View Filing Data

June 30, 2020

December 31, 2019

Notes payable to finance company for insurance

Aggregate principal amount outstanding

Interest rate

4.05% - 4.99%

4.05% - 4.99%

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-32472
Entity Registrant Name	DAWSON GEOPHYSICAL COMPANY
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-2095844
Entity Address, Address Line One	508 West Wall, Suite 800
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	432
Local Phone Number	684-3000
Title of 12(b) Security	Common Stock, $0.01 par value
Security Exchange Name	NASDAQ
Trading Symbol	DWSN
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,350,590
Entity Central Index Key	0000799165
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 29,478	$ 26,271
Restricted cash	5,000	5,000
Short-term investments	2,350	2,350
Accounts receivable, net	26,600	24,356
Current maturities of notes receivable	1,434	66
Prepaid expenses and other current assets	4,700	7,575
Total current assets	69,562	65,618
Property and equipment, net	46,396	53,549
Right-of-use assets	5,968	6,605
Notes receivable, net of current maturities		1,394
Intangibles, net	367	385
Long-term deferred tax assets, net		57
Total assets	122,293	127,608
Current liabilities:
Accounts payable	3,260	3,952
Accrued liabilities:
Payroll costs and other taxes	1,978	1,963
Other	2,233	3,599
Deferred revenue	1,159	3,481
Current maturities of notes payable and finance leases	1,562	4,062
Current maturities of operating lease liabilities	1,106	1,200
Total current liabilities	11,298	18,257
Long-term liabilities:
Notes payable and finance leases, net of current maturities	67	96
Operating lease liabilities, net of current maturities	5,386	5,940
Deferred tax liabilities, net	22
Other accrued liabilities		150
Total long-term liabilities	5,475	6,186
Operating commitments and contingencies
Stockholders' equity:
Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding
Common stock-par value $0.01 per share; 35,000,000 shares authorized, 23,399,035 and 23,335,855 shares issued, and 23,350,590 and 23,287,410 shares outstanding at June 30, 2020 and December 31, 2019, respectively	234	233
Additional paid-in capital	154,691	154,235
Retained deficit	(47,238)	(49,731)
Treasury stock, at cost; 48,445 shares
Accumulated other comprehensive loss, net	(2,167)	(1,572)
Total stockholders' equity	105,520	103,165
Total liabilities and stockholders' equity	$ 122,293	$ 127,608

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Operating revenues	$ 29,499	$ 24,076	$ 68,478	$ 75,240
Operating costs:
Operating expenses	19,732	25,324	48,748	66,180
General and administrative	4,261	5,049	7,935	9,593
Depreciation and amortization	4,383	5,325	9,287	11,406
Total cost and expenses	28,376	35,698	65,970	87,179
Income (loss) from operations	1,123	(11,622)	2,508	(11,939)
Other income (expense):
Interest income	115	151	220	293
Interest expense	(30)	(122)	(70)	(280)
Other income (expense), net	293	226	(165)	422
Income (loss) before income tax	1,501	(11,367)	2,493	(11,504)
Income tax (expense) benefit	(1)	121		121
Net income (loss)	1,500	(11,246)	2,493	(11,383)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation, net	604	174	(595)	383
Comprehensive income (loss)	$ 2,104	$ (11,072)	$ 1,898	$ (11,000)
Basic income (loss) per share of common stock	$ 0.06	$ (0.49)	$ 0.11	$ (0.49)
Diluted income (loss) per share of common stock	$ 0.06	$ (0.49)	$ 0.11	$ (0.49)
Weighted average equivalent common shares outstanding	23,339,644	23,176,934	23,313,383	23,117,571
Weighted average equivalent common shares outstanding - assuming dilution	23,548,253	23,176,934	23,500,109	23,117,571

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ 2,493	$ (11,383)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	9,287	11,406
Operating lease cost	605	610
Non-cash compensation	474	664
Deferred income tax expense (benefit)	79	(131)
Change in other accrued long-term liabilities	(150)
Loss (gain) on disposal of assets	1	(73)
Remeasurement and other	(14)	(191)
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable	(2,249)	8,802
Decrease in prepaid expenses and other assets	3,304	3,775
Decrease in accounts payable	(600)	(635)
(Decrease) increase in accrued liabilities	(1,319)	1,747
Decrease in operating lease liabilities	(613)	(559)
Decrease in deferred revenue	(2,322)	(1,963)
Net cash provided by operating activities	8,976	12,069
Cash flows from investing activities:
Capital expenditures, net of non-cash capital expenditures summarized below	(2,764)	(3,057)
Proceeds from maturity of short-term investments		18
Acquisition of short-term investments		(18)
Proceeds from disposal of assets	193	223
Proceeds from notes receivable	26	25
Net cash used in investing activities	(2,545)	(2,809)
Cash flows from financing activities:
Proceeds from notes payable	6,374
Principal payments on notes payable	(7,842)	(2,331)
Principal payments on finance leases	(1,474)	(1,407)
Tax withholdings related to stock-based compensation awards	(17)	(235)
Net cash used in financing activities	(2,959)	(3,973)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	(265)	262
Net increase in cash and cash equivalents and restricted cash	3,207	5,549
Cash and cash equivalents and restricted cash at beginning of period	31,271	28,729
Cash and cash equivalents and restricted cash at end of period	34,478	34,278
Supplemental cash flow information:
Cash paid for interest	77	274
Cash paid for income taxes		14
Cash received for income taxes	206	55
Non-cash operating, investing and financing activities:
Decrease in accrued purchases of property and equipment	61	899
Finance leases incurred		40
Increase in right-of-use assets and operating lease liabilities		8,226
Decrease in right-of-use assets for accrued rent		(497)
Increase in right-of-use assets for prepaid rent		14
Financed insurance premiums	$ 434	$ 337

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Deficit	Accumulated Other Comprehensive (Loss) Income	Total
Balance at beginning of period at Dec. 31, 2018	$ 230	$ 153,268	$ (34,518)	$ (1,964)	$ 117,016
Balance at beginning of period (in shares) at Dec. 31, 2018	23,018,441
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(137)		(137)
Unrealized income (loss) on foreign exchange rate translation				269
Income tax expense (benefit)				(60)
Other comprehensive income (loss)				209	209
Issuance of common stock under stock compensation plans	$ 2	(2)
Issuance of common stock under stock compensation plans (in shares)	229,459
Stock-based compensation expense		297			297
Issuance of common stock as compensation		73			73
Issuance of common stock as compensation (in shares)	24,785
Shares exchanged for taxes on stock-based compensation		(206)			(206)
Shares exchanged for taxes on stock-based compensation (in shares)	(53,201)
Balance at end of period at Mar. 31, 2019	$ 232	153,430	(34,655)	(1,755)	117,252
Balance at end of period (in shares) at Mar. 31, 2019	23,219,484
Balance at beginning of period at Dec. 31, 2018	$ 230	153,268	(34,518)	(1,964)	117,016
Balance at beginning of period (in shares) at Dec. 31, 2018	23,018,441
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(11,383)
Balance at end of period at Jun. 30, 2019	$ 233	153,694	(45,901)	(1,581)	106,445
Balance at end of period (in shares) at Jun. 30, 2019	23,270,100
Balance at beginning of period at Mar. 31, 2019	$ 232	153,430	(34,655)	(1,755)	117,252
Balance at beginning of period (in shares) at Mar. 31, 2019	23,219,484
Increase (Decrease) in Stockholders' Equity
Net income (loss)			(11,246)		(11,246)
Unrealized income (loss) on foreign exchange rate translation				224
Income tax expense (benefit)				(50)
Other comprehensive income (loss)				174	174
Issuance of common stock under stock compensation plans (in shares)	34,000
Stock-based compensation expense		221			221
Issuance of common stock as compensation	$ 1	73			74
Issuance of common stock as compensation (in shares)	29,016
Shares exchanged for taxes on stock-based compensation		(30)			(30)
Shares exchanged for taxes on stock-based compensation (in shares)	(12,400)
Balance at end of period at Jun. 30, 2019	$ 233	153,694	(45,901)	(1,581)	106,445
Balance at end of period (in shares) at Jun. 30, 2019	23,270,100
Balance at beginning of period at Dec. 31, 2019	$ 233	154,235	(49,731)	(1,572)	$ 103,165
Balance at beginning of period (in shares) at Dec. 31, 2019	23,335,855				23,287,410
Increase (Decrease) in Stockholders' Equity
Net income (loss)			993		$ 993
Unrealized income (loss) on foreign exchange rate translation				(1,199)
Other comprehensive income (loss)				(1,199)	(1,199)
Stock-based compensation expense		203			203
Balance at end of period at Mar. 31, 2020	$ 233	154,438	(48,738)	(2,771)	103,162
Balance at end of period (in shares) at Mar. 31, 2020	23,335,855
Balance at beginning of period at Dec. 31, 2019	$ 233	154,235	(49,731)	(1,572)	$ 103,165
Balance at beginning of period (in shares) at Dec. 31, 2019	23,335,855				23,287,410
Increase (Decrease) in Stockholders' Equity
Net income (loss)					$ 2,493
Balance at end of period at Jun. 30, 2020	$ 234	154,691	(47,238)	(2,167)	$ 105,520
Balance at end of period (in shares) at Jun. 30, 2020	23,399,035				23,350,590
Balance at beginning of period at Mar. 31, 2020	$ 233	154,438	(48,738)	(2,771)	$ 103,162
Balance at beginning of period (in shares) at Mar. 31, 2020	23,335,855
Increase (Decrease) in Stockholders' Equity
Net income (loss)			1,500		1,500
Unrealized income (loss) on foreign exchange rate translation				604
Other comprehensive income (loss)				604	604
Issuance of common stock under stock compensation plans	$ 1	(1)
Issuance of common stock under stock compensation plans (in shares)	78,600
Stock-based compensation expense		271			271
Shares exchanged for taxes on stock-based compensation		(17)			(17)
Shares exchanged for taxes on stock-based compensation (in shares)	(15,420)
Balance at end of period at Jun. 30, 2020	$ 234	$ 154,691	$ (47,238)	$ (2,167)	$ 105,520
Balance at end of period (in shares) at Jun. 30, 2020	23,399,035				23,350,590

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of the Company. Intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed consolidated financial statements have been reclassified to conform to the current period’s presentation.

These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the U.S. for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the U.S. have been omitted.

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

Significant Accounting Policies

Principles of Consolidation. The condensed consolidated financial statements for the three and six months ended June 30, 2020 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Eagle Canada, Inc., Dawson Seismic Services Holdings, Inc., Eagle Canada Seismic Services ULC and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

Allowance for Doubtful Accounts. Management prepares its allowance for doubtful accounts receivable based on our current estimate of expected credit losses by review of its past-due accounts, its past experience of historical write-offs, its current client base and general market conditions. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients.

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments, which requires entities to measure expected credit losses for certain financial assets using a new, forward-looking current expected credit loss model (“CECL”) that will result in the earlier recognition of allowances for losses. Subsequent ASUs were issued to provide additional guidance.

On January 1, 2020, the Company adopted Topic 326 using the modified retrospective method. The provisions of Topic 326 did not significantly impact the method or timing that the Company recognizes expected credit losses and the cumulative effect of adoption was immaterial on its consolidated financial statements. The Company’s financial instruments within the scope of this guidance primarily includes trade receivables. The Company’s allowance for doubtful accounts was $250,000 at June 30, 2020 and December 31, 2019.

Notes Receivable. The Company’s notes receivable consist of one note receivable from the purchaser of certain dynamite energy source drilling equipment. This note receivable is stated at the unpaid principal balance. An allowance for note losses was not deemed necessary at June 30, 2020. Interest is recognized over the term of the note and is calculated using the simple-interest method. Amounts

payable to the Company under the note receivable are fully collateralized by the specific dynamite energy source drilling equipment sold to the note payor. This financial instrument also falls within the scope of Topic 326.

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 a finance lease or an operating lease for financial reporting purposes. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair market value of the related assets. Assets under finance leases are amortized using the straight-line method over the initial lease term. Amortization of assets under finance leases is included in depreciation expense. Operating lease right-of-use assets and liabilities, primarily for office and shop space, are recognized based on the present value of lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit rate, an incremental borrowing rate was used in determining the present value. The Company will use the implicit rate when readily determinable. The Company’s operating lease terms may include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Operating lease cost for lease payments will be recognized on a straight-line basis over the lease term and is included in operating expense.

Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period.

Impairment of Long-lived Assets. Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value.

Stock-Based Compensation. The Company measures all stock-based compensation awards, which include stock options, restricted stock, restricted stock units and common stock awards, using the fair value method and recognizes compensation expense as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) on a straight-line basis over the vesting period of the related awards.

Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates.

Revenue Recognition. Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is generally recognized based on square miles of data recorded compared to total square miles anticipated to be recorded on the survey using the total estimated revenue for the service contract. In the case of a cancelled service contract, the client is billed and revenue is recognized for any third party charges and square miles of data recorded up to the date of cancellation.

The Company receives reimbursements for certain out-of-pocket expenses under the terms of the service contracts. The amounts billed to clients are included at their gross amount in the total estimated revenue for the service contract.

Clients are billed as permitted by the service contract. Contract assets and contract liabilities are the result of timing differences between revenue recognition, billings and cash collections. If billing occurs prior to the revenue recognition or billing exceeds the revenue recognized, the amount is considered deferred revenue and a contract liability. Conversely, if the revenue recognition exceeds the billing, the excess is considered an unbilled receivable and a contract asset. As services are performed, those deferred revenue amounts are recognized as revenue.

In some instances, third-party permitting, surveying, drilling, helicopter, equipment rental and mobilization costs that directly relate to the contract are utilized to fulfill the contract obligations. These fulfillment costs are capitalized in other current assets and 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.

Recently Issued Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. Early adoption is permitted. An entity that elects to early adopt in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying, and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company adopted this guidance in the first quarter of 2020 and it did not have a material impact on its consolidated financial statements.

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

6 Months Ended

Jun. 30, 2020

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

4. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Disaggregated Revenues

The Company has one line of business, acquiring and processing seismic data in North America. Our chief operating decision maker (President, Chief Executive Officer and Chairman of the Board) makes operating decisions and assesses performance based on the Company as a whole. Accordingly, the Company is considered to be in a single reportable segment. The following table presents the Company’s operating revenues (unaudited and in thousands) disaggregated by geographic region:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019			2020	2019
Operating Revenues
United States	$	29,482	$	22,046	$	56,670	$	59,682
Canada		17		2,030		11,808		15,558
Total	$	29,499	$	24,076	$	68,478	$	75,240

Deferred Costs (in thousands)

The opening balance of deferred cost was $2,525 and $6,994 at January 1, 2020 and 2019, respectively. The Company’s prepaid expenses and other current assets at June 30, 2020 and 2019 included deferred costs incurred to fulfill contracts with customers of $878 and $4,590, respectively.

Deferred costs at June 30, 2020 compared to January 1, 2020 and at June 30, 2019 compared to January 1, 2019 decreased primarily as a result of the completion of several projects during those six month periods that had significant deferred fulfillment costs at January 1, 2020 and 2019, respectively.

The amount of total deferred costs amortized for the three and six months ended June 30, 2020 was $5,499 and $10,895, respectively. The amount of total deferred costs amortized for the three and six months ended June 30, 2019 was $7,542 and $20,447, respectively. There were no material impairment losses incurred during these periods.

Deferred Revenue (in thousands)

The opening balance of deferred revenue was $3,481 and $10,501 at January 1, 2020 and 2019, respectively. The Company’s deferred revenue at June 30, 2020 and 2019 was $1,159 and $8,538, respectively.

Deferred revenue at June 30, 2020 compared to January 1, 2020 and at June 30, 2019 compared to January 1, 2019 decreased primarily as a result of completing projects for clients with large prepayments for third party reimbursables.

Revenue recognized for the three and six months ended July 30, 2020 that was included in the contract liability balance at the beginning of 2020 was $254 and $3,347, respectively. Revenue recognized for the three and six months ended July 30, 2019 that was included in the contract liability balance at the beginning of 2019 was $1,284 and $8,177, respectively.

DEBT

6 Months Ended

Jun. 30, 2020

DEBT

DEBT

5. DEBT

Dominion Loan Agreement

On September 30, 2019, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Dominion Bank, a Texas state bank (“Dominion Bank”). The Loan Agreement provides for a revolving credit facility (the “Revolving Credit Facility”) in an amount up to the lesser of (i) $15,000,000 or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable plus 100% of the amount on deposit with Dominion Bank in the Company’s collateral account, consisting of a restricted CDARS account of $5,000,000 (the “Deposit”).

Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 6.00% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 3.50%. The Company will pay a commitment fee of 0.10% per annum on the difference of (a) $15,000,000 minus the Deposit minus (b) the daily average usage of the Revolving Credit Facility. The Loan Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets. The Company is also obligated to meet certain financial covenants under the Loan Agreement, including maintaining a tangible net worth of $75,000,000 and specified ratios with respect to current assets and liabilities and debt to tangible net worth. The Company’s obligations under the Loan Agreement are secured by a security interest in the collateral account (including the Deposit) with Dominion Bank and future accounts receivable and related collateral. As of June 30, 2020, the Company has not borrowed any amounts under the Revolving Credit Facility. The maturity date of the Loan Agreement is September 30, 2020.

The Company does not currently have any notes payable under the Revolving Credit Facility.

Veritex Letters of Credit

As of June 30, 2020, Veritex Community Bank (“Veritex”) has issued two letters of credit to the Company, each of which are secured by a certificate of deposit with Veritex. The first letter of credit is in the amount of $1,767,000 to support payment of certain insurance obligations of the Company. The second letter of credit is in the amount of $583,000 to support the Company’s workers compensation insurance.

Other Indebtedness

As of June 30, 2020, the Company has two notes payable to a finance company for various insurance premiums totaling $711,000.

In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Condensed Consolidated Balance Sheets as of June 30, 2020 include finance leases of $918,000.

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, 2020 and December 31, 2019:

The aggregate maturities of notes payable as of June 30, 2020 are as follows (in thousands):


July 2020 - June 2021	$	711
Total notes payable	$	711

The aggregate maturities of finance leases as of June 30, 2020 are as follows (in thousands):

Interest rates on these leases range from 4.65% to 5.37%.

LEASES

6 Months Ended

Jun. 30, 2020

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, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta.

The components of lease cost for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Finance lease cost
Amortization of right-of-use assets	$	344	$	352	$	691	$	703
Interest on lease liabilities		15		48		39		103
Total finance lease cost		359		400		730		806

Operating lease cost		387		366		775		809

Short-term lease cost		—		—		—		—
Total lease cost	$	746	$	766	$	1,505	$	1,615

Supplemental cash flow information related to leases for the six months ended June 30, 2020 and 2019 was as follows (in thousands):


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(786)	$	(726)
Operating cash flows from finance leases	$	(42)	$	(106)
Financing cash flows from finance leases	$	(1,474)	$	(1,407)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	—	$	8,226
Finance leases	$	—	$	40

Supplemental balance sheet information related to leases as of June 30, 2020 and 2019 was as follows (in thousands):


	June 30,
	2020		2019
Operating leases
Operating lease right-of-use assets	$	5,968	$	7,165

Operating lease liabilities - current	$	1,106	$	1,206
Operating lease liabilities - long-term		5,386		6,494
Total operating lease liabilities	$	6,492	$	7,700

Finance leases
Property and equipment, at cost	$	8,663	$	8,582
Property and equipment, net		(3,908)		(2,563)
Property and equipment, net	$	4,755	$	6,019

Finance lease liabilities - current	$	851	$	2,910
Finance lease liabilities - long-term		67		865
Total finance lease liabilities	$	918	$	3,775

Weighted average remaining lease term
Operating leases		6.0 years		6.7 years
Finance leases		0.4 years		1.3 years

Weighted average discount rate
Operating leases		5.04%		5.04%
Finance leases		4.69%		4.66%

Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands):


	Operating Leases		Finance Leases
July 2020 - June 2021	$	1,407	$	861
July 2021 - June 2022		1,251		45
July 2022 - June 2023		1,147		25
July 2023 - June 2024		1,170		—
July 2024 - June 2025		1,016		—
Thereafter		1,564		—
Total payments under lease agreements		7,555		931

Less imputed interest		(1,063)		(13)

Total lease liabilities	$	6,492	$	918

NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2020

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

8. NET INCOME (LOSS) PER SHARE

Basic net 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 was as follows (in thousands, except share and per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net income (loss)	$	1,500	$	(11,246)	$	2,493	$	(11,383)
Weighted average common shares outstanding
Basic		23,339,644		23,176,934		23,313,383		23,117,571
Dilutive common stock options, restricted stock unit awards and restricted stock awards		208,609		—		186,726		—
Diluted		23,548,253		23,176,934		23,500,109		23,117,571
Basic income (loss) per share of common stock	$	0.06	$	(0.49)	$	0.11	$	(0.49)
Diluted income (loss) per share of common stock	$	0.06	$	(0.49)	$	0.11	$	(0.49)

The Company had net income for the three and six months ended June 30, 2020 and had 208,609 and 186,726 dilutive restricted stock unit awards, respectively, and no dilutive common stock options or restricted stock awards for that period. The Company had a net loss for the three and six months ended June 30, 2019, as a result, all stock options, restricted stock unit awards and restricted stock awards were anti-dilutive and excluded from weighted average shares used in determining the diluted loss per share of common stock for 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 income (loss) per share of common stock, as their effect would be anti-dilutive for the three and six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Stock options		—		87,497		—	87,497
Restricted stock units		3,857		451,190		12,263	498,704
Restricted stock awards		—		—		—	16,402
Total		3,857		538,687		12,263	602,603

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation. The condensed consolidated financial statements for the three and six months ended June 30, 2020 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Eagle Canada, Inc., Dawson Seismic Services Holdings, Inc., Eagle Canada Seismic Services ULC and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts. Management prepares its allowance for doubtful accounts receivable based on our current estimate of expected credit losses by review of its past-due accounts, its past experience of historical write-offs, its current client base and general market conditions. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments – Credit Losses (“Topic 326”): Measurement of Credit Losses on Financial Instruments, which requires entities to measure expected credit losses for certain financial assets using a new, forward-looking current expected credit loss model (“CECL”) that will result in the earlier recognition of allowances for losses. Subsequent ASUs were issued to provide additional guidance. On January 1, 2020, the Company adopted Topic 326 using the modified retrospective method. The provisions of Topic 326 did not significantly impact the method or timing that the Company recognizes expected credit losses and the cumulative effect of adoption was immaterial on its consolidated financial statements. The Company’s financial instruments within the scope of this guidance primarily includes trade receivables. The Company’s allowance for doubtful accounts was $250,000 at June 30, 2020 and December 31, 2019.
Notes Receivable	Notes Receivable. The Company’s notes receivable consist of one note receivable from the purchaser of certain dynamite energy source drilling equipment. This note receivable is stated at the unpaid principal balance. An allowance for note losses was not deemed necessary at June 30, 2020. Interest is recognized over the term of the note and is calculated using the simple-interest method. Amounts payable to the Company under the note receivable are fully collateralized by the specific dynamite energy source drilling equipment sold to the note payor. This financial instrument also falls within the scope of Topic 326.
Leases	Leases. The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as a finance lease or an operating lease for financial reporting purposes. The assets and liabilities under finance leases are recorded at the lower of the present value of the minimum lease payments or the fair market value of the related assets. Assets under finance leases are amortized using the straight-line method over the initial lease term. Amortization of assets under finance leases is included in depreciation expense. Operating lease right-of-use assets and liabilities, primarily for office and shop space, are recognized based on the present value of lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit rate, an incremental borrowing rate was used in determining the present value. The Company will use the implicit rate when readily determinable. The Company’s operating lease terms may include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Operating lease cost for lease payments will be recognized on a straight-line basis over the lease term and is included in operating expense.
Property and Equipment	Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period.
Impairment of Long-lived Assets	Impairment of Long-lived Assets. Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates.
Revenue Recognition	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.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. Early adoption is permitted. An entity that elects to early adopt in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating the new guidance to determine the impact it will have on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying, and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company adopted this guidance in the first quarter of 2020 and it did not have a material impact on its consolidated financial statements.

DEBT (Tables)

6 Months Ended

Jun. 30, 2020

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, 2020 and December 31, 2019:

Schedule of aggregate maturities of notes payable

The aggregate maturities of notes payable as of June 30, 2020 are as follows (in thousands):


July 2020 - June 2021	$	711
Total notes payable	$	711

Schedule of aggregate maturities of finance leases

The aggregate maturities of finance leases as of June 30, 2020 are as follows (in thousands):

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

LEASES (Tables)

6 Months Ended

Jun. 30, 2020

LEASES

Schedule of expense, cash flow information and balance sheet information related to operating and finance leases

The components of lease cost for the three and six months ended June 30, 2020 and 2019 was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Finance lease cost
Amortization of right-of-use assets	$	344	$	352	$	691	$	703
Interest on lease liabilities		15		48		39		103
Total finance lease cost		359		400		730		806

Operating lease cost		387		366		775		809

Short-term lease cost		—		—		—		—
Total lease cost	$	746	$	766	$	1,505	$	1,615

Supplemental cash flow information related to leases for the six months ended June 30, 2020 and 2019 was as follows (in thousands):


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(786)	$	(726)
Operating cash flows from finance leases	$	(42)	$	(106)
Financing cash flows from finance leases	$	(1,474)	$	(1,407)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	—	$	8,226
Finance leases	$	—	$	40

Supplemental balance sheet information related to leases as of June 30, 2020 and 2019 was as follows (in thousands):


	June 30,
	2020		2019
Operating leases
Operating lease right-of-use assets	$	5,968	$	7,165

Operating lease liabilities - current	$	1,106	$	1,206
Operating lease liabilities - long-term		5,386		6,494
Total operating lease liabilities	$	6,492	$	7,700

Finance leases
Property and equipment, at cost	$	8,663	$	8,582
Property and equipment, net		(3,908)		(2,563)
Property and equipment, net	$	4,755	$	6,019

Finance lease liabilities - current	$	851	$	2,910
Finance lease liabilities - long-term		67		865
Total finance lease liabilities	$	918	$	3,775

Weighted average remaining lease term
Operating leases		6.0 years		6.7 years
Finance leases		0.4 years		1.3 years

Weighted average discount rate
Operating leases		5.04%		5.04%
Finance leases		4.69%		4.66%

Schedule of maturities of lease liabilities

Maturities of lease liabilities as of June 30, 2020 are as follows (in thousands):


	Operating Leases		Finance Leases
July 2020 - June 2021	$	1,407	$	861
July 2021 - June 2022		1,251		45
July 2022 - June 2023		1,147		25
July 2023 - June 2024		1,170		—
July 2024 - June 2025		1,016		—
Thereafter		1,564		—
Total payments under lease agreements		7,555		931

Less imputed interest		(1,063)		(13)

Total lease liabilities	$	6,492	$	918

NET INCOME (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2020

NET INCOME (LOSS) PER SHARE

Schedule of computation of basic and diluted income (loss) per share

The computation of basic and diluted income (loss) per share was as follows (in thousands, except share and per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net income (loss)	$	1,500	$	(11,246)	$	2,493	$	(11,383)
Weighted average common shares outstanding
Basic		23,339,644		23,176,934		23,313,383		23,117,571
Dilutive common stock options, restricted stock unit awards and restricted stock awards		208,609		—		186,726		—
Diluted		23,548,253		23,176,934		23,500,109		23,117,571
Basic income (loss) per share of common stock	$	0.06	$	(0.49)	$	0.11	$	(0.49)
Diluted income (loss) per share of common stock	$	0.06	$	(0.49)	$	0.11	$	(0.49)

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 income (loss) per share of common stock


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Stock options		—		87,497		—	87,497
Restricted stock units		3,857		451,190		12,263	498,704
Restricted stock awards		—		—		—	16,402
Total		3,857		538,687		12,263	602,603

DEBT (Details)	Sep. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) instrument	Dec. 31, 2019 USD ($)	Jun. 30, 2019 USD ($)
DEBT
Restricted CDARS account		$ 5,000,000	$ 5,000,000
Number of notes payable \| instrument		2
Finance lease		$ 918,000		$ 3,775,000
Total notes payable		$ 711,000
Dominion Revolving Credit Facility
DEBT
Maximum borrowing capacity	$ 15,000,000
Percentage of maximum borrowing capacity on eligible accounts receivable	80.00%
Percentage of maximum borrowing capacity on deposit with lender	100.00%
Restricted CDARS account	$ 5,000,000
Commitment fee (as a percent)	0.10%
Minimum tangible net worth	$ 75,000,000
Dominion Revolving Credit Facility \| Minimum
DEBT
Interest rate (as a percent)	3.50%
Dominion Revolving Credit Facility \| Maximum
DEBT
Interest rate (as a percent)	6.00%
Veritex Letters of Credit
DEBT
Number of letters of credit		2
First Veritex Letters of Credit
DEBT
Amount of letter of credit		$ 1,767,000
Second Veritex Letters of Credit
DEBT
Amount of letter of credit		583,000
Notes payable to finance companies for insurance
DEBT
Total notes payable		$ 711,000	$ 1,746,000
Notes payable to finance companies for insurance \| Minimum
DEBT
Interest rate (as a percent)		4.05%	4.05%
Notes payable to finance companies for insurance \| Maximum
DEBT
Interest rate (as a percent)		4.99%	4.99%

LEASES - Supplemental Balance Sheet Information (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Operating leases
Operating lease right-of-use assets	$ 5,968,000	$ 6,605,000	$ 7,165,000
Operating lease liabilities - current	1,106,000	1,200,000	1,206,000
Operating lease liabilities - long-term	5,386,000	$ 5,940,000	6,494,000
Total operating lease liabilities	6,492,000		7,700,000
Finance leases
Property and equipment, at cost	8,663,000		8,582,000
Accumulated depreciation	(3,908,000)		(2,563,000)
Property and equipment, net	4,755,000		6,019,000
Finance lease liabilities - current	851,000		2,910,000
Finance lease liabilities - long-term	67,000		865,000
Total finance lease liabilities	$ 918,000		$ 3,775,000
Weighted average remaining lease term:
Operating leases	6 years		6 years 8 months 12 days
Finance leases	4 months 24 days		1 year 3 months 18 days
Weighted average discount rate:
Operating leases	5.04%		5.04%
Finance leases	4.69%		4.66%

LEASES - Maturities of Lease Liabilities (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Operating Leases
July 2020 - June 2021	$ 1,407,000
July 2021 - June 2022	1,251,000
July 2022 - June 2023	1,147,000
July 2023 - June 2024	1,170,000
July 2024 - June 2025	1,016,000
Thereafter	1,564,000
Total payments under lease agreements	7,555,000
Less imputed interest	(1,063,000)
Total lease liabilities	6,492,000	$ 7,700,000
Finance Leases
July 2020 - June 2021	861,000
July 2021 - June 2022	45,000
July 2022 - June 2023	25,000
Total payments under lease agreements	931,000
Less imputed interest	(13,000)
Total lease liabilities	$ 918,000	$ 3,775,000

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Net income (loss)	$ 1,500	$ 993	$ (11,246)	$ (137)	$ 2,493	$ (11,383)
Weighted average common shares outstanding:
Basic	23,339,644		23,176,934		23,313,383	23,117,571
Dilutive common stock options, restricted stock unit awards and restricted stock awards	208,609				186,726
Diluted	23,548,253		23,176,934		23,500,109	23,117,571
Basic income (loss) per share of common stock	$ 0.06		$ (0.49)		$ 0.11	$ (0.49)
Diluted income (loss) per share of common stock	$ 0.06		$ (0.49)		$ 0.11	$ (0.49)
Restricted stock units
Weighted average common shares outstanding:
Dilutive common stock options, restricted stock unit awards and restricted stock awards	208,609				186,726
Stock options
Weighted average common shares outstanding:
Dilutive common stock options, restricted stock unit awards and restricted stock awards	0				0
Restricted stock awards
Weighted average common shares outstanding:
Dilutive common stock options, restricted stock unit awards and restricted stock awards	0				0

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	4,000,000	4,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	23,399,035	23,335,855
Common stock, shares outstanding	23,350,590	23,287,410
Treasury stock, shares	48,445	48,445

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Jun. 30, 2020 USD ($) item	Dec. 31, 2019 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Allowance for doubtful accounts \| $	$ 250,000	$ 250,000
Number of notes receivable \| item	1
Maximum original expected duration of cancelable service contracts	1 year

OPERATING COMMITMENTS AND CONTINGENCIES (Details)	Apr. 01, 2019 defendant
Weatherford Litigation
OPERATING COMMITMENTS AND CONTINGENCIES
Number of other parties named as defendants	18

NET INCOME (LOSS) PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation	3,857	538,687	12,263,000	602,603,000
Stock options
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation		87,497		87,497,000
Restricted stock units
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation	3,857	451,190	12,263,000	498,704,000
Restricted stock awards
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Weighted average number of securities excluded from calculation				16,402,000

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Disaggregated Revenues (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) segment	Jun. 30, 2019 USD ($)
Number of business segments \| segment			1
Operating revenues	$ 29,499	$ 24,076	$ 68,478	$ 75,240
United States
Operating revenues	29,482	22,046	56,670	59,682
Canada
Operating revenues	$ 17	$ 2,030	$ 11,808	$ 15,558

DEBT - Maturities (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Aggregate maturities of notes payable
July 2020 - June 2021	$ 711,000
Total notes payable	711,000
Aggregate maturities of finance leases
July 2020 - June 2021	851,000
July 2021 - June 2022	43,000
July 2022 - June 2023	24,000
Total finance lease liabilities	$ 918,000	$ 3,775,000
Minimum
Aggregate maturities of finance leases
Interest rate on leases	4.65%
Maximum
Aggregate maturities of finance leases
Interest rate on leases	5.37%

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INCOME TAXES
Effective tax rate (as percent)	0.10%	1.10%	0.00%	1.10%