ASSET PURCHASE

12 Months Ended

Dec. 31, 2019

Asset Purchase Agreement [Abstract]

ASSET PURCHASE

NOTE 4.  ASSET PURCHASE

In June 2018, we entered into a stalking horse asset purchase agreement (the “Asset Purchase Agreement”) with Geokinetics, Inc. (“GEOK”), pursuant to which we agreed to purchase certain assets of GEOK (the “Purchased Assets”) and, to a lesser extent, acquire certain liabilities related thereto in a transaction to be effected in GEOK’s bankruptcy proceeding under Chapter 11 of Title 11 of the United States Bankruptcy Code.  

In July 2018, the United States Bankruptcy Court for the Southern District of Texas approved the Asset Purchase Agreement, and we completed the acquisition of the Purchased Assets for $18.4 million.  In connection with the closing, we entered into a new acquisition purchase money facility (the “PMF”) of approximately $23.4 million in aggregate principal amount of borrowings, secured by the Purchased Assets, to fund the acquisition and pay related transaction costs.  Borrowings made under the PMF bore interest at a rate of 10.25% per annum.  The PMF was repaid in full in September 2018.    

The acquisition was accounted for as an asset acquisition, which requires that the total purchase price, including transaction costs, be allocated to the assets acquired and the liabilities assumed based on their relative fair values.

The purchase price and the fair values of the acquired assets and assumed liabilities are as follows:

Purchase price	$	18,411
Transaction advisory fees and other acquisition costs		3,338
Total purchase price	$	21,749
Accounts receivable	$	8,589
Property and equipment		12,484
Intangible assets, net		3,642
Accrued liabilities		(110	)
Deferred revenue		(2,856	)
Net assets acquired	$	21,749