Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 10, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | |
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 | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,812,329 | |
Entity Central Index Key | 0000799165 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 11,462 | $ 10,772 |
Restricted cash | 5,000 | 5,000 |
Short-term investments | 265 | 265 |
Accounts receivable, net | 14,888 | 12,735 |
Prepaid expenses and other current assets | 6,578 | 8,654 |
Total current assets | 38,193 | 37,426 |
Property and equipment, net | 16,290 | 16,508 |
Right-of-use assets | 2,928 | 3,208 |
Intangibles, net | 369 | 377 |
Total assets | 57,780 | 57,519 |
Current liabilities: | ||
Accounts payable | 5,415 | 3,883 |
Accrued liabilities: | ||
Dividend payable | 9,860 | |
Other | 4,019 | 4,124 |
Deferred revenue | 5,318 | 11,829 |
Current maturities of notes payable and finance leases | 1,111 | 1,380 |
Current maturities of operating lease liabilities | 1,137 | 1,202 |
Total current liabilities | 26,860 | 22,418 |
Long-term liabilities: | ||
Notes payable and finance leases, net of current maturities | 1,520 | 1,289 |
Operating lease liabilities, net of current maturities | 2,125 | 2,363 |
Deferred tax liabilities, net | 15 | 15 |
Total long-term liabilities | 3,660 | 3,667 |
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, 30,812,329 shares issued, and 30,812,329 shares outstanding at March 31, 2024 and December 31, 2023 | 308 | 308 |
Additional paid-in capital | 156,678 | 156,678 |
Accumulated deficit | (127,654) | (123,640) |
Accumulated other comprehensive loss, net | (2,072) | (1,912) |
Total stockholders' equity | 27,260 | 31,434 |
Total liabilities and stockholders' equity | $ 57,780 | $ 57,519 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 30,812,329 | 30,812,329 |
Common stock, shares outstanding | 30,812,329 | 30,812,329 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating revenues | $ 31,584 | $ 29,408 |
Operating expenses | ||
Operating expenses | 22,342 | 23,782 |
General and administrative | 1,911 | 3,499 |
Depreciation and amortization | 1,589 | 2,700 |
Total operating costs | 25,842 | 29,981 |
Income (loss) from operations | 5,742 | (573) |
Other income (expense): | ||
Interest income | 113 | 108 |
Interest expense | (46) | (17) |
Other income, net | 239 | 52 |
Income (loss) before income tax | 6,048 | (430) |
Income tax (expense) benefit | (202) | 17 |
Net income (loss) | 5,846 | (413) |
Other comprehensive loss: | ||
Net unrealized loss on foreign exchange rate translation | (160) | (6) |
Comprehensive income (loss) | $ 5,686 | $ (419) |
Basic income (loss) per share of common stock (in dollars per share) | $ 0.19 | $ (0.02) |
Diluted income (loss) per share of common stock (in dollars per share) | $ 0.19 | $ (0.02) |
Weighted average equivalent common shares outstanding | 30,812,329 | 25,000,564 |
Weighted average equivalent common shares outstanding - assuming dilution | 30,812,329 | 25,000,564 |
Fee revenue | ||
Operating revenues | $ 26,738 | $ 22,273 |
Operating expenses | ||
Operating expenses | 17,496 | 16,647 |
Reimbursable revenue | ||
Operating revenues | 4,846 | 7,135 |
Operating expenses | ||
Operating expenses | $ 4,846 | $ 7,135 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 5,846 | $ (413) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,589 | 2,700 |
Operating lease cost | 271 | 254 |
Deferred income tax (benefit) expense | (25) | |
Gain on disposal of assets | (42) | (11) |
Remeasurement and other | 5 | 0 |
Change in operating assets and liabilities: | ||
Increase in accounts receivable | (2,208) | (7,467) |
Decrease in employee retention credit receivable | 3,035 | |
Decrease (increase) in prepaid expenses and other assets | 2,072 | (2,833) |
Increase in accounts payable | 1,239 | 3,337 |
Decrease in accrued liabilities | (97) | (1,033) |
Decrease in operating lease liabilities | (294) | (273) |
(Decrease) increase in deferred revenue | (6,511) | 909 |
Net cash provided by (used in) operating activities | 1,870 | (1,820) |
Cash flows from investing activities: | ||
Capital expenditures, net of non-cash capital expenditures summarized below | (684) | (1,606) |
Proceeds from disposal of assets | 162 | 11 |
Acquisition of short-term investments | (1,000) | |
Net cash used in investing activities | (522) | (2,595) |
Cash flows from financing activities: | ||
Principal payments on notes payable | (385) | (144) |
Principal payments on finance leases | (197) | (25) |
Breckenridge cash distributions prior to acquisition | (3,055) | |
Net cash used in financing activities | (582) | (3,224) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (76) | (20) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 690 | (7,659) |
Cash and cash equivalents and restricted cash at beginning of period | 15,772 | 23,603 |
Cash and cash equivalents and restricted cash at end of period | 16,462 | 15,944 |
Supplemental cash flow information: | ||
Cash paid for interest | 42 | 14 |
Non-cash operating, investing and financing activities: | ||
Increase (decrease) in accrued purchases of property and equipment | 300 | (605) |
Finance leases incurred | 556 | 116 |
Dividend accrual | $ 9,860 | 0 |
Increase in right-of-use assets and operating lease liabilities | 283 | |
Financed insurance premiums | 440 | |
Convertible note for asset purchase | 9,880 | |
Deemed distribution of Breckenridge net assets not acquired | 2,329 | |
Acquisition of Breckenridge net assets | $ (1,335) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Equity Attributable to Breckenridge Prior to Acquisition | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at beginning of period at Dec. 31, 2022 | $ 7,695 | $ 238 | $ 155,413 | $ (112,469) | $ (2,073) | $ 48,804 |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 23,812,329 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (976) | 563 | (413) | |||
Unrealized loss on foreign exchange rate translation | (6) | (6) | ||||
Issuance of stock for Breckenridge acquisition | (1,335) | $ 12 | 2,008 | 685 | ||
Issuance of stock for Breckenridge acquisition (in shares) | 1,188,235 | |||||
Excess of purchase price over net assets acquired | (10,565) | (10,565) | ||||
Breckenridge cash distributions prior to acquisition | (3,055) | (3,055) | ||||
Deemed distributions of Breckenridge net assets not acquired | $ (2,329) | (2,329) | ||||
Balance at end of period at Mar. 31, 2023 | $ 250 | 146,856 | (111,906) | (2,079) | 33,121 | |
Balance at end of period (in shares) at Mar. 31, 2023 | 25,000,564 | |||||
Balance at beginning of period at Dec. 31, 2023 | $ 308 | 156,678 | (123,640) | (1,912) | $ 31,434 | |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 30,812,329 | 30,812,329 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | 5,846 | $ 5,846 | ||||
Dividends declared | (9,860) | (9,860) | ||||
Unrealized loss on foreign exchange rate translation | (160) | (160) | ||||
Balance at end of period at Mar. 31, 2024 | $ 308 | $ 156,678 | $ (127,654) | $ (2,072) | $ 27,260 | |
Balance at end of period (in shares) at Mar. 31, 2024 | 30,812,329 | 30,812,329 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS Dawson Geophysical Company (the “Company”) is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States (“U.S.”) and Canada. The Company acquires and processes 2-D, 3-D and multicomponent seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators as well as providers of multi-client data libraries. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements may have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the U.S. for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the U.S. have been omitted. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The December 31, 2023 balance sheet information was derived from our audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Asset Purchase Agreement. The Purchase Agreement has been accounted for as a transfer of net assets between entities under common control in a manner similar to a pooling of interests. The Company’s historical consolidated financial statements include the effects on financial position, cash flows, and results of operations attributable to the activities of Breckenridge for all periods presented. The effects of transactions in Breckenridge’s equity prior to the Transaction have been presented as a separate component of stockholders’ equity on the Condensed Consolidated Balance Sheets and on the Condensed Consolidated Statements of Stockholders’ Equity to demonstrate the effects of those transactions on the Company’s historical consolidated financial statements. Significant Accounting Policies Principles of Consolidation. 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. Allowance for Current Expected Credit Losses. Leases Property and Equipment. Impairment of Long-lived Assets . Use of Estimates in the Preparation of Financial Statements. Revenue Recognition 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 generally 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. Risks and Uncertainties. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3. FAIR VALUE OF FINANCIAL INSTRUMENTS At March 31, 2024 and December 31, 2023, the Company’s financial instruments included cash and cash equivalents, restricted cash, short-term investments in certificates of deposit, accounts receivable, other current assets, accounts payable, other current liabilities, notes payable, finance leases and operating lease liabilities. 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 payable, finance leases and operating lease liabilities approximate their fair value based on a comparison with the prevailing market interest rate. Due to the short-term maturities of the Company’s investments in certificates of deposit, the carrying amounts approximate fair value at the respective balance sheet dates. The fair values of the Company’s notes payable and investments in certificates of deposit are level 2 measurements in the fair value hierarchy. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Mar. 31, 2024 | |
OPERATING SEGMENTS | |
OPERATING SEGMENTS | 4 . OPERATING SEGMENTS The Company’s chief operating decision maker (President and Chief Executive Officer) reviews the discrete segment financial information on a geographic basis for the U.S. operations and Canada Operations. The revenue for both of the Company’s segments is generated by the same services, which utilize the same type of equipment and personnel. The performance of our segments is evaluated primarily on Adjusted EBITDA. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income tax expense or benefit, (iii) depreciation, depletion and amortization and (iv) other unusual or non-recurring charges, such as severance expenses. As a result, the Company has two reportable segments, U.S. Operations and Canada Operations. The following tables present the Company’s income statements by operating segment (in thousands): Three Months Ended March 31, 2024 USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 18,287 $ 8,451 $ 26,738 Reimbursable revenue 4,809 37 4,846 23,096 8,488 31,584 Operating costs: Fee operating expenses 13,179 4,317 17,496 Reimbursable operating expenses 4,809 37 4,846 Operating expenses 17,988 4,354 22,342 General and administrative 1,742 169 1,911 Depreciation and amortization 1,305 284 1,589 21,035 4,807 25,842 Income from operations 2,061 3,681 5,742 Other income (expense): Interest income 99 14 113 Interest expense (36) (10) (46) Other income (expense) 245 (6) 239 Income before income tax 2,369 3,679 6,048 Income tax expense (202) — (202) Net income 2,167 3,679 5,846 Other comprehensive loss: Net unrealized loss on foreign exchange rate translation — (160) (160) Comprehensive income $ 2,167 $ 3,519 $ 5,686 Three Months Ended March 31, 2023 USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 12,263 $ 10,010 $ 22,273 Reimbursable revenue 6,533 602 7,135 18,796 10,612 29,408 Operating costs: Fee operating expenses 9,644 7,003 16,647 Reimbursable operating expenses 6,533 602 7,135 Operating expenses 16,177 7,605 23,782 General and administrative 3,102 397 3,499 Depreciation and amortization 2,118 582 2,700 21,397 8,584 29,981 (Loss) income from operations (2,601) 2,028 (573) Other income (expense): Interest income 87 21 108 Interest expense (12) (5) (17) Other income, net 49 3 52 (Loss) income before income tax (2,477) 2,047 (430) Income tax benefit 17 — 17 Net (loss) income (2,460) 2,047 (413) Other comprehensive loss: Net unrealized loss on foreign exchange rate translation — (6) (6) Comprehensive (loss) income $ (2,460) $ 2,041 $ (419) The following table presents the Company’s total assets (unaudited and in thousands) disaggregated by operating segment: March 31, December 31, 2024 2023 Total Assets United States $ 42,518 $ 48,495 Canada 15,262 9,024 Total Assets $ 57,780 $ 57,519 The reconciliation of the Company’s EBITDA to net income (loss) and to net cash provided by (used in) operating activities, which are the most directly comparable GAAP financial measures, are provided in the following tables (in thousands): Three Months Ended March 31, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net income (loss) $ 2,167 $ 3,679 $ 5,846 $ (2,460) $ 2,047 $ (413) Depreciation and amortization 1,305 284 1,589 2,118 582 2,700 Severance expense — — — — — — Interest (income) expense, net (63) (4) (67) (75) (16) (91) Income tax expense (benefit) 202 — 202 (17) — (17) EBITDA $ 3,611 $ 3,959 $ 7,570 $ (434) $ 2,613 $ 2,179 Three Months Ended March 31, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net cash provided by (used in) operating activities $ 1,996 $ (126) $ 1,870 $ 2,578 $ (4,398) $ (1,820) Changes in working capital and other items 1,835 4,136 5,971 (2,794) 7,047 4,253 Non-cash adjustments to net income (loss) (220) (51) (271) (218) (36) (254) EBITDA $ 3,611 $ 3,959 $ 7,570 $ (434) $ 2,613 $ 2,179 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt | |
Debt | 5 . DEBT Dominion Loan Agreement On September 30, 2019, the Company entered into a Loan and Security Agreement with Dominion Bank, a Texas state bank (“Dominion Bank”). On September 30, 2023, the Company entered into a Fifth Loan Modification Agreement (the “Fifth Modification Agreement”) to the Loan and Security Agreement (as amended by (i) that certain Loan Modification Agreement dated as of September 30, 2020, (ii) that certain Second Loan Modification Agreement dated as of September 30, 2021, (iii) that certain Third Loan Modification Agreement dated as of September 30, 2022, (iv) that certain Fourth Modification Agreement dated as of March 21, 2023, and (v) the Fifth Modification Agreement, the “Loan Agreement”). The Loan Agreement now provides for a secured revolving credit facility (the “Revolving Credit Facility”) in an amount up to the lesser of (I) an amount equal to the Borrowing Base or (II) $5 million. The Company’s obligations under the Loan Agreement are secured by a Certificate of Deposit with Dominion Bank for $5 million (the “Deposit”) in the Company’s collateral account. As of March 31, 2024, the Company had not borrowed any amounts under the Revolving Credit Facility and had approximately $5 million available for withdrawal. On May 2, 2024, the collateral deposit of $5 million was released and the Loan Agreement was terminated. Dominion Letters of Credit As of March 31, 2024, Dominion Bank has issued one letter of credit in the amount of $265,000 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 March 31, 2024, the Company has one short-term note payable to a finance company for various insurance premiums totaling $526,000. In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Condensed Consolidated Balance Sheet Maturities and Interest Rates of Debt The following tables set forth the aggregate principal amount (in thousands) under the Company’s outstanding notes payable and the interest rates as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Notes payable to finance company for insurance Aggregate principal amount outstanding $ 526 $ 910 Interest rate 8.75% The aggregate maturities of finance leases as of March 31, 2024 are as follows (in thousands): April 2024 - March 2025 $ 586 April 2025 - March 2026 671 April 2026 - March 2027 619 April 2027 - March 2028 229 Obligations under finance leases $ 2,105 Interest rates on these leases range from 4.86% to 8.74%. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Leases | 6. 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 majority of our operating leases are non-cancelable operating leases for office and shop space in Midland, Plano, Houston and Calgary, Alberta. There have been no material changes to our leases since the Company’s most recent Annual Report on Form 10-K that was filed with the SEC on April 1, 2024. Maturities of lease liabilities as of March 31, 2024 are as follows (in thousands): Operating Leases Finance Leases April 2024 - March 2025 $ 1,278 $ 706 April 2025 - March 2026 1,075 750 April 2026 - March 2027 1,093 653 April 2027 - March 2028 78 235 April 2028 - March 2029 6 — Thereafter — — Total payments under lease agreements 3,530 2,344 Less imputed interest (268) (239) Total lease liabilities $ 3,262 $ 2,105 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7 . 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. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
NET INCOME (LOSS) PER SHARE | |
NET INCOME (LOSS) PER SHARE | 8. NET INCOME (LOSS) PER SHARE Basic income (loss) per share is computed by dividing the net income (loss) by the weighted average shares outstanding. Diluted income (loss) per share is computed by dividing the net income (loss) by the weighted average diluted shares outstanding. The computation of basic and diluted income (loss) per share (in thousands, except share and per share data) was as follows: Three Months Ended March 31, 2024 2023 Net income (loss) $ 5,846 $ (413) Weighted average common shares outstanding Basic 30,812,329 25,000,564 Diluted 30,812,329 25,000,564 Basic income (loss) per share of common stock $ 0.19 $ (0.02) Diluted income (loss) per share of common stock $ 0.19 $ (0.02) The Company does not have any outstanding stock options, restricted stock unit awards, or restricted stock awards that would dilute our outstanding shares for the three months ended March 31, 2024, and 2023. Additionally, for the three months ended March 31, 2023, the 5,811,765 shares issuable upon conversion of the convertible note were excluded from the calculation of diluted loss per share of common stock, as their effect would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | 9 . INCOME TAXES For the three months ended March 31, 2024 and 2023, the Company’s effective tax rates were 3.3% and 4.0%, respectively. The Company’s nominal effective tax rate for the periods above was due to the presence of net operating loss carryovers and adjustments to the valuation allowance on deferred tax assets. The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over an extended amount of time. Such objective evidence limits the ability to consider other subjective evidence, such as projections for taxable earnings. The Company has recorded valuation allowances against the associated deferred tax assets for the amounts it deems are not more likely than not realizable. Based on management’s belief that not all the net operating losses are realizable, a federal valuation allowance and additional state valuation allowances were maintained during the three months ended March 31, 2024 and 2023. In addition, due to the Company’s recent operating losses and valuation allowances, the Company may recognize reduced or no tax benefits on future losses on the condensed consolidated financial statements. The amount of the valuation allowances considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased, or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth. |
SUPPLEMENTAL CONSOLIDATED FINAN
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | |
Supplemental Consolidated Financial Statement Information | 10. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION Deferred Costs (in thousands) Deferred costs were $4.3 million and $5.4 million at January 1, 2024 and 2023, respectively. The Company’s prepaid expenses and other current assets at March 31, 2024 and 2023 included deferred costs incurred to fulfill contracts with customers of $2.8 million and $8.6 million, respectively. Deferred costs at March 31, 2024 compared to January 1, 2024 decreased primarily as a result of the completion of several projects during that three month period that had deferred fulfillment costs at January 1, 2024. Deferred costs at March 31, 2023 compared to January 1, 2023 increased primarily as a result of new projects for clients with significant deferred fulfillment costs at March 31, 2023. The amount of total deferred costs amortized for the three months ended March 31, 2024 and 2023 was $7.9 million and $7.4 million, respectively. There were no material impairment losses incurred during these periods. Deferred Revenue (in thousands) Deferred revenue was $11.8 million and $7.4 million at January 1, 2024 and 2023, respectively. The Company’s deferred revenue at March 31, 2024 and 2023 was $5.3 million and $8.3 million, respectively. Deferred revenue at March 31, 2024 compared to January 1, 2024 decreased primarily as a result of completing projects for clients with prepayments for third party reimbursables. Deferred revenue at March 31, 2023 compared to January 1, 2023 increased primarily as a result of new projects for clients with large third party reimbursables where data had not yet been recorded. Revenue recognized for the three months ended March 31, 2024 and 2023 that was included in the contract liability balance at the beginning of 2024 and 2023 was $9.7 million and $3.0 million, respectively. Related Party Transactions For the three months ended March 31, 2024, the Company incurred related party expenses totaling approximately $106,000. These are charges by various commonly controlled companies of Wilks Brothers, LLC, the holder of approximately 80% of the Company’s outstanding stock. These transactions consisted of trucking charges of $97,000 and client hosting expenses of $9,000. For the three months ended March 31, 2024, the Company received related party revenue of $5,000 for partial use of leased office space. For the three months ended March 31, 2023, the Company did not have any related party transactions. As of March 31, 2024, the Company had approximately $48,000 of outstanding related party accounts payable and no outstanding related party accounts receivable. For the three months ended March 31, 2023, Breckenridge incurred related party expenses totaling approximately $110,000. These charges by various commonly controlled companies of Wilks Brothers, LLC consisted of trucking charges of $60,000, management charges of $44,000, and payroll administration charges of $6,000. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS On May 6, 2024, the $0.32 per share special cash dividend on the Company’s common stock declared on March 28, 2024 was paid to stockholders of record as of the close of business on April 22, 2024. The aggregate payment was approximately $9.9 million, which is recorded as accrued liabilities on our Condensed Consolidated Balance Sheets as of March 31, 2024. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements may have been reclassified to conform to the current period’s presentation. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the U.S. for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the U.S. have been omitted. These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The December 31, 2023 balance sheet information was derived from our audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Asset Purchase Agreement. The Purchase Agreement has been accounted for as a transfer of net assets between entities under common control in a manner similar to a pooling of interests. The Company’s historical consolidated financial statements include the effects on financial position, cash flows, and results of operations attributable to the activities of Breckenridge for all periods presented. The effects of transactions in Breckenridge’s equity prior to the Transaction have been presented as a separate component of stockholders’ equity on the Condensed Consolidated Balance Sheets and on the Condensed Consolidated Statements of Stockholders’ Equity to demonstrate the effects of those transactions on the Company’s historical consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation. 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. |
Allowance for Current Expected Credit Losses | Allowance for Current Expected Credit Losses. |
Leases | Leases |
Property and Equipment | Property and Equipment. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets . |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. |
Revenue Recognition | Revenue Recognition 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 generally 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. |
Risks and uncertainties | Risks and Uncertainties. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
OPERATING SEGMENTS | |
Schedule of income statements by operating segment | The following tables present the Company’s income statements by operating segment (in thousands): Three Months Ended March 31, 2024 USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 18,287 $ 8,451 $ 26,738 Reimbursable revenue 4,809 37 4,846 23,096 8,488 31,584 Operating costs: Fee operating expenses 13,179 4,317 17,496 Reimbursable operating expenses 4,809 37 4,846 Operating expenses 17,988 4,354 22,342 General and administrative 1,742 169 1,911 Depreciation and amortization 1,305 284 1,589 21,035 4,807 25,842 Income from operations 2,061 3,681 5,742 Other income (expense): Interest income 99 14 113 Interest expense (36) (10) (46) Other income (expense) 245 (6) 239 Income before income tax 2,369 3,679 6,048 Income tax expense (202) — (202) Net income 2,167 3,679 5,846 Other comprehensive loss: Net unrealized loss on foreign exchange rate translation — (160) (160) Comprehensive income $ 2,167 $ 3,519 $ 5,686 Three Months Ended March 31, 2023 USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 12,263 $ 10,010 $ 22,273 Reimbursable revenue 6,533 602 7,135 18,796 10,612 29,408 Operating costs: Fee operating expenses 9,644 7,003 16,647 Reimbursable operating expenses 6,533 602 7,135 Operating expenses 16,177 7,605 23,782 General and administrative 3,102 397 3,499 Depreciation and amortization 2,118 582 2,700 21,397 8,584 29,981 (Loss) income from operations (2,601) 2,028 (573) Other income (expense): Interest income 87 21 108 Interest expense (12) (5) (17) Other income, net 49 3 52 (Loss) income before income tax (2,477) 2,047 (430) Income tax benefit 17 — 17 Net (loss) income (2,460) 2,047 (413) Other comprehensive loss: Net unrealized loss on foreign exchange rate translation — (6) (6) Comprehensive (loss) income $ (2,460) $ 2,041 $ (419) |
Schedule of total assets disaggregated by operating segment | The following table presents the Company’s total assets (unaudited and in thousands) disaggregated by operating segment: March 31, December 31, 2024 2023 Total Assets United States $ 42,518 $ 48,495 Canada 15,262 9,024 Total Assets $ 57,780 $ 57,519 |
Schedule of reconciliation of EBITDA to net income (loss) and to net cash provided by (used in) operating activities | The reconciliation of the Company’s EBITDA to net income (loss) and to net cash provided by (used in) operating activities, which are the most directly comparable GAAP financial measures, are provided in the following tables (in thousands): Three Months Ended March 31, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net income (loss) $ 2,167 $ 3,679 $ 5,846 $ (2,460) $ 2,047 $ (413) Depreciation and amortization 1,305 284 1,589 2,118 582 2,700 Severance expense — — — — — — Interest (income) expense, net (63) (4) (67) (75) (16) (91) Income tax expense (benefit) 202 — 202 (17) — (17) EBITDA $ 3,611 $ 3,959 $ 7,570 $ (434) $ 2,613 $ 2,179 Three Months Ended March 31, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net cash provided by (used in) operating activities $ 1,996 $ (126) $ 1,870 $ 2,578 $ (4,398) $ (1,820) Changes in working capital and other items 1,835 4,136 5,971 (2,794) 7,047 4,253 Non-cash adjustments to net income (loss) (220) (51) (271) (218) (36) (254) EBITDA $ 3,611 $ 3,959 $ 7,570 $ (434) $ 2,613 $ 2,179 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt | |
Schedule of aggregate principal amount of outstanding notes payable and the interest rates | The following tables set forth the aggregate principal amount (in thousands) under the Company’s outstanding notes payable and the interest rates as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Notes payable to finance company for insurance Aggregate principal amount outstanding $ 526 $ 910 Interest rate 8.75% |
Schedule of aggregate maturities of finance leases | The aggregate maturities of finance leases as of March 31, 2024 are as follows (in thousands): April 2024 - March 2025 $ 586 April 2025 - March 2026 671 April 2026 - March 2027 619 April 2027 - March 2028 229 Obligations under finance leases $ 2,105 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases | |
Schedule of maturities of lease liabilities - Operating Leases | Maturities of lease liabilities as of March 31, 2024 are as follows (in thousands): Operating Leases Finance Leases April 2024 - March 2025 $ 1,278 $ 706 April 2025 - March 2026 1,075 750 April 2026 - March 2027 1,093 653 April 2027 - March 2028 78 235 April 2028 - March 2029 6 — Thereafter — — Total payments under lease agreements 3,530 2,344 Less imputed interest (268) (239) Total lease liabilities $ 3,262 $ 2,105 |
Schedule of maturities of lease liabilities - Finance Leases | Maturities of lease liabilities as of March 31, 2024 are as follows (in thousands): Operating Leases Finance Leases April 2024 - March 2025 $ 1,278 $ 706 April 2025 - March 2026 1,075 750 April 2026 - March 2027 1,093 653 April 2027 - March 2028 78 235 April 2028 - March 2029 6 — Thereafter — — Total payments under lease agreements 3,530 2,344 Less imputed interest (268) (239) Total lease liabilities $ 3,262 $ 2,105 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
NET INCOME (LOSS) PER SHARE | |
Schedule of computation of basic and diluted loss per share | The computation of basic and diluted income (loss) per share (in thousands, except share and per share data) was as follows: Three Months Ended March 31, 2024 2023 Net income (loss) $ 5,846 $ (413) Weighted average common shares outstanding Basic 30,812,329 25,000,564 Diluted 30,812,329 25,000,564 Basic income (loss) per share of common stock $ 0.19 $ (0.02) Diluted income (loss) per share of common stock $ 0.19 $ (0.02) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |||||
Sep. 13, 2023 | Mar. 24, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Threshold period of past due (in days) | 90 days | |||||
Allowance for doubtful accounts | $ 250,000 | $ 250,000 | ||||
Maximum original expected duration of cancelable service contracts (in years) | 1 year | |||||
Net Income (Loss) | $ 5,846,000 | $ (413,000) | ||||
Cash | 16,462,000 | $ 15,944,000 | $ 15,772,000 | $ 23,603,000 | ||
Working capital | $ 11,300,000 | |||||
Purchase Agreement | ||||||
Number of shares issued | 1,188,235 | |||||
Number of shares to be issued under convertible notes payable | 5,800,000 | |||||
Convertible note | $ 9,900,000 | |||||
Convertible note converted into shares | 5,811,765 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
OPERATING SEGMENTS | |
Number of reportable segments | 2 |
OPERATING SEGMENTS - Income sta
OPERATING SEGMENTS - Income statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating revenues | ||
Operating revenues | $ 31,584 | $ 29,408 |
Operating costs: | ||
Operating expenses | 22,342 | 23,782 |
General and administrative | 1,911 | 3,499 |
Depreciation and amortization | 1,589 | 2,700 |
Total operating costs | 25,842 | 29,981 |
Income (loss) from operations | 5,742 | (573) |
Other income (expense): | ||
Interest income | 113 | 108 |
Interest expense | (46) | (17) |
Other income, net | 239 | 52 |
Income (loss) before income tax | 6,048 | (430) |
Income tax (expense) benefit | (202) | 17 |
Net income (loss) | 5,846 | (413) |
Other comprehensive income (loss): | ||
Net unrealized loss on foreign exchange rate translation | (160) | (6) |
Comprehensive income (loss) | 5,686 | (419) |
Fee revenue | ||
Operating revenues | ||
Operating revenues | 26,738 | 22,273 |
Operating costs: | ||
Operating expenses | 17,496 | 16,647 |
Reimbursable revenue | ||
Operating revenues | ||
Operating revenues | 4,846 | 7,135 |
Operating costs: | ||
Operating expenses | 4,846 | 7,135 |
Operating segment | USA Operations | ||
Operating revenues | ||
Operating revenues | 23,096 | 18,796 |
Operating costs: | ||
Operating expenses | 17,988 | 16,177 |
General and administrative | 1,742 | 3,102 |
Depreciation and amortization | 1,305 | 2,118 |
Total operating costs | 21,035 | 21,397 |
Income (loss) from operations | 2,061 | (2,601) |
Other income (expense): | ||
Interest income | 99 | 87 |
Interest expense | (36) | (12) |
Other income, net | 245 | 49 |
Income (loss) before income tax | 2,369 | (2,477) |
Income tax (expense) benefit | (202) | 17 |
Net income (loss) | 2,167 | (2,460) |
Other comprehensive income (loss): | ||
Comprehensive income (loss) | 2,167 | (2,460) |
Operating segment | USA Operations | Fee revenue | ||
Operating revenues | ||
Operating revenues | 18,287 | 12,263 |
Operating costs: | ||
Operating expenses | 13,179 | 9,644 |
Operating segment | USA Operations | Reimbursable revenue | ||
Operating revenues | ||
Operating revenues | 4,809 | 6,533 |
Operating costs: | ||
Operating expenses | 4,809 | 6,533 |
Operating segment | Canada Operations | ||
Operating revenues | ||
Operating revenues | 8,488 | 10,612 |
Operating costs: | ||
Operating expenses | 4,354 | 7,605 |
General and administrative | 169 | 397 |
Depreciation and amortization | 284 | 582 |
Total operating costs | 4,807 | 8,584 |
Income (loss) from operations | 3,681 | 2,028 |
Other income (expense): | ||
Interest income | 14 | 21 |
Interest expense | (10) | (5) |
Other income, net | (6) | 3 |
Income (loss) before income tax | 3,679 | 2,047 |
Net income (loss) | 3,679 | 2,047 |
Other comprehensive income (loss): | ||
Net unrealized loss on foreign exchange rate translation | (160) | (6) |
Comprehensive income (loss) | 3,519 | 2,041 |
Operating segment | Canada Operations | Fee revenue | ||
Operating revenues | ||
Operating revenues | 8,451 | 10,010 |
Operating costs: | ||
Operating expenses | 4,317 | 7,003 |
Operating segment | Canada Operations | Reimbursable revenue | ||
Operating revenues | ||
Operating revenues | 37 | 602 |
Operating costs: | ||
Operating expenses | $ 37 | $ 602 |
OPERATING SEGMENTS - Total asse
OPERATING SEGMENTS - Total assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Total assets by operating segment | ||
Total Assets | $ 57,780 | $ 57,519 |
Operating segment | United States | ||
Total assets by operating segment | ||
Total Assets | 42,518 | 48,495 |
Operating segment | Canada | ||
Total assets by operating segment | ||
Total Assets | $ 15,262 | $ 9,024 |
OPERATING SEGMENTS - Reconcilia
OPERATING SEGMENTS - Reconciliation of EBITDA to net income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation | ||
Net Income (Loss) | $ 5,846 | $ (413) |
Depreciation and amortization | 1,589 | 2,700 |
Interest (income) expense, net | (67) | (91) |
Income tax expense (benefit) | 202 | (17) |
EBITDA | 7,570 | 2,179 |
Operating segment | United States | ||
Reconciliation | ||
Net Income (Loss) | 2,167 | (2,460) |
Depreciation and amortization | 1,305 | 2,118 |
Interest (income) expense, net | (63) | (75) |
Income tax expense (benefit) | 202 | (17) |
EBITDA | 3,611 | (434) |
Operating segment | Canada | ||
Reconciliation | ||
Net Income (Loss) | 3,679 | 2,047 |
Depreciation and amortization | 284 | 582 |
Interest (income) expense, net | (4) | (16) |
EBITDA | $ 3,959 | $ 2,613 |
OPERATING SEGMENTS - Reconcil_2
OPERATING SEGMENTS - Reconciliation of EBITDA to net cash provided by (used in) operating activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reconciliation | ||
Net cash used in operating activities | $ 1,870 | $ (1,820) |
Changes in working capital and other items | 5,971 | 4,253 |
Non-cash adjustments to net income (loss) | (271) | (254) |
EBITDA | 7,570 | 2,179 |
Operating segment | United States | ||
Reconciliation | ||
Net cash used in operating activities | 1,996 | 2,578 |
Changes in working capital and other items | 1,835 | (2,794) |
Non-cash adjustments to net income (loss) | (220) | (218) |
EBITDA | 3,611 | (434) |
Operating segment | Canada | ||
Reconciliation | ||
Net cash used in operating activities | (126) | (4,398) |
Changes in working capital and other items | 4,136 | 7,047 |
Non-cash adjustments to net income (loss) | (51) | (36) |
EBITDA | $ 3,959 | $ 2,613 |
Debt (Details)
Debt (Details) | May 02, 2024 USD ($) | Mar. 31, 2024 USD ($) item | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) |
DEBT | ||||
Deposit | $ 5,000,000 | $ 5,000,000 | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Long-term Debt and Capital Lease Obligations, Current | |||
Finance lease | $ 2,105,000 | |||
Dominion Loan Agreement | ||||
DEBT | ||||
Maximum borrowing capacity | $ 5,000,000 | |||
Deposit | $ 5,000,000 | |||
Available for withdrawal | $ 5,000,000 | |||
Dominion Loan Agreement | Subsequent Events | ||||
DEBT | ||||
Collateral deposit released | $ 5,000,000 | |||
Dominion Letters of Credit | ||||
DEBT | ||||
Number of letters of credit | item | 1 | |||
Amount of letter of credit | $ 265,000 | |||
Notes payable to finance companies for insurance | ||||
DEBT | ||||
Number of notes payable | item | 1 | |||
Aggregate principal amount outstanding | $ 526,000 | $ 910,000 |
Debt - Aggregate principal amou
Debt - Aggregate principal amount and interest rates (Details) - Notes payable to finance companies for insurance - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
DEBT | ||
Aggregate principal amount outstanding | $ 526,000 | $ 910,000 |
Debt Instrument, Interest Rate, Effective Percentage | 8.75% | 8.75% |
Debt - Maturities (Details)
Debt - Maturities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Aggregate maturities of finance leases | |
April 2024 - March 2025 | $ 586 |
April 2025 - March 2026 | 671 |
April 2026 - March 2027 | 619 |
April 2027 - March 2028 | 229 |
Obligations under finance leases | $ 2,105 |
Minimum | |
Aggregate maturities of finance leases | |
Interest rate on leases | 4.86% |
Maximum | |
Aggregate maturities of finance leases | |
Interest rate on leases | 8.74% |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Leases | |
April 2024 - March 2025 | $ 1,278 |
April 2025 - March 2026 | 1,075 |
April 2026 - March 2027 | 1,093 |
April 2027 - March 2028 | 78 |
April 2028 - March 2029 | 6 |
Total payments under lease agreements | 3,530 |
Less imputed interest | (268) |
Total lease liabilities | 3,262 |
Finance Leases | |
April 2024 - March 2025 | 706 |
April 2025 - March 2026 | 750 |
April 2026 - March 2027 | 653 |
April 2027 - March 2028 | 235 |
Total payments under lease agreements | 2,344 |
Less imputed interest | (239) |
Total lease liabilities | $ 2,105 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 01, 2019 defendant |
Weatherford Litigation | |
Commitments and Contingencies | |
Number of other parties named as defendants | 18 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
NET INCOME (LOSS) PER SHARE | ||
Net Income (Loss) | $ 5,846 | $ (413) |
Weighted average common shares outstanding | ||
Basic (in shares) | 30,812,329 | 25,000,564 |
Diluted (in shares) | 30,812,329 | 25,000,564 |
Basic income (loss) per share of common stock (in dollars per share) | $ 0.19 | $ (0.02) |
Diluted income (loss) per share of common stock (in dollars per share) | $ 0.19 | $ (0.02) |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
NET INCOME (LOSS) PER SHARE | |
Number of securities excluded from calculation | 5,811,765 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAXES | ||
Effective tax rate (as percent) | 3.30% | 4% |
SUPPLEMENTAL CONSOLIDATED FIN_2
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Deferred Costs and Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 01, 2024 | Dec. 31, 2023 | Jan. 01, 2023 | |
Deferred costs | $ 4,300 | $ 5,400 | |||
Total deferred costs amortized | $ 7,900 | $ 7,400 | |||
Deferred costs impairment losses | 0 | 0 | |||
Deferred revenue | 5,318 | 8,300 | $ 11,800 | $ 11,829 | $ 7,400 |
Revenue recognized | 9,700 | 3,000 | |||
Prepaid expenses and other current assets | |||||
Deferred costs | $ 2,800 | $ 8,600 |
SUPPLEMENTAL CONSOLIDATED FIN_3
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Accounts payable | $ 5,415,000 | $ 3,883,000 | |
Accounts receivable, net | $ 14,888,000 | $ 12,735,000 | |
Wilks Brothers, LLC | Dawson Geophysical Company | |||
Related Party Transaction [Line Items] | |||
Percentage of common stock owned | 80% | ||
Breckenridge Geophysical, LLC | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 110,000 | ||
Breckenridge Geophysical, LLC | Trucking charges | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 60,000 | ||
Breckenridge Geophysical, LLC | Management charges | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 44,000 | ||
Breckenridge Geophysical, LLC | Payroll administration charges | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 6,000 | ||
Wilks Brothers, LLC | |||
Related Party Transaction [Line Items] | |||
Related party expenses | $ 106,000 | ||
Wilks Brothers, LLC | Trucking charges | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 97,000 | ||
Wilks Brothers, LLC | Client hosting expenses | |||
Related Party Transaction [Line Items] | |||
Related party expenses | 9,000 | ||
Related party | |||
Related Party Transaction [Line Items] | |||
Revenue from use of leased office space | 5,000 | ||
Accounts payable | 48,000 | ||
Accounts receivable, net | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Events $ / shares in Units, $ in Millions | May 06, 2024 USD ($) $ / shares |
Special cash dividend paid (in USD per share) | $ / shares | $ 0.32 |
Aggregate payment of special cash dividend | $ | $ 9.9 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 5,846 | $ (413) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |