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LEASES | 6 Months Ended
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Jun. 30, 2025
Leases [Abstract] |
LEASES | # NOTE 13 – LEASES The Company leases various facilities and vehicles under noncancelable operating lease agreements. The remaining lease terms for our leases range from 1 month to 14 years. These leases often include options to extend the term of the lease which may be for periods of up to 5 years. When it is reasonably certain that the option will be exercised, the impact of the renewal term is included in the lease term for purposes of determining total future lease payments and measuring the ROU asset and lease liability. We apply the short-term lease policy election, which allows us to exclude from recognition leases with an original term of 12 months or less. We have not entered into any finance leases as of June 30, 2025. For the three and six months ended June 30, 2025, the components of the Company’s lease expense were as follows (in thousands):
|  | Three months ended June 30, 2025 |  |  | Three months ended June 30, 2024 |
Operating lease cost |  | $ | 1,737 |  |  | $ | 1,588 |
Short-term lease cost |  |  | 31 |  |  |  | 35 |
Variable lease cost |  |  | 110 |  |  |  | 74 |
Total Lease Cost |  | $ | 1,879 |  |  | $ | 1,697 |
|  | Six months ended June 30, 2025 |  |  | Six months ended June 30, 2024 |
Operating lease cost |  | $ | 3,476 |  |  | $ | 3,041 |
Short-term lease cost |  |  | 63 |  |  |  | 70 |
Variable lease cost |  |  | 219 |  |  |  | 162 |
Total Lease Cost |  | $ | 3,758 |  |  | $ | 3,273 |
Supplemental balance sheet information related to leases was as follows (in thousands):
|  | Six months ended June 30, 2025 |  |  | Six months ended June 30, 2024 |
Weighted-average remaining lease term (in years) |  |  | 6.89 |  |  |  | 7.19 |
Weighted average discount rate |  |  | 7.95 | % |  |  | 7.35 | %
Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the unaudited condensed consolidated balance sheet as of June 30, 2025 were as follows (in thousands):
2025 |  | $ | 2,916 |
2026 |  |  | 5,499 |
2027 |  |  | 4,417 |
2028 |  |  | 3,695 |
2029 |  |  | 3,077 |
Thereafter |  |  | 10,773 |
Total lease payments |  | $ | 30,378 |
Less: imputed interest |  |  | (7,165 | )
Present value of lease liabilities |  | $ | 23,213 |
The Company leases downhole drilling tools to companies in the oil and natural gas industry. Such leases are accounted for in accordance with ASC 842. For the three and six months ended June 30, 2025, tool rental revenue was approximately $32.8 million and $67.3 million, respectively. For the three and six months ended June 30, 2024, tool rental revenue was approximately $28.3 million and $58.3 million, respectively. Our lease contract periods are short-term in nature and are typically daily, monthly, per well, or footage based. Due to the short term nature of the contracts, no maturity table is presented.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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