TAX CREDITS RECEIVABLE, NET

9 Months Ended

Sep. 30, 2020

Tax Credit Receivable Net [Abstract]

Tax Credits Receivable, Net

NOTE 2. TAX CREDITS RECEIVABLE, NET

In January 2020, we and Alaskan Seismic Ventures, LLC (“ASV”) sold certain seismic data and related assets for a purchase price payable as follows: (i) $15.0 million paid in cash on the closing date and (ii) earnout payments in an amount of up to $5.0 million to be paid based on the licensing fees related to the licensing of certain seismic data following the closing date in an amount in excess of $15.0 million of licensing fees.  As required by the terms of the sale, we notified the Alaska Department of Revenue (the “DOR”) that we were withdrawing our application for $9.4 million of tax credits, net relating to the seismic data sold.  We and ASV also entered into an agreement that provides that we will receive all the proceeds paid or payable pursuant to the sale, which proceeds will be credited by us towards outstanding amounts owed to us by ASV.  

Changes in the carrying value of our tax credits receivable, net are as follows for the nine months ended September 30:

	2020			2019
Balance at beginning of year	$	12,104		$	13,198
Returned to State of Alaska		(9,396	)		—
Reserve for potential monetization		(2,708	)		—
Balance at end of period	$	—		$	13,198

In the three months ended September 30, 2020, we increased the allowance on the remaining tax credits receivable balance by $2.7 million in order to fully reserve the receivable, as we believe that the monetization of the tax credits is no longer probable.  As of September 30, 2020 and December 31, 2019, the tax credits receivable are net of an allowance of $30.4 million and $53.0 million, respectively.