DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

During the third quarter of 2021, the Company initiated and began executing a strategic plan to sell its used motors oils business (“UMO Business”). An investment banking advisory services firm was engaged and the Company actively marketed this segment.

On February 1, 2023, the Company sold all of its equity interests in Vertex OH, which owned our Heartland refinery located in Columbus, Ohio (the “Heartland Refinery”) for an $87.2 million net cash settlement. The sale also included all property and assets owned by Vertex OH, including inventory associated with the Heartland Refinery, and all real and leased property and permits owned by Vertex OH, and all used motor oil collection and recycling assets and operations owned by Vertex OH (collectively, the “Heartland Operations”).

For the three and six months ended June 30, 2023, the Company presented the Heartland Operations as discontinued operations.

The following summarized financial information has been segregated from continuing operations and reported as Discontinued Operations for the three and six months ended June 30, 2023 (in thousands):

	Period Ended June 30, 2023
	Three Months		Six Months
Revenues	$	—	$	7,366
Cost of revenues (exclusive of depreciation shown separately below)	—		4,589
Depreciation and amortization attributable to costs of revenues	—		124
Gross profit	—		2,653
Operating expenses:
Selling, general and administrative expenses (exclusive of depreciation shown separately below)	—		632
Depreciation and amortization expense attributable to operating expenses	—		21
Total operating expenses	—		653
Income before income tax	—		2,000
Income tax expense	—		(528)
Gain on sale of discontinued operations, net of $1,453 and $18,671 of tax for three and six months ended June 30, 2023	3,340		$	52,208
Income from discontinued operations, net of tax	$	3,340	$	53,680