Dawson Geophysical (DWSN) 10-Q 10 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document and Entity Information	'	'
Entity Registrant Name	'TGC INDUSTRIES INC	'
Entity Central Index Key	'0000799165	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	21,999,157
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$25,064,116	$16,130,374
Trade accounts receivable	8,985,899	10,742,412
Cost and estimated earnings in excess of billings on uncompleted contracts	4,620,300	2,312,947
Prepaid expenses and other	2,790,235	1,808,411
Prepaid federal and state income tax	'	3,909,198
Total current assets	41,460,550	34,903,342
PROPERTY AND EQUIPMENT - at cost	'	'
Machinery and equipment	188,061,303	185,405,886
Automobiles and trucks	13,377,137	14,272,341
Furniture and fixtures	484,206	486,700
Leasehold improvements	14,994	14,994
Total property and equipment, gross	201,937,640	200,179,921
Less accumulated depreciation and amortization	-147,725,913	-137,072,725
Total property and equipment, net	54,211,727	63,107,196
Goodwill	201,530	201,530
Other assets	81,942	89,470
Total noncurrent assets	283,472	291,000
Total assets	95,955,749	98,301,538
CURRENT LIABILITIES	'	'
Trade accounts payable	7,294,617	4,097,819
Accrued liabilities	3,396,131	2,585,993
Billings in excess of costs and estimated earnings on uncompleted contracts	2,531,275	653,220
Federal and state income tax payable	890,093	'
Current maturities of notes payable	9,214,619	8,434,879
Current portion of capital lease obligations	937,048	1,423,268
Total current liabilities	24,263,783	17,195,179
NOTES PAYABLE, less current maturities	6,312,379	6,483,112
CAPITAL LEASE OBLIGATIONS, less current portion	364,801	901,707
LONG-TERM DEFERRED TAX LIABILITY	1,025,116	4,590,739
SHAREHOLDERS' EQUITY	'	'
Preferred stock, $1.00 par value; 4,000,000 shares authorized; issued - none	'	'
Common stock, $0.01 par value; 35,000,000 shares authorized 22,102,502 and 22,090,127 shares issued and outstanding in each period, respectively	221,025	220,901
Additional paid-in capital	32,052,956	31,508,662
Retained earnings	37,995,738	41,757,515
Treasury stock, at cost, 145,335 shares in each period	-1,251,099	-1,251,099
Accumulated other comprehensive income (loss) foreign currency translation adjustments	-5,028,950	-3,105,178
Total shareholders' equity	63,989,670	69,130,801
Total liabilities and shareholders' equity	$95,955,749	$98,301,538

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Preferred stock, par value (in dollars per share)	$1	$1
Preferred stock, shares authorized	4,000,000	4,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	22,102,502	22,090,127
Common stock, shares outstanding	22,102,502	22,090,127
Treasury stock, shares	145,335	145,335
Trade accounts receivable, allowance for doubtful accounts	$0	$0

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS	'	'	'	'
Revenue	$26,094,909	$21,115,045	$93,133,099	$115,806,689
Cost and expenses	'	'	'	'
Cost of services	25,071,320	18,492,618	76,641,928	90,011,820
Selling, general and administrative	2,288,412	2,391,946	7,060,970	7,226,433
Depreciation and amortization expense	4,708,500	6,057,092	14,639,933	19,110,476
Total cost and expenses	32,068,232	26,941,656	98,342,831	116,348,729
Loss from operations	-5,973,323	-5,826,611	-5,209,732	-542,040
Interest expense	148,770	275,509	506,296	903,667
Loss before income taxes	-6,122,093	-6,102,120	-5,716,028	-1,445,707
Income tax expense (benefit):	-2,112,616	-2,150,433	-1,954,251	158,537
NET LOSS	($4,009,477)	($3,951,687)	($3,761,777)	($1,604,244)
Net income (loss) per common share:	'	'	'	'
Basic (in dollars per share)	($0.18)	($0.18)	($0.17)	($0.07)
Diluted (in dollars per share)	($0.18)	($0.18)	($0.17)	($0.07)
Weighted average number of shares outstanding:	'	'	'	'
Basic (in shares)	21,957,167	21,832,831	21,956,804	21,805,692
Diluted (in shares)	21,957,167	21,832,831	21,956,804	21,805,692

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements of Comprehensive Income (Loss)	'	'	'	'
Net loss	($4,009,477)	($3,951,687)	($3,761,777)	($1,604,244)
Other comprehensive income (loss):	'	'	'	'
Foreign currency translation adjustments	-1,846,695	755,989	-1,923,772	-2,093,196
Comprehensive income (loss)	($5,856,172)	($3,195,698)	($5,685,549)	($3,697,440)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities	'	'
Net loss	($3,761,777)	($1,604,244)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'
Depreciation and amortization	14,639,933	19,110,476
Gain on disposal of property and equipment	-198,109	-635,265
Non-cash compensation	544,418	817,391
Deferred income taxes	-3,565,623	-2,792,520
Changes in operating assets and liabilities	'	'
Trade accounts receivable	1,617,495	23,374,057
Cost and estimated earnings in excess of billings on uncompleted contracts	-2,307,580	3,046,174
Prepaid expenses and other	2,053,325	2,105,774
Prepaid federal and state income tax	3,823,925	-1,673,101
Other assets	5,832	1,769
Trade accounts payable	3,237,349	-9,374,217
Accrued liabilities	831,063	-2,184,320
Billings in excess of cost and estimated earnings on uncompleted contracts	1,878,055	-2,741,145
Income tax payable	911,081	-3,543,613
Net cash provided by operating activities	19,709,387	23,907,216
Cash flows from investing activities	'	'
Capital expenditures	-1,258,607	-1,250,550
Proceeds from sale of property and equipment	342,618	1,090,607
Net cash used in investing activities	-915,989	-159,943
Cash flows from financing activities	'	'
Principal payments on notes payable	-8,528,861	-9,929,954
Principal payments on capital lease obligations	-1,153,137	-1,586,423
Proceeds from exercise of stock options	'	395,551
Payment of dividends	'	-939
Net cash used in financing activities	-9,681,998	-11,121,765
Net increase in cash and cash equivalents	9,111,400	12,625,508
Effect of exchange rates on cash	-177,658	96,048
Cash and cash equivalents at beginning of year	16,130,374	8,614,244
Cash and cash equivalents at end of year	25,064,116	21,335,800
Supplemental cash flow information	'	'
Interest paid	506,297	903,667
Income taxes paid	-3,056,012	8,167,772
Noncash investing and financing activities	'	'
Capital lease obligations incurred	161,533	368,396
Financed equipment purchase	6,096,173	'
Financed insurance premiums	3,045,297	3,064,370
Restricted stock awards to employees	100,200	25,441
Treasury shares issued for stock options exercised	'	$484,866

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2014
NATURE OF OPERATIONS	'
NATURE OF OPERATIONS	'
	NOTE A
	BASIS OF PRESENTATION
	The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q.  Accordingly, they do not include all of the financial information and footnotes required by generally accepted accounting principles for complete financial statements.  References to “we,” “us,” “our,” “its,” “TGC” or the “Company” refer to TGC Industries, Inc. and our subsidiaries.
	On October 8, 2014, the Company entered into a definitive merger agreement (the “Merger Agreement”) with Dawson Geophysical Company (“Dawson”), providing for the merger of Riptide Acquisition Corp., a wholly owned subsidiary of the Company formed for the purpose of the transaction, with and into Dawson, with Dawson continuing as the surviving entity and a wholly owned subsidiary of the Company (the “Merger”). The Merger Agreement provides for Dawson shareholders to receive per share consideration of 1.760 shares of the Company’s common stock after giving effect to a 1-for-3 reverse stock split that the Company agreed to implement immediately prior to the Merger. Upon consummation of the Merger, current Dawson and TGC shareholders will own approximately 66% and 34% of the combined company, respectively, and TGC will change its name to “Dawson Geophysical Company.” Closing of the Merger is anticipated during the first calendar quarter of 2015, subject to certain approvals by holders of 66.67% of the outstanding shares of both TGC and Dawson, as well as certain other closing conditions and regulatory approvals.
	CRITICAL ACCOUNTING POLICIES
	A discussion of our critical accounting policies can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. There have been no material changes to these policies (including critical accounting estimates and assumptions or judgments affecting the application of those estimates and assumptions) during the quarter ended September 30, 2014.  Certain policies have been paraphrased herein for convenience.
	REVENUE RECOGNITION
	Seismic Surveys
	The Company provides seismic data acquisition survey services to its customers under general service agreements which define certain obligations for the Company and for its customers.  The Company typically enters into a supplemental agreement setting forth the terms of each project, which may be cancelled by either party upon 30 days’ advance written notice.  These supplemental agreements are either “turnkey” agreements providing for a fixed fee to be paid for each unit of seismic data acquired or “term” agreements providing for a fixed hourly, daily, or monthly fee during the term of the project.  Under both types of agreements, the Company recognizes revenues when services have been performed and revenue is realizable.  Services are defined to begin at the commencement of data acquisition.  Revenues are deemed realizable when earned according to the terms of the contracts.  Under turnkey agreements, the total number of units of seismic data to be gathered is set forth in the agreement.  Revenue under turnkey agreements is recognized on a per unit of seismic data acquired rate as services are performed.  Revenue under term agreements is recognized on a per unit of time worked rate as services are performed based on the time worked rate provided in the term agreement.  In the event of a cancelled contract, revenue is recognized and the client is billed for services performed to the date of contract cancellation.  When it becomes evident that the estimates of total costs to be incurred on a contract will exceed the total estimates of revenue to be earned, an estimated loss is recognized in the period in which the loss is identifiable.  The asset “Cost and estimated earnings in excess of billings on uncompleted contracts” represents cost incurred on turnkey agreements in excess of billings on those agreements.  The liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings on turnkey agreements in excess of cost on those agreements.
	ACCUMULATED OTHER COMPREHENSIVE INCOME
	Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss.  Other comprehensive income or loss results from items deferred from recognition in the statement of operations, which consists solely of foreign currency translation adjustments.  Accumulated other comprehensive income (loss) is presented on the Company’s consolidated balance sheet as a part of shareholder’s equity.  In addition, the Company reports comprehensive income and its components in a separate statement of comprehensive income.
	Foreign currency translation income or loss represents changes in foreign currency rates used to translate the assets, liabilities, revenues and expenses of the Company’s international subsidiary from the local currency.  These changes in foreign currency rates may never be realized or may only be partially realized upon the ultimate disposition, if any, of the international subsidiary.  The Company’s foreign investment is considered permanent in nature as there are no plans in the foreseeable future for divestiture.
	RECENT ACCOUNTING PRONOUNCEMENTS
	In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”).  ASU 2013-11 clarifies the balance sheet presentation of an unrecognized tax benefit and was issued to resolve the diversity in practice that had developed in the absence any specific U.S. GAAP.  ASU 2013-11 is applicable to all entities that have an unrecognized tax benefit due to a net operating loss carryforward, a similar tax loss, of a tax credit carryforward.  The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and does not create any new disclosure requirements.  The Company adopted ASU 2013-11 on January 1, 2014, and it did not have a significant effect on its consolidated financial statements.
	In May 2014, the FASB issued ASU No. 2014-09, Revenue (Topic 606) - Revenue from Contracts with Customers (“ASU 2014-09”).  ASU 2014-09 supersedes nearly all existing revenue recognition guidance under U.S. GAAP and establishes a comprehensive revenue recognition standard for virtually all industries, including those that previously followed industry-specific guidance.  The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services.  It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled.  Three basic transition methods are available—full retrospective, retrospective with certain practical expedients, and a cumulative effect approach.  Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (i.e., January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings.  That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP.  ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods therein. Early adoption is prohibited.  The Company will adopt ASU 2014-09 on January 1, 2017.  The Company will begin evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

MANAGEMENT_PRESENTATION

MANAGEMENT PRESENTATION	9 Months Ended
	Sep. 30, 2014
MANAGEMENT PRESENTATION	'
MANAGEMENT PRESENTATION	'
	NOTE B — MANAGEMENT PRESENTATION
	In the opinion of management, all adjustments (consisting of normally recurring accruals) considered necessary for a fair presentation of financial position, results of operations, and changes in financial position have been included.  The results of the interim periods are not necessarily indicative of results to be expected for the entire year.  Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in this Form 10-Q report pursuant to certain rules and regulations of the Securities and Exchange Commission (the “SEC”).  For further information, refer to the financial statements and the footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

EARNINGS_LOSS_PER_SHARE

EARNINGS (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2014
EARNINGS (LOSS) PER SHARE	'
EARNINGS (LOSS) PER SHARE	'
	NOTE C — EARNINGS (LOSS) PER SHARE
	Basic earnings per common share are based upon the weighted average number of shares of common stock (“common shares”) outstanding.  Diluted earnings per share are based upon the weighted average number of common shares outstanding and, when dilutive, common shares issuable for stock options, warrants, and convertible securities.  All earnings per common share have been adjusted for the 5% stock dividend paid on May 14, 2013, to shareholders of record as of April 30, 2013.
	The following is a reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted earnings per share:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		(Unaudited)						(Unaudited)
		2014			2013			2014			2013
	Basic:
	Numerator:
	Net loss	$	(4,009,477	)	$	(3,951,687	)	$	(3,761,777	)	$	(1,604,244	)
	Denominator:
	Basic - weighted average common shares outstanding	21,957,167			21,832,831			21,956,804			21,805,692
	Basic EPS	$	(0.18	)	$	(0.18	)	$	(0.17	)	$	(0.07	)
	Diluted:
	Numerator:
	Net loss	$	(4,009,477	)	$	(3,951,687	)	$	(3,761,777	)	$	(1,604,244	)
	Denominator:
	Weighted average common shares outstanding	21,957,167			21,832,831			21,956,804			21,805,692
	Effect of Dilutive Securities:
	Stock options	—			—			—			—
		21,957,167			21,832,831			21,956,804			21,805,692
	Diluted EPS	$	(0.18	)	$	(0.18	)	$	(0.17	)	$	(0.07	)

DIVIDENDS

DIVIDENDS	9 Months Ended
	Sep. 30, 2014
DIVIDENDS	'
DIVIDENDS	'
	NOTE D — DIVIDENDS
	On April 19, 2013, the Company declared a five percent (5%) stock dividend on its outstanding common shares.  The 5% stock dividend was paid on May 14, 2013, to shareholders of record as of April 30, 2013.  There have been no dividends declared or paid in 2014.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2014
INCOME TAXES	'
INCOME TAXES	'
	NOTE E — INCOME TAXES
	Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes.  In addition, the Company paid, during the first nine months of 2014, federal and various state estimated income taxes for tax year 2014, as well as various state income taxes for tax year 2013.

SHAREBASED_COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2014
SHARE-BASED COMPENSATION.	'
SHARE-BASED COMPENSATION	'
	NOTE F — SHARE-BASED COMPENSATION
	The Company accounts for share-based compensation awards and for unvested awards outstanding using the modified prospective application method.  Accordingly, we recognized the fair value of the share-based compensation awards as wages in the Consolidated Statements of Operations on a straight-line basis over the vesting period.  We have recognized compensation expense, relative to share-based awards, in wages in the Consolidated Statements of Operations of approximately $164,000 and $158,000, or less than $0.01 per share for the three months ended September 30, 2014, and 2013, and approximately $544,000 and $817,000, or approximately $0.02 and $0.04 per share, for the nine months ended September 30, 2014, and 2013, respectively.
	As of September 30, 2014, there was approximately $488,000 of unrecognized compensation expense related to our two share-based compensation plans which the Company expects to recognize over a period of three years.

BASIS_OF_PRESENTATION_Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2014
NATURE OF OPERATIONS	'
BASIS OF PRESENTATION	'
	BASIS OF PRESENTATION
	The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q.  Accordingly, they do not include all of the financial information and footnotes required by generally accepted accounting principles for complete financial statements.  References to “we,” “us,” “our,” “its,” “TGC” or the “Company” refer to TGC Industries, Inc. and our subsidiaries.
	On October 8, 2014, the Company entered into a definitive merger agreement (the “Merger Agreement”) with Dawson Geophysical Company (“Dawson”), providing for the merger of Riptide Acquisition Corp., a wholly owned subsidiary of the Company formed for the purpose of the transaction, with and into Dawson, with Dawson continuing as the surviving entity and a wholly owned subsidiary of the Company (the “Merger”). The Merger Agreement provides for Dawson shareholders to receive per share consideration of 1.760 shares of the Company’s common stock after giving effect to a 1-for-3 reverse stock split that the Company agreed to implement immediately prior to the Merger. Upon consummation of the Merger, current Dawson and TGC shareholders will own approximately 66% and 34% of the combined company, respectively, and TGC will change its name to “Dawson Geophysical Company.” Closing of the Merger is anticipated during the first calendar quarter of 2015, subject to certain approvals by holders of 66.67% of the outstanding shares of both TGC and Dawson, as well as certain other closing conditions and regulatory approvals.
REVENUE RECOGNITION	'
	REVENUE RECOGNITION
	Seismic Surveys
	The Company provides seismic data acquisition survey services to its customers under general service agreements which define certain obligations for the Company and for its customers.  The Company typically enters into a supplemental agreement setting forth the terms of each project, which may be cancelled by either party upon 30 days’ advance written notice.  These supplemental agreements are either “turnkey” agreements providing for a fixed fee to be paid for each unit of seismic data acquired or “term” agreements providing for a fixed hourly, daily, or monthly fee during the term of the project.  Under both types of agreements, the Company recognizes revenues when services have been performed and revenue is realizable.  Services are defined to begin at the commencement of data acquisition.  Revenues are deemed realizable when earned according to the terms of the contracts.  Under turnkey agreements, the total number of units of seismic data to be gathered is set forth in the agreement.  Revenue under turnkey agreements is recognized on a per unit of seismic data acquired rate as services are performed.  Revenue under term agreements is recognized on a per unit of time worked rate as services are performed based on the time worked rate provided in the term agreement.  In the event of a cancelled contract, revenue is recognized and the client is billed for services performed to the date of contract cancellation.  When it becomes evident that the estimates of total costs to be incurred on a contract will exceed the total estimates of revenue to be earned, an estimated loss is recognized in the period in which the loss is identifiable.  The asset “Cost and estimated earnings in excess of billings on uncompleted contracts” represents cost incurred on turnkey agreements in excess of billings on those agreements.  The liability “Billings in excess of costs and estimated earnings on uncompleted contracts” represents billings on turnkey agreements in excess of cost on those agreements.
ACCUMULATED OTHER COMPREHENSIVE INCOME	'
	ACCUMULATED OTHER COMPREHENSIVE INCOME
	Comprehensive income is a measure of income which includes both net income and other comprehensive income or loss.  Other comprehensive income or loss results from items deferred from recognition in the statement of operations, which consists solely of foreign currency translation adjustments.  Accumulated other comprehensive income (loss) is presented on the Company’s consolidated balance sheet as a part of shareholder’s equity.  In addition, the Company reports comprehensive income and its components in a separate statement of comprehensive income.
	Foreign currency translation income or loss represents changes in foreign currency rates used to translate the assets, liabilities, revenues and expenses of the Company’s international subsidiary from the local currency.  These changes in foreign currency rates may never be realized or may only be partially realized upon the ultimate disposition, if any, of the international subsidiary.  The Company’s foreign investment is considered permanent in nature as there are no plans in the foreseeable future for divestiture.
RECENT ACCOUNTING PRONOUNCEMENTS	'
	RECENT ACCOUNTING PRONOUNCEMENTS
	In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”).  ASU 2013-11 clarifies the balance sheet presentation of an unrecognized tax benefit and was issued to resolve the diversity in practice that had developed in the absence any specific U.S. GAAP.  ASU 2013-11 is applicable to all entities that have an unrecognized tax benefit due to a net operating loss carryforward, a similar tax loss, of a tax credit carryforward.  The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, and does not create any new disclosure requirements.  The Company adopted ASU 2013-11 on January 1, 2014, and it did not have a significant effect on its consolidated financial statements.
	In May 2014, the FASB issued ASU No. 2014-09, Revenue (Topic 606) - Revenue from Contracts with Customers (“ASU 2014-09”).  ASU 2014-09 supersedes nearly all existing revenue recognition guidance under U.S. GAAP and establishes a comprehensive revenue recognition standard for virtually all industries, including those that previously followed industry-specific guidance.  The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services.  It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled.  Three basic transition methods are available—full retrospective, retrospective with certain practical expedients, and a cumulative effect approach.  Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (i.e., January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings.  That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP.  ASU 2014-09 is effective for annual periods beginning after December 15, 2016, including interim periods therein. Early adoption is prohibited.  The Company will adopt ASU 2014-09 on January 1, 2017.  The Company will begin evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017.

EARNINGS_LOSS_PER_SHARE_Tables

EARNINGS (LOSS) PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2014
EARNINGS (LOSS) PER SHARE	'
Schedule of reconciliation of net income (loss) and weighted average common shares outstanding for purposes of calculating basic and diluted net income (loss) per share	'
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		(Unaudited)						(Unaudited)
		2014			2013			2014			2013
	Basic:
	Numerator:
	Net loss	$	(4,009,477	)	$	(3,951,687	)	$	(3,761,777	)	$	(1,604,244	)
	Denominator:
	Basic - weighted average common shares outstanding	21,957,167			21,832,831			21,956,804			21,805,692
	Basic EPS	$	(0.18	)	$	(0.18	)	$	(0.17	)	$	(0.07	)
	Diluted:
	Numerator:
	Net loss	$	(4,009,477	)	$	(3,951,687	)	$	(3,761,777	)	$	(1,604,244	)
	Denominator:
	Weighted average common shares outstanding	21,957,167			21,832,831			21,956,804			21,805,692
	Effect of Dilutive Securities:
	Stock options	—			—			—			—
		21,957,167			21,832,831			21,956,804			21,805,692
	Diluted EPS	$	(0.18	)	$	(0.18	)	$	(0.17	)	$	(0.07	)

BASIS_OF_PRESENTATION_Details

BASIS OF PRESENTATION (Details)	9 Months Ended		0 Months Ended
	Sep. 30, 2014	Oct. 08, 2014	Oct. 08, 2014	Oct. 08, 2014
			Subsequent Event [Member]	Subsequent Event [Member]
			Dawson Geophysical Company [Member]	Dawson Geophysical Company [Member]
Merger	'	'	'	'
Share consideration (in shares)	'	'	1.76	'
Reverse stock split ratio	'	'	0.33	'
Percentage of ownership interest	'	34.00%	'	66.00%
Percentage of outstanding shares subject to approvaL by shareholders	'	'	66.67%	'
Revenue Recognition	'	'	'	'
Minimum period of prior notice to cancel supplemental agreement	'30 days	'	'	'

EARNINGS_LOSS_PER_SHARE_Detail

EARNINGS (LOSS) PER SHARE (Details) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	14-May-13	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
EARNINGS (LOSS) PER SHARE	'	'	'	'	'
Percentage of dividend paid on common stock	5.00%	'	'	0.00%	'
Numerator:	'	'	'	'	'
Net income	'	($4,009,477)	($3,951,687)	($3,761,777)	($1,604,244)
Denominator:	'	'	'	'	'
Basic - weighted average common shares outstanding	'	21,957,167	21,832,831	21,956,804	21,805,692
Basic EPS (in dollars per share)	'	($0.18)	($0.18)	($0.17)	($0.07)
Numerator:	'	'	'	'	'
Net income	'	($4,009,477)	($3,951,687)	($3,761,777)	($1,604,244)
Denominator:	'	'	'	'	'
Weighted average common shares outstanding	'	21,957,167	21,832,831	21,956,804	21,805,692
Effect of Dilutive Securities:	'	'	'	'	'
Diluted - weighted average common shares outstanding	'	21,957,167	21,832,831	21,956,804	21,805,692
Diluted EPS (in dollars per share)	'	($0.18)	($0.18)	($0.17)	($0.07)

DIVIDENDS_Details

DIVIDENDS (Details)	0 Months Ended	9 Months Ended
	14-May-13	Sep. 30, 2014	Apr. 19, 2013
DIVIDENDS	'	'	'
Percentage of dividend declared on common stock	'	0.00%	5.00%
Percentage of dividend paid on common stock	5.00%	0.00%	'

SHAREBASED_COMPENSATION_Detail

SHARE-BASED COMPENSATION (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	item		item
Allocation of stock-based compensation cost	'	'	'	'
Compensation expense per share (in dollars per share)	'	'	$0.02	$0.04
Recognized stock-based compensation expense	$164,000	$158,000	$544,000	$817,000
Unrecognized compensation expense related to share-based compensation plans	$488,000	'	$488,000	'
Number of stock-based compensation plans	2	'	2	'
Period over which unrecognized compensation expense is expected to be recognized	'	'	'3 years	'
Maximum	'	'	'	'
Allocation of stock-based compensation cost	'	'	'	'
Compensation expense per share (in dollars per share)	$0.01	$0.01	'	'