increased working capital needs generated from organic growth.

As of September 30, 2021, we had $2.9 million in cash and cash equivalents on hand and $11.7 million in outstanding debt (net of debt issuance costs) and finance lease obligations (of which $4.0 million is due in the next twelve months). Future availability under the advancing loan facility at September 30, 2021, was $3.0 million.

The Company has experienced a recent increase in activity and additional revenue opportunities. Accordingly, management believes the business will generate sufficient cash flows from its operations along with availability under our advancing loan facility that is sufficient to fund the business for the next 12 months. As we continue to grow, the Company continues to evaluate additional financing alternatives, however, there is no guarantee that additional financing will be available or available at terms that would be beneficial to shareholders.

Cash Flows

Cash flows provided by (used in) our operating, investing and financing activities are summarized below (unaudited, in thousands):

	Nine Months Ended September 30,
	2021		2020
Net cash provided by (used in):
Operating activities	$	5,478	$	2,467
Investing activities	(6,690)		(315)
Financing activities	2,451		(2,564)
Effect of exchange rate changes on cash	(115)		(157)
Net increase (decrease) in cash and cash equivalents	1,124		(569)

Operating Activities

Net cash provided by operating activities totaled $5.5 million for the nine months ended September 30, 2021 compared to $2.5 million for the same period 2020. The increase in net cash provided by operating activities of $3.1 million as compared to the Prior Year was primarily attributable to increased revenues and changes in working capital, partially offset by a reduced distribution from our BOMAY joint venture.

Investing Activities

Net cash used in investing activities totaled $6.7 million and $0.3 million for the nine months ended September 30, 2021 and 2020, respectively. The increase in net cash used in the Current Year was primarily due to the acquisition of the LNG plant in Port Allen, Louisiana and purchases of vaporizers and other LNG equipment.

Financing Activities

Net cash provided by financing activities totaled $2.5 million for the nine months ended September 30, 2021, compared to net cash used in financing activities totaling $2.6 million for the Prior Year. The change compared to Prior Year was primarily attributable to proceeds from the AmeriState Bank loan facility.

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Future Cash Requirements

Uses of Liquidity and Capital Resources

We require cash to fund our operating expenses and working capital requirements, including costs associated with fuel sales, capital expenditures, debt repayments and repurchases, equipment purchases, maintenance of LNG production facilities, mergers and acquisitions (if any), pursuing market expansion, supporting sales and marketing activities, support of legislative and regulatory initiatives, and other general corporate purposes. While we believe we have sufficient liquidity and capital resources to fund our operations and repay our debt, we may elect to pursue additional financing activities such as refinancing existing debt, or debt or equity offerings to provide flexibility with our cash management. Certain of these alternatives may require the consent of current lenders or stockholders, and there is no assurance that we will be able to execute any of these alternatives on acceptable terms or at all.

Debt Level and Debt Compliance

We had total indebtedness of $12.1 million in principal as of September 30, 2021 with the expected maturities as follows (in thousands).

	September 30, 2021
Remainder 2021	$	347
2022	4,575
2023	117
2024	680
2025	1,000
Thereafter	5,331
	$	12,050
Debt issuance costs	(400)
Total long-term debt, including current maturities	$	11,650

We expect our total interest payment obligations relating to our indebtedness to be approximately $0.6 million for the full year ending December 31, 2021. Certain of the agreements governing our outstanding debt have certain covenants with which we must comply. As of September 30, 2021, we were in compliance with all of these covenants.

Off-Balance Sheet Arrangements

As of September 30, 2021, we had no transactions that met the definition of off-balance sheet arrangements that may have a current or future material effect on our consolidated financial position or operating results.

NEW ACCOUNTING STANDARDS

See Note 2—Recent Accounting Pronouncements to the Notes to Condensed Consolidated Financial Statements included elsewhere in this report for information on new accounting standards.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The discussion and analysis of our financial condition and results of operations are based on our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these Condensed Consolidated Financial Statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities known to exist at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. We evaluate our estimates on an ongoing basis, based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. There can be no assurance that actual results will not differ from those estimates.

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Critical Accounting Policies

Revenue Recognition

The Company recognizes revenue associated with the sale of LNG at the point in time when the customer obtains control of the asset. In evaluating when a customer has control of the asset, the Company primarily considers whether the transfer of legal title and physical delivery has occurred, whether the customer has significant risks and rewards of ownership, and whether the customer accepted delivery and a right of payment exists. Revenues from the providing of services, transportation and equipment to customers is recognized as the service is performed.

Revenue is measured as consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Amounts are billed upon completion of service or transfer of a product and are generally due within 30 days.

Revenues from contracts with customers are disaggregated into (1) LNG product, (2) rental, service, and other, and (3) power delivery.

LNG product revenue generated includes the revenue from the product and delivery of the LNG to our customer’s location. Product revenue is recognized upon delivery of the related item to the customer, at which point the customer controls the product and the Company has an unconditional right to payment. Product contracts are established by agreeing on a sales price or transaction price for the related item. Revenue is recognized when the customer has taken control of the product. Payment terms for product contracts are generally within thirty days from the receipt of the invoice. The Company acts as a principal when using third party transportation companies and therefore recognizes the gross revenue for the delivery of LNG.

Rental, service and other revenue generated by the Company includes equipment and human resources provided to the customer to support the use of LNG and power delivery equipment and services in their application. Rental contracts are established by agreeing on a rental price or transaction price for the related piece of equipment and the rental period which is generally daily or monthly. The Company maintains control of the equipment that the customer uses and can replace the rented equipment with similar equipment should the rented equipment become inoperable or the Company chooses to replace the equipment for maintenance purposes. Revenue is recognized as the rental period is completed and for periods that cross month end, revenue is recognized for the portion of the rental period that has been completed to date. Payment terms for rental contracts are generally within thirty days from the receipt of the invoice. Performance obligations for rental revenue are considered to be satisfied as the rental period is completed based upon the terms of the related contract. LNG service revenue generated by the Company consists of mobilization and demobilization of equipment and onsite technical support while customers are consuming LNG in their applications. Service revenue is billed based on contractual terms that can be based on an event (i.e. mobilization or demobilization) or an hourly rate. Revenue is recognized as the event is completed or work is done. Payment terms for service contracts are generally within thirty days from the receipt of the invoice. Performance obligations for service revenue are considered to be satisfied as the event is completed or work is done per the terms of the related contract.

Power Delivery revenue is generated from time and material projects, consulting services, and the resale of electrical and instrumentation equipment. Revenue is billed based on contractual terms that can be based on an event or an hourly rate. Revenue is recognized as the event is completed or work is done. Payment terms for service contracts are generally within thirty days from the receipt of the invoice. Performance obligations for service revenue are considered to be satisfied as the event is completed or work is done per the terms of the related contract. The resale of electrical and instrumentation equipment is billed upon delivery and are generally due within thirty days from the receipt of the invoice.

All outstanding accounts receivable, net of allowance, on the consolidated balance sheet are typically due and collected within the next 30 days for our LNG business and 12 months for our power delivery business.

32

Impairment of Long-Lived Assets and Goodwill

LNG liquefaction facilities, and other long-lived assets held and used by the Company are reviewed periodically for potential impairment whenever events or changes in circumstances indicate that a particular asset’s carrying value may not be recoverable. Recoverability generally is determined by comparing the carrying value for the asset to the expected undiscounted future cash flows of the asset. If the carrying value of the asset is not recoverable, the amount of impairment loss is measured as the excess, if any, of the carrying value of the asset over its estimated fair value. The estimated undiscounted future cash flows are based on projections of future operating results; these projections contain estimates of the value of future contracts that have not yet been obtained, future commodity pricing and our future cost structure, among others. Projections of future operating results and cash flows may vary significantly from actual results. Management reviews its estimates of cash flows on an ongoing basis using historical experience, business plans, overall market conditions, and other factors.

Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable assets acquired less liabilities assumed. Intangible assets are assets that lack physical substance (excluding financial assets). Goodwill acquired in a business combination and intangible assets with indefinite useful lives are not amortized, and intangible assets with finite useful lives are amortized. Goodwill and intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate the assets carrying value may not be recoverable. We currently test goodwill for impairment annually in the third quarter unless we determine that a triggering event has occurred requiring an earlier test.

Income Taxes

Deferred income taxes are accounted for under the asset-and-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than not that the deferred tax asset will not be realized.

The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in selling, general and administrative expenses.

Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in the fair value measurements, the fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels in accordance with U.S. GAAP:

Level 1 Inputs—Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.

Level 2 Inputs—Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 Inputs—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby, allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a “smaller reporting company,” the Company is not required to provide this information.

33

ITEM 4. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective at September 30, 2021.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during our last fiscal quarter that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

34

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

The Company becomes involved in various legal proceedings and claims in the normal course of business. In management’s opinion, the ultimate resolution of these matters will not have a material effect on our financial position or results of operations.

ITEM 1A. RISK FACTORS.

Our operations and financial results are subject to various risks and uncertainties, including those described in the Part I. “Item 1A. Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on March 16, 2021 (“Form 10-K”), which could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common stock. Except as set forth below, there have been no material changes in our risk factors disclosed in our 2020 Form 10-K.

As post-COVID-19 pandemic demand continues to evolve, continued periods of increasing costs could decrease our margins and adversely impact our future results and operating cash flows.

The COVID-19 pandemic, in general, resulted in a period of depressed demand and uncertainty across many markets including our business, customers and suppliers. Roll-out, availability and access to vaccines has resulted in relaxing many of the COVID-19 restrictions creating a post-COVID-19 period of recovery in economic growth and demand in recent months. However, increases in economic growth and demand have been limited by supplies of natural gas, labor and transportation resources within our markets resulting a period of increasing costs. Further, natural gas inventories and production, which decreased during the COVID-19 pandemic, have been slow to respond. During the third quarter of 2021, we experienced higher than normal natural gas prices. Natural gas futures continue to trade at multi-year highs (in excess of $6.00 at certain times). We expect high natural gas price trends to continue in the near-term as winter approaches further pushing up demand in the physical market; however, no assurances can be made about price trends.

Limited labor resources have also resulted in a shortage of drivers to transport our product to our customers and increasing costs. While we pass a significant portion of the cost of natural gas and transportation on to our customers, we are not able to pass through all costs which has resulted in margin pressure and decreasing margins.

As post-COVID-19 pandemic demand continues to evolve, the economy, commodity prices, demand for our products and our cost of operations and share price may all be impacted. The ultimate extent and effects of these impacts are difficult to estimate; however, continued periods of increasing costs could adversely impact our future results and operating cash flows.

ITEM 5. OTHER INFORMATION.

None.

35

ITEM 6. EXHIBITS.

(a) Index to Exhibits

Exhibit No.	Exhibit Description
3.1	Amended and Restated Articles of Incorporation of the Registrant (Incorporated by Reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed October 15, 2020)
3.2	Amended and Restated Bylaws of the Registrant (Incorporated by Reference to Exhibit 3.2 to Registrant’s Current Report on Form 8-K filed September 18, 2020)
4.1	Warrant to Purchase Common Stock dated November 13, 2017, issued to HD Special-Situations III, LP (Incorporated by reference to Exhibit 10.3 to Registrant’s Quarterly Report on Form 10-Q filed on November 14, 2017)
4.2	Registration Rights Agreement dated July  26, 2019, by and among Registrant, LNG Investment Company, LLC, and AEGIS NG LLC (Incorporated by Reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed August 1, 2019)
4.3	Registration Rights Agreement dated as of August 20, 2019, by and among Registrant and the Investors named therein (Incorporated by Reference to Exhibit 4.9 to Registrant's Registration Statement on Form S-1 filed September 11, 2019)
4.4	Registration Rights Agreement, dated June 1, 2021, among TGB Equipment Leasing, LLC and Stabilis (Incorporated by reference to Exhibit 10.5 to Registrant's Quarterly Report on Form 10-Q filed on August 5, 2021)
10.1	Loan Agreement, dated April 8, 2021, between Stabilis Solutions, Inc., as borrower, and AmeriState Bank, as lender (Incorporated by Reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed April 13, 2021)
10.2	Form of Advancing Note, dated April 8, 2021, executed by Stabilis Solutions, Inc., as borrower, and made payable to AmeriState Bank, as lender (Incorporated by Reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed April 13, 2021)
10.3	Security Agreement and Assignment, dated April 8, 2021, among Mile High LNG LLC, Stabilis GDS, Inc., Stabilis LNG Eagle Ford LLC and Stabilis Energy Services, LLC, to and in favor of AmeriState Bank, as the secured party (Incorporated by Reference to Exhibit 10.3 to Registrant's Current Report on Form 8-K filed on April 13, 2021)
10.4	Severance and Release Agreement, dated August 22, 2021 between Stabilis Solution, Inc. and James C. Reddinger (Incorporated by reference to Exhibit 10.2 to Registrant's Current Report on Form 8-K filed on August 24, 2021)
10.5	Employment Agreement, dated August 23, 2021 between Stabilis Solutions, Inc. and Westervelt T. Ballard, Jr. (Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on August 24, 2021)
10.6	*Amendment to Secured Promissory Note - MG Finance Co., Ltd
10.7	Amended and Restated 2019 Stabilis Solutions, Inc. Long Term Incentive Plan (Incorporated by reference to Exhibit 10.1 to Registrant's Current Report on Form 8-K filed on September 15, 2021)
31.1	*Rule 13a-14(a) / 15d-14(a) Certification of Principal Executive Officer.
31.2	*Rule 13a-14(a) / 15d-14(a) Certification of Principal Financial Officer.
32.1	*Section 1350 Certifications of Principal Executive Officer and Principal Financial Officer.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.

*    Filed herewith.

36

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 10, 2021
STABILIS SOLUTIONS, INC.
By:	/s/ Westervelt T. Ballard, Jr.
	Westervelt T. Ballard, Jr.
	President and Chief Executive Officer (Principal Executive Officer)
By:	/s/ Andrew L. Puhala
	Andrew L. Puhala
	Chief Financial Officer (Principal Financial Officer)

37

EX-10.6

Exhibit 10.6

Amendment No. 1 to Secured Promissory Note

PN274

Maker:     Stabilis Solutions, Inc., a Florida corporation (F/K/A Stabilis Energy, Inc.)

Maker’s Mailing Address:

    11750 Katy Freeway

    Suite 900

    Houston, TX 77079

Payee: M/G Finance Co., Ltd.

Loan Origination Date: August 16, 2019

Date of Amendment: September 20, 2021

Original Principal Amount: $5,000,000

The above reference Promissory Note (“Note”), the outstanding balance of which at the time of this amendment is $3,464,107.11, is hereby amended as follows:

Terms of Payment (principal and interest):

From the date hereof Maker shall make twelve (12) payments of principal and interest as follows:

Date	Beginning Balance	Payment	Accrued Interest (SEP-DEC 2021)	Interest	Principal	Ending Balance
9/10/2021 3,464,107.11		DEFERRED				3,464,107.11
10/10/2021 3,464,107.11		DEFERRED				3,464,107.11
11/10/2021 3,464,107.11		DEFERRED				3,464,107.11
12/10/2021 3,464,107.11		DEFERRED				3,464,107.11
1/10/2022	3,464,107.11	235,367.36	102,048.64	25,512.16	107,806.57	3,356,300.55
2/10/2022	3,356,300.55	235,367.36		24,718.19	210,649.17	3,145,651.38
3/10/2022	3,145,651.38	235,367.36		23,166.82	212,200.54	2,933,450.85
4/10/2022	2,933,450.85	235,367.36		21,604.03	213,763.33	2,719,687.51
5/10/2022	2,719,687.51	235,367.36		20,029.72	215,337.64	2,504,349.87
6/10/2022	2,504,349.87	235,367.36		18,443.82	216,923.54	2,287,426.34
7/10/2022	2,287,426.34	235,367.36		16,846.24	218,521.12	2,068,905.22
8/10/2022	2,068,905.22	235,367.36		15,236.90	220,130.46	1,848,774.75
9/10/2022	1,848,774.75	470,734.72		13,615.70	457,119.02	1,391,655.73
10/10/2022	1,391,655.73	470,734.72		10,249.15	460,485.57	931,170.16
11/10/2022	931,170.16	470,734.72		6,857.80	463,876.92	467,293.24
12/10/2022	467,293.24	470,734.72		3,441.48	467,293.24	0.00

All other terms and conditions of the Note remain unchanged.

EXECUTED and made EFFECTIVE as of September 20, 2021.

MAKER: STABILIS SOLUTIONS, INC.

By:

    Andrew L. Puhala

Its: Senior Vice President, Chief Financial Officer and Secretary

PAYEE: M/G FINANCE CO., LTD.

By:

    Ben Broussard

Its: Chief Financial Officer

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Westervelt T. Ballard, Jr., certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Stabilis Solutions, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and l5d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 10, 2021
By:	/s/ Westervelt T. Ballard, Jr.
	Westervelt T. Ballard, Jr. Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Andrew L. Puhala, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Stabilis Solutions, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and l5d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 10, 2021
By:	/s/ Andrew L. Puhala
	Andrew L. Puhala Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Westervelt T. Ballard, Jr., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Stabilis Solutions, Inc. on Form 10-Q for the quarter ended September 30, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of Stabilis Solutions, Inc.

Date:	November 10, 2021
By:	/s/ Westervelt T. Ballard, Jr.
	Westervelt T. Ballard, Jr. Principal Executive Officer

I, Andrew L. Puhala, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Stabilis Solutions, Inc. on Form 10-Q for the quarter ended September 30, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such Form l0-Q fairly presents in all material respects the financial condition and results of operations of Stabilis Solutions, Inc.

Date:	November 10, 2021
By:	/s/ Andrew L. Puhala
	Andrew L. Puhala Principal Financial Officer

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 10, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-40364
Entity Registrant Name	STABILIS SOLUTIONS, INC.
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-3410234
Entity Address, Address Line One	11750 Katy Freeway
Entity Address, Address Line Two	Suite 900
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77079
City Area Code	832
Local Phone Number	456-6500
Title of 12(b) Security	Common Stock, $.001 par value
Trading Symbol	SLNG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,691,268
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001043186
Current Fiscal Year End Date	--12-31

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 2,938	$ 1,814
Accounts receivable, net	7,328	5,620
Inventories, net	424	226
Prepaid expenses and other current assets	4,298	3,111
Due from related parties	0	42
Total current assets	14,988	10,813
Property, plant and equipment:
Cost	100,758	90,422
Less accumulated depreciation	(44,900)	(38,384)
Property, plant and equipment, net	55,858	52,038
Right-of-use assets	128	786
Goodwill	4,453	4,453
Investments in foreign joint ventures	11,923	11,897
Other noncurrent assets	319	326
Total assets	87,669	80,313
Current liabilities:
Current portion of notes payable	1,379	1,112
Current portion of notes payable - related parties	2,580	3,351
Current portion of finance lease obligation	16	0
Current portion of finance lease obligation - related parties	0	648
Current portion of operating lease obligations	206	362
Accrued liabilities	7,432	4,361
Accounts payable	5,163	4,395
Total current liabilities	16,776	14,229
Long-term notes payable, net of current portion	6,772	682
Long-term notes payable, net of current portion - related parties	919	2,726
Long-term portion of finance lease obligations	68	0
Long-term portion of operating lease obligations	314	490
Other noncurrent liabilities	98	156
Total liabilities	24,947	18,283
Commitments and contingencies (Note 12)
Stockholders’ Equity:
Preferred Stock; $0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	0	0
Common stock; $0.001 par value, 37,500,000 shares authorized, 17,691,268 and 16,896,626 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively	18	17
Additional paid-in capital	97,373	91,278
Accumulated other comprehensive income	172	122
Accumulated deficit	(34,841)	(29,387)
Total stockholders’ equity	62,722	62,030
Total liabilities and stockholders’ equity	$ 87,669	$ 80,313

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	37,500,000	37,500,000
Common stock, shares issued (in shares)	17,691,268	16,896,626
Common stock, shares, outstanding (in shares)	17,691,268	16,896,626

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue
Total revenues	$ 19,704	$ 9,019	$ 53,420	$ 27,860
Operating expenses:
Selling, general and administrative expenses	6,155	2,338	13,195	7,892
Gain from disposal of fixed assets	0	0	(24)	(11)
Depreciation expense	2,324	2,266	6,767	6,802
Impairment of right-of-use lease asset	376	0	376	0
Total operating expenses	24,302	11,452	60,111	34,887
Loss from operations before equity income	(4,598)	(2,433)	(6,691)	(7,027)
Net equity income from foreign joint ventures' operations:
Income from equity investments in foreign joint ventures	308	642	1,267	1,529
Foreign joint ventures' operations related expenses	(62)	(69)	(192)	(182)
Net equity income from foreign joint ventures' operations	246	573	1,075	1,347
Loss from operations	(4,352)	(1,860)	(5,616)	(5,680)
Other income (expense):
Interest expense, net	(130)	(2)	(224)	(28)
Interest expense, net - related parties	(120)	(199)	(441)	(681)
Other income (loss)	70	(31)	1,183	(6)
Total other income (expense)	(180)	(232)	518	(715)
Loss before income tax expense	(4,532)	(2,092)	(5,098)	(6,395)
Income tax expense	93	41	356	251
Net loss	$ (4,625)	$ (2,133)	$ (5,454)	$ (6,646)
Net loss per common share:
Net income (loss) per common share, basic (in usd per share)	$ (0.26)	$ (0.13)	$ (0.32)	$ (0.39)
Net income (loss) per common share, diluted (in usd per share)	$ (0.26)	$ (0.13)	$ (0.32)	$ (0.39)
Weighted average number of common shares outstanding:
Weighted average number of shares outstanding, basic (in shares)	17,578,653	16,896,626	17,202,631	16,867,939
Weighted average number of shares outstanding, diluted (in shares)	17,578,653	16,896,626	17,202,631	16,867,939
LNG Product
Revenue
Total revenues	$ 14,420	$ 6,594	$ 37,927	$ 18,609
Operating expenses:
Cost of revenue	11,988	5,044	30,154	13,692
Rental, service and other
Revenue
Total revenues	3,359	1,073	10,364	5,613
Operating expenses:
Cost of revenue	1,917	808	5,649	3,381
Power delivery
Revenue
Total revenues	1,925	1,352	5,129	3,638
Operating expenses:
Cost of revenue	$ 1,542	$ 996	$ 3,994	$ 3,131

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,625)	$ (2,133)	$ (5,454)	$ (6,646)
Foreign currency translation adjustment	(150)	424	50	(111)
Total comprehensive loss	$ (4,775)	$ (1,709)	$ (5,404)	$ (6,757)

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance, beginning (in shares) at Dec. 31, 2019		16,800,612
Balance, beginning at Dec. 31, 2019	$ 67,843	$ 17	$ 90,748	$ (291)	$ (22,631)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)		34,706
Stock-based compensation	19		19
Net loss	(1,050)				(1,050)
Other comprehensive income (loss)	(619)			(619)
Balance, ending (in shares) at Mar. 31, 2020		16,835,318
Balance, ending at Mar. 31, 2020	66,193	$ 17	90,767	(910)	(23,681)
Balance, beginning (in shares) at Dec. 31, 2019		16,800,612
Balance, beginning at Dec. 31, 2019	67,843	$ 17	90,748	(291)	(22,631)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,646)
Other comprehensive income (loss)	(111)
Balance, ending (in shares) at Sep. 30, 2020		16,896,626
Balance, ending at Sep. 30, 2020	61,430	$ 17	91,092	(402)	(29,277)
Balance, beginning (in shares) at Mar. 31, 2020		16,835,318
Balance, beginning at Mar. 31, 2020	66,193	$ 17	90,767	(910)	(23,681)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)		61,308
Stock-based compensation	139		139
Net loss	(3,463)				(3,463)
Other comprehensive income (loss)	84			84
Balance, ending (in shares) at Jun. 30, 2020		16,896,626
Balance, ending at Jun. 30, 2020	62,953	$ 17	90,906	(826)	(27,144)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	186		186
Net loss	(2,133)				(2,133)
Other comprehensive income (loss)	424			424
Balance, ending (in shares) at Sep. 30, 2020		16,896,626
Balance, ending at Sep. 30, 2020	61,430	$ 17	91,092	(402)	(29,277)
Balance, beginning (in shares) at Dec. 31, 2020		16,896,626
Balance, beginning at Dec. 31, 2020	62,030	$ 17	91,278	122	(29,387)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	162		162
Net loss	175				175
Other comprehensive income (loss)	(202)			(202)
Balance, ending (in shares) at Mar. 31, 2021		16,896,626
Balance, ending at Mar. 31, 2021	62,165	$ 17	91,440	(80)	(29,212)
Balance, beginning (in shares) at Dec. 31, 2020		16,896,626
Balance, beginning at Dec. 31, 2020	$ 62,030	$ 17	91,278	122	(29,387)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued in acquisition of new assets (in shares)	500,000
Shares issued in asset acquisition	$ 3,800
Net loss	(5,454)
Other comprehensive income (loss)	50
Balance, ending (in shares) at Sep. 30, 2021		17,691,268
Balance, ending at Sep. 30, 2021	62,722	$ 18	97,373	172	(34,841)
Balance, beginning (in shares) at Mar. 31, 2021		16,896,626
Balance, beginning at Mar. 31, 2021	62,165	$ 17	91,440	(80)	(29,212)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)		101,284
Stock-based compensation	122		122
Shares issued in acquisition of new assets (in shares)		500,000
Shares issued in asset acquisition	3,795	$ 1	3,794
Net loss	(1,004)				(1,004)
Other comprehensive income (loss)	402			402
Balance, ending (in shares) at Jun. 30, 2021		17,497,910
Balance, ending at Jun. 30, 2021	65,480	$ 18	95,356	322	(30,216)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued (in shares)		250,000
Stock-based compensation	2,447		2,447
Employee tax payments from restricted stock with holdings (in shares)		(56,642)
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	(430)		(430)
Net loss	(4,625)				(4,625)
Other comprehensive income (loss)	(150)			(150)
Balance, ending (in shares) at Sep. 30, 2021		17,691,268
Balance, ending at Sep. 30, 2021	$ 62,722	$ 18	$ 97,373	$ 172	$ (34,841)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (4,625)	$ 175	$ (2,133)	$ (1,050)	$ (5,454)	$ (6,646)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	2,324		2,266		6,767	6,802
Stock-based compensation expense					2,731	344
Bad debt expense					0	144
Gain on disposal of fixed assets					(24)	(11)
Gain on extinguishment of debt					(1,086)	0
Income from equity investment in joint venture	(308)		(642)		(1,267)	(1,529)
Distributions from equity investment in joint venture					1,387	2,054
Impairment of right-of-use lease asset	376		0		376	0
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable					(1,708)	3,629
Due to (from) related parties					42	0
Inventories					(173)	48
Prepaid expenses and other current assets					91	(396)
Accounts payable and accrued liabilities					3,878	(2,085)
Other					(82)	113
Net cash provided by operating activities					5,478	2,467
Cash flows from investing activities:
Acquisition of fixed assets					(6,948)	(327)
Proceeds on sales of fixed assets					258	12
Net cash used in investing activities					(6,690)	(315)
Cash flows from financing activities:
Proceeds from borrowings on short- and long-term notes payable					7,228	1,856
Payments on short- and long-term notes payable					(650)	(644)
Payments on notes payable and financed leases from related parties					(3,277)	(3,776)
Payment of debt issuance costs					(420)	0
Employee tax payments from restricted stock withholdings					(430)	0
Net cash provided by (used in) financing activities					2,451	(2,564)
Effect of exchange rate changes on cash					(115)	(157)
Net increase (decrease) in cash and cash equivalents					1,124	(569)
Cash and cash equivalents, beginning of period		$ 1,814		$ 3,979	1,814	3,979	$ 3,979
Cash and cash equivalents, end of period	$ 2,938		$ 3,410		2,938	3,410	$ 1,814
Supplemental disclosure of cash flow information:
Interest paid					645	834
Income taxes paid					228	210
Non-cash investing and financing activities:
Common stock issued to acquire fixed assets					3,795	0
Insurance premium financing					1,278	0
Equipment acquired under capital leases					$ 104	$ 0

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Overview and Basis of Presentation

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Overview and Basis of Presentation

Overview and Basis of Presentation

Overview

Stabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) produce, provide turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (“LNG”) and hydrogen to multiple end markets across North America. The Company also distributes LNG and hydrogen from third parties and provides services, transportation, and equipment to customers.

The Company is a supplier of LNG and hydrogen solutions to customers in diverse end markets, including aerospace, agriculture, industrial, utility, pipeline, mining, energy, remote clean power, and high horsepower transportation markets in North America and provides turnkey fuel solutions to help industrial users of propane, diesel and other crude-based fuel products convert to LNG, which may result in reduced fuel costs and an improved environmental footprint. Stabilis is vertically integrated from LNG production through distribution including cryogenic equipment rental and field services. Stabilis opened its 100,000 gallons per day (“gpd”) LNG production facility in George West, Texas in January 2015 to service industrial and oilfield customers in Texas and the greater Gulf Coast region. The Company owns a second liquefaction plant capable of producing 25,000 gpd that is currently not in operation.

On June 1, 2021 the Company acquired a third LNG production facility in Port Allen, Louisiana. The plant is capable of producing 30,000 gpd.

The Company also provides power delivery equipment and services through its subsidiary in Brazil, M&I Electric Brazil Sistemas e Servicios em Energia LTDA (“M&I Brazil”) and its 40% interest in a joint venture in China, BOMAY Electric Industries Co., Ltd. (“BOMAY”).

Basis of Presentation

The accompanying unaudited, interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") include our accounts and those of our subsidiaries and, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in the notes to consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to prevent the information presented herein from being misleading. The Condensed Consolidated Financial Statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020 included in the Company's Annual Report on Form 10-K, as filed on March 16, 2021.

All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements, all dollar amounts in tabulations are in thousands, unless otherwise indicated.

The accompanying Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is required to make certain disclosures if it concludes that there is substantial doubt about the entity’s ability to continue as a going concern within one year from the date of the issuance of these financial statements. The Company has incurred recurring operating losses, and the Company is subject to business risks and uncertainties inherent in the current LNG industry. There is no assurance that the Company will be able to generate sufficient revenues in the future to sustain itself or to support future growth.

The Company's working capital and business risks within the LNG industry were reviewed by management to determine if there was substantial doubt as to the Company’s ability to continue as a going concern. Management concluded that its plan to address the Company’s liquidity issues would allow it to continue as a going concern. The Company has recently experienced its highest ever year-to-date revenue, including a resumption of activity with existing customers as well as new revenue opportunities, particularly in Mexico and with power generation customers. On April 8, 2021, the Company obtained a new advancing loan facility, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, in the aggregate principal amount of up to $10.0 million, of which $7.0 million was drawn and outstanding as of September 30, 2021.

The Company's management believes that current working capital, access to its advancing loan facility and revenue growth of the business will generate sufficient cash flows to fund the business for the next 12 months.

Reclassifications

Presentation of certain prior year amounts have been condensed on the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows herein to conform to current period presentation. Such reclassifications had no impact on the consolidated financial position, results of operations or cash flows.

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include the carrying amount of contingencies, valuation allowances for receivables, inventories, and deferred income tax assets, valuations assigned to assets and liabilities in business combinations, and impairments of long-lived assets. Actual results could differ from those estimates, and these differences could be material to the Condensed Consolidated Financial Statements.

Income Taxes

The Company records income taxes for interim periods based on an estimated annual effective tax rate. The estimated annual effective tax rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, the timing of distributions on foreign investments from which foreign taxes are withheld, and changes to actual or forecasted permanent book to tax differences.

The Company’s effective tax rate for the nine months ended September 30, 2021 and 2020 was 7.0% and 3.9%, respectively. The 2021 rate reflects state and foreign income taxes. No U.S. federal income tax benefit was recorded for the periods presented as any net U.S. deferred tax assets generated from operating losses were offset by a change in the Company's valuation allowance on net deferred tax assets.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2021

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU No. 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes and also improves consistent application by clarifying and amending existing guidance. ASU No. 2019-12 was adopted by the Company effective January 1, 2021. The adoption of this standard had no impact on our unaudited interim condensed consolidated financial position or results of operations.

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU No. 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU No. 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU No. 2020-04 on our consolidated financial position and results of operations.

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Revenue Recognition

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregated Revenues

The table below presents revenue disaggregated by source, for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2021		2020		2021		2020
LNG Product	$	14,420	$	6,594	$	37,927	$	18,609
Rental	2,712		737		8,039		4,012
Service	334		187		957		593
Power Delivery	1,925		1,352		5,129		3,638
Other	313		149		1,368		1,008
	$	19,704	$	9,019	$	53,420	$	27,860

The table below presents revenue disaggregated by geographic location, for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2021		2020		2021		2020
Brazil	$	1,925	$	1,352	$	5,129	$	3,638
Mexico	3,501		2,729		7,198		2,778
United States	14,278		4,938		41,093		21,444
	$	19,704	$	9,019	$	53,420	$	27,860

See Note 4—Business Segments, below, for additional disaggregation of revenue.

Contract Liabilities

The Company recognizes contract liabilities upon receipt of payments for which the performance obligations have not been fulfilled at the reporting date, resulting in deferred revenue. Contract liabilities are included in accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. The table below presents the changes in the Company’s contract liabilities for the nine months ended September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Balance at beginning of period	$	357	$	185
Cash received, excluding amounts recognized as revenue	283		777
Amounts recognized as revenue	(352)		(605)
Balance at end of period	$	288	$	357

The Company has no other material contract assets or liabilities and contract costs.

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Business Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segments

Business SegmentsThe Company’s revenues are derived from two operating segments: LNG and Power Delivery. The LNG segment supplies LNG to multiple end markets in North America and provides turnkey fuel solutions to help users of propane, diesel and other crude-based fuel products convert to LNG. The Power Delivery segment provides power delivery equipment and services in Brazil and through our BOMAY joint venture in China. The tables below present operating results by segment for the three and nine months ended September 30, 2021 and 2020 as well as their respective total assets at September 30, 2021 and December 31, 2020 (in thousands):

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	LNG		Power Delivery		Total		LNG		Power Delivery		Total
Revenues	$	17,779	$	1,925	$	19,704	$	48,291	$	5,129	$	53,420
Depreciation	2,284		40		2,324		6,653		114		6,767
Loss from operations before equity income	(4,441)		(157)		(4,598)		(6,013)		(678)		(6,691)
Net equity income from foreign joint ventures' operations	—		246		246		—		1,075		1,075
Income (loss) from operations	(4,441)		89		(4,352)		(6,013)		397		(5,616)
Interest expense, net	118		12		130		188		36		224
Interest expense, net - related parties	120		—		120		441		—		441
Income tax expense	93		—		93		356		—		356
Net income (loss)	(4,735)		110		(4,625)		(5,967)		513		(5,454)

	September 30, 2021
	LNG		Power Delivery		Total
Total assets	$	71,450	$	16,219	$	87,669

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	LNG		Power Delivery		Total		LNG		Power Delivery		Total
Revenues	$	7,667	$	1,352	$	9,019	$	24,222	$	3,638	$	27,860
Depreciation	2,237		29		2,266		6,706		96		6,802
Loss from operations before equity income	(2,179)		(254)		(2,433)		(5,898)		(1,129)		(7,027)
Net equity income from foreign joint ventures' operations	—		573		573		—		1,347		1,347
Income (loss) from operations	(2,179)		319		(1,860)		(5,898)		218		(5,680)
Interest expense, net	11		(9)		2		16		12		28
Interest expense, net - related parties	199		—		199		681		—		681
Income tax expense	41		—		41		41		210		251
Net income (loss)	(2,458)		325		(2,133)		(6,678)		32		(6,646)

	December 31, 2020
	LNG		Power Delivery		Total
Total assets	$	64,757	$	15,556	$	80,313

Our operating segments offer different products and services and are managed separately as business units. Cash, cash equivalents and investments are not managed centrally, so the gains and losses on foreign currency remeasurement, and interest and dividend income, are included in the segments’ results.

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Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

The Company’s prepaid expenses and other current assets at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Prepaid LNG	$	51	$	90
Prepaid insurance	1,385		734
Prepaid supplier expenses	326		299
Other receivables	1,923		1,521
Deposits	360		285
Other	253		182
Total prepaid expenses and other current assets	$	4,298	$	3,111

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

The Company’s property, plant and equipment at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Liquefaction plants and systems	$	47,225	$	40,841
Real property and buildings	2,373		1,649
Vehicles and tanker trailers and equipment	49,556		47,179
Computer and office equipment	609		532
Construction in progress	964		191
Leasehold improvements	31		30
	100,758		90,422
Less: accumulated depreciation	(44,900)		(38,384)
	$	55,858	$	52,038

Depreciation expense for the nine months ended September 30, 2021 and 2020 both totaled $6.8 million respectively, of which all is included in the unaudited Condensed Consolidated Statements of Operations as its own and separate line item.

On June 1, 2021 the Company closed on the purchase of an LNG production facility in Port Allen, Louisiana. The acquisition included the LNG liquefaction facility, the related assets and real property. The Company paid consideration of $5.0 million in cash and 500,000 shares of Company common stock, subject to a registration rights agreement, which shares were valued at $3.8 million.

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Investments in Foreign Joint Ventures

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments in Foreign Joint Ventures

Investments in Foreign Joint Ventures

The Company holds a 40% interest in BOMAY Electric Industries Company, Ltd. (“BOMAY”), which builds electrical systems for sale in China. The majority partner in this foreign joint venture is Baoji Oilfield Machinery Co., Ltd. (a subsidiary of China National Petroleum Corporation), which owns 51%. The remaining 9% is owned by AA Energies, Inc. The Company made no sales to its joint venture during the three and nine months ended September 30, 2021 and 2020.

The Company accounts for its investment in BOMAY using the equity method of accounting. Under the equity method, the Company’s share of the joint venture operations earnings or losses is recognized in the condensed consolidated statements of operations as equity income (loss) from foreign joint venture operations. Joint venture income increases the carrying value of the joint venture and joint venture losses reduce the carrying value. Dividends received from the joint venture reduce the carrying value. The Company considers dividend distributions received from its equity method investments which do not exceed cumulative equity in earnings subsequent to the date of investment to be a return on investment and classifies these distributions as operating activities in the accompanying Condensed Consolidated Statements of Cash flows.

The tables below present a summary of BOMAY's assets and liabilities and equity at September 30, 2021 and December 31, 2020, and its operational results for the three and nine months ended September 30, 2021 and 2020 in U.S. dollars (in thousands, unaudited):

	September 30, 2021		December 31, 2020
Assets:
Total current assets	$	60,707	$	51,811
Total non-current assets	6,690		7,136
Total assets	$	67,397	$	58,947
Liabilities and equity:
Total liabilities	$	34,779	$	26,355
Total joint ventures’ equity	32,618		32,592
Total liabilities and equity	$	67,397	$	58,947

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue	$	10,040	$	17,641	$	43,261	$	44,844
Gross Profit	3,420		3,224		8,111		7,456
Earnings	688		1,663		2,923		3,662

The table below presents a summary of activity in our investment in BOMAY for the periods ended September 30, 2021 and December 31, 2020 in U.S. dollars (in thousands, unaudited):

	September 30, 2021		December 31, 2020
Investment in BOMAY (1)(2)
Initial investment	$	9,333	$	9,333
Undistributed earnings:
Balance at the beginning of the period	1,908		1,257
Equity in earnings	1,267		2,705
Dividend distributions	(1,387)		(2,054)
Balance at end of period	1,788		1,908
Foreign currency translation:
Balance at the beginning of the period	656		(69)
Change during the period	146		725
Balance at end of period	802		656
Total investment in BOMAY at end of period	$	11,923	$	11,897

(1)Accumulated statutory reserves in equity method investments of $2.66 million at September 30, 2021 and December 31, 2020 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”) regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

(2)The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.2 million will be accreted over the remaining seven year life of the joint venture. The Company accreted $97 thousand for both the nine months ended September 30, 2021 and 2020, which is included in income from equity investments in foreign joint ventures in the accompanying unaudited interim condensed consolidated statements of operations. As of September 30, 2021 and December 31, 2020, accumulated accretion totaled $280 thousand and $183 thousand, respectively.

In accordance with our long-lived asset policy, when events or circumstances indicate the carrying amount of an asset may not be recoverable, management tests long-lived assets for impairment. If the estimated future cash flows are projected to be less than the carrying amount, an impairment write-down (representing the carrying amount of the long-lived asset which exceeds the present value of estimated expected future cash flows) would be recorded as a period expense. In making this evaluation, a variety of quantitative and qualitative factors are considered including national and local economic, political and market conditions, industry trends and prospects, liquidity and capital resources and other pertinent factors. Based on this evaluation for this reporting period, the Company does not believe an impairment of our investment in BOMAY is necessary for the period ending September 30, 2021.

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Accrued Liabilities

9 Months Ended

Sep. 30, 2021

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued Liabilities

    The Company’s accrued liabilities at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Compensation and benefits	$	3,134	$	1,745
Professional fees	623		408
LNG fuel and transportation	2,507		1,151
Accrued interest	—		21
Contract liabilities	288		357
Other taxes payable	582		328
Other accrued liabilities	298		351
Total accrued liabilities	$	7,432	$	4,361

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

Debt

The Company’s carrying value of debt at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Unsecured promissory note	$	—	$	1,080
Secured term note, net of debt issuance costs	6,598		—
Secured term note payable - related party	—		1,077
Secured promissory note - related party	3,498		5,000
Insurance and other notes payable	1,554		714
Less: amounts due within one year	(3,959)		(4,463)
Total long-term debt	$	7,691	$	3,408

Unsecured Promissory Note

During 2020, the Company received loan proceeds of $1.1 million (the “PPP Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Under the terms of the PPP, all or a portion of the principal may be forgiven if the PPP Loan proceeds are used for qualifying expenses as described in the CARES Act, such as payroll costs, benefits, rent, and utilities. In June 2021, the forgiveness of the PPP Loan was approved by the Small Business Administration in full and the PPP Loan has been forgiven. The Company recognized a gain on forgiveness of debt in the amount of $1.1 million which is included in other income (expense) in the accompanying unaudited interim condensed consolidated statements of operations.

Secured Term Note

On April 8, 2021, the Company entered into a loan agreement (the “Loan Agreement”) with AmeriState Bank (“Lender”), as lender, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, to provide for an advancing loan facility in the aggregate principal amount of up to $10.0 million (the “AmeriState Loan”), of which $7.0 million was drawn and outstanding as of September 30, 2021. The AmeriState Loan, which is in the form of a term loan facility, matures on April 8, 2031 and bears interest at 5.75% per annum through April 8, 2026, and the U.S. prime lending rate plus 2.5% per annum thereafter. The AmeriState Loan provides that proceeds from borrowings may be used for working capital purposes at the Company’s liquefaction plant in George West, Texas and related fees and costs associated with the AmeriState Loan.

Upon an Event of Default (as defined in the Loan Agreement), the Lender may (i) terminate its commitment, (ii) declare the outstanding principal amount of the Advancing Notes (as defined in the Loan Agreement) due and payable, or (iii) exercise all rights and remedies available to Lender under the Loan Agreement.

On April 8, 2021, Mile High LNG LLC, Stabilis GDS, Inc., Stabilis LNG Eagle Ford LLC and Stabilis Energy Services, LLC, each a wholly owned subsidiary of the Company (collectively, “Debtor”), entered into a Security Agreement and Assignment (the “Security Agreement”) in favor of the Lender. The Security Agreement grants to Lender a first priority security interest in the collateral identified therein, which includes specific equipment collateral owned by the Company.

Repayment of Secured Term Note Payable - Related Party

The Company had a Secured Term Note Payable, as amended, with Chart Energy & Chemicals, Inc. (“Chart E&C”), who beneficially owns approximately 8.3% of our outstanding common stock. The note contained various covenants that limited the Company's ability to grant certain liens, incur additional indebtedness, guarantee or become contingently liable for obligations of any person except for those allowed by Chart E&C, merge or consolidate into or with a third party or engage in certain asset dispositions and acquisitions, pay dividends or make distributions, transact with affiliates, prepay indebtedness, and issue additional equity interests. Borrowings incurred interest on the outstanding principal at the rate of 3.0% plus the London interbank offered rate (3.15% at December 31, 2020). During the three months ended September 30, 2021, the Company repaid this debt in full totaling approximately $1.1 million.

Amendment of Secured Promissory Note - Related Party

On September 20, 2021, the Company amended its secured promissory note with M/G Finance Co., Ltd, a related party, to defer scheduled debt and interest payments for September through December 2021 for a period of one year, such payments to be included with the scheduled payments for September through December 2022. The secured promissory note is secured by certain equipment of the Company.

During the nine months ended September 30, 2021 and 2020, the Company recorded interest expense on debt as follows (in thousands):

	September 30, 2021		September 30, 2020
Unsecured promissory note	$	—	$	4
Secured term note	$	176	$	—
Secured term note payable - related party	22		57
Secured promissory note - related party	409		224
Insurance and other notes payable	41		24
Total interest expense on debt	$	648	$	309

Certain of the agreements governing our outstanding debt have certain covenants with which we must comply. As of September 30, 2021, we were in compliance with all of these covenants.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

LeasesOn July 30, 2021, the Company terminated its office lease with Millenium-Windfall Partners, Ltd for a fixed settlement of $0.4 million, payable in 43 monthly payments. In accordance with the termination, the Company was released from all future rights and obligations under the lease. In accordance with the termination of the lease, the Company recorded an impairment charge of $0.4 million related to its remaining right-of-use asset for this lease for the three and nine months ended September 30,

2021. The Company also remeasured the lease obligation as of July 30, 2021 and the remaining obligation of $0.4 million under the termination settlement is included in the Company's liabilities at September 30, 2021. The table below summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2021 and December 31, 2020 (in thousands):

	Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Right-of-use assets	$	128	$	786
Finance lease assets	Property and equipment, net of accumulated depreciation	90		6,781
Total lease assets		$	218	$	7,567
Liabilities
Current
Operating	Current portion of operating lease obligations	$	206	$	362
Finance	Current portion of finance lease obligation	16		—
Finance	Current portion of finance lease obligation - related parties	—		648
Noncurrent
Operating	Long-term portion of operating lease obligation	314		490
Finance	Long-term portion of finance lease obligations	68		—
Total lease liabilities		$	604	$	1,500

The table below summarizes the components of lease expense for the three and nine months ended September 30, 2021 and 2020 (in thousands, unaudited):

Lease Cost	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Operating lease cost	Cost of sales	$	39	$	42	$	116	$	122
Operating lease cost	Selling, general and administrative expenses	75		4		198		185
Finance lease cost
Amortization of leased assets	Depreciation	5		294		14		879
Interest on lease liabilities	Interest expense	2		104		17		400
Net lease cost		$	121	$	444	$	345	$	1,586

On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur.

In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. These assets are included in the Company's property, plant and equipment, net on the Condensed Consolidated Balance Sheets and the purchase had no effect on the net book value of these assets.

The schedule below presents the future minimum lease payments for our operating and finance lease obligations at September 30, 2021 (in thousands):

	Operating Leases		Finance Leases		Total
Remainder 2021	$	85	$	6	$	91
2022	181		25		206
2023	147		25		172
2024	131		41		172
2025	21		—		21
Thereafter	—		—		—
Total lease payments	565		97		662
Less: Interest	(45)		(13)		(58)
Present value of lease liabilities	$	520	$	84	$	604

Lease term and discount rates for our operating and finance lease obligations are as follows:

	September 30, 2021
Weighted-average remaining lease term (years)
Operating leases	2.7
Finance leases	2.3
Weighted-average discount rate
Operating leases	7.2%
Finance leases	10.7%

The table below summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 (in thousands):

	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	250	$	287
Financing cash flows from finance leases	668		2,640
Interest paid	35		400
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	1,163

Leases

LeasesOn July 30, 2021, the Company terminated its office lease with Millenium-Windfall Partners, Ltd for a fixed settlement of $0.4 million, payable in 43 monthly payments. In accordance with the termination, the Company was released from all future rights and obligations under the lease. In accordance with the termination of the lease, the Company recorded an impairment charge of $0.4 million related to its remaining right-of-use asset for this lease for the three and nine months ended September 30,

2021. The Company also remeasured the lease obligation as of July 30, 2021 and the remaining obligation of $0.4 million under the termination settlement is included in the Company's liabilities at September 30, 2021. The table below summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2021 and December 31, 2020 (in thousands):

	Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Right-of-use assets	$	128	$	786
Finance lease assets	Property and equipment, net of accumulated depreciation	90		6,781
Total lease assets		$	218	$	7,567
Liabilities
Current
Operating	Current portion of operating lease obligations	$	206	$	362
Finance	Current portion of finance lease obligation	16		—
Finance	Current portion of finance lease obligation - related parties	—		648
Noncurrent
Operating	Long-term portion of operating lease obligation	314		490
Finance	Long-term portion of finance lease obligations	68		—
Total lease liabilities		$	604	$	1,500

The table below summarizes the components of lease expense for the three and nine months ended September 30, 2021 and 2020 (in thousands, unaudited):

Lease Cost	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Operating lease cost	Cost of sales	$	39	$	42	$	116	$	122
Operating lease cost	Selling, general and administrative expenses	75		4		198		185
Finance lease cost
Amortization of leased assets	Depreciation	5		294		14		879
Interest on lease liabilities	Interest expense	2		104		17		400
Net lease cost		$	121	$	444	$	345	$	1,586

On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur.

In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. These assets are included in the Company's property, plant and equipment, net on the Condensed Consolidated Balance Sheets and the purchase had no effect on the net book value of these assets.

The schedule below presents the future minimum lease payments for our operating and finance lease obligations at September 30, 2021 (in thousands):

	Operating Leases		Finance Leases		Total
Remainder 2021	$	85	$	6	$	91
2022	181		25		206
2023	147		25		172
2024	131		41		172
2025	21		—		21
Thereafter	—		—		—
Total lease payments	565		97		662
Less: Interest	(45)		(13)		(58)
Present value of lease liabilities	$	520	$	84	$	604

Lease term and discount rates for our operating and finance lease obligations are as follows:

	September 30, 2021
Weighted-average remaining lease term (years)
Operating leases	2.7
Finance leases	2.3
Weighted-average discount rate
Operating leases	7.2%
Finance leases	10.7%

The table below summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 (in thousands):

	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	250	$	287
Financing cash flows from finance leases	668		2,640
Interest paid	35		400
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	1,163

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Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Other Purchases and Sales

During the nine months ended September 30, 2021 and 2020, the Company paid Applied Cryo Technologies, Inc. (“ACT”), a company owned 51% by Crenshaw Family Holdings, LP (“Crenshaw Family Holdings”), $530 thousand and $109 thousand, respectively, for equipment, repairs and services. Casey Crenshaw, the Company's controlling shareholder, is the beneficial owner of 25% of Crenshaw Family Holdings and is deemed to jointly control Crenshaw Family Holdings with family members. During the three months ended September 30, 2021 and 2020, the Company paid ACT $32 thousand and $36 thousand, respectively, for equipment repairs and services. The Company had $30 thousand of sales to ACT during the three and nine months ended September 30, 2021. The Company had no sales to ACT during the three and nine months ended September 30, 2020. The Company had $30 thousand and $2 thousand due from ACT included in accounts receivable on the unaudited condensed consolidated balance sheets at September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 and December 31, 2020, the Company had $15 thousand and $121 thousand, respectively, due to ACT included in accounts payable on the unaudited condensed consolidated balance sheets.

The Company purchases supplies and services from a subsidiary of The Modern Group. Casey Crenshaw is the beneficial owner of 25% of The Modern Group and is deemed to jointly control The Modern Group with family members. During the nine months ended September 30, 2021 and 2020, the Company made purchases of supplies and services from a subsidiary of The Modern Group totaling $848 thousand and $213 thousand, respectively. During the three months ended September 30, 2021 and 2020, the Company made purchases of supplies and services totaling $127 thousand and $18 thousand, respectively. The Company had $13 thousand of sales to The Modern Group during the three and nine months ended September 30, 2021 with no sales during the same period of 2020. The Company had an $11 thousand receivable due from The Modern Group at September 30, 2021. There was no receivable due from The Modern Group at December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company had $548 thousand and $582 thousand, respectively, due to a subsidiary of The Modern Group included in accounts payable on the unaudited condensed consolidated balance sheets.

Chart E&C beneficially owns 8.3% of our outstanding common stock and was party to a Secured Term Note Payable with the Company prior to its repayment by the Company during the three and nine months ended September 30, 2021. The Company purchases services from Chart E&C. During the nine months ended September 30, 2021 and 2020, purchases from Chart E&C totaled $137 thousand and $22 thousand, respectively. During the three months ended September 30, 2021 and 2020, purchases from Chart E&C totaled $59 thousand and $2 thousand. As of September 30, 2021 and December 31, 2020, the Company had $58 thousand and $14 thousand, respectively, due to Chart E&C included in accounts payable on the unaudited condensed consolidated balance sheets.

Secured Promissory Note - Related Party

On September 20, 2021, the Company amended its secured promissory note with M/G Finance Co., Ltd, a related party, to defer scheduled debt and interest payments for September through December 2021. See additional discussion in Note 9 - Debt.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Environmental Matters

The Company is subject to federal, state and local environmental laws and regulations. The Company does not anticipate any expenditures to comply with such laws and regulations that would have a material impact on the Company’s condensed consolidated financial position, results of operations or liquidity. The Company believes that its operations comply, in all material respects, with applicable federal, state and local environmental laws and regulations.

Litigation, Claims and Contingencies

The Company may become party to various legal actions that arise in the ordinary course of its business. The Company is also subject to audit by tax and other authorities for varying periods in various federal, state and local jurisdictions, and disputes may arise during the course of these audits. It is impossible to determine the ultimate liabilities that the Company may incur resulting from any of these lawsuits, claims, proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities, if any. If these matters were to ultimately be resolved unfavorably, it is possible that such an outcome could have a material adverse effect upon the Company’s consolidated financial position, results of operations, or liquidity. The Company does not, however, anticipate such an outcome and it believes the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity. Additionally, the Company currently expenses all legal costs as they are incurred.

In October 2018, American Electric Technologies, Inc., a predecessor in interest to the Company (“American Electric”) received notification of a potential liability of $4.3 million associated with an asset purchase agreement to sell substantially all of its U.S. business assets and operations to Myers Power Products, Inc. (“Myers”). The contractual terms of the agreement included a provision for true-up of the net working capital, estimated as of the date of closing, to actual working capital as calculated by Myers and agreed to by American Electric. Any difference in the actual (conclusive) net working capital in relation to the estimated working capital at closing results in an adjustment to the purchase price. In response, American Electric disputed Myers’ claim and Myers’ working capital calculation. On November 5, 2020, the Company filed a petition in Harris County, Texas requesting a declaratory judgment in favor of the Company. During the nine months ended September 30, 2021, the parties reached an amicable resolution of their differences and all claims regarding the net working capital were mutually released and the lawsuit was dismissed with prejudice to refiling same.

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Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Issuances of Common Stock

The Company is authorized to issue up to 37,500,000 shares of common stock, $0.001 par value per share.

During the nine months ended September 30, 2021, the Company issued 500,000 shares of common stock, valued at $3.8 million, as partial consideration for the purchase of an LNG production facility in Port Allen, Louisiana. See Note 6—Property, Plant and Equipment, above, for additional information.

In addition, during the nine months ended September 30, 2021, the Company issued a net 294,642 shares of common stock upon vesting of the Restricted Stock Units under its 2019 Long Term Incentive Plan. See Note 14—Stock-Based Compensation, below, for additional information.

Issuances of Warrants

As of September 30, 2021, the Company had outstanding Warrants to purchase 62,500 shares of our common stock as follows:

Date of Issuance	No. of Warrants	Exercise Price	Expiration Date
Nov. 13, 2017	62,500	$18.08	Nov. 13, 2022

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Amendment of the 2019 Long Term Incentive Plan

In July 2021, the Company's Board of Directors approved the Amended and Restated 2019 Long Term Incentive Plan (the “Amended and Restated Plan”), which was subsequently approved by the Company's shareholders on September 14, 2021. Under the Amended and Restated Plan, the maximum number of shares of common stock available for issuance was increased from 1,675,000 shares to 4,000,000 shares.

Awards under the Amended and Restated Plan may be granted to employees, officers and directors of the Company and affiliates, and any other person who provides services to the Company and its affiliates (including independent contractors and consultants of the Company and its subsidiaries). Awards may be granted in the form of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, substitute awards, other stock-based awards, cash awards and/or any combination of the foregoing. No participant may receive a grant covering more than 2,000,000 shares of our common stock in any year and a non-employee member of the Board may not be granted more than 100,000 shares in any year.

Restricted Stock Units

The Company granted 500,000 Restricted Stock Units ("RSUs") under the 2019 Plan during the nine months ended September 30, 2021 as outlined below.

On August 22, 2021, the Company entered into a separation and release agreement with James C. Reddinger (formerly the Company's chief executive officer) pursuant to which Mr. Reddinger voluntarily resigned from his employment with the Company and as a member of the Company’s Board of Directors. Under the separation and release agreement, the Company agreed that Mr. Reddinger’s 500,000 RSUs granted under the Company's 2019 Long Term Incentive Plan would fully vest as of August 22, 2021, subject to Mr. Reddinger agreeing to hold the shares through December 31, 2022, and his continued compliance with his obligations in his separation and release agreement. In accordance with the 2019 Long Term Incentive Plan, the RSUs will be settled upon the earlier of (i) Mr. Reddinger's death or (ii) the date that is six months after his separation from service.

On August 23, 2021, the Company appointed Westervelt T. “Westy” Ballard, Jr., age 49, as its president and chief executive officer. In connection with Mr. Ballard's appointment, the Company granted Mr. Ballard 500,000 RSUs, of which 250,000 RSUs vested immediately on August 23, 2021. The remaining 250,000 will vest over a two-year period in two equal tranches on August 23, 2022, and August 23, 2023, conditioned on Mr. Ballard remaining continuously employed through each vesting date.

Stock Options

The Company also agreed to grant Mr. Ballard 1,300,000 options to purchase the Company’s common stock, subject to Board approval with a strike price equal to $10.00 per share, which will vest (i) 442,000 options on August 23, 2022, (ii) 429,000 options on August 23, 2023, and (iii) 429,000 options on August 23, 2024, conditioned on Mr. Ballard remaining continuously employed through each vesting date. The Company anticipates entering into an award agreement with Mr. Ballard with respect to such options during the fourth quarter of 2021.

The Company includes stock compensation expense within general and administrative expenses in the unaudited interim condensed consolidated statements of operations. During the nine months ended September 30, 2021, the Company recognized $2.7 million of stock compensation expense which included $0.5 million and $1.7 million related to the immediate vesting of Mr. Reddinger's and Mr. Ballard's RSUs, respectively. During the nine months ended September 30, 2020, the Company recognized $249 thousand in stock-based compensation costs related to RSUs. The Company recognized $2.4 million and $148 thousand in stock-based compensation costs related to RSUs during the three months ended September 30, 2021 and 2020, respectively. During the nine months ended September 30, 2021, a net 294,642 share awards vested and were issued.

As of September 30, 2021, the Company had $1.7 million of unrecognized compensation costs related to 430,688 outstanding RSUs, which is expected to be recognized over a weighted average period of less than two years. All units are expected to vest.

Restricted Stock Awards

In February 2020, independent directors received 50% of their retainer fee as Restricted Stock Awards (“RSAs”). The 34,706 RSAs were issued immediately upon grant and were subject to a one year vesting period and other restrictions under the Company's 2019 Long Term Incentive Plan (the “2019 Plan”). During the nine months ended September 30, 2021, the 34,706 RSAs vested.

The Company granted 61,308 RSAs under the 2019 Plan to independent directors in April 2020. The Company recognized $17 thousand and $95 thousand in stock-based compensation costs related to RSAs for the nine months ended September 30, 2021 and 2020, respectively, which is included in general and administrative expenses in the unaudited condensed consolidated statements of operations. The Company recognized $38 thousand in stock-based compensation costs related to RSAs during the three months ended September 30, 2020. The Company did not recognize stock-based compensation expense for the three months ended September 30, 2021. As of September 30, 2021, the Company had no unrecognized compensation costs related to grants of RSAs.

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Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2021
Risks and Uncertainties [Abstract]
Concentration of Credit Risk	Concentration of Credit RiskAs of September 30, 2021 and December 31, 2020, two customers comprised 42% and 47% of our net accounts receivable balance, respectively. During the three months ended September 30, 2021, revenues from two customers represented 39% of total revenues. During the three months ended September 30, 2020, revenues from one customer represented 26% of total revenues. During the nine months ended September 30, 2021 revenues from two customers represented 38% of our total revenues. During the nine months ended September 30, 2020, revenues from one customer represented 12% of our total revenues.As of September 30, 2021, two vendors comprised 33% of our net accounts payable balance. As of December 31, 2020, one vendor comprised 15% of our net accounts payable balance. For the three months ended September 30, 2021 and September 30, 2020, cost of revenues from one vendor represented 17% and 23% of our total cost of revenues, respectively. During the nine months ended September 30, 2021, cost of revenues from one vendor represented 13% of our total cost of revenues. During the nine months ended September 30, 2020, cost of revenues from two vendors represented 23% of our total cost of revenues.

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Overview and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Overview

OverviewStabilis Solutions, Inc. and its subsidiaries (the “Company”, “Stabilis”, “our”, “us” or “we”) produce, provide turnkey clean energy production, storage, transportation and fueling solutions using liquefied natural gas (“LNG”) and hydrogen to multiple end markets across North America. The Company also distributes LNG and hydrogen from third parties and provides services, transportation, and equipment to customers.

Basis of Presentation

Basis of Presentation

The accompanying unaudited, interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") include our accounts and those of our subsidiaries and, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and disclosures normally included in the notes to consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") have been condensed or omitted. We believe that the presentation and disclosures herein are adequate to prevent the information presented herein from being misleading. The Condensed Consolidated Financial Statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for the full year. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2020 included in the Company's Annual Report on Form 10-K, as filed on March 16, 2021.

All intercompany accounts and transactions have been eliminated in consolidation. In the Notes to Condensed Consolidated Financial Statements, all dollar amounts in tabulations are in thousands, unless otherwise indicated.

The accompanying Condensed Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is required to make certain disclosures if it concludes that there is substantial doubt about the entity’s ability to continue as a going concern within one year from the date of the issuance of these financial statements. The Company has incurred recurring operating losses, and the Company is subject to business risks and uncertainties inherent in the current LNG industry. There is no assurance that the Company will be able to generate sufficient revenues in the future to sustain itself or to support future growth.

The Company's working capital and business risks within the LNG industry were reviewed by management to determine if there was substantial doubt as to the Company’s ability to continue as a going concern. Management concluded that its plan to address the Company’s liquidity issues would allow it to continue as a going concern. The Company has recently experienced its highest ever year-to-date revenue, including a resumption of activity with existing customers as well as new revenue opportunities, particularly in Mexico and with power generation customers. On April 8, 2021, the Company obtained a new advancing loan facility, pursuant to the United States Department of Agriculture, Business & Industry Loan Program, in the aggregate principal amount of up to $10.0 million, of which $7.0 million was drawn and outstanding as of September 30, 2021.

The Company's management believes that current working capital, access to its advancing loan facility and revenue growth of the business will generate sufficient cash flows to fund the business for the next 12 months.

Use of Estimates

Use of Estimates

The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates include the carrying amount of contingencies, valuation allowances for receivables, inventories, and deferred income tax assets, valuations assigned to assets and liabilities in business combinations, and impairments of long-lived assets. Actual results could differ from those estimates, and these differences could be material to the Condensed Consolidated Financial Statements.

Income Taxes

Income TaxesThe Company records income taxes for interim periods based on an estimated annual effective tax rate. The estimated annual effective tax rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, the timing of distributions on foreign investments from which foreign taxes are withheld, and changes to actual or forecasted permanent book to tax differences.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (“ASU No. 2019-12”), which simplifies the accounting for income taxes by removing certain exceptions to the general principles of Topic 740, Income Taxes and also improves consistent application by clarifying and amending existing guidance. ASU No. 2019-12 was adopted by the Company effective January 1, 2021. The adoption of this standard had no impact on our unaudited interim condensed consolidated financial position or results of operations.

Recently Issued Accounting Standards

In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU No. 2020-04”), which provides guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying generally accepted accounting principles to contract modifications, hedging relationships, and other transactions impacted by reference rate reform. The provisions of ASU No. 2020-04 apply only to those transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Adoption of the provisions of ASU No. 2020-04 are optional and are effective from March 12, 2020 through December 31, 2022. We are currently evaluating the impact of ASU No. 2020-04 on our consolidated financial position and results of operations.

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Revenue Disaggregated by Source

The table below presents revenue disaggregated by source, for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2021		2020		2021		2020
LNG Product	$	14,420	$	6,594	$	37,927	$	18,609
Rental	2,712		737		8,039		4,012
Service	334		187		957		593
Power Delivery	1,925		1,352		5,129		3,638
Other	313		149		1,368		1,008
	$	19,704	$	9,019	$	53,420	$	27,860

The table below presents revenue disaggregated by geographic location, for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
Revenues	2021		2020		2021		2020
Brazil	$	1,925	$	1,352	$	5,129	$	3,638
Mexico	3,501		2,729		7,198		2,778
United States	14,278		4,938		41,093		21,444
	$	19,704	$	9,019	$	53,420	$	27,860

Schedule of Contract Balances

The table below presents the changes in the Company’s contract liabilities for the nine months ended September 30, 2021 and December 31, 2020 (in thousands):

	September 30, 2021		December 31, 2020
Balance at beginning of period	$	357	$	185
Cash received, excluding amounts recognized as revenue	283		777
Amounts recognized as revenue	(352)		(605)
Balance at end of period	$	288	$	357

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Business Segments (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Information

The tables below present operating results by segment for the three and nine months ended September 30, 2021 and 2020 as well as their respective total assets at September 30, 2021 and December 31, 2020 (in thousands):

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	LNG		Power Delivery		Total		LNG		Power Delivery		Total
Revenues	$	17,779	$	1,925	$	19,704	$	48,291	$	5,129	$	53,420
Depreciation	2,284		40		2,324		6,653		114		6,767
Loss from operations before equity income	(4,441)		(157)		(4,598)		(6,013)		(678)		(6,691)
Net equity income from foreign joint ventures' operations	—		246		246		—		1,075		1,075
Income (loss) from operations	(4,441)		89		(4,352)		(6,013)		397		(5,616)
Interest expense, net	118		12		130		188		36		224
Interest expense, net - related parties	120		—		120		441		—		441
Income tax expense	93		—		93		356		—		356
Net income (loss)	(4,735)		110		(4,625)		(5,967)		513		(5,454)

	September 30, 2021
	LNG		Power Delivery		Total
Total assets	$	71,450	$	16,219	$	87,669

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	LNG		Power Delivery		Total		LNG		Power Delivery		Total
Revenues	$	7,667	$	1,352	$	9,019	$	24,222	$	3,638	$	27,860
Depreciation	2,237		29		2,266		6,706		96		6,802
Loss from operations before equity income	(2,179)		(254)		(2,433)		(5,898)		(1,129)		(7,027)
Net equity income from foreign joint ventures' operations	—		573		573		—		1,347		1,347
Income (loss) from operations	(2,179)		319		(1,860)		(5,898)		218		(5,680)
Interest expense, net	11		(9)		2		16		12		28
Interest expense, net - related parties	199		—		199		681		—		681
Income tax expense	41		—		41		41		210		251
Net income (loss)	(2,458)		325		(2,133)		(6,678)		32		(6,646)

	December 31, 2020
	LNG		Power Delivery		Total
Total assets	$	64,757	$	15,556	$	80,313

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Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

The Company’s prepaid expenses and other current assets at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Prepaid LNG	$	51	$	90
Prepaid insurance	1,385		734
Prepaid supplier expenses	326		299
Other receivables	1,923		1,521
Deposits	360		285
Other	253		182
Total prepaid expenses and other current assets	$	4,298	$	3,111

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Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

The Company’s property, plant and equipment at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Liquefaction plants and systems	$	47,225	$	40,841
Real property and buildings	2,373		1,649
Vehicles and tanker trailers and equipment	49,556		47,179
Computer and office equipment	609		532
Construction in progress	964		191
Leasehold improvements	31		30
	100,758		90,422
Less: accumulated depreciation	(44,900)		(38,384)
	$	55,858	$	52,038

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Investments in Foreign Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Financial Information of Foreign Joint Venture

The tables below present a summary of BOMAY's assets and liabilities and equity at September 30, 2021 and December 31, 2020, and its operational results for the three and nine months ended September 30, 2021 and 2020 in U.S. dollars (in thousands, unaudited):

	September 30, 2021		December 31, 2020
Assets:
Total current assets	$	60,707	$	51,811
Total non-current assets	6,690		7,136
Total assets	$	67,397	$	58,947
Liabilities and equity:
Total liabilities	$	34,779	$	26,355
Total joint ventures’ equity	32,618		32,592
Total liabilities and equity	$	67,397	$	58,947

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue	$	10,040	$	17,641	$	43,261	$	44,844
Gross Profit	3,420		3,224		8,111		7,456
Earnings	688		1,663		2,923		3,662

Schedule of Activity in Investment in Foreign Joint Ventures

The table below presents a summary of activity in our investment in BOMAY for the periods ended September 30, 2021 and December 31, 2020 in U.S. dollars (in thousands, unaudited):

	September 30, 2021		December 31, 2020
Investment in BOMAY (1)(2)
Initial investment	$	9,333	$	9,333
Undistributed earnings:
Balance at the beginning of the period	1,908		1,257
Equity in earnings	1,267		2,705
Dividend distributions	(1,387)		(2,054)
Balance at end of period	1,788		1,908
Foreign currency translation:
Balance at the beginning of the period	656		(69)
Change during the period	146		725
Balance at end of period	802		656
Total investment in BOMAY at end of period	$	11,923	$	11,897

(1)Accumulated statutory reserves in equity method investments of $2.66 million at September 30, 2021 and December 31, 2020 is included in our investment in BOMAY. In accordance with the People’s Republic of China, (“PRC”) regulations on enterprises with foreign ownership, an enterprise established in the PRC with foreign ownership is required to provide for certain statutory reserves, namely (i) General Reserve Fund, (ii) Enterprise Expansion Fund and (iii) Staff Welfare and Bonus Fund, which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

(2)The Company’s initial investment in BOMAY differed from the Company’s 40% share of BOMAY’s equity as a result of applying fair value accounting pursuant to ASC 805. The basis difference of approximately $1.2 million will be accreted over the remaining seven year life of the joint venture. The Company accreted $97 thousand for both the nine months ended September 30, 2021 and 2020, which is included in income from equity investments in foreign joint ventures in the accompanying unaudited interim condensed consolidated statements of operations. As of September 30, 2021 and December 31, 2020, accumulated accretion totaled $280 thousand and $183 thousand, respectively.

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Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

The Company’s accrued liabilities at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Compensation and benefits	$	3,134	$	1,745
Professional fees	623		408
LNG fuel and transportation	2,507		1,151
Accrued interest	—		21
Contract liabilities	288		357
Other taxes payable	582		328
Other accrued liabilities	298		351
Total accrued liabilities	$	7,432	$	4,361

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Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Carrying Value of Debt

The Company’s carrying value of debt at September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30, 2021		December 31, 2020
Unsecured promissory note	$	—	$	1,080
Secured term note, net of debt issuance costs	6,598		—
Secured term note payable - related party	—		1,077
Secured promissory note - related party	3,498		5,000
Insurance and other notes payable	1,554		714
Less: amounts due within one year	(3,959)		(4,463)
Total long-term debt	$	7,691	$	3,408

Schedule Of Interest Expense On Debt

During the nine months ended September 30, 2021 and 2020, the Company recorded interest expense on debt as follows (in thousands):

	September 30, 2021		September 30, 2020
Unsecured promissory note	$	—	$	4
Secured term note	$	176	$	—
Secured term note payable - related party	22		57
Secured promissory note - related party	409		224
Insurance and other notes payable	41		24
Total interest expense on debt	$	648	$	309

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of Lease Assets and Liabilities Obligations

The table below summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2021 and December 31, 2020 (in thousands):

	Classification	September 30, 2021		December 31, 2020
Assets
Operating lease assets	Right-of-use assets	$	128	$	786
Finance lease assets	Property and equipment, net of accumulated depreciation	90		6,781
Total lease assets		$	218	$	7,567
Liabilities
Current
Operating	Current portion of operating lease obligations	$	206	$	362
Finance	Current portion of finance lease obligation	16		—
Finance	Current portion of finance lease obligation - related parties	—		648
Noncurrent
Operating	Long-term portion of operating lease obligation	314		490
Finance	Long-term portion of finance lease obligations	68		—
Total lease liabilities		$	604	$	1,500

Schedule of Lease Expenses

The table below summarizes the components of lease expense for the three and nine months ended September 30, 2021 and 2020 (in thousands, unaudited):

Lease Cost	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
		2021		2020		2021		2020
Operating lease cost	Cost of sales	$	39	$	42	$	116	$	122
Operating lease cost	Selling, general and administrative expenses	75		4		198		185
Finance lease cost
Amortization of leased assets	Depreciation	5		294		14		879
Interest on lease liabilities	Interest expense	2		104		17		400
Net lease cost		$	121	$	444	$	345	$	1,586

Schedule of Future Minimum Lease Payments for Operating and Finance Obligation

The schedule below presents the future minimum lease payments for our operating and finance lease obligations at September 30, 2021 (in thousands):

	Operating Leases		Finance Leases		Total
Remainder 2021	$	85	$	6	$	91
2022	181		25		206
2023	147		25		172
2024	131		41		172
2025	21		—		21
Thereafter	—		—		—
Total lease payments	565		97		662
Less: Interest	(45)		(13)		(58)
Present value of lease liabilities	$	520	$	84	$	604

Schedule of Lease Costs and Terms for Operating and Finance Lease Obligations

Lease term and discount rates for our operating and finance lease obligations are as follows:

	September 30, 2021
Weighted-average remaining lease term (years)
Operating leases	2.7
Finance leases	2.3
Weighted-average discount rate
Operating leases	7.2%
Finance leases	10.7%

Schedule of Supplemental Cash Flow Information Related To Leases

The table below summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2021 and 2020 (in thousands):

	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	250	$	287
Financing cash flows from finance leases	668		2,640
Interest paid	35		400
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	1,163

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Outstanding Warrants

As of September 30, 2021, the Company had outstanding Warrants to purchase 62,500 shares of our common stock as follows:

Date of Issuance	No. of Warrants	Exercise Price	Expiration Date
Nov. 13, 2017	62,500	$18.08	Nov. 13, 2022

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Overview and Basis of Presentation (Details) gallon in Thousands			9 Months Ended
	Jun. 01, 2021 gallon	Apr. 08, 2021 USD ($)	Sep. 30, 2021 gallon	Sep. 30, 2020
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Effective tax rate			7.00%	3.90%
Loan Agreement | AmeriState Bank
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Line of credit facility, maximum borrowing capacity | $		$ 10,000,000
Proceeds from loan | $		$ 7,000,000
Bomay
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Ownership percentage			40.00%
Texas
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Daily capacity of production facility in gallons			100
Permian Basin
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Daily capacity of production facility in gallons			25
Louisiana
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Daily capacity of production facility in gallons	30

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Revenue Recognition - Schedule of Revenue Disaggregated by Source and Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 19,704	$ 9,019	$ 53,420	$ 27,860
Brazil
Disaggregation of Revenue [Line Items]
Total revenues	1,925	1,352	5,129	3,638
Mexico
Disaggregation of Revenue [Line Items]
Total revenues	3,501	2,729	7,198	2,778
United States
Disaggregation of Revenue [Line Items]
Total revenues	14,278	4,938	41,093	21,444
LNG Product
Disaggregation of Revenue [Line Items]
Total revenues	14,420	6,594	37,927	18,609
Rental
Disaggregation of Revenue [Line Items]
Total revenues	2,712	737	8,039	4,012
Service
Disaggregation of Revenue [Line Items]
Total revenues	334	187	957	593
Power Delivery
Disaggregation of Revenue [Line Items]
Total revenues	1,925	1,352	5,129	3,638
Other
Disaggregation of Revenue [Line Items]
Total revenues	$ 313	$ 149	$ 1,368	$ 1,008

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Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Contract with Customer, Asset and Liability, Rollforward [Roll Forward]
Balance at beginning of period	$ 357	$ 185
Cash received, excluding amounts recognized as revenue	283	777
Amounts recognized as revenue	(352)	(605)
Balance at end of period	$ 288	$ 357

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Business Segments (Details) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment							2
Revenues	$ 19,704			$ 9,019			$ 53,420	$ 27,860
Depreciation	2,324			2,266			6,767	6,802
Loss from operations before equity income	(4,598)			(2,433)			(6,691)	(7,027)
Net equity income from foreign joint ventures' operations	246			573			1,075	1,347
Income (loss) from operations	(4,352)			(1,860)			(5,616)	(5,680)
Interest expense, net	130			2			224	28
Interest expense, net - related parties	120			199			441	681
Income tax expense	93			41			356	251
Net income (loss)	(4,625)	$ (1,004)	$ 175	(2,133)	$ (3,463)	$ (1,050)	(5,454)	(6,646)
Total assets	87,669						87,669		$ 80,313
LNG
Segment Reporting Information [Line Items]
Revenues	17,779			7,667			48,291	24,222
Depreciation	2,284			2,237			6,653	6,706
Loss from operations before equity income	(4,441)			(2,179)			(6,013)	(5,898)
Net equity income from foreign joint ventures' operations	0			0			0	0
Income (loss) from operations	(4,441)			(2,179)			(6,013)	(5,898)
Interest expense, net	118			11			188	16
Interest expense, net - related parties	120			199			441	681
Income tax expense	93			41			356	41
Net income (loss)	(4,735)			(2,458)			(5,967)	(6,678)
Total assets	71,450						71,450		64,757
Power Delivery
Segment Reporting Information [Line Items]
Revenues	1,925			1,352			5,129	3,638
Depreciation	40			29			114	96
Loss from operations before equity income	(157)			(254)			(678)	(1,129)
Net equity income from foreign joint ventures' operations	246			573			1,075	1,347
Income (loss) from operations	89			319			397	218
Interest expense, net	12			(9)			36	12
Interest expense, net - related parties	0			0			0	0
Income tax expense	0			0			0	210
Net income (loss)	110			$ 325			513	$ 32
Total assets	$ 16,219						$ 16,219		$ 15,556
Bomay
Segment Reporting Information [Line Items]
Ownership percentage	40.00%						40.00%

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Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Prepaid expenses and other current assets
Prepaid LNG	$ 51	$ 90
Prepaid insurance	1,385	734
Prepaid supplier expenses	326	299
Other receivables	1,923	1,521
Deposits	360	285
Other	253	182
Total prepaid expenses and other current assets	$ 4,298	$ 3,111

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Property, Plant and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Cost	$ 100,758	$ 90,422
Less accumulated depreciation	(44,900)	(38,384)
Property, plant and equipment, net	55,858	52,038
Liquefaction plants and systems
Property, Plant and Equipment [Line Items]
Cost	47,225	40,841
Real property and buildings
Property, Plant and Equipment [Line Items]
Cost	2,373	1,649
Vehicles and tanker trailers and equipment
Property, Plant and Equipment [Line Items]
Cost	49,556	47,179
Computer and office equipment
Property, Plant and Equipment [Line Items]
Cost	609	532
Construction in progress
Property, Plant and Equipment [Line Items]
Cost	964	191
Leasehold improvements
Property, Plant and Equipment [Line Items]
Cost	$ 31	$ 30

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Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
	Jun. 01, 2021	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Depreciation		$ 2,324		$ 2,266	$ 6,767	$ 6,802
Purchase price	$ 5,000
Number of shares of the combined company (in shares)	500,000				500,000
Value of Common Stock (in US Dollars)	$ 3,800		$ 3,795		$ 3,800

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Investments in Foreign Joint Ventures - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Schedule of Equity Method Investments [Line Items]
Revenues	$ 19,704,000	$ 9,019,000	$ 53,420,000	$ 27,860,000
Affiliated Entity
Schedule of Equity Method Investments [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0
Bomay
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	40.00%		40.00%
Bomay | Baoji Oilfield Machinery Co., Ltd.
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	51.00%		51.00%
Bomay | AA Energies, Inc.
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	9.00%		9.00%

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Investments in Foreign Joint Ventures - Schedule of Financial Information of Foreign Joint Venture (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Assets
Total current assets	$ 14,988						$ 14,988		$ 10,813
Total assets	87,669						87,669		80,313
Liabilities and Stockholders’ Equity
Total liabilities	24,947						24,947		18,283
Total joint ventures’ equity	62,722						62,722		62,030
Total liabilities and stockholders’ equity	87,669						87,669		80,313
Earnings	(4,625)	$ (1,004)	$ 175	$ (2,133)	$ (3,463)	$ (1,050)	(5,454)	$ (6,646)
Bomay | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Assets
Total current assets	60,707						60,707		51,811
Total non-current assets	6,690						6,690		7,136
Total assets	67,397						67,397		58,947
Liabilities and Stockholders’ Equity
Total liabilities	34,779						34,779		26,355
Total joint ventures’ equity	32,618						32,618		32,592
Total liabilities and stockholders’ equity	67,397						67,397		$ 58,947
Revenue	10,040			17,641			43,261	44,844
Gross Profit	3,420			3,224			8,111	7,456
Earnings	$ 688			$ 1,663			$ 2,923	$ 3,662

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Investments in Foreign Joint Ventures - Schedule of Activity in Investment in Foreign Joint Ventures (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Undistributed earnings:
Dividend distributions	$ (1,387)	$ (2,054)
Foreign currency translation:
Total investment in BOMAY at end of period	11,923		$ 11,897
Accretion of investment	97
Accumulated accretion	280		183
Bomay
Investment in BOMAY
Initial investment	9,333	9,333	9,333
Undistributed earnings:
Balance at the beginning of the period	1,908	1,257	1,257
Equity in earnings	1,267		2,705
Dividend distributions	(1,387)		(2,054)
Balance at end of period	1,788		1,908
Foreign currency translation:
Balance at the beginning of the period	656	$ (69)	(69)
Change during the period	146		725
Balance at end of period	802		656
Total investment in BOMAY at end of period	11,923		11,897
Accumulated statutory reserves in equity method investments	$ 2,660		$ 2,660
Ownership percentage	40.00%
Basis difference	$ 1,200
Remaining life of joint venture	7 years

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Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accrued liabilities
Compensation and benefits	$ 3,134	$ 1,745
Professional fees	623	408
LNG fuel and transportation	2,507	1,151
Accrued interest	0	21
Contract liabilities	288	357
Other taxes payable	582	328
Other accrued liabilities	298	351
Total accrued liabilities	$ 7,432	$ 4,361

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Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Unsecured promissory note	$ 0	$ 1,080
Secured term note, net of debt issuance costs	6,598	0
Secured term note payable - related party	0	1,077
Secured promissory note - related party	3,498	5,000
Insurance and other notes payable	1,554	714
Less: amounts due within one year	(3,959)	(4,463)
Total long-term debt	$ 7,691	$ 3,408

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Debt - Narrative (Details) - USD ($)			1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 20, 2021	Apr. 08, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Sep. 30, 2014
Debt Instrument [Line Items]
Gain on extinguishment of debt			$ 1,100,000		$ 1,086,000	$ 0
Affiliated Entity | Chart E&C
Debt Instrument [Line Items]
Percentage of common stock owned				8.30%	8.30%
Senior Secured Term Note Member
Debt Instrument [Line Items]
Repayments of Debt				$ 1,100,000
Senior Secured Term Note Member | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Effective interest rate							3.15%	3.00%
Secured promissory note - related party
Debt Instrument [Line Items]
Deferral period	1 year
AmeriState Bank | Loan Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 10,000,000
Proceeds from loan		$ 7,000,000
Interest rate		5.75%
AmeriState Bank | Loan Agreement | Prime Rate
Debt Instrument [Line Items]
Debt instrument, interest rate basis		2.50%
Promissory Note | Cadence Bank, N.A. | Loan Pursuant to CARES Act
Debt Instrument [Line Items]
Debt instrument, face amount							$ 1,100,000

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Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Interest expense	$ 648	$ 309
Unsecured promissory note
Debt Instrument [Line Items]
Interest expense	0	4
Secured term note
Debt Instrument [Line Items]
Interest expense	176	0
Secured term note payable - related party
Debt Instrument [Line Items]
Interest expense	22	57
Secured promissory note - related party
Debt Instrument [Line Items]
Interest expense	409	224
Insurance and other notes payable
Debt Instrument [Line Items]
Interest expense	$ 41	$ 24

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Leases - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets and Liabilities, Lessee
Operating lease assets	$ 128	$ 786
Finance lease assets	$ 90	$ 6,781
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Total lease assets	$ 218	$ 7,567
Operating lease liabilities current	206	362
Finance lease liabilities current	16	0
Current portion of finance lease obligation - related parties	0	648
Operating lease liabilities non-current	314	490
Finance lease liabilities non-current	68	0
Present value of lease liabilities	$ 604	$ 1,500

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Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Lessee, Lease, Description [Line Items]
Amortization of leased assets	$ 5	$ 294	$ 14	$ 879
Interest on lease liabilities	2	104	17	400
Net lease cost	121	444	345	1,586
Cost of sales
Lessee, Lease, Description [Line Items]
Operating lease cost	39	42	116	122
Selling, general and administrative expenses
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 75	$ 4	$ 198	$ 185

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Leases - Additional Information (Details) $ in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 30, 2021 USD ($)	Jan. 25, 2021 USD ($) agreement	Dec. 31, 2019 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Leases [Abstract]
Termination settlement payable	$ 400
Termination settlement payable, periods	43 months
Impairment of right-of-use lease asset	$ 400			$ 376	$ 0	$ 376	$ 0
Present value of lease liabilities	$ 400			520		520
Number of finance lease agreements | agreement		3
Finance lease, principal and interest payments		$ 2				668	$ 2,640
Lessee term		36 months
Annual rate		10.70%
Purchase of machinery and equipment			$ 3,200
Lease liability due		$ 648		$ 97		$ 97

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Leases - Schedule of Future Minimum Lease Payments for Operating and Finance Obligation (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jul. 30, 2021	Jan. 25, 2021	Dec. 31, 2020
Operating Leases
Remainder 2021	$ 85
2022	181
2023	147
2024	131
2025	21
Thereafter	0
Total lease payments	565
Less: Interest	(45)
Present value of lease liabilities	520	$ 400
Finance Leases
Remainder 2021	6
2022	25
2023	25
2024	41
2025	0
Thereafter	0
Total lease payments	97		$ 648
Less: Interest	(13)
Present value of lease liabilities	84
Total
Remainder 2021	91
2022	206
2023	172
2024	172
2025	21
Thereafter	0
Total lease payments	662
Less: Interest	(58)
Present value of lease liabilities	$ 604			$ 1,500

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Leases - Schedule of Lease Costs and Terms for Operating and Finance Lease Obligations (Details)	Sep. 30, 2021
Leases [Abstract]
Operating leases, weighted-average remaining lease term (years)	2 years 8 months 12 days
Finance leases, weighted-average remaining lease term (years)	2 years 3 months 18 days
Operating leases, weighted-average discount rate	7.20%
Finance leases, weighted-average discount rate	10.70%

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Leases - Schedule of Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 25, 2021	Sep. 30, 2021	Sep. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$ 250	$ 287
Financing cash flows from finance leases	$ 2	668	2,640
Interest paid		35	400
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases		$ 0	$ 1,163

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Related Party Transactions - Other Purchases and Sales (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Due from related parties	$ 0		$ 0		$ 42,000
Secured term note payable - related party	$ 0		$ 0		1,077,000
Applied Cryo Technologies
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	51.00%	51.00%	51.00%	51.00%
Payment for equipment repairs and services	$ 32,000	$ 36,000	$ 530,000	$ 109,000
Affiliated Entity
Related Party Transaction [Line Items]
Purchases from related parties	59,000	2,000	137,000	22,000
Secured term note payable - related party	$ 58,000		$ 58,000		14,000
Affiliated Entity | Crenshaw Family Holdings | Board of Directors Chairman
Related Party Transaction [Line Items]
Percentage of beneficial ownership			25.00%
Affiliated Entity | Chart E&C
Related Party Transaction [Line Items]
Percentage of common stock owned	8.30%		8.30%
Affiliated Entity | Applied Cryo Technologies
Related Party Transaction [Line Items]
Related party sales	$ 30,000	0	$ 30,000	0
Due from related parties	30,000		30,000		2,000
Due to related parties	$ 15,000		$ 15,000		121,000
Affiliated Entity | TMG
Related Party Transaction [Line Items]
Equity method investment, ownership percentage	25.00%		25.00%
Related party sales	$ 13,000	0	$ 13,000	0
Due from related parties	11,000		11,000		0
Due to related parties	548,000		548,000		$ 582,000
Purchase of supplies and services	$ 127,000	$ 18,000	$ 848,000	$ 213,000

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Commitments and Contingencies (Details) $ in Millions	1 Months Ended
	Oct. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Potential liability related to asset purchase agreement	$ 4.3

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Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	9 Months Ended
	Jun. 01, 2021	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Common stock, shares authorized (in shares)			37,500,000	37,500,000
Common stock, par value (in usd per share)			$ 0.001	$ 0.001
Number of shares of the combined company (in shares)	500,000		500,000
Shares issued in asset acquisition	$ 3,800	$ 3,795	$ 3,800
RSUs | 2019 Long Term Incentive Plan
Class of Stock [Line Items]
Outstanding vested (in shares)			294,642

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Stockholders' Equity - Issuances of Warrants (Details)	Sep. 30, 2021 $ / shares shares
Class of Stock [Line Items]
No. of Warrants (in shares)	62,500
Warrant, November 13, 2022 Expiration
Class of Stock [Line Items]
No. of Warrants (in shares)	62,500
Exercise Price (in usd per share) | $ / shares	$ 18.08

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Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands			1 Months Ended			3 Months Ended		9 Months Ended
	Aug. 23, 2021 USD ($) tranche $ / shares shares	Aug. 22, 2021 USD ($) shares	Jul. 31, 2021 shares	Apr. 30, 2020 shares	Feb. 29, 2020 shares	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) shares	Sep. 30, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					1 year
Compensation costs | $								$ 2,700
Retainer fee, percentage					50.00%
Participant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant limit (in shares)			2,000,000
Non-Employee Board Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant limit (in shares)			100,000
Former Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs | $		$ 500
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options grant in period (in shares)	1,300,000
Strike price (in dollars per share) | $ / shares	$ 10.00
Compensation costs | $	$ 1,700
Share-based Payment Arrangement, Tranche One | Chief Executive Officer | August 23, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares to be vested (in shares)	442,000
2019 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for issuance (in shares)			1,675,000
Amended and Restated 2019 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for issuance (in shares)			4,000,000
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	500,000
Compensation costs | $						$ 2,400	$ 148		$ 249
Unrecognized compensation costs | $						1,700		$ 1,700
Outstanding RSUs (in shares)								430,688
Unrecognized compensation costs, weighted average period								2 years
RSUs | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)	500,000
Outstanding vested (in shares)	250,000
Vesting period	2 years
Number of tranches | tranche	2
RSUs | Share-based Payment Arrangement, Tranche One | August 23, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding vested (in shares)		250,000
RSUs | Share-based Payment Arrangement, Tranche Two | August 23, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding vested (in shares)		250,000
Shares to be vested (in shares)	429,000
RSUs | Share-based Payment Arrangement, Tranche Three | August 23, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares to be vested (in shares)	429,000
RSUs | 2019 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding vested (in shares)								294,642
RSUs | 2019 Long Term Incentive Plan | Former Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding vested (in shares)		500,000
Separation of service, period		6 months
RSA
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs | $							$ 38	$ 17	$ 95
Unrecognized compensation costs | $						$ 0		$ 0
Number of shares vesting (in Shares)					34,706			34,706
RSA | 2019 Long Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (in shares)				61,308

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Concentration of Credit Risk (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Accounts Receivable | Customer Concentration Risk | Two Customer
Concentration Risk [Line Items]
Concentration risk, percentage			42.00%		47.00%
Revenue Benchmark | Customer Concentration Risk | Two Customer
Concentration Risk [Line Items]
Concentration risk, percentage			38.00%	12.00%
Revenue Benchmark | Customer Concentration Risk | Three Customer
Concentration Risk [Line Items]
Concentration risk, percentage	39.00%
Revenue Benchmark | Customer Concentration Risk | One Customer
Concentration Risk [Line Items]
Concentration risk, percentage		26.00%
Revenue Benchmark | Supplier Concentration Risk | One Vendor
Concentration Risk [Line Items]
Concentration risk, percentage	17.00%	23.00%
Accounts Payable | Supplier Concentration Risk | One Vendor
Concentration Risk [Line Items]
Concentration risk, percentage					15.00%
Accounts Payable | Supplier Concentration Risk | Two Vendors
Concentration Risk [Line Items]
Concentration risk, percentage			33.00%
Cost of Goods and Service Benchmark | Supplier Concentration Risk | One Vendor
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%
Cost of Goods and Service Benchmark | Supplier Concentration Risk | Two Vendors
Concentration Risk [Line Items]
Concentration risk, percentage				23.00%