Dawson Geophysical (DWSN) 10-Q 2 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 30, 2018
Document and Entity Information
Entity Registrant Name	DAWSON GEOPHYSICAL CO
Entity Central Index Key	799,165
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		22,943,639
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 28,163	$ 22,013
Short-term investments	17,583	16,583
Accounts receivable, net	29,800	33,156
Current maturities of notes receivable	63	695
Prepaid expenses and other current assets	6,758	7,340
Total current assets	82,367	79,787
Property and equipment, net	76,565	86,573
Notes receivable, net of current maturities	1,460	841
Intangibles, net	421	494
Long-term deferred tax assets, net	224	224
Total assets	161,037	167,919
Current liabilities:
Accounts payable	10,037	5,933
Accrued liabilities:
Payroll costs and other taxes	1,886	1,151
Other	4,020	4,314
Deferred revenue	2,779	6,314
Current maturities of notes payable and obligations under capital leases	5,090	2,712
Total current liabilities	23,812	20,424
Long-term liabilities:
Notes payable and obligations under capital leases, net of current maturities	7,373	5,153
Deferred tax liabilities, net	445	874
Other accrued liabilities	150	150
Total long-term liabilities	7,968	6,177
Commitments and contingencies
Stockholders' equity:
Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding
Common stock-par value $0.01 per share; 35,000,000 shares authorized, 22,992,084 and 22,926,805 shares issued, and 22,943,639 and 22,878,360 shares outstanding at September 30, 2018 and December 31, 2017, respectively	230	229
Additional paid-in capital	152,885	151,881
Retained deficit	(22,702)	(10,012)
Treasury stock, at cost; 48,445 shares
Accumulated other comprehensive loss, net	(1,156)	(780)
Total stockholders' equity	129,257	141,318
Total liabilities and stockholders' equity	$ 161,037	$ 167,919

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
CONDENSED 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 outstanding	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	22,992,084	22,926,805
Common stock, shares outstanding	22,943,639	22,878,360
Treasury stock, shares	48,445	48,445

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Operating revenues	$ 40,448	$ 45,108	$ 126,486	$ 119,114
Operating costs:
Operating expenses	34,419	36,238	104,393	109,010
General and administrative	4,136	3,445	12,061	12,296
Depreciation and amortization	7,127	9,724	23,197	29,750
Operating expenses, total	45,682	49,407	139,651	151,056
Loss from operations	(5,234)	(4,299)	(13,165)	(31,942)
Other income (expense):
Interest income	147	87	257	230
Interest expense	(74)	(25)	(244)	(61)
Other (expense) income	(242)	(103)	172	136
Loss before income tax	(5,403)	(4,340)	(12,980)	(31,637)
Income tax benefit	232	1,418	389	4,635
Net loss	(5,171)	(2,922)	(12,591)	(27,002)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation, net	216	395	(333)	750
Comprehensive loss	$ (4,955)	$ (2,527)	$ (12,924)	$ (26,252)
Basic loss per share of common stock	$ (0.23)	$ (0.13)	$ (0.55)	$ (1.19)
Diluted loss per share of common stock	$ (0.23)	$ (0.13)	$ (0.55)	$ (1.19)
Weighted average equivalent common shares outstanding	22,926,764	22,786,745	22,901,558	22,765,548
Weighted average equivalent common shares outstanding - assuming dilution	22,926,764	22,786,745	22,901,558	22,765,548

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (12,591)	$ (27,002)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	23,197	29,750
Noncash compensation	980	706
Deferred income tax (benefit) expense	(403)	1,257
Gain on proceeds from insurance settlements		(375)
Change in other accrued long-term liabilities		(1,470)
Loss (gain) on disposal of assets	8	(869)
Other	186	444
Change in current assets and liabilities:
Decrease (increase) in accounts receivable	2,491	(9,371)
Decrease in prepaid expenses and other current assets	883	166
Increase in accounts payable	1,110	2,267
Increase in accrued liabilities	446	1,987
Decrease in deferred revenue	(3,535)	(799)
Net cash provided by (used in) operating activities	12,772	(3,309)
Cash flows from investing activities:
Capital expenditures, net of noncash capital expenditures summarized below	(10,760)	(8,301)
Proceeds from maturity of short-term investments	39,000	50,250
Acquisition of short-term investments	(40,000)	(22,000)
Proceeds from disposal of assets	409	696
Proceeds from flood insurance claims	687	375
Proceeds from notes receivable	13	97
Net cash (used in) provided by investing activities	(10,651)	21,117
Cash flows from financing activities:
Proceeds from notes payable	6,518
Principal payments on notes payable	(192)	(2,131)
Principal payments on obligations under capital leases	(2,018)	(374)
Tax withholdings related to stock-based compensation awards	(116)	(58)
Cash in lieu of stock dividend paid	(1)
Net cash provided by (used in) financing activities	4,191	(2,563)
Effect of exchange rate changes on cash and cash equivalents	(162)	634
Net increase in cash and cash equivalents	6,150	15,879
Cash and cash equivalents at beginning of period	22,013	14,624
Cash and cash equivalents at end of period	28,163	30,503
Supplemental cash flow information:
Cash paid for interest	233	46
Cash received for income taxes		2,538
Noncash investing and financing activities:
Increase (decrease) in accrued purchases of property and equipment	3,027	(1,542)
Capital lease obligations incurred		8,517
Financed insurance premiums	$ 304	248
Equipment sales financed for buyer		(1,500)
Sales tax on equipment sales financed for buyer		$ (132)

ORGANIZATION AND NATURE OF OPER

ORGANIZATION AND NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2018
ORGANIZATION AND NATURE OF OPERATIONS
ORGANIZATION AND NATURE OF OPERATIONS	1. ORGANIZATION AND NATURE OF OPERATIONS Dawson Geophysical Company (the “Company”) is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States (“U.S.”) and Canada. The Company acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the U.S. for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the U.S. have been omitted. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) as discussed below. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standard, as indicated by “as adjusted”. The Board of Directors approved a 5% stock dividend (or 0.05 share for each share outstanding) on the outstanding shares of common stock of the Company on May 1, 2018. The stock dividend was paid on May 29, 2018 to shareholders of record on May 14, 2018. All comparative financial statement presentations have been retroactively adjusted to reflect the dividend. Significant Accounting Policies Principles of Consolidation. The condensed consolidated financial statements for the three and nine months ended September 30, 2018 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Eagle Canada, Inc., Dawson Seismic Services Holdings, Inc., Eagle Canada Seismic Services ULC, and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Notes Receivable. The Company’s notes receivable consist of one note receivable from the purchaser of certain dynamite energy source drilling equipment. This note receivable is stated at the unpaid principal balance. An allowance for note losses was not deemed necessary at September 30, 2018. Interest is recognized over the term of the note and is calculated using the simple-interest method. Amounts payable to the Company under the note receivable are fully collateralized by the specific dynamite energy source drilling equipment sold to the note payor. Allowance for Doubtful Accounts. Management prepares its allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs and its current client base. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. The Company’s allowance for doubtful accounts was $250,000 at September 30, 2018 and December 31, 2017. Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period. Impairment of Long-lived Assets . Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value. Stock-Based Compensation . The Company measures all stock-based compensation awards, which include stock options, restricted stock, restricted stock units and common stock awards, using the fair value method and recognizes compensation expense as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates. Revenue Recognition . Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is recognized based on square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated revenue for the service contract. In the case of a cancelled service contract, the client is billed and revenue is recognized for any third party charges and square miles of data recorded up to the date of cancellation. The Company receives reimbursements for certain out-of-pocket expenses under the terms of the service contracts. The amounts billed to clients are included at their gross amount in the total estimated revenue for the service contract. Clients are billed as permitted by the service contract. Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. If billing occurs prior to the revenue recognition or billing exceeds the revenue recognized, the amount is considered deferred revenue and a contract liability. Conversely, if the revenue recognition exceeds the billing, the excess is considered an unbilled receivable and a contract asset. As services are performed, those deferred revenue amounts are recognized as revenue. In some instances, third-party permitting, surveying, drilling, helicopter, equipment rental and mobilization costs that directly relate to the contract are utilized to fulfill the contract obligations. These fulfillment costs are capitalized in other current assets and amortized based on the total square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated fulfillment costs for the service contract. Estimates for total revenue and total fulfillment cost on any service contract are based on significant qualitative and quantitative judgments. Management considers a variety of factors such as whether various components of the performance obligation will be performed internally or externally, cost of third party services, and facts and circumstances unique to the performance obligation in making these estimates. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Topic 606 related to revenue recognition in which an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 effective January 1, 2018, using the full retrospective method, which required us to adjust our condensed consolidated financial statements from amounts previously reported for each prior reporting period presented. This included the recognition of additional revenue and expense deferred from 2016 into 2017 as we had not yet recorded data, but without a change in income tax as the Company was in a full valuation allowance. In addition, adoption of the standard resulted in an increase in accounts receivable, other current assets and deferred revenue due to the recognition in 2017 and 2018 of deferrals from 2016 and 2017. The Company recognized the cumulative effect of adopting the guidance as an adjustment to our opening balance of retained earnings as of January 1, 2016. The Company elected several ongoing and transitional practical expedients including (i) to ignore the financing component when estimating the transaction price for service contracts completed within one year, (ii) to exclude sales tax collected from the customer when determining the transaction price, (iii) to not restate contracts that begin and end within the same annual reporting period, (iv) to use the transaction price at the completion of the contract to retrospectively apply the new guidance, and (v) to not disclose the remaining performance obligations for the reporting periods presented before the date of initial application. Adjustments to Condensed Consolidated Financial Statements related to Topic 606 are shown in Note 4 - Supplemental Consolidated Financial Statement Information. Recently Issued Accounting Pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances . Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s condensed consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act passed by the U.S. federal government in December 2017 . The Company adopted ASU 2018-02 in the first quarter of 2018 and recorded an adjustment to Stockholders’ Equity within the Condensed Consolidated Balance Sheets that did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting . The Company adopted this guidance in the first quarter of 2018, and it did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Qualitative and quantitative disclosures are required and optional practical expedients may be elected. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period. Subsequent amendments to the initial guidance have been issued in January 2017, January 2018, and July 2018 within ASU No. 2017-03, ASU No. 2018-01, ASU No. 2018-10, and ASU No. 2018-11 regarding qualitative disclosures, optional practical expedients, codification improvements and an optional transition method to adopt with a cumulative-effect adjustment versus a modified retrospective approach. These updates do not change the core principle of the guidance under ASU No. 2016-02, but rather provide implementation guidance. The Company is nearing completion of the review of its existing leases and plans to implement ASU No. 2016-02 using the cumulative-effect transition method. The Company anticipates recognizing on its balance sheet certain right-of-use assets and lease liabilities, which consist primarily of office and shop space operating leases that are currently off-balance sheet. The Company is still evaluating the impact the adoption of this accounting standard will have on the Company’s results of operations, cash flows and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying, and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s condensed consolidated financial statements. In August 2018, the SEC adopted amendments to simplify certain disclosure requirements, as set forth in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which includes a requirement for entities to present the changes in shareholders’ equity in the interim financial statements in quarterly reports on Form 10-Q. This amendment is effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendment and proximity to the filing date for most filers’ quarterly reports, the SEC has allowed for a filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date. The Company has elected to adopt the SEC’s delayed implementation option and will present the changes in shareholders’ equity on an interim basis in the first quarter of 2019.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	3. FAIR VALUE OF FINANCIAL INSTRUMENTS At September 30, 2018 and December 31, 2017, the Company’s financial instruments included cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, notes receivable, other current assets, accounts payable, other current liabilities and notes payable. Due to the short-term maturities of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities, the carrying amounts approximate fair value at the respective balance sheet dates. The carrying value of the notes receivable and notes payable approximate their fair value based on a comparison with the prevailing market interest rate. Due to the short-term maturities of the Company’s investments in certificates of deposit, the carrying amounts approximate fair value at the respective balance sheet dates. The fair values of the Company’s notes receivable, notes payable and investments in certificates of deposit are level 2 measurements in the fair value hierarchy .

SUPPLEMENTAL CONSOLIDATED FINAN

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION	9 Months Ended
	Sep. 30, 2018
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION
SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION	4. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION Except for the items mentioned below, no other balance sheet opening balances were materially impacted at January 1, 2017 for the adoption of Topic 606. Deferred Costs (in thousands) The opening balance of deferred cost was $2,991 and $3,668 at January 1, 2018 and 2017, respectively. The Company’s prepaid expenses and other current assets at September 30, 2018 and 2017 included deferred costs incurred to fulfill contracts with customers of $3,157 and $1,625, respectively. Deferred costs at September 30, 2018 compared to January 1, 2018 remained fairly consistent. Deferred cost at September 30, 2017 compared to January 1, 2017 decreased primarily as a result of the completion of several projects during that nine month period that had significant deferred fulfillment costs at January 1, 2017. The amount of total deferred costs amortized for the third quarter and first nine months of 2018 was $14,757 and $29,004, respectively. The amount of total deferred cost amortized for the third quarter and first nine months of 2017 was $12,485 and $35,773, respectively. There were no material impairment losses incurred during these periods. Deferred Revenue (in thousands) The opening balance of deferred revenue was $6,314 and $5,385 at January 1, 2018 and 2017, respectively. The Company’s deferred revenue at September 30, 2018 and 2017 was $2,779 and $4,587, respectively. Deferred revenue at September 30, 2018 compared to January 1, 2018 decreased primarily as a result of completing projects for clients with large prepayments for third party reimbursables. Deferred revenue at September 30, 2017 compared to January 1, 2017 decreased primarily as a result of the completion of projects that had deferred revenue at January 1, 2017. Revenue recognized for the third quarter and first nine months of 2018 that was included in the contract liability balance at the beginning of 2018 was $634 and $5,945, respectively. Revenue recognized for the third quarter and first nine months of 2017 that was included in the contract liability balance at the beginning of 2017 was $96 and $4,806, respectively. Adjustments to Condensed Consolidated Financial Statements The following tables reflect the adjustments applied to our condensed consolidated financial statements related to both the adoption of Topic 606 and the 5% stock dividend discussed in Note 2 – Summary of Significant Accounting Policies’ Basis of Presentation. Select line items from the Company’s Condensed Consolidated Balance Sheets which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands): December 31, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Current assets: Accounts receivable, net $ $ $ Prepaid expenses and other current assets $ $ $ Current liabilities: Deferred revenue $ $ $ Stockholders' equity: Common Stock $ $ $ Additional paid-in capital $ $ $ Retained deficit $ $ $ $ Select line items from the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss which reflect the adoption of the new standard and the 5% stock dividend are as follows (in thousands except share and per share data): Three Months Ended September 30, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Operating revenues $ $ $ Operating costs: Operating expenses $ $ $ Loss from operations $ $ $ Net loss $ $ $ Basic and diluted loss per share of common stock $ (0.13) $ — $ — $ (0.13) Weighted average equivalent common shares outstanding and outstanding - assuming dilution 21,701,662 1,085,083 22,786,745 Nine Months Ended September 30, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Operating revenues $ $ $ Operating costs: Operating expenses $ $ $ Loss from operations $ $ $ Net loss $ $ $ Basic and diluted loss per share of common stock $ (1.23) $ — $ 0.04 $ (1.19) Weighted average equivalent common shares outstanding and outstanding - assuming dilution 21,681,474 1,084,074 22,765,548 Select line items from the Company’s Condensed Consolidated Statements of Cash Flows which reflect the adoption of the new standard are as follows (in thousands): Nine Months Ended September 30, 2017 As Previously Reported Topic 606 Adjustments As Adjusted Cash flows from operating activities: Net loss $ $ $ Change in current assets and liabilities: Increase in accounts receivable $ $ $ (Increase) decrease in prepaid expenses and other current assets $ $ $ Increase in accounts payable $ $ $ Increase (decrease) in deferred revenue $ $ $ Net cash used in operating activities $ $ — $

DEBT

DEBT	9 Months Ended
	Sep. 30, 2018
DEBT
DEBT	5. DEBT Credit Agreement The Company’s existing amended and restated credit agreement (the “Credit Agreement”) with Veritex Community Bank, a Texas state bank (“Veritex Bank”), includes term loan and revolving loan features, and also allows for the issuance of letters of credit and other promissory notes. The Company can borrow up to a maximum of $20.0 million pursuant to the Credit Agreement, subject to the terms and limitations discussed below. The Credit Agreement provides for a revolving loan feature (the “Line of Credit”) that permits the Company to borrow, repay and re-borrow, from time to time until June 30, 2019, up to the lesser of (i) $20.0 million or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable (less the outstanding principal balance of term loans and letters of credit under the Credit Agreement) and (b) the lesser of (i) 50% of the value of certain of the Company’s core equipment or (ii) $12,500,000. The Company has not utilized the Line of Credit since its inception. Because the Company’s ability to borrow funds under the Line of Credit is tied to the amount of the Company’s eligible accounts receivable and value of certain of its core equipment, if the Company’s accounts receivable decrease materially for any reason, including delays, reductions or cancellations by clients, or decreased demand for the Company’s services, or the value of the Company’s pledged core equipment decreases materially, the Company’s borrowing ability to fund operations or other obligations may be reduced. The Credit Agreement also provides for a term loan feature. Any notes outstanding under this feature would count toward the maximum amounts the Company may borrow under the Credit Agreement. The Company does not currently have any notes payable under the term loan feature of the Credit Agreement. The Company has one outstanding note payable under the Credit Agreement that is not under the term loan feature (and therefore does not count towards the maximum amounts that the Company may borrow) which was incurred on September 13, 2018 to purchase (and is secured by) equipment and has a remaining aggregate principal amount of $6,518,000 as of September 30, 2018. The note payable will mature upon the earlier of (i) the acceleration of the indebtedness pursuant to the terms of the Company’s existing credit facility with Veritex Bank or (ii) September 13, 2021. The Company’s obligations under the Line of Credit are secured by a security interest in the Company’s accounts receivable and certain of the Company’s core equipment, and the term loans are also secured by certain of the Company’s core equipment. Interest on amounts outstanding under the Credit Agreement accrues at the lesser of 4.5% or the prime rate (as quoted in the Wall Street Journal ), subject to an interest rate floor of 2.5%. The Credit Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets, mergers and other fundamental changes. The Company is also obligated to meet certain financial covenants, including (i) a ratio of (x) total liabilities minus subordinated debt to (y) tangible net worth plus subordinated debt not to exceed 1.00:1.00, (ii) a ratio of current assets to current liabilities of at least 1.50:1.00 and (iii) required tangible net worth of not less than $100,000,000. The Company was in compliance with all covenants under the Credit Agreement, including specified ratios, as of September 30, 2018. Veritex Bank has also issued three letters of credit as of September 30, 2018. The first letter of credit is in the amount of $1,767,000 to support payment of certain insurance obligations of the Company. The principal amount of this letter of credit is collateralized by certain of the Company’s core equipment. The second letter of credit is in the amount of $583,000 to support the company’s workers compensation insurance and is secured by a certificate of deposit. The third letter of credit is unsecured and in the amount of $75,000 to support certain performance obligations of the Company. None of the letters of credit counts as funds borrowed under the Company’s Line of Credit. Other Indebtedness The Company has one outstanding note, in the remaining principal amount of $112,000 at September 30, 2018 payable to a finance company for insurance. In addition, the Company enters into capital lease obligations for certain vehicles and recording equipment. The Company’s Condensed Consolidated Balance Sheets include capital lease obligations of $5,833,000 as of September 30, 2018 . Maturities and Interest Rates of Debt The following table sets forth the aggregate principal amount (in thousands) under the Company’s outstanding notes payable and the interest rates as of September 30, 2018 and December 31, 2017. September 30, 2018 December 31, 2017 Notes payable to commercial banks Aggregate principal amount outstanding $ $ — Interest rates — September 30, 2018 December 31, 2017 Notes payable to finance company for insurance Aggregate principal amount outstanding $ $ — Interest rates — The aggregate maturities of the notes payable at September 30, 2018 are as follows (in thousands): October 2018 - September 2019 $ October 2019 - September 2020 October 2020 - September 2021 Obligations under notes payable $ The aggregate maturities of obligations under capital leases at September 30, 2018 are as follows (in thousands): October 2018 - September 2019 $ October 2019 - September 2020 October 2020 - September 2021 Obligations under capital leases $ Interest rates on these leases range from 4.65% to 4.93%.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	6. COMMITMENTS AND CONTINGENCIES From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. Although the Company cannot predict the outcomes of any such legal proceedings, management believes that the resolution of pending legal actions will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity, as the Company believes it is adequately indemnified and insured. The Company experiences contractual disputes with its clients from time to time regarding the payment of invoices or other matters. While the Company seeks to minimize these disputes and maintain good relations with its clients, the Company has experienced in the past, and may experience in the future, disputes that could affect its revenues and results of operations in any period. The Company has non-cancelable operating leases for office and shop space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta.

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2018
NET LOSS PER SHARE
NET LOSS PER SHARE	7. NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss by the weighted average shares outstanding. Diluted loss per share is computed by dividing the net loss by the weighted average diluted shares outstanding. The computation of basic and diluted loss per share is as follows (in thousands, except share and per share data) : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (as adjusted) (as adjusted) Net loss $ (5,171) $ (2,922) $ (12,591) $ (27,002) Weighted average common shares outstanding: Basic 22,926,764 22,786,745 22,901,558 22,765,548 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — — — Diluted 22,926,764 22,786,745 22,901,558 22,765,548 Basic loss per share of common stock $ (0.23) $ (0.13) $ (0.55) $ (1.19) Diluted loss per share of common stock $ (0.23) $ (0.13) $ (0.55) $ (1.19) The Company had a net loss in the three and nine months ended September 30, 2018 and 2017. As a result, all stock options, restricted stock unit awards, and restricted stock awards were anti-dilutive and excluded from weighted average shares used in determining the diluted loss per share of common stock for the respective periods. The following weighted average numbers of stock options, restricted stock unit awards, and restricted stock awards, in each case as adjusted for the 5% stock dividend paid to shareholders on May 29, 2018, have been excluded from the calculation of diluted loss per share of common stock, as their effect would be anti-dilutive for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 310,059 343,210 316,012 364,978 Restricted stock units 651,482 397,830 522,333 308,293 Non-participating restricted stock awards 65,974 74,725 67,417 77,716 Total 1,027,515 815,765 905,762 750,987

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2018
INCOME TAXES
INCOME TAXES	8. INCOME TAXES For the three and nine months ended September 30, 2018, the Company's effective tax rate was 4.3% and 3.0%, respectively. For the three and nine months ended September 30, 2017, the Company’s effective tax rate was 32.7% and 14.7%, respectively. The Company’s year to date effective tax rate decreased compared to the corresponding period from the prior year primarily due to the reversal of accrued uncertain tax position liabilities associated with the processing of outstanding amended returns that were accepted in the first and third quarters of 2017 and the associated refunds received. The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three year period ended December 31, 2016. Such objective evidence limits the ability to consider other subjective evidence, such as projections for taxable earnings. The income tax benefit for the three and nine months ended September 30, 2018 does not include income tax benefits for all of the losses incurred because the Company recorded valuation allowances against significantly all of its federal, state and foreign deferred tax assets. The Company has recorded valuation allowances against the associated deferred tax assets for the amounts it deems are not more likely than not realizable. Based on management’s belief that not all the net operating losses are realizable, a federal valuation allowance and additional state valuation allowances were maintained during the nine months ended September 30, 2018 and 2017. In addition, due to the Company’s recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the condensed consolidated financial statements. The amount of the valuation allowances considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	9. SUBSEQUENT EVENTS None.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation. The condensed consolidated financial statements for the three and nine months ended September 30, 2018 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Eagle Canada, Inc., Dawson Seismic Services Holdings, Inc., Eagle Canada Seismic Services ULC, and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Notes Receivable	Notes Receivable. The Company’s notes receivable consist of one note receivable from the purchaser of certain dynamite energy source drilling equipment. This note receivable is stated at the unpaid principal balance. An allowance for note losses was not deemed necessary at September 30, 2018. Interest is recognized over the term of the note and is calculated using the simple-interest method. Amounts payable to the Company under the note receivable are fully collateralized by the specific dynamite energy source drilling equipment sold to the note payor.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts. Management prepares its allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs and its current client base. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. The Company’s allowance for doubtful accounts was $250,000 at September 30, 2018 and December 31, 2017.
Property and Equipment	Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period.
Impairment of Long-lived Assets	Impairment of Long-lived Assets . Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value.
Stock-Based Compensation	Stock-Based Compensation . The Company measures all stock-based compensation awards, which include stock options, restricted stock, restricted stock units and common stock awards, using the fair value method and recognizes compensation expense as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition . Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is recognized based on square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated revenue for the service contract. In the case of a cancelled service contract, the client is billed and revenue is recognized for any third party charges and square miles of data recorded up to the date of cancellation. The Company receives reimbursements for certain out-of-pocket expenses under the terms of the service contracts. The amounts billed to clients are included at their gross amount in the total estimated revenue for the service contract. Clients are billed as permitted by the service contract. Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. If billing occurs prior to the revenue recognition or billing exceeds the revenue recognized, the amount is considered deferred revenue and a contract liability. Conversely, if the revenue recognition exceeds the billing, the excess is considered an unbilled receivable and a contract asset. As services are performed, those deferred revenue amounts are recognized as revenue. In some instances, third-party permitting, surveying, drilling, helicopter, equipment rental and mobilization costs that directly relate to the contract are utilized to fulfill the contract obligations. These fulfillment costs are capitalized in other current assets and amortized based on the total square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated fulfillment costs for the service contract. Estimates for total revenue and total fulfillment cost on any service contract are based on significant qualitative and quantitative judgments. Management considers a variety of factors such as whether various components of the performance obligation will be performed internally or externally, cost of third party services, and facts and circumstances unique to the performance obligation in making these estimates. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Topic 606 related to revenue recognition in which an entity should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted Topic 606 effective January 1, 2018, using the full retrospective method, which required us to adjust our condensed consolidated financial statements from amounts previously reported for each prior reporting period presented. This included the recognition of additional revenue and expense deferred from 2016 into 2017 as we had not yet recorded data, but without a change in income tax as the Company was in a full valuation allowance. In addition, adoption of the standard resulted in an increase in accounts receivable, other current assets and deferred revenue due to the recognition in 2017 and 2018 of deferrals from 2016 and 2017. The Company recognized the cumulative effect of adopting the guidance as an adjustment to our opening balance of retained earnings as of January 1, 2016. The Company elected several ongoing and transitional practical expedients including (i) to ignore the financing component when estimating the transaction price for service contracts completed within one year, (ii) to exclude sales tax collected from the customer when determining the transaction price, (iii) to not restate contracts that begin and end within the same annual reporting period, (iv) to use the transaction price at the completion of the contract to retrospectively apply the new guidance, and (v) to not disclose the remaining performance obligations for the reporting periods presented before the date of initial application. Adjustments to Condensed Consolidated Financial Statements related to Topic 606 are shown in Note 4 - Supplemental Consolidated Financial Statement Information.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances . Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period and early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s condensed consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act passed by the U.S. federal government in December 2017 . The Company adopted ASU 2018-02 in the first quarter of 2018 and recorded an adjustment to Stockholders’ Equity within the Condensed Consolidated Balance Sheets that did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting . The Company adopted this guidance in the first quarter of 2018, and it did not have a material impact on the Company’s condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Qualitative and quantitative disclosures are required and optional practical expedients may be elected. This ASU is effective for the annual period beginning after December 15, 2018, including interim periods within that annual period. Subsequent amendments to the initial guidance have been issued in January 2017, January 2018, and July 2018 within ASU No. 2017-03, ASU No. 2018-01, ASU No. 2018-10, and ASU No. 2018-11 regarding qualitative disclosures, optional practical expedients, codification improvements and an optional transition method to adopt with a cumulative-effect adjustment versus a modified retrospective approach. These updates do not change the core principle of the guidance under ASU No. 2016-02, but rather provide implementation guidance. The Company is nearing completion of the review of its existing leases and plans to implement ASU No. 2016-02 using the cumulative-effect transition method. The Company anticipates recognizing on its balance sheet certain right-of-use assets and lease liabilities, which consist primarily of office and shop space operating leases that are currently off-balance sheet. The Company is still evaluating the impact the adoption of this accounting standard will have on the Company’s results of operations, cash flows and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying, and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s condensed consolidated financial statements. In August 2018, the SEC adopted amendments to simplify certain disclosure requirements, as set forth in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which includes a requirement for entities to present the changes in shareholders’ equity in the interim financial statements in quarterly reports on Form 10-Q. This amendment is effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendment and proximity to the filing date for most filers’ quarterly reports, the SEC has allowed for a filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date. The Company has elected to adopt the SEC’s delayed implementation option and will present the changes in shareholders’ equity on an interim basis in the first quarter of 2019.

SUPPLEMENTAL CONSOLIDATED FIN_2

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2018
ASU 2014-09
Schedule of impacts from adoption of Topic 606	Select line items from the Company’s Condensed Consolidated Balance Sheets which reflect the adoption of the new standard and 5% stock dividend are as follows (in thousands): December 31, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Current assets: Accounts receivable, net $ $ $ Prepaid expenses and other current assets $ $ $ Current liabilities: Deferred revenue $ $ $ Stockholders' equity: Common Stock $ $ $ Additional paid-in capital $ $ $ Retained deficit $ $ $ $ Select line items from the Company’s Condensed Consolidated Statements of Operations and Comprehensive Loss which reflect the adoption of the new standard and the 5% stock dividend are as follows (in thousands except share and per share data): Three Months Ended September 30, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Operating revenues $ $ $ Operating costs: Operating expenses $ $ $ Loss from operations $ $ $ Net loss $ $ $ Basic and diluted loss per share of common stock $ (0.13) $ — $ — $ (0.13) Weighted average equivalent common shares outstanding and outstanding - assuming dilution 21,701,662 1,085,083 22,786,745 Nine Months Ended September 30, 2017 As Previously Reported Topic 606 Adjustments Stock Dividend Adjustments As Adjusted Operating revenues $ $ $ Operating costs: Operating expenses $ $ $ Loss from operations $ $ $ Net loss $ $ $ Basic and diluted loss per share of common stock $ (1.23) $ — $ 0.04 $ (1.19) Weighted average equivalent common shares outstanding and outstanding - assuming dilution 21,681,474 1,084,074 22,765,548 Select line items from the Company’s Condensed Consolidated Statements of Cash Flows which reflect the adoption of the new standard are as follows (in thousands): Nine Months Ended September 30, 2017 As Previously Reported Topic 606 Adjustments As Adjusted Cash flows from operating activities: Net loss $ $ $ Change in current assets and liabilities: Increase in accounts receivable $ $ $ (Increase) decrease in prepaid expenses and other current assets $ $ $ Increase in accounts payable $ $ $ Increase (decrease) in deferred revenue $ $ $ Net cash used in operating activities $ $ — $

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2018
DEBT
Schedule of aggregate principal amount of outstanding notes payable and the interest rates	September 30, 2018 December 31, 2017 Notes payable to commercial banks Aggregate principal amount outstanding $ $ — Interest rates — September 30, 2018 December 31, 2017 Notes payable to finance company for insurance Aggregate principal amount outstanding $ $ — Interest rates —
Schedule of aggregate maturities of notes payable	The aggregate maturities of the notes payable at September 30, 2018 are as follows (in thousands): October 2018 - September 2019 $ October 2019 - September 2020 October 2020 - September 2021 Obligations under notes payable $
Schedule of aggregate maturities of obligations under capital leases	The aggregate maturities of obligations under capital leases at September 30, 2018 are as follows (in thousands): October 2018 - September 2019 $ October 2019 - September 2020 October 2020 - September 2021 Obligations under capital leases $

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2018
NET LOSS PER SHARE
Schedule of computation of basic and diluted loss per share	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (as adjusted) (as adjusted) Net loss $ (5,171) $ (2,922) $ (12,591) $ (27,002) Weighted average common shares outstanding: Basic 22,926,764 22,786,745 22,901,558 22,765,548 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — — — Diluted 22,926,764 22,786,745 22,901,558 22,765,548 Basic loss per share of common stock $ (0.23) $ (0.13) $ (0.55) $ (1.19) Diluted loss per share of common stock $ (0.23) $ (0.13) $ (0.55) $ (1.19)
Schedule of weighted average numbers of stock options, restricted stock units, and non-participating restricted stock awards that have been excluded from the calculation of diluted loss per share attributable to common stock	Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options 310,059 343,210 316,012 364,978 Restricted stock units 651,482 397,830 522,333 308,293 Non-participating restricted stock awards 65,974 74,725 67,417 77,716 Total 1,027,515 815,765 905,762 750,987

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	May 01, 2018	Sep. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Common stock dividend declared, percentage of shares outstanding	5.00%
Common stock dividend declared, ratio	0.05
Number of notes receivable | item		1
Allowance for doubtful accounts | $		$ 250,000	$ 250,000

SUPPLEMENTAL CONSOLIDATED FIN_3

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION
Deferred cost					$ 2,991	$ 3,668
Deferred costs incurred to fulfill contracts with customers	$ 3,157	$ 1,625	$ 3,157	$ 1,625
Total deferred costs amortized	14,757	12,485	29,004	35,773
Deferred revenue	2,779	4,587	2,779	4,587	$ 6,314	$ 5,385
Revenue recognized that was included in deferred revenue balances at beginning of period	$ 634	$ 96	$ 5,945	$ 4,806

SUPPLEMENTAL CONSOLIDATED FIN_4

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION – Impact of Adoption of Topic 606 on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	May 01, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Common stock dividend declared, percentage of shares outstanding	5.00%
Current assets:
Accounts receivable, net		$ 29,800	$ 33,156
Prepaid expenses and other current assets		6,758	7,340
Current liabilities:
Deferred revenue		2,779	6,314	$ 4,587	$ 5,385
Stockholders' equity:
Common Stock		230	229
Additional paid-in capital		152,885	151,881
Retained deficit		$ (22,702)	(10,012)
Stock Dividend Adjustments
Stockholders' equity:
Common Stock			11
Additional paid-in capital			8,046
Retained deficit			(8,057)
ASU 2014-09 | As Previously Reported
Current assets:
Accounts receivable, net			33,138
Prepaid expenses and other current assets			4,677
Current liabilities:
Deferred revenue			3,699
Stockholders' equity:
Common Stock			218
Additional paid-in capital			143,835
Retained deficit			(2,021)
ASU 2014-09 | Adjustments
Current assets:
Accounts receivable, net			18
Prepaid expenses and other current assets			2,663
Current liabilities:
Deferred revenue			2,615
Stockholders' equity:
Retained deficit			$ 66

SUPPLEMENTAL CONSOLIDATED FIN_5

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION – Impact of Adoption of Topic 606 on Condensed Consolidated Statements of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	May 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Common stock dividend declared, percentage of shares outstanding	5.00%
Operating revenues		$ 40,448	$ 45,108	$ 126,486	$ 119,114
Operating costs:
Operating expenses		34,419	36,238	104,393	109,010
Loss from operations		(5,234)	(4,299)	(13,165)	(31,942)
Net loss		$ (5,171)	$ (2,922)	$ (12,591)	$ (27,002)
Basic and diluted loss per share of common stock			$ (0.13)		$ (1.19)
Weighted average equivalent common shares outstanding - assuming dilution		22,926,764	22,786,745	22,901,558	22,765,548
ASU 2014-09 | As Previously Reported
Operating revenues			$ 45,627		$ 118,023
Operating costs:
Operating expenses			36,594		107,639
Loss from operations			(4,136)		(31,662)
Net loss			$ (2,759)		$ (26,722)
Basic and diluted loss per share of common stock			$ (0.13)		$ (1.23)
Weighted average equivalent common shares outstanding - assuming dilution			21,701,662		21,681,474
ASU 2014-09 | Adjustments
Operating revenues			$ (519)		$ 1,091
Operating costs:
Operating expenses			(356)		1,371
Loss from operations			(163)		(280)
Net loss			$ (163)		$ (280)
Stock Dividend Adjustments
Operating costs:
Basic and diluted loss per share of common stock					$ 0.04
Weighted average equivalent common shares outstanding - assuming dilution			1,085,083		1,084,074

SUPPLEMENTAL CONSOLIDATED FIN_6

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION – Impact of Adoption of Topic 606 on Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (12,591)	$ (27,002)
Change in current assets and liabilities:
Increase in accounts receivable	2,491	(9,371)
(Increase) decrease in prepaid expenses and other current assets	883	166
Increase in accounts payable	1,110	2,267
Increase (decrease) in deferred revenue	(3,535)	(799)
Net cash used in operating activities	$ 12,772	(3,309)
ASU 2014-09 | As Previously Reported
Cash flows from operating activities:
Net loss		(26,722)
Change in current assets and liabilities:
Increase in accounts receivable		(9,568)
(Increase) decrease in prepaid expenses and other current assets		(1,135)
Increase in accounts payable		2,197
Increase (decrease) in deferred revenue		489
Net cash used in operating activities		(3,309)
ASU 2014-09 | Adjustments
Cash flows from operating activities:
Net loss		(280)
Change in current assets and liabilities:
Increase in accounts receivable		197
(Increase) decrease in prepaid expenses and other current assets		1,301
Increase in accounts payable		70
Increase (decrease) in deferred revenue		$ (1,288)

DEBT (Details)

DEBT (Details)	9 Months Ended
	Sep. 30, 2018USD ($)instrumentitem
Debt Instruments
Number of letters of credit issued | item	3
Letter Of Credit
Debt Instruments
Funds borrowed under Line of Credit	$ 0
Credit Agreement
Debt Instruments
Borrowing, repaying and re-borrowing capacity	$ 20,000,000
Percentage of maximum borrowing capacity on eligible accounts receivable	80.00%
Percentage of maximum borrowing capacity on eligible core equipment	50.00%
Maximum borrowing capacity on core equipment	$ 12,500,000
Interest rate (as a percent)	4.50%
Minimum tangible net worth	$ 100,000,000
Credit Agreement | Prime rate
Debt Instruments
Variable interest rate basis	prime rate
Credit Agreement | Minimum
Debt Instruments
Ratio of current assets to current liabilities	1.50
Credit Agreement | Minimum | Prime rate
Debt Instruments
Interest rate (as a percent)	2.50%
Credit Agreement | Maximum
Debt Instruments
Debt to tangible net worth ratio	1
Insurance Obligations
Debt Instruments
Letters of credit issued	$ 1,767,000
Workers' Compensation Insurance
Debt Instruments
Letters of credit issued	583,000
Performance Obligations
Debt Instruments
Letters of credit issued	$ 75,000
Notes payable to commercial banks
Debt Instruments
Interest rate (as a percent)	5.00%
Number of outstanding notes payable | instrument	1
Aggregate principal amount outstanding	$ 6,518,000

DEBT - Maturities (Details)

DEBT - Maturities (Details)	Sep. 30, 2018USD ($)instrumentitem
Aggregate maturities of notes payable
October 2018 - September 2019	$ 2,284,000
October 2019 - September 2020	2,173,000
October 2020 - September 2021	2,173,000
Obligations under notes payable	6,630,000
Aggregate maturities of obligations under capital leases
October 2018 - September 2019	2,805,000
October 2019 - September 2020	3,004,000
October 2020 - September 2021	24,000
Obligations under capital leases	$ 5,833,000
Notes payable to finance companies for insurance
Notes payable
Number of outstanding notes payable | item	1
Aggregate principal amount outstanding	$ 112,000
Interest rate (as a percent)	3.80%
Notes payable to commercial banks
Notes payable
Number of outstanding notes payable | instrument	1
Aggregate principal amount outstanding	$ 6,518,000
Interest rate (as a percent)	5.00%
Obligations under capital leases | Minimum
Notes payable
Interest rate (as a percent)	4.65%
Obligations under capital leases | Maximum
Notes payable
Interest rate (as a percent)	4.93%

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
NET LOSS PER SHARE
Net loss	$ (5,171)	$ (2,922)	$ (12,591)	$ (27,002)
Weighted average common shares outstanding:
Basic	22,926,764	22,786,745	22,901,558	22,765,548
Diluted	22,926,764	22,786,745	22,901,558	22,765,548
Basic loss per share of common stock	$ (0.23)	$ (0.13)	$ (0.55)	$ (1.19)
Diluted loss per share of common stock	$ (0.23)	$ (0.13)	$ (0.55)	$ (1.19)

NET LOSS PER SHARE - Anti-Dilut

NET LOSS PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) - shares	May 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Common stock dividend declared, percentage of shares outstanding	5.00%
Weighted Average
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation		1,027,515	815,765	905,762	750,987
Stock options
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation		310,059	343,210	316,012	364,978
Restricted stock units
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation		651,482	397,830	522,333	308,293
Non-participating restricted stock awards
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation		65,974	74,725	67,417	77,716

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
INCOME TAXES
Effective tax rate (as percent)	4.30%	32.70%	3.00%	14.70%