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Note 14 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Intangible Assets Disclosure [Text Block]

14. Intangible assets, net

The following table summarizes our intangible assets comprising of Customer Relationships & Contracts (“CR&C”), Trademarks, Technology and Software as of December 31, 2022 and 2021 (in thousands):

	December 31, 2022							December 31, 2021							December 31, 2022
			Accumulated							Accumulated					Weighted
	*Gross*		*impairment*					*Gross*		*impairment*					*average*
	*carrying*		*and*			*Net book*		*carrying*		*and*			*Net book*		*remaining*
	*amount*		*amortization*			*value*		*amount*		*amortization*			*value*		*life (years)*
CR&C	$	222,200	$	(118,221	)	$	103,979	$	222,200	$	(98,271	)	$	123,929		5.3
Trademarks		57,100		(32,921	)		24,179		57,100		(29,392	)		27,708		7.5
Technology		170,652		(71,191	)		99,461		159,458		(60,979	)		98,479		11.7
Software		11,556		(9,671	)		1,885		8,754		(5,817	)		2,937		0.8
Total	$	461,508	$	(232,004	)	$	229,504	$	447,512	$	(194,459	)	$	253,053		8.3

Amortization expense for intangible assets was $37.4 million, $28.1 million and $28.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.

During the first quarter of 2022, we acquired technology to bolster our well intervention and integrity product offering, resulting in an increase in intangible assets of $11.2 million which will be amortized over a five-year life. The impact of this asset acquisition is included in “Acquisition of technology” on the consolidated statements of cash flows.

The following table summarizes the intangible assets which were acquired pursuant to the Merger (in thousands):

	Acquired Fair Value		Weighted average life
CR&C	$	7,000		10.0
Trademarks		17,000		10.0
Technology		79,920		15.0
Software		871		1.0
Total	$	104,791		13.7

No impairment expense associated with our intangible assets was recognized during the years ended December 31, 2022 and 2021. We recognized impairment expense associated with our intangible assets of $60.4 million for the year ended December 31, 2020, which is included in “Impairment expense” in our consolidated statement of operations. Refer to Note 4 “Fair value measurements” for further details.

The following table summarizes our intangible asset impairment expense by operating segment for the year ended December 31, 2020 (in thousands):

2020:	*CR&C*		*Technology*		*Trademarks*		*Total*
NLA	$	10,262	$	20,616	$	11,437	$	42,315
ESSA		-		6,909		4,070		10,979
APAC		-		7,100		-		7,100
Total	$	10,262	$	34,625	$	15,507	$	60,394

Expected future intangible asset amortization as of December 31, 2022 is as follows (in thousands):

Years ending December 31,
2023	$	35,467
2024		33,582
2025		33,582
2026		33,582
2027		33,582
Thereafter		59,709
Total	$	229,504