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Goodwill and Intangible Assets, Net
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net

Note 8 – Goodwill and Intangible Assets, Net

Goodwill

The following table summarizes the activity in goodwill balance for periods presented below (in thousands):

 

 

 

Natural Gas Technologies

 

 

Production Solutions

 

 

Total

 

 

 

Goodwill

 

 

Accumulated
Impairment
Losses

 

 

Goodwill, net of
Accumulated
Impairment

 

 

Goodwill

 

 

Accumulated
Impairment
Losses

 

 

Goodwill, net of
Accumulated
Impairment

 

 

Goodwill, net of
Accumulated
Impairment

 

Balance as of December 31, 2023

 

$

 

—

 

 

$

 

—

 

 

$

 

—

 

 

$

 

7,596

 

 

$

 

(5,372

)

 

$

 

2,224

 

 

$

 

2,224

 

Additions to goodwill

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Goodwill impairment

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Balance as of March 31, 2024

 

$

 

—

 

 

$

 

—

 

 

$

 

—

 

 

$

 

7,596

 

 

$

 

(5,372

)

 

$

 

2,224

 

 

$

 

2,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2024

 

$

 

66,325

 

 

$

 

—

 

 

$

 

66,325

 

 

$

 

188,739

 

 

$

 

(5,372

)

 

$

 

183,367

 

 

$

 

249,692

 

Additions to goodwill

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Goodwill impairment

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Balance as of March 31, 2025

 

$

 

66,325

 

 

$

 

—

 

 

$

 

66,325

 

 

$

 

196,335

 

 

$

 

(10,744

)

 

$

 

183,367

 

 

$

 

249,692

 

Goodwill is not subject to amortization but is tested for impairment on an annual basis or more frequently if indicators arise. No events or changes in circumstances were present as of March 31, 2025, which indicated the fair value of any of the Company's reporting unit was below the respective carrying amount. As such, no goodwill impairment expense was recorded during the three months ended March 31, 2025.

Intangible Assets

Intangible assets, net, consist of the following as of March 31, 2025 and December 31, 2024 (in thousands):

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Value

 

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net
Carrying
Value

 

Developed technology

 

$

 

97,350

 

 

 

 

(11,062

)

 

$

 

86,288

 

 

$

 

97,350

 

 

$

 

(9,221

)

 

$

 

88,129

 

Trade name

 

 

 

61,010

 

 

 

 

(7,370

)

 

 

 

53,640

 

 

 

 

61,010

 

 

 

 

(5,845

)

 

 

 

55,165

 

Customer relationships

 

 

 

168,340

 

 

 

 

(15,514

)

 

 

 

152,826

 

 

 

 

168,340

 

 

 

 

(11,350

)

 

 

 

156,990

 

Non-compete agreement

 

 

 

2,048

 

 

 

 

(285

)

 

 

 

1,763

 

 

 

 

2,048

 

 

 

 

—

 

 

 

 

2,048

 

Patent

 

 

 

212

 

 

 

 

(5

)

 

 

 

207

 

 

 

 

193

 

 

 

 

(3

)

 

 

 

190

 

Total

 

$

 

328,960

 

 

$

 

(34,236

)

 

$

 

294,724

 

 

$

 

328,941

 

 

$

 

(26,419

)

 

$

 

302,522

 

Amortization expense totaled $7.9 million and $1.0 million for the three months ended March 31, 2025 and 2024, respectively.

The Company reviews finite-lived identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. If such indicators are present, the Company performs a recoverability test by comparing the estimated future undiscounted net cash flows expected to be generated by the asset group to its carrying amount. If the carrying amount of the asset group exceeds the estimated future undiscounted net cash flows, an impairment loss is recognized in the period in which the impairment occurs and represents the excess of the asset carrying value over its estimated fair value. During the three months ended March 31, 2025 and 2024, the Company did not record any impairment associated with its finite-lived identifiable intangible assets.

As of March 31, 2025, the weighted average remaining useful lives for the Company's intangible assets are as follows:

Developed technology

 

9.5 Years

Trade name

 

8.8 Years

Customer relationships

 

9.3 Years

Non-compete agreement

 

2.6 Years

Patent

 

19.3 Years

Amortization expense is classified in operating expenses on the accompanying consolidated statements of operations. Estimated future amortization expense as of March 31, 2025 for each of the next five years and thereafter is as follows (in thousands):

2025 (remaining 9 months)

$

 

23,441

 

2026

 

 

31,255

 

2027

 

 

31,141

 

2028

 

 

30,375

 

2029

 

 

29,420

 

Thereafter

 

 

149,092

 

$

 

294,724