Note 9 - Details of Selected Balance Sheet Accounts

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

(9) Details of Selected Balance Sheet Accounts

Accounts Receivable

A summary of accounts receivable follows (in thousands):

	March 31,			December 31,
	2021			2020
Accounts receivable, principally trade	$	11,186		$	10,458
Less: allowance for expected credit losses		(2,729	)		(2,413	)
Accounts receivable, net	$	8,457		$	8,045

Inventories

A summary of inventories follows (in thousands):

	March 31,			December 31,
	2021			2020
Raw materials and purchased subassemblies	$	18,215		$	18,638
Work-in-process		1,363			1,218
Finished goods		4,372			4,417
Less: reserve for excess and obsolete inventories		(12,919	)		(13,006	)
Inventories, net	$	11,031		$	11,267

The Company's inventories relate to its Operations Optimization segment. No additional provision for excess and obsolete inventories was recognized during the three months ended March 31, 2021 and 2020.  

Property, Plant and Equipment

	March 31,			December 31,
	2021			2020
Buildings	$	15,675		$	15,675
Machinery and equipment		120,979			120,949
Seismic rental equipment		2,030			2,003
Furniture and fixtures		3,172			3,172
Other (a)		30,666			30,287
Total		172,522			172,086
Less: accumulated depreciation		(126,906	)		(126,022	)
Less: impairment of long-lived assets		(36,553	)		(36,553	)
Property, plant, equipment and seismic rental equipment, net	$	9,063		$	9,511

^(a) Consists primarily of cable-based ocean bottom acquisition technologies that were fully impaired.

Total depreciation expense, including amortization of assets recorded under equipment finance leases, for the three months ended March 31, 2021 and 2020 was $0.9 million and $0.8 million, respectively. No impairment charge was recognized during the three months ended March 31, 2021 and 2020.

Multi-client Data Library

	March 31,			December 31,
	2021			2020
Gross costs of multi-client data creation	$	1,024,429		$	1,021,758
Less: accumulated amortization		(841,985	)		(838,700	)
Less: impairments to multi-client data library		(132,144	)		(132,144	)
Multi-client data library, net	$	50,300		$	50,914

Total amortization expense for the three months ended March 31, 2021 and 2020 was $3.3 million and $8.0 million, respectively. The decrease in total amortization expense is primarily due to higher revenue-based amortization of the multi-client data library in the prior quarter related to the increased sales of the Company's 2D global data library. For the three months ended March 31, 2021 and 2020, the Company recognized an impairment to multi-client data library of zero and $1.2 million, respectively, for programs with capitalized costs exceeding the remaining sales forecasts. 

Goodwill

	E&P Technology & Services		Optimization Software & Services			Total
Balance at January 1, 2020	$	2,943	$	20,642		$	23,585
Impairment of goodwill		—		(4,150	)		(4,150	)
Impact of foreign currency translation adjustments		—		130			130
Balance at December 31, 2020		2,943		16,622			19,565
Impact of foreign currency translation adjustments		—		208			208
Balance at March 31, 2021	$	2,943	$	16,830		$	19,773

The Company, following the qualitative consideration, assessed the relevant events and circumstances in evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. During the first quarter 2020, markets for oil and gas, as well as other commodities and equities, experienced significant volatility and price declines amid concerns over the economic effects of the COVID-19 pandemic. As a result, the Company’s stock price experienced a significant decline. Based on these facts, the Company performed a goodwill impairment test at March 31, 2020 to determine if it was more likely than not that the fair value of certain reporting units was less than their carrying value.

The Company, following the quantitative consideration, compared the fair value of each reporting unit against its carrying value. If the carrying value of the reporting unit exceeds the fair value, an impairment loss shall be recognized in an amount equal to that excess. The fair value of each reporting unit at March 31, 2020 was determined using a discounted cash flow model. The Company utilized a discount rate of 19% for both reporting units. The Company used reasonable assumptions based on historical data supplemented by anticipated market conditions and estimated growth rates. However, given the uncertainty in determining the assumptions underlying a discounted cash flow analysis, actual results may differ which could result in additional impairment charges in the future.

As a result of this assessment, the Company recorded an impairment charge of $4.2 million for the three months ended March 31, 2020 related to its Optimization Software & Services reporting unit, which is included within the Operations Optimization segment. No impairment charge was recognized for the Optimization Software & Services reporting unit for the three months ended March 31, 2021. No impairment charge was recognized for the E&P Technology Services reporting unit for the three months ended March 31, 2021 and 2020.