NCS Holdings

OFS- E&P companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in
unconventional oil and natural gas formations
Our primary offering is our fracturing systems products and services, which enable efficient pinpoint stimulation: the
process of individually stimulating each entry point into a formation targeted by an oil or natural gas well.
We own a 50% controlling interest in Repeat Precision, which we consolidate. Repeat Precision markets composite
frac plugs and related products directly to customers and provides high-quality machining services for NCS products.

Through implementing this strategy, including the investment in Repeat Precision and the acquisition of Spectrum
Tracer Services, LLC (“Spectrum”) in 2017, we have diversified our revenue base. In 2020, approximately 50% of our
revenue was derived from fracturing systems products and services, nearly 30% was derived from Repeat Precision
and approximately 10% was derived from each of our well construction products and tracer diagnostics services.

In addition, this diversification of our revenue base has, in part, contributed to a reduction in the percentage of
revenue derived from the Canadian market from 71% in 2016 to 45% in 2020.

Shale gas areas are often known as resource plays[27] (as opposed to exploration plays). The geological
risk of not finding gas is low in resource plays, but the potential profits per successful well are usually also
lower.
• Reverse Stock Split On December 1, 2020, we implemented a reverse stock split of our shares
of common stock in a ratio of 1-for-20, and no change in the par value of the common and
preferred stock.
• primarily consists of oil and natural gas producers in North America and certain international
markets as well as oilfield service companies. For the years ended December 31, 2020, 2019
and 2018, we had over 200, 325 and 310 customers, respectively. Our top five customers
accounted for approximately 31%, 22% and 24% of our revenue for the years ended December
31, 2020, 2019 and 2018, respectively. Crescent Point Energy (“Crescent Point”) accounted for
10% of our revenue during the year ended December 31, 2020. No other customer accounted
for more than 10% of our revenue during 2020. No customer represented more than 10% of
our revenue for the years ended December 31, 2019 and 2018. Although we believe we have a
broad customer base and wide geographic coverage of operations, the loss of one or more of
our significant customers could have a material adverse effect on our results of operations.
• Seasonality-Canada- 1ST Quarter highest,2nd lowest, 3rd/4th medium
• Our major competitors for our completion products and services include Baker Hughes
Company (“Baker Hughes”), Core Laboratories N.V., DMC Global Inc., Forum Energy
Technologies, Inc., Halliburton Company, Innovex Downhole Solutions, Nine Energy Service,
Inc., NOV Inc., Oil States International, Inc., Packers Plus Energy Services, Schlumberger
Limited, SchoellerBleckmann Oilfield Equipment AG and Weatherford International public
limited company as well as a number of smaller or regional competitors.
• Product sales represented 70%, 71% and 69% of our revenues for the years ended
December 31, 2020, 2019 and 2018, respectively. Most of our sales are on a just-in-time
basis, as specified in individual purchase orders, with a fixed price for our products. We
occasionally supply our customers with large orders that may be filled on negotiated terms.
Services represented 30%, 29% and 31% of our revenues for the years ended December 31,
2020, 2019 and 2018, respectively. Services include our tool charges and associated
services related to our fracturing systems and tracer diagnostics services (which are
classified together as “services” in our financial results)