| | | | BY ORDER OF THE BOARD OF DIRECTORS | |
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| | | | James K. Brata, | |
| | | | Secretary | |
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Name | | | Age | | | Position | |
Matthew Wilks | | | 40 | | | Director and Chairman of the Board | |
Bruce Bradley | | | 65 | | | Director | |
Albert Conly | | | 67 | | | Director | |
Jose Carlos Fernandes | | | 57 | | | Director | |
Sergei Krylov | | | 45 | | | Director | |
Name | | | Fees Earned or Paid in Cash | | | Stock Awards(1) | | | Option Awards | | | All Other Compensation | | | Total | | |||||||||||||||
Mark A. Vander Ploeg | | | | $ | 21,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 21,000 | | |
Ted R. North | | | | | 24,000 | | | | | | | | | | | | | | | | | | | | | | | | 24,000 | | |
Matthew Wilks | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Bruce Bradley | | | | | 134,250 | | | | | | — | | | | | | — | | | | | | — | | | | | | 134,250 | | |
Name | | | Fees Earned or Paid in Cash | | | Stock Awards(1) | | | Option Awards | | | All Other Compensation | | | Total | | |||||||||||||||
Albert Conly | | | | | 116,250 | | | | | | — | | | | | | — | | | | | | — | | | | | | 116,250 | | |
Jose Carlos Fernandes | | | | | 107,250 | | | | | | — | | | | | | — | | | | | | — | | | | | | 107,250 | | |
Sergei Krylov | | | | | 93,750 | | | | | | — | | | | | | — | | | | | | — | | | | | | 93,750 | | |
Name | | | Age | | | Position | |
Stephen C. Jumper | | | 61 | | | President and Chief Executive Officer | |
James K. Brata | | | 67 | | | Chief Financial Officer, Executive Vice President, Secretary and Treasurer | |
C. Ray Tobias | | | 65 | | | Chief Operating Officer and Executive Vice President | |
Anthony Clark | | | 66 | | | Executive Vice President and Chief Business Officer | |
Name and Principal Position | | | Year | | | Salary | | | Bonus(1) | | | Stock Awards(2) | | | All other Compensation(3) | | | Total | | | ||||||||||||||||||||
Stephen C. Jumper Chief Executive Officer and President | | | | | 2022 | | | | | $ | 360,001 | | | | | $ | — | | | | | $ | — | | | | | $ | 35,621 | | | | | $ | 395,622 | | | | ||
| | | 2021 | | | | | | 360,001 | | | | | | — | | | | | | 99,000 | | | | | | 33,942 | | | | | | 492,943 | | | | ||||
James K. Brata Executive Vice President, Chief Financial Officer, Secretary and Treasurer | | | | | 2022 | | | | | | 278,751 | | | | | | — | | | | | | — | | | | | | 21,894 | | | | | | 300,645 | | | | ||
| | | 2021 | | | | | | 278,751 | | | | | | — | | | | | | 49,500 | | | | | | 21,603 | | | | | | 349,854 | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
C. Ray Tobias Executive Vice President and Chief Operating Officer | | | | | 2022 | | | | | | 316,251 | | | | | | — | | | | | | — | | | | | | 36,894 | | | | | | 353,145 | | | | ||
| | | 2021 | | | | | | 316,251 | | | | | | — | | | | | | 49,500 | | | | | | 32,909 | | | | | | 398,660 | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year | | | Summary Compensation Table Total for PEO(1) | | | Compensation Actually Paid to PEO(2) | | | Average Summary Compensation Total for Non- PEO Named Executive Officers(1) | | | Average Compensation Actually Paid to Non- PEO Named Executive Officers(2) | | | Value of Initial Fixed $100 Investment Based on Total Shareholder Return(3) | | | Net Loss (in thousands)(4) | | ||||||||||||||||||
2022 | | | | $ | 395,622 | | | | | $ | 367,297 | | | | | $ | 326,895 | | | | | $ | 312,733 | | | | | $ | 92 | | | | | $ | (20,451) | | |
2021 | | | | $ | 492,943 | | | | | $ | 519,663 | | | | | $ | 374,257 | | | | | $ | 388,427 | | | | | $ | 109 | | | | | $ | (29,091) | | |
Adjustments to Determine Compensation “Actually Paid” for PEO | | | 2022 | | | 2021 | | ||||||
Reported Summary Compensation Table total for PEO | | | | $ | 395,622 | | | | | $ | 492,943 | | |
Deduction for Amounts Reported under the “Stock Awards” Column in the SCT | | | | | — | | | | | | (99,000) | | |
Increase for Fair Value of Awards Granted during year that Remain Unvested as of Year end | | | | | — | | | | | | 116,000 | | |
Increase/deduction for Change in Fair Value from Prior Year-end to vesting Date of Awards Granted Prior to year that vested during year | | | | | (28,325) | | | | | | 9,720 | | |
Total Adjustments | | | | $ | (28,325) | | | | | $ | 26,720 | | |
Compensation Actually paid to PEO | | | | $ | 367,297 | | | | | $ | 519,663 | | |
Adjustments to Determine Compensation “Actually Paid” for Non-PEO NEO’s | | | 2022 | | | 2021 | | ||||||
Reported Average Summary Compensation Table total for Non-PEO NEO’s | | | | $ | 326,895 | | | | | $ | 374,257 | | |
Deduction for Amounts Reported under the “Stock Awards” Column in the SCT | | | | | — | | | | | | (49,500) | | |
Increase for Fair Value of Awards Granted during year that Remain Unvested as of Year end | | | | | — | | | | | | 58,000 | | |
Increase/deduction for Change in Fair Value from Prior Year-end to vesting Date of Awards Granted Prior to year that vested during year | | | | | (14,163) | | | | | | 5,670 | | |
Total Adjustments | | | | $ | (14,163) | | | | | $ | 14,170 | | |
Average Compensation Actually paid to Non-PEO NEO’s | | | | $ | 312,733 | | | | | $ | 388,427 | | |
Executive | | | Salary | | | Bonus(1) | | | Vesting of stock awards(2) | | | Vesting of option awards(2) | | | All other benefits and perquisites(3) | | | Total | | ||||||||||||||||||
Stephen C. Jumper | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Termination Without Cause/With Good Reason | | | | $ | 669,231 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 20,326 | | | | | $ | 689,557 | | |
CIC Termination | | | | | 1,338,462 | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,652 | | | | | | 1,379,114 | | |
CIC Without Termination | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Disability | | | | | 300,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,775 | | | | | | 306,775 | | |
Death | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
James K. Brata | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Termination Without Cause/With Good Reason | | | | | 390,385 | | | | | | — | | | | | | — | | | | | | — | | | | | | 26,517 | | | | | | 416,902 | | |
CIC Termination | | | | | 780,770 | | | | | | — | | | | | | — | | | | | | — | | | | | | 38,034 | | | | | | 818,804 | | |
CIC Without Termination | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Disability | | | | | 175,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,839 | | | | | | 178,839 | | |
Death | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Executive | | | Salary | | | Bonus(1) | | | Vesting of stock awards(2) | | | Vesting of option awards(2) | | | All other benefits and perquisites(3) | | | Total | | ||||||||||||||||||
C. Ray Tobias | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Termination Without Cause/With Good Reason | | | | | 446,154 | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,326 | | | | | | 536,480 | | |
CIC Termination | | | | | 892,308 | | | | | | — | | | | | | — | | | | | | — | | | | | | 110,652 | | | | | | 1,002,960 | | |
CIC Without Termination | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Disability | | | | | 200,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,775 | | | | | | 206,775 | | |
Death | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | Year Ended December 31, | | |||||||||||||||||||||||||||||||||
$ in millions | | | 2021A | | | 2022A | | | 2023E | | | 2024E | | �� | 2025E | | | 2026E | | ||||||||||||||||||
Total Revenues | | | | $ | 24.7 | | | | | $ | 37.5 | | | | | $ | 74.0 | | | | | $ | 81.4 | | | | | $ | 89.5 | | | | | $ | 98.5 | | |
Adjusted EBITDA(1) | | | | $ | (16.5) | | | | | $ | (10.8) | | | | | $ | 7.4 | | | | | $ | 12.3 | | | | | $ | 14.6 | | | | | $ | 17.2 | | |
Capital Expenditures | | | | $ | 0.5 | | | | | $ | 1.8 | | | | | $ | 3.0 | | | | | $ | 3.0 | | | | | $ | 5.0 | | | | | $ | 10.0 | | |
Unlevered Free Cash Flow(2) | | | | $ | (16.9) | | | | | $ | (16.2) | | | | | $ | 7.7 | | | | | $ | 5.6 | | | | | $ | 9.9 | | | | | $ | 4.5 | | |
| | Number of Securities to be Issued Upon Exercise or Vesting of Outstanding Options, Warrants and Rights | | | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights | | | Number of Securities Remaining Available for Future Issuance Under the Equity Compensation Plan (Excluding Securities Reflected in Column (a)) | | ||||||||||
| | (a) | | | | | | | | | | | | ||||||
Restated 2016 Plan | | | | | | | | | | | | | | | | | | | |
Equity compensation plan approved by security holders | | | | | — | | | | | $ | |||||||||
| | | 1,264,487 | | | ||||||||||||||
Equity compensation plans not approved by security holders | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | | — | | | | | $ | |||||||||
| | | | | |
| | | Dawson Geophysical Company Historical Amounts | | | Breckenridge Geophysical, LLC Historical Amounts | | | Pro forma Adjustments | | | Pro forma Combined Amounts | | ||||||||||||
Operating revenues | | | | $ | 37,480 | | | | | $ | 16,892 | | | | | $ | (2,201) (a) | | | | | $ | 52,171 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | | | 37,910 | | | | | | 11,164 | | | | | | (2,201) (a) | | | | | | 46,873 | | |
General and administrative | | | | | 13,785 | | | | | | 1,727 | | | | | | | | | | | | 15,512 | | |
Depreciation and amortization | | | | | 9,795 | | | | | | 2,129 | | | | | | | | | | | | 11,924 | | |
| | | | | 61,490 | | | | | | 15,020 | | | | | | (2,201) (a) | | | | | | 74,309 | | |
(Loss) income from operations | | | | | (24,010) | | | | | | 1,872 | | | | | | — | | | | | | (22,138) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 316 | | | | | | 1 | | | | | | | | | | | | 317 | | |
Interest expense | | | | | (31) | | | | | | | | | | | | | | | | | | (31) | | |
Other income (expense), net | | | | | 415 | | | | | | (4) | | | | | | | | | | | | 411 | | |
Gain from employee retention credit | | | | | 2,966 | | | | | | | | | | | | | | | | | | 2,966 | | |
(Loss) income before income tax | | | | | (20,344) | | | | | | 1,869 | | | | | | — | | | | | | (18,475) | | |
Income tax benefit (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Current | | | | | 9 | | | | | | | | | | | | | | | | | | 9 | | |
Deferred | | | | | (116) | | | | | | | | | | | | | | | | | | (116) | | |
| | | | | (107) | | | | | | — | | | | | | — | | | | | | (107) | | |
Net (loss) income | | | | $ | (20,451) | | | | | $ | 1,869 | | | | | $ | — | | | | | $ | (18,582) | | |
Basic loss per share of common stock | | | | $ | (0.86) | | | | | $ | — | | | | | $ | 0.12 (b) | | | | | $ | (0.74) | | |
Diluted loss per share of common stock | | | | $ | (0.86) | | | | | $ | — | | | | | $ | 0.12 (b) | | | | | $ | (0.74) | | |
Weighted average equivalent common shares outstanding | | | | | 23,782,796 | | | | | | — | | | | | | 1,188,235 (b) | | | | | | 24,971,031 | | |
Weighted average equivalent common shares outstanding – assuming dilution | | | | | 23,782,796 | | | | | | — | | | | | | 1,188,235 (b) | | | | | | 24,971,031 | | |
| | | Dawson Geophysical Company Historical Amounts | | | Breckenridge Geophysical, LLC Unaudited Historical Amounts | | | Pro forma Adjustments | | | Pro forma Combined Amounts | | ||||||||||||
Operating revenues | | | | $ | 24,695 | | | | | $ | 5,352 | | | | | $ | | | | | $ | 30,047 | | | |
Operating costs: | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | | | | 29,016 | | | | | | 3,955 | | | | | | | | | | | | 32,971 | | |
General and administrative | | | | | 12,046 | | | | | | 1,590 | | | | | | | | | | | | 13,636 | | |
Depreciation and amortization | | | | | 12,863 | | | | | | 2,203 | | | | | | | | | | | | 15,066 | | |
| | | | | 53,925 | | | | | | 7,748 | | | | | | — | | | | | | 61,673 | | |
(Loss) income from operations | | | | | (29,230) | | | | | | (2,396) | | | | | | — | | | | | | (31,626) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 220 | | | | | | 16 | | | | | | | | | | | | 236 | | |
Interest expense | | | | | (21) | | | | | | | | | | | | | | | | | | (21) | | |
Other income (expense), net | | | | | (86) | | | | | | 78 | | | | | | | | | | | | (8) | | |
Gain from employee retention credit | | | | | — | | | | | | | | | | | | | | | | | | — | | |
(Loss) income before income tax | | | | | (29,117) | | | | | | (2,302) | | | | | | — | | | | | | (31,419) | | |
Income tax benefit (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Current | | | | | 27 | | | | | | (37) | | | | | | | | | | | | (10) | | |
Deferred | | | | | (1) | | | | | | | | | | | | | | | | | | (1) | | |
| | | | | 26 | | | | | | (37) | | | | | | — | | | | | | (11) | | |
Net (loss) income | | | | $ | (29,091) | | | | | $ | (2,339) | | | | | $ | — | | | | | $ | (31,430) | | |
Basic loss per share of common stock | | | | $ | (1.23) | | | | | $ | — | | | | | $ | (0.04) (b) | | | | | $ | (1.27) | | |
Diluted loss per share of common stock | | | | $ | (1.23) | | | | | $ | — | | | | | $ | (0.04) (b) | | | | | $ | (1.27) | | |
Weighted average equivalent common shares outstanding | | | | | 23,570,455 | | | | | | — | | | | | | 1,188,235 (b) | | | | | | 24,758,690 | | |
Weighted average equivalent common shares outstanding – assuming dilution | | | | | 23,570,455 | | | | | | — | | | | | | 1,188,235 (b) | | | | | | 24,758,690 | | |
Name | | | Amount and Nature of Beneficial Ownership | | | Percent of Class(1) | | ||||||
SECURITY OWNERSHIP OF 5% HOLDERS | | | | | | | | | | | | | |
Wilks Brothers, LLC | | | | | 24,659,095(2) | | | | | | 80.03% | | |
SECURITY OWNERSHIP OF MANAGEMENT | | | | | | | | | | | | | |
Stephen C. Jumper | | | | | — | | | | | | 0.00% | | |
C. Ray Tobias | | | | | — | | | | | | 0.00% | | |
James K. Brata | | | | | — | | | | | | 0.00% | | |
Anthony Clark | | | | | — | | | | | | 0.00% | | |
Matthew Wilks | | | | | — | | | | | | 0.00% | | |
Bruce Bradley | | | | | — | | | | | | 0.00% | | |
Name | | | Amount and Nature of Beneficial Ownership | | | Percent of Class(1) | | ||||||
Albert Conly | | | | | — | | | | | | 0.00% | | |
Jose Carlos Fernandes | | | | | — | | | | | | 0.00% | | |
Sergei Krylov | | | | | — | | | | | | 0.00% | | |
Total Management Ownership | | | | | — | | | | | | 0.00% | | |
Name of Beneficial Owner | | | Number of Shares Beneficially Owned | | | Percentage of Shares Beneficially Owned | | ||||||
Stephen C. Jumper | | | | | 0 | | | | | | 0.00% | | |
C. Ray Tobias | | | | | 0 | | | | | | 0.00% | | |
James K. Brata | | | | | 0 | | | | | | 0.00% | | |
Anthony Clark | | | | | 0 | | | | | | 0.00% | | |
Matthew Wilks(3) | | | | | 0 | | | | | | 0.00% | | |
Bruce Bradley | | | | | 0 | | | | | | 0.00% | | |
Albert Conly | | | | | 0 | | | | | | 0.00% | | |
Jose Carlos Fernandes | | | | | 0 | | | | | | 0.00% | | |
Sergei Krylov(4) | | | | | 0 | | | | | | 0.00% | | |
All of our current directors and executive officers as a group | | | | | 0 | | | | | | 0.00% | | |
Other 5% Stockholders: | | | | | | | | | | | | | |
Wilks Brothers, LLC(1) | | | | | 18,847,330(2) | | | | | | 75.39% | | |
| | | 2022 | | | 2021 | | ||||||
Audit Fees(1) | | | | $ | 407,700 | | | | | $ | 370,000 | | |
Audit-related fees(2) | | | | | — | | | | | | 9,000 | | |
Tax Fees(3) | | | | | 92,000 | | | | | | — | | |
All other fees | | | | | — | | | | | | — | | |
Total fees | | | | $ | 499,700 | | | | | $ | 379,000 | | |
��� | November 8, 2023 | | | Submitted by the Audit Committee of the Board of Directors | |
| | | | Albert Conly (Chairman) Bruce Bradley Jose Carlos Fernandes | |
Name | | | Address | |
Wayne A. Whitener | | | 101 E. Park Blvd., Ste 955 Plano, TX 75074 | |
William J. Barrett | | | P. O. Box 6199 Fair Haven, NJ 07704 | |
Herbert M. Gardner | | | P. O. Box 463 Wading River, NY 11792 | |
Allen T. McInnes | | | 4532 7th Street Lubbock, TX 79416 | |
Edward L. Flynn | | | 7511 Myrtle Avenue Glendale, NY 11385 | |
Stephanie P. Hurtt | | | P. O. Box 643695 Vero Beach, FL 32964 | |
Name | | | Address | |
Wayne A. Whitener | | | 101 E. Park Blvd., Ste 955 Plano, TX 75074 | |
William J. Barrett | | | P. O. Box 6199 Fair Haven, NJ 07704 | |
Herbert M. Gardner | | | P. O. Box 463 Wading River, NY 11792 | |
Allen T. McInnes | | | 4532 7th Street Lubbock, TX 79416 | |
Edward L. Flynn | | | 7511 Myrtle Avenue Glendale, NY 11385 | |
Stephanie P. Hurtt | | | P. O. Box 643695 Vero Beach, FL 32964 | |