Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 09, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | 30,906,777 | |
Entity Central Index Key | 0000799165 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 11,158 | $ 10,772 |
Restricted cash | 5,000 | |
Short-term investments | 265 | 265 |
Accounts receivable, net | 4,424 | 12,735 |
Prepaid expenses and other current assets | 7,079 | 8,654 |
Total current assets | 22,926 | 37,426 |
Property and equipment, net | 15,082 | 16,508 |
Right-of-use assets | 2,620 | 3,208 |
Intangibles, net | 365 | 377 |
Total assets | 40,993 | 57,519 |
Current liabilities: | ||
Accounts payable | 3,400 | 3,883 |
Accrued liabilities: | ||
Payroll costs and other taxes | 2,249 | 3,415 |
Other | 759 | 709 |
Deferred revenue | 5,709 | 11,829 |
Current maturities of notes payable and finance leases | 740 | 1,380 |
Current maturities of operating lease liabilities | 1,064 | 1,202 |
Total current liabilities | 13,921 | 22,418 |
Long-term liabilities: | ||
Notes payable and finance leases, net of current maturities | 1,408 | 1,289 |
Operating lease liabilities, net of current maturities | 1,862 | 2,363 |
Deferred tax liabilities, net | 15 | 15 |
Total long-term liabilities | 3,285 | 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, 30,906,777 and 30,812,329 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 309 | 308 |
Additional paid-in capital | 156,860 | 156,678 |
Accumulated deficit | (131,200) | (123,640) |
Accumulated other comprehensive loss, net | (2,182) | (1,912) |
Total stockholders' equity | 23,787 | 31,434 |
Total liabilities and stockholders' equity | $ 40,993 | $ 57,519 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 30,906,777 | 30,812,329 |
Common stock, shares outstanding | 30,906,777 | 30,812,329 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenues | $ 12,512 | $ 20,219 | $ 44,096 | $ 49,627 |
Operating expenses | ||||
Operating expenses | 12,685 | 19,906 | 35,027 | 43,688 |
General and administrative | 2,171 | 2,977 | 4,082 | 6,476 |
Severance expense | 86 | 86 | ||
Depreciation and amortization | 1,406 | 2,113 | 2,995 | 4,813 |
Total operating costs | 16,348 | 24,996 | 42,190 | 54,977 |
(Loss) income from operations | (3,836) | (4,777) | 1,906 | (5,350) |
Other income (expense): | ||||
Interest income | 105 | 136 | 218 | 244 |
Interest expense | (39) | (14) | (85) | (31) |
Other income (expense), net | 93 | 143 | 332 | 195 |
(Loss) income before income tax | (3,677) | (4,512) | 2,371 | (4,942) |
Current | 131 | (14) | (71) | (22) |
Deferred | 96 | 121 | ||
Income tax benefit (expense) | 131 | 82 | (71) | 99 |
Net (loss) income | (3,546) | (4,430) | 2,300 | (4,843) |
Other comprehensive (loss) income: | ||||
Net unrealized (loss) income on foreign exchange rate translation | (110) | 249 | (270) | 243 |
Comprehensive (loss) income | $ (3,656) | $ (4,181) | $ 2,030 | $ (4,600) |
Basic (loss) income per share of common stock (in dollars per share) | $ (0.12) | $ (0.18) | $ 0.07 | $ (0.19) |
Diluted (loss) income per share of common stock (in dollars per share) | $ (0.12) | $ (0.18) | $ 0.07 | $ (0.19) |
Weighted average equivalent common shares outstanding | 30,815,443 | 25,000,564 | 30,813,886 | 25,000,564 |
Weighted average equivalent common shares outstanding - assuming dilution | 30,815,443 | 25,000,564 | 30,813,886 | 25,000,564 |
Fee revenue | ||||
Operating revenues | $ 8,326 | $ 10,881 | $ 35,064 | $ 33,154 |
Operating expenses | ||||
Operating expenses | 8,499 | 10,568 | 25,995 | 27,215 |
Reimbursable revenue | ||||
Operating revenues | 4,186 | 9,338 | 9,032 | 16,473 |
Operating expenses | ||||
Operating expenses | $ 4,186 | $ 9,338 | $ 9,032 | $ 16,473 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,300 | $ (4,843) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 2,995 | 4,813 |
Operating lease cost | 576 | 521 |
Non-cash compensation | 259 | 0 |
Deferred income tax benefit | (121) | |
Gain on disposal of assets | (114) | (31) |
Remeasurement and other | (2) | |
Change in operating assets and liabilities: | ||
Decrease in accounts receivable | 8,192 | 1,495 |
Decrease in employee retention credit receivable | 3,035 | |
Decrease (increase) in prepaid expenses and other assets | 1,569 | (1,280) |
Decrease (Increase) in accounts payable | (139) | 2,037 |
Decrease in accrued liabilities | (1,101) | (1,037) |
Decrease in operating lease liabilities | (627) | (554) |
(Decrease) increase in deferred revenue | (6,120) | 1,718 |
Net cash provided by operating activities | 7,790 | 5,751 |
Cash flows from investing activities: | ||
Capital expenditures, net of non-cash capital expenditures summarized below | (1,488) | (2,021) |
Proceeds from disposal of assets | 234 | 31 |
Acquisition of short-term investments | (1,000) | |
Net cash used in investing activities | (1,254) | (2,990) |
Cash flows from financing activities: | ||
Principal payments on notes payable | (777) | (331) |
Principal payments on finance leases | (340) | (68) |
Tax withholdings related to stock based compensation awards | (76) | 0 |
Dividends paid | (9,860) | 0 |
Breckenridge cash distributions prior to acquisition | (3,055) | |
Net cash used in financing activities | (11,053) | (3,454) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (97) | 177 |
Net decrease in cash and cash equivalents and restricted cash | (4,614) | (516) |
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 | 11,158 | 23,087 |
Supplemental cash flow information: | ||
Cash paid for interest | 84 | 32 |
Cash paid for income taxes | 37 | 0 |
Non-cash operating, investing and financing activities: | ||
Decrease in accrued purchases of property and equipment | (332) | (605) |
Finance leases incurred | $ 613 | 800 |
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) | |
Breckenridge | ||
Non-cash operating, investing and financing activities: | ||
Deemed distribution of Breckenridge net assets not acquired | $ 2,329 |
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) Income | 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 distribution 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, 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) | (4,843) | |||||
Deemed distribution of Breckenridge net assets not acquired | (2,329) | |||||
Balance at end of period at Jun. 30, 2023 | $ 250 | 146,856 | (116,336) | (1,830) | 28,940 | |
Balance at end of period (in shares) at Jun. 30, 2023 | 25,000,564 | |||||
Balance at beginning of period at Mar. 31, 2023 | $ 250 | 146,856 | (111,906) | (2,079) | 33,121 | |
Balance at beginning of period (in shares) at Mar. 31, 2023 | 25,000,564 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (4,430) | (4,430) | ||||
Unrealized loss on foreign exchange rate translation | 249 | 249 | ||||
Balance at end of period at Jun. 30, 2023 | $ 250 | 146,856 | (116,336) | (1,830) | 28,940 | |
Balance at end of period (in shares) at Jun. 30, 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 | ||||
Unrealized loss on foreign exchange rate translation | (160) | (160) | ||||
Dividends declared | (9,860) | (9,860) | ||||
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 | |||||
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) | $ 2,300 | |||||
Balance at end of period at Jun. 30, 2024 | $ 309 | 156,860 | (131,200) | (2,182) | $ 23,787 | |
Balance at end of period (in shares) at Jun. 30, 2024 | 30,906,777 | 30,906,777 | ||||
Balance at beginning of period at Mar. 31, 2024 | $ 308 | 156,678 | (127,654) | (2,072) | $ 27,260 | |
Balance at beginning of period (in shares) at Mar. 31, 2024 | 30,812,329 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net Income (Loss) | (3,546) | (3,546) | ||||
Unrealized loss on foreign exchange rate translation | (110) | (110) | ||||
Issuance of common stock as compensation | $ 1 | 258 | 259 | |||
Issuance of common stock as compensation (in shares) | 133,850 | |||||
Shares exchanged for taxes on stock-based compensation | (76) | (76) | ||||
Shares exchanged for taxes on stock-based compensation (in shares) | (39,402) | |||||
Balance at end of period at Jun. 30, 2024 | $ 309 | $ 156,860 | $ (131,200) | $ (2,182) | $ 23,787 | |
Balance at end of period (in shares) at Jun. 30, 2024 | 30,906,777 | 30,906,777 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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. Dividends . 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 included in prepaid expenses and 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. Share-based compensation. 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 | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3. FAIR VALUE OF FINANCIAL INSTRUMENTS At June 30, 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 | 6 Months Ended |
Jun. 30, 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 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 June 30, 2024 Six Months Ended June 30, 2024 USA Operations Canada Operations Consolidated USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 8,321 $ 5 $ 8,326 $ 26,608 $ 8,456 $ 35,064 Reimbursable revenue 4,186 — 4,186 8,995 37 9,032 12,507 5 12,512 35,603 8,493 44,096 Operating costs: Fee operating expenses 7,846 653 8,499 21,025 4,970 25,995 Reimbursable operating expenses 4,186 — 4,186 8,995 37 9,032 Operating expenses 12,032 653 12,685 30,020 5,007 35,027 General and administrative 1,998 173 2,171 3,740 342 4,082 Severance expense 86 — 86 86 — 86 Depreciation and amortization 1,162 244 1,406 2,467 528 2,995 15,278 1,070 16,348 36,313 5,877 42,190 (Loss) income from operations (2,771) (1,065) (3,836) (710) 2,616 1,906 Other income (expense): Interest income 89 16 105 188 30 218 Interest expense (29) (10) (39) (65) (20) (85) Other income (expense) 112 (19) 93 357 (25) 332 (Loss) income before income tax (2,599) (1,078) (3,677) (230) 2,601 2,371 Income tax benefit (expense) 131 — 131 (71) — (71) Net (loss) income (2,468) (1,078) (3,546) (301) 2,601 2,300 Other comprehensive (loss) income: Net unrealized loss on foreign exchange rate translation — (110) (110) — (270) (270) Comprehensive (loss) income $ (2,468) $ (1,188) $ (3,656) $ (301) $ 2,331 $ 2,030 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 USA Operations Canada Operations Consolidated USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 10,780 $ 101 $ 10,881 $ 23,043 $ 10,111 $ 33,154 Reimbursable revenue 9,336 2 9,338 15,869 604 16,473 20,116 103 20,219 38,912 10,715 49,627 Operating costs: Fee operating expenses 9,643 925 10,568 19,287 7,928 27,215 Reimbursable operating expenses 9,336 2 9,338 15,869 604 16,473 Operating expenses 18,979 927 19,906 35,156 8,532 43,688 General and administrative 2,667 310 2,977 5,769 707 6,476 Severance expense — — — — — — Depreciation and amortization 1,528 585 2,113 3,646 1,167 4,813 23,174 1,822 24,996 44,571 10,406 54,977 (Loss) income from operations (3,058) (1,719) (4,777) (5,659) 309 (5,350) Other income (expense): Interest income 91 45 136 178 66 244 Interest expense (10) (4) (14) (22) (9) (31) Other income (expense) 101 42 143 150 45 195 (Loss) income before income tax (2,876) (1,636) (4,512) (5,353) 411 (4,942) Income tax benefit 82 — 82 99 — 99 Net (loss) income (2,794) (1,636) (4,430) (5,254) 411 (4,843) Other comprehensive (loss) income: Net unrealized income on foreign exchange rate translation — 249 249 — 243 243 Comprehensive (loss) income $ (2,794) $ (1,387) $ (4,181) $ (5,254) $ 654 $ (4,600) The following table presents the Company’s total assets (in thousands) disaggregated by operating segment: June 30, December 31, 2024 2023 Total Assets United States $ 33,774 $ 48,495 Canada 7,219 9,024 Total Assets $ 40,993 $ 57,519 The reconciliation of the Company’s Adjusted EBITDA to net income (loss), which is the most directly comparable GAAP financial measure, is provided in the following tables (in thousands): Three Months Ended June 30, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net loss $ (2,468) $ (1,078) $ (3,546) $ (2,794) $ (1,636) $ (4,430) Depreciation and amortization 1,162 244 1,406 1,528 585 2,113 Severance expense 86 — 86 — — — Interest income, net (60) (6) (66) (81) (41) (122) Income tax benefit (131) — (131) (82) — (82) Adjusted EBITDA $ (1,411) $ (840) $ (2,251) $ (1,429) $ (1,092) $ (2,521) Six Months Ended June 30, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net (loss) income $ (301) $ 2,601 $ 2,300 $ (5,254) $ 411 $ (4,843) Depreciation and amortization 2,467 528 2,995 3,646 1,167 4,813 Severance expense 86 — 86 — — — Interest income, net (123) (10) (133) (156) (57) (213) Income tax expense (benefit) 71 — 71 (99) — (99) Adjusted EBITDA $ 2,200 $ 3,119 $ 5,319 $ (1,863) $ 1,521 $ (342) |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 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 provided 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 were secured by a Certificate of Deposit with Dominion Bank for $5 million (the “Deposit”) in the Company’s collateral account. On May 2, 2024, the collateral deposit of $5 million was released and the Loan Agreement was terminated. Dominion Letters of Credit As of June 30, 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 June 30, 2024, the Company has one short-term note payable to a finance company for various insurance premiums totaling $133,000. As of December 31, 2023, the Company had one short-term note payable to a finance company for various insurance premiums totaling $910,000. In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Condensed Consolidated Balance Sheet as of June 30, 2024 and December 31, 2023, include finance leases of $2.0 million and $1.8 million, respectively. 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 June 30, 2024, and December 31, 2023: June 30, 2024 December 31, 2023 Notes payable to finance company for insurance Aggregate principal amount outstanding $ 133 $ 910 Interest rate 8.75% The aggregate maturities of finance leases as of June 30, 2024, are as follows (in thousands): July 2024 - June 2025 $ 607 July 2025 - June 2026 704 July 2026 - June 2027 569 July 2027 - June 2028 135 Obligations under finance leases $ 2,015 Interest rates on these leases range from 4.86% to 8.74%. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 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 June 30, 2024, are as follows (in thousands): Operating Leases Finance Leases July 2024 - June 2025 $ 1,190 $ 720 July 2025 - June 2026 1,067 775 July 2026 - June 2027 838 595 July 2027 - June 2028 56 138 Thereafter — — Total payments under lease agreements 3,151 2,228 Less imputed interest (225) (213) Total lease liabilities $ 2,926 $ 2,015 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2024 | |
NET INCOME (LOSS) PER SHARE | |
NET INCOME (LOSS) PER SHARE | 8. NET INCOME (LOSS) PER SHARE Basic (loss) income per share is computed by dividing the net (loss) income by the weighted average shares outstanding. Diluted (loss) income per share is computed by dividing the net (loss) income by the weighted average diluted shares outstanding. On May 6, 2024, a $0.32 per share special cash dividend on the Company’s common stock, that was 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. The computation of basic and diluted (loss) income per share (in thousands, except share and per share data) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net (loss) income $ (3,546) $ (4,430) $ 2,300 $ (4,843) Weighted average common shares outstanding Basic 30,815,443 25,000,564 30,813,886 25,000,564 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — — — Diluted 30,815,443 25,000,564 30,813,886 25,000,564 Basic (loss) income per share of common stock $ (0.12) $ (0.18) $ 0.07 $ (0.19) Diluted (loss) income per share of common stock $ (0.12) $ (0.18) $ 0.07 $ (0.19) The Company had a net loss for the three months ended June 30, 2024, and 2023, and for the six months ended June 30, 2023. 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 those periods. The Company had net income for the six months ended June 30, 2024, however due to stock valuation at June 30, 2024, any associated stock options, restricted stock unit awards and restricted stock awards were anti-dilutive and were excluded from weighted average shares used in determining the diluted income per share of common stock for that period. 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 three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Restricted stock units 3,187 — 1,593 — Convertible Note — 5,811,765 — 3,178,810 Total 3,187 5,811,765 1,593 3,178,810 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
INCOME TAXES | |
INCOME TAXES | 9 . INCOME TAXES For the three and six months ended June 30, 2024, the Company’s effective tax rates were 3.6% and 3.0%, respectively. The Company’s effective tax rates were 1.8% and 2.0% for the second quarter and first six months of 2023. 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 and six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2024 | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | 10. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION Historical financial information for Breckenridge was derived from Breckenridge’s unaudited financial statements. In the opinion of the Company’s management, the financial information of Breckenridge reflects all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The non-cash items associated with the Purchase Agreement (unaudited and in thousands) shown on the Condensed Consolidated Statements of Cash Flows consist of “Deemed distribution (contribution)” and “Acquisition of Breckenridge net assets” and are derived as follows: Deemed Distribution (Contribution) Six Months Ended June 30, 2023 Deemed distribution (contribution) of short-term investments $ 1,000 Deemed distribution (contribution) of accounts receivable 1,015 Deemed distribution (contribution) of prepaids and other 1 Deemed distribution (contribution) of land and buildings 514 Deemed (distribution) contribution of accounts payable (132) Deemed (distribution) contribution of accrued liabilities (69) Deemed (distribution) contribution of deferred revenue — Deemed distribution of Breckenridge net assets not acquired $ 2,329 Historical Carrying Value of Assets Acquired March 24, 2023 Accounts receivable, net $ 67 Prepaid expenses and other current assets 56 Property and equipment, net 1,322 Other accrued liabilities (16) Deferred revenue (94) Acquisition of Breckenridge net assets $ 1,335 Total consideration for the asset purchase (in thousands) is as follows: Consideration Paid March 24, 2023 Common stock issued $ 2,020 Note payable issued 9,880 Purchase price $ 11,900 Because the Transaction constitutes a transaction among entities under common control, the excess purchase price over the historical carrying value of the net assets acquired was recorded as a charge to additional paid in capital. The excess purchase price over the historical carrying value of the assets at the acquisition date (unaudited and in thousands) is as follows: Excess Purchase Price March 24, 2023 Purchase price $ 11,900 Historical carrying value of assets acquired (1,335) Excess purchase price $ 10,565 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 June 30, 2024 and 2023, included deferred costs incurred to fulfill contracts with customers of $3.7 million and $7.2 million, respectively. Deferred costs at June 30, 2024, compared to January 1, 2024 decreased primarily as a result of the completion of several projects during that six month period that had deferred fulfillment costs at January 1, 2024. Deferred costs at June 30, 2023 compared to January 1, 2023 increased primarily as a result of new projects for clients with significant deferred fulfillment costs at June 30, 2023. The amount of total deferred costs amortized for the six months ended June 30, 2024 and 2023 was $12.9 million and $17.6 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 June 30, 2024 and 2023 was $5.7 million and $9.1 million, respectively. Deferred revenue at June 30, 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 June 30, 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 six months ended June 30, 2024 and 2023 that was included in the contract liability balance at the beginning of 2024 and 2023 was $11.4 million and $6.9 million, respectively. Accounts Receivable (in thousands) Accounts receivable related to contracts with customers was $12.7 million and $8.0 million at January 1, 2024 and 2023, respectively. The accounts receivable balance at January 1, 2023 excluded a $3.0 million employee retention credit receivable. Accounts receivable related to contracts with customers was $4.4 million and $5.5 million at June 30, 2024 and 2023, respectively. Related Party Transactions For the six months ended June 30, 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 six months ended June 30, 2024, the Company received related party revenue of $14,000 for partial use of leased office space. For the six months ended June 30, 2023, the Company did not have any related party transactions. As of June 30, 2024, the Company had no outstanding related party accounts payable and no outstanding related party accounts receivable. For the six months ended June 30, 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 $6,000. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
SUBSEQUENT EVENTS. | |
SUBSEQUENT EVENTS | 11. SUBSEQUENT EVENTS None. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (3,546) | $ 5,846 | $ (4,430) | $ (413) | $ 2,300 | $ (4,843) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 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 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 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. |
Dividends | Dividends . |
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 included in prepaid expenses and 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. |
Stock-Based Compensation | Share-based compensation. |
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) | 6 Months Ended |
Jun. 30, 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 June 30, 2024 Six Months Ended June 30, 2024 USA Operations Canada Operations Consolidated USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 8,321 $ 5 $ 8,326 $ 26,608 $ 8,456 $ 35,064 Reimbursable revenue 4,186 — 4,186 8,995 37 9,032 12,507 5 12,512 35,603 8,493 44,096 Operating costs: Fee operating expenses 7,846 653 8,499 21,025 4,970 25,995 Reimbursable operating expenses 4,186 — 4,186 8,995 37 9,032 Operating expenses 12,032 653 12,685 30,020 5,007 35,027 General and administrative 1,998 173 2,171 3,740 342 4,082 Severance expense 86 — 86 86 — 86 Depreciation and amortization 1,162 244 1,406 2,467 528 2,995 15,278 1,070 16,348 36,313 5,877 42,190 (Loss) income from operations (2,771) (1,065) (3,836) (710) 2,616 1,906 Other income (expense): Interest income 89 16 105 188 30 218 Interest expense (29) (10) (39) (65) (20) (85) Other income (expense) 112 (19) 93 357 (25) 332 (Loss) income before income tax (2,599) (1,078) (3,677) (230) 2,601 2,371 Income tax benefit (expense) 131 — 131 (71) — (71) Net (loss) income (2,468) (1,078) (3,546) (301) 2,601 2,300 Other comprehensive (loss) income: Net unrealized loss on foreign exchange rate translation — (110) (110) — (270) (270) Comprehensive (loss) income $ (2,468) $ (1,188) $ (3,656) $ (301) $ 2,331 $ 2,030 Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 USA Operations Canada Operations Consolidated USA Operations Canada Operations Consolidated Operating revenues Fee revenue $ 10,780 $ 101 $ 10,881 $ 23,043 $ 10,111 $ 33,154 Reimbursable revenue 9,336 2 9,338 15,869 604 16,473 20,116 103 20,219 38,912 10,715 49,627 Operating costs: Fee operating expenses 9,643 925 10,568 19,287 7,928 27,215 Reimbursable operating expenses 9,336 2 9,338 15,869 604 16,473 Operating expenses 18,979 927 19,906 35,156 8,532 43,688 General and administrative 2,667 310 2,977 5,769 707 6,476 Severance expense — — — — — — Depreciation and amortization 1,528 585 2,113 3,646 1,167 4,813 23,174 1,822 24,996 44,571 10,406 54,977 (Loss) income from operations (3,058) (1,719) (4,777) (5,659) 309 (5,350) Other income (expense): Interest income 91 45 136 178 66 244 Interest expense (10) (4) (14) (22) (9) (31) Other income (expense) 101 42 143 150 45 195 (Loss) income before income tax (2,876) (1,636) (4,512) (5,353) 411 (4,942) Income tax benefit 82 — 82 99 — 99 Net (loss) income (2,794) (1,636) (4,430) (5,254) 411 (4,843) Other comprehensive (loss) income: Net unrealized income on foreign exchange rate translation — 249 249 — 243 243 Comprehensive (loss) income $ (2,794) $ (1,387) $ (4,181) $ (5,254) $ 654 $ (4,600) |
Schedule of total assets disaggregated by operating segment | The following table presents the Company’s total assets (in thousands) disaggregated by operating segment: June 30, December 31, 2024 2023 Total Assets United States $ 33,774 $ 48,495 Canada 7,219 9,024 Total Assets $ 40,993 $ 57,519 |
Schedule of reconciliation of the Company's Adjusted EBITDA to net income (loss) | Three Months Ended June 30, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net loss $ (2,468) $ (1,078) $ (3,546) $ (2,794) $ (1,636) $ (4,430) Depreciation and amortization 1,162 244 1,406 1,528 585 2,113 Severance expense 86 — 86 — — — Interest income, net (60) (6) (66) (81) (41) (122) Income tax benefit (131) — (131) (82) — (82) Adjusted EBITDA $ (1,411) $ (840) $ (2,251) $ (1,429) $ (1,092) $ (2,521) Six Months Ended June 30, 2024 US 2024 CA 2024 Consol. 2023 US 2023 CA 2023 Consol. Net (loss) income $ (301) $ 2,601 $ 2,300 $ (5,254) $ 411 $ (4,843) Depreciation and amortization 2,467 528 2,995 3,646 1,167 4,813 Severance expense 86 — 86 — — — Interest income, net (123) (10) (133) (156) (57) (213) Income tax expense (benefit) 71 — 71 (99) — (99) Adjusted EBITDA $ 2,200 $ 3,119 $ 5,319 $ (1,863) $ 1,521 $ (342) |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2024, and December 31, 2023: June 30, 2024 December 31, 2023 Notes payable to finance company for insurance Aggregate principal amount outstanding $ 133 $ 910 Interest rate 8.75% |
Schedule of aggregate maturities of finance leases | The aggregate maturities of finance leases as of June 30, 2024, are as follows (in thousands): July 2024 - June 2025 $ 607 July 2025 - June 2026 704 July 2026 - June 2027 569 July 2027 - June 2028 135 Obligations under finance leases $ 2,015 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
LEASES | |
Schedule of maturities of lease liabilities - Operating Leases | Maturities of lease liabilities as of June 30, 2024, are as follows (in thousands): Operating Leases Finance Leases July 2024 - June 2025 $ 1,190 $ 720 July 2025 - June 2026 1,067 775 July 2026 - June 2027 838 595 July 2027 - June 2028 56 138 Thereafter — — Total payments under lease agreements 3,151 2,228 Less imputed interest (225) (213) Total lease liabilities $ 2,926 $ 2,015 |
Schedule of maturities of lease liabilities - Finance Leases | Maturities of lease liabilities as of June 30, 2024, are as follows (in thousands): Operating Leases Finance Leases July 2024 - June 2025 $ 1,190 $ 720 July 2025 - June 2026 1,067 775 July 2026 - June 2027 838 595 July 2027 - June 2028 56 138 Thereafter — — Total payments under lease agreements 3,151 2,228 Less imputed interest (225) (213) Total lease liabilities $ 2,926 $ 2,015 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
NET INCOME (LOSS) PER SHARE | |
Schedule of computation of basic and diluted income (loss) per share | The computation of basic and diluted (loss) income per share (in thousands, except share and per share data) was as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net (loss) income $ (3,546) $ (4,430) $ 2,300 $ (4,843) Weighted average common shares outstanding Basic 30,815,443 25,000,564 30,813,886 25,000,564 Dilutive common stock options, restricted stock unit awards and restricted stock awards — — — — Diluted 30,815,443 25,000,564 30,813,886 25,000,564 Basic (loss) income per share of common stock $ (0.12) $ (0.18) $ 0.07 $ (0.19) Diluted (loss) income per share of common stock $ (0.12) $ (0.18) $ 0.07 $ (0.19) |
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 per share of common stock | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Restricted stock units 3,187 — 1,593 — Convertible Note — 5,811,765 — 3,178,810 Total 3,187 5,811,765 1,593 3,178,810 |
SUPPLEMENTAL CONSOLIDATED FIN_2
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION | |
Schedule of non-cash items associated with the Purchase Agreement | Historical financial information for Breckenridge was derived from Breckenridge’s unaudited financial statements. In the opinion of the Company’s management, the financial information of Breckenridge reflects all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The non-cash items associated with the Purchase Agreement (unaudited and in thousands) shown on the Condensed Consolidated Statements of Cash Flows consist of “Deemed distribution (contribution)” and “Acquisition of Breckenridge net assets” and are derived as follows: Deemed Distribution (Contribution) Six Months Ended June 30, 2023 Deemed distribution (contribution) of short-term investments $ 1,000 Deemed distribution (contribution) of accounts receivable 1,015 Deemed distribution (contribution) of prepaids and other 1 Deemed distribution (contribution) of land and buildings 514 Deemed (distribution) contribution of accounts payable (132) Deemed (distribution) contribution of accrued liabilities (69) Deemed (distribution) contribution of deferred revenue — Deemed distribution of Breckenridge net assets not acquired $ 2,329 Historical Carrying Value of Assets Acquired March 24, 2023 Accounts receivable, net $ 67 Prepaid expenses and other current assets 56 Property and equipment, net 1,322 Other accrued liabilities (16) Deferred revenue (94) Acquisition of Breckenridge net assets $ 1,335 |
Schedule of consideration paid | Total consideration for the asset purchase (in thousands) is as follows: Consideration Paid March 24, 2023 Common stock issued $ 2,020 Note payable issued 9,880 Purchase price $ 11,900 |
Schedule of excess purchase price | Because the Transaction constitutes a transaction among entities under common control, the excess purchase price over the historical carrying value of the net assets acquired was recorded as a charge to additional paid in capital. The excess purchase price over the historical carrying value of the assets at the acquisition date (unaudited and in thousands) is as follows: Excess Purchase Price March 24, 2023 Purchase price $ 11,900 Historical carrying value of assets acquired (1,335) Excess purchase price $ 10,565 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||||
Sep. 13, 2023 | Mar. 24, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Threshold period of past due (in days) | 90 days | ||||||||||
Allowance for doubtful accounts | $ 250,000 | $ 250,000 | $ 250,000 | ||||||||
Employee retention credit receivable | $ 3,000,000 | ||||||||||
Maximum original expected duration of cancelable service contracts (in years) | 1 year | ||||||||||
Granted (in shares) | 230,550 | ||||||||||
Aggregate grant date fair value | 446,000 | $ 446,000 | |||||||||
Period over which unrecognized compensation expense is expected to be recognized | 12 months | ||||||||||
Net Income (Loss) | (3,546,000) | $ 5,846,000 | $ (4,430,000) | $ (413,000) | $ 2,300,000 | $ (4,843,000) | |||||
Cash | 11,158,000 | $ 23,087,000 | 11,158,000 | $ 23,087,000 | $ 15,772,000 | $ 23,603,000 | |||||
Severance expense | 86,000 | 86,000 | |||||||||
Working capital | 9,000,000 | 9,000,000 | |||||||||
Operating expenses | |||||||||||
Recognized expense related to the awards | 215,000 | 215,000 | |||||||||
General and administrative expenses | |||||||||||
Recognized expense related to the awards | $ 44,000 | $ 44,000 | |||||||||
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) | 6 Months Ended |
Jun. 30, 2024 segment | |
OPERATING SEGMENTS | |
Number of reportable segments | 2 |
OPERATING SEGMENTS - Income sta
OPERATING SEGMENTS - Income statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenues | ||||||
Operating revenues | $ 12,512 | $ 20,219 | $ 44,096 | $ 49,627 | ||
Operating costs: | ||||||
Operating expenses | 12,685 | 19,906 | 35,027 | 43,688 | ||
General and administrative | 2,171 | 2,977 | 4,082 | 6,476 | ||
Severance expense | 86 | 86 | ||||
Depreciation and amortization | 1,406 | 2,113 | 2,995 | 4,813 | ||
Total operating costs | 16,348 | 24,996 | 42,190 | 54,977 | ||
(Loss) income from operations | (3,836) | (4,777) | 1,906 | (5,350) | ||
Other income (expense): | ||||||
Interest income | 105 | 136 | 218 | 244 | ||
Interest expense | (39) | (14) | (85) | (31) | ||
Other income (expense) | 93 | 143 | 332 | 195 | ||
(Loss) income before income tax | (3,677) | (4,512) | 2,371 | (4,942) | ||
Income tax benefit (expense) | 131 | 82 | (71) | 99 | ||
Net (loss) income | (3,546) | $ 5,846 | (4,430) | $ (413) | 2,300 | (4,843) |
Other comprehensive (loss) income: | ||||||
Net unrealized income (loss) on foreign exchange rate translation | (110) | 249 | (270) | 243 | ||
Comprehensive (loss) income | (3,656) | (4,181) | 2,030 | (4,600) | ||
Fee revenue | ||||||
Operating revenues | ||||||
Operating revenues | 8,326 | 10,881 | 35,064 | 33,154 | ||
Operating costs: | ||||||
Operating expenses | 8,499 | 10,568 | 25,995 | 27,215 | ||
Reimbursable revenue | ||||||
Operating revenues | ||||||
Operating revenues | 4,186 | 9,338 | 9,032 | 16,473 | ||
Operating costs: | ||||||
Operating expenses | 4,186 | 9,338 | 9,032 | 16,473 | ||
Operating segment | ||||||
Operating revenues | ||||||
Operating revenues | 20,219 | 49,627 | ||||
Operating costs: | ||||||
Operating expenses | 19,906 | 43,688 | ||||
General and administrative | 2,977 | 6,476 | ||||
Depreciation and amortization | 2,113 | 4,813 | ||||
Total operating costs | 24,996 | 54,977 | ||||
(Loss) income from operations | (4,777) | (5,350) | ||||
Other income (expense): | ||||||
Interest income | 136 | 244 | ||||
Interest expense | (14) | (31) | ||||
Other income (expense) | 143 | 195 | ||||
(Loss) income before income tax | (4,512) | (4,942) | ||||
Income tax benefit (expense) | 82 | 99 | ||||
Net (loss) income | (4,430) | (4,843) | ||||
Other comprehensive (loss) income: | ||||||
Net unrealized income (loss) on foreign exchange rate translation | 249 | 243 | ||||
Comprehensive (loss) income | (4,181) | (4,600) | ||||
Operating segment | Fee revenue | ||||||
Operating revenues | ||||||
Operating revenues | 10,881 | 33,154 | ||||
Operating costs: | ||||||
Operating expenses | 10,568 | 27,215 | ||||
Operating segment | Reimbursable revenue | ||||||
Operating revenues | ||||||
Operating revenues | 9,338 | 16,473 | ||||
Operating costs: | ||||||
Operating expenses | 9,338 | 16,473 | ||||
Operating segment | USA Operations | ||||||
Operating revenues | ||||||
Operating revenues | 12,507 | 20,116 | 35,603 | 38,912 | ||
Operating costs: | ||||||
Operating expenses | 12,032 | 18,979 | 30,020 | 35,156 | ||
General and administrative | 1,998 | 2,667 | 3,740 | 5,769 | ||
Severance expense | 86 | 86 | ||||
Depreciation and amortization | 1,162 | 1,528 | 2,467 | 3,646 | ||
Total operating costs | 15,278 | 23,174 | 36,313 | 44,571 | ||
(Loss) income from operations | (2,771) | (3,058) | (710) | (5,659) | ||
Other income (expense): | ||||||
Interest income | 89 | 91 | 188 | 178 | ||
Interest expense | (29) | (10) | (65) | (22) | ||
Other income (expense) | 112 | 101 | 357 | 150 | ||
(Loss) income before income tax | (2,599) | (2,876) | (230) | (5,353) | ||
Income tax benefit (expense) | 131 | 82 | (71) | 99 | ||
Net (loss) income | (2,468) | (2,794) | (301) | (5,254) | ||
Other comprehensive (loss) income: | ||||||
Comprehensive (loss) income | (2,468) | (2,794) | (301) | (5,254) | ||
Operating segment | USA Operations | Fee revenue | ||||||
Operating revenues | ||||||
Operating revenues | 8,321 | 10,780 | 26,608 | 23,043 | ||
Operating costs: | ||||||
Operating expenses | 7,846 | 9,643 | 21,025 | 19,287 | ||
Operating segment | USA Operations | Reimbursable revenue | ||||||
Operating revenues | ||||||
Operating revenues | 4,186 | 9,336 | 8,995 | 15,869 | ||
Operating costs: | ||||||
Operating expenses | 4,186 | 9,336 | 8,995 | 15,869 | ||
Operating segment | Canada Operations | ||||||
Operating revenues | ||||||
Operating revenues | 5 | 103 | 8,493 | 10,715 | ||
Operating costs: | ||||||
Operating expenses | 653 | 927 | 5,007 | 8,532 | ||
General and administrative | 173 | 310 | 342 | 707 | ||
Depreciation and amortization | 244 | 585 | 528 | 1,167 | ||
Total operating costs | 1,070 | 1,822 | 5,877 | 10,406 | ||
(Loss) income from operations | (1,065) | (1,719) | 2,616 | 309 | ||
Other income (expense): | ||||||
Interest income | 16 | 45 | 30 | 66 | ||
Interest expense | (10) | (4) | (20) | (9) | ||
Other income (expense) | (19) | 42 | (25) | 45 | ||
(Loss) income before income tax | (1,078) | (1,636) | 2,601 | 411 | ||
Net (loss) income | (1,078) | (1,636) | 2,601 | 411 | ||
Other comprehensive (loss) income: | ||||||
Net unrealized income (loss) on foreign exchange rate translation | (110) | 249 | (270) | 243 | ||
Comprehensive (loss) income | (1,188) | (1,387) | 2,331 | 654 | ||
Operating segment | Canada Operations | Fee revenue | ||||||
Operating revenues | ||||||
Operating revenues | 5 | 101 | 8,456 | 10,111 | ||
Operating costs: | ||||||
Operating expenses | $ 653 | 925 | 4,970 | 7,928 | ||
Operating segment | Canada Operations | Reimbursable revenue | ||||||
Operating revenues | ||||||
Operating revenues | 2 | 37 | 604 | |||
Operating costs: | ||||||
Operating expenses | $ 2 | $ 37 | $ 604 |
OPERATING SEGMENTS - Total asse
OPERATING SEGMENTS - Total assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Total assets by operating segment | ||
Total Assets | $ 40,993 | $ 57,519 |
Operating segment | United States | ||
Total assets by operating segment | ||
Total Assets | 33,774 | 48,495 |
Operating segment | Canada | ||
Total assets by operating segment | ||
Total Assets | $ 7,219 | $ 9,024 |
OPERATING SEGMENTS - Reconcilia
OPERATING SEGMENTS - Reconciliation of EBITDA to net income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reconciliation | ||||||
Net Income (Loss) | $ (3,546) | $ 5,846 | $ (4,430) | $ (413) | $ 2,300 | $ (4,843) |
Depreciation and amortization | 1,406 | 2,113 | 2,995 | 4,813 | ||
Severance expense | 86 | 86 | ||||
Interest income, net | (66) | (122) | (133) | (213) | ||
Income tax expense (benefit) | (131) | (82) | 71 | (99) | ||
Adjusted EBITDA | (2,251) | (2,521) | 5,319 | (342) | ||
Operating segment | ||||||
Reconciliation | ||||||
Net Income (Loss) | (4,430) | (4,843) | ||||
Depreciation and amortization | 2,113 | 4,813 | ||||
Income tax expense (benefit) | (82) | (99) | ||||
Operating segment | United States | ||||||
Reconciliation | ||||||
Net Income (Loss) | (2,468) | (2,794) | (301) | (5,254) | ||
Depreciation and amortization | 1,162 | 1,528 | 2,467 | 3,646 | ||
Severance expense | 86 | 86 | ||||
Interest income, net | (60) | (81) | (123) | (156) | ||
Income tax expense (benefit) | (131) | (82) | 71 | (99) | ||
Adjusted EBITDA | (1,411) | (1,429) | 2,200 | (1,863) | ||
Operating segment | Canada | ||||||
Reconciliation | ||||||
Net Income (Loss) | (1,078) | (1,636) | 2,601 | 411 | ||
Depreciation and amortization | 244 | 585 | 528 | 1,167 | ||
Interest income, net | (6) | (41) | (10) | (57) | ||
Adjusted EBITDA | $ (840) | $ (1,092) | $ 3,119 | $ 1,521 |
DEBT (Details)
DEBT (Details) | Jun. 30, 2024 USD ($) item | May 02, 2024 USD ($) | Dec. 31, 2023 USD ($) item | Sep. 30, 2023 USD ($) |
DEBT | ||||
Deposit | $ 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 | Long-term Debt and Capital Lease Obligations, Long-term Debt and Capital Lease Obligations, Current | ||
Finance lease | $ 2,015,000 | $ 1,800,000 | ||
Dominion Loan Agreement | ||||
DEBT | ||||
Maximum borrowing capacity | $ 5,000,000 | |||
Deposit | $ 5,000,000 | |||
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 | 1 | ||
Aggregate principal amount outstanding | $ 133,000 | $ 910,000 |
DEBT - Aggregate principal amou
DEBT - Aggregate principal amount and interest rates (Details) - Notes payable to finance companies for insurance - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
DEBT | ||
Aggregate principal amount outstanding | $ 133,000 | $ 910,000 |
Debt Instrument, Interest Rate, Effective Percentage | 8.75% | 8.75% |
DEBT - Maturities (Details)
DEBT - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Aggregate maturities of finance leases | ||
July 2024 - June 2025 | $ 607 | |
July 2025 - June 2026 | 704 | |
July 2026 - June 2027 | 569 | |
July 2027 - June 2028 | 135 | |
Obligations under finance leases | $ 2,015 | $ 1,800 |
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) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
July 2024 - June 2025 | $ 1,190 | |
July 2025 - June 2026 | 1,067 | |
July 2026 - June 2027 | 838 | |
July 2027 - June 2028 | 56 | |
Total payments under lease agreements | 3,151 | |
Less imputed interest | (225) | |
Total lease liabilities | 2,926 | |
Finance Leases | ||
July 2024 - June 2025 | 720 | |
July 2025 - June 2026 | 775 | |
July 2026 - June 2027 | 595 | |
July 2027 - June 2028 | 138 | |
Total payments under lease agreements | 2,228 | |
Less imputed interest | (213) | |
Total lease liabilities | $ 2,015 | $ 1,800 |
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 | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Aggregate payment of special cash dividend | $ 9,860 | $ 0 | ||||
Net Income (Loss) | $ (3,546) | $ 5,846 | $ (4,430) | $ (413) | $ 2,300 | $ (4,843) |
Weighted average common shares outstanding | ||||||
Basic (in shares) | 30,815,443 | 25,000,564 | 30,813,886 | 25,000,564 | ||
Diluted (in shares) | 30,815,443 | 25,000,564 | 30,813,886 | 25,000,564 | ||
Basic (loss) income per share of common stock (in dollars per share) | $ (0.12) | $ (0.18) | $ 0.07 | $ (0.19) | ||
Diluted (loss) income per share of common stock (in dollars per share) | $ (0.12) | $ (0.18) | $ 0.07 | $ (0.19) | ||
Special cash dividend, 2024 Q2 | ||||||
Dividends, date paid | May 06, 2024 | |||||
Cash dividend declared per share of common stock | $ 0.32 | |||||
Dividends, date declared | Mar. 28, 2024 | |||||
Dividends, date of record | Apr. 22, 2024 | |||||
Aggregate payment of special cash dividend | $ 9,900 |
NET INCOME (LOSS) PER SHARE - A
NET INCOME (LOSS) PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Anti-dilutive securities excluded from calculation of earnings per share | ||||
Number of securities excluded from calculation | 3,187 | 5,811,765 | 1,593 | 3,178,810 |
Convertible Note | ||||
Anti-dilutive securities excluded from calculation of earnings per share | ||||
Number of securities excluded from calculation | 5,811,765 | 3,178,810 | ||
Restricted stock units | ||||
Anti-dilutive securities excluded from calculation of earnings per share | ||||
Number of securities excluded from calculation | 3,187 | 1,593 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INCOME TAXES | ||||
Effective tax rate (as percent) | 3.60% | 1.80% | 3% | 2% |
SUPPLEMENTAL CONSOLIDATED FIN_3
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Non-cash asset purchase items (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Jun. 30, 2023 | |
Asset Acquisition | ||
Deemed distribution of Breckenridge net assets not acquired | $ 2,329 | $ 2,329 |
Breckenridge | ||
Asset Acquisition | ||
Deemed distribution (contribution) of short-term investments | 1,000 | |
Deemed distribution (contribution) of accounts receivable | 1,015 | |
Deemed distribution (contribution) of prepaids and other | 1 | |
Deemed distribution (contribution) of land and buildings | 514 | |
Deemed (distribution) contribution of accounts payable | (132) | |
Deemed (distribution) contribution of accrued liabilities | (69) | |
Deemed distribution of Breckenridge net assets not acquired | $ 2,329 |
SUPPLEMENTAL CONSOLIDATED FIN_4
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Historical Carrying Value of Assets Acquired (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jan. 01, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 24, 2023 | Jan. 01, 2023 |
Asset Acquisition | ||||||
Accounts receivable, net | $ 4,424 | $ 12,700 | $ 12,735 | $ 5,500 | $ 8,000 | |
Prepaid expenses and other current assets | 7,079 | 8,654 | ||||
Property and equipment, net | 15,082 | 16,508 | ||||
Other accrued liabilities | (759) | (709) | ||||
Deferred revenue | $ (5,709) | $ (11,800) | $ (11,829) | (9,100) | $ (7,400) | |
Acquisition of Breckenridge net assets | $ 1,335 | |||||
Breckenridge | ||||||
Asset Acquisition | ||||||
Accounts receivable, net | $ 67 | |||||
Prepaid expenses and other current assets | 56 | |||||
Property and equipment, net | 1,322 | |||||
Other accrued liabilities | (16) | |||||
Deferred revenue | (94) | |||||
Acquisition of Breckenridge net assets | $ 1,335 |
SUPPLEMENTAL CONSOLIDATED FIN_5
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Consideration Paid (Details) - Breckenridge $ in Thousands | Mar. 24, 2023 USD ($) |
Asset Acquisition | |
Common stock issued | $ 2,020 |
Note payable issued | 9,880 |
Purchase price | $ 11,900 |
SUPPLEMENTAL CONSOLIDATED FIN_6
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Excess Purchase Price (Details) - USD ($) $ in Thousands | Mar. 24, 2023 | Jun. 30, 2023 |
Asset Acquisition | ||
Historical carrying value of assets acquired | $ (1,335) | |
Breckenridge | ||
Asset Acquisition | ||
Purchase price | $ 11,900 | |
Historical carrying value of assets acquired | (1,335) | |
Excess purchase price | $ 10,565 |
SUPPLEMENTAL CONSOLIDATED FIN_7
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Deferred Costs, Deferred Revenue and Accounts Receivable (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jan. 01, 2024 | Dec. 31, 2023 | Jan. 01, 2023 | |
Deferred costs | $ 4,300 | $ 5,400 | |||
Total deferred costs amortized | $ 12,900 | $ 17,600 | |||
Deferred revenue | 5,709 | 9,100 | 11,800 | $ 11,829 | 7,400 |
Revenue recognized | 11,400 | 6,900 | |||
Accounts receivable, net | 4,424 | 5,500 | $ 12,700 | $ 12,735 | 8,000 |
Employee retention credit receivable | $ 3,000 | ||||
Prepaid expenses and other current assets | |||||
Deferred costs | $ 3,700 | $ 7,200 |
SUPPLEMENTAL CONSOLIDATED FIN_8
SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Related Party Transactions (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jan. 01, 2024 | Dec. 31, 2023 | Jan. 01, 2023 | |
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 106,000 | ||||
Revenue from use of leased office space | 14,000 | ||||
Accounts payable | 3,400,000 | $ 3,883,000 | |||
Accounts receivable, net | 4,424,000 | $ 5,500,000 | $ 12,700,000 | $ 12,735,000 | $ 8,000,000 |
Trucking charges | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 97,000 | ||||
Client hosting expenses | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 9,000 | ||||
Wilks Brothers, LLC | Dawson Geophysical Company | |||||
Related Party Transaction [Line Items] | |||||
Percentage of common stock owned | 80% | ||||
Breckenridge | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 110,000 | ||||
Breckenridge | Trucking charges | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 60,000 | ||||
Breckenridge | Management charges | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | 44,000 | ||||
Breckenridge | Payroll administration charges | |||||
Related Party Transaction [Line Items] | |||||
Related party expenses | $ 6,000 | ||||
Related party | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | $ 0 | ||||
Accounts receivable, net | $ 0 |