Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 11, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-32472 | ||
Entity Registrant Name | DAWSON GEOPHYSICAL COMPANY | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 74-2095844 | ||
Entity Address, Address Line One | 508 West Wall, Suite 800 | ||
Entity Address, City or Town | Midland | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 79701 | ||
City Area Code | 432 | ||
Local Phone Number | 684-3000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | DWSN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 23,478,072 | ||
Entity Central Index Key | 0000799165 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 31,308,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 40,955 | $ 26,271 |
Restricted cash | 5,000 | 5,000 |
Short-term investments | 583 | 2,350 |
Accounts receivable, net of allowance for doubtful accounts of $250 at December 31, 2020 and 2019 | 7,343 | 24,356 |
Current maturities of notes receivable | 66 | |
Prepaid expenses and other current assets | 4,709 | 7,575 |
Total current assets | 58,590 | 65,618 |
Property and equipment | 271,480 | 284,647 |
Less accumulated depreciation | (232,580) | (231,098) |
Property and equipment, net | 38,900 | 53,549 |
Right-of-use assets | 5,494 | 6,605 |
Notes receivable, net of current maturities | 1,394 | |
Intangibles, net | 393 | 385 |
Long-term deferred tax assets, net | 57 | |
Total assets | 103,377 | 127,608 |
Current liabilities: | ||
Accounts payable | 1,603 | 3,952 |
Accrued liabilities: | ||
Payroll costs and other taxes | 1,045 | 1,963 |
Other | 1,811 | 3,599 |
Deferred revenue | 1,779 | 3,481 |
Current maturities of notes payable and finance leases | 94 | 4,062 |
Current maturities of operating lease liabilities | 1,109 | 1,200 |
Total current liabilities | 7,441 | 18,257 |
Long-term liabilities: | ||
Notes payable and finance leases, net of current maturities | 44 | 96 |
Operating lease liabilities, net of current maturities | 4,899 | 5,940 |
Deferred tax liabilities, net | 19 | |
Other accrued liabilities | 150 | |
Total long-term liabilities | 4,962 | 6,186 |
Operating 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, 23,526,517 and 23,335,855 shares issued, and 23,478,072 and 23,287,410 shares outstanding at December 31, 2020 and 2019, respectively | 235 | 233 |
Additional paid-in capital | 154,866 | 154,235 |
Retained deficit | (62,927) | (49,731) |
Treasury stock, at cost; 48,445 shares | ||
Accumulated other comprehensive loss, net | (1,200) | (1,572) |
Total stockholders' equity | 90,974 | 103,165 |
Total liabilities and stockholders' equity | $ 103,377 | $ 127,608 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 250,000 | $ 250,000 |
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 | 23,526,517 | 23,335,855 |
Common stock, shares outstanding | 23,478,072 | 23,287,410 |
Treasury stock, shares | 48,445 | 48,445 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||
Operating Revenues | $ 86,100 | $ 145,773 |
Operating costs: | ||
Operating expenses | 68,998 | 123,024 |
General and administrative | 13,920 | 17,169 |
Depreciation and amortization | 17,174 | 21,826 |
Total cost and expenses | 100,092 | 162,019 |
Loss from operations | (13,992) | (16,246) |
Other income (expense): | ||
Interest income | 402 | 548 |
Interest expense | (83) | (435) |
Other income (expense), net | 501 | 681 |
Loss before income tax | (13,172) | (15,452) |
Income tax (expense) benefit: | ||
Current | (14) | 216 |
Deferred | (10) | 23 |
Income tax (expense) benefit | (24) | 239 |
Net loss | (13,196) | (15,213) |
Other comprehensive income: | ||
Net unrealized income on foreign exchange rate translation, net | 372 | 392 |
Comprehensive loss | $ (12,824) | $ (14,821) |
Basic loss per share of common stock | $ (0.56) | $ (0.66) |
Diluted loss per share of common stock | $ (0.56) | $ (0.66) |
Weighted average equivalent common shares outstanding | 23,382,433 | 23,179,257 |
Weighted average equivalent common shares outstanding - assuming dilution | 23,382,433 | 23,179,257 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive (Loss) Income | Total |
Balance at beginning of period at Dec. 31, 2018 | $ 230 | $ 153,268 | $ (34,518) | $ (1,964) | $ 117,016 |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 23,018,441 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (15,213) | (15,213) | |||
Unrealized income on foreign exchange rate translation | 504 | ||||
Income tax expense | (112) | ||||
Other comprehensive income | 392 | 392 | |||
Issuance of common stock under stock compensation plans | $ 2 | (2) | |||
Issuance of common stock under stock compensation plans (in shares) | 263,459 | ||||
Stock-based compensation expense | 909 | 909 | |||
Issuance of common stock as compensation | $ 1 | 296 | 297 | ||
Issuance of common stock as compensation (in shares) | 119,556 | ||||
Shares exchanged for taxes on stock-based compensation | (236) | (236) | |||
Shares exchanged for taxes on stock-based compensation (in shares) | (65,601) | ||||
Balance at end of period at Dec. 31, 2019 | $ 233 | 154,235 | (49,731) | (1,572) | $ 103,165 |
Balance at end of period (in shares) at Dec. 31, 2019 | 23,335,855 | 23,287,410 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (13,196) | $ (13,196) | |||
Unrealized income on foreign exchange rate translation | 438 | ||||
Income tax expense | (66) | ||||
Other comprehensive income | 372 | 372 | |||
Issuance of common stock under stock compensation plans | $ 3 | (3) | |||
Issuance of common stock under stock compensation plans (in shares) | 236,100 | ||||
Stock-based compensation expense | 703 | 703 | |||
Shares exchanged for taxes on stock-based compensation | $ (1) | (69) | (70) | ||
Shares exchanged for taxes on stock-based compensation (in shares) | (45,438) | ||||
Balance at end of period at Dec. 31, 2020 | $ 235 | $ 154,866 | $ (62,927) | $ (1,200) | $ 90,974 |
Balance at end of period (in shares) at Dec. 31, 2020 | 23,526,517 | 23,478,072 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (13,196) | $ (15,213) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 17,174 | 21,826 |
Operating lease cost | 1,186 | 1,201 |
Non-cash compensation | 703 | 1,206 |
Deferred income tax expense (benefit) | 10 | (23) |
Bad debt expense | 1,625 | |
Change in other accrued long-term liabilities | (150) | |
Gain on disposal of assets | (240) | (86) |
Remeasurement and other | 266 | (139) |
Change in operating assets and liabilities: | ||
Decrease in accounts receivable | 16,866 | 1,118 |
Decrease in prepaid expenses and other assets | 3,301 | 6,983 |
Decrease in accounts payable | (2,276) | (579) |
(Decrease) increase in accrued liabilities | (2,722) | 1,356 |
Decrease in operating lease liabilities | (1,204) | (1,150) |
Decrease in deferred revenue | (1,702) | (7,020) |
Net cash provided by operating activities | 19,641 | 9,480 |
Cash flows from investing activities: | ||
Capital expenditures, net of non-cash capital expenditures summarized below | (2,847) | (4,396) |
Proceeds from maturity of short-term investments | 2,350 | 33,075 |
Acquisition of short-term investments | (583) | (24,842) |
Proceeds from disposal of assets | 542 | 297 |
Proceeds from notes receivable | 26 | 51 |
Net cash (used in) provided by investing activities | (512) | 4,185 |
Cash flows from financing activities: | ||
Proceeds from notes payable | 6,374 | |
Principal payments on notes payable | (8,512) | (8,165) |
Principal payments on finance leases | (2,326) | (2,855) |
Tax withholdings related to stock-based compensation awards | (70) | (236) |
Net cash used in financing activities | (4,534) | (11,256) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 89 | 133 |
Net increase in cash and cash equivalents and restricted cash | 14,684 | 2,542 |
Cash and cash equivalents and restricted cash at beginning of period | 31,271 | 28,729 |
Cash and cash equivalents and restricted cash at end of period | 45,955 | 31,271 |
Supplemental cash flow information: | ||
Cash paid for interest | 92 | 440 |
Cash paid for income taxes | 87 | 40 |
Cash received for income taxes | 402 | 55 |
Non-cash operating, investing and financing activities: | ||
Decrease in accrued purchases of property and equipment | (61) | (927) |
Finance leases incurred | 121 | |
Increase in right-of-use assets and operating lease liabilities | 64 | 8,252 |
Decrease in right-of-use assets for accrued rent | (497) | |
Increase in right-of-use assets for prepaid rent | 3 | 14 |
Financed insurance premiums | $ 434 | $ 2,256 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Organization and Nature of Operations The Company is a leading provider of onshore seismic data acquisition and processing services. Founded in 1952, the Company acquires and processes 2-D, 3-D and multi-component seismic data 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. The Company operates in the lower 48 states of the U.S. and in Canada. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Dawson Seismic Services Holdings, Inc., Eagle Canada, Inc., Eagle Canada Seismic Services ULC and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. Cash Equivalents For purposes of the financial statements, the Company considers demand deposits, certificates of deposit, overnight investments, money market funds and all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. Allowance for Doubtful Accounts In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requiring entities to measure expected credit losses for certain financial assets using a new, forward-looking current expected credit loss model, CECL, which will result in the earlier recognition of allowances for losses. CECL is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. This ASU requires a modified retrospective approach with a cumulative-effect adjustment to retained earnings for additional loss allowances, if any, as of the beginning of the first reporting period of adoption. Additional ASU’s were issued subsequently that provided additional guidance. On January 1, 2020, the Company adopted Topic 326 and had no cumulative-effect adjustment needed to its retained earnings as the Company’s loss allowance was deemed sufficient. The Company’s financial instruments within the scope of this guidance primarily includes trade receivables and a note receivable. The Company has made an accounting policy election to write off accrued interest amounts by reversing interest income. Late in the fourth quarter of 2020, the Company wrote off a note receivable from the purchaser of certain dynamite energy source drilling equipment. Accrued interest of $31,000 on this note receivable was reversed out of interest income. The Company’s allowance for doubtful accounts reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument and is determined based on a number of factors. Management determines the need for any allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs, its current client base, when customer accounts exceed 90 days past due and specific customer account reviews. 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 December 31, 2020 and 2019. 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. No impairment charges were recognized for the years ended December 31, 2020 and 2019. Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Houston, Denver, Oklahoma City and Calgary, Alberta. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair market value of the related assets. Assets under finance leases are amortized using the straight-line method over the initial lease term. Amortization of assets under finance leases is included in depreciation expense. For operating leases, where readily determinable, the Company uses the implicit interest rate in determining the present value of future minimum lease payments. In the absence of an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company gives consideration to its outstanding debt, as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. The ROU assets are amortized to operating lease cost over the lease terms on a straight-line basis. The Company does not recognize leases with an initial term of 12 months or less and does not separate lease and non-lease components. Several of the Company’s leases include options to renew, with renewal terms that can extend from one Intangibles The Company has intangible assets consisting primarily of trademarks/tradenames (which are not amortized) resulting from a business combination. The Company tests for impairment on an annual basis during the fourth quarter, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. No impairment charges were recognized for the years ended December 31, 2020 and 2019. 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 generally 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. Additionally, the Company’s policy includes (i) ignoring the financing component when estimating the transaction price for service contracts completed within one year, (ii) excluding sales tax collected from the customer when determining the transaction price, and (iii) expensing incremental costs to obtain a customer contract if the amortization period for those costs would otherwise be one year or less. 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, net of actual forfeitures, as operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The functional currency of the Company’s foreign subsidiaries is generally the local currency. Any transactions denominated in a currency other than the functional currency are remeasured with the resulting unrealized gain or loss recognized in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). All assets and liabilities in the functional currency are then translated into U.S. Dollars at the exchange rate on the balance sheet date. Income and expenses are translated using the exchange rate applicable to each transaction. Equity transactions are translated using historical exchange rates. Adjustments resulting from translation are recorded as a separate component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Realized foreign currency transaction gains (losses) are included in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). Income Taxes The Company accounts for income taxes by recognizing amounts of taxes payable or refundable for the current year, and by using an asset and liability approach in recognizing the amount of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Management determines deferred taxes by identifying the types and amounts of existing temporary differences, measuring the total deferred tax asset or liability using the applicable tax rate in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates of deferred tax assets and liabilities is recognized in income in the year of an enacted rate change. The deferred tax asset is reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management’s methodology for recording income taxes requires judgment regarding assumptions and the use of estimates, including determining the annual effective tax rate and the valuation of deferred tax assets, which can create variances between actual results and estimates and could have a material impact on the Company’s provision or benefit for income taxes. Due to recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the Consolidated Statements of Operations and Comprehensive Loss. The Company’s effective tax rates differ from the statutory federal rate of 21% for certain items such as state and local taxes, valuation allowances, non-deductible expenses and discrete items. 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. Reclassifications Certain reclassifications have been made to the 2019 consolidated financial statements or associated disclosures to conform to the 2020 presentation.These reclassifications had no impact on the consolidated financial statements. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Short-Term Investments | |
Short-Term Investments | 2. Short-Term Investments The Company had short-term investments at December 31, 2020 and 2019 consisting of certificates of deposit with original maturities greater than three months but less than a year. Certificates of deposits with any given banking institution did not exceed the FDIC insurance limit at December 31, 2020 or 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments At December 31, 2020 and 2019, the Company’s financial instruments included cash and cash equivalents, short-term investments in certificates of deposit, restricted cash, accounts receivable, other current assets, accounts payable, other current liabilities, notes payable, finance leases and operating leases. At December 31, 2019, the Company’s financial instruments also included notes receivable. Due to the short-term maturities of cash and cash equivalents, restricted cash, 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, notes payable, finance leases and operating leases approximate their fair value based on a comparison with the prevailing market interest rates. 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, finance leases, operating leases and investments in certificates of deposit are level 2 measurements in the fair value hierarchy. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment | |
Property and Equipment | 4. Property and Equipment Property and equipment (in thousands), together with the related estimated useful lives at December 31, 2020 and 2019, were as follows: December 31, 2020 2019 Useful Lives Land, building and other $ 16,070 $ 16,612 3 to 40 years Recording equipment 158,619 163,564 5 to 10 years Vibrator energy sources 73,852 78,626 5 to 15 years Vehicles 22,939 25,845 1.5 to 10 years 271,480 284,647 Less accumulated depreciation (232,580) (231,098) Property and equipment, net $ 38,900 $ 53,549 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Statement Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Consolidated Financial Statement Information | |
Supplemental Consolidated Financial Statement Information | 5. Supplemental Consolidated Financial Statement Information The activity in the allowance for doubtful accounts (in thousands) for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Beginning balance $ (250) $ (250) Additional provisions to allowance (1,625) — Write-offs against allowance - A/R 191 — Write-offs against allowance - N/R 1,434 — Recoveries collected — — Ending balance $ (250) $ (250) Other current liabilities (in thousands) consist of the following at December 31, 2020 and 2019: December 31, 2020 2019 Accrued self-insurance reserves $ 851 $ 2,771 Other accrued expenses and current liabilities 960 828 Other current liabilities $ 1,811 $ 3,599 Disaggregated Revenues The Company has one line of business, acquiring and processing seismic data in North America. Our chief operating decision maker (President, CEO, and Chairman of the Board) makes operating decisions and assesses performance based on the Company as a whole. Accordingly, the Company is considered to be in a single reportable segment. The following table presents the Company’s operating revenues (unaudited and in thousands) disaggregated by geographic region: Year Ended December 31, 2020 2019 Operating revenues United States $ 73,983 $ 129,452 Canada 12,117 16,321 Total $ 86,100 $ 145,773 Deferred Costs (in thousands) Deferred costs were $2,525 and $6,994 at January 1, 2020 and 2019, respectively. The Company’s prepaid expenses and other current assets at December 31, 2020 and 2019 included deferred costs incurred to fulfill contracts with customers of $1,847 and $2,525, respectively. Deferred costs at December 31, 2020 compared to January 1, 2020 and at December 31, 2019 compared to January 1, 2019 decreased primarily as a result of the completion of several projects for clients with significant deferred fulfillment costs at the beginning of each of the years. The amount of total deferred costs amortized for the years ended December 31, 2020 and 2019 was $16,130 and $38,468, respectively. There were no material impairment losses incurred during these periods. Deferred Revenue (in thousands) Deferred revenue was $3,481 and $10,501 at January 1, 2020 and 2019, respectively. The Company’s deferred revenue at December 31, 2020 and 2019 was $1,779 and $3,481, respectively. Deferred revenue at December 31, 2020 compared to January 1, 2020 and at December 31, 2019 compared to January 1, 2019 decreased primarily as a result of completing multiple large projects for clients throughout each of the years. Revenue recognized for the year ended December 31, 2020 that was included in the contract liability balance at the beginning of 2020 was $3,476. Revenue recognized for the year ended December 31, 2019 that was included in the contract liability balance at the beginning of 2019 was $10,501. Deferred revenue not recognized during 2020 relates to a project that has not yet started. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Debt | 6 . Debt Dominion Loan Agreement On September 30, 2019, the Company entered into a Loan and Security Agreement with Dominion Bank. On September 30, 2020, the Company entered into a Loan Modification Agreement to the Loan and Security Agreement (as amended by the Loan Modification Agreement, the “Loan Agreement”) for the purpose of amending and extending the maturity of our line of credit with Dominion Bank by one year. The Loan Agreement provides for a Revolving Credit Facility in an amount up to the lesser of (i) $15,000,000 or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable plus 100% of the amount on deposit with Dominion Bank in the Company’s collateral account, consisting of a restricted CDARS account of $5,000,000. As of December 31, 2020, the Company has not borrowed any amounts under the Revolving Credit Facility. Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 6.00% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 3.50%. The Company will pay a commitment fee of 0.10% per annum on the difference of (a) $15,000,000 minus the Deposit minus (b) the daily average usage of the Revolving Credit Facility. The Loan Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets. The Company is also obligated to meet certain financial covenants under the Loan Agreement, including maintaining a tangible net worth of $75,000,000 and specified ratios with respect to current assets and liabilities and debt to tangible net worth. The Company’s obligations under the Loan Agreement are secured by a security interest in the collateral account (including the Deposit) with Dominion Bank and future accounts receivable and related collateral. The maturity date of the Loan Agreement is September 30, 2021. The Company does not currently have any notes payable under the Revolving Credit Facility. Dominion Letters of Credit As of December 31, 2020, Dominion Bank has issued one letter of credit in the amount of $583,000 to support the Company’s workers compensation insurance. The letter of credit is secured by a certificate of deposit with Dominion Bank. Other Indebtedness As of December 31, 2020, the Company has one note payable to a finance company for various insurance premiums totaling $40,000. In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Consolidated Balance Sheets as of December 31, 2020 and 2019 include finance leases of $98,000 and $2,412,000, respectively. Maturities of Debt The Company’s aggregate principal amount (in thousands) of outstanding notes payable and the interest rates and monthly payments as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Notes payable to finance company for insurance Aggregate principal amount outstanding $ 40 $ 1,746 Interest rate 4.99% 4.05% - 4.99% The Company’s aggregate maturities of finance leases (in thousands) at December 31, 2020 are as follows: January 2021 - December 2021 $ 54 January 2022 - December 2022 36 January 2023 - December 2023 8 Obligations under finance leases $ 98 Interest rates on these leases ranged from 4.83% to 5.37%. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 7. Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Houston, Denver, Oklahoma City and Calgary, Alberta. The components of lease cost (in thousands) for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 2019 Finance lease cost Amortization of right-of-use assets $ 1,357 $ 1,424 Interest on lease liabilities 46 177 Total finance lease cost 1,403 1,601 Operating lease cost 1,511 1,586 Short-term lease cost — — Total lease cost $ 2,914 $ 3,187 Supplemental cash flow information related to leases (in thousands) for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (1,534) $ (1,505) Operating cash flows from finance leases $ (51) $ (184) Financing cash flows from finance leases $ (2,326) $ (2,855) Right-of-use assets obtained in exchange for lease obligations Operating leases $ 64 $ 8,252 Finance leases $ — $ 121 Supplemental balance sheet information related to leases (in thousands) as of December 31, 2020 and 2019 was as follows: December 31, 2020 2019 Operating leases Operating lease right-of-use assets $ 5,494 $ 6,605 Operating lease liabilities - current $ 1,109 $ 1,200 Operating lease liabilities - long-term 4,899 5,940 Total operating lease liabilities $ 6,008 $ 7,140 Finance leases Property and equipment, at cost $ 8,663 $ 8,663 Accumulated depreciation (4,624) (3,297) Property and equipment, net $ 4,039 $ 5,366 Finance lease liabilities - current $ 54 $ 2,316 Finance lease liabilities - long-term 44 96 Total finance lease liabilities $ 98 $ 2,412 Weighted average remaining lease term Operating leases 5.6 years 6.3 years Finance leases 1.6 years 0.8 years Weighted average discount rate Operating leases 5.04% 5.04% Finance leases 5.00% 4.67% Maturities of lease liabilities (in thousands) at December 31, 2020 are as follows: Operating Leases Finance Leases January 2021 - December 2021 $ 1,386 $ 57 January 2022 - December 2022 1,184 38 January 2023 - December 2023 1,172 8 January 2024 - December 2024 1,178 — January 2025 - December 2025 879 — Thereafter 1,122 — Total payments under lease agreements 6,921 103 Less imputed interest (913) (5) Total lease liabilities $ 6,008 $ 98 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation Since the date of its effectiveness on May 5, 2016, the Company issues new grants of stock-based awards pursuant to the Dawson Geophysical Company 2016 Stock and Performance Incentive Plan (the “2016 Plan”). All of the Company’s prior plans have expired pursuant to their terms and no awards previously granted under prior plans remain outstanding. The awards outstanding and available under the 2016 Plan, as restated in 2020, and their associated accounting treatment are discussed below. In 2016, the Company adopted the 2016 Plan, which provides for the issuance of up to 1,000,000 shares of authorized Company common stock, which authorized amount was increased to 1,050,000 as a result of the 5% stock dividend approved by the Board on May 1, 2018. At the annual shareholders’ meeting on June 9, 2020, the Company’s shareholders approved a restated version of the 2016 Plan (the “Restated 2016 Plan”), which authorized an additional 1,000,000 shares. The total aggregate numbers of shares of Common Stock reserved under the Restated 2016 Plan is 2,050,000 shares. As of December 31, 2020, there were approximately 1,376,299 shares available for future issuance. The Restated 2016 Plan provides for the issuance of stock-based compensation awards, including stock options, common stock, restricted stock, restricted stock units and other forms. Stock option grant prices awarded under the Restated 2016 Plan may not be less than the fair market value of the common stock subject to such option on the grant date, and the term of stock options shall extend no more than ten years after the grant date. The Restated 2016 Plan terminates June 9, 2030. The Company’s employees and officers that hold unvested restricted stock awarded during 2016 or thereafter are not entitled to dividends when the Company pays dividends. Impact of Stock-Based Compensation The following table summarizes stock-based compensation expense (in thousands), which is included in operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Restricted stock awards $ — $ 15 Restricted stock unit awards 703 893 Common stock awards — 297 Total compensation expense $ 703 $ 1,205 Stock Options There was no stock option activity during the years ended December 31, 2020 and 2019. There were no outstanding stock options as of December 31, 2020 or 2019. Restricted Stock Awards There were no restricted stock grants in the years ended December 31, 2020 and 2019. The fair value of restricted stock awards equals the market price of the Company’s stock on the grant date and the awards generally vest in one The aggregate vesting date fair value of restricted stock for the years ended December 31, 2020 and 2019 was $0 and $255,000, respectively. Restricted Stock Unit Awards The Company did not grant any restricted stock units awards for the years ended December 31, 2020 or 2019. The fair value of restricted stock unit awards equals the market price of the Company’s stock on the grant date and the awards generally vest in one A summary of the Company’s nonvested restricted stock unit awards as of December 31, 2020 and activity during the year then ended is as follows: Number of Restricted Stock Unit Awards Weighted Average Grant Date Fair Value Nonvested as of December 31, 2019 410,100 $ 5.55 Granted — $ — Vested (236,100) $ 4.41 Forfeited — $ — Nonvested as of December 31, 2020 174,000 $ 7.10 As of December 31, 2020, there were approximately $168,000 of unrecognized compensation costs related to nonvested restricted stock unit awards. These costs are expected to be recognized over a weighted average period of 0.41 years. The aggregate vesting date fair value of restricted stock units for the years ended December 31, 2020 and 2019 was $360,000 and $710,000, respectively. Common Stock Awards The Company granted common stock awards with immediate vesting to outside directors and employees during the years ended December 31, 2020 and 2019 as follows: Number of Common Stock Awards Weighted Average Grant Date Fair Value Year ended December 31, 2020 — $ — Year ended December 31, 2019 119,556 $ 2.48 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Dividends | |
Dividends | 9. Dividends The Company did not issue any stock dividends during calendar years 2020 or 2019. The Company has not paid cash dividends during calendar years 2020 and 2019. While there are currently no restrictions prohibiting the Company from paying cash dividends, the Board of Directors, after consideration of economic and market conditions affecting the energy industry in general, and the oilfield services business in particular, determined that the Company would not pay a cash dividend in respect of the Company’s common stock for the foreseeable future. Payment of any type of dividend in the future will be at the discretion of the Company’s board and will depend on the Company’s financial condition, results of operations, capital and legal requirements, and other factors deemed relevant by the board. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Employee Benefit Plans | |
Employee Benefit Plans | 10. Employee Benefit Plans The Company provides a 401(k) plan as part of its employee benefits package in order to retain quality personnel. The Company elected to match 100% of the employee contributions up to a maximum of 6% of the participant’s applicable compensation under its 401(k) plan for the years ended December 31, 2020 and 2019. The Company’s matching contributions under its 401(k) plan for the years ended December 31, 2020 and 2019 were approximately $947,000 and $1,340,000, respectively. |
Advertising Costs
Advertising Costs | 12 Months Ended |
Dec. 31, 2020 | |
Advertising Costs | |
Advertising Costs | 11. Advertising Costs Advertising costs are charged to expense as incurred. Advertising costs for the years ended December 31, 2020 and 2019 totaled $130,000 and $351,000, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes | 12. Income Taxes The Company’s components of loss before income tax (in thousands) were as follows: Year Ended December 31, 2020 2019 Domestic $ (15,116) $ (14,097) Foreign 1,944 (1,355) Loss before income tax $ (13,172) $ (15,452) The Company’s components of income tax (expense) benefit (in thousands) were as follows: Year Ended December 31, 2020 2019 Current federal benefit $ 117 $ 285 Current state expense (131) (69) Deferred federal expense (268) (251) Deferred state benefit 258 127 Deferred foreign benefit — 147 Income tax (expense) benefit $ (24) $ 239 The income tax provision (in thousands) differs from the amount computed by applying the statutory federal income tax rate to loss before income tax as follows: Year Ended December 31, 2020 2019 Tax benefit computed at statutory rate of 21% $ 2,766 $ 3,245 Change in valuation allowance (2,152) (5,744) State income tax benefit, net of federal tax 100 46 Foreign (income) loss (536) 2,827 Other (202) (135) Income tax (expense) benefit $ (24) $ 239 The Coronavirus Aid, Relief, and Economic Security Act (“The CARES Act”) was enacted on March 27, 2020 resulting in tax law changes that impacted the Company by accelerating the AMT credit owed to the Company and allowed for a temporary change in NOL taxable income limitations. For tax years beginning January 1, 2018 and those prior to 2021, an NOL deduction equal to 100% of taxable income is allowed. Tax years 2021 and forward will revert back to the 80% limitation established by the 2017 Tax Cuts and Jobs Act. The Consolidated Appropriations Act, 2021 (“The ACT”) was enacted by Congress on December 27, 2020. The Company is evaluating the effect of The ACT and does not anticipate a material impact to its consolidated financial statements. The principal components of the Company’s net deferred tax assets (liabilities) (in thousands) were as follows: December 31, 2020 2019 Deferred tax assets: Federal tax net operating loss ("NOL") carryforward $ 26,754 $ 25,921 Foreign tax NOL carryforward 6,244 6,418 State tax NOL carryforward 1,509 1,692 Other comprehensive income 273 379 Restricted stock and restricted stock unit awards 230 316 Foreign deferred taxes 207 242 Right-of-use assets 124 193 Canadian start-up costs 104 122 Self-insurance 62 106 Workers’ compensation 44 96 Deferred revenue — 351 Alternative Minimum Tax ("AMT") credit carryforward — 79 Other 51 90 Gross deferred tax assets 35,602 36,005 Less valuation allowances (30,396) (28,299) Net deferred tax assets 5,206 7,706 Deferred tax liabilities: Property and equipment (5,225) (7,649) Net deferred tax (liabilities) assets $ (19) $ 57 Domestic deferred tax (liabilities) assets $ (19) $ 57 Foreign deferred tax liabilities — — Net deferred tax (liabilities) assets $ (19) $ 57 At December 31, 2020, the Company had a gross NOL for U.S. federal income tax purposes of approximately $127,399,000. This NOL will begin to expire in 2027. Losses incurred after the year ended December 31, 2017 have no expiration. The Company will carry forward the tax benefits related to federal net NOL of approximately $26,754,000. The Company also had state net NOLs that will affect state taxes of approximately $1,509,000 at December 31, 2020. State NOLs began to expire in 2015. The Company also had a Canadian gross NOL of $24,016,000 that will begin to expire in 2037. In evaluating the possible sources of taxable income during 2020, the Company determined it is more likely than not that the remaining deferred tax assets will not be realizable. As a result, the Company recorded full valuation allowance against foreign deferred tax assets and its federal and state deferred tax assets with the exception of its trademark intangible. As one of the Company’s Canadian subsidiaries reported taxable income for 2020 and 2019, the Company will continue to monitor the need for valuation allowance release on that subsidiary’s NOL in upcoming periods. At December 31, 2020 and 2019, the Company did not have any uncertain tax positions. The Company’s policy is to recognize interest and penalties related to an uncertain tax position in income tax expense. |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss per Share | |
Net Loss per Share | 13. 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 (in thousands, except share and per share data) was as follows: Year Ended December 31, 2020 2019 Net loss $ (13,196) $ (15,213) Weighted average common shares outstanding Basic 23,382,433 23,179,257 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — Diluted 23,382,433 23,179,257 Basic loss per share of common stock $ (0.56) $ (0.66) Diluted loss per share of common stock $ (0.56) $ (0.66) The Company had a net loss in the years ended December 31, 2020 and 2019. 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 have been excluded from the calculation of diluted loss per share of common stock, as their effect would be anti-dilutive for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Stock options — 50,580 Restricted stock units 292,933 456,817 Restricted stock awards — 8,133 Total 292,933 515,530 |
Major Clients
Major Clients | 12 Months Ended |
Dec. 31, 2020 | |
Major Clients | |
Major Clients | 14. Major Clients The Company operates in only one business segment, contract seismic data acquisition and processing services. Sales to these clients, as a percentage of operating revenues that exceeded 10%, were as follows: Year Ended December 31, 2020 2019 A 35% 11% B 24% — C 10% — D — 18% E — 16% F — 15% |
Areas of Operation
Areas of Operation | 12 Months Ended |
Dec. 31, 2020 | |
Areas of Operation | |
Areas of Operation | 15. Areas of Operation The U.S. and Canada are the only countries of operation for the Company. The following tables present the Company’s operating revenues, net property and equipment, and right-of-use assets (unaudited and in thousands) by area of operation: Year Ended December 31, 2020 2019 Operating Revenues United States $ 73,983 $ 129,452 Canada 12,117 16,321 Total $ 86,100 $ 145,773 Year Ended December 31, 2020 2019 Net Propety and Equipment United States $ 33,162 $ 45,653 Canada 5,738 7,896 Total $ 38,900 $ 53,549 Year Ended December 31, 2020 2019 Right-of-use Assets United States $ 4,900 $ 5,893 Canada 594 712 Total $ 5,494 $ 6,605 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 16. 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. We are also party to the following legal proceeding: On April 1, 2019, Weatherford International, LLC and Weatherford U.S., L.P. (collectively, “Weatherford”) filed a petition in state district court for Midland County, Texas, in which the Company and eighteen other parties were named as defendants, alleging the Company and/or the other named defendants contributed to or caused contamination of groundwater at and around property owned by Weatherford. Weatherford is seeking declaratory judgment, recovery and contribution for past and future costs incurred in responding to or correcting the contamination at and around the property from each defendant. The Company disputes Weatherford’s allegations with respect to the Company and intends to vigorously defend itself in this case. Subsequent to the filing of the petition, Weatherford filed for bankruptcy protection on July 1, 2019. While the outcome and impact of this legal proceeding on the Company cannot be predicted with certainty, based on currently available information, management believes that the resolution of this proceeding will not have a material adverse effect on our financial condition, results of operations or liquidity. Additionally, 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. As of December 31, 2020, Dominion Bank has issued one letter of credit under the Dominion Loan Agreement. The 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 with Dominion Bank. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Recently Issued Accounting Pronouncements | |
Recently Issued Accounting Pronouncements | 17. Recently Issued Accounting Pronouncements In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which clarifies the Codification or corrects unintended application of guidance by improving the consistency of the Codification for disclosure on multiple topics. They are not expected to change current practice. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period and should be applied on a retrospective basis for all periods presented. Early adoption is permitted. The Company is currently implementing the new guidance and it will not have a material impact on its 2021 consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. Early adoption is permitted. An entity that elects to early adopt in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. 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 adopted this guidance in the first quarter of 2020 and it did not have a material impact on its consolidated financial statements. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Concentrations of Credit Risk | |
Concentrations of Credit Risk | 18. Concentrations of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk at any given time may consist of cash and cash equivalents, restricted cash, money market funds and overnight investment accounts, short-term investments in certificates of deposit, trade and other receivables and other current assets. At December 31, 2020 and 2019, the Company had deposits with domestic and international banks in excess of federally insured limits. Management believes the credit risk associated with these deposits is minimal. Money market funds seek to preserve the value of the investment, but it is possible to lose money investing in these funds. The Company’s sales are to clients whose activities relate to oil and natural gas exploration and production. The Company generally extends unsecured credit to these clients; therefore, collection of receivables may be affected by the economy surrounding the oil and natural gas industry or other economic conditions. The Company closely monitors extensions of credit and may negotiate payment terms that mitigate risk. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Dawson Seismic Services Holdings, Inc., Eagle Canada, Inc., Eagle Canada Seismic Services ULC and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. |
Cash Equivalents | Cash Equivalents For purposes of the financial statements, the Company considers demand deposits, certificates of deposit, overnight investments, money market funds and all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, requiring entities to measure expected credit losses for certain financial assets using a new, forward-looking current expected credit loss model, CECL, which will result in the earlier recognition of allowances for losses. CECL is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. This ASU requires a modified retrospective approach with a cumulative-effect adjustment to retained earnings for additional loss allowances, if any, as of the beginning of the first reporting period of adoption. Additional ASU’s were issued subsequently that provided additional guidance. On January 1, 2020, the Company adopted Topic 326 and had no cumulative-effect adjustment needed to its retained earnings as the Company’s loss allowance was deemed sufficient. The Company’s financial instruments within the scope of this guidance primarily includes trade receivables and a note receivable. The Company has made an accounting policy election to write off accrued interest amounts by reversing interest income. Late in the fourth quarter of 2020, the Company wrote off a note receivable from the purchaser of certain dynamite energy source drilling equipment. Accrued interest of $31,000 on this note receivable was reversed out of interest income. The Company’s allowance for doubtful accounts reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument and is determined based on a number of factors. Management determines the need for any allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs, its current client base, when customer accounts exceed 90 days past due and specific customer account reviews. 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 December 31, 2020 and 2019. |
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. No impairment charges were recognized for the years ended December 31, 2020 and 2019. |
Leases | Leases The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Houston, Denver, Oklahoma City and Calgary, Alberta. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair market value of the related assets. Assets under finance leases are amortized using the straight-line method over the initial lease term. Amortization of assets under finance leases is included in depreciation expense. For operating leases, where readily determinable, the Company uses the implicit interest rate in determining the present value of future minimum lease payments. In the absence of an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. The Company gives consideration to its outstanding debt, as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates. The ROU assets are amortized to operating lease cost over the lease terms on a straight-line basis. The Company does not recognize leases with an initial term of 12 months or less and does not separate lease and non-lease components. Several of the Company’s leases include options to renew, with renewal terms that can extend from one |
Intangibles | Intangibles The Company has intangible assets consisting primarily of trademarks/tradenames (which are not amortized) resulting from a business combination. The Company tests for impairment on an annual basis during the fourth quarter, and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. No impairment charges were recognized for the years ended December 31, 2020 and 2019. |
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 generally 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. Additionally, the Company’s policy includes (i) ignoring the financing component when estimating the transaction price for service contracts completed within one year, (ii) excluding sales tax collected from the customer when determining the transaction price, and (iii) expensing incremental costs to obtain a customer contract if the amortization period for those costs would otherwise be one year or less. |
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, net of actual forfeitures, as operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards. |
Foreign Currency Translation | Foreign Currency Translation The U.S. Dollar is the reporting currency for all periods presented. The functional currency of the Company’s foreign subsidiaries is generally the local currency. Any transactions denominated in a currency other than the functional currency are remeasured with the resulting unrealized gain or loss recognized in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). All assets and liabilities in the functional currency are then translated into U.S. Dollars at the exchange rate on the balance sheet date. Income and expenses are translated using the exchange rate applicable to each transaction. Equity transactions are translated using historical exchange rates. Adjustments resulting from translation are recorded as a separate component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. Realized foreign currency transaction gains (losses) are included in the Consolidated Statements of Operations and Comprehensive Loss as other income (expense). |
Income Taxes | Income Taxes The Company accounts for income taxes by recognizing amounts of taxes payable or refundable for the current year, and by using an asset and liability approach in recognizing the amount of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Management determines deferred taxes by identifying the types and amounts of existing temporary differences, measuring the total deferred tax asset or liability using the applicable tax rate in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates of deferred tax assets and liabilities is recognized in income in the year of an enacted rate change. The deferred tax asset is reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management’s methodology for recording income taxes requires judgment regarding assumptions and the use of estimates, including determining the annual effective tax rate and the valuation of deferred tax assets, which can create variances between actual results and estimates and could have a material impact on the Company’s provision or benefit for income taxes. Due to recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the Consolidated Statements of Operations and Comprehensive Loss. The Company’s effective tax rates differ from the statutory federal rate of 21% for certain items such as state and local taxes, valuation allowances, non-deductible expenses and discrete items. |
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. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2019 consolidated financial statements or associated disclosures to conform to the 2020 presentation.These reclassifications had no impact on the consolidated financial statements. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment | |
Schedule of property and equipment | Property and equipment (in thousands), together with the related estimated useful lives at December 31, 2020 and 2019, were as follows: December 31, 2020 2019 Useful Lives Land, building and other $ 16,070 $ 16,612 3 to 40 years Recording equipment 158,619 163,564 5 to 10 years Vibrator energy sources 73,852 78,626 5 to 15 years Vehicles 22,939 25,845 1.5 to 10 years 271,480 284,647 Less accumulated depreciation (232,580) (231,098) Property and equipment, net $ 38,900 $ 53,549 |
Supplemental Consolidated Balan
Supplemental Consolidated Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Consolidated Financial Statement Information | |
Schedule of allowance for doubtful accounts | The activity in the allowance for doubtful accounts (in thousands) for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Beginning balance $ (250) $ (250) Additional provisions to allowance (1,625) — Write-offs against allowance - A/R 191 — Write-offs against allowance - N/R 1,434 — Recoveries collected — — Ending balance $ (250) $ (250) |
Schedule of other current liabilities | Other current liabilities (in thousands) consist of the following at December 31, 2020 and 2019: December 31, 2020 2019 Accrued self-insurance reserves $ 851 $ 2,771 Other accrued expenses and current liabilities 960 828 Other current liabilities $ 1,811 $ 3,599 |
Schedule of operating revenues disaggregated by geographic region | Year Ended December 31, 2020 2019 Operating revenues United States $ 73,983 $ 129,452 Canada 12,117 16,321 Total $ 86,100 $ 145,773 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Schedule of aggregate principal amount of outstanding notes payable and the interest rates | The Company’s aggregate principal amount (in thousands) of outstanding notes payable and the interest rates and monthly payments as of December 31, 2020 and 2019 are as follows: December 31, 2020 December 31, 2019 Notes payable to finance company for insurance Aggregate principal amount outstanding $ 40 $ 1,746 Interest rate 4.99% 4.05% - 4.99% |
Schedule of aggregate maturities of finance leases | The Company’s aggregate maturities of finance leases (in thousands) at December 31, 2020 are as follows: January 2021 - December 2021 $ 54 January 2022 - December 2022 36 January 2023 - December 2023 8 Obligations under finance leases $ 98 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of expense, cash flow information and balance sheet information related to operating and finance leases | The components of lease cost (in thousands) for the years ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 2019 Finance lease cost Amortization of right-of-use assets $ 1,357 $ 1,424 Interest on lease liabilities 46 177 Total finance lease cost 1,403 1,601 Operating lease cost 1,511 1,586 Short-term lease cost — — Total lease cost $ 2,914 $ 3,187 Supplemental cash flow information related to leases (in thousands) for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ (1,534) $ (1,505) Operating cash flows from finance leases $ (51) $ (184) Financing cash flows from finance leases $ (2,326) $ (2,855) Right-of-use assets obtained in exchange for lease obligations Operating leases $ 64 $ 8,252 Finance leases $ — $ 121 Supplemental balance sheet information related to leases (in thousands) as of December 31, 2020 and 2019 was as follows: December 31, 2020 2019 Operating leases Operating lease right-of-use assets $ 5,494 $ 6,605 Operating lease liabilities - current $ 1,109 $ 1,200 Operating lease liabilities - long-term 4,899 5,940 Total operating lease liabilities $ 6,008 $ 7,140 Finance leases Property and equipment, at cost $ 8,663 $ 8,663 Accumulated depreciation (4,624) (3,297) Property and equipment, net $ 4,039 $ 5,366 Finance lease liabilities - current $ 54 $ 2,316 Finance lease liabilities - long-term 44 96 Total finance lease liabilities $ 98 $ 2,412 Weighted average remaining lease term Operating leases 5.6 years 6.3 years Finance leases 1.6 years 0.8 years Weighted average discount rate Operating leases 5.04% 5.04% Finance leases 5.00% 4.67% |
Schedule of maturities of lease liabilities | Maturities of lease liabilities (in thousands) at December 31, 2020 are as follows: Operating Leases Finance Leases January 2021 - December 2021 $ 1,386 $ 57 January 2022 - December 2022 1,184 38 January 2023 - December 2023 1,172 8 January 2024 - December 2024 1,178 — January 2025 - December 2025 879 — Thereafter 1,122 — Total payments under lease agreements 6,921 103 Less imputed interest (913) (5) Total lease liabilities $ 6,008 $ 98 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation | |
Summary of stock-based compensation expense | The following table summarizes stock-based compensation expense (in thousands), which is included in operating or general and administrative expense, as appropriate, in the Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 2019 Restricted stock awards $ — $ 15 Restricted stock unit awards 703 893 Common stock awards — 297 Total compensation expense $ 703 $ 1,205 |
Summary of the Company's nonvested restricted stock unit awards | Number of Restricted Stock Unit Awards Weighted Average Grant Date Fair Value Nonvested as of December 31, 2019 410,100 $ 5.55 Granted — $ — Vested (236,100) $ 4.41 Forfeited — $ — Nonvested as of December 31, 2020 174,000 $ 7.10 |
Summary of common shares with immediate vesting granted to outside directors and employees | Number of Common Stock Awards Weighted Average Grant Date Fair Value Year ended December 31, 2020 — $ — Year ended December 31, 2019 119,556 $ 2.48 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of components of loss before income taxes | The Company’s components of loss before income tax (in thousands) were as follows: Year Ended December 31, 2020 2019 Domestic $ (15,116) $ (14,097) Foreign 1,944 (1,355) Loss before income tax $ (13,172) $ (15,452) |
Schedule of components of income tax (expense) benefit | The Company’s components of income tax (expense) benefit (in thousands) were as follows: Year Ended December 31, 2020 2019 Current federal benefit $ 117 $ 285 Current state expense (131) (69) Deferred federal expense (268) (251) Deferred state benefit 258 127 Deferred foreign benefit — 147 Income tax (expense) benefit $ (24) $ 239 |
Schedule of the difference between the income tax provision and the amount computed by applying the statutory federal income tax rate to losses before income taxes | The income tax provision (in thousands) differs from the amount computed by applying the statutory federal income tax rate to loss before income tax as follows: Year Ended December 31, 2020 2019 Tax benefit computed at statutory rate of 21% $ 2,766 $ 3,245 Change in valuation allowance (2,152) (5,744) State income tax benefit, net of federal tax 100 46 Foreign (income) loss (536) 2,827 Other (202) (135) Income tax (expense) benefit $ (24) $ 239 |
Schedule of the principal components of the Company's net deferred tax (liabilities) assets | The principal components of the Company’s net deferred tax assets (liabilities) (in thousands) were as follows: December 31, 2020 2019 Deferred tax assets: Federal tax net operating loss ("NOL") carryforward $ 26,754 $ 25,921 Foreign tax NOL carryforward 6,244 6,418 State tax NOL carryforward 1,509 1,692 Other comprehensive income 273 379 Restricted stock and restricted stock unit awards 230 316 Foreign deferred taxes 207 242 Right-of-use assets 124 193 Canadian start-up costs 104 122 Self-insurance 62 106 Workers’ compensation 44 96 Deferred revenue — 351 Alternative Minimum Tax ("AMT") credit carryforward — 79 Other 51 90 Gross deferred tax assets 35,602 36,005 Less valuation allowances (30,396) (28,299) Net deferred tax assets 5,206 7,706 Deferred tax liabilities: Property and equipment (5,225) (7,649) Net deferred tax (liabilities) assets $ (19) $ 57 Domestic deferred tax (liabilities) assets $ (19) $ 57 Foreign deferred tax liabilities — — Net deferred tax (liabilities) assets $ (19) $ 57 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Loss per Share | |
Schedule of computation of basic and diluted (loss) income per share | The computation of basic and diluted loss per share (in thousands, except share and per share data) was as follows: Year Ended December 31, 2020 2019 Net loss $ (13,196) $ (15,213) Weighted average common shares outstanding Basic 23,382,433 23,179,257 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — Diluted 23,382,433 23,179,257 Basic loss per share of common stock $ (0.56) $ (0.66) Diluted loss per share of common stock $ (0.56) $ (0.66) |
Schedule of weighted average numbers of stock options, restricted stock unit awards, and restricted stock awards that have been excluded from the calculation of diluted (loss) income per share of common stock | Year Ended December 31, 2020 2019 Stock options — 50,580 Restricted stock units 292,933 456,817 Restricted stock awards — 8,133 Total 292,933 515,530 |
Major Clients (Tables)
Major Clients (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Major Clients | |
Schedule of sales to major clients, as a percentage of operating revenues | Year Ended December 31, 2020 2019 A 35% 11% B 24% — C 10% — D — 18% E — 16% F — 15% |
Areas of Operation (Tables)
Areas of Operation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Areas of Operation | |
Schedule of operating revenues, net property and equipment, and right-of-use assets by area of operation | The following tables present the Company’s operating revenues, net property and equipment, and right-of-use assets (unaudited and in thousands) by area of operation: Year Ended December 31, 2020 2019 Operating Revenues United States $ 73,983 $ 129,452 Canada 12,117 16,321 Total $ 86,100 $ 145,773 Year Ended December 31, 2020 2019 Net Propety and Equipment United States $ 33,162 $ 45,653 Canada 5,738 7,896 Total $ 38,900 $ 53,549 Year Ended December 31, 2020 2019 Right-of-use Assets United States $ 4,900 $ 5,893 Canada 594 712 Total $ 5,494 $ 6,605 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Number of states in which the Company operates | item | 48 | 48 | ||
Retained earnings | $ (62,927,000) | $ (62,927,000) | $ (49,731,000) | |
Accrued interest reversed out of interest income | (402,000) | (548,000) | ||
Allowance for doubtful accounts | $ 250,000 | 250,000 | 250,000 | $ 250,000 |
Impairment of long-lived assets | $ 0 | 0 | ||
Option to extend | true | |||
Impairment of intangibles | $ 0 | $ 0 | ||
Maximum original expected duration of cancelable service contracts (in years) | 1 year | |||
Practical expedient, financing component | false | |||
Statutory federal rate (as a percent) | 21.00% | 21.00% | ||
Minimum | ||||
Renewal terms (in years) | 1 year | 1 year | ||
Maximum | ||||
Renewal terms (in years) | 10 years | 10 years | ||
ASU No. 2016-13 | Adjustment | ||||
Retained earnings | $ 0 | |||
Accrued interest reversed out of interest income | $ 31,000 |
Short-Term Investments (Details
Short-Term Investments (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum | ||
Maturity period of certificates of deposit | 3 months | 3 months |
Maximum | ||
Maturity period of certificates of deposit | 1 year | 1 year |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | ||
Gross | $ 271,480 | $ 284,647 |
Less accumulated depreciation | (232,580) | (231,098) |
Property and equipment, net | 38,900 | 53,549 |
Land, building and other | ||
Property, Plant and Equipment | ||
Gross | $ 16,070 | $ 16,612 |
Land, building and other | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 3 years | 3 years |
Land, building and other | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 40 years | 40 years |
Recording equipment | ||
Property, Plant and Equipment | ||
Gross | $ 158,619 | $ 163,564 |
Recording equipment | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 5 years | 5 years |
Recording equipment | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 10 years | 10 years |
Vibrator energy sources | ||
Property, Plant and Equipment | ||
Gross | $ 73,852 | $ 78,626 |
Vibrator energy sources | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 5 years | 5 years |
Vibrator energy sources | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 15 years | 15 years |
Vehicles | ||
Property, Plant and Equipment | ||
Gross | $ 22,939 | $ 25,845 |
Vehicles | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 1 year 6 months | 1 year 6 months |
Vehicles | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful lives of property and equipment (in years) | 10 years | 10 years |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Statement Information - Allowance for Doubtful Accounts (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Allowance for doubtful accounts | |
Beginning Balance | $ (250,000) |
Additional provisions to allowance | (1,625,000) |
Ending Balance | (250,000) |
Accounts Receivable | |
Allowance for doubtful accounts | |
Write-offs against allowance | 191,000 |
Notes Receivable | |
Allowance for doubtful accounts | |
Write-offs against allowance | $ 1,434,000 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Statement Information - Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other current liabilities | ||
Accrued self-insurance reserves | $ 851 | $ 2,771 |
Other accrued expenses and current liabilities | 960 | 828 |
Other current liabilities | $ 1,811 | $ 3,599 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Statement Information - Disaggregated Revenues (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Number of business segments | segment | 1 | |
Operating Revenues | $ 86,100 | $ 145,773 |
United States | ||
Operating Revenues | 73,983 | 129,452 |
Canada | ||
Operating Revenues | $ 12,117 | $ 16,321 |
Supplemental Consolidated Fin_5
Supplemental Consolidated Financial Statement Information - Deferred Costs and Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | |
Deferred costs | $ 2,525 | $ 6,994 | ||
Total deferred costs amortized | $ 16,130 | $ 38,468 | ||
Deferred revenue | 1,779 | 3,481 | $ 3,481 | $ 10,501 |
Revenue recognized that was included in deferred revenue balances at beginning of period | 3,476 | 10,501 | ||
Prepaid expenses and other current assets | ||||
Deferred costs | $ 1,847 | $ 2,525 |
Debt (Details)
Debt (Details) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020 | Dec. 31, 2020instrument | Dec. 31, 2020item | Dec. 31, 2019USD ($) |
DEBT | |||||||
Finance lease | $ 98,000 | $ 2,412,000 | |||||
Dominion Loan Agreement | |||||||
DEBT | |||||||
Maturity of line of credit extended | 1 year | ||||||
Maximum borrowing capacity | $ 15,000,000 | $ 15,000,000 | |||||
Percentage of maximum borrowing capacity on eligible accounts receivable | 80.00% | ||||||
Percentage of maximum borrowing capacity on deposit with lender | 100.00% | ||||||
Restricted CDARS account | $ 5,000,000 | ||||||
Commitment fee (as a percent) | 0.10% | ||||||
Minimum tangible net worth | $ 75,000,000 | ||||||
Dominion Loan Agreement | Minimum | |||||||
DEBT | |||||||
Interest rate (as a percent) | 3.50% | ||||||
Dominion Loan Agreement | Maximum | |||||||
DEBT | |||||||
Interest rate (as a percent) | 6.00% | ||||||
Dominion Letters of Credit | |||||||
DEBT | |||||||
Number of letters of credit | 1 | 1 | |||||
Amount of letter of credit | 583,000 | ||||||
Notes payable to finance companies for insurance | |||||||
DEBT | |||||||
Interest rate (as a percent) | 4.99% | ||||||
Number of notes payable | instrument | 1 | ||||||
Total insurance premiums | $ 40,000 | ||||||
Notes payable to finance companies for insurance | Minimum | |||||||
DEBT | |||||||
Interest rate (as a percent) | 4.05% | ||||||
Notes payable to finance companies for insurance | Maximum | |||||||
DEBT | |||||||
Interest rate (as a percent) | 4.99% |
Debt - Aggregate principal amou
Debt - Aggregate principal amount and interest rates (Details) - Notes payable to finance companies for insurance - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
DEBT | ||
Aggregate principal amount outstanding | $ 40 | $ 1,746 |
Interest rate (as a percent) | 4.99% | |
Minimum | ||
DEBT | ||
Interest rate (as a percent) | 4.05% | |
Maximum | ||
DEBT | ||
Interest rate (as a percent) | 4.99% |
Debt - Maturities (Details)
Debt - Maturities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Aggregate maturities of finance leases | ||
January 2021 - December 2021 | $ 54,000 | |
January 2022 - December 2022 | 36,000 | |
January 2023 - December 2023 | 8,000 | |
Obligations under finance leases | $ 98,000 | $ 2,412,000 |
Minimum | ||
Aggregate maturities of finance leases | ||
Interest rate on leases | 4.83% | |
Maximum | ||
Aggregate maturities of finance leases | ||
Interest rate on leases | 5.37% |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Amortization of right-of-use assets | $ 1,357 | $ 1,424 |
Interest on lease liabilities | 46 | 177 |
Total finance lease cost | 1,403 | 1,601 |
Operating lease cost | 1,511 | 1,586 |
Total lease cost | $ 2,914 | $ 3,187 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Operating cash flows from operating leases | $ (1,534) | $ (1,505) |
Operating cash flows from finance leases | (51) | (184) |
Financing cash flows from finance leases | (2,326) | (2,855) |
Right-of-use assets obtained in exchange for operating leases | $ 64 | 8,252 |
Right-of-use assets obtained in exchange for finance leases | $ 121 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating leases | ||
Operating lease right-of-use assets | $ 5,494,000 | $ 6,605,000 |
Operating lease liabilities - current | 1,109,000 | 1,200,000 |
Operating lease liabilities - long-term | 4,899,000 | 5,940,000 |
Total operating lease liabilities | 6,008,000 | 7,140,000 |
Finance leases | ||
Property and equipment, at cost | 8,663,000 | 8,663,000 |
Accumulated depreciation | (4,624,000) | (3,297,000) |
Property and equipment, net | 4,039,000 | 5,366,000 |
Finance lease liabilities - current | 54,000 | 2,316,000 |
Finance lease liabilities - long-term | 44,000 | 96,000 |
Obligations under finance leases | $ 98,000 | $ 2,412,000 |
Weighted average remaining lease term: | ||
Operating leases | 5 years 7 months 6 days | 6 years 3 months 18 days |
Finance leases | 1 year 7 months 6 days | 9 months 18 days |
Weighted average discount rate: | ||
Operating leases | 5.04% | 5.04% |
Finance leases | 5.00% | 4.67% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
January 2021 - December 2021 | $ 1,386,000 | |
January 2022 - December 2022 | 1,184,000 | |
January 2023 - December 2023 | 1,172,000 | |
January 2024 - December 2024 | 1,178,000 | |
January 2025 - December 2025 | 879,000 | |
Thereafter | 1,122,000 | |
Total payments under lease agreements | 6,921,000 | |
Less imputed interest | (913,000) | |
Total lease liabilities | 6,008,000 | $ 7,140,000 |
Finance Leases | ||
January 2021 - December 2021 | 57,000 | |
January 2022 - December 2022 | 38,000 | |
January 2023 - December 2023 | 8,000 | |
Total payments under lease agreements | 103,000 | |
Less imputed interest | (5,000) | |
Total lease liabilities | $ 98,000 | $ 2,412,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | Jun. 09, 2020 | May 01, 2018 | May 05, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 |
Stock-Based Compensation Plans | ||||||
Number of awards previously granted under prior plans remains outstanding | 0 | |||||
Stock-based compensation expense | $ 703 | $ 1,205 | ||||
Restricted stock awards | ||||||
Stock-Based Compensation Plans | ||||||
Stock-based compensation expense | 15 | |||||
Restricted stock units | ||||||
Stock-Based Compensation Plans | ||||||
Stock-based compensation expense | $ 703 | 893 | ||||
Common stock awards | ||||||
Stock-Based Compensation Plans | ||||||
Stock-based compensation expense | $ 297 | |||||
The 2016 Plan | ||||||
Stock-Based Compensation Plans | ||||||
Number of shares authorized | 1,050,000 | 1,000,000 | ||||
Percentage of stock dividend approved by the board | 5.00% | |||||
Restated 2016 Plan | ||||||
Stock-Based Compensation Plans | ||||||
Number of shares authorized | 2,050,000 | |||||
Number of additional shares authorized | 1,000,000 | |||||
Shares available for future issuance | 1,376,299 | |||||
Option expiration term | 10 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stock-Based Compensation | ||
Outstanding stock options | 0 | 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards, Restricted Stock Units and Common Stock Awards (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted stock awards | ||
Number of Restricted Stock Unit Awards | ||
Nonvested restricted shares outstanding, beginning balance (in shares) | 0 | |
Granted (in shares) | 0 | 0 |
Nonvested restricted shares outstanding, ending balance (in shares) | 0 | 0 |
Additional disclosures | ||
Annual increment period | 3 years | |
Unrecognized compensation cost | $ 0 | $ 0 |
Aggregate vesting date fair value of restricted awards | $ 0 | $ 255,000 |
Restricted stock awards | Minimum | ||
Additional disclosures | ||
Vesting period | 1 year | |
Restricted stock awards | Maximum | ||
Additional disclosures | ||
Vesting period | 3 years | |
Restricted stock units | ||
Number of Restricted Stock Unit Awards | ||
Nonvested restricted shares outstanding, beginning balance (in shares) | 410,100 | |
Vested (in shares) | (236,100) | |
Nonvested restricted shares outstanding, ending balance (in shares) | 174,000 | 410,100 |
Weighted Average Grant-Date Fair Value | ||
Nonvested restricted shares outstanding, beginning balance (in dollars per share) | $ 5.55 | |
Vested (in dollars per share) | 4.41 | |
Nonvested restricted shares outstanding, ending balance (in dollars per share) | $ 7.10 | $ 5.55 |
Additional disclosures | ||
Annual increment period | 3 years | |
Unrecognized compensation cost | $ 168,000 | |
Period over which unrecognized compensation expense is expected to be recognized | 4 months 28 days | |
Aggregate vesting date fair value of restricted awards | $ 360,000 | $ 710,000 |
Restricted stock units | Minimum | ||
Additional disclosures | ||
Vesting period | 1 year | |
Restricted stock units | Maximum | ||
Additional disclosures | ||
Vesting period | 3 years | |
Common stock awards | ||
Number of Restricted Stock Unit Awards | ||
Granted (in shares) | 119,556 | |
Weighted Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 2.48 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefit Plans | ||
Employer matching contribution, percent matched | 100.00% | 100.00% |
Percentage of employees gross pay that is matched | 6.00% | 6.00% |
Matching contribution to the plan | $ 947,000 | $ 1,340,000 |
Advertising Costs (Details)
Advertising Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Advertising Costs | ||
Advertising costs | $ 130,000 | $ 351,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loss before income taxes | ||
Domestic | $ (15,116,000) | $ (14,097,000) |
Foreign | 1,944,000 | (1,355,000) |
Loss before income tax | (13,172,000) | (15,452,000) |
Income tax (expense) benefit | ||
Current federal benefit | 117,000 | 285,000 |
Current state expense | (131,000) | (69,000) |
Deferred federal expense | (268,000) | (251,000) |
Deferred state benefit | 258,000 | 127,000 |
Deferred foreign benefit | 147,000 | |
Income tax (expense) benefit | $ (24,000) | $ 239,000 |
Reconciliation of income tax provision | ||
Federal income tax rate (as a percent) | 21.00% | 21.00% |
Tax benefit computed at statutory rate of 21% | $ 2,766,000 | $ 3,245,000 |
Change in valuation allowance | (2,152,000) | (5,744,000) |
State income tax benefit, net of federal tax | 100,000 | 46,000 |
Foreign (income) loss | (536,000) | 2,827,000 |
Other | (202,000) | (135,000) |
Income tax (expense) benefit | (24,000) | 239,000 |
Deferred tax assets: | ||
Federal tax net operating loss ("NOL") carryforward | 26,754,000 | 25,921,000 |
Foreign tax NOL carryforward | 6,244,000 | 6,418,000 |
State tax NOL carryforward | 1,509,000 | 1,692,000 |
Other comprehensive income | 273,000 | 379,000 |
Restricted stock and restricted stock unit awards | 230,000 | 316,000 |
Foreign deferred taxes | 207,000 | 242,000 |
Right-of-use assets | 124,000 | 193,000 |
Canadian start-up costs | 104,000 | 122,000 |
Self-insurance | 62,000 | 106,000 |
Workers' compensation | 44,000 | 96,000 |
Deferred revenue | 351,000 | |
Alternative Minimum Tax ("AMT") credit carryforward | 79,000 | |
Other | 51,000 | 90,000 |
Gross deferred tax assets | 35,602,000 | 36,005,000 |
Less valuation allowances | (30,396,000) | (28,299,000) |
Net deferred tax assets | 5,206,000 | 7,706,000 |
Deferred tax liabilities: | ||
Property and equipment | (5,225,000) | (7,649,000) |
Net deferred tax (liabilities) assets | 57,000 | |
Net deferred tax (liabilities) assets | (19,000) | |
Unrecognized Tax Benefits | 0 | 0 |
Canada | ||
Deferred tax liabilities: | ||
Net operating loss carry forwards | 24,016,000 | |
Federal | ||
Deferred tax liabilities: | ||
Net deferred tax (liabilities) assets | $ 57,000 | |
Net deferred tax (liabilities) assets | (19,000) | |
Net operating loss carry forwards | 127,399,000 | |
Tax benefits carry forward | 26,754,000 | |
State | ||
Deferred tax liabilities: | ||
Tax benefits carry forward | $ 1,509,000 |
Net Loss per Share (Details)
Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Loss per Share | ||
Net loss | $ (13,196) | $ (15,213) |
Weighted average common shares outstanding: | ||
Basic | 23,382,433 | 23,179,257 |
Diluted | 23,382,433 | 23,179,257 |
Basic loss per share of common stock | $ (0.56) | $ (0.66) |
Diluted loss per share of common stock | $ (0.56) | $ (0.66) |
Net Loss per Share - Anti-Dilut
Net Loss per Share - Anti-Dilutive Awards Excluded from Calculation (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 292,933 | 515,530 |
Stock options | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 50,580 | |
Restricted stock units | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 292,933 | 456,817 |
Restricted stock awards | ||
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share | ||
Weighted average number of securities excluded from calculation | 8,133 |
Major Clients (Details)
Major Clients (Details) - segment | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Number of business segments | 1 | |
Customer concentration risk | Service Revenue | A | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 35.00% | 11.00% |
Customer concentration risk | Service Revenue | B | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 24.00% | |
Customer concentration risk | Service Revenue | C | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | |
Customer concentration risk | Service Revenue | D | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 18.00% | |
Customer concentration risk | Service Revenue | E | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 16.00% | |
Customer concentration risk | Service Revenue | F | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 15.00% |
Areas of Operation (Details)
Areas of Operation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Areas of Operation | ||
Operating Revenues | $ 86,100 | $ 145,773 |
Net Property and Equipment | 38,900 | 53,549 |
Right-of-use Assets | 5,494 | 6,605 |
United States | ||
Areas of Operation | ||
Operating Revenues | 73,983 | 129,452 |
Net Property and Equipment | 33,162 | 45,653 |
Right-of-use Assets | 4,900 | 5,893 |
Canada | ||
Areas of Operation | ||
Operating Revenues | 12,117 | 16,321 |
Net Property and Equipment | 5,738 | 7,896 |
Right-of-use Assets | $ 594 | $ 712 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 01, 2019defendant |
Weatherford Litigation | |
OPERATING COMMITMENTS AND CONTINGENCIES | |
Number of other parties named as defendants | 18 |
Commitments and Contingencies -
Commitments and Contingencies - Letters of Credit (Details) - Dec. 31, 2020 - Dominion Letters of Credit | Total | USD ($) | item |
Commitment and Contingencies | |||
Number of letters of credit | 1 | 1 | |
Amount of letter of credit | $ 583,000 |