In this Quarterly Report on Form 10-Q, “we,” “our,” “us,” “Expro,” the "combined company" and the “Company” refer to Expro Group Holdings N.V. and its consolidated subsidiaries, the successor reporting entity following the consummation of the Merger (as defined below). The terms “Frank's,” "FINV" or the “Predecessor Registrant” refer to Frank's International N.V. and its consolidated subsidiaries, the predecessor reporting entity. References to “Legacy Expro” refer to Expro Group Holdings International Limited, the entity acquired by the Company in the Merger.

Item 1. Financial Statements

EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

	*September 30,*			*December 31,*
	*2021*			*2020*
Assets	*(Unaudited)*
Current assets:
Cash and cash equivalents	$	202,997		$	209,575
Restricted cash		1,742			1,672
Short-term investments		1,882			2,252
Accounts receivables, net		130,585			110,607
Inventories, net		91,776			81,718
Assets held for sale		7,998			2,939
Other current assets		6,554			7,744
Total current assets		443,534			416,507
Property, plant and equipment, net		228,994			272,707
Goodwill		42,785			42,785
Intangible assets, net		8,756			7,897
Deferred tax assets, net		15,008			18,030
Operating lease right-of-use assets		26,646			28,116
Other assets		21,409			30,859
Total assets	$	787,132		$	816,901

Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	114,962		$	99,986
Current portion of operating lease liabilities		8,215			7,832
Deferred revenue		89			586
Other current liabilities		0			1,674
Total current liabilities		123,266			110,078
Deferred tax liabilities		0			1,548
Non-current operating lease liabilities		19,303			21,208
Other non-current liabilities		23,123			22,818
Total liabilities		165,692			155,652

Commitments and contingencies (Note 14)

Stockholders’ equity:
Common stock, €0.06 nominal value, 200,000,000 shares authorized, 38,575,948 and 38,134,383 shares issued and 38,066,216 and 37,720,760 shares outstanding		2,900			2,866
Additional paid-in capital		1,098,236			1,087,733
Accumulated deficit		(428,930	)		(377,346	)
Accumulated other comprehensive loss		(28,798	)		(31,966	)
Treasury stock (at cost), 509,732 and 413,623 shares		(21,968	)		(20,038	)
Total stockholders’ equity		621,440			661,249
Total liabilities and equity	$	787,132		$	816,901

FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
March 31, December 31,
2021 2020
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 191,339 $ 209,575
Restricted cash 1,656 1,672
Short-term investments 2,252 2,252
Accounts receivables, net 116,581 110,607
Inventories, net 94,738 81,718
Assets held for sale 3,681 2,939
Other current assets 8,416 7,744
Total current assets 418,663 416,507
Property, plant and equipment, net 255,401 272,707
Goodwill 42,785 42,785
Intangible assets, net 11,062 7,897
Deferred tax assets, net 16,482 18,030
Operating lease right-of-use assets 27,972 28,116
Other assets 30,907 30,859
Total assets $ 803,272 $ 816,901
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities $ 107,085 $ 99,986
Current portion of operating lease liabilities 8,066 7,832
Deferred revenue 640 586
Other current liabilities 960 1,674
Total current liabilities 116,751 110,078
Deferred tax liabilities 0 1,548
Non-current operating lease liabilities 20,766 21,208
Other non-current liabilities 25,257 22,818
Total liabilities 162,774 155,652
Commitments and contingencies (Note 14) 0 0
Stockholders’ equity:
Common stock, €0.01 par value, 798,096,000 shares authorized, 230,761,910 and 228,806,301 shares issued and 227,712,419 and 226,324,559 shares outstanding 2,890 2,866
Additional paid-in capital 1,091,028 1,087,733
Accumulated deficit (401,232) (377,346)
Accumulated other comprehensive loss (30,250) (31,966)
Treasury stock (at cost), 3,049,491 and 2,481,742 shares (21,938) (20,038)
Total stockholders’ equity 640,498 661,249
Total liabilities and equity $ 803,272 $ 816,901

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2021*			*2020*			*2021*			*2020*
Revenue:
Services	$	95,821		$	66,418		$	267,864		$	246,084
Products		19,120			17,999			49,729			47,926
Total revenue		114,941			84,417			317,593			294,010

Operating expenses:
Cost of revenue, exclusive of depreciation and amortization
Services		70,627			56,574			203,181			197,005
Products		15,489			13,733			40,811			36,007
General and administrative expenses		18,591			18,665			51,465			67,634
Depreciation and amortization		14,092			15,950			45,531			52,920
Goodwill impairment		0			0			0			57,146
Severance and other charges, net		2,958			3,549			13,733			29,436
Gain on disposal of assets		(72	)		(308	)		(1,733	)		(898	)
Operating loss		(6,744	)		(23,746	)		(35,395	)		(145,240	)

Other income (expense):
Other income, net		347			109			877			2,291
Interest income (expense), net		(167	)		(93	)		(555	)		618
Foreign currency gain (loss)		(4,548	)		2,334			(4,698	)		(5,865	)
Total other income (expense)		(4,368	)		2,350			(4,376	)		(2,956	)
Loss before income taxes		(11,112	)		(21,396	)		(39,771	)		(148,196	)
Income tax expense (benefit)		3,969			6,395			11,812			(182	)
Net loss	$	(15,081	)	$	(27,791	)	$	(51,583	)	$	(148,014	)

Loss per common share:
Basic and diluted	$	(0.40	)	$	(0.74	)	$	(1.36	)	$	(3.93	)

Weighted average common shares outstanding:
Basic and diluted		38,066			37,691			37,957			37,659

FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
2021 2020
Revenue:
Services $ 81,523 $ 105,083
Products 13,288 18,409
Total revenue 94,811 123,492
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization
Services 63,935 79,380
Products 10,914 13,988
General and administrative expenses 16,447 26,683
Depreciation and amortization 16,107 19,718
Goodwill impairment 0 57,146
Severance and other charges, net 7,376 20,725
(Gain) loss on disposal of assets (182) 60
Operating loss (19,786) (94,208)
Other income (expense):
Other income, net 125 2,026
Interest income (expense), net (287) 533
Foreign currency loss (2,868) (9,892)
Total other expense (3,030) (7,333)
Loss before income taxes (22,816) (101,541)
Income tax expense (benefit) 1,070 (15,563)
Net loss $ (23,886) $ (85,978)
Loss per common share:
Basic and diluted $ (0.11) $ (0.38)
Weighted average common shares outstanding:
Basic and diluted 227,019 225,505

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2021*			*2020*			*2021*			*2020*

Net loss	$	(15,081	)	$	(27,791	)	$	(51,583	)	$	(148,014	)
Other comprehensive income (loss):
Foreign currency translation adjustments		1,586			(547	)		3,169			(262	)
Total other comprehensive income (loss)		1,586			(547	)		3,169			(262	)
Comprehensive loss	$	(13,495	)	$	(28,338	)	$	(48,414	)	$	(148,276	)

FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2021 2020
Net loss $ (23,886) $ (85,978)
Other comprehensive income:
Foreign currency translation adjustments 1,716 424
Total other comprehensive income 1,716 424
Comprehensive loss $ (22,170) $ (85,554)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

	*Nine Months Ended September 30, 2020*
												*Accumulated*
						*Additional*						*Other*						*Total*
	*Common Stock*					*Paid-In*			*Accumulated*			*Comprehensive*			*Treasury*			*Stockholders’*
	*Shares*			*Value*		*Capital*			*Deficit*			*Income (Loss)*			*Stock*			*Equity*
Balances at December 31, 2019		37,585		$	2,846	$	1,075,809		$	(220,805	)	$	(30,298	)	$	(17,258	)	$	810,294
Cumulative effect of accounting change		0			0		0			(321	)		0			0			(321	)
Net loss		—			0		0			(85,978	)		0			0			(85,978	)
Foreign currency translation adjustments		—			0		0			0			424			0			424
Equity-based compensation expense		—			0		2,146			0			0			0			2,146
Common shares issued upon vesting of share-based awards		156			10		(10	)		0			0			0			0
Common shares issued for employee stock purchase plan		21			1		551			0			0			0			552
Treasury shares withheld		(49	)		0		0			0			0			(1,056	)		(1,056	)
Share repurchase program		(62	)		0		0			0			0			(1,017	)		(1,017	)
Balances at March 31, 2020		37,651		$	2,857	$	1,078,496		$	(307,104	)	$	(29,874	)	$	(19,331	)	$	725,044
Net loss		—			0		0			(34,245	)		0			0			(34,245	)
Foreign currency translation adjustments		—			0		0			0			(139	)		0			(139	)
Equity-based compensation expense		—			0		3,515			0			0			0			3,515
Common shares issued upon vesting of share-based awards		38			3		(3	)		0			0			0			0
Treasury shares withheld		(2	)		0		0			0			0			(31	)		(31	)
Share repurchase program		(32	)		0		0			0			0			(480	)		(480	)
Balances at June 30, 2020		37,655		$	2,860	$	1,082,008		$	(341,349	)	$	(30,013	)	$	(19,842	)	$	693,664
Net loss		—			0		0			(27,791	)		0			0			(27,791	)
Foreign currency translation adjustments		—			0		0			0			(547	)		0			(547	)
Equity-based compensation expense		—			0		2,773			0			0			0			2,773
Common shares issued upon vesting of share-based awards		9			1		(1	)		0			0			0			0
Common shares issued for employee stock purchase plan		35			2		380			0			0			0			382
Treasury shares withheld		(3	)		0		0			0			0			(38	)		(38	)
Balances at September 30, 2020		37,696		$	2,863	$	1,085,160		$	(369,140	)	$	(30,560	)	$	(19,880	)	$	668,443

FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)
Three Months Ended March 31, 2020
Accumulated
Additional Other Total
Common Stock Paid-In Accumulated Comprehensive Treasury Stockholders’
Shares Value Capital Deficit Income (Loss) Stock Equity
Balances at December 31, 2019 225,511 $ 2,846 $ 1,075,809 $ (220,805) $ (30,298) $ (17,258) $ 810,294
Cumulative effect of accounting change — — — (321) — — (321)
Net loss — — — (85,978) — — (85,978)
Foreign currency translation adjustments — — — — 424 — 424
Equity-based compensation expense — — 2,146 — — — 2,146
Common shares issued upon vesting of share-based awards 937 10 (10) — — — 0
Common shares issued for employee stock purchase plan 126 1 551 — — — 552
Treasury shares withheld (293) — — — — (1,056) (1,056)
Share repurchase program (373) — — — — (1,017) (1,017)
Balances at March 31, 2020 225,908 $ 2,857 $ 1,078,496 $ (307,104) $ (29,874) $ (19,331) $ 725,044
Three Months Ended March 31, 2021
Accumulated
Additional Other Total
Common Stock Paid-In Accumulated Comprehensive Treasury Stockholders’
Shares Value Capital Deficit Income (Loss) Stock Equity
Balances at December 31, 2020 226,325 $ 2,866 $ 1,087,733 $ (377,346) $ (31,966) $ (20,038) $ 661,249
Net loss — — — (23,886) — — (23,886)
Foreign currency translation adjustments — — — — 1,716 — 1,716
Equity-based compensation expense — — 2,872 — — — 2,872
Common shares issued upon vesting of share-based awards 1,717 21 (21) — — — 0
Common shares issued for employee stock purchase plan 238 3 444 — — — 447
Treasury shares withheld (568) — — — — (1,900) (1,900)
Balances at March 31, 2021 227,712 $ 2,890 $ 1,091,028 $ (401,232) $ (30,250) $ (21,938) $ 640,498

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2021 2020
Cash flows from operating activities
Net loss $ (23,886) $ (85,978)
Adjustments to reconcile net loss to cash from operating activities
Depreciation and amortization 16,107 19,718
Equity-based compensation expense 2,872 2,146
Goodwill impairment 0 57,146
Loss on asset impairments and retirements 307 20,187
Amortization of deferred financing costs 97 97
Deferred tax provision (benefit) 0 (1,690)
Provision for bad debts 209 1,280
(Gain) loss on disposal of assets (182) 60
Changes in fair value of investments (395) 2,411
Other 0 (381)
Changes in operating assets and liabilities
Accounts receivable (6,806) (16,129)
Inventories (12,463) (1,855)
Other current assets (675) (814)
Other assets 267 139
Accounts payable and accrued liabilities 9,192 (14,860)
Deferred revenue 53 67
Other non-current liabilities (178) (3,796)
Net cash used in operating activities (15,481) (22,252)
Cash flows from investing activities
Purchases of property, plant and equipment (2,346) (9,968)
Proceeds from sale of assets 2,073 70
Investment in intellectual property (1,608) 0
Other (75) (141)
Net cash used in investing activities (1,956) (10,039)
Cash flows from financing activities
Repayments of borrowings (712) 0
Treasury shares withheld for taxes (1,900) (1,056)
Treasury share repurchase 0 (1,017)
Proceeds from the issuance of ESPP shares 447 552
Net cash used in financing activities (2,165) (1,521)
Effect of exchange rate changes on cash 1,350 9,327
Net decrease in cash, cash equivalents and restricted cash (18,252) (24,485)
Cash, cash equivalents and restricted cash at beginning of period 211,247 196,740
Cash, cash equivalents and restricted cash at end of period $ 192,995 $ 172,255

	*Nine Months Ended September 30, 2021*
												*Accumulated*
						*Additional*						*Other*						*Total*
	*Common Stock*					*Paid-In*			*Accumulated*			*Comprehensive*			*Treasury*			*Stockholders’*
	*Shares*			*Value*		*Capital*			*Deficit*			*Income (Loss)*			*Stock*			*Equity*
Balances at December 31, 2020		37,721		$	2,866	$	1,087,733		$	(377,346	)	$	(31,966	)	$	(20,038	)	$	661,249
Net loss		—			0		0			(23,886	)		0			0			(23,886	)
Foreign currency translation adjustments		—			0		0			0			1,716			0			1,716
Equity-based compensation expense		—			0		2,872			0			0			0			2,872
Common shares issued upon vesting of share-based awards		286			21		(21	)		0			0			0			0
Common shares issued for employee stock purchase plan		39			3		444			0			0			0			447
Treasury shares withheld		(94	)		0		0			0			0			(1,900	)		(1,900	)
Balances at March 31, 2021		37,952		$	2,890	$	1,091,028		$	(401,232	)	$	(30,250	)	$	(21,938	)	$	640,498
Net loss		—			0		0			(12,617	)		0			0			(12,617	)
Foreign currency translation adjustments		—			0		0			0			(134	)		0			(134	)
Equity-based compensation expense		—			0		3,425			0			0			0			3,425
Common shares issued upon vesting of share-based awards		80			6		(6	)		0			0			0			0
Treasury shares withheld		(1	)		0		0			0			0			(30	)		(30	)
Balances at June 30, 2021		38,031		$	2,896	$	1,094,447		$	(413,849	)	$	(30,384	)	$	(21,968	)	$	631,142
Net loss		—			0		0			(15,081	)		0			0			(15,081	)
Foreign currency translation adjustments		—			0		0			0			1,586			0			1,586
Equity-based compensation expense		—			0		3,307			0			0			0			3,307
Common shares issued for employee stock purchase plan		35			4		482			0			0			0			486
Balances at September 30, 2021		38,066		$	2,900	$	1,098,236		$	(428,930	)	$	(28,798	)	$	(21,968	)	$	621,440

The accompanying notes are an integral part of these condensed consolidated financial statements.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	*For the Nine Months Ended*
	*September 30,*
	*2021*			*2020*
Cash flows from operating activities
Net loss	$	(51,583	)	$	(148,014	)
Adjustments to reconcile net loss to cash from operating activities
Depreciation and amortization		45,531			52,920
Equity-based compensation expense		9,604			8,434
Goodwill impairment		0			57,146
Loss on asset impairments and retirements		307			20,532
Amortization of deferred financing costs		291			291
Deferred tax provision (benefit)		1,474			(1,783	)
Provision for bad debts		852			980
Gain on disposal of assets		(1,733	)		(898	)
Changes in fair value of investments		(863	)		218
Other		0			(380	)
Changes in operating assets and liabilities
Accounts receivable		(23,149	)		63,307
Inventories		(7,969	)		(3,625	)
Other current assets		1,137			2,567
Other assets		756			667
Accounts payable and accrued liabilities		15,910			(22,486	)
Deferred revenue		(498	)		(513	)
Other non-current liabilities		(2,263	)		(4,048	)
Net cash provided by (used in) operating activities		(12,196	)		25,315

Cash flows from investing activities
Purchases of property, plant and equipment and intangibles		(7,613	)		(25,722	)
Proceeds from sale of assets		4,300			7,037
Proceeds from sale of investments		11,603			2,832
Purchase of investments		(1,294	)		0
Investment in intellectual property		(1,608	)		0
Other		(799	)		(356	)
Net cash provided by (used in) investing activities		4,589			(16,209	)

Cash flows from financing activities
Repayments of borrowings		(1,674	)		0
Treasury shares withheld for taxes		(1,930	)		(1,125	)
Treasury share repurchase		0			(1,498	)
Proceeds from the issuance of ESPP shares		933			934
Net cash used in financing activities		(2,671	)		(1,689	)
Effect of exchange rate changes on cash		3,770			3,267
Net increase (decrease) in cash, cash equivalents and restricted cash		(6,508	)		10,684
Cash, cash equivalents and restricted cash at beginning of period		211,247			196,740
Cash, cash equivalents and restricted cash at end of period	$	204,739		$	207,424

The accompanying notes are an integral part of these condensed consolidated financial statements.

~~FRANK’S INTERNATIONAL~~

Table of Contents

EXPRO GROUP HOLDINGS N.V.

(formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1—1—Basis of Presentation

~~Nature of Business~~

Merger

On March 10, 2021, Frank’s International N.V. (“FINV”~~, “Frank's”~~ or the “Company”, as the context requires), a limited liability company organized under the laws of the Netherlands, is a global provider of highly engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the oil and gas industry. FINV provides services and products to leading exploration and production companies in both offshore and onshore environments with a focus on complex and technically demanding wells.

~~The impact of the Coronavirus Disease 2019 (“COVID-19”~~“Frank’s”) pandemic and related economic, business and market disruptions is evolving rapidly, and its future effects are uncertain. The actual impact of these recent developments on our business will depend on many factors, many of which are beyond management's control and knowledge. It is therefore difficult for management to assess or predict with accuracy the broad future effects of this health crisis on the global economy, the energy industry or the Company. As additional information becomes available, events or circumstances change and strategic operational decisions are made by management, further adjustments may be required which could have a material adverse impact on the Company's consolidated financial position, results of operations and cash flows.

~~Pending Merger with Expro Group Holdings International Limited~~

~~On March 10, 2021, FINV~~ and New Eagle Holdings Limited, an exempted company limited by shares incorporated under the laws of the Cayman Islands and a direct wholly owned subsidiary of FINV (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Expro Group Holdings International Limited ("Legacy Expro"), an exempted company limited by shares incorporated under the laws of the Cayman Islands, ~~(“Expro”), pursuant to which~~providing for the merger of Legacy Expro ~~will merge~~ with and into Merger Sub in an all-stock transaction, with Merger Sub surviving the merger as a direct, wholly owned subsidiary of ~~FINV~~the Frank’s (the “Merger”). ~~If the~~The Merger ~~is completed, each ordinary share of Expro common stock, par value $0.01 per share (“Expro Ordinary Shares”), issued~~ closed on October 1, 2021, and outstanding immediately prior to the effective time of the Merger (the “Effective Time”), will be converted into the right to receive a number of shares of Frank’s common stock equal to 7.2720 (subject to certain adjustments under the Merger Agreement, the “Exchange Ratio”). Upon consummation of the transactions contemplated by the Merger Agreement and the Plan of Merger (as defined in the Merger Agreement) (collectively, the “Transactions”), FINV expects that its current shareholders will own approximately 35% of the Company after completion of the Merger and related transactions (such entity, the “Combined Company”), and current Expro shareholders will own approximately 65% of the Combined Company. Following the Merger, the name of FINV will be changed toFrank's was renamed “Expro Group Holdings N.V.” The ~~closing~~Merger will be accounted for using the acquisition method of accounting with Legacy Expro being identified as the ~~Transactions, which is expected to occur during~~accounting acquirer. As the ~~third~~Merger did not close until after the quarter ended September 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q reflect the financial position, results of ~~2021, is subject to~~operations and cash flows of Frank's, the ~~satisfaction or waiver of closing conditions, including, among others, the requisite approval of the shareholders of each of FINV and Expro pursuant~~Predecessor Registrant.

Unless otherwise indicated, references to the terms of“Frank’s” or the “Predecessor Registrant” refers to Frank’s International N.V., the predecessor reporting entity prior to the Merger, ~~Agreement.~~

~~The Merger Agreement contains termination rights for each of FINV~~references to “Legacy Expro” refer to Expro Group Holdings International Limited, the entity acquired by the Company, and references to the “combined company,” the “Company,” “we,” “our,” and “us” refer to Expro ~~including, among others, a termination right for each party if~~Group Holdings N.V., the successor reporting entity following the consummation of the ~~Merger does not occur on or before 5:00 p.m. Houston, Texas time on October 31, 2021 (the “End Date”), subject~~Merger.

Nature of Business

Prior to ~~certain exceptions; provided, that if as of the End Date, all of the conditions precedent to closing of the Transactions under~~ the Merger, ~~Agreement, other than certain specified conditions, have been satisfied,~~Frank’s was a global provider of highly engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the ~~End Date will automatically be extended~~oil and gas industry. Frank’s provided services and products to ~~January 31, 2022. Upon termination~~leading exploration and production companies in both offshore and onshore environments with a focus on complex and technically demanding wells.

Following completion of the Merger, ~~Agreement under specified circumstances, including, generally,~~ the ~~termination~~business conducted by Legacy Expro inbecame the ~~event~~majority of ~~FINV's entry into an agreement with respect to an alternative acquisition proposal, or a change of recommendation~~the business conducted by the ~~FINV board~~Company. Working for clients across the entire well life cycle, the Company is a leading provider of ~~supervisory directors~~energy services, offering cost-effective, innovative solutions and what the ~~board~~Company considers to be best-in-class safety and service quality. The Company’s extensive portfolio of ~~managing directors of FINV (collectively, the “Board”)~~capabilities spans well construction, well flow management, subsea well access, and well integrity and intervention. The Company provides services in ~~each case, prior to the time the FINV shareholder approval is obtained, FINV would be required to pay Expro a termination fee of $37.5 million. Upon termination~~many of the ~~Merger Agreement under specified circumstances, including, generally,~~world’s major offshore and onshore energy basins, with over 100 locations and operations in approximately 60 countries. Expro’s broad portfolio of products and services provides solutions to enhance production and improve recovery across the termination by FINV in the event of Expro’s entry into an agreement with respect to an alternative acquisition proposal, or a change of recommendation by Expro’s board of directors (the “Expro Board”), in each case, prior to the time the Expro shareholder approval is obtained, Expro would be required to pay FINV a termination fee of $71.5 million.

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

In connection with the Merger Agreement, FINV, Frank’s International C.V. (“FICV”) and Mosing Holdings, LLC (“Mosing Holdings”) entered into an Amended and Restated Tax Receivable Agreement (the “A&R TRA”). Pursuant to the A&R TRA, FINV, FICV and Mosing Holdings have agreed, among other things to settle the early termination payment obligation that would otherwise be owed to Mosing Holdings under the TRA as a result of the Merger by the payment by FINV to Mosing Holdings of (i) $15 million cash at the closing of the Transactions and (ii) certain other contingent payments in the future in the event the Combined Company realizes cash tax savingswell lifecycle, from tax attributes covered under the TRA during the ten year period following the Closing Date in excess of $18,057,000, as more fully described in the A&R TRA. The terms of the A&R TRA are conditioned upon and subject to the closing of the Transactions and the payment to Mosing Holdings of the $15 million cash payment at the closing of the Transactions. If such conditions do not occur, the A&R TRA will be terminated and will be null and void and the TRA will remain in effect in accordance with its terms.

exploration through abandonment.

Basis of Presentation

The condensed consolidated financial statements of FINV for the three and nine months ended ~~March 31,~~September 30, 2021 and 2020 include the activities of FINV, ~~FICV,~~Frank's International C.V. ("FICV"), Blackhawk Group Holdings, LLC (“Blackhawk”) and their wholly owned subsidiaries (either individually or together, as context requires, "Frank's" or "FINV") prior to the ~~“Company,” “we,” “us” or “our”).~~Merger. All intercompany accounts and transactions have been eliminated for purposes of preparing these condensed consolidated financial statements.

~~Our~~

The accompanying condensed consolidated financial statements have not been audited by ~~our~~Frank's independent registered public accounting firm. The consolidated balance sheet at December 31,2020, is derived from audited financial statements. However, certain information and footnote disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with ~~our~~the audited consolidated financial statements and notes thereto for the year ended December 31,2020, which are included in ~~our~~Frank's most recent Annual Report on Form ~~10-K~~10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021 (“(“Annual Report”). In the opinion of management, these condensed consolidated financial statements, which have been prepared pursuant to the rules of the SEC and GAAP for interim financial reporting, reflect all adjustments, which consisted only of normal recurring adjustments that were necessary for a fair statement of the interim periods presented. The results of operations for interim periods are not necessarily indicative of those for a full year.

Additionally, operating results for the three and nine months ended September 30, 2021 reflect the results of operations of Frank’s prior to the Merger and are therefore not necessarily indicative of the results that may be expected for any other interim period or for the fiscal year ending December 31, 2021.

Further, on September 30, 2021, Frank’s board of directors (the “Prior Board”) unanimously approved a 1-for-6 reverse stock split of Frank’s common stock, which was effected on October 1, 2021. All of the outstanding Company Common Stock (as defined below) share numbers, nominal value, share prices and per share amounts in these condensed consolidated financial statements have been retroactively adjusted to reflect a 1-for-6 reverse stock split for all periods presented. Refer to Note 17—Subsequent Events for further information.

The condensed consolidated financial statements have been prepared on a historical cost basis using the United States dollar as the reporting currency. ~~Our~~Frank's functional currency is primarily the United States dollar.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Reclassifications

Certain prior-period amounts have been reclassified to conform to the current period’s presentation. These reclassifications had no impact on ~~our~~Frank's operating income (loss), net income (loss), working capital, cash flows or total equity previously reported.

Recent Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) generally in the form of accounting standards updates (“ASUs”) to the FASB’s Accounting Standards Codification.

We consider the applicability and impact of all accounting pronouncements. ASUs not listed below were assessed and were either determined to be not applicable or are expected to have immaterial impact on ~~our~~Frank's consolidated financial position, results of operations and cash flows.

In June 2016, the FASB issued new accounting guidance for credit losses on financial instruments. The guidance includes the replacement of the “incurred loss” approach for recognizing credit losses on financial assets, including trade receivables, with a methodology that reflects expected credit losses, which considers historical and

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

current information as well as reasonable and supportable forecasts. WeFrank's adopted the guidance on January 1, 2020, and the adoption did not have a material impact on ~~our~~its consolidated financial statements. The new credit loss standard is expected to accelerate recognition of credit losses on ~~our~~ accounts receivable. See Note 3—Accounts Receivable, net for additional information regarding allowance for credit losses on ~~our~~Frank's accounts receivable.

Note 2—2—Cash, Cash Equivalents and Restricted Cash

Amounts reported in the condensed consolidated balance sheets and condensed consolidated statements of cash flows as cash, cash equivalents and restricted cash at ~~March 31,~~September 30, 2021, and December 31, 2020, were as follows (in thousands):

March 31, December 31,
2021 2020
Cash and cash equivalents $ 191,339 $ 209,575
Restricted cash 1,656 1,672
Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 192,995 $ 211,247

	*September 30,*		*December 31,*
	*2021*		*2020*
Cash and cash equivalents	$	202,997	$	209,575
Restricted cash		1,742		1,672
Total cash, cash equivalents and restricted cash shown in the statements of cash flows	$	204,739	$	211,247

Restricted cash primarily consists of cash deposits that collateralize ~~our~~Frank's credit card program. Cash paid (received) for income taxes, net, was ~~$2.5~~$6.2 million and ~~$1.1~~$(5.5) million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 and 2020, respectively.

Note 3—3—Accounts Receivable, net

Accounts receivable at ~~March 31,~~September 30, 2021, and December 31, 2020, were as follows (in thousands):

March 31, December 31,
2021 2020
Trade accounts receivable, net of allowance for credit losses of $4,112 and $3,857, respectively $ 67,171 $ 65,684
Unbilled receivables 29,923 26,215
Taxes receivable 15,392 14,292
Affiliated (1)
549 549
Other receivables 3,546 3,867
Total accounts receivable, net $ 116,581 $ 110,607

	*September 30,*		*December 31,*
	*2021*		*2020*
Trade accounts receivable, net of allowance for credit losses of $3,718 and $3,857, respectively	$	71,680	$	65,684
Unbilled receivables		40,125		26,215
Taxes receivable		15,974		14,292
Affiliated ⁽¹⁾		24		549
Other receivables		2,782		3,867
Total accounts receivable, net	$	130,585	$	110,607

⁽¹⁾								Amounts represent expenditures on behalf of non-consolidated affiliates.

~~(1)Amounts represent expenditures on behalf of non-consolidated affiliates.~~

~~Note 4—Inventories, net~~

~~Inventories at March 31, 2021 and December 31, 2020 were as follows (in thousands):~~

March 31, December 31,
2021 2020
Pipe and connectors, net of allowance of $16,561 and $16,819, respectively $ 32,690 $ 22,642
Finished goods, net of allowance of $84 and $84, respectively 20,999 22,715
Work in progress 1,954 1,730
Raw materials, components and supplies 39,095 34,631
Total inventories, net $ 94,738 $ 81,718

~~FRANK’S INTERNATIONAL~~

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EXPRO GROUP HOLDINGS N.V.

(formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 5—4—Inventories, net

Inventories at September 30, 2021, and December 31, 2020, were as follows (in thousands):

	*September 30,*		*December 31,*
	*2021*		*2020*
Pipe and connectors, net of allowance of $14,630 and $16,819, respectively	$	22,896	$	22,642
Finished goods, net of allowance of $84 and $84, respectively		20,767		22,715
Work in progress		1,240		1,730
Raw materials, components and supplies, net of allowance of $181 and none, respectively		46,873		34,631
Total inventories, net	$	91,776	$	81,718

The increase in inventories was driven by higher activity levels, particularly in the Western Hemisphere.

Note 5—Property, Plant and Equipment

The following is a summary of property, plant and equipment at ~~March 31,~~September 30, 2021, and December 31, 2020, (in thousands):

Estimated
Useful Lives
in Years March 31,
2021 December 31,
2020
Land — $ 31,080 $ 30,869
Land improvements 8-15 7,688 7,620
Buildings and improvements 13-39 118,592 121,105
Rental machinery and equipment 2-7 906,117 897,398
Machinery and equipment - other 7 54,869 54,842
Furniture, fixtures and computers 3-5 19,756 16,928
Automobiles and other vehicles 5 25,894 25,948
Leasehold improvements 7-15, or lease term if shorter 12,754 12,773
Construction in progress - machinery and equipment — 12,412 24,381
1,189,162 1,191,864
Less: Accumulated depreciation (933,761) (919,157)
Total property, plant and equipment, net $ 255,401 $ 272,707

	*Estimated*
	*Useful Lives*	*September 30,*			*December 31,*
	*in Years*	*2021*			*2020*
Land	—	$	30,892		$	30,869
Land improvements	8 - 15		7,621			7,620
Buildings and improvements	13 - 39		113,196			121,105
Rental machinery and equipment	2 - 7		906,859			897,398
Machinery and equipment - other	7		51,961			54,842
Furniture, fixtures and computers	3 - 5		20,040			16,928
Automobiles and other vehicles	5		25,704			25,948
Leasehold improvements	7 - 15, or lease term if shorter		12,536			12,773
Construction in progress - machinery and equipment	—		10,755			24,381
			1,179,564			1,191,864
Less: Accumulated depreciation			(950,570	)		(919,157	)
Total property, plant and equipment, net		$	228,994		$	272,707

During the ~~three~~nine months ended ~~March 31,~~September 30, 2020, weFrank's recorded fixed asset impairment charges of ~~$15.5~~$15.6 million primarily associated with construction in progress in ~~our~~the Cementing Equipment segment, which is included in severance and other charges, net on ~~our~~the condensed consolidated statements of operations. During the first quarter of 2020, the results of ~~the Company's~~Frank's test for impairment of goodwill in the Cementing Equipment segment as a result of negative market indicators was a triggering event that indicated that ~~our~~Frank's long-lived tangible assets in this segment were impaired. Impairment testing performed in the first quarter of 2020 resulted in the determination that certain long-lived assets were not recoverable and that the estimated fair value was below the carrying value. Please see Note 15—Severance and Other Charges, net for additional details. ~~NaN~~No impairments associated with held for use assets were recognized during the three and nine months ended ~~March 31,~~September 30, 2021.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the first quarter of 2021, a building with a net book value of $1.9 million was sold, resulting in a gain of $0.2 million. In addition, a building with a net book value of $2.6 million met the criteria to be classified as held for sale and was reclassified from property, plant and equipment to assets held for sale on ~~our~~Frank's condensed consolidated balance sheet.

During the second quarter of 2021, Frank's sold a building classified as held for sale for $1.8 million and recorded a gain of $1.3 million. During the third quarter of 2021, a building with a net book value of $5.0 million met the criteria to be classified as held for sale and was reclassified from property, plant and equipment to assets held for sale on Frank's condensed consolidated balance sheet.

During the second quarter of 2020, Frank's sold a building classified as held for sale for $5.4 million and recorded a gain of $0.6 million.

The following table presents the depreciation and amortization expense associated with each line item for the three and nine months ended ~~March 31,~~September 30, 2021 and 2020 (in thousands):

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2021*		*2020*		*2021*		*2020*
Services	$	12,471	$	14,582	$	40,626	$	47,616
Products		114		144		378		567
General and administrative expenses		1,507		1,224		4,527		4,737
Total	$	14,092	$	15,950	$	45,531	$	52,920

Three Months Ended
March 31,
2021 2020
Services $ 14,472 $ 17,263
Products 138 239
General and administrative expenses 1,497 2,216
Total $ 16,107 $ 19,718

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

Note 6—6—Goodwill and Intangible Assets

Goodwill

Goodwill is not subject to amortization and is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. A qualitative assessment is allowed to determine if goodwill is potentially impaired. ~~We have~~Frank's has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. The qualitative assessment determines whether it is more likely than not that a reporting unit’s fair value is less than its carrying amount. If it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then a quantitative impairment test is performed. The quantitative goodwill impairment test is used to identify both the existence of impairment and the amount of impairment loss. The test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded based on that difference. ~~We complete our~~Frank's has historically completed its assessment of goodwill impairment as of October 31 each year.

As a result of the decline in oil prices due to the ongoing ~~COVID-19~~Coronavirus Disease 2019 ("COVID-19") pandemic and the failure by the Organization of Petroleum Exporting Countries (“OPEC”) and Russia ~~price war in early~~ to reach an agreement on lowering production quotas during the first quarter of 2020, we Frank's identified that it was more likely than not that the fair value of goodwill within ~~our~~its Cementing Equipment reporting unit was less than its carrying value. Based on the result of ~~our~~the goodwill impairment test as of March 31, 2020, weFrank's recorded a $57.1 million impairment charge to goodwill, which is included in goodwill impairment on the condensed consolidated statements of operations.

Frank's used the income approach to estimate the fair value of the Cementing Equipment reporting unit, but also considered the market approach to validate the results. The income approach estimates the fair value by discounting the reporting unit’s estimated future cash flows using an estimated discount rate, or expected return, that a marketplace participant would have required as of the valuation date. The market approach includes the use of comparative multiples to corroborate the discounted cash flow results and involves significant judgment in the selection of the appropriate peer group companies and valuation multiples. The inputs used in the determination of fair value are generally level 3 inputs.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Some of the more significant assumptions inherent in the income approach include the estimated future net annual cash flows for the reporting unit and the discount rate. WeManagement of Frank's selected the assumptions used in the discounted cash flow projections using historical data supplemented by current and anticipated market conditions and estimated growth rates. ~~Our~~These estimates are based upon assumptions believed to be reasonable. However, given the inherent uncertainty in determining the assumptions underlying a discounted cash flow analysis, actual results may differ from those used in ~~our~~management's valuation which could result in additional impairment charges in the future. Assuming all other assumptions and inputs used in the discounted cash flow analysis were held constant, a 50 basis point increase in the discount rate assumption would have increased the Cementing Equipment reporting unit goodwill impairment charge described above by approximately $4.3 million.

NaN goodwill impairment was recorded during the three and nine months ended ~~March 31, 2021.~~September 30, 2021. At ~~March 31,~~September 30, 2021, goodwill is allocated to ~~our~~Frank's reportable segments as follows: Cementing Equipment - approximately $24.1 million; Tubular Running Services - approximately $18.7 million.

Intangible Assets

Identifiable intangible assets are amortized using the straight-line method over the estimated useful lives of the assets. ~~We evaluate~~Frank's has historically evaluated impairment of ~~our~~Frank's intangible assets on an asset group basis whenever circumstances indicate that the carrying value may not be recoverable. Intangible assets deemed to be impaired are written down to their fair value using a discounted cash flow model and, if available, comparable market values.

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

The following table provides information related to ~~our~~Frank's intangible assets as of ~~March 31,~~September 30, 2021, and December 31, 2020 (in thousands):

March 31, 2021 December 31, 2020
Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total
Customer Relationships $ 28,300 $ (26,917) $ 1,383 $ 28,300 $ (26,324) $ 1,976
Intellectual Property 18,136 (8,457) 9,679 13,860 (7,939) 5,921
Total intangible assets $ 46,436 $ (35,374) $ 11,062 $ 42,160 $ (34,263) $ 7,897

~~Our~~

	*September 30, 2021*							*December 31, 2020*
	*Gross Carrying Amount*		*Accumulated Amortization*			*Total*		*Gross Carrying Amount*		*Accumulated Amortization*			*Total*
Customer Relationships	$	28,300	$	(28,103	)	$	197	$	28,300	$	(26,324	)	$	1,976
Intellectual Property		18,135		(9,576	)		8,559		13,860		(7,939	)		5,921
Total intangible assets	$	46,435	$	(37,679	)	$	8,756	$	42,160	$	(34,263	)	$	7,897

Frank's intangible assets are primarily associated with ~~our~~its Cementing Equipment and Tubular Running Services segments. Amortization expense for intangible assets was ~~$1.1~~$1.2 million and ~~$1.7~~$0.9 million for the three months ended ~~March 31,~~September 30, 2021 and 2020, respectively and $3.4 million and $3.5 million for the nine months ended September 30, 2021 and 2020, respectively. During the first quarter of 2020, the results of ~~the Company's~~Frank's test for impairment of goodwill in the Cementing Equipment segment as a result of the negative market indicators described above was a triggering event that indicated that ~~our~~the intangible assets in this segment were impaired. Impairment testing performed in the first quarter resulted in the determination that certain intangible assets were not recoverable and that the estimated fair value was below the carrying value. As a result, during the ~~three~~nine months ended ~~March 31,~~September 30, 2020, impairment charges of $4.7 million were recorded associated with certain customer relationships and intellectual property intangible assets in ~~our~~the Cementing Equipment segment, which are included in severance and other charges, net on the condensed consolidated statements of operations. ~~NaN~~No intangible asset ~~impairment was~~impairments were recorded during the three or nine months ended ~~March 31, 2021.~~September 30, 2021. Please see Note 15—Severance and Other Charges, net for additional details.

Note 7—7—Other Assets

Other assets at ~~March 31,~~September 30, 2021, and December 31, 2020, consisted of the following (in thousands):

March 31, December 31,
2021 2020
Cash surrender value of life insurance policies (1)
$ 26,586 $ 26,167
Deposits 2,023 2,182
Other 2,298 2,510
Total other assets $ 30,907 $ 30,859

	*September 30,*		*December 31,*
	*2021*		*2020*
Cash surrender value of life insurance policies ⁽¹⁾	$	17,773	$	26,167
Deposits		1,937		2,182
Other		1,699		2,510
Total other assets	$	21,409	$	30,859

⁽¹⁾								See Note 10—Fair Value Measurements for additional information.

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~~(1)See Note 10—Fair Value Measurements for additional information.~~

~~FRANK’S INTERNATIONAL~~

EXPRO GROUP HOLDINGS N.V.

(formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 8—8—Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities at ~~March 31,~~September 30, 2021, and December 31, 2020, consisted of the following (in thousands):

March 31, December 31,
2021 2020
Accounts payable $ 30,999 $ 22,277
Accrued compensation 22,884 23,212
Accrued property and other taxes 13,294 14,420
Accrued severance and other charges 97 2,666
Income taxes 14,364 16,029
Affiliated (1)
2,238 2,513
Accrued purchase orders and other 23,209 18,869
Total accounts payable and accrued liabilities $ 107,085 $ 99,986

	*September 30,*		*December 31,*
	*2021*		*2020*
Accounts payable	$	30,917	$	22,277
Accrued compensation		22,302		23,212
Accrued property and other taxes		19,371		14,420
Accrued severance and other charges		1,288		2,666
Income taxes		13,560		16,029
Affiliated ⁽¹⁾		2,305		2,513
Accrued purchase orders and other		25,219		18,869
Total accounts payable and accrued liabilities	$	114,962	$	99,986

⁽¹⁾

Represents amounts owed to non-consolidated affiliates.

~~(1)Represents amounts owed to non-consolidated affiliates.~~

Note 9—9—Debt

Credit Facility

Asset Based Revolving Credit Facility

On November 5, 2018, FICV, Frank’s International, LLC and Blackhawk, as borrowers, and FINV, certain of FINV’s subsidiaries, including FICV, Frank’s International, LLC, Blackhawk, Frank’s International GP, LLC, Frank’s International, LP, Frank’s International LP B.V., Frank’s International Partners B.V., Frank’s International Management B.V., Blackhawk Intermediate Holdings, LLC, Blackhawk Specialty Tools, LLC, and Trinity Tool Rentals, L.L.C., as guarantors, entered into a 5-year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, ~~(the “ABL Agent”),~~ and other financial institutions as lenders with total commitments of $100.0 million including up to $15.0 million available for letters of credit. Subject to the terms of the ABL Credit Facility, we have the ability to increase the commitments to $200.0 million. The maximum amount that the Company may borrow under the ABL Credit Facility is subject to a borrowing base, which is based on a percentage of certain eligible accounts receivable and eligible inventory, subject to customary reserves and other adjustments.

All obligations under the ABL Credit Facility are fully and unconditionally guaranteed jointly and severally by FINV’s subsidiaries, including FICV, Frank’s International, LLC, Blackhawk, Frank’s International GP, LLC, Frank’s International, LP, Frank’s International LP B.V., Frank’s International Partners B.V., ~~Frank’s International Management B.V.,~~ Blackhawk Intermediate Holdings, LLC, Blackhawk Specialty Tools, LLC, and Trinity Tool Rentals, L.L.C., subject to customary exceptions and exclusions. In addition, the obligations under the ABL Credit Facility are secured by first priority liens on substantially all of the assets and property of the borrowers and guarantors, including pledges of equity interests in certain of FINV’s subsidiaries, subject to certain exceptions. Borrowings under the ABL Credit Facility bear interest at FINV’s option at either (a) the Alternate Base Rate (“~~ABR~~”) (as defined therein), calculated as the greatest of (i) the rate of interest publicly quoted by the Wall Street Journal, as the “prime rate,” subject to each increase or decrease in such prime rate effective as of the date such change occurs, (ii) the federal funds effective rate that is subject to a 0.00% interest rate floor plus 0.50%, and (iii) the one-month Adjusted LIBO Rate (as defined therein) plus 1.00%, or (b) the Adjusted LIBO Rate, plus, in each case, an applicable margin. The applicable interest rate margin ranges from 1.00% to 1.50% per annum for ABR loans and 2.00% to 2.50% per annum for Eurodollar loans and, in each case, is based on FINV’s leverage ratio. The unused portion of the ABL Credit Facility is subject to a commitment fee that varies from 0.250% to 0.375% per

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

annum, according to average daily unused commitments under the ABL Credit Facility. Interest on Eurodollar loans is payable at the end of the selected interest period, but no less frequently than quarterly. Interest on ABR loans is payable monthly in arrears.

The ABL Credit Facility contains various covenants and restrictive provisions which limit, subject to certain customary exceptions and thresholds, FINV’s ability to, among other things, (1) enter into asset sales; (2) incur additional indebtedness; (3) make investments, acquisitions, or loans and create or incur liens; (4) pay certain dividends or make other distributions and (5) engage in transactions with affiliates. The ABL Credit Facility also requires FINV to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 based on the ratio of (a) consolidated EBITDA (as defined therein) minus unfinanced capital expenditures to (b) Fixed Charges (as defined therein), when either (i) an event of default occurs under the ABL Credit Facility or (ii) availability under the ABL Credit Facility falls for at least 2 consecutive calendar days below the greater of (A) $12.5 million and (B) 15% of the lesser of the borrowing base and aggregate commitments (a “FCCR Trigger Event”). Accounts receivable received by FINV’s U.S. subsidiaries that are parties to the ABL Credit Facility will be deposited into deposit accounts subject to deposit control agreements in favor of the ABL Agent. After a FCCR Trigger Event, these deposit accounts would be subject to “springing” cash dominion. After a FCCR Trigger Event, the Company will be subject to compliance with the fixed charge coverage ratio and “springing” cash dominion until no default exists under the ABL Credit Facility and availability under the facility for the preceding 30 consecutive days has been equal to at least the greater of (x) $12.5 million and (y) 15% of the lesser of the borrowing base and the aggregate commitments. If FINV fails to perform its obligations under the agreement that results in an event of default, the commitments under the ABL Credit Facility could be terminated and any outstanding borrowings under the ABL Credit Facility may be declared immediately due and payable. The ABL Credit Facility also contains cross default provisions that apply to FINV’s other indebtedness.

As of ~~March 31,~~September 30, 2021, FINV had 0 borrowings outstanding under the ABL Credit ~~Facility, letters of credit outstanding of $10.3 million and availability of $23.5 million.~~

InFacility.

On October 1, 2021, in connection with the ~~closing of~~Merger, the ~~Merger, Frank’s expects that~~Company terminated the ~~Combined Company will enter~~ABL Credit Facility and entered into a ~~new~~senior secured revolving credit facility by and ~~terminate or otherwise replace~~among the ~~existing Frank’s~~Company and certain of its subsidiaries, including Exploration and Production Services (Holdings) Limited and Expro ~~credit facilities.~~Holdings US Inc., as borrowers (the "New Credit Facility"), with DNB Bank ASA, London Branch, as agent, and other financial institutions as lenders with an aggregate commitment of $200.0 million with up to $130.0 million available for drawdowns as loans and up to $70.0 million for bonds and guarantees. Please see Note 17—Subsequent Events for further discussion.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note ~~10—~~10—Fair Value Measurements

We follow fair value measurement authoritative accounting guidance for measuring fair values of assets and liabilities in financial statements. ~~We have consistently used the~~The same valuation techniques have been used consistently for all periods presented. Please see Note 9—10—Fair Value Measurements in ~~our~~the Annual Report for further discussion.

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

A summary of financial assets and liabilities that are measured at fair value on a recurring basis, as of ~~March 31,~~September 30, 2021 and December 31, 2020, were as follows (in thousands):

Quoted Prices
in Active
Markets Significant
Other
Observable
Inputs Significant
Unobservable
Inputs
(Level 1) (Level 2) (Level 3) Total
March 31, 2021
Assets:
Investments:
Cash surrender value of life insurance policies - deferred compensation plan $ 0 $ 26,586 $ 0 $ 26,586
Marketable securities - other 2 0 0 2
Liabilities:
Deferred compensation plan 0 20,125 0 20,125
December 31, 2020
Assets:
Investments:
Cash surrender value of life insurance policies - deferred compensation plan $ 0 $ 26,167 $ 0 $ 26,167
Marketable securities - other 3 0 0 3
Liabilities:
Deferred compensation plan 0 20,271 0 20,271

~~Our~~

			*Significant*
	*Quoted Prices*		*Other*		*Significant*
	*in Active*		*Observable*		*Unobservable*
	*Markets*		*Inputs*		*Inputs*
	*(Level 1)*		*(Level 2)*		*(Level 3)*		*Total*
September 30, 2021
Assets:
Investments:
Cash surrender value of life insurance policies - deferred compensation plan	$	0	$	17,773	$	0	$	17,773
Marketable securities - other		2		0		0		2
Liabilities:
Deferred compensation plan		0		18,144		0		18,144
December 31, 2020
Assets:
Investments:
Cash surrender value of life insurance policies - deferred compensation plan	$	0	$	26,167	$	0	$	26,167
Marketable securities - other		3		0		0		3
Liabilities:
Deferred compensation plan		0		20,271		0		20,271

Frank's investments associated with ~~our~~its deferred compensation plan consist primarily of the cash surrender value of life insurance policies and are included in other assets on the condensed consolidated balance sheets. ~~Our~~Frank's investments change as a result of contributions, payments, and fluctuations in the market. ~~Our~~Frank's liabilities associated with ~~our~~its deferred compensation plan are included in o~~ther~~other non-current liabilities on the condensed consolidated balance sheets. Assets and liabilities, measured using significant observable inputs, are reported at fair value based on ~~third-party~~third-party broker statements, which are derived from the fair value of the funds’ underlying investments. WeFrank's also ~~have~~has marketable securities in publicly traded equity securities as an indirect result of strategic investments. They are reported at fair value based on the price of the stock and are included in other assets on the condensed consolidated balance sheets.

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

~~We apply~~

The Company applies the provisions of the fair value measurement standard to ~~our~~ non-recurring, non-financial measurements including business combinations and assets identified as held for sale, as well as impairment related to goodwill and other long-lived assets.

~~We perform our~~

Management of the Company performs goodwill impairment ~~assessment~~assessments for each reporting unit by comparing the estimated fair value of each reporting unit to the reporting unit’s carrying value, including goodwill. ~~We estimate~~Management estimates the fair value for each reporting unit using a discounted cash flow analysis based on management’s short-term and long-term forecast of operating performance. This analysis includes significant assumptions regarding discount rates, revenue growth rates, expected profitability margins, forecasted capital expenditures and the timing of expected future cash flows based on market conditions. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, an impairment loss is measured and recorded.

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

When conducting an impairment test on long-lived assets, other than goodwill, ~~we first compare~~the estimated future undiscounted cash flows associated with the asset are first compared to the asset’s carrying amount. If the undiscounted cash flows are less than the asset’s carrying amount, ~~we then determine~~ the asset’s fair value is then determined by using a discounted cash flow analysis. These analyses are based on estimates such as management’s short-term and long-term forecast of operating performance, including revenue growth rates and expected profitability margins, estimates of the remaining useful life and service potential of the asset, and a discount rate based on our weighted average cost of capital.

The impairment assessments discussed above incorporate inherent uncertainties, including projected commodity pricing, supply and demand for ~~our~~Frank's services and future market conditions, which are difficult to predict in volatile economic environments and could result in impairment charges in future periods if actual results materially differ from the estimated assumptions utilized in ~~our~~management's forecasts. If crude oil prices decline significantly and remain at low levels for a sustained period of time, wethe Company could be required to record an impairment of the carrying value of ~~our~~its long-lived assets in the future which could have a material adverse impact on ~~our~~its operating results. Given the unobservable nature of the inputs, the discounted cash flow models are deemed to use Level 3 inputs.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Other Fair Value Considerations

The carrying values on ~~our~~the condensed consolidated balance sheets of ~~our~~Frank's cash and cash equivalents, restricted cash, short-term investments, trade accounts receivable, other current assets, accounts payable and accrued liabilities and lines of credit approximate fair values due to their short maturities.

Note ~~11—~~11—Related Party Transactions

~~We have~~

Frank's has engaged in certain transactions with other companies related to usit by common ownership. ~~We have~~Frank's has entered into various operating leases to lease facilities from these affiliated companies. Rent expense associated with ~~our~~ related party leases was $0.7 million and ~~$0.7~~$0.9 million for the three months ended ~~March 31,~~September 30, 2021 and 2020, respectively, and $2.1 million and $2.3 million for the nine months ended September 30, 2021 and 2020, respectively. As of ~~March 31,~~September 30, 2021 ~~$3.1~~, $3.8 million of ~~our~~Frank's operating lease right-of-use assets and ~~$4.5~~$4.9 million of ~~our~~its lease liabilities were associated with related party leases.

Prior to the initial public offering of Frank’s in 2013, a limited number of employees of a certain Mosing affiliated company were admitted as participants in the Frank’s deferred compensation plan. The relevant Mosing affiliated company was responsible for payment of all benefits related to its employees. During the quarter ended September 30, 2021, all such participants received final payment of all sums owed under the deferred compensation plan, and no participants remain in the plan who were not Frank’s employees.

Tax Receivable Agreement and Amended & Restated Tax Receivable Agreement

Mosing Holdings, LLC, a Delaware limited liability company (“Mosing Holdings”), converted all of its shares of our Series A convertible preferred stock into shares of ~~our~~Frank's common stock on August 26, 2016, in connection with its delivery to FINV of all of its interests in FICV (the “Conversion”). As a result of an election under Section 754 of the Internal Revenue Code made by FICV, the Conversion resulted in an adjustment to the tax basis of the tangible and intangible assets of FICV with respect to the portion of FICV transferred to FINV by Mosing Holdings. These adjustments are solely allocable to FINV. The adjustments to the tax basis of the tangible and intangible assets of FICV described above would not have been available absent the Conversion. The basis adjustments may reduce the amount of tax that FINV would otherwise be required to pay in the future. These basis adjustments may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

The tax receivable agreement (the ~~“TRA”~~“Original TRA”) that weFINV entered into with FICV and Mosing Holdings in connection with ~~our~~FINV's initial public offering (“IPO”) generally ~~provides~~provided for the payment by FINV to Mosing Holdings of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that weFINV actually realize (or are deemed to realize in certain circumstances) in periods after ~~our~~FINV's IPO as a result of (i) tax basis increases resulting from the Conversion and (ii) imputed interest deemed to be paid by FINV as a result of, and additional tax basis arising from, payments under the Original TRA. ~~We will retain~~Frank's retained the benefit of the remaining 15% of these cash savings, if any. Payments FINV makes under the TRA will be increased by any interest accrued from the due date (without extensions) of the corresponding tax return to the date of payment specified by the TRA. The payments under the TRA will not be conditioned upon a holder of rights under the TRA having a continued ownership interest in FINV.

The estimation of the amount and timing of payments under the TRA is by its nature imprecise. For purposes of the TRA, cash savings in tax generally are calculated by comparing FINV’s actual tax liability to the amount FINV would have been required to pay had it not been able to utilize any of the tax benefits subject to the TRA. The

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

amounts payable, as well as the timing of any payments, under the TRA are dependent upon significant future events and assumptions, including the amount and timing of the taxable income FINV generates in the future. As of March 31, 2021, FINV has had a cumulative loss over the prior 36-month period. Based on this history of losses, as well as uncertainty regarding the timing and amount of future taxable income, we are no longer able to conclude that there will be future cash savings that will lead to additional payouts under the TRA. Additional TRA liability may be recognized in the future based on changes in expectations regarding the timing and likelihood of future cash savings.

The payment obligations under the TRA are FINV’s obligations and are not obligations of FICV. The term of the TRA commenced upon the completion of the IPO and will continue until all tax benefits that are subject to the TRA have been utilized or expired, unless FINV elects to exercise its right to terminate the TRA (or the TRA is terminated due to other circumstances, including our breach of a material obligation thereunder or certain mergers or other changes of control), and FINV makes the termination payment specified by the TRA, or FINV otherwise settles its obligations under the TRA. If FINV elects to terminate the TRA early, which it may do in its sole discretion (or if it terminates early as a result of our breach), it would be required to make a substantial, immediate lump-sum payment equal to the present value of the hypothetical future payments that could be required to be paid under the TRA (based upon certain assumptions and deemed events set forth in the TRA, including the assumption that it has sufficient taxable income to fully utilize such benefits), determined by applying a discount rate equal to the long-term Treasury rate in effect on the applicable date plus 300 basis points. Any early termination payment may be made significantly in advance of the actual realization, if any, of such future benefits. In addition, payments due under the TRA will be similarly accelerated following certain mergers or other changes of control. In these situations, FINV’s obligations under the TRA could have a substantial negative impact on our liquidity and could have the effect of delaying, deferring or preventing certain mergers, asset sales, other forms of business combinations or other changes of control. For example, if the TRA were terminated on March 31, 2021, the estimated termination payment would be approximately $70.0 million (calculated using a discount rate of 4.15%). The foregoing number is merely an estimate and the actual payment could differ materially.

Because FINV is a holding company with no operations of its own, its ability to make payments under the TRA is dependent on the ability of our operating subsidiaries to make distributions to it in an amount sufficient to cover FINV’s obligations under such agreement. The ability of certain of our operating subsidiaries to make such distributions will be subject to, among other things, the applicable provisions of Dutch law that may limit the amount of funds available for distribution and restrictions in our debt instruments. To the extent that FINV is unable to make payments under the TRA for any reason (except in the case of an acceleration of payments thereunder occurring in connection with an early termination of the TRA or certain mergers or change of control) such payments will be deferred and will accrue interest until paid, and FINV will be prohibited from paying dividends on its common stock.

In connection with the Merger Agreement, FINV, FICV and Mosing Holdings entered into that certain Amended and Restated Tax Receivable Agreement, dated as of March 10, 2021 (the “A&R TRA”). Pursuant to the A&R TRA, ~~pursuant to which FINV, FICV and Mosing Holdings have agreed, among other things,~~on October 1, 2021, the Company made a payment of $15 million cash to settle the early termination payment ~~obligation~~obligations that would otherwise be owed to Mosing Holdings under the Original TRA as a result of the ~~Merger~~Merger. The A&R TRA also provides for other contingent payments to be made by the ~~payment by FINV~~Company to Mosing Holdings ~~of (i) $15 million cash at the closing of the Transactions and (ii) certain other contingent payments~~ in the future in the event the ~~Combined~~ Company realizes cash tax savings from tax attributes covered under the Original TRA during the ten year period following ~~the Closing Date (as defined in the Merger Agreement)~~ October 1, 2021 in excess of $18,057,000, as more fully described in the A&R TRA. The terms of the A&R TRA are conditioned upon and subject to the closing of the Transactions and the payment to Mosing Holdings of the $15 million cash payment at the closing of the Transactions. If such conditions do not occur, the A&R TRA will be terminated and will be null and void, and the TRA will remain in effect in accordance with its terms.$18,057,000. Please see Note ~~1—Basis of Presentation in the Notes to the Unaudited Condensed Consolidated Financial Statements~~17—Subsequent Events for additional ~~details regarding the Merger, the Merger Agreement and the Transactions.~~details.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note ~~12—~~12—Loss Per Common Share

Basic loss per common share is determined by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share is determined by dividing net loss by the weighted average number of common shares outstanding, assuming all potentially dilutive shares were issued. We apply the

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

treasury stock method to determine the dilutive weighted average common shares represented by unvested restricted stock units and employee stock purchase plan (“ESPP”) shares.

The following table summarizes the basic and diluted loss per share calculations (in thousands, except per share amounts):

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2021*			*2020*			*2021*			*2020*
Numerator
Net loss	$	(15,081	)	$	(27,791	)	$	(51,583	)	$	(148,014	)
Denominator
Basic and diluted weighted average common shares ⁽¹⁾		38,066			37,691			37,957			37,659
Loss per common share:
Basic and diluted	$	(0.40	)	$	(0.74	)	$	(1.36	)	$	(3.93	)
(1) Approximate number of unvested restricted stock units and stock to be issued pursuant to the ESPP that have been excluded from the computation of diluted loss per share as the effect would be anti-dilutive when results from operations are at a net loss position.		259			184			239			175

Three Months Ended
March 31,
2021 2020
Numerator
Net loss $ (23,886) $ (85,978)
Denominator
Basic and diluted weighted average common shares (1)
227,019 225,505
Loss per common share:
Basic and diluted $ (0.11) $ (0.38)

(1) Approximate number of unvested restricted stock units and stock to be issued pursuant to the ESPP that have been excluded from the computation of diluted loss per share as the effect would be anti-dilutive when results from operations are at a net loss position. 2,252 2,015

Note ~~13—~~13—Income Taxes

For interim financial reporting, ~~we estimate~~management estimates the annual tax rate based on projected pre-tax income (loss) for the full year and ~~record~~records a quarterly income tax provision (benefit) in accordance with accounting guidance for income taxes. As the year progresses, ~~we refine~~ the estimate of the year’s pre-tax income (loss) is refined as new information becomes available. The continual estimation process often results in a change to the expected effective tax rate for the year. When this occurs, ~~we adjust~~ the income tax provision (benefit) is adjusted during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the most current expected annual tax rate.

~~Our~~

Frank's effective tax rate was ~~(4.7)~~(35.7)% and ~~15.3%~~(29.9)% for the three months ended ~~March 31,~~September 30, 2021 and 2020, respectively and (29.7)% and 0.1% for nine months ended September 30, 2021 and 2020, respectively. The quarterly sequential variance in effective tax rates is due to a change in the geographical mix of income. The year over year variance in effective tax rates is primarily due to the beneficial impact in the prior year period from the ~~five-year~~five-year net operating loss carryback provision included in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), as well as a change in the geographical mix of income. ~~We are~~Frank's is subject to tax in many U.S. and non-U.S. jurisdictions. In many non-U.S. jurisdictions ~~we are~~Frank's is taxed on bases such as deemed profits or withholding taxes based on revenue. Consequently, the level of correlation between ~~our~~ pre-tax income and ~~our~~ income tax provision varies from period to period.

~~�� We are~~

As a consequence of the Merger, Frank's underwent an ownership change as defined in Internal Revenue Code Section 382, which, based on information currently available, will trigger a substantial limitation on the combined company’s ability to utilize historic net operating losses ("NOLs") and will cause some of Frank’s NOLs incurred prior to January 1, 2018 to expire before the combined company will be able to utilize them.

Frank's is under audit by certain non-U.S. jurisdictions for the years 2008 - 2019. ~~We do~~ Frank's does not expect the results of these audits to have any material effect on ~~our~~its financial statements.

An analysis of ~~March 31, 2021, there were no significant changes to our~~Frank's uncertain tax positions in the various jurisdictions in which it operates has been performed and management has concluded that the positions are adequately provided for. Frank's provision for uncertain tax positions as ~~reported in our audited financial statements for the year ended~~ of September 30, 2021 and December 31, ~~2020.~~2020 included in “Other non-current liabilities” on the condensed consolidated balance sheets was $5.0 million and $3.1 million, respectively.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note ~~14—~~14—Commitments and Contingencies

We are the subject of lawsuits and claims arising in the ordinary course of business from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. WeFrank's had no material accruals for loss contingencies, individually or in the aggregate, as of ~~March 31,~~September 30, 2021 ~~and~~ or December 31, ~~2020. We believe~~2020. Company management believes the probability is remote that the ultimate outcome of these matters would have a material adverse effect on our financial position, results of operations or cash flows.

~~We are~~

Frank's has been conducting, and the combined company will continue to conduct, an internal investigation of the operations of certain of ~~our~~its foreign subsidiaries in West Africa including possible violations of the U.S. Foreign Corrupt Practices Act (“FCPA”), ~~our~~its policies and other

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

applicable laws. In June 2016, weFrank's voluntarily disclosed the existence of ~~our~~its extensive internal review to the SEC, the U.S. Department of Justice (“DOJ”) and other governmental entities. It is ~~our~~the Company's intent to continue to fully cooperate with these agencies and any other applicable authorities in connection with any further investigation that may be conducted in connection with this matter. While ~~our~~the review has not indicated that there has been any material impact on ~~our~~Frank's previously filed financial statements, ~~we have~~Frank's has continued to collect information and cooperate with the ~~authorities, but at this time are unable to predict the ultimate resolution of these matters with these agencies.~~

authorities.

As disclosed above, ~~our~~the investigation into possible violations of the FCPA remains ongoing, and wethe Company will continue to cooperate with the SEC, DOJ and other relevant governmental entities in connection therewith. At this time, we are unable to predict the ultimate resolution of these matters with these agencies, including any financial impact to ~~us. Our~~the Company. The Company's Board of Directors (the "Board") and management are committed to continuously enhancing ~~our~~the Company's internal controls that support improved compliance and transparency throughout ~~our~~the Company's global operations.

Note ~~15—~~15—Severance and Other Charges, net

~~We recognize~~

Frank's recognizes severance and other charges for costs associated with workforce reductions, facility closures, exiting or reducing ~~our~~its footprint in certain countries, asset impairments and the retirement of excess machinery and equipment based on economic utility. As a result of the downturn in the industry and its impact on ~~our~~Frank's business outlook, ~~we continue~~management continued to take actions to adjust ~~our~~Frank's operations and cost structure to reflect current and expected activity levels. ~~Depending on future market conditions, further actions may be necessary to adjust our operations, which may result in additional charges.~~

~~Our severance~~

Severance and other charges, net are summarized below (in thousands):

Three Months Ended March 31,
2021 2020
Severance and other costs $ 265 $ 538
Mergers and acquisition expense 6,804 0
Fixed asset impairments and retirements 171 15,479
Inventory write-offs 136 0
Intangible asset impairments 0 4,708
$ 7,376 $ 20,725

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2021*		*2020*		*2021*		*2020*
Severance and other costs	$	195	$	3,444	$	1,305	$	8,776
Mergers and acquisition expense		2,763		0		12,121		0
Fixed asset impairments and retirements		0		105		171		15,584
Inventory write-offs		0		0		136		368
Intangible asset impairments		0		0		0		4,708
	$	2,958	$	3,549	$	13,733	$	29,436

Severance and other costs: WeFrank's incurred costs due to a continued effort to adjust ~~our~~its cost base, including reducing ~~our~~its workforce to meet the depressed demand in the industry.

Mergers and acquisition expense: During the three and nine months ended ~~March 31,~~September 30, 2021 we, Frank's incurred ~~$6.8~~$2.8 million and $12.1 million of costs, respectively, primarily related to legal and consulting services associated with the ~~pending merger with Expro.~~

Merger.

Fixed asset impairments and retirements: During the ~~three~~nine months ended ~~March 31,~~September 30, 2020 we, Frank's recognized ~~$15.5~~$15.6 million primarily associated with construction in progress in ~~our~~the Cementing Equipment segment. During the ~~three~~nine months ended ~~March 31,~~September 30, 2021 we, Frank's recognized a $0.2 million impairment associated ~~our~~ with construction in progress in ~~our~~the Tubular Running Services segment. Please see Note 5—Property, Plant and Equipment for additional details.

Inventory write-offs: During the ~~three~~nine months ended ~~March 31, 2021,~~September 30, 2020, certain inventories in ~~our~~the Cementing Equipment segment were determined to have costs that exceeded their net realizable values, resulting in a charge of $0.4 million. During the nine months ended September 30, 2021, certain inventories in the Tubular Running Services segment were determined to have costs that exceeded their net realizable values, resulting in a charge of $0.1 million.

Intangible asset impairments: During the ~~three~~nine months ended ~~March 31,~~September 30, 2020 ~~we identified~~, certain intangible assets were identified where the carrying value exceeded the fair value in the Cementing Equipment segment, resulting in an

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

impairment charge of $4.7 million. ~~NaN~~No impairment was recorded during the three and nine months ended ~~March 31, 2021.~~September 30, 2021. Please see Note 6—Goodwill and Intangible Assets for additional details.

Note ~~16—~~16—Segment Information

Reporting Segments

Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker ("CODM"), which is our Chief Executive Officer, in deciding how to allocate resources and assess performance. ~~We are~~Frank's is comprised of 3 threereportable segments: Tubular Running Services (“TRS”) segment, Tubulars segment and Cementing Equipment (“CE”) segment.

Post-Merger, the combined company is comprised of four regional-based segments.

The TRS segment provides tubular running services globally. Internationally, the TRS segment operates in the majority of the offshore oil and gas markets and also in several onshore regions with operations in approximately 40 countries on 6six continents. In the U.S., the TRS segment provides services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, and in the U.S. Gulf of Mexico. ~~Our~~As the Merger did not close until after the quarter ended September 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q reflect the reporting segments of Frank's, the Predecessor Registrant. The Company's customers are primarily large exploration and production companies, including international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies.

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EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Tubulars segment designs, manufactures and distributes connectors and casing attachments for large outside diameter (“OD”) heavy wall pipe. Additionally, the Tubulars segment sells large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provides specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specializes in the development, manufacture and supply of proprietary drilling tool solutions that focus on improving drilling productivity through eliminating or mitigating traditional drilling operational risks.

The CE segment provides specialty equipment to enhance the safety and efficiency of rig operations. It provides specialized equipment, services and products utilized in the construction of the wellbore in both onshore and offshore environments. The product portfolio includes casing accessories that serve to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. The CE segment also provides services and products utilized in the construction, completion or abandonment of the wellbore. These solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite.

Revenue

~~We disaggregate our revenue~~

Revenue from contracts with customers is disaggregated by geography for each of ~~our~~Frank's segments, as ~~we believe~~management believes this best depicts how the nature, amount, timing and uncertainty of ~~our~~Frank's revenue and cash flows are affected by economic factors. Intersegment revenue is immaterial.

~~FRANK’S INTERNATIONAL N.V.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

The following tables presents ~~our~~Frank's revenue disaggregated by geography, based on the location where ~~our~~ services were provided and products sold (in thousands):

	*Three Months Ended September 30, 2021*
	*Tubular Running Services*		*Tubulars*		*Cementing Equipment*		*Consolidated*
United States	$	20,250	$	13,701	$	10,438	$	44,389
International		57,375		5,083		8,094		70,552
Total Revenue	$	77,625	$	18,784	$	18,532	$	114,941

	*Three Months Ended September 30, 2020*
	*Tubular Running Services*		*Tubulars*		*Cementing Equipment*		*Consolidated*
United States	$	15,213	$	12,483	$	7,430	$	35,126
International		37,713		4,000		7,578		49,291
Total Revenue	$	52,926	$	16,483	$	15,008	$	84,417

	*Nine Months Ended September 30, 2021*
	*Tubular Running Services*		*Tubulars*		*Cementing Equipment*		*Consolidated*
United States	$	58,863	$	31,995	$	30,996	$	121,854
International		156,942		15,024		23,773		195,739
Total Revenue	$	215,805	$	47,019	$	54,769	$	317,593

	*Nine Months Ended September 30, 2020*
	*Tubular Running Services*		*Tubulars*		*Cementing Equipment*		*Consolidated*
United States	$	64,256	$	27,270	$	28,245	$	119,771
International		140,494		10,496		23,249		174,239
Total Revenue	$	204,750	$	37,766	$	51,494	$	294,010

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Three Months Ended March 31, 2021
Tubular Running Services Tubulars Cementing Equipment Consolidated
United States $ 18,367 $ 7,993 $ 9,345 $ 35,705
International 47,918 3,676 7,512 59,106
Total Revenue $ 66,285 $ 11,669 $ 16,857 $ 94,811
Three Months Ended March 31, 2020
Tubular Running Services Tubulars Cementing Equipment Consolidated
United States $ 30,169 $ 9,797 $ 13,531 $ 53,497
International 59,328 2,745 7,922 69,995
Total Revenue $ 89,497 $ 12,542 $ 21,453 $ 123,492

EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Revenue by geographic area were as follows (in thousands):

Three Months Ended
March 31,
2021 2020
United States $ 35,705 $ 53,497
Europe/Middle East/Africa 28,254 35,434
Latin America 21,934 20,925
Asia Pacific 7,653 9,569
Other countries 1,265 4,067
Total Revenue $ 94,811 $ 123,492

	*Three Months Ended*				*Nine Months Ended*
	*September 30,*				*September 30,*
	*2021*		*2020*		*2021*		*2020*
United States	$	44,389	$	35,126	$	121,854	$	119,771
Europe/Middle East/Africa		33,902		20,082		91,727		77,402
Latin America		25,195		20,001		72,894		61,003
Asia Pacific		10,039		6,928		26,280		25,231
Other countries		1,416		2,280		4,838		10,603
Total Revenue	$	114,941	$	84,417	$	317,593	$	294,010

Adjusted EBITDA

~~We define~~

Frank's defines Adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, unrealized and realized gain or loss, net severance and other charges, other non-cash adjustments and other charges. ~~We review~~Company management reviews Adjusted EBITDA on both a consolidated basis and on a segment basis. ~~We use~~Management uses Adjusted EBITDA to assess ~~our~~Frank's financial performance because it allows usmanagement to compare ~~our~~Frank's operating performance on a consistent basis across periods by removing the effects of ~~our~~Frank's capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. Adjusted EBITDA has limitations as an analytical tool and should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP.

~~Our~~

Frank's CODM uses Adjusted EBITDA as the primary measure of segment reporting performance.

2220

~~FRANK’S INTERNATIONAL~~

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EXPRO GROUP HOLDINGS N.V.

(formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table presents a reconciliation of Segment Adjusted EBITDA to net loss (in thousands):

	*Three Months Ended*						*Nine Months Ended*
	*September 30,*						*September 30,*
	*2021*			*2020*			*2021*			*2020*
Segment Adjusted EBITDA:
Tubular Running Services	$	11,912		$	982		$	29,790		$	18,336
Tubulars		2,735			1,806			7,481			3,883
Cementing Equipment		6,389			3,376			16,036			6,806
Corporate ⁽¹⁾		(7,258	)		(7,151	)		(20,464	)		(24,645	)
		13,778			(987	)		32,843			4,380
Goodwill impairment		0			0			0			(57,146	)
Severance and other charges, net		(2,958	)		(3,549	)		(13,733	)		(29,436	)
Interest income (expense), net		(167	)		(93	)		(555	)		618
Depreciation and amortization		(14,092	)		(15,950	)		(45,531	)		(52,920	)
Income tax (expense) benefit		(3,969	)		(6,395	)		(11,812	)		182
Gain on disposal of assets		72			308			1,733			898
Foreign currency gain (loss)		(4,548	)		2,334			(4,698	)		(5,865	)
Charges and credits ⁽²⁾		(3,197	)		(3,459	)		(9,830	)		(8,725	)
Net loss	$	(15,081	)	$	(27,791	)	$	(51,583	)	$	(148,014	)

⁽¹⁾	Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.

⁽²⁾

Comprised of Equity-based compensation expense (for the three months ended September 30, 2021 and 2020: $3,307 and $2,773, respectively, and for the nine months ended September 30, 2021 and 2020: $9,604 and $8,434, respectively), Unrealized and realized gains (losses) (for the three months ended September 30, 2021 and 2020: $199 and $(113), respectively, and for the nine months ended September 30, 2021 and 2020: $(7) and $1,480, respectively) and Investigation-related matters (for the three months ended September 30, 2021 and 2020: $89 and $573, respectively, and for the nine months ended September 30, 2021 and 2020: $219 and $1,771, respectively).

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Three Months Ended
March 31,
2021 2020
Segment Adjusted EBITDA:
Tubular Running Services $ 8,128 $ 13,305
Tubulars 639 1,396
Cementing Equipment 4,795 2,544
Corporate (1)
(6,909) (10,186)
6,653 7,059
Goodwill impairment 0 (57,146)
Severance and other charges, net (7,376) (20,725)
Interest income (expense), net (287) 533
Depreciation and amortization (16,107) (19,718)
Income tax (expense) benefit (1,070) 15,563
Gain (loss) on disposal of assets 182 (60)
Foreign currency loss (2,868) (9,892)
Charges and credits (2)
(3,013) (1,592)
Net loss $ (23,886) $ (85,978)

~~(1)~~ ~~Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.~~

~~(2)~~ Comprised of Equity-based compensation expense (for the three months ended March 31, 2021 and 2020: $2,872 and $2,146, respectively), Unrealized and realized gains (losses) (for the three months ended March 31, 2021 and 2020: $(99) and $1,704, respectively) and Investigation-related matters (for the three months ended March 31, 2021 and 2020: $42 and $1,150, respectively).

EXPRO GROUP HOLDINGS N.V. (formerly named Frank's International N.V.)

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following tables set forth certain financial information with respect to ~~our~~Frank's reportable segments (in thousands):

Tubular Running Services Tubulars Cementing Equipment Corporate Total
Three Months Ended March 31, 2021
Revenue from external customers $ 66,285 $ 11,669 $ 16,857 $ 0 $ 94,811
Operating income (loss) (5,452) (875) 1,993 (15,452) (19,786)
Adjusted EBITDA 8,128 639 4,795 (6,909) *
Three Months Ended March 31, 2020
Revenue from external customers $ 89,497 $ 12,542 $ 21,453 $ 0 $ 123,492
Operating income (loss) (1,315) 651 (77,498) (16,046) (94,208)
Adjusted EBITDA 13,305 1,396 2,544 (10,186) *

	*Tubular Running Services*			*Tubulars*		*Cementing Equipment*			*Corporate*			*Total*
Three Months Ended September 30, 2021
Revenue from external customers	$	77,625		$	18,784	$	18,532		$	0		$	114,941
Operating income (loss)		902			837		3,680			(12,163	)		(6,744	)
Adjusted EBITDA		11,912			2,735		6,389			(7,258	)		*
Three Months Ended September 30, 2020
Revenue from external customers	$	52,926		$	16,483	$	15,008		$	0		$	84,417
Operating income (loss)		(13,717	)		860		1,160			(12,049	)		(23,746	)
Adjusted EBITDA		982			1,806		3,376			(7,151	)		*
Nine Months Ended September 30, 2021
Revenue from external customers	$	215,805		$	47,019	$	54,769		$	0		$	317,593
Operating income (loss)		(7,148	)		2,368		8,010			(38,625	)		(35,395	)
Adjusted EBITDA		29,790			7,481		16,036			(20,464	)		*
Nine Months Ended September 30, 2020
Revenue from external customers	$	204,750		$	37,766	$	51,494		$	0		$	294,010
Operating income (loss)		(28,284	)		1,327		(78,824	)		(39,459	)		(145,240	)
Adjusted EBITDA		18,336			3,883		6,806			(24,645	)		*

* Non-GAAP financial measure not disclosed.

Note 17—Subsequent Events

On October 1,2021, the Company (formerly named Frank’s International N.V.) completed its previously announced Merger with Legacy Expro pursuant to the Merger Agreement. Further, on September 30, 2021, the Prior Board unanimously approved a 1-for-6 reverse stock split of Frank’s common stock, which was effected on October 1, 2021. On October 4,2021, the first trading day following the closing of the Merger, the Company Common Stock began trading on a post-reverse split basis on the New York Stock Exchange under the new name and new ticker symbol “XPRO.”

Pursuant to the Merger Agreement, as of the effective time of the Merger (the “Effective Time”), each outstanding ordinary share of common stock, par value $0.01 per share, of Legacy Expro was converted into the right to receive 1.2120 shares of common stock, nominal value €0.06 per share, of the Company (“Company Common Stock”). The number of shares of Company Common Stock received by the Legacy Expro shareholders was equal to 7.2720 (the “Exchange Ratio” as provided in the Merger Agreement) multiplied by the 1-for-6 reverse stock split ratio. Further, pursuant to the Merger Agreement, at the Effective Time, the articles of association of the Company (the “Company Articles”) were amended to increase the total authorized capital stock of the Company from 798,096,000 shares of Company Common Stock to 1,200,000,000 shares of Company Common Stock (200,000,000 shares of Company Common Stock on a post-reverse split basis) and to effect certain other amendments to the Company Articles contemplated by the Merger Agreement. All of the outstanding Company Common Stock share numbers, nominal value, share prices and per share amounts in these condensed consolidated financial statements have been retroactively adjusted to reflect a 1-for-6 reverse stock split for all periods presented.

In connection with the Merger, on October 1,2021, the Company and certain of its subsidiaries, including Exploration and Production Services (Holdings) Limited and Expro Holdings US Inc., as borrowers, entered into the New Credit Facility with DNB Bank ASA, London Branch, as agent, and other financial institutions as lenders with an aggregate commitment of $200.0 million with up to $130.0 million available for drawdowns as loans and up to $70.0 million for bonds and guarantees. Subject to the terms of the New Credit Facility, the Company has the ability to increase the commitments to $250.0 million. Proceeds of the New Credit Facility may be used for general corporate and working capital purposes. The New Credit Facility replaces the ABL Credit Facility and the senior secured revolving facility of Legacy Expro, which both terminated on October 1,2021 in connection with the Merger.

In connection with the Merger Agreement, the Company, FICV, and Mosing Holdings entered into the A&R TRA that amended and restated the Original TRA. Pursuant to the A&R TRA, on October 1,2021, the Company made a payment of $15 million cash to settle the early termination payment obligations that would otherwise be owed to Mosing Holdings under the Original TRA as a result of the Merger. The A&R TRA also provides for other contingent payments to be made by the Company to Mosing Holdings in the future in the event the Company realizes cash tax savings from tax attributes covered under the Original TRA during the ten year period following October 1,2021 in excess of $18,057,000.

Please refer to the Company's Current Report on Form 8-K filed on October 1, 2021 for further details regarding the completion of the Merger, the New Credit Facility and the A&R TRA.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Form 10-Q”) includes certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include those that express a belief, expectation or intention, as well as those that are not statements of historical fact. Forward-looking statements include information regarding our future plans and goals and our current expectations with respect to, among other things:

•~~our business strategy and prospects for growth;~~

•~~The merger with Expro Group Holdings International Limited (“Expro”), (the “Merger”);~~

•~~our cash flows and liquidity;~~

•~~our financial strategy, budget, projections and operating results;~~

•~~the amount, nature and timing of capital expenditures;~~

•~~the availability and terms of capital;~~

•~~competition and government regulations; and~~

•~~general economic conditions.~~

~~Our~~

•

business strategy and prospects for growth;

•

post-Merger integration;

•

cash flows and liquidity;

•

financial strategy, budget, projections and operating results;

•

the amount, nature and timing of capital expenditures;

•

the availability and terms of capital;

•

competition and government regulations; and

•

general economic conditions.

These forward-looking statements are generally accompanied by words such as “anticipate,” “believe,” “estimate,” “expect,” “goal,” “plan,” “potential,” “predict,” “project,” or other terms that convey the uncertainty of future events or outcomes, although not all forward-looking statements contain such identifying words. The forward-looking statements in this Form 10-Q speak only as of the date of this report; we disclaim any obligation to update these statements unless required by law, and we caution you not to rely on them unduly. Forward-looking statements are not assurances of future performance and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties include, but are not limited to, the following:

•continuing uncertainty relating to global crude oil demand and crude oil prices that correspondingly may lead to further significant reductions in domestic oil and gas activity, which in turn could result in further significant declines in demand for our products and services;

•

continuing uncertainty relating to global crude oil demand and crude oil prices that correspondingly may lead to further significant reductions in domestic oil and gas activity, which in turn could result in further significant declines in demand for our products and services;

•

uncertainty regarding the extent and duration of the remaining restrictions in the United States and globally on various commercial and economic activities due to the COVID-19 virus, including uncertainty regarding the re-imposition of restrictions due to resurgences in infection rates and the emergence of new, more contagious or virulent strains of COVID-19; such restrictions are designed to protect public health but also have the effect of significantly reducing demand for oil and gas, which may correspondingly decrease demand for our products and services;

•

uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for crude oil and therefore the demand for the products and services we provide and the commercial opportunities available to us;

•

the impact of current and future laws, rulings, governmental regulations, accounting standards and statements, and related interpretations;

•

unique risks associated with our offshore operations;

•

political, economic and regulatory uncertainties in our international operations;

•

our ability to develop new technologies and products;

•

our ability to protect our intellectual property rights;

•

our ability to employ and retain skilled and qualified workers;

•

the level of competition in our industry;

•

operational safety laws and regulations;

•

international trade laws and sanctions;

•

weather conditions and natural disasters;

•

global or national health concerns, including health epidemics, including COVID-19;

•

policy or regulatory changes domestically in the United States;

•

unforeseen consequences of the Merger;

•

uncertainty with respect to integration and realization of expected cost synergies following completion of the Merger; and

•

litigation risk associated with the Merger.

The impact of the ~~remaining restrictions in the United States~~COVID-19 pandemic and ~~globally on various commercial~~related economic, business and ~~economic activities due~~market disruptions continue to ~~the COVID-19 virus, including uncertainty regarding the re-imposition of restrictions due to resurgences in infection rates; such restrictions~~evolve, and its future effects are ~~designed to protect public health but also have the effect of significantly reducing demand for oil and gas, which may correspondingly decrease demand for our products and services;~~

•uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for crude oil and therefore the demand for the products and services we provide and the commercial opportunities available to us;

•~~the~~uncertain. The continued impact of ~~current~~COVID-19 on the Company’s business will depend on many factors, many of which are beyond management's control and knowledge. It is therefore difficult for management to assess or predict with accuracy the broad future ~~laws, rulings, governmental regulations, accounting standards~~effects of this health crisis on the global economy, the energy industry or the Company’s business. As additional information becomes available, events or circumstances change and ~~statements, and related interpretations;~~

•~~unique risks associated with our offshore operations;~~

•~~political, economic and regulatory uncertainties in our international operations;~~

•~~our ability to develop new technologies and products;~~

•~~our ability to protect our intellectual property rights;~~

•~~our ability to employ and retain skilled and qualified workers;~~

•~~the level of competition in our industry;~~

•strategic operational ~~safety laws and regulations;~~

•~~international trade laws and sanctions;~~

•~~weather conditions and natural disasters;~~

•~~global or national health concerns, including health epidemics, including COVID-19;~~

•~~policy or regulatory changes domestically in the United States;~~

•~~risks and conditions that apply to Expro, which~~decisions are made by management, further adjustments may be ~~different from risks that apply to us;~~

•~~unforeseen consequences~~required which could have a material adverse impact on the Company’s consolidated financial position, results of ~~the Merger;~~

•~~failure to complete the Merger or changes in the expected timing of the completion of the Merger;~~

•~~completion of the Merger following unforeseen changes in circumstance;~~

•~~uncertainty with respect to integration~~operations and ~~realization of expected cost synergies following completion of the Merger; and~~

•~~litigation risk associated with the Merger.~~

cash flows.

These and other important factors that could affect our operating results and performance are described in (1) “Risk Factors” in Part II, Item 1A of this Form 10-Q, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2 of this Form 10-Q, and elsewhere within this Form 10-Q, (2) ~~our~~Frank's Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2021 ~~(our~~(the “Annual Report”), (3) ~~our~~Frank’s proxy statement/prospectus dated August 5, 2021 filed by with the SEC on August 6, 2021, (4) other reports and filings we make with the SEC from time to time and ~~(4)~~(5) other announcements we make from time to time. Should one or more of the risks or uncertainties described in the documents above or in this Form 10-Q occur, or should underlying assumptions prove incorrect, our actual results, performance, achievements or plans could differ materially from those expressed or implied in any forward-looking statements. All such forward-looking statements in this Form 10-Q are expressly qualified in their entirety by the cautionary statements in this section.

2523

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Item 2. ~~Management’s~~ Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of ~~our~~Frank's financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Form 10-Q and the audited consolidated financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in ~~our~~Frank's Annual Report.

The following discusses Frank’s results of operations prior to the Merger, and is not indicative of the Company’s prospective results of operations following the Merger.

This section contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in any forward-looking statement because of various factors, including those described in the sections titled ~~“Cautionary~~“Cautionary Note Regarding Forward-Looking ~~Statements”~~Statements” and ~~“Risk Factors”~~“Risk Factors” of this Form 10-Q.

~~Overview~~ Unless the context indicates otherwise, in this Quarterly Report on Form 10-Q, the terms “Expro,” “Company,” “we,” “us” and “our” refer to Expro Group Holdings N.V. and, where appropriate, its consolidated subsidiaries following the reverse merger described below. References to the terms “Frank's” or the “Predecessor Registrant” refer to Frank's International N.V., the predecessor reporting entity prior to the reverse merger described below, and references to “Legacy Expro” refer to Expro Group Holdings International Limited, the entity acquired by the Predecessor Registrant in the reverse merger.

Merger Agreement

On March 10, 2021, Frank’s and New Eagle Holdings Limited, an exempted company limited by shares incorporated under the laws of ~~Business~~

the Cayman Islands and a direct wholly owned subsidiary of Frank’s (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Legacy Expro providing for the merger of Legacy Expro with and into Merger Sub in an all-stock transaction, with Merger Sub surviving the merger as a direct, wholly owned subsidiary of Frank’s (the “Merger”). The Merger closed on October 1, 2021, and Frank's was renamed “Expro Group Holdings N.V.” Further, pursuant to the Merger Agreement, at the Effective Time, the articles of association of the Company (the “
Company Articles

~~We are~~”) were amended to increase the total authorized capital stock of the Company from 798,096,000 shares of Company Common Stock to 1,200,000,000 shares of Company Common Stock (200,000,000 shares of Company Common Stock on a post-reverse split basis) and to effect certain other amendments to the Company Articles contemplated by the Merger Agreement. The Company issued approximately 71 million shares of Company Common Stock in the Merger to Legacy Expro shareholders. On September 30, 2021, Frank’s pre-Merger board of directors (the “Prior Board”) unanimously approved a 1-for-6 reverse stock split of Frank’s common stock, which was effected on October 1, 2021. As the Merger did not close until after the end of the quarter ended September 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q reflect the financial position, results of operations and cash flows of Frank's, the Predecessor Registrant. All of the outstanding Company Common Stock share numbers, nominal value, share prices and per share amounts in this discussion and analysis have been retroactively adjusted to reflect a 1-for-6 reverse stock split for all periods presented.

Frank's Prior to the Merger

Prior to the Merger, Frank's was a global provider of highly engineered tubular services, tubular fabrication and specialty well construction and well intervention solutions to the oil and gas industry and ~~have~~had been in business for over 80 years. ~~We provide our~~Frank's provided its services and products to leading exploration and production companies in both offshore and onshore environments, with a focus on complex and technically demanding wells.

~~We conduct our~~

Frank's conducted its business through three operating segments:

•~~Tubular Running Services.~~ ~~The Tubular Running Services (“TRS”) segment~~ ~~provides~~

•

Tubular Running Services. The Tubular Running Services (“TRS”) segment provided tubular running services globally. Internationally, the TRS segment operated in the majority of the offshore oil and gas markets and also in several onshore regions with operations in approximately 40 countries on six continents. In the U.S., the TRS segment provided services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, as well as in the U.S. Gulf of Mexico. Customers in these markets are primarily large exploration and production companies, including international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies.

•

Tubulars. The Tubulars segment designed, manufactured and distributed connectors and casing attachments for large outside diameter (“OD”) heavy wall pipe. Additionally, the Tubulars segment sold large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provided specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specialized in the development, manufacture and supply of proprietary drilling tool solutions that focused on improving drilling productivity through eliminating or mitigating traditional drilling operational risks.

•

Cementing Equipment. The Cementing Equipment (“CE”) segment provided specialty equipment to enhance the safety and efficiency of rig operations. It provided specialized equipment, services and products utilized in the construction of the wellbore in both onshore and offshore environments. The product portfolio of this segment included casing accessories that served to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. The CE segment also provided services and products utilized in the construction, completion or abandonment of the wellbore. These solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore, hydraulic fracturing and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite.

Expro after the ~~TRS segment operates in~~Merger

Following completion of the Merger, the business conducted by Legacy Expro became the majority of the ~~offshore oil~~business conducted by the Company. Working for clients across the entire well life cycle, the Company is a leading provider of energy services, offering cost-effective, innovative solutions and ~~gas markets~~what the Company considered to be best-in-class safety and ~~also~~service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well integrity and intervention.

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Outlook

The outlook for the last quarter of 2021 and through 2022 indicates a continuing modest recovery in several onshore regions with operations in approximately 40 countries on six continents. In the U.S., the TRS segment provides services in the active onshore oil and gas drilling regions, including the Permian Basin, Eagle Ford Shale, Haynesville Shale, Marcellus Shale and Utica Shale, as well as in the U.S. Gulf of Mexico. Our customers in these markets are primarily large exploration and production ~~companies,~~expenditures, albeit at different rates in individual countries depending on a range of factors, including ~~international oil and gas companies, national oil and gas companies, major independents and other oilfield service companies.~~

•~~Tubulars.~~ ~~The Tubulars segment designs, manufactures and distributes connectors and casing attachments for large~~ ~~outside diameter (“OD”)~~ ~~heavy wall pipe. Additionally,~~ the Tubulars segment sells large OD pipe originally manufactured by various pipe mills, as plain end or fully fabricated with proprietary welded or thread-direct connector solutions and provides specialized fabrication and welding services in support of offshore deepwater projects, including drilling and production risers, flowlines and pipeline end terminations, as well as long-length tubular assemblies up to 400 feet in length. The Tubulars segment also specializes in the development, manufacture and supply of proprietary drilling tool solutions that focus on improving drilling productivity through eliminating or mitigating traditional drilling operational risks.

•~~Cementing Equipment.~~ The Cementing Equipment (“CE”) segment provides specialty equipment to enhance the safety and efficiency of rig operations. It provides specialized equipment, services and products utilized in the construction of the wellbore in both onshore and offshore environments. The product portfolio includes casing accessories that serve to improve the installation of casing, centralization and wellbore zonal isolation, as well as enhance cementing operations through advance wiper plug and float equipment technology. The CE segment also provides services and products utilized in the construction, completion or abandonment of the wellbore. These solutions are primarily used to isolate portions of the wellbore through the setting of barriers downhole to allow for rig evacuation in case of inclement weather, maintenance work on other rig equipment, squeeze cementing, pressure testing within the wellbore, hydraulic fracturing and temporary and permanent abandonments. These offerings improve operational efficiencies and limit non-productive time if unscheduled events are encountered at the wellsite.

~~Merger Agreement with Expro~~

On March 10, 2021, FINV and Merger Sub, a direct wholly owned subsidiary of FINV, entered into the Merger Agreement with Expro, pursuant to which Expro will merge with and into Merger Sub, with Merger Sub surviving the merger as a direct, wholly owned subsidiary of FINV. If the Merger is completed, each of the Expro Ordinary Shares, issued and outstanding immediately prior to the Effective Time, will be converted into the right to receive a number of shares of Frank’s common stock equal to the Exchange Ratio. Upon consummation of the transactions contemplated by the Merger Agreement and the Plan of Merger (as defined in the Merger Agreement), FINV expects that its current shareholders will own approximately 35% of the Combined Company after the completion of the Merger and related transactions, and current Expro shareholders will own approximately 65% of the Combined Company. Following the Merger, the name of FINV will be changed to “Expro Group Holdings N.V.” The closing of the Transactions, which is expected to occur during the third quarter of 2021, is subject to the satisfaction or waiver of closing conditions, including, among others, the requisite approval of the shareholders of each of FINV and Expro pursuant to the terms of the Merger Agreement.

In connection with the Merger Agreement, FINV, FICV and Mosing Holdings have entered into an Amended and Restated Tax Receivable Agreement (the “A&R TRA”), that amends and restates the TRA. See Note 1—Basis of Presentation in the Notes to the Unaudited Condensed Consolidated Financial Statements for additional information regarding the Merger Agreement and the A&R TRA.

~~Outlook~~

~~As we look toward recovery from the COVID-19 pandemic and balancing of OPEC-driven oversupply, we believe there may be a~~ slow but steady drawdown on global oil inventories and increasing oil production offset by a slower rate of ~~supply stockpiles~~demand growth, uncertainty about COVID-19 recovery, the impact of governmental restrictions and any new variants or a resurgence over the ~~next 18 months, driven by increasing demand as lockdown measures loosen with vaccine rollouts.~~

In the short term, uncertainty around further lockdowns may temper continued activity improvement. However, current indicators are supportive of improved market conditions for the remainder of 2021 as compared to the same period in 2020. winter period.

We expect that crude oil demand and associated customer activity will continue to ~~ramp up~~increase in the mid to long term toward pre-pandemic levels. ~~However, we~~We remain vigilant to the uncertainty that OPEC-controlled supply and U.S. and international activity levels can have on the market.

While the Gulf of Mexico is expected to remain relatively flat through 2022, operators will continue to look to ~~Frank’s~~the Company’s digital and automated technologies to drive operational efficiencies with reduced personnel. ~~Our~~The Company has had recent ~~successes~~success in bolstering ~~our~~its market share in the Gulf of Mexico with digital and automated technology that ~~removes~~remove personnel from the rig site, ~~sets a~~and as we see increased activity levels in the international markets, we are well positioned to adopt this same technology blueprint ~~for duplicating this success in international offshore~~to these markets.

We anticipate ~~our~~the Company’s U.S. land business will continue to improve through at least 2022, supported by recent commercialization of performance drilling technologies and digital solutions that increase ~~operation~~operational efficiency. In international markets, we expect ~~offshore~~exploration activity to become more near-field and infrastructure led in the near- to intermediate-term, with field developments also accelerated to maximize the economic recovery. Consistent with past recoveries, incremental operational expenditures and brownfield enhancement programs are expected to be an initial area of customer focus and, in select markets, we are seeing some signs of a recovery in intervention and well integrity projects, execution of which is a traditional strength of Legacy Expro supported by its subsea well access and well assurance technologies. We expect to see ~~continued~~ moderate growth ~~in line with market trends.~~

~~How We Evaluate Our~~of these service lines over the following periods.

Evaluation of Operations

~~We use~~

Prior to the Merger, management used a number of financial and operational measures to routinely analyze and evaluate the performance of ~~our business,~~the Frank's businesses, including revenue, Adjusted EBITDA, Adjusted EBITDA margin and safety performance.

Revenue

~~We analyze our~~

Company management analyzes revenue growth by comparing actual monthly revenue to ~~our~~ internal projections for each month to assess ~~our~~business performance. WeManagement also ~~assess~~assesses incremental changes in ~~our~~ monthly revenue across ~~our~~ operating segments to identify potential areas for improvement.

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Adjusted EBITDA and Adjusted EBITDA Margin

~~We define~~

Frank's defines Adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, unrealized and realized gains or losses, ~~the effects of the tax receivable agreement (“TRA”),~~ other non-cash adjustments and other charges or credits. Adjusted EBITDA margin reflects ~~our~~ Adjusted EBITDA as a percentage of ~~our~~ revenue. ~~We review~~Management reviews Adjusted EBITDA and Adjusted EBITDA margin on both a consolidated basis and on a segment basis. ~~We use~~Frank's uses Adjusted EBITDA and Adjusted EBITDA margin to assess ~~our~~its financial performance because it allows usmanagement to compare ~~our~~ operating performance on a consistent basis across periods by removing the effects of ~~our~~Frank's capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. Adjusted EBITDA and Adjusted EBITDA margin have limitations as analytical tools and should not be considered as an alternative to net income (loss), operating income (loss), cash flow from operating activities or any other measure of financial performance presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”).

The following table presents a reconciliation of net loss to Adjusted EBITDA and Adjusted EBITDA margin for each of the periods presented (in thousands):

Three Months Ended
March 31,
2021 2020
Net loss $ (23,886) $ (85,978)
Goodwill impairment — 57,146
Severance and other charges, net 7,376 20,725
Interest (income) expense, net 287 (533)
Depreciation and amortization 16,107 19,718
Income tax expense (benefit) 1,070 (15,563)
(Gain) loss on disposal of assets (182) 60
Foreign currency loss 2,868 9,892
Charges and credits (1)
3,013 1,592
Adjusted EBITDA $ 6,653 $ 7,059
Adjusted EBITDA margin 7.0 % 5.7 %

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020

Net loss	$	(15,081	)	$	(27,791	)	$	(51,583	)	$	(148,014	)
Goodwill impairment		—			—			—			57,146
Severance and other charges, net		2,958			3,549			13,733			29,436
Interest (income) expense, net		167			93			555			(618	)
Depreciation and amortization		14,092			15,950			45,531			52,920
Income tax expense (benefit)		3,969			6,395			11,812			(182	)
Gain on disposal of assets		(72	)		(308	)		(1,733	)		(898	)
Foreign currency (gain) loss		4,548			(2,334	)		4,698			5,865
Charges and credits (1)		3,197			3,459			9,830			8,725
Adjusted EBITDA	$	13,778		$	(987	)	$	32,843		$	4,380
Adjusted EBITDA margin		12.0	%		(1.2	)%		10.3	%		1.5	%

⁽¹⁾					Comprised of Equity-based compensation expense (for the three months ended September 30, 2021 and 2020: $3,307 and $2,773, respectively, and for the nine months ended September 30, 2021 and 2020: $9,604 and $8,434, respectively), Unrealized and realized (gains) losses (for the three months ended September 30, 2021 and 2020: $(199) and $113, respectively, and for the nine months ended September 30, 2021 and 2020: $7 and $(1,480), respectively) and Investigation-related matters (for the three months ended September 30, 2021 and 2020: $89 and $573, respectively, and for the nine months ended September 30, 2021 and 2020: $219 and $1,771, respectively).

~~(1)~~ Comprised of Equity-based compensation expense (for the three months ended March 31, 2021 and 2020: $2,872 and $2,146, respectively), Unrealized and realized (gains) losses (for the three months ended March 31, 2021 and 2020: $99 and $(1,704), respectively), and Investigation-related matters (for the three months ended March 31, 2021 and 2020: $42 and $1,150, respectively).

For a reconciliation of ~~our~~ Adjusted EBITDA on a segment basis to the most comparable measure calculated in accordance with GAAP, see “Operating Segment Results.”

Safety and Quality Performance

Safety is one of our primary core values. Maintaining a strong safety record is a critical component of our operational success. Many of our customers have safety standards we must satisfy before we can perform services. As a result, we continually monitor our safety performance through the evaluation of safety observations, job and customer surveys, and safety data. The primary measure for ~~our~~Frank's safety performance is the tracking of the Total Recordable Incident Rate which is reviewed on both a monthly and rolling twelve-month basis.

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Consolidated Results of Operations

The following table presents ~~our~~Frank's consolidated results for the periods presented (in thousands):

Three Months Ended
March 31,
2021 2020
(Unaudited)
Revenue:
Services $ 81,523 $ 105,083
Products
13,288 18,409
Total revenue 94,811 123,492
Operating expenses:
Cost of revenue, exclusive of depreciation and amortization
Services 63,935 79,380
Products
10,914 13,988
General and administrative expenses 16,447 26,683
Depreciation and amortization 16,107 19,718
Goodwill impairment — 57,146
Severance and other charges, net 7,376 20,725
(Gain) loss on disposal of assets (182) 60
Operating loss (19,786) (94,208)
Other income (expense):
Other income, net 125 2,026
Interest income (expense), net (287) 533
Foreign currency loss (2,868) (9,892)
Total other expense (3,030) (7,333)
Loss before income taxes (22,816) (101,541)
Income tax expense (benefit) 1,070 (15,563)
Net loss $ (23,886) $ (85,978)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
	(Unaudited)
Revenue:
Services	$	95,821		$	66,418		$	267,864		$	246,084
Products		19,120			17,999			49,729			47,926
Total revenue		114,941			84,417			317,593			294,010

Operating expenses:
Cost of revenue, exclusive of depreciation and amortization
Services		70,627			56,574			203,181			197,005
Products		15,489			13,733			40,811			36,007
General and administrative expenses		18,591			18,665			51,465			67,634
Depreciation and amortization		14,092			15,950			45,531			52,920
Goodwill impairment		—			—			—			57,146
Severance and other charges, net		2,958			3,549			13,733			29,436
Gain on disposal of assets		(72	)		(308	)		(1,733	)		(898	)
Operating loss		(6,744	)		(23,746	)		(35,395	)		(145,240	)

Other income (expense):
Other income, net		347			109			877			2,291
Interest income (expense), net		(167	)		(93	)		(555	)		618
Foreign currency gain (loss)		(4,548	)		2,334			(4,698	)		(5,865	)
Total other income (expense)		(4,368	)		2,350			(4,376	)		(2,956	)

Loss before income taxes		(11,112	)		(21,396	)		(39,771	)		(148,196	)
Income tax expense (benefit)		3,969			6,395			11,812			(182	)
Net loss	$	(15,081	)	$	(27,791	)	$	(51,583	)	$	(148,014	)

Three Months Ended ~~March 31,~~September 30, 2021 Compared to Three Months Ended ~~March 31,~~September 30, 2020

Revenue. Revenue from external customers, excluding intersegment sales, for the three months ended ~~March 31,~~September 30, 2021 ~~decreased~~increased by ~~$28.7~~$30.5 million, or ~~23.2%~~36.2%, to ~~$94.8~~$114.9 million from ~~$123.5~~$84.4 million for the three months ended ~~March 31,~~September 30, 2020. Revenue ~~decreased~~increased across all segments ~~due to~~as the prior year was significantly impacted by the onset of the COVID-19 pandemic and ~~the sharp~~resulting decline in oil prices. Revenue for our segments is discussed separately below under the heading “~~Operating~~“Operating Segment Results.”

Cost of revenue, exclusive of depreciation and amortization. Cost of revenue for the three months ended ~~March 31,~~September 30, 2021 ~~decreased~~increased by ~~$18.6~~$15.8 million, or ~~19.9%~~22.5%, to ~~$74.8~~$86.1 million from ~~$93.4~~$70.3 million for the three months ended ~~March 31,~~September 30, 2020. The ~~decrease~~increase was driven by ~~lower~~improved activity levels ~~and mix of work in~~as compared to the ~~TRS, Tubulars and CE segments.~~

prior year.

General and administrative expenses. General and administrative expenses for the three months ended ~~March 31,~~September 30, 2021 ~~decreased by $10.3 million, or 38.6%,~~were flat as compared to ~~$16.4 million from $26.7 million for~~ the three months ended ~~March 31,~~September 30, 2020 due to ~~the~~previously implemented restructuring and cost cutting ~~measures we implemented during 2020.~~

measures.

Depreciation and amortization.Depreciation and amortization for the three months ended ~~March 31,~~September 30, 2021 decreased by ~~$3.6~~$1.9 million, or ~~18.3%~~11.6%, to ~~$16.1~~$14.1 million from ~~$19.7~~$16.0 million for the three months ended ~~March 31,~~September 30, 2020, as a result of a lower depreciable base.

Severance and other charges, net. Severance and other charges, net for the three months ended September 30, 2021 decreased by $0.6 million, or 16.7%, to $2.9 million from $3.5 million for the three months ended September 30, 2020. Severance and other charges, net for the three months ended September 30, 2021 benefited from lower severance costs as the prior year was negatively impacted by the effects of COVID-19. See Note 15—Severance and Other Charges, net in the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Foreign currency gain (loss). Foreign currency gain (loss) for the three months ended September 30, 2021 changed by $6.9 million, to a loss of $4.5 million from a gain of $2.3 million for the three months ended September 30, 2020. The change in foreign currency results year-over-year was primarily driven by weakening of the U.S. dollar in the current period as compared to the prior year period against the Norwegian Krone and Pound Sterling.

Income tax expense. Income tax expense for the three months ended September 30, 2021 decreased by $2.4 million to $4.0 million from $6.4 million for the three months ended September 30, 2020, primarily as a result of a change in the jurisdictional sources of income, namely a decrease in revenue in certain regions that apply withholding or revenue based taxes. We are subject to many U.S. and foreign tax jurisdictions and many tax agreements and treaties among the various taxing authorities. Our operations in these jurisdictions are taxed on various bases such as income before taxes, deemed profits (which is generally determined using a percentage of revenue rather than profits) and withholding taxes based on revenue; consequently, the relationship between our pre-tax income from operations and our income tax provision varies from period to period based on the overall effective tax rate for all jurisdictions in which we operate.

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Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020

Revenue. Revenue from external customers, excluding intersegment sales, for the nine months ended September 30, 2021 increased by $23.6 million, or 8.0%, to $317.6 million from $294.0 million for the nine months ended September 30, 2020. Revenue increased across all segments as the prior year was significantly impacted by the onset of the COVID-19 pandemic and resulting decline in oil prices. Revenue for our segments is discussed separately below under the heading “Operating Segment Results.”

Cost of revenue, exclusive of depreciation and amortization. Cost of revenue for the nine months ended September 30, 2021 increased by $11.0 million, or 4.7%, to $244.0 million from $233.0 million for the nine months ended September 30, 2020. The increase was driven by improved activity levels as compared to the prior year period in Frank's TRS segment.

General and administrative expenses. General and administrative expenses for the nine months ended September 30, 2021 decreased by $16.2 million, or 23.9%, to $51.4 million from $67.6 million for the nine months ended September 30, 2020 due to previously implemented restructuring and cost cutting measures.

Depreciation and amortization. Depreciation and amortization for the nine months ended September 30, 2021 decreased by $7.4 million, or 14.0%, to $45.5 million from $52.9 million for the nine months ended September 30, 2020, as a result of a lower depreciable base and less intangible asset amortization.

Goodwill impairment. ~~There was no goodwill impairment charge during the~~ ~~three months ended March 31, 2021~~. We recognized a goodwill impairment of $57.1 million during the ~~three~~nine months ended ~~March 31, 2020~~.September 30, 2020. No goodwill impairment was recognized during the nine months ended September 30, 2021. See Note 6—Goodwill and Intangible Assets in the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Severance and other charges, net. Severance and other charges, net for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 decreased by ~~$13.3~~$15.7 million to ~~$7.4~~$13.7 million from ~~$20.7~~$29.4 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2020. Severance and other charges, net for the ~~three~~nine months ended~~March 31,~~ September 30, 2020 was unfavorably impacted by fixed asset impairment charges of $15.5 million and intangible asset impairments of $4.7 million, primarily driven by COVID-19-related activity disruptions and customer spending cuts in response to falling oil prices. ~~Severance and other charges, net for the~~ ~~three months ended March 31, 2021 includes~~ ~~$6.8 million of mergers and acquisition costs associated with the pending merger with Expro.~~See Note 15—Severance and Other Charges, net in the Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Foreign currency ~~loss~~gain (loss). Foreign currency loss for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 decreased by ~~$7.0~~$1.2 million, or 19.9%, to ~~$2.9~~$4.7 million compared to ~~$9.9~~$5.9 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2020. ~~The change in foreign currency~~Current year results ~~year-over-year was primarily driven~~were negatively impacted by ~~reduced strengthening~~weakening of the U.S. dollar inagainst the ~~current period as compared to~~Norwegian Krone and Pound Sterling. Prior year results were negatively impacted by the ~~prior year period.~~

effects of COVID-19.

Income tax expense (benefit). Income tax expense (benefit) for the ~~three~~nine months ended ~~March 31,~~September 30, 2021 changed by ~~$16.7~~$12.0 million to an expense of ~~$1.1~~$11.8 million from a benefit of ~~$15.6~~$0.2 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2020. The ~~variance in effective tax rates compared to the same period last year is due to the beneficial impact in the~~ prior year period benefited from the 5-year net operating loss carryback provision included in the ~~Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) as well as a change in the geographical mix~~CARES Act.

Table of ~~income.~~Contents

Operating Segment Results

The following table presents revenue and Adjusted EBITDA by segment (in thousands):

Three Months Ended
March 31,
2021 2020
Revenue:
Tubular Running Services $ 66,285 $ 89,497
Tubulars 11,669 12,542
Cementing Equipment 16,857 21,453
Total $ 94,811 $ 123,492
Segment Adjusted EBITDA (1):
Tubular Running Services $ 8,128 $ 13,305
Tubulars 639 1,396
Cementing Equipment 4,795 2,544
Corporate (2)
(6,909) (10,186)
$ 6,653 $ 7,059

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Revenue:
Tubular Running Services	$	77,625		$	52,926		$	215,805		$	204,750
Tubulars		18,784			16,483			47,019			37,766
Cementing Equipment		18,532			15,008			54,769			51,494
Total	$	114,941		$	84,417		$	317,593		$	294,010

Segment Adjusted EBITDA (1):
Tubular Running Services	$	11,912		$	982		$	29,790		$	18,336
Tubulars		2,735			1,806			7,481			3,883
Cementing Equipment		6,389			3,376			16,036			6,806
Corporate (2)		(7,258	)		(7,151	)		(20,464	)		(24,645	)
	$	13,778		$	(987	)	$	32,843		$	4,380

⁽¹⁾	Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. (For a reconciliation of Adjusted EBITDA, see “Adjusted EBITDA and Adjusted EBITDA Margin”).

⁽²⁾							Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.

~~(1)~~Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. (For a reconciliation of our Adjusted EBITDA, see “~~Adjusted EBITDA and Adjusted EBITDA Margin~~”).

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~~(2)Includes certain expenses not attributable to a particular segment, such as costs related to support functions and corporate executives.~~

Three Months Ended ~~March 31,~~September 30, 2021 Compared to Three Months Ended ~~March 31,~~September 30, 2020

Tubular Running Services

Revenue for the TRS segment was ~~$66.3~~$77.6 million for the three months ended ~~March 31,~~September 30, 2021,~~, a decrease~~ an increase of ~~$23.2~~$24.7 million, or ~~25.9%~~46.7%, compared to ~~$89.5~~$52.9 million for the same period in 2020. The ~~decrease~~increase was driven by improved activity levels across most regions as the prior year was significantly impacted by COVID-19-related activity disruptions and customer spending cuts in ~~most offshore markets~~response to falling oil prices, primarily in Africa, Europe, and the U.S. land ~~market.~~

and offshore markets.

Adjusted EBITDA for the TRS segment was ~~$8.1~~$11.9 million for the three months ended ~~March 31,~~September 30, 2021,~~, a decrease~~ an increase of ~~$5.2~~$10.9 million, ~~or 39.1%,~~ compared to ~~$13.3~~$1.0 million for the same period in 2020. ~~Segment results were negatively impacted by~~Improved activity ~~declines across most offshore markets~~levels in Africa, Europe, and the U.S. land ~~market.~~

and offshore markets contributed to the increase.

Tubulars

Revenue for the Tubulars segment was ~~$11.7~~$18.8 million for the three months ended ~~March 31,~~September 30, 2021,~~, a decrease~~ an increase of ~~$0.8~~$2.3 million, or ~~6.4%~~14.0%, compared to ~~$12.5~~$16.5 million for the same period in 2020, primarily as a result of ~~lower drilling tools~~improved activity levels and ~~lower~~increased tubular product sales ~~during~~as compared to the ~~current period.~~

prior year, which was impacted by COVID-19-related activity disruptions and customer spending cuts in response to falling oil prices.

Adjusted EBITDA for the Tubulars segment was ~~$0.6~~$2.7 million for the three months ended ~~March 31,~~September 30, 2021,~~, a decrease~~ an increase of ~~$0.8~~$0.9 million, or ~~57.1%~~51.4%, compared to ~~$1.4 million for the same period in 2020. A decrease in high margin drilling tools activity and lower tubular sales impacted the current period.~~

~~Cementing Equipment~~

~~Revenue for the CE segment was $16.9 million for the~~ ~~three months ended March 31, 2021, a decrease of $4.6 million, or 21.4%, compared to $21.5 million for the same period in 2020, driven by lower drilling activity and product sales in the U.S.~~

~~Adjusted EBITDA for the CE segment was $4.8 million for the~~ ~~three months ended March 31, 2021, an increase of $2.3 million, or 92.0%, compared to $2.5~~$1.8 million for the same period in 2020, primarily due to the increase in revenue.

Cementing Equipment

Revenue for the CE segment was $18.5 million for the three months ended September 30, 2021, an increase of $3.5 million, or 23.5%, compared to $15.0 million for the same period in 2020, driven by improved drilling activity and increased product sales in the U.S. as a result of the recovery in oil prices.

Adjusted EBITDA for the CE segment was $6.4 million for the three months ended September 30, 2021, an increase of $3.0 million, or 89.2%, compared to $3.4 million for the same period in 2020, due to increased revenue, particularly in the U.S. offshore market and ongoing cost ~~cutting measures that more than offset lower revenue.~~

management.

Corporate

Adjusted EBITDA for Corporate was a loss of ~~$6.9~~$7.3 million for the three months ended ~~March 31,~~September 30, 2021, and was flat compared to the same period in 2020 primarily due to restructuring and previously implemented cost cutting measures.

Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020

Tubular Running Services

Revenue for the TRS segment was $215.8 million for the nine months ended September 30, 2021, an increase of $11.0 million, or 5.4%, compared to $204.8 million for the same period in 2020. The increase was driven by improved activity levels across Africa and Europe as the prior year was significantly impacted by COVID-19-related activity disruptions and customer spending cuts in response to falling oil prices.

Adjusted EBITDA for the TRS segment was $29.8 million for the nine months ended September 30, 2021, an ~~improvement~~increase of $11.5 million, or 62.5%, compared to $18.3 million for the same period in 2020. Segment results for 2021 were positively impacted by improved activity levels and cost cutting measures implemented after the onset of the pandemic.

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Tubulars

Revenue for the Tubulars segment was $47.0 million for the nine months ended September 30, 2021, an increase of $9.2 million, or 24.5%, compared to $37.8 million for the same period in 2020, primarily as a result of an increase in Gulf of Mexico and international tubular products sales.

Adjusted EBITDA for the Tubulars segment was $7.5 million for the nine months ended September 30, 2021, an increase of $3.6 million, or 92.7%, compared to $3.9 million for the same period in 2020. An increase in high margin Gulf of Mexico and international tubular products sales contributed to the improvement.

Cementing Equipment

Revenue for the CE segment was $54.8 million for the nine months ended September 30, 2021, an increase of $3.3 million, or ~~32.4%~~6.4%, compared to $51.5 million for the same period in 2020, driven by improved drilling activity and increased product sales in the U.S. land and offshore markets as a result of the recovery in oil prices.

Adjusted EBITDA for the CE segment was $16.0 million for the nine months ended September 30, 2021, an increase of $9.2 million, or 135.6%, compared to $6.8 million for the same period in 2020, primarily due to improved activity levels and cost cutting measures implemented after the onset of the pandemic.

Corporate

Adjusted EBITDA for Corporate was a loss of $20.5 million for the nine months ended September 30, 2021, an improvement of $4.2 million, or 17.0%, compared to a loss of ~~$10.2~~$24.6 million for the same period in 2020, primarily due to lower costs as a result of restructuring and cost cutting measures.

Liquidity and Capital Resources

Liquidity

At ~~March 31,~~September 30, 2021, weFrank's had cash and cash equivalents ~~and and short-term investments~~ of ~~$193.6~~$203.0 million and no debt. ~~Our~~Frank's primary sources of liquidity to date have been cash flows from ~~operations. Our~~operations and its primary uses of capital have been for ~~organic growth~~ capital expenditures. WeManagement continually ~~monitor~~monitors potential capital sources, including equity and debt financing, in order to meet ~~our~~ investment and target liquidity requirements.

The COVID-19 pandemic has significantly reduced economic activity levels across the globe, which has resulted in lower demand for oil and natural gas, as well as for our services and products. The reduced demand for our services and products has had, and may continue to have, a material adverse impact on our business, results of operations and financial condition. In consideration of these risks, we are undertaking additional measures to protect liquidity. These

~~measures include increased focus on collection of receivables, enhanced customer credit review, special measures to reduce risks of high-cost inventory items, and enhanced cash reporting requirements.~~

~~Our~~Prior Board ~~has~~ authorized a program to repurchase ~~our common stock~~Company Common Stock from time to time. Approximately ~~$38,502,322~~$38.5 million remained authorized for repurchases as of ~~March 31, 2021;~~September 30, 2021, subject to the limitation set in ~~our~~the shareholder authorization for repurchases of ~~our common stock,~~Company Common Stock, which is currently 10% of the common stock outstanding as of ~~April 30, 2020.~~August 3, 2021. From the inception of this program in February 2020, ~~to date, we repurchased 570,044~~95,007 shares of ~~our~~ common stock were repurchased for a total cost of approximately $1.5 million. This program was suspended during the second quarter of 2020 due to the impacts of COVID-19 and commodity price declines and will be revisited when market conditions stabilize sufficiently to provide greater clarity to anticipated business results. We expect that following the Merger, the board of directors of the Combined Company will reevaluate this program.

~~Our total~~declines.

Total capital expenditures associated with Frank's product lines are estimated to be approximately ~~$25.0~~$15 million in 2021, of which ~~we expect~~ approximately 90% ~~will~~are expected to be used for the purchase and manufacture of equipment and 10% for other property, plant and equipment. The actual amount of capital expenditures for the manufacture of equipment may fluctuate based on market conditions and timing of deliveries. During the ~~three~~nine months ended ~~March 31,~~September 30, 2021 and 2020, cash expenditures related to property, plant and equipment were ~~$2.3~~$7.6 million and ~~$10.0~~$25.7 million, respectively, all of which were funded from internally generated funds. ~~We believe our~~Management believes cash on hand should be sufficient to fund ~~our~~ capital expenditure and liquidity requirements for the remainder of 2021.

We ~~expect that following~~review from time to time possible acquisition opportunities as an important element of our long-term business strategy. The timing, size or success of any acquisition efforts and the ~~Merger,~~associated potential capital commitments are unpredictable and uncertain. We may seek to fund all or part of any such efforts with cash on hand and proceeds from debt and/or equity issuances and may issue equity directly to the ~~board~~sellers. Our ability to obtain capital for additional projects to implement our growth strategy over the longer term will depend on our future operating performance, financial condition and, more broadly, on the availability of ~~directors~~equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global financial markets and other factors, many of which are beyond our control. In addition, any additional debt service requirements we take on could be based on higher interest rates and shorter maturities and could impose a significant burden on our results of operations and financial condition, and the ~~Combined Company will reevaluate our capital expenditures plan.~~

issuance of additional equity securities could result in significant dilution to shareholders.

Credit Facility

~~Asset Based Revolving Credit Facility~~

On November 5, 2018, FICV, Frank’s International, LLC and Blackhawk, as borrowers, and FINV, certain of FINV’s subsidiaries, including FICV, Frank’s International, LLC, Blackhawk, Frank’s International GP, LLC, Frank’s International, LP, Frank’s International LP B.V., Frank’s International Partners B.V., Frank’s International Management B.V., Blackhawk Intermediate Holdings, LLC, Blackhawk Specialty Tools, LLC, and Trinity Tool Rentals, L.L.C., as guarantors, entered into a ~~five-year~~5-year senior secured revolving credit facility (the “ABL Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent, ~~(the “ABL Agent”),~~ and other financial institutions as lenders with total commitments of $100.0 million including up to $15.0 million available for letters of credit. Subject to the terms of the ABL Credit Facility, we have the ability to increase the commitments to $200.0 million. The maximum amount that the Company may borrow under the ABL Credit Facility is subject to a borrowing base, which is based on a percentage of certain eligible accounts receivable and eligible inventory, subject to customary reserves and other adjustments.

The ABL Credit Facility contains various covenants and restrictive provisions which limit, subject to certain customary exceptions and thresholds, FINV’s ability to, among other things, (1) enter into asset sales; (2) incur additional indebtedness; (3) make investments, acquisitions, or loans and create or incur liens; (4) pay certain dividends or make other distributions and (5) engage in transactions with affiliates. The ABL Credit Facility also requires FINV to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 based on the ratio of (a) consolidated EBITDA (as defined therein) minus unfinanced capital expenditures to (b) Fixed Charges (as defined therein), when either (i) an event of default occurs under the ABL Credit Facility or (ii) availability under the ABL Credit Facility falls for at least two consecutive calendar days below the greater of (A) $12.5 million and (B) 15% of the lesser of the borrowing base and aggregate commitments (a “FCCR Trigger Event”). Accounts receivable received by FINV’s U.S. subsidiaries that are parties to the ABL Credit Facility will be deposited into deposit accounts subject to deposit control agreements in favor of the ABL Agent. After a FCCR Trigger Event, these deposit accounts would be subject to “springing” cash dominion. After a FCCR Trigger Event, the Company will be subject to compliance with the fixed charge coverage ratio and “springing” cash dominion until no default exists under the ABL Credit Facility and availability under the facility for the preceding thirty consecutive days has been equal to at least the greater of (x) ~~$12.5 million~~ ~~and (y)~~ ~~15%~~ ~~of the lesser of the borrowing base and the aggregate commitments.~~ If FINV fails to perform its obligations under the agreement that results in an event of default, the commitments under the ABL Credit Facility could be terminated and any outstanding borrowings under the ABL Credit Facility may be declared immediately due and payable. The ABL Credit Facility also contains cross default provisions that apply to FINV’s other indebtedness.

As of ~~March 31,~~September 30, 2021, FINV had no borrowings outstanding under the ABL Credit ~~Facility, letters of credit outstanding of $10.3 million and availability of $23.5 million. At this time, due to our expected abilityto fund our capital expenditure and liquidity requirements from cash~~Facility.

In connection with the Merger, on ~~hand, we do not anticipate a need to borrow under~~October 1, 2021, the Company terminated the ABL Credit Facility ~~during~~and entered into the ~~remainder~~New Credit Facility (defined below).

On October 1, 2021, the Company and certain of ~~2021. Further, we do not believe that an FCCR Trigger Event will occur in the remainder of 2021.~~

~~In connection with the closing of the Merger, Frank’s expects that the Combined Company will enter~~its subsidiaries, including Exploration and Production Services (Holdings) Limited and Expro Holdings US Inc., as borrowers, entered into a ~~new~~senior secured revolving credit facility (the “New Credit Facility”) with DNB Bank ASA, London Branch, as agent, and ~~terminate or otherwise replace~~other financial institutions as lenders with an aggregate commitment of $200.0 million with up to $130.0 million available for drawdowns as loans and up to $70.0 million for bonds and guarantees. Subject to the ~~existing Frank’s~~terms of the New Credit Facility, the Company has the ability to increase the commitments to $250.0 million. Proceeds of the New Credit Facility may be used for general corporate and ~~Expro credit facilities.~~working capital purposes.

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Tax Receivable Agreement and Amended &and Restated Tax Receivable Agreement

Mosing Holdings, LLC, a Delaware limited liability company (“Mosing Holdings”), converted all of its shares of Frank's Series A convertible preferred stock into shares of Frank’s common stock on August 26, 2016, in connection with its delivery to FINV of all of its interests in FICV (the “Conversion”). As a result of an election under Section 754 of the Internal Revenue Code made by FICV, the Conversion resulted in an adjustment to the tax basis of the tangible and intangible assets of FICV with respect to the portion of FICV transferred to FINV by Mosing Holdings. These adjustments are solely allocable to FINV. The adjustments to the tax basis of the tangible and intangible assets of FICV described above would not have been available absent the Conversion. The basis adjustments may reduce the amount of tax that FINV would otherwise be required to pay in the future. These basis adjustments may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets.

The tax receivable agreement (the “Original TRA”) that FINV entered into ~~the TRA~~ with FICV and Mosing Holdings in connection with ~~our IPO. The TRA~~FINV’s initial public offering (“IPO”) generally ~~provides~~provided for the payment by FINV to Mosing Holdings of 85% of the net cash savings, if any, in U.S. federal, state and local income tax and franchise tax that FINV actually ~~realizes~~realize (or isare deemed to realize in certain circumstances) in periods after ~~our~~FINV’s IPO as a result of (i) tax basis increases resulting from the Conversion and (ii) imputed interest deemed to be paid by FINV as a result of, and additional tax basis arising from, payments under the Original TRA. ~~We will retain~~Frank's retained the benefit of the remaining 15% of these cash savings, if any. Payments FINV makes under the TRA will be increased by any interest accrued from the due date (without extensions) of the corresponding tax return to the date of payment specified by the TRA. The payments under the TRA will not be conditioned upon a holder of rights under the TRA having a continued ownership interest in FINV. As of April 29, 2021, based on the best information available to us, the Mosing family collectively owns approximately 47% of our common shares.

If FINV elects to terminate the TRA early, which it may do in its sole discretion (or if it terminates early as a result of our breach), it would be required to make a substantial, immediate lump-sum payment equal to the present value of the hypothetical future payments that could be required to be paid under the TRA (based upon certain assumptions and deemed events set forth in the TRA, including the assumption that it has sufficient taxable income to fully utilize such benefits), determined by applying a discount rate equal to the long-term Treasury rate in effect on the applicable date plus 300 basis points. Any early termination payment may be made significantly in advance of the actual realization, if any, of such future benefits. In addition, payments due under the TRA will be similarly accelerated following certain mergers or other changes of control.

In certain circumstances, FINV may be required to make payments under the TRA that it has entered into with Mosing Holdings. In most circumstances, these payments will be associated with the actual cash savings that FINV recognizes from tax benefits resulting from the Conversion, which would reduce the actual tax benefit to FINV. If FINV was to elect to exercise its sole right to terminate the TRA early or enter into certain change of control transactions, FINV may incur payment obligations prior to the time it actually incurs any tax benefit. In those circumstances, FINV would need to pay the amounts out of cash on hand, finance the payments or refrain from incurring the obligation (including by not entering into a change of control transaction). Though we do not have any present intention of incurring an advance payment under the TRA (other than as described below with respect to the

A&R TRA), based on our current liquidity and our expected ability to access debt and equity financing, we believe FINV would be able to make such a payment if necessary. Any such payment could reduce our cash on hand and our borrowing availability, however, which would also reduce the amount of cash available to operate our business, to fund capital expenditures and to be paid as dividends to our stockholders, among other things.

In connection with the Merger Agreement, FINV, FICV and Mosing Holdings ~~have~~ entered into ~~the A~~that certain Amended and Restated Tax Receivable Agreement, dated as of March 10, 2021 (the “A&R ~~TRA.~~TRA”). Pursuant to the A&R TRA, ~~FINV, FICV and Mosing Holdings have agreed, among other things~~on October 1, 2021, the Company made a payment of $15 million cash to settle the early termination payment ~~obligation~~obligations that would otherwise be owed to Mosing Holdings under the Original TRA as a result of the ~~Merger~~Merger. The A&R TRA also provides for other contingent payments to be made by the ~~payment by FINV~~Company to Mosing Holdings ~~of (i) $15 million cash at the closing of the Transactions and (ii) certain other contingent payments~~ in the future in the event the ~~Combined~~ Company realizes cash tax savings from tax attributes covered under the Original TRA during the ten year period following ~~the Closing Date~~October 1, 2021 in excess of $18,057,000, as more fully described in the A&R TRA. The terms of the A&R TRA are conditioned upon and subject to the closing of the Transactions and the payment to Mosing Holdings of the $15 million cash payment at the closing of the Transactions. If such conditions do not occur, the A&R TRA will be terminated and will be null and void, and the TRA will remain in effect in accordance with its terms.$18,057,000. Please see Note ~~11—Related Party Transactions~~17—Subsequent Events in the Notes to Unaudited Condensed Consolidated Financial ~~Statements.~~Statements for additional details.

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Cash Flows from Operating, Investing and Financing Activities

Cash flows from ~~our~~Frank's operations, investing and financing activities are summarized below (in thousands):

Three Months Ended
March 31,
2021 2020
Operating activities $ (15,481) $ (22,252)
Investing activities (1,956) (10,039)
Financing activities (2,165) (1,521)
(19,602) (33,812)
Effect of exchange rate changes on cash 1,350 9,327
Net decrease in cash, cash equivalents and restricted cash $ (18,252) $ (24,485)

	Nine Months Ended
	September 30,
	2021			2020
Operating activities	$	(12,196	)	$	25,315
Investing activities		4,589			(16,209	)
Financing activities		(2,671	)		(1,689	)
		(10,278	)		7,417
Effect of exchange rate changes on cash		3,770			3,267
Net increase (decrease) in cash, cash equivalents and restricted cash	$	(6,508	)	$	10,684

Statements of cash flows for entities with international operations that use the local currency as the functional currency exclude the effects of the changes in foreign currency exchange rates that occur during any given year, as these are noncash changes. As a result, changes reflected in certain accounts on the condensed consolidated

statements of cash flows may not reflect the changes in corresponding accounts on the condensed consolidated balance sheets.

Operating Activities

Cash flow ~~used in~~provided by (used in) operating activities was ~~$15.5~~$(12.2) million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021, compared to ~~$22.3~~$25.3 million for the same period in 2020. The change in cash flow from operating activities of ~~$6.8~~$37.5 million was primarily a result of unfavorable changes in accounts receivable and inventories, partially offset by favorable changes in accounts payable and accrued liabilities. Overall, changes in accounts receivable and inventories, net of ~~$9.3 million and~~ accounts payable and accrued liabilities resulted in a use of ~~$24.1~~cash for the nine months ended September 30, 2021 of $15.2 million ~~partially offset by unfavorable changes in inventories~~and a source of ~~$10.6~~cash for the nine months ended September 30, 2020 of $37.2 million.

Investing Activities

Cash flow ~~used in~~provided by (used in) investing activities was ~~$2.0~~$4.6 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021, compared to ~~$10.0~~$(16.2) million in the same period in 2020, a year-over-year ~~decrease~~change of ~~$8.0~~$20.8 million primarily due to a ~~$7.6~~decrease of $18.1 million ~~decrease~~ in the purchases of property, plant, ~~equipment.~~

and equipment and an increase in net proceeds from investments of $7.5 million.

Financing Activities

Cash flow used in financing activities was ~~$2.2~~$2.7 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2021, compared to ~~$1.5~~$1.7 million in the same period in 2020. The increase in cash flow used in financing activities of ~~$0.7~~$1.0 million was due to increased repayment of borrowings of $1.6 million and an increase of $0.8 million of treasury shares withheld for ~~employee~~ taxes, ~~of $0.8 million and increased repayment of borrowings of $0.7 million,~~ partially offset by repurchases under our publicly announced share repurchase program of ~~$1.0~~$1.5 million during the ~~three~~nine months ended ~~March 31, 2020 that did not reoccur during 2021.~~September 30, 2020.

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Off-Balance Sheet Arrangements

~~We do~~

Frank's did not have any material off-balance sheet arrangements as of September 30, 2021, with the exception of purchase obligations.

Critical Accounting Policies

There were no changes to ~~our~~Frank's significant accounting policies from those disclosed in ~~our~~the Annual Report.

Impact of Recent Accounting Pronouncements

Refer to Note 1—Basis of Presentation in the Notes to Unaudited Condensed Consolidated Financial Statements for a discussion of accounting standards we recently adopted or that will be required to ~~adopt.~~

be adopted.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For quantitative and qualitative disclosures about market risk, see Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in ~~our~~the Annual Report. ~~Our~~Frank's exposure to market risk has not changed materially since December 31, 2020.

Item 4. Controls and Procedures

~~(a) Evaluation of Disclosure Controls and Procedures.~~

(a)

Evaluation of Disclosure Controls and Procedures.

As required by Rule 13a-15(b) of the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of ~~our~~Frank's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Form 10-Q. ~~Our~~Frank's disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure, and such information is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon the evaluation, our principal executive officer and principal financial officer have concluded that ~~our~~Frank's disclosure controls and procedures were effective as of ~~March 31,~~September 30, 2021 at the reasonable assurance level.

~~(b) Change in Internal Control Over Financial Reporting.~~

(b)

Change in Internal Control Over Financial Reporting.

Except as described below, the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, has determined that there were no changes in ~~the Company’s~~Frank's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, these internal controls over financial reporting during the period covered by this quarterly report.

With the closing of the Merger on October 1, 2021, there was a change in management and a process was initiated to integrate Frank's and Legacy Expro. We expect these changes to have a significant impact on internal control over financial reporting going forward. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business post-Merger, but cannot assure you that such actions will be sufficient to provide us with effective internal control over financial reporting.

During the first quarter of 2021, ~~the Company~~Frank's implemented a new enterprise resource planning (“ERP”) system. In connection with this ERP system, ~~we have updated our~~updates were made to internal controls over financial reporting to accommodate modifications to ~~our~~ business processes and accounting procedures. As with all new information systems, this ERP system and the related internal controls over financial reporting will require testing for effectiveness. We do not believe that the transition to this ERP system will have an adverse effect on ~~our~~the Company's internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1.Legal Proceedings

We are ~~the~~ subject of lawsuits and claims arising in the ordinary course of business from time to time. A liability is accrued when a loss is both probable and can be reasonably estimated. WeFrank's had no material accruals for loss contingencies, individually or in the aggregate, as of ~~March 31,~~September 30, 2021 ~~and~~or December 31, 2020. ~~We believe~~Company management believes the probability is remote that the ultimate outcome of these matters would have a material adverse effect on our financial position, results of operations or cash flows. ~~Please see Note 14—Commitments~~

Frank’s has been conducting, and ~~Contingencies in~~ the ~~Notes~~combined company will continue to ~~Unaudited Condensed Consolidated Financial Statements~~.

~~We are conducting~~conduct, an internal investigation of the operations of certain of ~~our~~its foreign subsidiaries in West Africa including possible violations of the U.S. Foreign Corrupt Practices Act (“FCPA”), ~~our~~its policies and other applicable laws. In June 2016, weFrank's voluntarily disclosed the existence of ~~our~~its extensive internal review to the ~~U.S. Securities and Exchange Commission (“SEC”),~~SEC, the U.S. Department of Justice (“DOJ”) and other governmental entities. It is ~~our~~the Company’s intent to continue to fully cooperate with these agencies and any other applicable authorities in connection with any further investigation that may be conducted in connection with this matter. While ~~our~~the review has not indicated that there has been any material impact on ~~our~~Frank's previously filed financial statements, ~~we have~~Frank's has continued to collect information and cooperate with the ~~authorities, but at this time are unable to predict the ultimate resolution of these matters with these agencies.~~

authorities.

As disclosed above, ~~our~~the investigation into possible violations of the FCPA remains ongoing, and wethe Company will continue to cooperate with the SEC, DOJ and other relevant governmental entities in connection therewith. At this time, we are unable to predict the ultimate resolution of these matters with these agencies, including any financial impact to ~~us. Our~~the Company. The Company’s Board of Directors (the “Board”) and management are committed to continuously enhancing ~~our~~the Company’s internal controls that support improved compliance and transparency throughout ~~our~~the Company’s global operations.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risks discussed below and under the heading “Risk Factors” in ~~our~~the Annual Report, Frank’s subsequently filed quarterly reports on Form 10-Q and Frank’s proxy statement/prospectus dated August 5, 2021 filed by with the SEC on August 6, 2021, which risks could materially affect our business, financial condition or future results. These risks are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or results of operations.

The “Company,” “we,” “our,” and “us” refer to Expro Group Holdings N.V., the successor reporting entity following the consummation of the Merger.

Risk Factors Relating to the Merger

The ~~Exchange Ratio~~failure to integrate successfully the businesses of Frank’s and Legacy Expro in the expected timeframe could adversely affect the combined company’s future results.

The Merger involves the integration of two companies that prior to October 1, 2021, operated independently. The success of the Merger will depend—in large part—on the ability of the combined company to realize the anticipated benefits, including cost savings, among others, from combining the businesses of Frank’s and Legacy Expro. To realize these anticipated benefits, the businesses of Frank’s and Legacy Expro must be successfully integrated. This integration will be complex and time-consuming. The failure to integrate successfully and to manage successfully the challenges presented by the integration process may result in the combined company not achieving the anticipated benefits of the Merger.

Potential difficulties that may be encountered in the integration process include the following:

•

integrating the businesses of Frank’s and Legacy Expro in a manner that permits the combined company to achieve the full benefit of cost savings that are anticipated to result from the Merger;

•

complexities associated with managing the larger, more complex combined business;

•

complexities associated with integrating the workforces of the two companies;

•

potential unknown liabilities and unforeseen expenses, delays or regulatory conditions associated with the post-Merger integration, including one-time cash costs to integrate the two companies that may exceed the anticipated range of such one-time cash costs that Frank’s and Legacy Expro estimated as of the date of execution of the Merger Agreement; and

•

performance shortfalls of the combined company as a result of the diversion of management’s attention caused by completing the Merger and integrating the companies’ operations.

Any of these difficulties in successfully integrating the businesses of Frank’s and Legacy Expro, or any delays in the integration process, could adversely affect the combined company’s ability to achieve the anticipated benefits of the Merger and could adversely affect the combined company’s business, financial results, financial condition and stock price. Even if the combined company is able to integrate the business operations of Frank’s and Legacy Expro successfully, there can be no assurance that this integration will result in the realization of the full benefits of synergies, cost savings, innovation and operational efficiencies that the Company management currently expects from this integration or that these benefits will be achieved within the anticipated time frame.

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The synergies attributable to the Merger may vary from expectations.

The Company may fail to realize the anticipated benefits and synergies expected from the Merger, which could adversely affect its business, financial condition and operating results. The success of the Merger will depend, in significant part, on the combined company’s ability to successfully integrate the acquired business and realize the anticipated strategic benefits and synergies from the combination. Company management believes that the Merger will provide operational and financial scale, increasing free cash flow, and enhancing the combined company’s corporate rate of return. However, achieving these goals requires, among other things, realization of the targeted cost synergies expected from the Merger. The anticipated benefits of the Merger and actual operating, technological, strategic and revenue opportunities may not be ~~adjusted~~realized fully or at all, or may take longer to realize than expected. If the Company is not able to achieve these objectives and realize the anticipated benefits and synergies expected from the Merger within the anticipated timing or at all, the combined company’s business, financial condition and operating results may be adversely affected.

The Company will incur integration-related costs in the ~~event~~integration of ~~any change~~the two businesses.

The Company will incur significant integration-related costs. Many of the expenses that will be incurred, by their nature, are difficult to estimate accurately at the present time. These expenses could, particularly in the ~~stock~~near term, reduce the expected pre-tax synergies related to the integration of the businesses, and accordingly, any net synergies may not be achieved in the near term or at all. Additionally, there are a large number of processes, policies, procedures, operations, technologies and systems that must be integrated, including accounting and finance, asset management, benefits, billing, health, safety and environment, human resources, maintenance, marketing, payroll and purchasing. The expenses of integrating these systems could, particularly in the near term, exceed the savings that the combined company expects to achieve from the elimination of duplicative expenses and the realization of economies of scale and cost savings. These integration expenses may result in the combined company taking significant charges against earnings.

The future results of the Company will suffer if the Company does not effectively manage its expanded operations.

The size of the business of the Company has increased significantly beyond the size of either Frank’s or Legacy Expro’s business. The combined company’s future success depends, in part, upon its ability to manage this expanded business, which will pose substantial challenges for management, including challenges related to the management and monitoring of new operations and associated increased costs and complexity. There can be no assurances that the combined company will be successful or that it will realize the expected operating efficiencies, cost savings, revenue enhancements and other benefits currently anticipated from the Merger.

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The market price of ~~Frank’s.~~

At the ~~Effective Time, each Expro Ordinary Share outstanding immediately prior~~Company Common Stock may be volatile, and holders of the Company Common Stock could lose a significant portion of their investment due to the Effective Time, other than shares owned by Expro, Frank’s, Merger Sub or any subsidiary of Frank’s (but including, for the avoidance of doubt, any such shares held by any wholly-owned subsidiary of Expro), will be converted into the right to receive a number of shares of our common stock equal to the Exchange Ratio. The Exchange Ratio will not be adjusted for changesdrops in the market price of ~~our common~~the Company Common Stock.

The market price of the Company Common Stock may be volatile. Specific factors that may have a significant effect on the market price for the Company Common Stock include, among others, the following:

•

changes in stock market analyst recommendations or earnings estimates regarding the Company, other companies comparable to it or companies in the industries they serve;

•

actual or anticipated fluctuations in the Company’s operating results or future prospects;

•

reaction to public announcements by the Company;

•

strategic actions taken by the Company or its competitors, such as acquisitions, divestitures or restructurings;

•

failure of the Company to achieve the perceived benefits of the Merger, including financial results and anticipated synergies, as rapidly as or to the extent anticipated by financial or industry analysts;

•

adverse conditions in the financial market or general U.S. or international economic conditions, including those resulting from war, incidents of terrorism and response to such events; and

•

sales of the Company Common Stock by members of its management team or significant shareholders.

Additionally, Company shareholders may reduce or eliminate their investment in the Company for various reasons, including in order to comply with institutional investing guidelines, to increase diversification, to track any rebalancing of stock ~~between~~indices in which the ~~date~~Company Common Stock is included, to respond to the risk profile of ~~signing~~the combined company or to realize a gain. If large amounts of the Company Common Stock are sold, the price could decline.

Diversion of management and integration related uncertainty could harm the Company and may result in the loss of key employees, which could adversely affect the future business and operations of the Company.

The Company’s success is dependent upon the experience and industry knowledge of its officers and other key employees. The post-Merger integration could result in current and prospective employees’ experiencing uncertainty about their future with the Company. These uncertainties may impair the ability of the Company to retain, recruit or motivate key personnel. In addition, integrating the companies’ operations will require a significant amount of time and attention from management of the two companies. The diversion of management’s attention away from ongoing operations could adversely affect business relationships of the combined company.

The combined company’s ability to utilize the historic U.S. net operating loss carryforwards of Frank’s and of Legacy Expro may be limited.

As of December 31, 2020, Frank’s and Legacy Expro had U.S. federal net operating loss carryforwards (“NOLs”) of approximately $377.9 million and $261.1 million, respectively, $168.2 million and $206.4 million, respectively, of which were incurred prior to January 1, 2018 and will begin to expire, if unused, in 2036 and 2030, respectively, and $209.7 million and $54.7 million, respectively, of which were incurred on or after January 1, 2018 and will not expire and will be carried forward indefinitely. The combined company’s ability to utilize these NOLs and other tax attributes to reduce future taxable income following the consummation of the Merger ~~Agreement and completion~~depends on many factors, including its future income, which cannot be assured. Section 382 of the ~~Merger. Changes in~~Code (“Section 382”) generally imposes an annual limitation on the ~~price~~amount of ~~our common~~NOLs that may be used to offset taxable income when a corporation has undergone an “ownership change” (as determined under Section 382). An ownership change generally occurs if one or more stockholders (or groups of stockholders) who are each deemed to own at least 5% of such corporation’s stock ~~prior~~increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. In the event that an ownership change occurs, utilization of the relevant corporation’s NOLs would be subject to an annual limitation under Section 382, generally determined, subject to certain adjustments, by multiplying (i) the ~~Merger will affect the~~fair market value of ~~our common~~such corporation’s stock ~~that Expro shareholders will receive on the date of the Merger. Stock price changes may result from a variety of factors (many of which are out of our control), including the following:~~

•~~changes in the respective businesses, operations and prospects of Frank’s and Expro;~~

•~~changes in market assessments of the business, operations and prospects of Frank’s and Expro;~~

•~~investor behavior and strategies, including market assessments of the likelihood that the Merger will be completed;~~

•~~interest rates, general market and economic conditions and other factors generally affecting the price of our common stock; and~~

•~~legislation, governmental regulation and legal developments in the businesses in which Frank’s and Expro operate.~~

The price of our common stock on the Closing Date may vary from its price on the date the Merger Agreement was executed, on the date of the proxy statement/prospectus and on the date of the 2021 annual general meeting of our shareholders (the “Annual Meeting”). As a result, the value represented by the Exchange Ratio will also vary, and you will not know or be able to calculate at the time of the ~~Annual Meeting~~ownership change by (ii) a percentage approximately equivalent to the ~~market value of~~yield on long-term tax-exempt bonds during the ~~merger consideration Expro shareholders will receive upon completion of~~month in which the ~~Merger.~~

In addition, the Merger might not be completed until a significant period of time has passed after the Annual Meeting. Because the Exchange Ratio will not be adjusted to reflect any changes in the market value of our common stock, the market value of the our common stock issued in connection with the Mergerownership change occurs. Any unused annual limitation may be ~~higher or lower than the value of those shares on earlier dates. Stock price changes may result from, among other things, changes in the business, operations or prospects of~~ carried over to later years.

Frank’s and Expro prior to or following the Merger, litigation or regulatory considerations, general business, market, industry or economic conditions and other factors both within and beyond the control of Frank’s. Neither Frank’s nor Expro is permitted to terminate the Merger Agreement solely because of changes in the market price or value of either company’s equity securities.

~~Current Frank’s shareholders will have a reduced~~underwent an ownership ~~and voting interest in the Combined Company after the Merger, and such reduced ownership could have negative Dutch tax consequences.~~

~~Frank’s will issue approximately 426,146,247 shares of our common stock to Expro shareholders in the Merger. As~~change under Section 382 as a result of ~~these issuances, Expro shareholders are expected~~the Merger, which, based on information currently available, may trigger a limitation (calculated as described above) on the combined company’s ability to ~~hold up to approximately 65% of the Combined Company’s outstanding common stock immediately following completion of the Merger.~~

utilize any historic Frank’s ~~shareholders currently have the right to vote for its directors~~NOLs and ~~on other matters affecting Frank’s. Each Frank’s shareholder will remain a shareholder~~could cause some of Frank’s ~~with a percentage ownership of the Combined Company that will be smaller than the shareholder’s percentage of Frank’s~~NOLs incurred prior to January 1, 2018 to expire before the ~~Merger. As~~combined company would be able to utilize them to reduce taxable income in future periods. While the exchange of ordinary shares of Expro for Company Common Stock in the Merger was, standing alone, insufficient to result in an ownership change with respect to Legacy Expro, we cannot assure you that the Company will not undergo an ownership change as a result of ~~these reduced~~the Merger taking into account other changes in ownership ~~percentages, Frank’s shareholders will have less voting power in~~of Company stock occurring within the ~~Combined Company than they now have~~relevant three year period described above. If there were to be an ownership change with respect to ~~Frank’s.~~

AsLegacy Expro as a result of the Merger, the ~~interest held by current Frank’s~~combined company may be prevented from fully utilizing Legacy Expro’s historic NOLs incurred prior to January 1, 2018 prior to their expiration.

Certain of the shareholders of the Company have the ability to exercise significant influence over certain corporate actions.

Affiliates of Oak Hill Advisors, L.P. and members of the Mosing family and entities they control could have significant influence over the outcome of matters requiring a shareholder vote, including the election of directors, the adoption of any amendment to the Company’s Articles and the approval of mergers and other significant corporate transactions. Their influence over the Company may have the effect of delaying or preventing a change of control or may adversely affect the voting and other rights of other shareholders. In addition, affiliates of Oak Hill Advisors, L.P. have the right to designate two nominees for election to the combined company’s nine member Board and members of the Mosing family have the right to designate one nominee for election to such Board. Finally, if these shareholders were in the ~~Combined Company could fall below certain thresholds relevant for Dutch tax purposes, such as the threshold relevant in respect of the Dutch substantial interest rules, which could give rise~~future to Dutch taxes on income and capital gains. In addition, the Merger will impact the average paid-in capital of Frank’s common stock held by current Frank’s shareholders as recognized for purposes of Dutch dividend withholding tax, which may have tax consequences in relation to future liquidation proceeds of redemption of Frank’s common stocksell all or proceeds of repurchases of Frank’s common stock derived by current Frank’s shareholders. For further information, see the “Material Dutch Tax Consequences” section of the Registration Statement on Form S-4 filed with the SEC on April 26, 2021. Each Frank’s shareholder should seek tax advice from his own tax advisors about the potential tax consequences to it of holding and disposinga material number of shares of ~~our common stock (some~~Company Common Stock, the market price of ~~which~~Company’s Common Stock could be ~~material) following the merger.~~

~~The Merger is subject to conditions, including certain conditions that may not be satisfied, or completed on a timely basis, if at all.~~

The Merger is subject to a number of conditions beyond the control of Frank’s and Expro that may prevent, delay or otherwise materially adversely affect its completion. We cannot predict whether and when these conditions will be satisfied. Any delay in completing the Merger could cause the Combined Company not to realize some or all of the benefits that we expect to achieve if the Merger is successfully completed within its expected time frame.

~~Failure to complete the Merger could~~ negatively ~~impact the future business and financial results of Frank’s.~~

impacted.

3837

~~Neither Frank’s nor Expro can make any assurances that it will be able to satisfy all~~Table of the conditions to the Merger or succeed in any litigation brought in connection with the Merger. If the Merger is not completed, the financial results of Frank’s may be adversely affected and Frank’s will be subject to several risks, including but not limited to:

•Frank’s being required to pay Expro a termination fee of $37.5 million or Expro being required to pay Frank’s a termination fee of $71.5 million, in each case under certain circumstances provided in the Merger Agreement;

•~~payment of costs relating to the Merger, such as legal, accounting, financial advisor and printing fees, regardless of whether the Merger is completed;~~

•~~the focus of our management team on the Merger instead of the pursuit of other opportunities that could have been beneficial to Frank’s; and~~

•~~the potential occurrence of litigation related to any failure to complete the Merger.~~

In addition, if the Merger is not completed, Frank’s may experience negative reactions from the financial markets and from its customers and employees. If the Merger is not completed, Frank’s cannot assure its shareholders that these risks will not materialize and will not materially and adversely affect the business, financial results of Frank’s or the stock price of our common stock.

The Merger Agreement contains provisions that limit each party’s ability to pursue alternatives to the Merger, could discourage a potential competing acquiror of either Frank’s or Expro from making a favorable alternative transaction proposal and, in specified circumstances, could require either party to pay a termination fee to the other party.

The Merger Agreement contains “non-solicitation” provisions that, subject to limited exceptions, restrict Frank’s or Expro’s ability to, among other things, directly or indirectly initiate, solicit, knowingly encourage or knowingly facilitate or take any action designed to lead to the inquiry, making, or submission of a proposal competing with the transactions contemplated by the Merger Agreement. In addition, while each of the Frank’s Board and the Expro Board has the ability, in certain circumstances, to change its recommendation of the transaction to its shareholders, neither party can terminate the Merger Agreement to accept an alternative proposal, and the other party generally has an opportunity to modify the terms of the Merger and Merger Agreement in response to any alternative proposals that may be made before such board of directors may withdraw or modify its recommendation. Moreover, in certain circumstances, Frank’s or Expro may be required to pay up to $5.5 million of the other party’s expenses, respectively, or a termination fee of $37.5 million or $71.5 million, respectively.

These provisions could discourage a potential third party that might have an interest in acquiring all or a significant portion of Frank’s or Expro from considering or proposing that acquisition, even if it were prepared to pay consideration with a higher per share cash or market value than the market value proposed to be received or realized in the Merger. In addition, these provisions might result in a potential third party acquirer proposing to pay a lower price to the shareholders than it might otherwise have proposed to pay because of the added expense of the termination fee that may become payable in certain circumstances.

If the Merger Agreement is terminated and either Frank’s or Expro determines to seek another business combination, it may not be able to negotiate a transaction with another party on terms comparable to, or better than, the terms of the Merger.

~~Members of Frank’s management and the Frank’s Board have interests in the Transactions that are different from, or in addition to, those of other Frank’s shareholders.~~

In considering whether to approve the Transactions, holders of our common stock should recognize that members of Frank’s management and the Frank’s Board have interests in the Transactions that differ from, or are in addition to, their interests as shareholders of Frank’s.

39Contents

Frank’s and Expro may be unable to obtain the regulatory clearances and approvals required to complete the Merger or, in order to do so, Frank’s and Expro may be required to comply with material restrictions or conditions.

Consummation of the Merger is subject to obtaining approval under certain antitrust and foreign investment laws. Regulatory entities may impose certain requirements or obligations as conditions for their approval or in connection with their review. The Merger Agreement may require Frank’s or Expro to accept conditions from these regulators that could adversely impact the Combined Company without either of them having the right to refuse to close the Merger on the basis of those regulatory conditions. Neither Frank’s nor Expro can provide any assurance that they will obtain the necessary clearances or approvals, or that any required conditions will not have a material adverse effect on the Combined Company following the Merger or result in the abandonment of the Merger.

Additionally, even after completion of the Merger, governmental authorities could seek to challenge the Merger. Frank’s or Expro may not prevail and may incur significant costs in defending or settling any action under the antitrust laws.

~~The pendency of the Merger could adversely affect the business and operations of Frank’s.~~

In connection with the pending Merger, some customers or vendors of Frank’s may delay or defer decisions, which could negatively affect the revenues, earnings, cash flows and expenses of Frank’s, regardless of whether the Merger is completed. Similarly, current and prospective employees of Frank’s may experience uncertainty about their future roles with the Combined Company following the Merger, which may materially adversely affect the ability of Frank’s to attract, retain and motivate key personnel during the pendency of the Merger and which may materially adversely divert attention from the daily activities of Frank’s existing employees.

In addition, due to operating covenants in the Merger Agreement, Frank’s may be unable, during the pendency of the Merger, to pursue strategic transactions, undertake significant capital projects, undertake certain significant financing transactions and otherwise pursue other actions that are not in the ordinary course of business, even if such actions would prove beneficial to Frank’s. Further, the process of seeking to accomplish the Merger could also divert the focus of management of Frank’s from pursuing other opportunities that could be beneficial to it, without realizing any of the benefits which might have resulted had the Merger been completed.

~~The COVID-19 outbreak may adversely affect Frank’s and Expro’s ability to timely consummate the Merger.~~

COVID-19 and the various precautionary measures attempting to limit its spread taken by many governmental authorities worldwide has had a severe effect on global markets and the global economy. The extent to which the COVID-19 pandemic impacts Frank’s and Expro’s respective business operations will depend on future developments, which are highly uncertain and cannot be predicted, including but not limited to new information which may emerge concerning the severity of COVID-19 and the nature and extent of governmental actions taken to contain it or treat its impact, the availability of effective treatments and vaccines, the ultimate duration of the pandemic, and how quickly and to what extent normal economic and operating conditions can resume. COVID-19 and official actions in response to it have made it more challenging for Frank’s, Expro and relevant third parties to adequately staff their respective businesses and operations, and may cause delay in the companies’ ability to obtain the relevant approvals for the consummation of the Merger.

~~The Merger may be completed even though material adverse changes subsequent to the announcement of the Merger, such as industry-wide changes or other events, may occur.~~

In general, either party can refuse to complete the Merger if there is a material adverse change affecting the other party. However, some types of changes do not permit either party to refuse to complete the Merger, even if such changes would have a material adverse effect on either of the parties. For example, a worsening of Frank’s or Expro’s financial condition or results of operations due to a decrease in commodity prices or general economic conditions would not give the other party the right to refuse to complete the Merger. If adverse changes occur that

~~affect either party but the parties are still required to complete the Merger, Frank’s share price, business and financial results after the Merger may suffer.~~

~~The opinion obtained by Frank’s Board from Moelis does not and will not reflect changes in circumstances after the date of such opinion.~~

On March 10, 2021, Moelis & Company LLC (“Moelis”), Frank’s financial advisor in connection with the Merger, delivered an opinion to Frank’s Board as to the fairness, as of the date of the opinion and subject to the assumptions made, procedures followed, matters considered and other limitations set forth in the opinion, of the Exchange Ratio in the Merger to Frank’s. Changes in the operations and prospects of Frank’s or Expro, general market and economic conditions and other factors that may be beyond the control of Frank’s or Expro, and on which the opinion of Moelis was based, may alter the value of Frank’s or Expro or the price of our common stock by the time the Merger is completed. Frank’s has not obtained, and does not expect to request, an updated opinion from Moelis. Moelis’s opinion does not speak to the time when the Merger will be completed or to any date other than the date of such opinion. As a result, the opinion does not and will not address the fairness, from a financial point of view, of the Exchange Ratio at the time the Merger is completed or at any time other than March 10, 2021.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Following is a summary of ~~our~~ repurchases of ~~our common stock~~Company Common Stock during the three months ended ~~March 31, 2021.~~

September 30, 2021, as adjusted for the reverse stock split.

					Total Number of		Maximum Number (or
					Shares Purchased as		Approximate Dollar Value)
					Part of Publicly		of Shares that may yet
	Total Number		Average		Announced Plans or		be Purchased Under the
Period	of Shares Purchased (1)		Price Paid per Share		Programs (2)		Program (2)
July 1 - July 31		—	$	—		—	$	38,502,322
August 1 - August 31		—	$	—		—	$	38,502,322
September 1 - September 30		—	$	—		—	$	38,502,322
Total		—	$	—		—

~~Period~~

~~Total Number~~

~~of Shares Purchased~~ ~~(1)~~

Average
Price Paid per Share

~~Total Number of~~

~~Shares Purchased as~~

~~Part of Publicly~~

~~Announced Plans or~~

~~Programs~~ ~~(2)~~

~~Maximum Number (or~~

~~Approximate Dollar Value)~~

~~of Shares that may yet~~

~~be Purchased Under the~~

~~Program~~ ~~(2)~~

~~January 1 - January 31~~

—

~~38,502,322~~

~~February 1 - February 28~~

—

~~38,502,322~~

~~March 1 - March 31~~

—

~~38,502,322~~

~~Total~~

—

(1)This table excludes shares withheld from employees to satisfy tax withholding requirements on equity-based transactions. The Company administers cashless settlements and does not repurchase stock in connection with cashless settlements.

(2)Our Prior Board ~~has~~ authorized a program to repurchase our ~~common stock~~Company Common Stock from time to time. Approximately ~~$38,502,322~~$38.5 million remained authorized for repurchases as of ~~March 31, 2021;~~September 30, 2021, subject to the limitation set in our shareholder authorization for repurchases of our ~~common stock,~~Company Common Stock, which is currently 10% of the common stock outstanding as of ~~April 30, 2020.~~August 3, 2021. From the inception of this program in February 2020 to date, weFrank's repurchased ~~570,044~~95,007 shares of our common stock for a total cost of approximately $1.5 million. This program was suspended during the second quarter of 2020.

Table of Contents

Item 6. Exhibits

The exhibits required to be filed by Item 6 are set forth in the Exhibit Index included below.

EXHIBIT INDEX

Exhibit Number		Description
~~Exhibit~~ ~~Number~~ 3.1	~~Description~~ Deed of Amendment to Articles of Association of Expro Group Holdings N.V., dated October 1, 2021 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-36053), filed on October 1, 2021).
210.1 .1	Closing Agreement, ~~and Plan of Merger,~~ dated as of ~~March~~September 10, 2021, by and among Frank’s International N.V., New Eagle Holdings Limited and Expro Group Holdings International Limited ~~(incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K (File No. 001-36053), filed on March 10, 2021)~~.
~~3.1~~	~~Deed of Amendment to Articles of Association of Frank’s International N.V., dated May 19, 2017~~ (incorporated ~~by reference to Exhibit 3.1 to the Current Report on Form 8-K (File No. 001-36053), filed on May 25, 2017).~~
4 .1	~~Registration Rights Agreement, dated as of March 10, 2021, by and among Frank’s International N.V. and the shareholders party thereto(incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K (File No. 001-36053), filed on March 10, 2021)~~.
~~4.2~~	~~Amendment to Registration Rights Agreement, dated as of March 10, 2021, by and among Frank’s International N.V. and the shareholders party thereto(incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K (File No. 001-36053), filed on March 10, 2021)~~.
~~10.1~~	~~Form of Voting and Support Agreement(incorporated~~ by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-36053), filed on ~~March 10,~~September 15, 2021).
10.2	~~Form of Director Nomination Agreement(incorporated~~Letter agreement, dated September 20, 2021, with Quinn Fanning (incorporated by reference to Exhibit ~~10.2~~10.4 to the Current Report on Form 8-K (File No. 001-36053), filed on ~~March 10,~~October 1, 2021).
10.3	~~Amended and Restated Tax Receivable Agreement,~~Letter agreement, dated ~~as of March 10,~~September 20, 2021, ~~by and among Frank’s International N.V., Frank’s International C.V. and Mosing Holdings, LLC(incorporated~~with Michael Bentham (incorporated by reference to Exhibit ~~10.3~~10.5 to the Current Report on Form 8-K (File No. 001-36053), filed on ~~March 10,~~October 1, 2021).
†10.4	~~Amended and Restated Employment Offer Letter for Michael C. Kearney, effective~~Service Agreement, dated as of ~~March 10, 2021.~~September 30, 2021, by and between Expro North Sea Ltd and Alistair George Sinclair Geddes (incorporated by reference to Exhibit 10.6 to the Current Report on Form 8-K (File No. 001-36053), filed on October 1, 2021).
†10.5	~~First Amendment~~Employment Assignment Letter, dated September 20, 2021, with Steven Russell (incorporated by reference to Exhibit 10.7 to the ~~Frank’s International N.V. Amended and Restated U.S. Executive Change-in-Control Severance Plan.~~Current Report on Form 8-K (File No. 001-36053), filed on October 1, 2021).
†~~10.~~10.6 6	~~Amendment~~Employment Assignment Letter, dated September 20, 2021, with Nigel Lakey, and Letter Agreement, dated September 20, 2021, with Nigel Lakey (incorporated by reference to ~~Frank’s International N.V. Employee Restricted Stock Unit (RSU) Agreement (2013 Long-Term Incentive Plan)~~Exhibit 10.8 to the Current Report on Form 8-K (File No. 001-36053), filed on October 1, 2021).
**31.1 ~~31.1~~	Certification of Chief Executive Officer pursuant to Rule 13a-14 (a) under the Securities Exchange Act of 1934.
**31.2 ~~31.2~~	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
**32.1 ~~32.1~~	Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
**32.2 ~~32.2~~	Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
*101.1	The following materials from Frank’s International N.V.’s Quarterly Report on Form 10-Q for the period ended ~~March 31,~~September 30, 2021 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Comprehensive Loss; (iv) Condensed Consolidated Statements of Stockholders’ Equity; (v) Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Unaudited Condensed Consolidated Financial Statements.
*104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

† Represents management contract or compensatory plan or arrangement.

* Filed herewith.

** Furnished herewith.

4239

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

EXPRO GROUP HOLDINGS N.V.

~~FRANK’S INTERNATIONAL N.V.~~

Date:

November 8, 2021

By:

/s/ Quinn P. Fanning

~~Date:~~

~~May 4, 2021~~

~~By:~~

~~/s/ Melissa Cougle~~

Quinn P. Fanning

~~Melissa Cougle~~

~~Senior Vice President and~~

Chief Financial Officer

(Principal Financial Officer)

4340


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, ~~€0.01 par~~€0.06 nominal value	FI XPRO	New York Stock Exchange


FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

	March 31,		December 31,
	2021		2020
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	191,339	$	209,575
Restricted cash	1,656		1,672
Short-term investments	2,252		2,252
Accounts receivables, net	116,581		110,607
Inventories, net	94,738		81,718
Assets held for sale	3,681		2,939
Other current assets	8,416		7,744
Total current assets	418,663		416,507

Property, plant and equipment, net	255,401		272,707
Goodwill	42,785		42,785
Intangible assets, net	11,062		7,897
Deferred tax assets, net	16,482		18,030
Operating lease right-of-use assets	27,972		28,116
Other assets	30,907		30,859
Total assets	$	803,272	$	816,901

Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$	107,085	$	99,986
Current portion of operating lease liabilities	8,066		7,832
Deferred revenue	640		586
Other current liabilities	960		1,674
Total current liabilities	116,751		110,078

Deferred tax liabilities	0		1,548
Non-current operating lease liabilities	20,766		21,208
Other non-current liabilities	25,257		22,818
Total liabilities	162,774		155,652

Commitments and contingencies (Note 14)	0		0

Stockholders’ equity:
Common stock, €0.01 par value, 798,096,000 shares authorized, 230,761,910 and 228,806,301 shares issued and 227,712,419 and 226,324,559 shares outstanding	2,890		2,866
Additional paid-in capital	1,091,028		1,087,733
Accumulated deficit	(401,232)		(377,346)
Accumulated other comprehensive loss	(30,250)		(31,966)
Treasury stock (at cost), 3,049,491 and 2,481,742 shares	(21,938)		(20,038)
Total stockholders’ equity	640,498		661,249
Total liabilities and equity	$	803,272	$	816,901


FRANK’S INTERNATIONAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(Unaudited)

	Three Months Ended March 31, 2020
								Accumulated
				Additional				Other				Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Treasury		Stockholders’
	Shares	Value		Capital		Deficit		Income (Loss)		Stock		Equity
Balances at December 31, 2019	225,511	$	2,846	$	1,075,809	$	(220,805)	$	(30,298)	$	(17,258)	$	810,294
Cumulative effect of accounting change	—	—		—		(321)		—		—		(321)
Net loss	—	—		—		(85,978)		—		—		(85,978)
Foreign currency translation adjustments	—	—		—		—		424		—		424

Equity-based compensation expense	—	—		2,146		—		—		—		2,146
Common shares issued upon vesting of share-based awards	937	10		(10)		—		—		—		0
Common shares issued for employee stock purchase plan	126	1		551		—		—		—		552
Treasury shares withheld	(293)	—		—		—		—		(1,056)		(1,056)
Share repurchase program	(373)	—		—		—		—		(1,017)		(1,017)
Balances at March 31, 2020	225,908	$	2,857	$	1,078,496	$	(307,104)	$	(29,874)	$	(19,331)	$	725,044


















	Three Months Ended March 31, 2021
								Accumulated
				Additional				Other				Total
	Common Stock			Paid-In		Accumulated		Comprehensive		Treasury		Stockholders’
	Shares	Value		Capital		Deficit		Income (Loss)		Stock		Equity
Balances at December 31, 2020	226,325	$	2,866	$	1,087,733	$	(377,346)	$	(31,966)	$	(20,038)	$	661,249

Net loss	—	—		—		(23,886)		—		—		(23,886)
Foreign currency translation adjustments	—	—		—		—		1,716		—		1,716

Equity-based compensation expense	—	—		2,872		—		—		—		2,872
Common shares issued upon vesting of share-based awards	1,717	21		(21)		—		—		—		0
Common shares issued for employee stock purchase plan	238	3		444		—		—		—		447
Treasury shares withheld	(568)	—		—		—		—		(1,900)		(1,900)

Balances at March 31, 2021	227,712	$	2,890	$	1,091,028	$	(401,232)	$	(30,250)	$	(21,938)	$	640,498


	Estimated Useful Lives in Years	March 31, 2021		December 31, 2020
Land	—	$	31,080	$	30,869
Land improvements	8-15	7,688		7,620
Buildings and improvements	13-39	118,592		121,105
Rental machinery and equipment	2-7	906,117		897,398
Machinery and equipment - other	7	54,869		54,842
Furniture, fixtures and computers	3-5	19,756		16,928
Automobiles and other vehicles	5	25,894		25,948
Leasehold improvements	7-15, or lease term if shorter	12,754		12,773
Construction in progress - machinery and equipment	—	12,412		24,381
		1,189,162		1,191,864
Less: Accumulated depreciation		(933,761)		(919,157)
Total property, plant and equipment, net		$	255,401	$	272,707


	March 31, 2021						December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Total		Gross Carrying Amount		Accumulated Amortization		Total
Customer Relationships	$	28,300	$	(26,917)	$	1,383	$	28,300	$	(26,324)	$	1,976

Intellectual Property	18,136		(8,457)		9,679		13,860		(7,939)		5,921

Total intangible assets	$	46,436	$	(35,374)	$	11,062	$	42,160	$	(34,263)	$	7,897


	Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
March 31, 2021
Assets:

Investments:
Cash surrender value of life insurance policies - deferred compensation plan	$	0	$	26,586	$	0	$	26,586
Marketable securities - other	2		0		0		2
Liabilities:

Deferred compensation plan	0		20,125		0		20,125

December 31, 2020
Assets:

Investments:
Cash surrender value of life insurance policies - deferred compensation plan	$	0	$	26,167	$	0	$	26,167
Marketable securities - other	3		0		0		3
Liabilities:

Deferred compensation plan	0		20,271		0		20,271



(1)	Approximate number of unvested restricted stock units and stock to be issued pursuant to the ESPP that have been excluded from the computation of diluted loss per share as the effect would be anti-dilutive when results from operations are at a net loss position.	2,252	2,015


	Three Months Ended March 31,
		2021		2020
Severance and other costs		$	265	$	538
Mergers and acquisition expense		6,804		0
Fixed asset impairments and retirements		171		15,479
Inventory write-offs		136		0
Intangible asset impairments		0		4,708
		$	7,376	$	20,725