| Change in Accounting Principle |
Change in Accounting Principle Effective April 1, 2026, the Company changed its method of accounting for costs incurred in connection with planned major maintenance activities, or “turnarounds”, on its Red River Plant from the direct-expense method to the deferral method. The Company retrospectively applied this change in accounting principle to all prior periods resulting in a cumulative effect adjustment at January 1, 2025 to increase Other long-term assets, net and Retained earnings by $1.3 million. The impact of this change on certain financial statement line items in the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and the Condensed Consolidated Balance Sheets as of June 30, 2026, were as follows: | | | | | | | | | | | | | | | | | | | | | (in thousands, except per share data) | | As Computed (using Direct-Expense Method) | | Effect of Change | | As Reported (using Deferral Method) | | Condensed Consolidated Statements of Operations, three months ended June 30, 2026 | | | | | | | | Cost of revenue, exclusive of depreciation and amortization | | $ | 20,140 | | | $ | (1,768) | | | $ | 18,372 | | | Depreciation, amortization, depletion and accretion | | 3,228 | | | 314 | | | 3,542 | | | | | | | | | | Net loss | | (2,187) | | | 1,454 | | | (733) | | | Loss per common share - basic | | (0.05) | | | 0.03 | | | (0.02) | | | Loss per common share - diluted | | (0.05) | | | 0.03 | | | (0.02) | | | | | | | | | | Condensed Consolidated Statements of Operations, six months ended June 30, 2026 | | | | | | | | Cost of revenue, exclusive of depreciation and amortization | | $ | 39,254 | | | $ | (1,768) | | | $ | 37,486 | | | Depreciation, amortization, depletion and accretion | | 5,798 | | | 609 | | | 6,407 | | | | | | | | | | Net loss | | (3,029) | | | 1,159 | | | (1,870) | | | Loss per common share - basic | | (0.07) | | | 0.03 | | | (0.04) | | | Loss per common share - diluted | | (0.07) | | | 0.03 | | | (0.04) | | | | | | | | | | Condensed Consolidated Balance Sheets, as of June 30, 2026 | | | | | | | | Inventories, net | | $ | 20,223 | | | $ | (816) | | | $ | 19,407 | | | Other long-term assets, net | | 33,131 | | | 2,369 | | | 35,500 | | | Retained earnings | | 10,795 | | | 1,553 | | | 12,348 | |
Certain financial statement line items in our Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and the Condensed Consolidated Balance Sheets as of December 31, 2025 were adjusted as follows: | | | | | | | | | | | | | | | | | | | | | (in thousands, except per share data) | | As Previously Reported | | Effect of Change | | As Adjusted | | Condensed Consolidated Statements of Operations, three months ended June 30, 2025 | | | | | | | | | | | | | | | Depreciation, amortization, depletion and accretion | | $ | 2,485 | | | $ | 236 | | | $ | 2,721 | | | | | | | | | | Net loss | | (2,133) | | | (236) | | | (2,369) | | | Loss per common share - basic | | (0.05) | | | (0.01) | | | (0.06) | | | Loss per common share - diluted | | (0.05) | | | (0.01) | | | (0.06) | | | | | | | | | | Condensed Consolidated Statements of Operations, six months ended June 30, 2025 | | | | | | | | | | | | | | | Depreciation, amortization, depletion and accretion | | $ | 4,666 | | | $ | 472 | | | $ | 5,138 | | | | | | | | | | Net loss | | (1,930) | | | (472) | | | (2,402) | | | Loss per common share - basic | | (0.05) | | | (0.01) | | | (0.06) | | | Loss per common share - diluted | | (0.05) | | | (0.01) | | | (0.06) | | | | | | | | | | Condensed Consolidated Balance Sheets, as of December 31, 2025 | | | | | | | | Other long-term assets, net | | $ | 35,107 | | | $ | 394 | | | $ | 35,501 | | | Retained earnings | | 13,824 | | | 394 | | | 14,218 | |
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