WellTech is involved in disputes and litigation arising in the normal
course of business. In management's opinion, the resolution of such disputes and
litigation will not have a material adverse effect on the financial position or
results of operations of WellTech.
(9) Concentrations of Credit Risk
WellTech has a concentration of customers in the oil and gas industry.
Substantially all of WellTech's customers are major integrated oil companies,
major independent producers of oil and gas, and smaller independent producers.
This may affect WellTech's overall exposure to credit risk either positively or
negatively, inasmuch as its customers are affected by economic conditions in the
oil and gas industry, which has historically been cyclical. However, accounts
receivable are well diversified among many customers, and a significant portion
of the receivables are from major oil companies, which management believes
minimizes potential credit risk. Historically, credit losses have been
insignificant. Receivables are generally not collateralized, although WellTech
may generally secure a receivable at any time by filing a mechanics' and
materialmans' lien on the well serviced.
(10) Operations by Geographic Area
Substantially all of WellTech's operations are in the well servicing
segment. Information about WellTech's operations for the year ended December 31,
1994 by geographic area is shown below. During 1994, WellTech did not have any
significant operations or separately identifiable assets other than from the
United States and Russia. Prior to 1994, WellTech did not have significant
operations in geographic areas other than the United States.
Year Ended December 31, 1994
Total States Russia
Revenues $49,043 $43,013 $ 6,030
Operating Income (Loss) $( 1,256) $( 2,352) $ 1,096
Identifiable Assets $58,176 $57,614 $ 562