0001084991-24-000017 | 10-K | XBRL Viewer | Natural GAS Services Group INC

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Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Preferred Stock We have a total of 5.0 million authorized preferred shares which may be issued in series with rights and preferences as designated by the Board of Directors. As of December 31, 2023 and 2022, there were no issued or outstanding preferred shares.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued purchases	$ 8,629	$ 17,763
Accrued compensation	2,137	4,472
Accrued other	4,319	1,683
Total	$ 15,085	$ 23,918

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The provision for income taxes for the years ended December 31, 2023 and 2022, consists of the following (in thousands):


	2023		2022
Current expense

State expense	$	(35)	$	(17)
Total current expense	(35)		(17)
Deferred (expense) benefit:
Federal expense	(1,940)		(857)
State benefit	102		346
Total deferred expense	(1,838)		(511)
Total expense	$	(1,873)	$	(528)

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate for the years ended December 31, 2023 and 2022, differs from the statutory rate as follows:


	2023		2022
Statutory rate	21.0	%	21.0	%
State and local taxes	(1.3)	%	812.2	%



Stock based compensation	0.7	%	(58.5)	%
Nondeductible compensation	8.2	%	(1,846.3)	%

Other	(0.3)	%	(217.1)	%
Effective rate	28.3	%	(1,288.7)	%

Schedule of Deferred Tax Assets and Liabilities

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of December 31, 2023 and 2022, are as follows (in thousands):


	2023		2022
Deferred income tax assets:
Net operating loss	$	22,190	$	6,391
Research and development credits	1,313		1,338
Stock compensation	153		121
Interest expense	991		—
Inventory reserves	893		—
Deferred compensation	792		617
Other	285		354
Total deferred income tax assets	26,617		8,821
Deferred income tax liabilities:
Property and equipment	(68,110)		(48,427)
Goodwill and other intangible assets	(143)		(192)
Total deferred income tax liabilities	(68,253)		(48,619)
Net deferred income tax liabilities	$	(41,636)	$	(39,798)

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Auditor Information [Abstract]
Auditor Name	Ham, Langston & Brezina, LLP
Auditor Location	Houston, Texas
Auditor Firm ID	298

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2021		0
Beginning balance at Dec. 31, 2021	$ 235,910	$ 0	$ 134	$ 114,017	$ 130,103	$ (8,344)
Beginning balance (in shares) at Dec. 31, 2021			13,394,000
Beginning balance (in shares) at Dec. 31, 2021						775,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense on common stock options	255			255
Issuance of restricted stock (in shares)			125,000
Compensation expense on restricted common stock	1,655		$ 1	1,654
Taxes paid related to net shares settlement of equity awards	(515)			(515)
Purchase of treasury shares (in shares)						535,000
Purchase of treasury shares	(6,660)					$ (6,660)
Net income (loss)	$ (569)				(569)
Ending balance (in shares) at Dec. 31, 2022	0	0
Ending balance at Dec. 31, 2022	$ 230,076	$ 0	$ 135	115,411	129,534	$ (15,004)
Ending balance (in shares) at Dec. 31, 2022	13,519,000		13,519,000
Ending balance (in shares) at Dec. 31, 2022	1,310,000					1,310,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation expense on common stock options	$ 97			97
Issuance of restricted stock (in shares)			169,000
Compensation expense on restricted common stock	1,957		$ 2	1,955
Taxes paid related to net shares settlement of equity awards	(983)			(983)
Net income (loss)	$ 4,747				4,747
Ending balance (in shares) at Dec. 31, 2023	0	0
Ending balance at Dec. 31, 2023	$ 235,894	$ 0	$ 137	$ 116,480	$ 134,281	$ (15,004)
Ending balance (in shares) at Dec. 31, 2023	13,688,000		13,688,000
Ending balance (in shares) at Dec. 31, 2023	1,310,000					1,310,000

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Finance lease, remaining lease term	3 years
Operating lease cost	$ 485	$ 384
Operating lease, cost	$ 200	$ 200
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	8 years

Stock-Based and Other Long-Term Incentive Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based and Other Long-Term Incentive Compensation

Restricted Stock

On June 20, 2019, at our annual meeting of shareholders, our shareholders approved the 2019 Equity Incentive Plan for restricted shares/units, stock options and other equity awards which reserved for issuance up to 500,000 shares of common stock in connection with awards. On June 16, 2022, at our annual meeting of shareholders, our shareholders approved an amendment to the Equity Incentive Plan to increase the number of shares available for issuance under the plan by 650,000 shares of common stock. As of December 31, 2023, we had outstanding awards of 133,898 shares under the Equity Incentive Plan that may vest over the next three years. As of December 31, 2023, 405,833 shares were still available for issuance under the Equity Incentive Plan.

On April 26, 2022, 4,212 shares of restricted common stock were awarded to each of our four independent Board members. The restricted stock issued to our directors vests in one year from the date of grant. On August 15, 2022, the Compensation Committee awarded 32,040 shares of restricted common stock to two executive officers that vest ratably over three years, beginning on April 25, 2023. In addition, on August 15, 2022, the Compensation Committee awarded 60,839 shares of restricted common stock to Mr. Stephen Taylor, our Interim Chief Executive Officer. The restricted shares granted to Mr. Taylor vested in full on June 30, 2023. On April 25, 2023, the Compensation Committee awarded 27,840 shares of restricted stock to our Chief Technical Officer that vest ratably over three years, beginning on April 25, 2024. Pursuant to the Retirement Agreement dated May 17, 2022, between the Company and Mr. Taylor, our Interim Chief Executive Officer, on April 25, 2023, the Compensation Committee awarded 58,790 fully vested shares of common stock to Mr. Taylor. On May 9, 2023, the Compensation Committee awarded each of our four independent Board members 9,470 restricted stock units. These restricted stock units vest one year from the date of grant. On June 30, 2023, Stephen C. Taylor was granted restricted stock units for 10,101 and 10,101 shares of common stock that will vest immediately and one year from the date of grant, respectively. On October 8, 2023, the Compensation Committee awarded 6,361 restricted stock units to Brian Tucker, our Chief Operating Officer. These units will vest ratably over three years beginning on October 9, 2024. On October 26, 2023, the compensation committee awarded 4,623 restricted stock units to an independent director. These units vest one year from the date of the grant.

Compensation expense related to the restricted shares was approximately $2.0 million and $1.7 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, there was a total of approximately $0.7 million of unrecognized compensation expense related to the unvested portion of these restricted shares/units. This expense is expected to be recognized over the next three years.

A summary of all restricted stock/unit activity as of December 31, 2022 and 2023 and changes during the years then ended are presented below.


	Number of Shares	Grant Date Fair Value		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	276,319	$	9.67	1.77	$	2,893
Granted	126,662	$	10.21	—	$	1,294
Vested	(152,134)	$	10.99	—	$	1,778

Outstanding, December 31, 2022	250,847	$	9.14	1.42	$	2,681
Granted	164,640	$	10.65	—	$	1,754
Vested	(267,232)	$	9.22	—	$	2,683
Canceled/Forfeited	(14,357)	$	10.04	—	$	158
Outstanding, December 31, 2023	133,898	$	10.66	1.57	$	1,813

Other Long-Term Incentive Compensation

On April 28, 2020, the Compensation Committee issued a long-term incentive award of $1.1 million to an executive officer that vests in equal, annual tranches over three years. At the time of vesting, each tranche was paid in cash. On March 18, 2021, the Compensation Committee issued a long-term incentive award of $1.0 million to an executive officer that vests in equal, annual tranches over three years. On March 18, 2021, we issued a $50,000 award to each of our three independent Board members. On April 1, 2021, we issued a $50,000 award to a newly appointed independent Board member. These awards vest one year from the date of grant and were paid in cash upon vesting. On April 26, 2022, we issued a $50,000 award to each of our four independent Board members. These awards vest one year from the date of grant and were paid in cash upon vesting. The Company accounts for these other long-term incentive awards as liabilities under accrued liabilities on our consolidated balance sheet. The vesting of these awards is subject to acceleration upon certain events, such as (i) death or disability of the recipient, (ii) certain circumstances in connection with a change of control of the Company, (iii) for executive officers, termination without cause (as defined in the agreement), and (iv) for executive officers, resignation for good reason (as defined). Total compensation expense related to these other long-term incentive awards was approximately $0.4 million and $1.0 million respectively for the years ended December 31, 2023 and 2022. As of December 31, 2023 and 2022 respectively there was a total of $0.0 million and $0.7 million of unrecognized compensation expense related to these other long-term incentive awards which is expected to be recognized over the next year.

1998 Stock Option Plan

Our 1998 Stock Option Plan as amended, which is stockholder approved, permits the granting of stock options to its employees for up to 1.0 million shares of common stock. We believe that such awards align the interests of our employees with our stockholders. Option awards are generally granted with an exercise price equal to the market price of our stock at the date of grant; those option awards generally vest in equal increments over three years of continuous service and have ten-year contractual terms. Certain option and share awards provide for accelerated vesting if there is a change in control of the Company (as defined in the Stock Option Plan). The last date that grants can be made under the Stock Option Plan is February 28, 2026. As of December 31, 2023, 415,085 shares were still available to be granted under the Stock Option Plan.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life of options granted is based on the vesting period and historical exercise and post-vesting employment termination behavior for similar grants. We use historical data to estimate option exercise and employee termination within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes.


Weighted average Black -Scholes fair value assumption during the year ended December 31, are as follows:	2023		2022
Risk free rate	3.99	%	2.99	%
Expected life	6.5		2.67
Expected volatility	47	%	54.5	%
Expected dividend yield	—	%	—	%

During the year ended December 31, 2023, and 2022, we made 6,000 and 215,000 stock option grants, respectively.

A summary of all option activity as of December 31, 2022 and 2023 and changes during the years then ended are presented below:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding December 31, 2021	200,834	$	21.17	4.83	$	—
Granted	215,000	$	16.07	—	$	—

Canceled/Forfeited	(200,750)	$	(18.09)	—	$	—
Expired	(13,500)	$	13.29	—	$	—
Outstanding, December 31, 2022	201,584	$	19.32	3.90	$	—
Granted	6,000	$	9.80	—	$	1

Canceled/Forfeited	(39,833)	$	16.33	—	$	11
Expired	(38,000)	$	16.28	—	$	—
Outstanding, December 31, 2023	129,751	$	20.59	4.10	$	274
Exercisable, December 31, 2023	105,416	$	22.85	3.08	$	146

The weighted average grant date fair value of options granted during 2023 and 2022 was $5.11 and $4.24 per option respectively. There were no option exercises in either 2023 or 2022.

The following table summarizes information about our stock options outstanding at December 31, 2023:


Range of Exercise Prices	Options Outstanding				Options Exercisable
	Shares	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price

$0.01-$18.00	51,667	8.25	$	10.77	27,332	$	10.76

$22.01-$26.00	28,667	1.28	$	22.90	28,667	$	22.90
$26.01-$30.00	19,750	3.13	$	28.15	19,750	$	28.15
$30.01-$30.41	29,667	0.22	$	30.41	29,667	$	30.41
	129,751	4.10	$	20.59	105,416	$	22.85

The summary of the status of our unvested stock options as of December 31, 2023, and changes during the year then ended is presented below.


Unvested stock options:	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2022	39,000	$	10.95
Granted	6,000	$	9.80
Vested	(14,998)	$	10.90
Canceled/Forfeited	(5,667)	$	10.58
Unvested at December 31, 2023	24,335	$	10.79

We recognized stock compensation expense from stock options of $0.1 million and $0.3 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, there was $0.1 million of unamortized compensation cost related to unvested stock options.

Stock-Based and Other Long-Term Incentive Compensation - Summary of Unvested Stock Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Shares
Unvested, beginning of period (in shares)	39,000
Granted (in shares)	6,000	215,000
Vested (in shares)	(14,998)
Canceled/Forfeited (in shares)	(5,667)
Unvested, end of period (in shares)	24,335	39,000
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share)	$ 10.95
Granted (in dollars per share)	9.80
Vested (in dollars per share)	10.90
Canceled/Forfeited (in dollars per share)	10.58
Unvested, end of period (in dollars per share)	$ 10.79	$ 10.95

Stock-Based and Other Long-Term Incentive Compensation - Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Risk free rate	3.99%	2.99%
Expected life	6 years 6 months	2 years 8 months 1 day
Expected volatility	47.00%	54.50%
Expected dividend yield	0.00%

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, its subsidiary, NGSG Properties, LLC and the rabbi trust associated with the Company’s deferred compensation plan, see Note 10. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation.

Use of Estimates

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires our management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates include fixed asset lives, provision for credit losses and the allowance for inventory obsolescence. Additionally, NGS conducts a yearly review of impairment of long-lived assets. Throughout the review, determining factors are based on estimates that can significantly impact the carrying value of these assets. It is at least reasonably possible these estimates could be revised in the near term and the revisions could be material.

Cash Equivalents and Financial Instruments

For purposes of reporting cash flows, we consider all short-term investments with an original maturity of three months or less to be cash equivalents. At times, cash balances at banks and financial institutions may exceed federally insured amounts.

Accounts Receivable

Our trade receivables consist of customer obligations for the sale of compressors and flare systems due under normal trade terms, and operating leases for the use of our natural gas compressors. The receivables are not collateralized except as provided for under lease agreements. However, we typically require deposits of as much as 50% or use of progress payments for large custom sales contracts. We perform ongoing credit evaluations of our customers and adjust credit limits based on management's assessment of the customer's financial condition and payment history, as well as industry conditions and general economic conditions. We continuously monitor collections and payments from our customers, and maintain a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. The provision for credit losses was $0.8 million and $0.3 million at December 31, 2023 and 2022, respectively. Management believes that the allowance is adequate; however, actual write-offs may exceed the recorded allowance.

A summary of our allowance for credit losses is as follows:


	Year Ended December 31,
	2023		2022
	(in thousands)
Beginning balance	$	338	$	1,129
Accruals	492		—

Write-offs	(7)		(791)
Ending balance	$	823	$	338

Revenue Recognition Policy

Revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties (i.e. sales and property taxes). Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our Consolidated Statements of Operations.

Nature of Goods and Services

The following is a description of principal activities from which the Company generates its revenue:

Rental Revenue. The Company generates revenue from renting compressors and flare systems to our customers. These contracts, which all qualify as operating leases under ASC Topic 842, Leases (ASC 842), may also include a fee for servicing the compressor or flare during the rental contract. Our rental contracts typically range from six to 60 months. Our revenue is recognized over time, with equal monthly payments over the term of the contract. After the terms of the contract have expired, a customer may renew their contract or continue renting on a monthly basis thereafter. In accordance with ASC 842 – Leases, we have applied the practical expedient ASC 842-10-15-42A, which allows the Company to combine lease and non-lease components.

Sales Revenue. The Company generates revenue by the sale of custom/fabricated compressors, flare systems and parts, as well as exchange/rebuilding customer owned compressors and sale of used rental equipment. Our sales revenue is recognized in accordance with ASC 606.

Custom/fabricated compressors - The Company designs and fabricates compressors based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor is completed and shipped, or in accordance with a bill and hold arrangements the customer accepts title and assumes the risk and rewards of ownership. We request some of our customers to make progressive payments as the product is being built; these payments are recorded as a contract liability on the Deferred Income line on the consolidated balance sheet until control has been transferred. These contracts also may include an assurance warranty clause to guarantee the product is free from defects in material and workmanship for a set duration of time; this is a standard industry practice and is not considered a performance obligation.

Parts - Revenue is recognized after the customer obtains control of the parts. Control is passed either by the customer taking physical possession or the parts being shipped. The amount of revenue recognized is not adjusted for expected returns, as our historical part returns have been de minimis.

Exchange or rebuild customer owned compressors - Based on the contract, the Company will either exchange a new/rebuilt compressor for the customer’s malfunctioning compressor or rebuild the customer’s compressor. Revenue is recognized after control of the replacement compressor has transferred to the customer based on the terms of the contract, i.e., by physical delivery, delivery and installment, or shipment of the compressor.

Used compressors or flares - From time to time, a customer may request to purchase a used compressor out of our rental fleet. Revenue from the sale of rental equipment is recognized when the control has passed to the customer based on the terms of the contract, i.e. when the customer has taken physical possession or the equipment has been shipped.

Aftermarket Service Revenue. The Company provides routine or call-out services on customer owned equipment. Revenue is recognized after services in the contract are rendered.

Payment terms for sales revenue and aftermarket services revenue discussed above are generally 30 to 60 days although terms for specific customers can vary. Also, the transaction prices are not subject to variable consideration constraints.

Disaggregation of Revenue

The following table shows the Company's revenue disaggregated by product or service type for the years ended:


	Year Ended December 31,
	2023		2022
	(in thousands)
Compressors - sales	$	1,800	$	3,601
Flares - sales	87		239
Other (Parts/Rebuilds) - sales	7,034		4,728
Aftermarket services	6,087		1,792
Total revenue from contracts with customers	15,008		10,360
Add: ASC 842 rental revenue	106,159		74,465
Total revenue	$	121,167	$	84,825

Contract Balances

As of December 31, 2023 and 2022, we had the following receivables and deferred income from contracts with customers:


	December 31,
	2023		2022
	(in thousands)
Accounts Receivable
Accounts receivable - contracts with customers	$	7,138	$	4,353
Accounts receivable - ASC 842	32,871		10,653
Total Accounts Receivable	40,009		15,006
Less: Allowance for doubtful accounts	(823)		(338)
Total Accounts Receivable, net	$	39,186	$	14,668

Deferred income	$	418	$	37

The Company recognized less than $0.1 million in revenue for the year ended December 31, 2023, that was included in accrued liabilities at the beginning of 2023. For the period ended December 31, 2022, the Company recognized revenue of $1.3 million from amounts related to sales that were included in deferred income at the beginning of 2022.

The increases (decreases) in accounts receivable and deferred income were primarily due to normal timing differences between our performance and the customers’ payments.

Transaction Price Allocated to the Remaining Performance Obligations

As of December 31, 2023, the Company had $0.4 million of revenue related to unsatisfied performance obligations.

Contract Costs

The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general and administrative expense on our Consolidated Statements of Operations.

Leases

Accounting Standards Codification ("ASC") 842 requires all leases to be reported on the balance sheet as right-of-use ("ROU") assets and lease obligations. We determine if an arrangement is a lease at inception and determine lease classification and recognize ROU assets and liabilities on the lease commencement date based on the present value of lease payments over the lease term. As the discount rate implicit in the lease is rarely readily determinable, we estimate our incremental borrowing rate using information available at the commencement date in determining the present value of the lease payments. We, as a lessee, apply the practical expedient to not separate non-lease components from lease components, therefore, accounting for each separate lease component and its associated non-lease component, as a single lease component. For each lease that 1) contains the same timing and pattern of transfer for lease and non-lease components and 2) if the lease component, if accounted for separately, would be classified as an operating lease, the Company has elected to not separate non-lease components from lease components.

Major Customers and Concentration of Credit Risk

Sales and rental income from Occidental Permian, LTD. ("Oxy") in 2023 and 2022 amounted to 50% and 42% of revenue, respectively. No other single customer accounted for more than 10% of our revenues in 2023 and 2022. Oxy's accounts receivable balances amounted to 64% and 55% of our accounts receivable as of December 31, 2023 and 2022, respectively. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2023 and 2022.

Inventory

Inventory (current and long-term) is valued at the lower of cost and net realizable value. The cost of inventories is determined by the weighted average method. We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on current and anticipated customer demand and production requirements. The Company assesses anticipated customer demand based on current and upcoming capital expenditure budgets of its major customers as well as other significant companies in the industry, along with oil and natural gas price forecasts and other factors affecting the industry. In addition, our long-term inventory consists of raw materials and replacement parts that remain useable but which the Company does not expect to sell or use within the next year.

Rental Equipment and Property and Equipment

Rental equipment and property and equipment are recorded at cost less accumulated depreciation, except for work-in-progress on new rental equipment which is recorded at cost until it’s complete and added to the fleet. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Our rental equipment has estimated useful lives between 15 and 25 years, while our property and equipment has estimated useful lives which ranges from 3 to 39 years. The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue.

We assess the impairment of rental equipment and property and equipment whenever events or changes in circumstances indicate that the net recorded amount may not be recoverable. The following factors could trigger an impairment review: significant underperformance relative to historical or projected future cash flows; significant adverse changes in the extent or manner in which asset (or asset group) is being used or its condition, including a meaningful drop in fleet utilization over the prior four quarters; significant negative industry or company-specific trends or actions, including meaningful capital expenditure budget reductions by our major customers or other sizable exploration and production or midstream companies, as well as significant declines in oil and natural gas prices; legislative changes prohibiting us from leasing our units or flares; or poor general economic conditions. An impairment loss is recognized if the future undiscounted cash flows associated with the asset (or asset group) and the estimated fair value of the asset are less than the asset's carrying value.

Sales of equipment out of the rental fleet are included with sales revenue and cost of sales, while retirements of units are shown a separate operating expense. Gains and losses resulting from sales and dispositions of other property and equipment are included within selling, general, and administrative expenses. Maintenance and repairs are charged to cost of rentals as incurred.

Intangibles

At December 31, 2023 and 2022, NGS had intangible assets, which relate to developed technology and a trade name. Developed technology is amortized on a straight-line basis with a useful life of 20 years, with a weighted average remaining life of approximately four years as of December 31, 2023. NGS has an intangible asset related to the trade name of SCS which was acquired in our acquisition of Screw Compression Systems in January 2005. This asset is not being amortized as it has been deemed to have an indefinite life.

Our policy is to review intangibles that are being amortized for impairment when indicators of impairment are present. In addition, it is our policy to review indefinite-lived intangible assets for impairment annually or when indicators of impairment are present. We review intangibles through an assessment of the estimated future cash flows related to such assets. In the event that assets are found to be carried at amounts in excess of estimated undiscounted future cash flows, then the assets will be adjusted for impairment to a level commensurate with a discounted cash flow analysis of the underlying assets.

Warranty

When warranted, we accrue amounts for estimated warranty claims based upon current and historical product warranty costs and any other related information known. There was no warranty reserve as of December 31, 2023 and 2022.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and net operating losses and tax credit carry-forwards. 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 the period that includes the statutory enactment date. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In order to record any financial statement benefit, we are required to determine, based on technical merits of the position, whether it is more likely than not (a likelihood of more than 50 percent) that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. If that step is satisfied, then we must measure the tax position to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of the benefit that is greater than 50 percent likely of being realized upon ultimate settlement. We have no uncertain tax positions as of December 31, 2023.

Our policy regarding income tax interest and penalties is to expense those items as other expense.

Capitalized Interest

Effective January 1, 2023, the Company began capitalizing interest from external borrowings on significant expenditures for the fabrication of its natural gas compressor equipment until such projects are ready for their intended use. Capitalized interest is added to the cost of the underlying asset and is amortized over the useful lives of the assets in the same manner as the underlying assets. For the year ended December 31, 2023, the Company capitalized interest totaling approximately $5.5 million.

Fair Value Measurement

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. ASC Topic 820 established a fair value hierarchy, which requires an entity to maximize the use of observable inputs when measuring fair value. These inputs are categorized as follows:

Level 1- quoted prices in an active market for identical assets or liabilities;

Level 2- quoted prices in an active market for similar assets or liabilities, inputs other than quoted prices that are observable for similar assets or liabilities, inputs derived principally from or corroborated by observable market data by correlation or other means; and

Level 3- valuation methodology with unobservable inputs that are significant to the fair value measurement.

Management believes that the fair value of our cash and cash equivalents, trade receivables, and accounts payable at December 31, 2023 and 2022 approximate their carrying values due to the short-term nature of the instruments or the use of prevailing market interest rates. The company considered the borrowings under the credit facility to approximate fair value based upon borrowing rates currently available to us for loans with similar terms (level 2).

Segments and Related Information

ASC 280-10-50, “Operating Segments”, define the characteristics of an operating segment as a) being engaged in business activity from which it may earn revenue and incur expenses, b) being reviewed by the company's chief operating decision maker (CODM) for decisions about resources to be allocated and assess its performance and c) having discrete financial information. Although we look at our products to analyze the nature of our revenue, other financial information, such as certain costs and expenses, net income and EBITDA are not captured or analyzed by these categories. Our CODM does not make resource allocation decisions or assess the performance of the business based on these categories, but rather in the aggregate. Based on this, management believes that it operates in one business segment.

We are engaged in the business of designing and fabricating compressors. Our compressors are sold and rented to our customers. In addition, we provide aftermarket services on compressors in our fleet and to third parties. These business activities are similar in all geographic areas. Historically, our manufacturing process has been essentially the same for the entire Company and has been performed in-house at our facilities in Midland, Texas and Tulsa, Oklahoma. Increasingly, however, we have contracted with third party fabricators to assemble our larger horsepower natural gas compressors. Our customers primarily consist of entities in the business of producing oil and natural gas. The maintenance and service of our products is consistent across the entire Company and is performed via an internal fleet of vehicles. The regulatory environment is similar in every jurisdiction in that the most impacting regulations and practices are the result of federal energy policy.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments to ASC Topic 326 require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including trade receivables. For companies that qualify as smaller reporting companies, the amendments in this update are effective for interim and annual periods beginning after January 1, 2023. As of January 1, 2023 we adopted ASU 2016-13. The standard did not materially affect our consolidated financial statements and note disclosures.

In December 2023, the Financial Standards Accounting Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023- 09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on the financial statement disclosures.

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements or disclosures.

Leases - Future Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 437
2025	419
2026	328
2027	38
2028	38
Thereafter	16
Total lease payments	1,276
Less: Imputed interest	(15)
Total	$ 1,261	$ 349

Income Taxes - Income Tax Reconciliation (Details)	12 Months Ended
Income Taxes - Income Tax Reconciliation (Details)	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Statutory rate	21.00%	21.00%
State and local taxes	(1.30%)	812.20%
Stock based compensation	0.70%	(58.50%)
Nondeductible compensation	8.20%	(1846.30%)
Other	(0.30%)	(217.10%)
Effective rate	28.30%	(1288.70%)

Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)
Revenue from External Customer [Line Items]
Cash equivalents, qualification, maximum original maturity of short-term investments	3 months
Customer deposit requirements, large custom contracts, maximum percentage	50.00%
Allowance for doubtful accounts	$ 823,000	$ 338,000
Revenues	121,167,000	84,825,000
Revenue recognized (less than)	100,000	1,300,000
Deferred income	$ 418,000	37,000
Amortization period of capitalized contract costs	1 year
Product warranty reserves	$ 0	0
Uncertain tax positions		$ 0
Capitalized interest	$ 5,500,000
Number of business segments \| segment	1
Developed Technology
Revenue from External Customer [Line Items]
Useful Life (years)	20 years	20 years
Intangible assets, weighted average remaining life	4 years
Minimum
Revenue from External Customer [Line Items]
Rental contract term	6 months
Property and equipment, estimated useful life	3 years
Minimum \| Rental Equipment
Revenue from External Customer [Line Items]
Property and equipment, estimated useful life	15 years
Maximum
Revenue from External Customer [Line Items]
Rental contract term	60 months
Property and equipment, estimated useful life	39 years
Maximum \| Rental Equipment
Revenue from External Customer [Line Items]
Property and equipment, estimated useful life	25 years
Rental Contracts, Excluding Large Horsepower Compressors \| Minimum
Revenue from External Customer [Line Items]
Rental contract term	6 months
Rental Contracts, Large Horsepower Compressors \| Maximum
Revenue from External Customer [Line Items]
Rental contract term	60 months
Customer Concentration Risk \| Oxy \| Sales and Rental Income
Revenue from External Customer [Line Items]
Concentration risk, percentage	50.00%	42.00%
Customer Concentration Risk \| Customer One \| Accounts Receivable
Revenue from External Customer [Line Items]
Concentration risk, percentage	64.00%	55.00%

Inventory (Tables)

12 Months Ended

Dec. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory

Our inventory, net of allowance for obsolescence of $4.0 million and $0.1 million at December 31, 2023 and 2022, respectively, consisted of the following:


	December 31,
	2023		2022
	(in thousands)
Inventory, net of allowance for obsolescence of $2,836 and $0, respectively	$	20,227	$	21,354
Work-in-process	1,412		2,060

Inventory current	21,639		23,414
Raw materials - long term (net of allowances of $1,168 and $120, respectively)	701		1,557
Inventory total	$	22,340	$	24,971

A summary of our inventory allowance is as follows:


	Year Ended December 31,
	2023		2022
	(in thousands)
Beginning balance	$	120	$	64
Additions	3,965		83
Write-offs	(81)		(27)
Ending balance	$	4,004	$	120

Rental Equipment, Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Depreciation	$ 26,425	$ 23,991
Retirement of rental equipment	505	196
Rental Equipment
Property, Plant and Equipment [Line Items]
Depreciation	24,000	21,900
Property, Plant, and Equipment, Excluding Rental Equipment
Property, Plant and Equipment [Line Items]
Depreciation	$ 2,400	$ 2,100
Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	3 years
Minimum \| Rental Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	15 years
Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	39 years
Maximum \| Rental Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	25 years

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On February 1, 2024, the Company announced that it had appointed Justin Jacobs as Chief Executive Officer, effective February 12, 2024. Mr. Jacobs is a member of our board of directors

Inventory

12 Months Ended

Dec. 31, 2023

Inventory Disclosure [Abstract]

Inventory

Our inventory, net of allowance for obsolescence of $4.0 million and $0.1 million at December 31, 2023 and 2022, respectively, consisted of the following:


	December 31,
	2023		2022
	(in thousands)
Inventory, net of allowance for obsolescence of $2,836 and $0, respectively	$	20,227	$	21,354
Work-in-process	1,412		2,060

Inventory current	21,639		23,414
Raw materials - long term (net of allowances of $1,168 and $120, respectively)	701		1,557
Inventory total	$	22,340	$	24,971

Our long-term inventory consists of raw materials that remain viable but which the Company does not expect to sell or use within the next year.

Inventory Allowance

We routinely review our inventory allowance balance to account for slow moving or obsolete inventory costs that may not be recoverable in the future. For the year ended December 31, 2023, our provision for excess and obsolete inventory totaled $4.0 million. The majority of this amount was due to a 2023 charge related to the company's decision to cease future compressor fabrication at our Midland facility, which reduced the expected future demand of certain inventory items held at this facility.

A summary of our inventory allowance is as follows:


	Year Ended December 31,
	2023		2022
	(in thousands)
Beginning balance	$	120	$	64
Additions	3,965		83
Write-offs	(81)		(27)
Ending balance	$	4,004	$	120

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Allowance for inventory obsolescence	$ 4,004	$ 120	$ 64
Allowance for inventory obsolescence, current	2,836	0
Inventory, net of allowance for obsolescence of $2,836 and $0, respectively	20,227	21,354
Work-in-process	1,412	2,060
Inventory current	21,639	23,414
Allowance for inventory obsolescence, noncurrent	1,168	120
Raw materials - long term (net of allowances of $1,168 and $120, respectively)	701	1,557
Inventory total	$ 22,340	$ 24,971

Income Taxes - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current expense
State expense	$ (35)	$ (17)
Total current expense	(35)	(17)
Deferred (expense) benefit:
Federal expense	(1,940)	(857)
State benefit	102	346
Total deferred expense	(1,838)	(511)
Total income tax expense	$ (1,873)	$ (528)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Rental Activity - Narrative (Details)	Dec. 31, 2023
Minimum
Lessee, Lease, Description [Line Items]
Rental contract term	6 months
Maximum
Lessee, Lease, Description [Line Items]
Rental contract term	60 months

Credit Facility (Details) $ in Thousands				3 Months Ended	12 Months Ended
Credit Facility (Details) $ in Thousands	Nov. 14, 2023 USD ($)	Feb. 28, 2023 USD ($)	May 11, 2021 USD ($)	Mar. 31, 2025	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Nov. 13, 2023 USD ($)
Line of Credit Facility [Line Items]
Credit facility					$ 164,000	$ 25,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Debt term		5 years	5 years
Aggregate credit agreement commitment	$ 225,000		$ 30,000				$ 175,000
Borrowing base amount available		$ 175,000	20,000
Potential increase in borrowing capacity	50,000	125,000	30,000
Potential maximum borrowing capacity		300,000	$ 50,000
Weighted average interest rate					9.40%
Increase in commitment		145,000
Remaining borrowing capacity					$ 56,000
Amendment fees	$ 600	$ 2,000
Amendment fees, percentage	1.125%	1.39%
Percentage of eligible non investment grade decors		85.00%
Percentage of eligible inventory		50.00%
Line of credit facility, non exceeding cap of components		$ 2,500
Percentage of eligible compressors for extension of credit		95.00%
Term For depreciation		25 years
Percentage of net liquidation value of eligible compressors for extension of credit		80.00%
Percentage of eligible value at cost		80.00%
Commitment fee percentage		0.50%
Maximum leverage ratio allowed		3.5
Fixed charge coverage ratio		1.25
Revolving Credit Facility \| Forecast
Line of Credit Facility [Line Items]
Maximum leverage ratio allowed				3.25
Revolving Credit Facility \| New Credit Agreement \| Line of Credit
Line of Credit Facility [Line Items]
Amount outstanding						$ 25,000
Weighted average interest rate						7.32%
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Default trigger, certain defaults of other company indebtedness, amount		$ 1,000
Default trigger, rendering of certain judgments, amount		$ 1,000
Revolving Credit Facility \| Federal Fund Rate
Line of Credit Facility [Line Items]
Variable rate, applicable margin		0.50%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Variable rate, applicable margin		1.00%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		3.00%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		3.75%
Revolving Credit Facility \| Base Rate Loans \| Minimum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		2.00%
Revolving Credit Facility \| Base Rate Loans \| Maximum
Line of Credit Facility [Line Items]
Variable rate, applicable margin		2.75%

Related Party	12 Months Ended
Related Party	Dec. 31, 2023
Related Party Transactions [Abstract]
Related Party	Related Party During the year ended December 31, 2023, we sold $0.9 million of compressor components to N-G Joint Venture, LLC our 14% joint venture. As of December 31, 2023, we had accounts receivable of $0.2 million with N-G. During the year ended December 31, 2023, we paid $0.3 million to Mill Road Capital, a large shareholder, for expense reimbursements related to our cooperation agreement.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Stock-Based and Other Long-Term Incentive Compensation - 1998 Stock Options Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	6,000	215,000
Weighted average grant date fair value of options granted (in dollars per share)	$ 9.80
Unrecognized compensation cost related to stock options	$ 100,000
Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value of options granted (in dollars per share)	$ 5.11	$ 4.24
Total intrinsic value of options exercised	$ 0	$ 0
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 100,000	$ 300,000
Stock Options \| Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Award expiration period	10 years
Stock Options \| Stock Option Plan \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,000,000
Number of shares available for grant (in shares)	415,085

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 4,747	$ (569)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	26,550	24,116
Amortization of debt issuance costs	425	48
Deferred taxes	1,838	511
Gain on disposal of assets	(481)	(250)
Impairment expense	779	0
Retirement of rental equipment	505	196
Provision for credit losses	492	0
Inventory allowance	3,965	83
Stock-based compensation	2,054	1,910
Loss on company owned life insurance	235	389
Changes in operating assets and liabilities:
Trade accounts receivables	(25,010)	(4,279)
Inventory	(669)	(4,143)
Prepaid income taxes and prepaid expenses	(7)	(250)
Accounts payable and accrued liabilities	2,436	10,033
Other	174	(31)
NET CASH PROVIDED BY OPERATING ACTIVITIES	18,033	27,764
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of rental equipment, property and other equipment	(153,943)	(65,122)
Purchase of company owned life insurance	(422)	(329)
Proceeds from sale of property and equipment	477	372
NET CASH USED IN INVESTING ACTIVITIES	(153,888)	(65,079)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Proceeds from line of credit	139,000	25,000
Payments For Other Long Term Liabilities	(95)	(3)
Payments of debt issuance costs	(2,693)	(77)
Purchase of treasury shares	0	(6,660)
Taxes paid related to net share settlement of equity awards	(983)	(515)
NET CASH PROVIDED BY FINANCING ACTIVITIES	135,229	17,745
NET CHANGE IN CASH AND CASH EQUIVALENTS	(626)	(19,570)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	3,372	22,942
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,746	3,372
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	7,053	276
NON-CASH TRANSACTIONS
Transfer of rental equipment to inventory	665	0
Right of use asset acquired through a finance lease	1,146	0
Right of use asset acquired through an operating lease	$ 63	$ 229

Rental Equipment, Property and Equipment - Depreciation Expense by Product Line (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Depreciation	$ 26,425	$ 23,991
Corporate
Property, Plant and Equipment [Line Items]
Depreciation	569	440
Rentals \| Operating Segments
Property, Plant and Equipment [Line Items]
Depreciation	25,507	23,243
Sales \| Operating Segments
Property, Plant and Equipment [Line Items]
Depreciation	260	275
Service & Maintenance \| Operating Segments
Property, Plant and Equipment [Line Items]
Depreciation	$ 89	$ 33

Deferred Compensation Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Compensation Related Costs [Abstract]
Participant's maximum compensation deferral percentage	90.00%
Company owned life insurance	$ 3,000	$ 2,400
Gain (loss) on company owned life insurance	(235)	(389)
Deferred compensation obligation	$ 3,600	$ 2,800
Deferred restricted stock shares (in shares)	0	3,138
Deferred compensation arrangement with individual, shares issued (in shares)	191,700	188,562
Deferred compensation arrangement, fair value of shares issued	$ 2,700	$ 2,600

Income Taxes - Narrative (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Federal income tax receivable	$ 15,000,000	$ 11,538,000	$ 11,538,000
Deferred tax liability increase due to tax law change	$ (10,100,000)
Net operating loss carryforward		96,000,000
Amount of reserve for uncertain tax positions		$ 0	$ 0

Rental Equipment, Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Rental Equipment, Property and Equipment

Rental Equipment

Our rental equipment and associated accumulated depreciation as of December 31, 2023 and 2022, respectively, consisted of the following:


	December 31,
	2023		2022
	(in thousands)
Compressor units	$	514,527	$	387,145
Work-in-progress	50,867		37,034
Rental equipment	565,394		424,179
Accumulated depreciation	(191,745)		(177,729)
Rental equipment, net of accumulated depreciation	$	373,649	$	246,450

Our rental equipment has an estimated useful life between 15 and 25 years. Depreciation expense for rental equipment was $24.0 million and $21.9 million for the years ended December 31, 2023 and 2022, respectively.

Retirement of Rental Equipment

Management routinely reviews the Company's inventory of rental equipment for retirement or obsolescence. During 2023, management reviewed the rental fleet to determine which units were not of the type, configuration, make or model that our customers are demanding or that were not cost efficient to refurbish, maintain and/or operate. As a result of this review, we recorded a $0.5 million loss on retirement of rental equipment during the year ended December 31, 2023.

During our review of our rental compressor units in 2022, we recorded a $0.2 million loss on retirement of rental equipment.

Property and Equipment

Property and equipment consists of the following at December 31, 2023 and 2022:


		December 31,
	Useful Lives (Years)	2023		2022
		(in thousands)
Land	—	$	1,680	$	1,680
Building	39	19,140		19,166
Leasehold improvements	39	1,295		1,218
Office equipment and furniture	5	2,039		2,016
Software	5	573		573
Machinery and equipment	7	4,113		4,052
Vehicles	3	8,770		9,858
Work-in-progress		589		594
Total		38,199		39,157
Less accumulated depreciation		(17,649)		(16,981)
Total		$	20,550	$	22,176

Depreciation expense for property and equipment was $2.4 million and $2.1 million for the year ended December 31, 2023 and 2022, respectively.

Depreciation Expense by Product Line

The following table depicts annual depreciation expense associated with each product line as well as our corporate activities at December 31, 2023 and 2022:


	December 31,
	2023		2022
	(in thousands)
Rentals	$	25,507	$	23,243
Sales	260		275
Service & Maintenance	89		33
Corporate	569		440
Total	$	26,425	$	23,991

Earnings (loss) per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share amounts):


	Year Ended December 31,
	2023		2022
Numerator:
Net income (loss)	$	4,747	$	(569)
Denominator for basic net earnings (loss) per common share:
Weighted average common shares outstanding	12,316		12,305
Denominator for diluted net income (loss) per share:
Weighted average common shares outstanding	12,316		12,305
Dilutive effect of stock options and restricted shares	67		—
Diluted weighted average shares	12,383		12,305
Earnings (loss) per common share:
Basic	$	0.39	$	(0.05)
Diluted	$	0.38	$	(0.05)

Intangibles (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Identified Finite-Lived Intangible Assets, Finite Lived

The following table represents the identified intangible assets by major asset class (in thousands):


		December 31, 2023						December 31, 2022
	Useful Life (years)	Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value



Developed Technology	20	$	2,505	$	2,384	$	121	$	2,505	$	2,259	$	246
Trade Name	Indefinite	654		—		654		654		—		654
Total		$	3,159	$	2,384	$	775	$	3,159	$	2,259	$	900

Schedule of Identified Indefinite-Lived Intangible Assets

The following table represents the identified intangible assets by major asset class (in thousands):


		December 31, 2023						December 31, 2022
	Useful Life (years)	Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value



Developed Technology	20	$	2,505	$	2,384	$	121	$	2,505	$	2,259	$	246
Trade Name	Indefinite	654		—		654		654		—		654
Total		$	3,159	$	2,384	$	775	$	3,159	$	2,259	$	900

Rental Activity - Future Minimum Rent Payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
2024	$ 71,965
2025	54,402
2026	41,127
2027	32,650
2028	18,463
Thereafter	0
Total	$ 218,607

Stock-Based and Other Long-Term Incentive Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Restricted Stock Activity

A summary of all restricted stock/unit activity as of December 31, 2022 and 2023 and changes during the years then ended are presented below.


	Number of Shares	Grant Date Fair Value		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2021	276,319	$	9.67	1.77	$	2,893
Granted	126,662	$	10.21	—	$	1,294
Vested	(152,134)	$	10.99	—	$	1,778

Outstanding, December 31, 2022	250,847	$	9.14	1.42	$	2,681
Granted	164,640	$	10.65	—	$	1,754
Vested	(267,232)	$	9.22	—	$	2,683
Canceled/Forfeited	(14,357)	$	10.04	—	$	158
Outstanding, December 31, 2023	133,898	$	10.66	1.57	$	1,813

Schedule of Stock Options Fair Value Assumptions


Weighted average Black -Scholes fair value assumption during the year ended December 31, are as follows:	2023		2022
Risk free rate	3.99	%	2.99	%
Expected life	6.5		2.67
Expected volatility	47	%	54.5	%
Expected dividend yield	—	%	—	%

Schedule of Option Activity

A summary of all option activity as of December 31, 2022 and 2023 and changes during the years then ended are presented below:


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding December 31, 2021	200,834	$	21.17	4.83	$	—
Granted	215,000	$	16.07	—	$	—

Canceled/Forfeited	(200,750)	$	(18.09)	—	$	—
Expired	(13,500)	$	13.29	—	$	—
Outstanding, December 31, 2022	201,584	$	19.32	3.90	$	—
Granted	6,000	$	9.80	—	$	1

Canceled/Forfeited	(39,833)	$	16.33	—	$	11
Expired	(38,000)	$	16.28	—	$	—
Outstanding, December 31, 2023	129,751	$	20.59	4.10	$	274
Exercisable, December 31, 2023	105,416	$	22.85	3.08	$	146

Schedule of Stock Options Outstanding

The following table summarizes information about our stock options outstanding at December 31, 2023:


Range of Exercise Prices	Options Outstanding				Options Exercisable
	Shares	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price

$0.01-$18.00	51,667	8.25	$	10.77	27,332	$	10.76

$22.01-$26.00	28,667	1.28	$	22.90	28,667	$	22.90
$26.01-$30.00	19,750	3.13	$	28.15	19,750	$	28.15
$30.01-$30.41	29,667	0.22	$	30.41	29,667	$	30.41
	129,751	4.10	$	20.59	105,416	$	22.85

Schedule of the Status of Unvested Stock Options

The summary of the status of our unvested stock options as of December 31, 2023, and changes during the year then ended is presented below.


Unvested stock options:	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2022	39,000	$	10.95
Granted	6,000	$	9.80
Vested	(14,998)	$	10.90
Canceled/Forfeited	(5,667)	$	10.58
Unvested at December 31, 2023	24,335	$	10.79

Deferred Compensation Plans	12 Months Ended
Deferred Compensation Plans	Dec. 31, 2023
Compensation Related Costs [Abstract]
Deferred Compensation Plans	Deferred Compensation Plans Effective January 1, 2016, the Company established a non-qualified deferred compensation plan for executive officers, directors and certain eligible employees. The assets of the deferred compensation plan are held in a rabbi trust and are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. The plan allows for deferral of up to 90% of a participant’s base salary, bonus, commissions, director fees and restricted stock awards. A Company owned life insurance policy held in a rabbi trust is utilized as a source of funding for the plan. The cash surrender value of the life insurance policy is $3.0 million and $2.4 million as of December 31, 2023 and 2022, respectively, with a loss related to the policy of $(0.2) million and $(0.4) million reported in other income in our consolidated statement of operations for the year ended December 31, 2023 and 2022, respectively. For deferrals of base salary, bonus, commissions and director fees, settlement payments are made to participants in cash, either in a lump sum or in periodic installments. The deferred obligation to pay the deferred compensation and the deferred director fees is adjusted to reflect the positive or negative performance of investment measurement options selected by each participant and was $3.6 million and $2.8 million as of December 31, 2023 and 2022, respectively. The deferred obligation is included in other long-term liabilities in the consolidated balance sheets. For deferrals of restricted stock units, the plan does not allow for diversification, therefore, distributions are paid in shares of our common stock and the obligation is carried at grant value. As of December 31, 2023 and 2022, respectively, we have none and 3,138 unvested restricted stock units being deferred. As of December 31, 2023 and 2022, respectively we have released and issued 191,700 and 188,562 shares to the deferred compensation plan with a value of $2.7 million and $2.6 million, respectively.

Stock-Based and Other Long-Term Incentive Compensation - Restricted Stock Narrative (Details) - Restricted Stock $ in Millions									12 Months Ended
	Oct. 26, 2023 shares	Oct. 08, 2023 shares	Jun. 30, 2023 shares	May 09, 2023 independent_director shares	Apr. 25, 2023 shares	Aug. 15, 2022 executive_officer shares	Jun. 16, 2022 shares	Apr. 26, 2022 independent_director shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 shares	Jun. 20, 2019 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)									133,898	250,847	276,319
Granted (in shares)									164,640	126,662
Stock based compensation expense \| $									$ 2.0	$ 1.7
Total unrecognized compensation expense \| $									$ 0.7
Recognition period									3 years
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year			1 year					1 year
Granted (in shares)	4,623			9,470				4,212
Number of independent directors \| independent_director				4				4
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period						3 years
Granted (in shares)						32,040
Number of executive officers \| executive_officer						2
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)						60,839
Chief Technical Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
Granted (in shares)					27,840
Mr.Taylor
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			1 year
Granted (in shares)			10,101		58,790
Chief Operating Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Granted (in shares)		6,361
Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)												500,000
Additional shares authorized (in shares)							650,000
Shares outstanding (in shares)									133,898
Award vesting period									3 years
2009 Restricted Stock/Units Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under the equity incentive plan (in shares)									405,833

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenue:
Rental income	$ 106,159	$ 74,465
Total revenue from contracts with customers	15,008	10,360
Total revenue	121,167	84,825
Operating costs and expenses:
Cost of rentals, exclusive of depreciation stated separately below	48,877	37,750
Cost of sales, exclusive of depreciation stated separately below	8,919	7,650
Cost of aftermarket services, exclusive of depreciation stated separately below	4,658	957
Selling, general and administrative expenses	16,457	13,642
Depreciation and amortization	26,550	24,116
Impairment expense	779	0
Inventory allowance	3,965	83
Retirement of rental equipment	505	196
Total operating costs and expenses	110,710	84,394
Operating income	10,457	431
Other income (expense):
Interest expense	(4,082)	(364)
Other income (expense)	245	(108)
Total other expense, net	(3,837)	(472)
Income (loss) before income taxes:	6,620	(41)
Provision for income taxes:
Current	(35)	(17)
Deferred	(1,838)	(511)
Total income tax expense	(1,873)	(528)
Net income (loss)	$ 4,747	$ (569)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.39	$ (0.05)
Diluted (in dollars per share)	$ 0.38	$ (0.05)
Weighted average shares outstanding:
Basic (in shares)	12,316	12,305
Diluted (in shares)	12,383	12,305
Sales
Revenue:
Total revenue from contracts with customers	$ 8,921	$ 8,568
Aftermarket services
Revenue:
Total revenue from contracts with customers	$ 6,087	$ 1,792

Stockholders' Equity (Details) - shares	Dec. 31, 2023	Dec. 31, 2022
Equity [Abstract]
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Rental Equipment, Property and Equipment - Schedule of Rental Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Rental equipment	$ 565,394	$ 424,179
Accumulated depreciation	(191,745)	(177,729)
Rental equipment, net of accumulated depreciation	373,649	246,450
Compressor units
Property, Plant and Equipment [Line Items]
Rental equipment	514,527	387,145
Work-in-progress
Property, Plant and Equipment [Line Items]
Rental equipment	$ 50,867	$ 37,034

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Balance Sheet Impact

The following table reflects the amounts related to leases that are recorded on our consolidated balance sheets as of December 31, 2023 and 2022:


	Classification on Consolidated	December 31,
	Balance Sheets	2023			2022
		($ in thousands)
Operating lease assets	Other assets	$	210		$	349
Finance lease assets	Other assets	$	1,045		$	—

Current lease liabilities	Accrued liabilities	$	58		$	155
Current lease liabilities	Accrued liabilities	307			—
Non-current lease liabilities	Other long-term liabilities	173			194
Non-current lease liabilities	Other long-term liabilities	723			—
Total lease liabilities		$	1,261		$	349

Weighted average remaining lease term in years		3.1			4.5
Implicit Rate		9.1		%	5.2		%

Schedule of Cash Flow Impact


	December 31,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating lease cost (1) (2)	$	485	$	384
Finance lease cost	$	95	$	—

(1) Lease costs are classified on the Consolidated Statements of Operations in cost of sales, cost of compressors and selling, general and administrative expenses.

(2) Includes costs of $0.3 million for leases with terms of 12 months or less and $0.2 million for leases with terms greater than 12 months for the year ended December 31, 2023. Includes costs of $0.2 million for leases with terms of 12 months or less and $0.2 million for leases with terms greater than 12 months for the year ended December 31, 2022.

Schedule of Future Maturities of Lease Liabilities

The following table shows the future maturities of lease liabilities:


Year Ending December 31,	Lease Liabilities
	(in thousands)
2024	$	437
2025	419
2026	328
2027	38
2028	38
Thereafter	16
Total lease payments	1,276
Less: Imputed interest	(15)
Total	$	1,261

Rental Equipment, Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Rental Equipment

Our rental equipment and associated accumulated depreciation as of December 31, 2023 and 2022, respectively, consisted of the following:


	December 31,
	2023		2022
	(in thousands)
Compressor units	$	514,527	$	387,145
Work-in-progress	50,867		37,034
Rental equipment	565,394		424,179
Accumulated depreciation	(191,745)		(177,729)
Rental equipment, net of accumulated depreciation	$	373,649	$	246,450

Property and equipment consists of the following at December 31, 2023 and 2022:


		December 31,
	Useful Lives (Years)	2023		2022
		(in thousands)
Land	—	$	1,680	$	1,680
Building	39	19,140		19,166
Leasehold improvements	39	1,295		1,218
Office equipment and furniture	5	2,039		2,016
Software	5	573		573
Machinery and equipment	7	4,113		4,052
Vehicles	3	8,770		9,858
Work-in-progress		589		594
Total		38,199		39,157
Less accumulated depreciation		(17,649)		(16,981)
Total		$	20,550	$	22,176

The following table depicts annual depreciation expense associated with each product line as well as our corporate activities at December 31, 2023 and 2022:


	December 31,
	2023		2022
	(in thousands)
Rentals	$	25,507	$	23,243
Sales	260		275
Service & Maintenance	89		33
Corporate	569		440
Total	$	26,425	$	23,991

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of BusinessNatural Gas Services Group, Inc. (the "Company", “NGS”, "Natural Gas Services Group", "we" or "our") (a Colorado corporation), is a leading provider of natural gas compression equipment and services to the energy industry. We rent, operate and maintain natural gas compressors and related equipment. We also design, fabricate and manufacture compressor units both for sale and rental to our customers. NGS is headquartered in Midland, Texas, with a fabrication facility located in Tulsa, Oklahoma, a rebuild shop in Midland, Texas, and service facilities located in major oil and natural gas producing basins in the U.S. The Company was formed on December 17, 1998.

Stock-Based and Other Long-Term Incentive Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Outstanding, beginning of period (in shares)	250,847	276,319
Granted (in shares)	164,640	126,662
Vested (in shares)	(267,232)	(152,134)
Canceled/Forfeited (in shares)	(14,357)
Outstanding, Ending of period (in shares)	133,898	250,847	276,319
Grant Date Fair Value
Outstanding, beginning of period (in dollars per share)	$ 9.14	$ 9.67
Granted (in dollars per share)	10.65	10.21
Vested (in dollars per share)	9.22	10.99
Canceled/Forfeited (in dollars per share)	10.04
Outstanding, end of period (in dollars per share)	$ 10.66	$ 9.14	$ 9.67
Weighted Average Remaining Contractual Life (years)
Weighted average remaining contractual life (years)	1 year 6 months 25 days	1 year 5 months 1 day	1 year 9 months 7 days
Aggregate Intrinsic Value (in thousands)
Outstanding, aggregate intrinsic value	$ 1,813	$ 2,681	$ 2,893
Granted, aggregate intrinsic value	1,754	1,294
Vested, aggregate intrinsic value	2,683	$ 1,778
Cancelled/Forfeited, aggregate intrinsic value	$ 158

Rental Activity (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Future Minimum Rent Payments Receivable

Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2023, are as follows:


Years Ending December 31,						(in thousands)
2024						$71,965
2025						54,402
2026						41,127
2027						32,650
2028						18,463
Thereafter						—
Total						$218,607

Accrued Liabilities

12 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consisted of the following as of December 31, 2023 and 2022 (in thousands):


	2023		2022

Accrued purchases	$	8,629	$	17,763
Accrued compensation	2,137		4,472
Accrued other	4,319		1,683

Total	$	15,085	$	23,918

Earnings (loss) per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earnings (loss) per Share

Basic earnings (loss) per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common share is computed using the weighted average number of common stock and common stock equivalent shares outstanding during the period.

The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share amounts):


	Year Ended December 31,
	2023		2022
Numerator:
Net income (loss)	$	4,747	$	(569)
Denominator for basic net earnings (loss) per common share:
Weighted average common shares outstanding	12,316		12,305
Denominator for diluted net income (loss) per share:
Weighted average common shares outstanding	12,316		12,305
Dilutive effect of stock options and restricted shares	67		—
Diluted weighted average shares	12,383		12,305
Earnings (loss) per common share:
Basic	$	0.39	$	(0.05)
Diluted	$	0.38	$	(0.05)

In the year ended December 31, 2022, 250,847 restricted stock/units and 201,584 stock options were not included in the computation of diluted loss per share due to their antidilutive effect. In the year ended December 31, 2023, 10,984 restricted stock/units and 129,751 stock options were not included in the computation of diluted earnings per share due to their antidilutive effect.

Related Party (Details) - USD ($) $ in Thousands	12 Months Ended
Related Party (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Revenues	$ 121,167	$ 84,825
Accounts receivable	39,186	14,668
Payments to related parties	$ (3,837)	$ (472)
N-G, LLC
Related Party Transaction [Line Items]
Percent ownership	14.00%
Corporate Joint Venture
Related Party Transaction [Line Items]
Revenues	$ 900
Accounts receivable	200
Shareholder
Related Party Transaction [Line Items]
Payments to related parties	$ 300

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.13-01(a)(4)(ii))
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1A
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-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
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-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

+ Details

Earnings (loss) per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Numerator:
Net income (loss)	$ 4,747	$ (569)
Denominator for basic net earnings (loss) per common share:
Weighted average common shares outstanding (in shares)	12,316,000	12,305,000
Denominator for diluted net income (loss) per share:
Dilutive effect of stock options and restricted shares (in shares)	67,000	0
Weighted average common shares outstanding, Diluted (in shares)	12,383,000	12,305,000
Earnings (loss) per common share:
Basic (in dollars per share)	$ 0.39	$ (0.05)
Diluted (in dollars per share)	$ 0.38	$ (0.05)
Restricted Stock/Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	10,984	250,847
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	129,751	201,584

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2023	Mar. 28, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-31398
Entity Registrant Name	NATURAL GAS SERVICES GROUP, INC.
Entity Incorporation, State or Country Code	CO
Entity Tax Identification Number	75-2811855
Entity Address, Address Line One	404 Veterans Airpark Lane, Suite 300
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79705
City Area Code	(432)
Local Phone Number	262-2700
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	NGS
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 123,100,000
Entity Common Stock, Shares Outstanding		12,437,074
Documents Incorporated by Reference	Documents Incorporated by Reference Certain information called for in Items 10, 11, 12, 13 and 14 of Part III are incorporated by reference to the registrant’s definitive proxy statement for the annual meeting of shareholders expected to be held on June 15, 2024.
Entity Central Index Key	0001084991
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false

Summary of Significant Accounting Policies - Contract Balances (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts Receivable
Accounts receivable - contracts with customers	$ 7,138	$ 4,353
Accounts receivable - ASC 842	32,871	10,653
Total Accounts Receivable	40,009	15,006
Less: Allowance for doubtful accounts	(823)	(338)
Total Accounts Receivable, net	39,186	14,668
Deferred income	$ 418	$ 37

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 2,746	$ 3,372
Trade accounts receivable, net of allowance for doubtful accounts of $823 and $338, respectively	39,186	14,668
Inventory, net of allowance for obsolescence of $2,836 and $0, respectively	21,639	23,414
Federal income tax receivable	11,538	11,538
Prepaid expenses and other	1,162	1,155
Total current assets	76,271	54,147
Long-term inventory, net of allowance for obsolescence of $1,168 and $120, respectively	701	1,557
Rental equipment, net of accumulated depreciation of $191,745 and $177,729, respectively	373,649	246,450
Property and equipment, net of accumulated depreciation of $17,649 and $16,981, respectively	20,550	22,176
Intangibles, net of accumulated amortization of $2,384 and $2,259, respectively	775	900
Other assets	6,783	3,016
Total assets	478,729	328,246
Current Liabilities:
Accounts payable	17,628	6,481
Accrued liabilities	15,085	23,918
Total current liabilities	32,713	30,399
Credit facility	164,000	25,000
Deferred income tax liability	41,636	39,798
Other long-term liabilities	4,486	2,973
Total liabilities	242,835	98,170
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, 5,000 shares authorized, no shares issued or outstanding	0	0
Common stock, 30,000 shares authorized, par value $0.01; 13,688 and 13,519 shares issued, respectively	137	135
Additional paid-in capital	116,480	115,411
Retained earnings	134,281	129,534
Treasury shares, at cost, 1,310 shares	(15,004)	(15,004)
Total stockholders' equity	235,894	230,076
Total liabilities and stockholders' equity	$ 478,729	$ 328,246

Rental Equipment, Property and Equipment - Schedule of Rental Equipment, Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 38,199	$ 39,157
Less accumulated depreciation	(17,649)	(16,981)
Total	20,550	22,176
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,680	1,680
Building
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	39 years
Property and equipment, gross	$ 19,140	19,166
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	39 years
Property and equipment, gross	$ 1,295	1,218
Office equipment and furniture
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Property and equipment, gross	$ 2,039	2,016
Software
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	5 years
Property and equipment, gross	$ 573	573
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	7 years
Property and equipment, gross	$ 4,113	4,052
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful life	3 years
Property and equipment, gross	$ 8,770	9,858
Work-in-progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 589	$ 594

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Allowance for doubtful accounts	$ 823	$ 338
Allowance for inventory obsolescence, current	2,836	0
Allowance for inventory obsolescence, noncurrent	1,168	120
Accumulated depreciation, rental equipment	191,745	177,729
Accumulated depreciation, property and equipment	17,649	16,981
Accumulated amortization, intangibles	$ 2,384	$ 2,259
Stockholders’ Equity:
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Ending balance (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	13,688,000	13,519,000
Common stock, shares outstanding (in shares)	13,688,000	13,519,000
Treasury shares (in shares)	1,310,000	1,310,000

Leases - Cash Flow Impact (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 485	$ 384
Finance lease cost	95	0
Short-term lease cost	300	200
Operating lease, cost	$ 200	$ 200

Rental Activity

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Rental Activity

We rent natural gas compressor packages to entities in the petroleum industry. These rental arrangements are classified as operating leases and generally have original terms of six months to sixty months and continue on a month-to-month basis thereafter.

Future minimum rent payments for arrangements not on a month-to-month basis at December 31, 2023, are as follows:


Years Ending December 31,						(in thousands)
2024						$71,965
2025						54,402
2026						41,127
2027						32,650
2028						18,463
Thereafter						—
Total						$218,607

Intangibles (Details) - USD ($)	12 Months Ended
Intangibles (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Intangible Assets [Line Items]
Amortization expense	$ 100,000	$ 100,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2024	100,000
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Value	3,159,000	3,159,000
Accumulated Amortization	2,384,000	2,259,000
Net Book Value	775,000	900,000
Impairment of intangible assets	0	0
Trade Name
Finite-Lived Intangible Assets, Net [Abstract]
Gross Carrying Value	654,000	654,000
Accumulated Amortization	0	0
Net Book Value	$ 654,000	$ 654,000
Developed Technology
Finite-Lived Intangible Assets, Net [Abstract]
Useful Life (years)	20 years	20 years
Gross Carrying Value	$ 2,505,000	$ 2,505,000
Accumulated Amortization	2,384,000	2,259,000
Net Book Value	$ 121,000	$ 246,000

Stock-Based and Other Long-Term Incentive Compensation - Stock Options by Exercise Price Range (Details)	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, shares (in shares) \| shares	129,751
Options outstanding, weighted average remaining contractual life (years)	4 years 1 month 6 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 20.59
Options exercisable, shares (in shares) \| shares	105,416
Options exercisable, weighted average exercise price (in dollars per share)	$ 22.85
$0.01-$18.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	0.01
Range of exercise prices, upper limit (in dollars per share)	$ 18
Options outstanding, shares (in shares) \| shares	51,667
Options outstanding, weighted average remaining contractual life (years)	8 years 3 months
Options outstanding, weighted average exercise price (in dollars per share)	$ 10.77
Options exercisable, shares (in shares) \| shares	27,332
Options exercisable, weighted average exercise price (in dollars per share)	$ 10.76
$22.01-$26.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	22.01
Range of exercise prices, upper limit (in dollars per share)	$ 26
Options outstanding, shares (in shares) \| shares	28,667
Options outstanding, weighted average remaining contractual life (years)	1 year 3 months 10 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 22.90
Options exercisable, shares (in shares) \| shares	28,667
Options exercisable, weighted average exercise price (in dollars per share)	$ 22.90
$26.01-$30.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	26.01
Range of exercise prices, upper limit (in dollars per share)	$ 30
Options outstanding, shares (in shares) \| shares	19,750
Options outstanding, weighted average remaining contractual life (years)	3 years 1 month 17 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 28.15
Options exercisable, shares (in shares) \| shares	19,750
Options exercisable, weighted average exercise price (in dollars per share)	$ 28.15
$30.01-$30.41
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise prices, lower limit (in dollars per share)	30.01
Range of exercise prices, upper limit (in dollars per share)	$ 30.41
Options outstanding, shares (in shares) \| shares	29,667
Options outstanding, weighted average remaining contractual life (years)	2 months 19 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 30.41
Options exercisable, shares (in shares) \| shares	29,667
Options exercisable, weighted average exercise price (in dollars per share)	$ 30.41

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The provision for income taxes for the years ended December 31, 2023 and 2022, consists of the following (in thousands):


	2023		2022
Current expense

State expense	$	(35)	$	(17)
Total current expense	(35)		(17)
Deferred (expense) benefit:
Federal expense	(1,940)		(857)
State benefit	102		346
Total deferred expense	(1,838)		(511)
Total expense	$	(1,873)	$	(528)

The effective tax rate for the years ended December 31, 2023 and 2022, differs from the statutory rate as follows:


	2023		2022
Statutory rate	21.0	%	21.0	%
State and local taxes	(1.3)	%	812.2	%



Stock based compensation	0.7	%	(58.5)	%
Nondeductible compensation	8.2	%	(1,846.3)	%

Other	(0.3)	%	(217.1)	%
Effective rate	28.3	%	(1,288.7)	%

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the economic impact caused by the COVID-19 pandemic. The CARES Act, among other things, permits federal income tax net operating loss ("NOL") carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid federal income taxes. The Company generated significant NOLs

during 2018 and 2019 and filed carryback claims for these losses to the preceding five years. Accordingly, as of March 31, 2020, the Company recorded a federal income tax receivable of $15.0 million and an increase to its deferred tax liability of $10.1 million on its balance sheet. During the third quarter of 2020, the Company received refunds corresponding to the 2018 NOL carryback, leaving a balance in the federal income tax receivable of $11.5 million at December 31, 2023.

In conjunction with the $11.5 million income tax refund claim, on March 8, 2023, the Company received a notice from the Internal Revenue Service that its 2015, 2016, 2017 and 2019 income tax returns were selected for examination.

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) as of December 31, 2023 and 2022, are as follows (in thousands):


	2023		2022
Deferred income tax assets:
Net operating loss	$	22,190	$	6,391
Research and development credits	1,313		1,338
Stock compensation	153		121
Interest expense	991		—
Inventory reserves	893		—
Deferred compensation	792		617
Other	285		354
Total deferred income tax assets	26,617		8,821
Deferred income tax liabilities:
Property and equipment	(68,110)		(48,427)
Goodwill and other intangible assets	(143)		(192)
Total deferred income tax liabilities	(68,253)		(48,619)
Net deferred income tax liabilities	$	(41,636)	$	(39,798)

As of December 31, 2023, the Company had NOL carryforwards for federal income tax purposes of $96.0 million, which may be carried forward indefinitely and can offset up to 80% of future taxable income in any given year. Future changes in ownership, as defined by Section 382 of the Internal Revenue Code ("IRC"), could limit the amount of NOL carryforwards used in any one year. In general, under Section 382 and 383 of the IRC, a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change NOLs and certain tax credits, to offset future taxable income and tax. In general, an ownership change occurs if the aggregate stock ownership of certain stockholders changes by more than 50 percentage points over such stockholders’ lowest percentage of ownership during the testing period (generally three years).

We account for uncertain tax positions in accordance with guidance in FASB ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. The Company assessed whether it had any uncertain tax positions related to open tax years and concluded there were none. Accordingly, no reserve for uncertain tax positions has been recorded as of December 31, 2023 and 2022.

Our policy regarding income tax interest and penalties is to expense those items as incurred. During the years ended December 31, 2023 and 2022, there were no significant income tax interest or penalty items in the statement of operations.

We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal or state income tax examination by tax authorities for years before 2015.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 21
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
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-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred income tax assets:
Net operating loss	$ 22,190	$ 6,391
Research and development credits	1,313	1,338
Stock compensation	153	121
Interest expense	991	0
Inventory reserves	893	0
Deferred compensation	792	617
Other	285	354
Total deferred income tax assets	26,617	8,821
Deferred income tax liabilities:
Property and equipment	(68,110)	(48,427)
Goodwill and other intangible assets	(143)	(192)
Total deferred income tax liabilities	(68,253)	(48,619)
Net deferred income tax liabilities	$ (41,636)	$ (39,798)

Stock-Based and Other Long-Term Incentive Compensation - Other Long-Term Incentive Compensation Narrative (Details) - Other Long-Term Incentive Compensation $ in Thousands					12 Months Ended
	Apr. 26, 2022 USD ($) independent_director	Apr. 01, 2021 USD ($)	Mar. 18, 2021 USD ($) independent_director	Apr. 28, 2020 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted			$ 1,000	$ 1,100
Award vesting period			3 years	3 years
Stock based compensation expense					$ 400	$ 1,000
Total unrecognized compensation expense					$ 0	$ 700
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	$ 50	$ 50	$ 50
Award vesting period	1 year	1 year
Number of independent directors \| independent_director	4		3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Allowance for Credit Losses

A summary of our allowance for credit losses is as follows:


	Year Ended December 31,
	2023		2022
	(in thousands)
Beginning balance	$	338	$	1,129
Accruals	492		—

Write-offs	(7)		(791)
Ending balance	$	823	$	338

Schedule of Disaggregation of Revenue

The following table shows the Company's revenue disaggregated by product or service type for the years ended:


	Year Ended December 31,
	2023		2022
	(in thousands)
Compressors - sales	$	1,800	$	3,601
Flares - sales	87		239
Other (Parts/Rebuilds) - sales	7,034		4,728
Aftermarket services	6,087		1,792
Total revenue from contracts with customers	15,008		10,360
Add: ASC 842 rental revenue	106,159		74,465
Total revenue	$	121,167	$	84,825

Schedule of Contract with Customer, Asset and Liability

As of December 31, 2023 and 2022, we had the following receivables and deferred income from contracts with customers:


	December 31,
	2023		2022
	(in thousands)
Accounts Receivable
Accounts receivable - contracts with customers	$	7,138	$	4,353
Accounts receivable - ASC 842	32,871		10,653
Total Accounts Receivable	40,009		15,006
Less: Allowance for doubtful accounts	(823)		(338)
Total Accounts Receivable, net	$	39,186	$	14,668

Deferred income	$	418	$	37

Summary of Significant Accounting Policies - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 338	$ 1,129
Accruals	492	0
Write-offs	(7)	(791)
Ending balance	$ 823	$ 338

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

The Company determines if an arrangement is a lease at inception by assessing whether it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Company’s operating leases are primarily related to property leases for its field offices. The Company's operating leases have remaining lease terms of one to eight years. Renewal and termination options are included in the lease term when it is reasonably certain that the Company will exercise the option. The company's finance leases are primarily related to vehicles used in our rental business. The company's finance leases have lease terms of 3 years.

The Company's lease agreements do not contain any contingent rental payments, material residual guarantees or material restrictive covenants.

Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As substantially all of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which is based on a fully collateralized loan over the lease term, to determine the present value of lease payments. The following table reflects the amounts related to leases that are recorded on our consolidated balance sheets as of December 31, 2023 and 2022:


	Classification on Consolidated	December 31,
	Balance Sheets	2023			2022
		($ in thousands)
Operating lease assets	Other assets	$	210		$	349
Finance lease assets	Other assets	$	1,045		$	—

Current lease liabilities	Accrued liabilities	$	58		$	155
Current lease liabilities	Accrued liabilities	307			—
Non-current lease liabilities	Other long-term liabilities	173			194
Non-current lease liabilities	Other long-term liabilities	723			—
Total lease liabilities		$	1,261		$	349

Weighted average remaining lease term in years		3.1			4.5
Implicit Rate		9.1		%	5.2		%

Operating lease costs are recognized on a straight-line basis over the lease term. Total operating lease costs for the years ended December 31, 2023 and December 31, 2022 were approximately $0.5 million and $0.4 million respectively.


	December 31,
	2023		2022
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating lease cost (1) (2)	$	485	$	384
Finance lease cost	$	95	$	—

(1) Lease costs are classified on the Consolidated Statements of Operations in cost of sales, cost of compressors and selling, general and administrative expenses.

The following table shows the future maturities of lease liabilities:


Year Ending December 31,	Lease Liabilities
	(in thousands)
2024	$	437
2025	419
2026	328
2027	38
2028	38
Thereafter	16
Total lease payments	1,276
Less: Imputed interest	(15)
Total	$	1,261

Rent expense under such leases was $0.2 million and $0.2 million for the years ended December 31, 2023 and 2022, respectively.

Intangibles

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles

At December 31, 2023 and 2022, the Company had intangible assets, which relate to developed technology and a trade name. Amortization expense recognized in each of the years ending December 31, 2023 and 2022 was $0.1 million. Estimated amortization expense for 2024 is approximately $0.1 million. The Company has an intangible asset with a gross carrying value of $0.7 million at December 31, 2023, related to the trade name of SCS which was acquired in our acquisition of Screw Compression Systems in January 2005. This asset is not being amortized as it has been deemed to have an indefinite life.

The following table represents the identified intangible assets by major asset class (in thousands):


		December 31, 2023						December 31, 2022
	Useful Life (years)	Gross Carrying Value		Accumulated Amortization		Net Book Value		Gross Carrying Value		Accumulated Amortization		Net Book Value



Developed Technology	20	$	2,505	$	2,384	$	121	$	2,505	$	2,259	$	246
Trade Name	Indefinite	654		—		654		654		—		654
Total		$	3,159	$	2,384	$	775	$	3,159	$	2,259	$	900

impairment are present. We review intangibles through an assessment of the estimated future cash flows related to such assets. In the event that assets are found to be carried at amounts in excess of estimated undiscounted future cash flows, then the assets will be adjusted for impairment to a level commensurate with a discounted cash flow analysis of the underlying assets. Based upon our analysis, we experienced no impairment of intangible assets during the years ended December 31, 2023 or 2022.

Commitment and Contingencies	12 Months Ended
Commitment and Contingencies	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time to time, we are a party to various legal proceedings in the ordinary course of our business. While management is unable to predict the ultimate outcome of these actions, it believes that any ultimate liability arising from these actions will not have a material effect on our financial position, results of operations or cash flow. We are not currently a party to any bankruptcy, receivership, reorganization, adjustment or similar proceeding, and we are not aware of any other threatened litigation.

Leases - Balance Sheet Impact (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued liabilities	Accrued liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities
Operating lease assets	$ 210	$ 349
Finance lease assets	1,045	0
Current lease liabilities	58	155
Current lease liabilities	307	0
Non-current lease liabilities	173	194
Non-current lease liabilities	723	0
Total lease liabilities	$ 1,261	$ 349
Weighted average remaining lease term in years	3 years 1 month 6 days	4 years 6 months
Implicit Rate	9.10%	5.20%

Stock-Based and Other Long-Term Incentive Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Outstanding, beginning of period (in shares)	201,584	200,834
Granted (in shares)	6,000	215,000
Canceled/Forfeited (in shares)	(39,833)	(200,750)
Expired (in shares)	(38,000)	(13,500)
Outstanding, end of period (in shares)	129,751	201,584	200,834
Exercisable (in shares)	105,416
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 19.32	$ 21.17
Granted (in dollars per share)	9.80	16.07
Canceled/Forfeited, weighted average exercise price (in dollars per share)	16.33	18.09
Expired (in dollars per share)	16.28	13.29
Outstanding, end of period (in dollars per share)	20.59	$ 19.32	$ 21.17
Exercisable (in dollars per share)	$ 22.85
Weighted Average Remaining Contractual Life (years)
Outstanding, weighted average remaining contractual life	4 years 1 month 6 days	3 years 10 months 24 days	4 years 9 months 29 days
Exercisable, weighted average remaining contractual life	3 years 29 days
Aggregate Intrinsic Value
Outstanding, aggregate intrinsic value	$ 274	$ 0	$ 0
Canceled/Forfeited, aggregate intrinsic value	11	$ 0
Exercised, aggregate intrinsic value	1
Exercisable, aggregate intrinsic value	$ 146

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2023
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, its subsidiary, NGSG Properties, LLC and the rabbi trust associated with the Company’s deferred compensation plan, see Note 10. All significant intercompany accounts and transactions for the periods presented have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires our management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates include fixed asset lives, provision for credit losses and the allowance for inventory obsolescence. Additionally, NGS conducts a yearly review of impairment of long-lived assets. Throughout the review, determining factors are based on estimates that can significantly impact the carrying value of these assets. It is at least reasonably possible these estimates could be revised in the near term and the revisions could be material.
Cash Equivalents and Financial Instruments	Cash Equivalents and Financial Instruments For purposes of reporting cash flows, we consider all short-term investments with an original maturity of three months or less to be cash equivalents. At times, cash balances at banks and financial institutions may exceed federally insured amounts.
Accounts Receivable	Accounts Receivable Our trade receivables consist of customer obligations for the sale of compressors and flare systems due under normal trade terms, and operating leases for the use of our natural gas compressors. The receivables are not collateralized except as provided for under lease agreements. However, we typically require deposits of as much as 50% or use of progress payments for large custom sales contracts. We perform ongoing credit evaluations of our customers and adjust credit limits based on management's assessment of the customer's financial condition and payment history, as well as industry conditions and general economic conditions. We continuously monitor collections and payments from our customers, and maintain a provision for estimated credit losses based upon our historical experience and any specific customer collection issues that we have identified. While such credit losses have historically been within our expectations and the provisions established, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past.
Revenue Recognition Policy and Contract Costs	Revenue Recognition Policy Revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties (i.e. sales and property taxes). Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in our Consolidated Statements of Operations. Nature of Goods and Services The following is a description of principal activities from which the Company generates its revenue: Rental Revenue. The Company generates revenue from renting compressors and flare systems to our customers. These contracts, which all qualify as operating leases under ASC Topic 842, Leases (ASC 842), may also include a fee for servicing the compressor or flare during the rental contract. Our rental contracts typically range from six to 60 months. Our revenue is recognized over time, with equal monthly payments over the term of the contract. After the terms of the contract have expired, a customer may renew their contract or continue renting on a monthly basis thereafter. In accordance with ASC 842 – Leases, we have applied the practical expedient ASC 842-10-15-42A, which allows the Company to combine lease and non-lease components. Sales Revenue. The Company generates revenue by the sale of custom/fabricated compressors, flare systems and parts, as well as exchange/rebuilding customer owned compressors and sale of used rental equipment. Our sales revenue is recognized in accordance with ASC 606. Custom/fabricated compressors - The Company designs and fabricates compressors based on the customer’s specifications outlined in their contract. Though the equipment being built is customized by the customer, control under these contracts does not pass to the customer until the compressor is completed and shipped, or in accordance with a bill and hold arrangements the customer accepts title and assumes the risk and rewards of ownership. We request some of our customers to make progressive payments as the product is being built; these payments are recorded as a contract liability on the Deferred Income line on the consolidated balance sheet until control has been transferred. These contracts also may include an assurance warranty clause to guarantee the product is free from defects in material and workmanship for a set duration of time; this is a standard industry practice and is not considered a performance obligation. Parts - Revenue is recognized after the customer obtains control of the parts. Control is passed either by the customer taking physical possession or the parts being shipped. The amount of revenue recognized is not adjusted for expected returns, as our historical part returns have been de minimis. Exchange or rebuild customer owned compressors - Based on the contract, the Company will either exchange a new/rebuilt compressor for the customer’s malfunctioning compressor or rebuild the customer’s compressor. Revenue is recognized after control of the replacement compressor has transferred to the customer based on the terms of the contract, i.e., by physical delivery, delivery and installment, or shipment of the compressor. Used compressors or flares - From time to time, a customer may request to purchase a used compressor out of our rental fleet. Revenue from the sale of rental equipment is recognized when the control has passed to the customer based on the terms of the contract, i.e. when the customer has taken physical possession or the equipment has been shipped. Aftermarket Service Revenue. The Company provides routine or call-out services on customer owned equipment. Revenue is recognized after services in the contract are rendered. Payment terms for sales revenue and aftermarket services revenue discussed above are generally 30 to 60 days although terms for specific customers can vary. Also, the transaction prices are not subject to variable consideration constraints. Contract Costs The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general and administrative expense on our Consolidated Statements of Operations.
Leases	Leases Accounting Standards Codification ("ASC") 842 requires all leases to be reported on the balance sheet as right-of-use ("ROU") assets and lease obligations. We determine if an arrangement is a lease at inception and determine lease classification and recognize ROU assets and liabilities on the lease commencement date based on the present value of lease payments over the lease term. As the discount rate implicit in the lease is rarely readily determinable, we estimate our incremental borrowing rate using information available at the commencement date in determining the present value of the lease payments. We, as a lessee, apply the practical expedient to not separate non-lease components from lease components, therefore, accounting for each separate lease component and its associated non-lease component, as a single lease component. For each lease that 1) contains the same timing and pattern of transfer for lease and non-lease components and 2) if the lease component, if accounted for separately, would be classified as an operating lease, the Company has elected to not separate non-lease components from lease components.
Major Customers and Concentration of Credit Risk	Major Customers and Concentration of Credit Risk Sales and rental income from Occidental Permian, LTD. ("Oxy") in 2023 and 2022 amounted to 50% and 42% of revenue, respectively. No other single customer accounted for more than 10% of our revenues in 2023 and 2022. Oxy's accounts receivable balances amounted to 64% and 55% of our accounts receivable as of December 31, 2023 and 2022, respectively. No other customers amounted to more than 10% of our accounts receivable as of December 31, 2023 and 2022.
Inventory	Inventory Inventory (current and long-term) is valued at the lower of cost and net realizable value. The cost of inventories is determined by the weighted average method. We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based primarily on current and anticipated customer demand and production requirements. The Company assesses anticipated customer demand based on current and upcoming capital expenditure budgets of its major customers as well as other significant companies in the industry, along with oil and natural gas price forecasts and other factors affecting the industry. In addition, our long-term inventory consists of raw materials and replacement parts that remain useable but which the Company does not expect to sell or use within the next year.
Rental Equipment and Property and Equipment	Rental Equipment and Property and Equipment Rental equipment and property and equipment are recorded at cost less accumulated depreciation, except for work-in-progress on new rental equipment which is recorded at cost until it’s complete and added to the fleet. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Our rental equipment has estimated useful lives between 15 and 25 years, while our property and equipment has estimated useful lives which ranges from 3 to 39 years. The majority of our property and equipment, including rental equipment, is a direct cost to generating revenue.
Impairment of Rental Equipment	We assess the impairment of rental equipment and property and equipment whenever events or changes in circumstances indicate that the net recorded amount may not be recoverable. The following factors could trigger an impairment review: significant underperformance relative to historical or projected future cash flows; significant adverse changes in the extent or manner in which asset (or asset group) is being used or its condition, including a meaningful drop in fleet utilization over the prior four quarters; significant negative industry or company-specific trends or actions, including meaningful capital expenditure budget reductions by our major customers or other sizable exploration and production or midstream companies, as well as significant declines in oil and natural gas prices; legislative changes prohibiting us from leasing our units or flares; or poor general economic conditions. An impairment loss is recognized if the future undiscounted cash flows associated with the asset (or asset group) and the estimated fair value of the asset are less than the asset's carrying value. Sales of equipment out of the rental fleet are included with sales revenue and cost of sales, while retirements of units are shown a separate operating expense. Gains and losses resulting from sales and dispositions of other property and equipment are included within selling, general, and administrative expenses. Maintenance and repairs are charged to cost of rentals as incurred.
Intangibles	Intangibles At December 31, 2023 and 2022, NGS had intangible assets, which relate to developed technology and a trade name. Developed technology is amortized on a straight-line basis with a useful life of 20 years, with a weighted average remaining life of approximately four years as of December 31, 2023. NGS has an intangible asset related to the trade name of SCS which was acquired in our acquisition of Screw Compression Systems in January 2005. This asset is not being amortized as it has been deemed to have an indefinite life. Our policy is to review intangibles that are being amortized for impairment when indicators of impairment are present. In addition, it is our policy to review indefinite-lived intangible assets for impairment annually or when indicators of impairment are present. We review intangibles through an assessment of the estimated future cash flows related to such assets. In the event that assets are found to be carried at amounts in excess of estimated undiscounted future cash flows, then the assets will be adjusted for impairment to a level commensurate with a discounted cash flow analysis of the underlying assets.
Warranty	Warranty When warranted, we accrue amounts for estimated warranty claims based upon current and historical product warranty costs and any other related information known.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, and net operating losses and tax credit carry-forwards. 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 the period that includes the statutory enactment date. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC Topic 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In order to record any financial statement benefit, we are required to determine, based on technical merits of the position, whether it is more likely than not (a likelihood of more than 50 percent) that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. If that step is satisfied, then we must measure the tax position to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of the benefit that is greater than 50 percent likely of being realized upon ultimate settlement. We have no uncertain tax positions as of December 31, 2023. Our policy regarding income tax interest and penalties is to expense those items as other expense.
Capitalized Interest	Capitalized Interest Effective January 1, 2023, the Company began capitalizing interest from external borrowings on significant expenditures for the fabrication of its natural gas compressor equipment until such projects are ready for their intended use. Capitalized interest is added to the cost of the underlying asset and is amortized over the useful lives of the assets in the same manner as the underlying assets.
Fair Value Measurement	Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. ASC Topic 820 established a fair value hierarchy, which requires an entity to maximize the use of observable inputs when measuring fair value. These inputs are categorized as follows: Level 1- quoted prices in an active market for identical assets or liabilities; Level 2- quoted prices in an active market for similar assets or liabilities, inputs other than quoted prices that are observable for similar assets or liabilities, inputs derived principally from or corroborated by observable market data by correlation or other means; and Level 3- valuation methodology with unobservable inputs that are significant to the fair value measurement. Management believes that the fair value of our cash and cash equivalents, trade receivables, and accounts payable at December 31, 2023 and 2022 approximate their carrying values due to the short-term nature of the instruments or the use of prevailing market interest rates. The company considered the borrowings under the credit facility to approximate fair value based upon borrowing rates currently available to us for loans with similar terms (level 2).
Segments and Related Information	Segments and Related Information ASC 280-10-50, “Operating Segments”, define the characteristics of an operating segment as a) being engaged in business activity from which it may earn revenue and incur expenses, b) being reviewed by the company's chief operating decision maker (CODM) for decisions about resources to be allocated and assess its performance and c) having discrete financial information. Although we look at our products to analyze the nature of our revenue, other financial information, such as certain costs and expenses, net income and EBITDA are not captured or analyzed by these categories. Our CODM does not make resource allocation decisions or assess the performance of the business based on these categories, but rather in the aggregate. Based on this, management believes that it operates in one business segment. We are engaged in the business of designing and fabricating compressors. Our compressors are sold and rented to our customers. In addition, we provide aftermarket services on compressors in our fleet and to third parties. These business activities are similar in all geographic areas. Historically, our manufacturing process has been essentially the same for the entire Company and has been performed in-house at our facilities in Midland, Texas and Tulsa, Oklahoma. Increasingly, however, we have contracted with third party fabricators to assemble our larger horsepower natural gas compressors. Our customers primarily consist of entities in the business of producing oil and natural gas. The maintenance and service of our products is consistent across the entire Company and is performed via an internal fleet of vehicles. The regulatory environment is similar in every jurisdiction in that the most impacting regulations and practices are the result of federal energy policy.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments to ASC Topic 326 require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including trade receivables. For companies that qualify as smaller reporting companies, the amendments in this update are effective for interim and annual periods beginning after January 1, 2023. As of January 1, 2023 we adopted ASU 2016-13. The standard did not materially affect our consolidated financial statements and note disclosures. In December 2023, the Financial Standards Accounting Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023- 09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures” to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on the financial statement disclosures. In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted. The adoption is not expected to have a material impact on the Company’s Consolidated Financial Statements or disclosures.

Inventory - Schedule of Inventory Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Inventory Valuation Reserves [Roll Forward]
Beginning balance	$ 120	$ 64
Additions	3,965	83
Write-offs	(81)	(27)
Ending balance	$ 4,004	$ 120

Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following as of December 31, 2023 and 2022 (in thousands):


	2023		2022

Accrued purchases	$	8,629	$	17,763
Accrued compensation	2,137		4,472
Accrued other	4,319		1,683

Total	$	15,085	$	23,918

Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 15,008	$ 10,360
Add: ASC 842 rental revenue	106,159	74,465
Total revenue	121,167	84,825
Compressors - sales
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	1,800	3,601
Flares - sales
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	87	239
Other (Parts/Rebuilds) - sales
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	7,034	4,728
Aftermarket services
Disaggregation of Revenue [Line Items]
Total revenue from contracts with customers	$ 6,087	$ 1,792

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

Credit Facility	12 Months Ended
Credit Facility	Dec. 31, 2023
Debt Disclosure [Abstract]
Credit Facility	Credit Facility On May 11, 2021, we entered into a five-year senior secured revolving credit agreement ("Credit Agreement") with Texas Capital Bank, National Association (the "Lender") with an initial commitment of $20 million and an accordion feature that would increase the maximum commitment to $30 million, subject to collateral availability. On December 12, 2022, we entered into a First Amendment to the Credit Agreement (the "First Amendment") to increase the maximum commitment to $30 million. We also have a right to request from the Lender, on an uncommitted basis, an increase of up to $30 million on the aggregate commitment; provided, however, the aggregate commitment amount is not permitted to exceed $50 million. The maturity date of the Credit Agreement was May 11, 2026. The obligations under the Credit Agreement were secured by a first priority lien on a variety of our assets, including inventory and accounts receivable as well as a variable number of our leased compressor equipment. At December 31, 2022, we had $25.0 million outstanding under the Credit Agreement with a weighted average interest rate of 7.32%. On February 28, 2023, we replaced our Credit Agreement by entering into a five-year senior secured revolving credit agreement (“Amended and Restated Credit Agreement”) with Texas Capital Bank, as administrative agent (the “Lender”), TCBI Securities, Inc., as joint lead arranger and sole book runner and Bank of America, N.A., as joint lead arranger, with an initial commitment of $175 million as of the closing date. Subject to collateral availability, we also have a right to request from the Lender, on an uncommitted basis, an increase of up to $125 million on the aggregate commitment; provided, however, the aggregate commitment amount is not permitted to exceed $300 million. The maturity date of the Amended and Restated Credit Agreement is February 28, 2028. In connection with the amendment we agreed to pay fees of $2.0 million (representing fees equal to 1.39% of the $145 million increase in the commitment) and reimburse the lenders for their expenses. The obligations under the Amended and Restated Credit Agreement are secured by a first priority lien on a variety of our assets, including inventory and accounts receivable as well as a variable number of our leased compressor equipment. On November 14, 2023, the Company entered into a First Amendment to the Amended and Restated Credit Agreement (the "Amendment") with the Lender and certain other lenders to (i) increase the lender commitment from $175 million to $225 million, and (ii) to add First-Citizens Bank & Trust Company as a new lender to the facility. In connection with the Amendment, we agreed to pay fees of $0.6 million (representing fees equal to 1.125% of the $50 million increase in the commitment) and reimburse the lenders for their expenses. As of December 31, 2023, we were in compliance with all financial covenants in our credit agreement. At December 31, 2023, we had $164.0 million outstanding under our Amended and Restated Credit Agreement at a weighted average interest rate of 9.40%. At December 31, 2023, we had approximately $56.0 million of availability under the Amended and Restated Credit Agreement. Borrowing Base. At any time before the maturity of the Amended and Restated Credit Agreement, we may draw, repay and re-borrow amounts available under the borrowing base up to the maximum aggregate availability discussed above. Generally, the borrowing base equals the sum of (a) 85% of eligible accounts receivable owed to the Company, plus (b) 50% of the eligible inventory, valued at the lower of cost or market value at such time, subject to a cap of this component not to exceed $2.5 million, plus (c) the lesser of (i) 95% of the net book value of the compressors that the Lender has determined are eligible for the extension of credit, valued at the lower of cost or market value with depreciation not to exceed 25 years, at such time and (ii) 80% of the net liquidation value percentage of the net book value of the eligible compressors that the Lender has determined are eligible for the extension of credit, valued at the lower of cost or market value with depreciation not to exceed 25 years, at such time, plus (d) 80% of the net book value, valued at the lower of cost (excluding any costs for capitalized interest or other noncash capitalized costs) or market of the eligible new compressor fleet, minus (e) any required availability reserves determined by the Lender in its sole discretion. The Lender may adjust the borrowing base components if material deviations in the collateral are discovered in future audits of the collateral. Interest and Fees. Under the terms of the Amended and Restated Credit Agreement, we have the option of selecting the applicable variable rate for each revolving loan, or portion thereof, of either (a) the Base Rate (as defined below) plus the Applicable Margin, or (b) in the case of a Term SOFR (“Secured Overnight Financing Rate”) Loan, the Adjusted Term SOFR rate plus the Applicable Margin. "Base Rate" means, for any day, a rate of interest per annum equal to the highest of (a) the prime rate for such day; (b) the sum of the federal funds rate for such day plus 0.50%; and (c) the Adjusted Term SOFR for such day plus 1.00%. The Applicable Margin is determined based upon the leverage ratio as set forth in the most recent compliance certificate received by the Lender for each fiscal quarter from time to time pursuant to the Amended and Restated Credit Agreement. Depending on the leverage ratio, the Applicable Margin can be 2.00% to 2.75% for Base Rate Loans (as defined in the Amended and Restated Credit Agreement) and 3% to 3.75% for Term SOFR Loans and for requested letters of credit. In addition, we are required to pay a monthly commitment fee on the daily average unused amount of the commitment while the Amended and Restated Credit Agreement is in effect at an annual rate equal to 0.50% of the unused commitment amount. Accrued interest is payable monthly on outstanding principal amounts and unused commitment fee, provided that accrued interest on Term SOFR Loans is payable at the end of each interest period, but in no event less frequently than quarterly. Covenants. The Amended and Restated Credit Agreement contains customary representations and warranties, as well as covenants which, among other things, condition or limit our ability to incur additional indebtedness and liens; enter into transactions with affiliates; make acquisitions in excess of certain amounts; pay dividends; redeem or repurchase capital stock or senior notes; make investments or loans; make negative pledges; consolidate, merge or effect asset sales; or change the nature of our business. In addition, we are subject to certain financial covenants in the Amended and Restated Credit Agreement that require us to maintain (i) a leverage ratio, as defined, lesser than or equal to 3.50 to 1.00 as of the last day of each fiscal quarter ending on or prior to December 31, 2024 and 3.25 to 1.00 for the fiscal quarter ending March 31, 2025 and for each fiscal quarter thereafter and (ii) a fixed charge coverage ratio greater than or equal to 1.25 to 1.00 as of the last day of each fiscal quarter. Events of Default and Acceleration. The Amended and Restated Credit Agreement contains customary events of default for credit facilities of this size and type, and includes, without limitation, payment defaults; defaults in performance of covenants or other agreements contained in the Amended and Restated Credit Agreement and the other transaction documents; inaccuracies in representations and warranties; certain defaults, termination events or similar events; certain defaults with respect to any other Company indebtedness in excess of $1.0 million; certain bankruptcy or insolvency events; the rendering of certain judgments in excess of $1.0 million; certain ERISA events; certain change in control events and the defectiveness of any liens. Obligations outstanding under the Amended and Restated Credit Agreement may be accelerated upon the occurrence of an event of default.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details