Prepaid expenses and other current assets consisted of the following as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Sales tax receivable	$	3,552	$	8,445
Other receivables		1,140		234
Income tax receivable		577		1,423
Prepaid insurance		959		257
Current deferred contract costs		896		1,405
Current contract asset		—		1,903
Other		6,067		4,642
	$	13,191	$	18,309

Assets held for sale consisted of the following as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Trade receivables, net	$	—	$	7,306
Materials and supplies		—		13,510
Prepaid expenses and other current assets		—		3,768
Property & equipment, net		—		87,441
Noncurrent deferred contract costs		—		4,196
Operating lease ROU asset		—		197
Other noncurrent assets		—		699
	$	—	$	117,117

Property and equipment, net, consisted of the following as of the dates indicated:


	June 30, 2022			December 31, 2021
(unaudited, in thousands)
Drilling equipment	$	624,419		$	626,546
Assets under construction		1,957			148
Office and technology equipment		18,405			18,405
Leasehold improvements		523			523
		645,304			645,622
Accumulated depreciation		(287,314	)		(266,018	)
Property and equipment, net	$	357,990		$	379,604

Other assets consisted of the following as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Noncurrent restricted cash	$	15,616	$	15,644
Deferred certification costs		3,976		5,199
Noncurrent deferred contract costs		5,021		6,832
Deferred income taxes		1,473		1,776
Other noncurrent assets		6,463		2,392
	$	32,549	$	31,843

Other current liabilities consisted of the following as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Interest	$	4,136	$	4,136
Compensation (1)		5,147		7,040
2016 MIP - Dividend equivalent (2)		5,277		—
Income taxes payable		3,755		5,589
Current deferred revenue		31,557		12,311
Current portion of operating lease liabilities		1,401		1,710
Other		2,546		747
	$	53,819	$	31,533

(1) Includes $2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 Amended MIP. The final payout of this cash award was made in June 2022.

(2) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award.

Liabilities held for sale consisted of the following as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Accounts payable	$	—	$	4,140
Compensation		—		464
Income taxes payable		—		716
Current portion of operating lease liabilities		—		103
Deferred income taxes		—		1,190
Noncurrent operating lease liabilities		—		93
Other		—		14
	$	—	$	6,720

Other Long-term liabilities consisted of the following as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
2016 MIP - Dividend equivalent (1)	$	3,521	$	8,735
Noncurrent deferred revenue		1,397		1,893
Noncurrent operating lease liabilities		333		969
Other non-current liabilities		4,707		5,415
	$	9,958	$	17,012

(1) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated:


	June 30, 2022		December 31, 2021
(unaudited, in thousands)
Cash and cash equivalents	$	227,328	$	73,343
Restricted cash		3,323		1,621
Restricted cash included within Other Assets		15,616		15,644
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$	246,267	$	90,608

Restricted cash represents cash held by banks as collateralizing letters of credit.

In conjunction with the establishment of ADVantage, the Company entered into a series of agreements with ADES, including: (i) a Secondment Agreement; (ii) a Manpower Agreement; and (iii) a Supply Services Agreement. Pursuant to these agreements, the Company, largely through its seconded employees, has agreed to provide various services to ADES and ADES has agreed in turn to provide various services to ADVantage. As of June 30, 2022 and December 31, 2021, accounts receivable from ADES totaled approximately $4.3 million and $0.5 million, respectively, included in “Trade receivables” on the Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, accounts payable to ADES totaled approximately $7.3 million and $2.1 million, respectively, included in “Accounts payable,” on the Consolidated Balance Sheets.

On December 6, 2021, we entered into the EDC Purchase Agreement to sell to ADES Arabia all of the issued and outstanding equity of EDC, which owns the Emerald Driller, Sapphire Driller and Aquamarine Driller. The transactions contemplated by the EDC Purchase Agreement closed on the EDC Closing Date. Simultaneously with the EDC Sale, certain subsidiaries of the Company and ADES entered into the EDC Support Services Agreements, pursuant to which a subsidiary of the Company agreed to provide, in exchange for customary fees and reimbursements, support services to EDC with respect to the Emerald Driller, Sapphire Driller and Aquamarine Driller for a three-year term. For additional information regarding the EDC Purchase Agreement and the transactions contemplated thereunder, please see “Share Purchase Agreement to Sell EDC to ADES Arabia Holding” under “Note 1. Organization and Recent Events” of these Notes to Unaudited Financial Statements.

In addition, the Company and ADES also entered into an agreement on December 6, 2021 (the “Collaboration Agreement”) to pursue a global strategic alliance in order to leverage both the EDC Support Services Agreements and ADVantage, the parties’ existing joint venture in Egypt. Pursuant to the Collaboration Agreement, the parties agreed to collaborate on exploring future commercial and operational opportunities.

VHI previously entered into Framework Agreements and related Management and Marketing Agreements, as amended, on March 16, 2021 with Aquadrill, pursuant to which certain subsidiaries of VHI agreed to provide operating, management and marketing services to Aquadrill and its subsidiaries (the “Aquadrill Entities”). Fees earned as a result of these agreements are included in “Management fees” and “Reimbursable and other” in our Consolidated Statement of Operations within the Managed Services segment as reported in “Note 10. Business Segment and Significant Customer Information.” Two of our shareholders that own a significant portion of our Ordinary shares also own an interest in Aquadrill.

We did not have any related party transactions that were not conducted in the ordinary course of business as of June 30, 2022.