−Removed: As of December 31, 2020, the Company operates four manufacturing, warehouse and research facilities in the U.S.
+Added: As of December 31, 2021, the Company operates two manufacturing, warehouse and research facilities in the U.S.
Internationally, the Company has a warehouse and research facility in Calgary, Alberta, Canada and a warehouse in Dubai, United Arab Emirates.
−Removed: The Company also has sales offices in Oklahoma City, Oklahoma;
−Removed: Dubai, United Arab Emirates;
−Removed: and Calgary, Alberta, Canada.
+Added: The Company also has sales offices in Dubai, United Arab Emirates and Calgary, Alberta, Canada.
The Company owns four of these facilities and the remainder are leased with lease terms that expire from 2022 through 2030.
3 unchanged sentences
Chemistry Technologies Owned Marlow, Oklahoma
−Removed: Owned Monahans, Texas
−Removed: Owned Raceland, Louisiana
−Removed: Owned Waller, Texas
−Removed: Leased Dubai, United Arab Emirates
−Removed: Leased Calgary, Alberta
−Removed: Leased Oklahoma City, Oklahoma
−Removed: Leased Raceland, Louisiana
−Removed: Leased Houston, Texas
+Added: Chemistry Technologies Owned Monahans, Texas
+Added: Chemistry Technologies Owned Raceland, Louisiana
+Added: Chemistry Technologies Owned Waller, Texas
+Added: Chemistry Technologies Leased Dubai, United Arab Emirates
+Added: Chemistry Technologies Leased Calgary, Alberta
+Added: Chemistry Technologies Leased Raceland, Louisiana
+Added: Chemistry Technologies Leased Houston, Texas
Data Analytics Leased Austin, Texas
−Removed: Legal Proceedings.
−Removed: See Note 16, “Commitments and Contingencies” in Part II, Item 8 – “Financial Statements and Supplementary Data” of this Annual Report for information regarding our legal proceedings.
+Added: In the third quarter of 2021, the Company committed to plans to sell its warehouse facility in Monahans, Texas and its manufacturing facility in Waller, Texas, and subsequent to December 31, 2021, the Company entered into a contract to sell the Waller manufacturing facility for proceeds of $4.2 million, which is expected to close in April 2022.
+Added: Legal Proceeding
+Added: On March 26, 2021, the Company and Flotek Chemistry, LLC (“Flotek Chemistry”), a wholly-owned subsidiary of the
+Added: Company, filed a lawsuit against Archer-Daniels-Midland Company (“ADM”), Florida Chemical Company, LLC (“FCC”) and other parties in state court in Harris County, Texas.
+Added: The lawsuit claims damages relating to the terpene supply agreement between Flotek Chemistry and FCC and related breaches of fiduciary duty.
+Added: Contemporaneously with the filing of the suit, Flotek Chemistry delivered a notice of termination of the terpene supply agreement.
+Added: Subsequent to the lawsuit described above, on April 5, 2021, ADM and FCC filed a lawsuit in the Delaware Court of Chancery seeking to enjoin the lawsuit filed in Texas and claiming damages under the terpene supply agreement and other matters.
+Added: On October 29, 2021, the Company and Flotek Chemistry reached agreement with all parties resolving all claims between the parties.
+Added: On or before January 3, 2022, Flotek will pay to ADM a one-time payment of $1.75 million and the terpene supply agreement is confirmed terminated, eliminating the prior obligation to purchase 10.5 million pounds of terpene through 2023.
+Added: In 2021, Flotek commenced an internal investigation into the activities of John Chisholm (Flotek’s previous CEO) due to irregularities in expenses and transactions during the years from 2014 to 2018.
+Added: The investigation revealed evidence of related party transactions/self-dealing, inappropriate personal expenses, and general corporate waste.
+Added: Flotek’s board engaged a third party to review the findings of the investigation.
+Added: After the third-party review, Flotek concluded that its current and historical financial statements can be relied upon, that proper action had been taken, and that no members of current management were implicated in any way.
+Added: Beginning in December 2021, Flotek sent demand letters to, and subsequently filed arbitration or other legal proceedings against, John Chisholm, Casey Doherty/Doherty & Doherty LLP (Flotek’s former outside general counsel) and Moss Adams LLP (Flotek’s former independent public audit firm) to recover damages.
+Added: John Chisholm subsequently filed a counterclaim against Flotek in the arbitration proceeding for his remaining severance (currently accrued by the Company, but payment for which was suspended).
+Added: Although Flotek believes its claims are supported by the available evidence, the timing and amount of any outcome cannot reasonably be predicted.
+Added: The Company is subject to other routine litigation and other claims that arise in the normal course of business.
+Added: Except as disclosed above, management is not aware of any pending or threatened lawsuits or proceedings that are expected to have a material effect on the Company’s financial position, results of operations or liquidity.
Mine Safety Disclosures
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.