0001558370-21-011576 | 10-Q | XBRL Viewer

June 30, 2021

December 31, 2020

Notes payable to finance company for insurance

Aggregate principal amount outstanding

Interest rate

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2021	Aug. 11, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-32472
Entity Registrant Name	DAWSON GEOPHYSICAL COMPANY
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-2095844
Entity Address, Address Line One	508 West Wall, Suite 800
Entity Address, City or Town	Midland
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	432
Local Phone Number	684-3000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	DWSN
Security Exchange Name	NASDAQ
Entity 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		23,631,982
Entity Central Index Key	0000799165
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 40,334	$ 40,955
Restricted cash	5,000	5,000
Short-term investments	583	583
Accounts receivable, net	324	7,343
Prepaid expenses and other current assets	2,785	4,709
Total current assets	49,026	58,590
Property and equipment, net	31,967	38,900
Right-of-use assets	4,983	5,494
Intangibles, net	403	393
Total assets	86,379	103,377
Current liabilities:
Accounts payable	543	1,603
Accrued liabilities:
Payroll costs and other taxes	571	1,045
Other	1,394	1,811
Deferred revenue	684	1,779
Current maturities of notes payable and finance leases	400	94
Current maturities of operating lease liabilities	1,052	1,109
Total current liabilities	4,644	7,441
Long-term liabilities:
Notes payable and finance leases, net of current maturities	27	44
Operating lease liabilities, net of current maturities	4,425	4,899
Deferred tax liabilities, net	19	19
Total long-term liabilities	4,471	4,962
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, 23,680,427 and 23,526,517 shares issued and 23,631,982 and 23,478,072 shares outstanding at June 30, 2021 and December 31, 2020, respectively	237	235
Additional paid-in capital	154,987	154,866
Retained deficit	(77,172)	(62,927)
Treasury stock, at cost; 48,445 shares
Accumulated other comprehensive loss, net	(788)	(1,200)
Total stockholders' equity	77,264	90,974
Total liabilities and stockholders' equity	$ 86,379	$ 103,377

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
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	23,680,427	23,526,517
Common stock, shares outstanding	23,631,982	23,478,072
Treasury stock, shares	48,445	48,445

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
Operating Revenues	$ 193	$ 29,499	$ 11,941	$ 68,478
Operating costs:
Operating expenses	3,330	19,732	14,272	48,748
General and administrative	2,746	4,261	5,553	7,935
Depreciation and amortization	3,400	4,383	6,834	9,287
Total cost and expenses	9,476	28,376	26,659	65,970
(Loss) income from operations	(9,283)	1,123	(14,718)	2,508
Other income (expense):
Interest income	56	115	126	220
Interest expense	(6)	(30)	(12)	(70)
Other income (expense), net	216	293	359	(165)
(Loss) income before income tax	(9,017)	1,501	(14,245)	2,493
Income tax expense		(1)
Net (loss) income	(9,017)	1,500	(14,245)	2,493
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation, net	211	604	412	(595)
Comprehensive (loss) income	$ (8,806)	$ 2,104	$ (13,833)	$ 1,898
Basic (loss) income per share of common stock	$ (0.38)	$ 0.06	$ (0.61)	$ 0.11
Diluted (loss) income per share of common stock	$ (0.38)	$ 0.06	$ (0.61)	$ 0.11
Weighted average equivalent common shares outstanding	23,525,728	23,339,644	23,501,900	23,313,383
Weighted average equivalent common shares outstanding - assuming dilution	23,525,728	23,548,253	23,501,900	23,500,109

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net (loss) income	$ (14,245)	$ 2,493
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	6,834	9,287
Operating lease cost	528	605
Non-cash compensation	198	474
Deferred income tax expense		79
Change in other long-term liabilities		(150)
(Gain) loss on disposal of assets	(82)	1
Remeasurement and other	121	(14)
Change in operating assets and liabilities:
Decrease (increase) in accounts receivable	7,038	(2,249)
Decrease in prepaid expenses and other assets	1,927	3,304
Decrease in accounts payable	(1,063)	(600)
Decrease in accrued liabilities	(911)	(1,319)
Decrease in operating lease liabilities	(548)	(613)
Decrease in deferred revenue	(1,095)	(2,322)
Net cash (used in) provided by operating activities	(1,298)	8,976
Cash flows from investing activities:
Capital expenditures, net of non-cash capital expenditures summarized below		(2,764)
Proceeds from disposal of assets	335	193
Proceeds from notes receivable		26
Net cash provided by (used in) investing activities	335	(2,545)
Cash flows from financing activities:
Proceeds from notes payable	550	6,374
Principal payments on notes payable	(237)	(7,842)
Principal payments on finance leases	(27)	(1,474)
Tax withholdings related to stock-based compensation awards	(75)	(17)
Net cash provided by (used in) financing activities	211	(2,959)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	131	(265)
Net (decrease) increase in cash and cash equivalents and restricted cash	(621)	3,207
Cash and cash equivalents and restricted cash at beginning of period	45,955	31,271
Cash and cash equivalents and restricted cash at end of period	45,334	34,478
Supplemental cash flow information:
Cash paid for interest	11	77
Cash paid for income taxes	81
Cash received for income taxes		206
Non-cash operating, investing and financing activities:
Decrease in accrued purchases of property and equipment		(61)
Increase in right-of-use assets and operating lease liabilities	$ 1
Financed insurance premiums		$ 434

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, 2019	$ 233	$ 154,235	$ (49,731)	$ (1,572)	$ 103,165
Balance at beginning of period (in shares) at Dec. 31, 2019	23,335,855
Increase (Decrease) in Stockholders' Equity
Net (loss) income			993		993
Unrealized income (loss) on foreign exchange rate translation				(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
Increase (Decrease) in Stockholders' Equity
Net (loss) income					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
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 (loss) income			1,500		1,500
Unrealized income (loss) on foreign exchange rate translation				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
Balance at beginning of period at Dec. 31, 2020	$ 235	154,866	(62,927)	(1,200)	$ 90,974
Balance at beginning of period (in shares) at Dec. 31, 2020	23,526,517				23,478,072
Increase (Decrease) in Stockholders' Equity
Net (loss) income			(5,228)		$ (5,228)
Unrealized income (loss) on foreign exchange rate translation				201	201
Stock-based compensation expense		101			101
Balance at end of period at Mar. 31, 2021	$ 235	154,967	(68,155)	(999)	86,048
Balance at end of period (in shares) at Mar. 31, 2021	23,526,517
Balance at beginning of period at Dec. 31, 2020	$ 235	154,866	(62,927)	(1,200)	$ 90,974
Balance at beginning of period (in shares) at Dec. 31, 2020	23,526,517				23,478,072
Increase (Decrease) in Stockholders' Equity
Net (loss) income					$ (14,245)
Balance at end of period at Jun. 30, 2021	$ 237	154,987	(77,172)	(788)	$ 77,264
Balance at end of period (in shares) at Jun. 30, 2021	23,680,427				23,631,982
Balance at beginning of period at Mar. 31, 2021	$ 235	154,967	(68,155)	(999)	$ 86,048
Balance at beginning of period (in shares) at Mar. 31, 2021	23,526,517
Increase (Decrease) in Stockholders' Equity
Net (loss) income			(9,017)		(9,017)
Unrealized income (loss) on foreign exchange rate translation				211	211
Issuance of common stock under stock compensation plans	$ 2	(2)
Issuance of common stock under stock compensation plans (in shares)	174,000
Stock-based compensation expense		67			67
Issuance of common stock as compensation		30			30
Issuance of common stock as compensation (in shares)	11,320
Shares exchanged for taxes on stock-based compensation		(75)			(75)
Shares exchanged for taxes on stock-based compensation (in shares)	(31,410)
Balance at end of period at Jun. 30, 2021	$ 237	$ 154,987	$ (77,172)	$ (788)	$ 77,264
Balance at end of period (in shares) at Jun. 30, 2021	23,680,427				23,631,982

ORGANIZATION AND NATURE OF OPERATIONS

6 Months Ended

Jun. 30, 2021

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 ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2021

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, 2020.

Significant Accounting Policies

Principles of Consolidation. The condensed consolidated financial statements for the three and six months ended June 30, 2021 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Dawson Seismic Services Holdings, Inc., Eagle Canada, Inc., Eagle Canada Seismic Services ULC and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

Allowance for Doubtful Accounts. The Company’s allowance for doubtful accounts reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument and is determined based on a number of factors. Management determines the need for any allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs, its current client base, when customer accounts exceed 90 days past due and specific customer account reviews. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. The Company's allowance for doubtful accounts was $250,000 at June 30, 2021 and December 31, 2020.

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. For operating leases, where readily determinable, the Company uses the implicit interest rate in determining the present value of future minimum lease payments. In the absence of an implicit rate, the Company uses its incremental borrowing rate. The right-of-use assets are amortized to operating lease cost over the lease terms on a straight-line basis and is included in operating expense. Several of the Company’s leases include options to renew and the exercise of lease renewal options is primarily at the Company’s discretion.

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, net of actual forfeitures, as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards.

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

Revenue Recognition. Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is 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 October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which clarifies the Codification or corrects unintended application of guidance by improving the consistency of the Codification for disclosure on multiple topics. They are not expected to change current practice. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period and should be applied on a retrospective basis for all periods presented. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying

and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. The Company adopted this guidance in the first quarter of 2021 prospectively as it relates to currency translation adjustments in other comprehensive income and it did not have a material impact on its consolidated financial statements.

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2021

Fair Value of Financial Instruments

Fair Value of Financial Instruments

3. FAIR VALUE OF FINANCIAL INSTRUMENTS

At June 30, 2021 and December 31, 2020, 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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

6 Months Ended

Jun. 30, 2021

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,
	2021		2020			2021	2020
Operating Revenues
United States	$	193	$	29,482	$	8,977	$	56,670
Canada		—		17		2,964		11,808
Total	$	193	$	29,499	$	11,941	$	68,478

Deferred Costs (in thousands)

Deferred costs were $1,847 and $2,525 at January 1, 2021 and 2020, respectively. The Company’s prepaid expenses and other current assets at June 30, 2021 and 2020 included deferred costs incurred to fulfill contracts with customers of $92 and $878, respectively.

Deferred costs at June 30, 2021 compared to January 1, 2021 and at June 30, 2020 compared to January 1, 2020 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, 2021 and 2020, respectively.

The amount of total deferred costs amortized for the three and six months ended June 30, 2021 was $85 and $3,907, 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. There were no material impairment losses incurred during these periods.

Deferred Revenue (in thousands)

Deferred revenue was $1,779 and $3,481 at January 1, 2021 and 2020, respectively. The Company’s deferred revenue at June 30, 2021 and 2020 was $684 and $1,159, respectively.

Deferred revenue at June 30, 2021 compared to January 1, 2021 and at June 30, 2020 compared to January 1, 2020 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 June 30, 2021 that was included in the contract liability balance at the beginning of 2021 was $0 and $1,779, respectively. Revenue recognized for the three and six months ended June 30, 2020 that was included in the contract liability balance at the beginning of 2020 was $254 and $3,347, respectively.

DEBT

6 Months Ended

Jun. 30, 2021

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, 2020, the Company entered into a Loan Modification Agreement to the Loan and Security Agreement (as amended by the Loan Modification Agreement, the “Loan Agreement”) for the purpose of amending and extending the maturity of its line of credit with Dominion Bank by one year. 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”). As of June 30, 2021, the Company has not borrowed any amounts under the Revolving Credit Facility.

Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 6.00% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 3.50%. The Company will pay a commitment fee of 0.10% per annum on the difference of (a) $15,000,000 minus the Deposit minus (b) the daily average usage of the Revolving Credit Facility. The Loan Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets. The Company is also obligated to meet certain financial covenants under the Loan Agreement, including maintaining a tangible net worth of $75,000,000 and specified ratios with respect to current assets and liabilities and debt to tangible net worth. The Company received a limited waiver from Dominion Bank with respect to any non-compliance with the tangible net worth covenant for the period ended June 30, 2021. The Company’s obligations under the Loan Agreement are secured by a security interest in the collateral account (including the Deposit) with Dominion Bank and future accounts receivable and related collateral. The maturity date of the Loan Agreement is September 30, 2021.

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

Dominion Letters of Credit

As of June 30, 2021, Dominion Bank has issued one letter of credit in the amount of $583,000 to support the Company’s workers compensation insurance. The letter of credit is secured by a certificate of deposit with Dominion Bank.

Other Indebtedness (in thousands)

As of June 30, 2021, the Company has one short-term note payable to a finance company for various insurance premiums totaling $353,000.

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, 2021 includes finance leases of $74,000.

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, 2021 and December 31, 2020:

The aggregate maturities of finance leases as of June 30, 2021 are as follows (in thousands):

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

LEASES

6 Months Ended

Jun. 30, 2021

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, Denver, Oklahoma City 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 March 16, 2021.

Maturities of lease liabilities as of June 30, 2021 are as follows (in thousands):


	Operating Leases		Finance Leases
July 2021 - June 2022	$	1,303	$	49
July 2022 - June 2023		1,169		28
July 2023 - June 2024		1,187		—
July 2024 - June 2025		1,023		—
July 2025 - June 2026		888		—
Thereafter		676		—
Total payments under lease agreements		6,246		77

Less imputed interest		(769)		(3)

Total lease liabilities	$	5,477	$	74

OPERATING COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies

Commitments and Contingencies

7. OPERATING 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. On October 28, 2020, the trial court granted a plea to jurisdiction in favor the City of Midland, a co-defendant in the case. Weatherford is appealing that decision and the case is stayed, pending the appellate ruling. 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 (LOSS) INCOME PER SHARE

6 Months Ended

Jun. 30, 2021

Net Loss per Share

Net Loss per Share

8. NET (LOSS) INCOME PER SHARE

Basic net (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.

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,
	2021		2020		2021		2020
Net (loss) income	$	(9,017)	$	1,500	$	(14,245)	$	2,493
Weighted average common shares outstanding
Basic		23,525,728		23,339,644		23,501,900		23,313,383
Dilutive common stock options, restricted stock unit awards and restricted stock awards		—		208,609		—		186,726
Diluted		23,525,728		23,548,253		23,501,900		23,500,109
Basic (loss) income per share of common stock	$	(0.38)	$	0.06	$	(0.61)	$	0.11
Diluted (loss) income per share of common stock	$	(0.38)	$	0.06	$	(0.61)	$	0.11

The Company had a net loss for the three and six months ended June 30, 2021. 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 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 no anti-dilutive stock options, restricted stock unit awards, or restricted stock awards to be excluded from the calculation of diluted loss per share of common stock for the three and six months ended June 30, 2021. The Company had 3,857 and 12,263 weighted average restricted stock unit awards excluded from the calculation of diluted income per share of common stock for the three and six months ended June 30, 2020, respectively.

INCOME TAXES

6 Months Ended

Jun. 30, 2021

Income Taxes

Income Taxes

9. INCOME TAXES

For the three and six months ended June 30, 2021, the Company's effective tax rate was 0.0% and 0.0%, respectively. For the three and six months ended June 30, 2020, the Company’s effective tax rate was 0.1% and 0.0%, respectively. The Company’s nominal or no 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.

If the Company had any income tax benefit for the three and six months ended June 30, 2021, it would not include income tax benefits for all of the losses incurred because the Company has recorded valuation allowances against significantly all of its federal, state and foreign deferred tax assets. The Company has recorded valuation allowances against the associated deferred tax assets for the amounts it deems are not more likely than not realizable. Based on management’s belief that not all the net operating losses are realizable, a federal valuation allowance and additional state valuation allowances were maintained during the six months ended June 30, 2021 and 2020. 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.

On December 27, 2020, Congress passed the Consolidated Appropriations Act, 2021 which included changes to federal income tax law which did not have a material impact on the Company’s consolidated financial statements.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2021

SUBSEQUENT EVENTS.

SUBSEQUENT EVENTS

10. SUBSEQUENT EVENTS

None.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2021
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, 2021 include the accounts of the Company and its wholly-owned subsidiaries, Dawson Operating LLC, Dawson Seismic Services Holdings, Inc., Eagle Canada, Inc., Eagle Canada Seismic Services ULC and Exploration Surveys, Inc. All significant intercompany balances and transactions have been eliminated in consolidation.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts. The Company’s allowance for doubtful accounts reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument and is determined based on a number of factors. Management determines the need for any allowance for doubtful accounts receivable based on its review of past-due accounts, its past experience of historical write-offs, its current client base, when customer accounts exceed 90 days past due and specific customer account reviews. While the collectability of outstanding client invoices is continually assessed, the inherent volatility of the energy industry’s business cycle can cause swift and unpredictable changes in the financial stability of the Company’s clients. The Company's allowance for doubtful accounts was $250,000 at June 30, 2021 and December 31, 2020.
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. For operating leases, where readily determinable, the Company uses the implicit interest rate in determining the present value of future minimum lease payments. In the absence of an implicit rate, the Company uses its incremental borrowing rate. The right-of-use assets are amortized to operating lease cost over the lease terms on a straight-line basis and is included in operating expense. Several of the Company’s leases include options to renew and the exercise of lease renewal options is primarily at the Company’s discretion.
Property and Equipment	Property and Equipment. Property and equipment is capitalized at historical cost or the fair value of assets acquired in a business combination and is depreciated over the useful life of the asset. Management’s estimation of this useful life is based on circumstances that exist in the seismic industry and information available at the time of the purchase of the asset. As circumstances change and new information becomes available, these estimates could change. Depreciation is computed using the straight-line method. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the balance sheet, and any resulting gain or loss is reflected in the results of operations for the period.
Impairment of Long-lived Assets	Impairment of Long-lived Assets. Long-lived assets are reviewed for impairment when triggering events occur suggesting deterioration in the assets’ recoverability or fair value. Recognition of an impairment charge is required if future expected undiscounted net cash flows are insufficient to recover the carrying value of the assets and the fair value of the assets is below the carrying value of the assets. Management’s forecast of future cash flows used to perform impairment analysis includes estimates of future revenues and expenses based on the Company’s anticipated future results while considering anticipated future oil and natural gas prices, which is fundamental in assessing demand for the Company’s services. If the carrying amounts of the assets exceed the estimated expected undiscounted future cash flows, the Company measures the amount of possible impairment by comparing the carrying amount of the assets to the fair value.
Stock-Based Compensation	Stock-Based Compensation. The Company measures all stock-based compensation awards, which include stock options, restricted stock, restricted stock units and common stock awards, using the fair value method and recognizes compensation expense, net of actual forfeitures, as operating or general and administrative expense, as appropriate, in the Condensed Consolidated Statements of Operations and Comprehensive Loss on a straight-line basis over the vesting period of the related awards.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements. Preparation of the accompanying financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Because of the use of assumptions and estimates inherent in the reporting process, actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition. Services are provided under cancelable service contracts which usually have an original expected duration of one year or less. These contracts are either “turnkey” or “term” agreements. Under both types of agreements, the Company recognizes revenues as the services are performed. Revenue is 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	Recently Issued Accounting Pronouncements In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which clarifies the Codification or corrects unintended application of guidance by improving the consistency of the Codification for disclosure on multiple topics. They are not expected to change current practice. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period and should be applied on a retrospective basis for all periods presented. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for the annual period beginning after December 15, 2020, including interim periods within that annual period. Certain amendments within this ASU are required to be applied on a retrospective basis for all periods presented; others are to be applied using a modified retrospective approach with a cumulative-effect adjustment to retained earnings, if any, as of the beginning of the first reporting period in which the guidance is adopted; and yet others are to be applied using either basis. All other amendments not specified in the ASU should be applied on a prospective basis. The Company adopted this guidance in the first quarter of 2021 prospectively as it relates to currency translation adjustments in other comprehensive income and it did not have a material impact on its consolidated financial statements.

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2021

Supplemental Consolidated Financial Statement Information

Schedule of operating revenues disaggregated by geographic region


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020			2021	2020
Operating Revenues
United States	$	193	$	29,482	$	8,977	$	56,670
Canada		—		17		2,964		11,808
Total	$	193	$	29,499	$	11,941	$	68,478

DEBT (Tables)

6 Months Ended

Jun. 30, 2021

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, 2021 and December 31, 2020:

Schedule of aggregate maturities of finance leases

The aggregate maturities of finance leases as of June 30, 2021 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=120391452&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=119993939&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=120395691&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=119993939&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, 2021

Leases

Schedule of maturities of lease liabilities

Maturities of lease liabilities as of June 30, 2021 are as follows (in thousands):


	Operating Leases		Finance Leases
July 2021 - June 2022	$	1,303	$	49
July 2022 - June 2023		1,169		28
July 2023 - June 2024		1,187		—
July 2024 - June 2025		1,023		—
July 2025 - June 2026		888		—
Thereafter		676		—
Total payments under lease agreements		6,246		77

Less imputed interest		(769)		(3)

Total lease liabilities	$	5,477	$	74

NET (LOSS) INCOME PER SHARE (Tables)

6 Months Ended

Jun. 30, 2021

Net Loss per Share

Schedule of computation of basic and diluted (loss) income 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,
	2021		2020		2021		2020
Net (loss) income	$	(9,017)	$	1,500	$	(14,245)	$	2,493
Weighted average common shares outstanding
Basic		23,525,728		23,339,644		23,501,900		23,313,383
Dilutive common stock options, restricted stock unit awards and restricted stock awards		—		208,609		—		186,726
Diluted		23,525,728		23,548,253		23,501,900		23,500,109
Basic (loss) income per share of common stock	$	(0.38)	$	0.06	$	(0.61)	$	0.11
Diluted (loss) income per share of common stock	$	(0.38)	$	0.06	$	(0.61)	$	0.11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Summary of Significant Accounting Policies
Threshold period of past due (in days)	90 days
Allowance for doubtful accounts	$ 250,000	$ 250,000
Maximum original expected duration of cancelable service contracts (in years)	1 year

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Disaggregated Revenues (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)
Number of business segments \| segment			1
Operating Revenues	$ 193	$ 29,499	$ 11,941	$ 68,478
United States
Operating Revenues	$ 193	29,482	8,977	56,670
Canada
Operating Revenues		$ 17	$ 2,964	$ 11,808

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Deferred Costs and Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jan. 01, 2021	Dec. 31, 2020	Jan. 01, 2020
Deferred costs					$ 1,847		$ 2,525
Total deferred costs amortized	$ 85	$ 5,499	$ 3,907	$ 10,895
Deferred revenue	684	1,159	684	1,159	$ 1,779	$ 1,779	$ 3,481
Revenue recognized that was included in deferred revenue balances at beginning of period	0	254	1,779	3,347
Prepaid expenses and other current assets
Deferred costs	$ 92	$ 878	$ 92	$ 878

DEBT (Details)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2021 USD ($) item	Dec. 31, 2020 USD ($)
DEBT
Restricted CDARS account			$ 5,000,000	$ 5,000,000
Finance lease			$ 74,000
Dominion Loan Agreement
DEBT
Maturity of line of credit extended	1 year
Maximum borrowing capacity	$ 15,000,000	$ 15,000,000
Percentage of maximum borrowing capacity on eligible accounts receivable	80.00%
Percentage of maximum borrowing capacity on deposit with lender	100.00%
Restricted CDARS account	$ 5,000,000
Commitment fee (as a percent)		0.10%
Minimum tangible net worth		$ 75,000,000
Dominion Loan Agreement \| Minimum
DEBT
Interest rate (as a percent)		3.50%
Dominion Loan Agreement \| Maximum
DEBT
Interest rate (as a percent)		6.00%
Dominion Letters of Credit
DEBT
Number of letters of credit \| item			1
Amount of letter of credit			$ 583,000
Notes payable to finance companies for insurance
DEBT
Interest rate (as a percent)			4.99%	4.99%
Number of notes payable \| item			1
Aggregate principal amount outstanding			$ 353,000	$ 40,000
Notes payable to finance companies for insurance \| Minimum
DEBT
Interest rate (as a percent)				4.99%

DEBT - Aggregate principal amount and interest rates (Details) - Notes payable to finance companies for insurance - USD ($)	Jun. 30, 2021	Dec. 31, 2020
DEBT
Aggregate principal amount outstanding	$ 353,000	$ 40,000
Interest rate (as a percent)	4.99%	4.99%

DEBT - Maturities (Details)	Jun. 30, 2021 USD ($)
Aggregate maturities of finance leases
July 2021 - June 2022	$ 47,000
July 2022 - June 2023	27,000
Total finance lease liabilities	$ 74,000
Minimum
Aggregate maturities of finance leases
Interest rate on leases	4.65%
Maximum
Aggregate maturities of finance leases
Interest rate on leases	5.37%

LEASES (Details)	Jun. 30, 2021 USD ($)
Operating Leases
July 2021 - June 2022	$ 1,303,000
July 2022 - June 2023	1,169,000
July 2023 - June 2024	1,187,000
July 2024 - June 2025	1,023,000
July 2025 - June 2026	888,000
Thereafter	676,000
Total payments under lease agreements	6,246,000
Less imputed interest	(769,000)
Total lease liabilities	5,477,000
Finance Leases
July 2021 - June 2022	49,000
July 2022 - June 2023	28,000
Total payments under lease agreements	77,000
Less imputed interest	(3,000)
Total lease liabilities	$ 74,000

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

NET (LOSS) INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Net (loss) income	$ (9,017)	$ (5,228)	$ 1,500	$ 993	$ (14,245)	$ 2,493
Weighted average common shares outstanding:
Basic	23,525,728		23,339,644		23,501,900	23,313,383
Dilutive common stock options, restricted stock unit awards and restricted stock awards			208,609			186,726
Diluted	23,525,728		23,548,253		23,501,900	23,500,109
Basic (loss) income per share of common stock	$ (0.38)		$ 0.06		$ (0.61)	$ 0.11
Diluted (loss) income per share of common stock	$ (0.38)		$ 0.06		$ (0.61)	$ 0.11
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

NET (LOSS) INCOME PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock options
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of securities excluded from calculation	0		0
Restricted stock units
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of securities excluded from calculation	0	3,857	0	12,263
Restricted stock awards
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of securities excluded from calculation	0		0

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Taxes
Effective tax rate (as percent)	0.00%	0.10%	0.00%	0.00%