8. GOODWILL, INTANGIBLE, AND OTHER ASSETS

Goodwill

Changes in the carrying amount of goodwill of the Company between December 31, 2024, and December 31, 2025, are as follows (in US$ thousands):

 SCHEDULE OF CHANGES IN CARRYING AMOUNT OF GOODWILL

Intangible assets subject to amortization, net

The following is the weighted average amortization period for intangible assets of the Company subject to amortization (in years):

 SCHEDULE OF WEIGHTED AVERAGE AMORTIZATION PERIOD FOR INTANGIBLE ASSETS

The details of our intangible assets subject to amortization are set forth below (in US$ thousands):

 SCHEDULE OF INTANGIBLE ASSETS SUBJECT TO AMORTIZATION

The aggregate amortization expense remaining for each of the five years subsequent to December 31, 2025, is $16.8 million for 2026, $15.4 million for 2027, $8.1 million for 2028, $2.9 million for 2029, and $2.9 million for 2030.

Equity method investments

On July 1, 2022, NESR acquired a minority stake in WDVGE, a premier Reservoir Characterization and G&G laboratory and consulting business.

The following table presents our investments at the dates indicated (in US$ thousands):

 SCHEDULE OF INVESTMENTS

During the years ended December 31, 2025, 2024 and 2023, NESR recorded other than temporary impairments of $3.0 million, $3.7 million, and $7.0 million, respectively, in its investment in WDVGE. During the years ended December 31, 2024, and 2023, the Company determined that its investment in WDVGE was not fully recoverable on account of slower than anticipated customer and revenue growth as compared to NESR’s original expectations. NESR’s investment in WDVGE was fair valued using a discounted cash flow approach within a scenario analysis.

The following table presents earnings (loss) from equity investments for the periods indicated (in US$ thousands):

 SCHEDULE OF EARNINGS (LOSS) FROM EQUITY INVESTMENTS

Summarized combined financial information for our equity method investments is as follows for the periods indicated (amounts represent 100% of investee financial information in US$ thousands):

 SCHEDULE OF FINANCIAL INFORMATION FOR OUR EQUITY METHOD INVESTMENTS

Other equity investments

To date, the Company has not incurred significant expenditures on research and development activities, other than through strategic investments and partnerships intended to expand its NESR Environmental and Decarbonization Applications (“NEDA”), a service line within our Production Services segment, and Drilling & Evaluation portfolios. These investments are individually insignificant but in the aggregate totaled $25.2 million and $24.3 million as of December 31, 2025, and December 31, 2024, respectively.

The Company accounts for these investments under the measurement alternative in Accounting Standards Codification (“ASC”) 321, Investments – Equity Securities, and records them at cost, net of impairment, as none of the investments have readily determinable fair values. In accordance with ASC 321, the Company monitors these investments for indicators of impairment, including recent transactions involving the investees, liquidity position, operating performance, and other qualitative and quantitative factors.

For the year ended December 31, 2025, the Company recorded an impairment charge of $5.1 million related to one investment that is expected to exhaust its remaining cash during 2026 and currently has limited ability to recapitalize. In addition, the Company identified two investments with heightened risk of impairment, with potential exposure of up to $7.1 million, for the year ending December 31, 2026, due to stressed liquidity conditions in one instance and uncertainty surrounding the ultimate realization of earn-out consideration in another instance. No impairments or other downward adjustments were recorded for the years ended December 31, 2024 and December 31, 2023.

Subsequent to December 31, 2025, the Company contributed an additional $1.0 million to one of its investments, increasing the carrying value of the overall portfolio to $26.2 million.