0001558370-23-018609 | 10-Q | XBRL Viewer

September 30, 2023

December 31, 2022

Notes payable to finance company for insurance

Aggregate principal amount outstanding

Interest rate of 7.99%

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

9 Months Ended

Sep. 30, 2023

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 and Chief Executive Officer) 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 September 30,				Nine Months Ended September 30,
		2023	2022 (as adjusted)			2023	2022 (as adjusted)
Operating Revenues
United States	$	22,947	$	7,353	$	61,859	$	22,377
Canada		14		76		10,729		11,751
Total	$	22,961	$	7,429	$	72,588	$	34,128

Deferred Costs (in thousands)

Deferred costs were $5,433 and $972 at January 1, 2023 and 2022, respectively. The Company’s prepaid expenses and other current assets at September 30, 2023 and 2022 included deferred costs incurred to fulfill contracts with customers of $4,226 and $3,636, respectively.

Deferred costs at September 30, 2023 compared to January 1, 2023 decreased primarily as a result of the completion of several projects during that nine month period that had deferred fulfillment costs at January 1, 2023. Deferred costs at September 30, 2022 compared to January 1, 2022 increased primarily as a result of new projects for clients with significant deferred fulfillment costs.

The amount of total deferred costs amortized for the nine months ended September 30, 2023 and 2022 was $31,429 and $2,661, respectively. There were no material impairment losses incurred during these periods.

Deferred Revenue (in thousands)

Deferred revenue was $7,380 and $1,344 at January 1, 2023 and 2022, respectively. The Company’s deferred revenue at September 30, 2023 and 2022 was $6,748 and $4,378, respectively.

Deferred revenue at September 30, 2023 compared to January 1, 2023 remained fairly consistent. Deferred revenue at September 30, 2022 compared to January 1, 2022 increased primarily as a result of new projects for clients with large third party reimbursables where data had not yet been recorded.

Revenue recognized for the three and nine months ended September 30, 2023 that was included in the contract liability balance at the beginning of 2023 was $198 and $7,121, respectively. Revenue recognized for the three and nine months ended September 30, 2022 that was included in the contract liability balance at the beginning of 2022 was $0 and $936, respectively.

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Consideration Paid (Details) - Breckenridge $ in Thousands	Mar. 24, 2023 USD ($)
Asset Acquisition [Line Items]
Common stock issued	$ 2,020
Note payable issued	9,880
Purchase price	$ 11,900

LEASES

9 Months Ended

Sep. 30, 2023

LEASES

LEASES

6. LEASES

The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The majority of our operating leases are non-cancelable operating leases for office and shop space in Midland, Plano, Houston and Calgary, Alberta. There have been no material changes to our leases since the Company’s most recent Annual Report on Form 10-K that was filed with the SEC on March 13, 2023.

Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):


	Operating Leases		Finance Leases
October 2023 - September 2024	$	1,362	$	475
October 2024 - September 2025		1,129		476
October 2025 - September 2026		1,084		566
October 2026 - September 2027		591		193
October 2027 - September 2028		40		—
Thereafter		—		—
Total payments under lease agreements		4,206		1,710

Less imputed interest		(362)		(183)

Total lease liabilities	$	3,844	$	1,527

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
Sep. 30, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	3. FAIR VALUE OF FINANCIAL INSTRUMENTS At September 30, 2023 and December 31, 2022, 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.

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2023

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

3. FAIR VALUE OF FINANCIAL INSTRUMENTS

At September 30, 2023 and December 31, 2022, 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 PURCHASE AGREEMENT TRANSACTION INFORMATION - Balance sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Mar. 24, 2023	Jan. 01, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Jan. 01, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 13,891					$ 18,603
Restricted cash	5,000					5,000
Short-term investments	265					265
Accounts receivable, net	5,953					7,972
Employee retention credit receivable						3,035
Prepaid expenses and other current assets	7,507					8,951
Total current assets	32,616					43,826
Property and equipment, net	16,451					20,468
Right-of-use assets	3,466					4,010
Intangibles, net	368					369
Total assets	52,901					68,673
Current liabilities:
Accounts payable	5,458					4,140
Accrued liabilities:
Payroll costs and other taxes	718					2,001
Other	1,064					1,280
Deferred revenue	6,748				$ 7,380	7,380	$ 4,378			$ 1,344
Current maturities of notes payable and finance leases	511					275
Current maturities of operating lease liabilities	1,190					1,118
Total current liabilities	15,689					16,194
Long-term liabilities:
Notes payable and finance leases, net of current maturities	1,139					207
Operating lease liabilities, net of current maturities	2,654					3,331
Deferred tax liabilities, net	15					137
Total long-term liabilities	3,808					3,675
Stockholders' equity:
Common stock	308					238
Additional paid-in capital	156,678					155,413
Accumulated earnings (deficit)	(121,534)					(112,469)
Equity of Breckenridge prior to acquisition						7,695
Accumulated other comprehensive income (loss), net	(2,048)					(2,073)
Total stockholders' equity	33,404	$ 28,940	$ 33,121			48,804	$ 51,053	$ 63,586	$ 69,594		$ 62,477
Total liabilities and stockholders' equity	$ 52,901					68,673
Breckenridge Geophysical, LLC
Current assets:
Accounts receivable, net				$ 67
Prepaid expenses and other current assets				56
Property and equipment, net				1,322
Accrued liabilities:
Other				16
Deferred revenue				$ 94
Previously reported
Current assets:
Cash and cash equivalents						13,914
Restricted cash						5,000
Short-term investments						265
Accounts receivable, net						6,945
Employee retention credit receivable						3,035
Prepaid expenses and other current assets						8,876
Total current assets						38,035
Property and equipment, net						18,127
Right-of-use assets						4,010
Intangibles, net						369
Total assets						60,541
Current liabilities:
Accounts payable						4,015
Accrued liabilities:
Payroll costs and other taxes						1,973
Other						1,178
Deferred revenue						7,199
Current maturities of notes payable and finance leases						275
Current maturities of operating lease liabilities						1,118
Total current liabilities						15,758
Long-term liabilities:
Notes payable and finance leases, net of current maturities						207
Operating lease liabilities, net of current maturities						3,331
Deferred tax liabilities, net						136
Total long-term liabilities						3,674
Stockholders' equity:
Common stock						238
Additional paid-in capital						155,413
Accumulated earnings (deficit)						(112,469)
Accumulated other comprehensive income (loss), net						(2,073)
Total stockholders' equity						41,109
Total liabilities and stockholders' equity						60,541
Adjustment \| Breckenridge Geophysical, LLC
Current assets:
Cash and cash equivalents						4,689
Accounts receivable, net						1,027
Prepaid expenses and other current assets						75
Total current assets						5,791
Property and equipment, net						2,341
Total assets						8,132
Current liabilities:
Accounts payable						125
Accrued liabilities:
Payroll costs and other taxes						28
Other						102
Deferred revenue						181
Total current liabilities						436
Long-term liabilities:
Deferred tax liabilities, net						1
Total long-term liabilities						1
Stockholders' equity:
Equity of Breckenridge prior to acquisition						7,695
Total stockholders' equity						7,695
Total liabilities and stockholders' equity						$ 8,132

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Equity Attributable to Breckenridge Prior to Acquisition	Common Stock	Additional Paid-in Capital	Accumulated Earnings (Deficit)	Accumulated Other Comprehensive Income (Loss)	Total
Balance at beginning of period at Dec. 31, 2021		$ 237	$ 155,268	$ (92,018)	$ (1,010)	$ 62,477
Balance at beginning of period (in shares) at Dec. 31, 2021		23,692,379
Increase (Decrease) in Stockholders' Equity
Net income (loss)	$ 1,006			(2,391)		(1,385)
Unrealized income (loss) on foreign exchange rate translation					(233)	(233)
Issuance of common stock under stock compensation plans		$ 1	(1)
Issuance of common stock under stock compensation plans (in shares)		155,000
Stock-based compensation expense			279			279
Shares exchanged for taxes on stock-based compensation			(79)			(79)
Shares exchanged for taxes on stock-based compensation (in shares)		(35,050)
Treasury stock sale			113			113
Deemed contribution of Breckenridge net assets	6,472					6,472
Breckenridge cash contributions prior to acquisition	1,950					1,950
Balance at end of period at Mar. 31, 2022	9,428	$ 238	155,580	(94,409)	(1,243)	69,594
Balance at end of period (in shares) at Mar. 31, 2022		23,812,329
Balance at beginning of period at Dec. 31, 2021		$ 237	155,268	(92,018)	(1,010)	62,477
Balance at beginning of period (in shares) at Dec. 31, 2021		23,692,379
Increase (Decrease) in Stockholders' Equity
Net income (loss)						(15,876)
Deemed distributions of Breckenridge net assets not acquired						0
Deemed contribution of Breckenridge net assets						6,472
Balance at end of period at Sep. 30, 2022	7,340	$ 238	155,413	(109,690)	(2,248)	51,053
Balance at end of period (in shares) at Sep. 30, 2022		23,812,329
Balance at beginning of period at Mar. 31, 2022	9,428	$ 238	155,580	(94,409)	(1,243)	69,594
Balance at beginning of period (in shares) at Mar. 31, 2022		23,812,329
Increase (Decrease) in Stockholders' Equity
Net income (loss)	99			(7,678)		(7,579)
Unrealized income (loss) on foreign exchange rate translation					(439)	(439)
Stock-based compensation expense			89			89
Breckenridge cash contributions prior to acquisition	1,921					1,921
Balance at end of period at Jun. 30, 2022	11,448	$ 238	155,669	(102,087)	(1,682)	63,586
Balance at end of period (in shares) at Jun. 30, 2022		23,812,329
Increase (Decrease) in Stockholders' Equity
Cash distributions	(4,799)					(4,799)
Net income (loss)	691			(7,603)		(6,912)
Cash settlement of RSUs			(301)			(301)
Unrealized income (loss) on foreign exchange rate translation					(566)	(566)
Stock-based compensation expense			45			45
Balance at end of period at Sep. 30, 2022	7,340	$ 238	155,413	(109,690)	(2,248)	51,053
Balance at end of period (in shares) at Sep. 30, 2022		23,812,329
Balance at beginning of period at Dec. 31, 2022	7,695	$ 238	155,413	(112,469)	(2,073)	$ 48,804
Balance at beginning of period (in shares) at Dec. 31, 2022		23,812,329				23,812,329
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(976)			563		$ (413)
Unrealized income (loss) on foreign exchange rate translation					(6)	(6)
Issuance of stock for Breckenridge acquisition	(1,335)	$ 12	2,008			685
Issuance of stock for Breckenridge acquisition (in shares)		1,188,235
Excess of purchase price over net assets acquired			(10,565)			(10,565)
Breckenridge cash distributions prior to acquisition	(3,055)					(3,055)
Deemed distributions of Breckenridge net assets not acquired	(2,329)					(2,329)
Balance at end of period at Mar. 31, 2023		$ 250	146,856	(111,906)	(2,079)	33,121
Balance at end of period (in shares) at Mar. 31, 2023		25,000,564
Balance at beginning of period at Dec. 31, 2022	$ 7,695	$ 238	155,413	(112,469)	(2,073)	$ 48,804
Balance at beginning of period (in shares) at Dec. 31, 2022		23,812,329				23,812,329
Increase (Decrease) in Stockholders' Equity
Net income (loss)						$ (10,041)
Deemed distributions of Breckenridge net assets not acquired						(2,329)
Balance at end of period at Sep. 30, 2023		$ 308	156,678	(121,534)	(2,048)	$ 33,404
Balance at end of period (in shares) at Sep. 30, 2023		30,812,329				30,812,329
Balance at beginning of period at Mar. 31, 2023		$ 250	146,856	(111,906)	(2,079)	$ 33,121
Balance at beginning of period (in shares) at Mar. 31, 2023		25,000,564
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(4,430)		(4,430)
Unrealized income (loss) on foreign exchange rate translation					249	249
Balance at end of period at Jun. 30, 2023		$ 250	146,856	(116,336)	(1,830)	28,940
Balance at end of period (in shares) at Jun. 30, 2023		25,000,564
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(5,198)		(5,198)
Unrealized income (loss) on foreign exchange rate translation					(218)	(218)
Issuance of stock for convertible note		$ 58	9,822			9,880
Issuance of stock for convertible note (in shares)		5,811,765
Balance at end of period at Sep. 30, 2023		$ 308	$ 156,678	$ (121,534)	$ (2,048)	$ 33,404
Balance at end of period (in shares) at Sep. 30, 2023		30,812,329				30,812,329

DEBT

9 Months Ended

Sep. 30, 2023

DEBT

DEBT

5. DEBT

Dominion Loan Agreement

On September 30, 2019, the Company entered into a Loan and Security Agreement with Dominion Bank, a Texas state bank (“Dominion Bank”). On September 30, 2023, the Company entered into a Fifth Loan Modification Agreement (the “Fifth Modification Agreement”) to the Loan and Security Agreement (as amended by (i) that certain Loan Modification Agreement dated as of September 30, 2020, (ii) that certain Second Loan Modification Agreement dated as of September 30, 2021, (iii) that certain Third Loan Modification Agreement dated as of September 30, 2022, (iv) that certain Fourth Modification Agreement dated as of March 21, 2023, and (v) the Fifth Modification Agreement, the “Loan Agreement”). The Loan Agreement now provides for a secured revolving credit facility (the “Revolving Credit Facility”) in an amount up to the lesser of (I) an amount equal to the Borrowing Base or (II) $5,000,000. The Company’s obligations under the Loan Agreement are secured by a Certificate of Deposit with Dominion Bank for $5,000,000 (the “Deposit”) in the Company’s collateral account. As of September 30, 2023, the Company has not borrowed any amounts under the Revolving Credit Facility and has approximately $5,000,000 available for withdrawal.

Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 7.75% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 4.75%. From and after September 30, 2023 and so long as the Deposit held by Dominion Bank remains greater than or equal to the indebtedness (the “Financial Covenant Suspension Threshold”), the testing of the financial covenants set forth in the Loan Agreement has been suspended. The financial covenant testing shall resume if and when the Financial Covenant Suspension Threshold is no longer satisfied. The maturity date of the Loan Agreement is September 30, 2024.

Dominion Letters of Credit

As of September 30, 2023, Dominion Bank has issued one letter of credit in the amount of $265,000 to support the Company’s workers compensation insurance. The letter of credit is secured by a certificate of deposit with Dominion Bank.

Convertible Note

The Company previously had a short-term convertible note payable of approximately $9,880,000 payable on or after June 30, 2024 to Wilks upon written demand in accordance with the terms and conditions set forth in the Convertible Note. The Company’s shareholders approved conversion of the Convertible Note during a special meeting held on September 13, 2023. Pursuant to the Purchase Agreement, the Convertible Note was automatically converted into 5,811,765 newly-issued shares of the Company’s common stock following the requisite shareholder approval, and the Convertible Note was thereby extinguished. There were no interest charges associated with the Convertible Note.

Other Indebtedness

As of September 30, 2023, the Company has one short-term note payable to a finance company for various insurance premiums totaling $123,000.

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 September 30, 2023 includes finance leases of $1,527,000.

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 September 30, 2023 and December 31, 2022:

The aggregate maturities of finance leases as of September 30, 2023 are as follows (in thousands):

Interest rates on these leases are 4.85% to 8.74%.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2023

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

7. COMMITMENTS AND CONTINGENCIES

From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. Although the Company cannot predict the outcomes of any such legal proceedings, management believes that the resolution of pending legal actions will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity, as the Company believes it is adequately indemnified and insured.

We are also party to the following legal proceeding: On April 1, 2019, Weatherford International, LLC and Weatherford U.S., L.P. (collectively, “Weatherford”) filed a petition in state district court for Midland County, Texas, in which the Company and eighteen other parties were named as defendants, alleging the Company and/or the other named defendants contributed to or caused contamination of groundwater at and around property owned by Weatherford. Weatherford is seeking declaratory judgment, recovery and contribution for past and future costs incurred in responding to or correcting the contamination at and around the property from each defendant. The Company disputes Weatherford’s allegations with respect to the Company and intends to vigorously defend itself in this case. Subsequent to the filing of the petition, Weatherford filed for bankruptcy protection on July 1, 2019. While the outcome and impact of this legal proceeding on the

Company cannot be predicted with certainty, based on currently available information, management believes that the resolution of this proceeding will not have a material adverse effect on our financial condition, results of operations or liquidity.

Additionally, the Company experiences contractual disputes with its clients from time to time regarding the payment of invoices or other matters. While the Company seeks to minimize these disputes and maintain good relations with its clients, the Company has experienced in the past, and may experience in the future, disputes that could affect its revenues and results of operations in any period.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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	30,812,329	23,812,329
Common stock, shares outstanding	30,812,329	23,812,329

LEASES- Maturities of Lease Liabilities (Details)	Sep. 30, 2023 USD ($)
Operating Leases
October 2023 - September 2024	$ 1,362,000
October 2024 - September 2025	1,129,000
October 2025 - September 2026	1,084,000
October 2026 - September 2027	591,000
October 2027 - September 2028	40,000
Total payments under lease agreements	4,206,000
Less imputed interest	(362,000)
Total lease liabilities	3,844,000
Finance Leases
October 2023 - September 2024	475,000
October 2024 - September 2025	476,000
October 2025 - September 2026	566,000
October 2026 - September 2027	193,000
Total payments under lease agreements	1,710,000
Less imputed interest	(183,000)
Total lease liabilities	$ 1,527,000

NET INCOME (LOSS) PER SHARE - Anti-Dilutive Awards Excluded from Calculation (Details) - shares			3 Months Ended		9 Months Ended
	Sep. 13, 2023	Mar. 24, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of securities excluded from calculation			4,674,680	90,000	3,682,913	196,794
Purchase Agreement
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of shares issued		1,188,235	1,188,235	1,188,235	1,188,235	1,188,235
Convertible note converted into shares	5,811,765
Convertible Note
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of securities excluded from calculation			4,674,680		3,682,913
Restricted stock units
Anti-dilutive Securities Excluded from Calculation of Earnings Per Share
Number of securities excluded from calculation				90,000		196,794

ORGANIZATION AND NATURE OF OPERATIONS

9 Months Ended

Sep. 30, 2023

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.

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION

9 Months Ended

Sep. 30, 2023

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION

10. SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION

Historical financial information for Breckenridge was derived from Breckenridge’s unaudited financial statements. In the opinion of the Company’s management, the financial information of Breckenridge reflects all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The non-cash items associated with the Purchase Agreement (unaudited and in thousands) shown on the Condensed Consolidated Statements of Cash Flows consist of “Deemed distribution (contribution)” and “Acquisition of Breckenridge net assets” and are derived as follows:


Deemed Distribution (Contribution)	Nine Months Ended September 30,
	2023		2022
Deemed distribution (contribution) of short-term investments	$	1,000	$	—
Deemed distribution (contribution) of accounts receivable		1,015		(2,605)
Deemed distribution (contribution) of prepaids and other		1		(133)
Deemed distribution (contribution) of land and buildings		514		(4,726)
Deemed (distribution) contribution of accounts payable		(132)		196
Deemed (distribution) contribution of accrued liabilities		(69)		228
Deemed (distribution) contribution of deferred revenue		—		568
Deemed distribution of Breckenridge net assets not acquired	$	2,329
Deemed contribution of Breckenridge net assets			$	(6,472)


Historical Carrying Value of Assets Acquired	March 24, 2023
Accounts receivable, net	$	67
Prepaid expenses and other current assets		56
Property and equipment, net		1,322
Other accrued liabilities		(16)
Deferred revenue		(94)
Acquisition of Breckenridge net assets	$	1,335

Total consideration for the asset purchase (in thousands) is as follows:


Consideration Paid	March 24, 2023
Common stock issued	$	2,020
Note payable issued		9,880
Purchase price	$	11,900

Because the Transaction constitutes a transaction among entities under common control, the excess purchase price over the historical carrying value of the net assets acquired was recorded as a charge to additional paid in capital. The excess purchase price over the historical carrying value of the assets at the acquisition date (unaudited and in thousands) is as follows:


Excess Purchase Price	March 24, 2023
Purchase price	$	11,900
Historical carrying value of assets acquired		(1,335)
Excess purchase price	$	10,565

The following table reconciles the previously reported Balance Sheet at December 31, 2022 to the current Balance Sheet for the same period:


	December 31, 2022
	Dawson		Breckenridge		Dawson
	Previously Reported				As Adjusted
			(unaudited)		(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	13,914	$	4,689	$	18,603
Restricted cash		5,000		—		5,000
Short-term investments		265		—		265
Accounts receivable, net		6,945		1,027		7,972
Employee retention credit receivable		3,035		—		3,035
Prepaid expenses and other current assets		8,876		75		8,951
Total current assets		38,035		5,791		43,826

Property and equipment, net		18,127		2,341		20,468
Right-of-use assets		4,010		—		4,010
Intangibles, net		369		—		369
Total assets	$	60,541	$	8,132	$	68,673

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	4,015	$	125	$	4,140
Accrued liabilities:
Payroll costs and other taxes		1,973		28		2,001
Other		1,178		102		1,280
Deferred revenue		7,199		181		7,380
Current maturities of notes payable and finance leases		275		—		275
Current maturities of operating lease liabilities		1,118		—		1,118
Total current liabilities		15,758		436		16,194

Long-term liabilities:
Notes payable and finance leases, net of current maturities		207		—		207
Operating lease liabilities, net of current maturities		3,331		—		3,331
Deferred tax liabilities, net		136		1		137
Total long-term liabilities		3,674		1		3,675

Stockholders' equity:
Common stock		238		—		238
Additional paid-in capital		155,413		—		155,413
Accumulated earnings (deficit)		(112,469)		—		(112,469)
Equity of Breckenridge prior to acquisition		—		7,695		7,695
Accumulated other comprehensive income (loss), net		(2,073)		—		(2,073)
Total stockholders' equity		41,109		7,695		48,804

Total liabilities and stockholders' equity	$	60,541	$	8,132	$	68,673

The following tables reconcile the previously reported Statement of Operations for the three and nine months ended September 30, 2022 to the current Statement of Operations for the same periods:


	Three Months Ended September 30, 2022
	Dawson		Breckenridge		Eliminations and		Dawson
	Previously Reported				Other Adjustments		As Adjusted

Operating revenues	$	3,538	$	4,275	$	(384)	$	7,429

Operating costs:
Operating expenses		6,357		2,677		(384)		8,650
General and administrative		2,556		419		—		2,975
Depreciation and amortization		2,373		488		—		2,861
		11,286		3,584		(384)		14,486

Income (loss) from operations		(7,748)		691		—		(7,057)

Other income (expense):
Interest income		90		1		—		91
Interest expense		(4)		—		—		(4)
Other income (expense), net		43		(1)		—		42
Income (loss) before income tax		(7,619)		691		—		(6,928)
Income tax benefit (expense)		16		—		—		16
Net income (loss)		(7,603)		691		—		(6,912)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation		(566)		—		—		(566)

Comprehensive (loss) income	$	(8,169)	$	691	$	—	$	(7,478)
Basic income (loss) per share of common stock	$	(0.32)	$	—	$	0.04	$	(0.28)
Diluted income (loss) per share of common stock	$	(0.32)	$	—	$	0.04	$	(0.28)
Weighted average equivalent common shares outstanding		23,812,329		—		1,188,235		25,000,564
Weighted average equivalent common shares outstanding
- assuming dilution		23,812,329		—		1,188,235		25,000,564


	Nine Months Ended September 30, 2022
	Dawson		Breckenridge		Eliminations and		Dawson
	Previously Reported				Other Adjustments		As Adjusted

Operating revenues	$	22,818	$	13,226	$	(1,916)	$	34,128

Operating costs:
Operating expenses		23,008		8,746		(1,916)		29,838
General and administrative		10,502		1,169		—		11,671
Depreciation and amortization		7,458		1,514		—		8,972
		40,968		11,429		(1,916)		50,481

Income (loss) from operations		(18,150)		1,797		—		(16,353)

Other income (expense):
Interest income		144		3		—		147
Interest expense		(24)		—		—		(24)
Other income (expense), net		358		(4)		—		354
Income (loss) before income tax		(17,672)		1,796		—		(15,876)
Income tax benefit (expense)		—		—		—		—
Net income (loss)		(17,672)		1,796		—		(15,876)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation		(1,238)		—		—		(1,238)

Comprehensive (loss) income	$	(18,910)	$	1,796	$	—	$	(17,114)
Basic income (loss) per share of common stock	$	(0.74)	$	—	$	0.10	$	(0.64)
Diluted income (loss) per share of common stock	$	(0.74)	$	—	$	0.10	$	(0.64)
Weighted average equivalent common shares outstanding		23,772,843		—		1,131,652		24,904,495
Weighted average equivalent common shares outstanding
- assuming dilution		23,772,843		—		1,131,652		24,904,495

The following table reconciles the previously reported Statement of Cash Flows for the nine months ended September 30, 2022 to the current Statement of Cash Flows for the same period:


	Nine Months Ended September 30, 2022
	Dawson		Breckenridge		Dawson
	Previously Reported				As Adjusted

Cash flows from operating activities:
Net income (loss)	$	(17,672)	$	1,796	$	(15,876)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		7,458		1,514		8,972
Operating lease cost		748		—		748
Non-cash compensation		413		—		413
(Gain) loss on disposal of assets		(189)		770		581
Remeasurement and other		(19)		—		(19)
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable		4,428		(989)		3,439
(Increase) decrease in prepaid expenses and other assets		(2,643)		1		(2,642)
Increase (decrease) in accounts payable		1,366		191		1,557
Increase (decrease) in accrued liabilities		(733)		241		(492)
Increase (decrease) in operating lease liabilities		(760)		—		(760)
Increase (decrease) in deferred revenue		3,034		(553)		2,481
Net cash provided by (used in) operating activities		(4,569)		2,971		(1,598)

Cash flows from investing activities:
Capital expenditures		(470)		(167)		(637)
Proceeds from disposal of assets		189		115		304
Net cash provided by (used in) investing activities		(281)		(52)		(333)

Cash flows from financing activities:
Principal payments on notes payable		(1,103)		—		(1,103)
Principal payments on finance leases		(34)		—		(34)
Tax withholdings related to stock-based compensation awards		(79)		—		(79)
Cash settlement of RSUs		(301)				(301)
Sale of treasury stock		113		—		113
Breckenridge cash contributions prior to acquisition		—		(928)		(928)
Net cash provided by (used in) financing activities		(1,404)		(928)		(2,332)

Effect of exchange rate changes on cash and cash equivalents and restricted cash		(523)		—		(523)

Net increase (decrease) in cash and cash equivalents and restricted cash		(6,777)		1,991		(4,786)

Cash and cash equivalents and restricted cash at beginning of period		30,376		—		30,376

Cash and cash equivalents and restricted cash at end of period	$	23,599	$	1,991	$	25,590

Supplemental cash flow information:
Cash paid for interest	$	25	$	—	$	25
Cash received for income taxes	$	7	$	—	$	7

Non-cash operating, investing and financing activities:
Increase (decrease) in right-of-use assets and operating lease liabilities	$	598	$	—	$	598
Financed insurance premiums	$	944	$	—	$	944
Deemed contribution of Breckenridge net assets	$	—	$	(6,472)	$	(6,472)

The following table details the standalone Breckenridge Statement of Operations for the three and nine months ended September 30, 2023:


	Three Months Ended		Nine Months Ended
	September 30, 2023		September 30, 2023

Operating revenues	$	—	$	782

Operating costs:
Operating expenses		—		806
General and administrative		—		438
Depreciation and amortization		—		505
		—		1,749

Income (loss) from operations		—		(967)

Other income (expense):
Interest income		—		2
Interest expense		—		—
Other income (expense), net		—		(11)
Income (loss) before income tax		—		(976)
Income tax benefit (expense)		—		—
Net income (loss)	$	—	$	(976)

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

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
INCOME TAXES (Details)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INCOME TAXES
Effective tax rate (as percent)	(0.10%)	0.20%	0.90%	0.00%

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 07, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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		30,812,329
Entity Central Index Key	0000799165
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Amendment Flag	false

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION (Tables)

9 Months Ended

Sep. 30, 2023

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION

Schedule of non-cash items associated with the Purchase Agreement


Deemed Distribution (Contribution)	Nine Months Ended September 30,
	2023		2022
Deemed distribution (contribution) of short-term investments	$	1,000	$	—
Deemed distribution (contribution) of accounts receivable		1,015		(2,605)
Deemed distribution (contribution) of prepaids and other		1		(133)
Deemed distribution (contribution) of land and buildings		514		(4,726)
Deemed (distribution) contribution of accounts payable		(132)		196
Deemed (distribution) contribution of accrued liabilities		(69)		228
Deemed (distribution) contribution of deferred revenue		—		568
Deemed distribution of Breckenridge net assets not acquired	$	2,329
Deemed contribution of Breckenridge net assets			$	(6,472)


Historical Carrying Value of Assets Acquired	March 24, 2023
Accounts receivable, net	$	67
Prepaid expenses and other current assets		56
Property and equipment, net		1,322
Other accrued liabilities		(16)
Deferred revenue		(94)
Acquisition of Breckenridge net assets	$	1,335

Schedule of consideration paid


Consideration Paid	March 24, 2023
Common stock issued	$	2,020
Note payable issued		9,880
Purchase price	$	11,900

Schedule of excess purchase price


Excess Purchase Price	March 24, 2023
Purchase price	$	11,900
Historical carrying value of assets acquired		(1,335)
Excess purchase price	$	10,565

Schedule of reconciliation of previously reported to the current financial statements

The following table reconciles the previously reported Balance Sheet at December 31, 2022 to the current Balance Sheet for the same period:


	December 31, 2022
	Dawson		Breckenridge		Dawson
	Previously Reported				As Adjusted
			(unaudited)		(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	13,914	$	4,689	$	18,603
Restricted cash		5,000		—		5,000
Short-term investments		265		—		265
Accounts receivable, net		6,945		1,027		7,972
Employee retention credit receivable		3,035		—		3,035
Prepaid expenses and other current assets		8,876		75		8,951
Total current assets		38,035		5,791		43,826

Property and equipment, net		18,127		2,341		20,468
Right-of-use assets		4,010		—		4,010
Intangibles, net		369		—		369
Total assets	$	60,541	$	8,132	$	68,673

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	4,015	$	125	$	4,140
Accrued liabilities:
Payroll costs and other taxes		1,973		28		2,001
Other		1,178		102		1,280
Deferred revenue		7,199		181		7,380
Current maturities of notes payable and finance leases		275		—		275
Current maturities of operating lease liabilities		1,118		—		1,118
Total current liabilities		15,758		436		16,194

Long-term liabilities:
Notes payable and finance leases, net of current maturities		207		—		207
Operating lease liabilities, net of current maturities		3,331		—		3,331
Deferred tax liabilities, net		136		1		137
Total long-term liabilities		3,674		1		3,675

Stockholders' equity:
Common stock		238		—		238
Additional paid-in capital		155,413		—		155,413
Accumulated earnings (deficit)		(112,469)		—		(112,469)
Equity of Breckenridge prior to acquisition		—		7,695		7,695
Accumulated other comprehensive income (loss), net		(2,073)		—		(2,073)
Total stockholders' equity		41,109		7,695		48,804

Total liabilities and stockholders' equity	$	60,541	$	8,132	$	68,673

The following tables reconcile the previously reported Statement of Operations for the three and nine months ended September 30, 2022 to the current Statement of Operations for the same periods:


	Three Months Ended September 30, 2022
	Dawson		Breckenridge		Eliminations and		Dawson
	Previously Reported				Other Adjustments		As Adjusted

Operating revenues	$	3,538	$	4,275	$	(384)	$	7,429

Operating costs:
Operating expenses		6,357		2,677		(384)		8,650
General and administrative		2,556		419		—		2,975
Depreciation and amortization		2,373		488		—		2,861
		11,286		3,584		(384)		14,486

Income (loss) from operations		(7,748)		691		—		(7,057)

Other income (expense):
Interest income		90		1		—		91
Interest expense		(4)		—		—		(4)
Other income (expense), net		43		(1)		—		42
Income (loss) before income tax		(7,619)		691		—		(6,928)
Income tax benefit (expense)		16		—		—		16
Net income (loss)		(7,603)		691		—		(6,912)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation		(566)		—		—		(566)

Comprehensive (loss) income	$	(8,169)	$	691	$	—	$	(7,478)
Basic income (loss) per share of common stock	$	(0.32)	$	—	$	0.04	$	(0.28)
Diluted income (loss) per share of common stock	$	(0.32)	$	—	$	0.04	$	(0.28)
Weighted average equivalent common shares outstanding		23,812,329		—		1,188,235		25,000,564
Weighted average equivalent common shares outstanding
- assuming dilution		23,812,329		—		1,188,235		25,000,564


	Nine Months Ended September 30, 2022
	Dawson		Breckenridge		Eliminations and		Dawson
	Previously Reported				Other Adjustments		As Adjusted

Operating revenues	$	22,818	$	13,226	$	(1,916)	$	34,128

Operating costs:
Operating expenses		23,008		8,746		(1,916)		29,838
General and administrative		10,502		1,169		—		11,671
Depreciation and amortization		7,458		1,514		—		8,972
		40,968		11,429		(1,916)		50,481

Income (loss) from operations		(18,150)		1,797		—		(16,353)

Other income (expense):
Interest income		144		3		—		147
Interest expense		(24)		—		—		(24)
Other income (expense), net		358		(4)		—		354
Income (loss) before income tax		(17,672)		1,796		—		(15,876)
Income tax benefit (expense)		—		—		—		—
Net income (loss)		(17,672)		1,796		—		(15,876)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation		(1,238)		—		—		(1,238)

Comprehensive (loss) income	$	(18,910)	$	1,796	$	—	$	(17,114)
Basic income (loss) per share of common stock	$	(0.74)	$	—	$	0.10	$	(0.64)
Diluted income (loss) per share of common stock	$	(0.74)	$	—	$	0.10	$	(0.64)
Weighted average equivalent common shares outstanding		23,772,843		—		1,131,652		24,904,495
Weighted average equivalent common shares outstanding
- assuming dilution		23,772,843		—		1,131,652		24,904,495

The following table reconciles the previously reported Statement of Cash Flows for the nine months ended September 30, 2022 to the current Statement of Cash Flows for the same period:


	Nine Months Ended September 30, 2022
	Dawson		Breckenridge		Dawson
	Previously Reported				As Adjusted

Cash flows from operating activities:
Net income (loss)	$	(17,672)	$	1,796	$	(15,876)

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		7,458		1,514		8,972
Operating lease cost		748		—		748
Non-cash compensation		413		—		413
(Gain) loss on disposal of assets		(189)		770		581
Remeasurement and other		(19)		—		(19)
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable		4,428		(989)		3,439
(Increase) decrease in prepaid expenses and other assets		(2,643)		1		(2,642)
Increase (decrease) in accounts payable		1,366		191		1,557
Increase (decrease) in accrued liabilities		(733)		241		(492)
Increase (decrease) in operating lease liabilities		(760)		—		(760)
Increase (decrease) in deferred revenue		3,034		(553)		2,481
Net cash provided by (used in) operating activities		(4,569)		2,971		(1,598)

Cash flows from investing activities:
Capital expenditures		(470)		(167)		(637)
Proceeds from disposal of assets		189		115		304
Net cash provided by (used in) investing activities		(281)		(52)		(333)

Cash flows from financing activities:
Principal payments on notes payable		(1,103)		—		(1,103)
Principal payments on finance leases		(34)		—		(34)
Tax withholdings related to stock-based compensation awards		(79)		—		(79)
Cash settlement of RSUs		(301)				(301)
Sale of treasury stock		113		—		113
Breckenridge cash contributions prior to acquisition		—		(928)		(928)
Net cash provided by (used in) financing activities		(1,404)		(928)		(2,332)

Effect of exchange rate changes on cash and cash equivalents and restricted cash		(523)		—		(523)

Net increase (decrease) in cash and cash equivalents and restricted cash		(6,777)		1,991		(4,786)

Cash and cash equivalents and restricted cash at beginning of period		30,376		—		30,376

Cash and cash equivalents and restricted cash at end of period	$	23,599	$	1,991	$	25,590

Supplemental cash flow information:
Cash paid for interest	$	25	$	—	$	25
Cash received for income taxes	$	7	$	—	$	7

Non-cash operating, investing and financing activities:
Increase (decrease) in right-of-use assets and operating lease liabilities	$	598	$	—	$	598
Financed insurance premiums	$	944	$	—	$	944
Deemed contribution of Breckenridge net assets	$	—	$	(6,472)	$	(6,472)

Schedule of standalone Breckenridge Statement of Operations

The following table details the standalone Breckenridge Statement of Operations for the three and nine months ended September 30, 2023:


	Three Months Ended		Nine Months Ended
	September 30, 2023		September 30, 2023

Operating revenues	$	—	$	782

Operating costs:
Operating expenses		—		806
General and administrative		—		438
Depreciation and amortization		—		505
		—		1,749

Income (loss) from operations		—		(967)

Other income (expense):
Interest income		—		2
Interest expense		—		—
Other income (expense), net		—		(11)
Income (loss) before income tax		—		(976)
Income tax benefit (expense)		—		—
Net income (loss)	$	—	$	(976)

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Excess Purchase Price (Details) - Breckenridge $ in Thousands	Mar. 24, 2023 USD ($)
Asset Acquisition [Line Items]
Purchase price	$ 11,900
Historical carrying value of assets acquired	(1,335)
Excess purchase price	$ 10,565

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2023

SUBSEQUENT EVENTS.

SUBSEQUENT EVENTS

11. SUBSEQUENT EVENTS

None.

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2023

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION

Schedule of operating revenues disaggregated by geographic region

The following table presents the Company’s operating revenues (unaudited and in thousands) disaggregated by geographic region:


	Three Months Ended September 30,				Nine Months Ended September 30,
		2023	2022 (as adjusted)			2023	2022 (as adjusted)
Operating Revenues
United States	$	22,947	$	7,353	$	61,859	$	22,377
Canada		14		76		10,729		11,751
Total	$	22,961	$	7,429	$	72,588	$	34,128

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
NET INCOME (LOSS) PER SHARE
Net income (loss)	$ (5,198)	$ (4,430)	$ (413)	$ (6,912)	$ (7,579)	$ (1,385)	$ (10,041)	$ (15,876)
Weighted average common shares outstanding:
Basic	26,137,648			25,000,564			25,383,757	24,904,495
Diluted	26,137,648			25,000,564			25,383,757	24,904,495
Basic income (loss) per share of common stock (in dollars per share)	$ (0.20)			$ (0.28)			$ (0.40)	$ (0.64)
Diluted income (loss) per share of common stock (in dollars per share)	$ (0.20)			$ (0.28)			$ (0.40)	$ (0.64)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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-Name Accounting Standards Codification
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+ Details

SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION - Disaggregated Revenues (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)
Number of business segments \| segment			1
Operating Revenues	$ 22,961	$ 7,429	$ 72,588	$ 34,128
United States
Operating Revenues	22,947	7,353	61,859	22,377
Canada
Operating Revenues	$ 14	$ 76	$ 10,729	$ 11,751

- 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.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Jan. 01, 2023	Dec. 31, 2022	Jan. 01, 2022
Deferred costs					$ 5,433		$ 972
Total deferred costs amortized			$ 31,429	$ 2,661
Deferred revenue	$ 6,748	$ 4,378	6,748	4,378	$ 7,380	$ 7,380	$ 1,344
Revenue recognized	198	0	7,121	936
Prepaid expenses and other current assets
Deferred costs	$ 4,226	$ 3,636	$ 4,226	$ 3,636

INCOME TAXES

9 Months Ended

Sep. 30, 2023

INCOME TAXES

INCOME TAXES

9. INCOME TAXES

For the three and nine months ended September 30, 2023, the Company’s effective tax rates were -0.1% and 0.9%, respectively. The Company’s effective tax rates were 0.2% and 0.0% for the third quarter and first nine months of 2022, respectively. The Company’s nominal or negative effective tax rate for the periods above was due to the presence of net operating loss carryovers and adjustments to the valuation allowance on deferred tax assets.

The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit the use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over an extended amount of time. Such objective evidence limits the ability to consider other subjective evidence, such as projections for taxable earnings.

The income tax expense for the three and benefit for the nine months ended September 30, 2023 does 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 three and nine months ended September 30, 2023 and 2022. 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.

- 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.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2023

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, 2022.

Asset Purchase Agreement. On March 24, 2023, the Company entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Wilks Brothers, LLC (“Wilks”) and Breckenridge Geophysical, LLC (“Breckenridge”), a wholly owned subsidiary of Wilks. Pursuant to the Purchase Agreement, the Company completed the purchase of substantially all of the Breckenridge assets related to seismic data acquisition services other than its multi-client data library, in exchange for a combination of equity consideration and a convertible note (the “Transaction”). While the Transaction was structured as an asset purchase, the Company’s financial presentation reflects combined results of the two companies as if the combination occurred on January 14, 2022, the date Wilks became the majority shareholder of the Company. This is due to the fact that both the Company and Breckenridge were under Wilks’ control from January 14, 2022 forward. The presentation is required as a combination of entities under common control. As part of the Purchase Agreement, in addition to the 1,188,235 shares of our common stock issued to Wilks at closing, we entered into a convertible note to deliver approximately 5.8 million shares of common stock to Wilks after the Company receives shareholder approval of the proposal to issue the shares upon conversion of the convertible note in accordance with NASDAQ Listing Rule 5635 (the “Convertible Note”). The shareholders approved conversion of the Convertible Note during a special meeting held on September 13, 2023. Pursuant to the Purchase Agreement, the Convertible Note in the amount of $9,880,000.50 was automatically converted into 5,811,765 newly-issued shares of the Company’s common stock following the requisite shareholder approval, and the Convertible Note was thereby extinguished.

The Purchase Agreement has been accounted for as a transfer of net assets between entities under common control in a manner similar to a pooling of interests. The Company’s historical consolidated financial statements have been retrospectively revised to reflect the effects on financial position, cash flows, and results of operations attributable to the activities of Breckenridge for all periods presented and are thus marked “(as adjusted)”. The effects of transactions in Breckenridge’s equity prior to the Transaction have been presented as a separate component of stockholders’ equity on the Condensed Consolidated Balance Sheets and on the Condensed Consolidated Statements of Stockholders’ Equity to demonstrate the effects of those transactions on the Company’s historical consolidated financial statements.

Significant Accounting Policies

Principles of Consolidation. The condensed consolidated financial statements for the three and nine months ended September 30, 2023 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. Additionally, all transactions between the Company and Breckenridge for the year ended December 31, 2022 are retrospectively being eliminated on a combined, as pooled basis. For the year ended December 31, 2022, the Company recorded approximately $2,200,000 of related party revenue from Breckenridge. For the three and nine months ended September 30, 2022, the Company recorded related party revenue from Breckenridge of approximately $384,000 and $1,916,000, respectively.

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 September 30, 2023 and December 31, 2022.

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, the fair value of assets acquired in a business combination, or historical carrying value of assets acquired from Breckenridge 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

None.

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Statement of comprehensive loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating revenues	$ 22,961			$ 7,429			$ 72,588	$ 34,128
Operating costs:
Operating expenses	24,144			8,650			67,832	29,838
General and administrative	2,495			2,975			8,971	11,671
Depreciation and amortization	2,014			2,861			6,827	8,972
Total cost and expenses	28,653			14,486			83,630	50,481
Income (loss) from operations	(5,692)			(7,057)			(11,042)	(16,353)
Other income (expense):
Interest income	192			91			436	147
Interest expense	(22)			(4)			(53)	(24)
Other income (expense), net	327			42			522	354
Income (loss) before income tax	(5,195)			(6,928)			(10,137)	(15,876)
Income tax benefit (expense):	(3)			16			96
Net income (loss)	(5,198)	$ (4,430)	$ (413)	(6,912)	$ (7,579)	$ (1,385)	(10,041)	(15,876)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation	(218)			(566)			25	(1,238)
Comprehensive (loss) income	$ (5,416)			$ (7,478)			$ (10,016)	$ (17,114)
Basic income (loss) per share of common stock (in dollars per share)	$ (0.20)			$ (0.28)			$ (0.40)	$ (0.64)
Diluted income (loss) per share of common stock (in dollars per share)	$ (0.20)			$ (0.28)			$ (0.40)	$ (0.64)
Weighted average equivalent common shares outstanding (in shares)	26,137,648			25,000,564			25,383,757	24,904,495
Weighted average equivalent common shares outstanding - assuming dilution (in shares)	26,137,648			25,000,564			25,383,757	24,904,495
Eliminations and Other Adjustments
Operating revenues				$ (384)				$ (1,916)
Operating costs:
Operating expenses				(384)				(1,916)
Total cost and expenses				$ (384)				$ (1,916)
Other comprehensive income (loss):
Basic income (loss) per share of common stock (in dollars per share)				$ 0.04				$ 0.10
Diluted income (loss) per share of common stock (in dollars per share)				$ 0.04				$ 0.10
Weighted average equivalent common shares outstanding (in shares)				1,188,235				1,131,652
Weighted average equivalent common shares outstanding - assuming dilution (in shares)				1,188,235				1,131,652
Previously reported
Operating revenues				$ 3,538				$ 22,818
Operating costs:
Operating expenses				6,357				23,008
General and administrative				2,556				10,502
Depreciation and amortization				2,373				7,458
Total cost and expenses				11,286				40,968
Income (loss) from operations				(7,748)				(18,150)
Other income (expense):
Interest income				90				144
Interest expense				(4)				(24)
Other income (expense), net				43				358
Income (loss) before income tax				(7,619)				(17,672)
Income tax benefit (expense):				16
Net income (loss)				(7,603)				(17,672)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation				(566)				(1,238)
Comprehensive (loss) income				$ (8,169)				$ (18,910)
Basic income (loss) per share of common stock (in dollars per share)				$ (0.32)				$ (0.74)
Diluted income (loss) per share of common stock (in dollars per share)				$ (0.32)				$ (0.74)
Weighted average equivalent common shares outstanding (in shares)				23,812,329				23,772,843
Weighted average equivalent common shares outstanding - assuming dilution (in shares)				23,812,329				23,772,843
Adjustment \| Breckenridge Geophysical, LLC
Operating revenues				$ 4,275				$ 13,226
Operating costs:
Operating expenses				2,677				8,746
General and administrative				419				1,169
Depreciation and amortization				488				1,514
Total cost and expenses				3,584				11,429
Income (loss) from operations				691				1,797
Other income (expense):
Interest income				1				3
Other income (expense), net				(1)				(4)
Income (loss) before income tax				691				1,796
Net income (loss)				691				1,796
Other comprehensive income (loss):
Comprehensive (loss) income				$ 691				$ 1,796

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 13,891	$ 18,603
Restricted cash	5,000	5,000
Short-term investments	265	265
Accounts receivable, net	5,953	7,972
Employee retention credit receivable		3,035
Prepaid expenses and other current assets	7,507	8,951
Total current assets	32,616	43,826
Property and equipment, net	16,451	20,468
Right-of-use assets	3,466	4,010
Intangibles, net	368	369
Total assets	52,901	68,673
Current liabilities:
Accounts payable	5,458	4,140
Accrued liabilities:
Payroll costs and other taxes	718	2,001
Other	1,064	1,280
Deferred revenue	6,748	7,380
Current maturities of notes payable and finance leases	511	275
Current maturities of operating lease liabilities	1,190	1,118
Total current liabilities	15,689	16,194
Long-term liabilities:
Notes payable and finance leases, net of current maturities	1,139	207
Operating lease liabilities, net of current maturities	2,654	3,331
Deferred tax liabilities, net	15	137
Total long-term liabilities	3,808	3,675
Commitments and contingencies
Stockholders' equity:
Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding
Common stock-par value $0.01 per share; 35,000,000 shares authorized, 30,812,329 and 23,812,329 shares issued, and 30,812,329 and 23,812,329 shares outstanding at September 30, 2023 and December 31, 2022, respectively	308	238
Additional paid-in capital	156,678	155,413
Accumulated earnings (deficit)	(121,534)	(112,469)
Equity of Breckenridge prior to acquisition		7,695
Accumulated other comprehensive income (loss), net	(2,048)	(2,073)
Total stockholders' equity	33,404	48,804
Total liabilities and stockholders' equity	$ 52,901	$ 68,673

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Statement of operations (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating revenues	$ 22,961			$ 7,429			$ 72,588	$ 34,128
Operating costs:
Operating expenses	24,144			8,650			67,832	29,838
General and administrative	2,495			2,975			8,971	11,671
Depreciation and amortization	2,014			2,861			6,827	8,972
Total cost and expenses	28,653			14,486			83,630	50,481
Income (loss) from operations	(5,692)			(7,057)			(11,042)	(16,353)
Other income (expense):
Interest income	192			91			436	147
Interest expense	(22)			(4)			(53)	(24)
Other income (expense), net	327			42			522	354
Income (loss) before income tax	(5,195)			(6,928)			(10,137)	(15,876)
Income tax benefit (expense):	(3)			16			96
Net income (loss)	$ (5,198)	$ (4,430)	$ (413)	$ (6,912)	$ (7,579)	$ (1,385)	(10,041)	$ (15,876)
Breckenridge
Operating revenues							782
Operating costs:
Operating expenses							806
General and administrative							438
Depreciation and amortization							505
Total cost and expenses							1,749
Income (loss) from operations							(967)
Other income (expense):
Interest income							2
Other income (expense), net							(11)
Income (loss) before income tax							(976)
Net income (loss)							$ (976)

LEASES (Tables)

9 Months Ended

Sep. 30, 2023

LEASES

Schedule of maturities of lease liabilities - Operating Leases

Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):


	Operating Leases		Finance Leases
October 2023 - September 2024	$	1,362	$	475
October 2024 - September 2025		1,129		476
October 2025 - September 2026		1,084		566
October 2026 - September 2027		591		193
October 2027 - September 2028		40		—
Thereafter		—		—
Total payments under lease agreements		4,206		1,710

Less imputed interest		(362)		(183)

Total lease liabilities	$	3,844	$	1,527

Schedule of maturities of lease liabilities - Finance Leases

Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):


	Operating Leases		Finance Leases
October 2023 - September 2024	$	1,362	$	475
October 2024 - September 2025		1,129		476
October 2025 - September 2026		1,084		566
October 2026 - September 2027		591		193
October 2027 - September 2028		40		—
Thereafter		—		—
Total payments under lease agreements		4,206		1,710

Less imputed interest		(362)		(183)

Total lease liabilities	$	3,844	$	1,527

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income (loss)	$ (10,041)	$ (15,876)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	6,827	8,972
Operating lease cost	827	748
Non-cash compensation		413
Deferred income tax (benefit) expense	(121)	0
Bad debt expense	68	0
(Gain) loss on disposal of assets	(72)	581
Remeasurement and other	(2)	(19)
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable	960	3,439
(Increase) decrease in employee retention credit receivable	3,035	0
(Increase) decrease in prepaid expenses and other assets	1,882	(2,642)
Increase (decrease) in accounts payable	2,052	1,557
Increase (decrease) in accrued liabilities	(1,431)	(492)
Increase (decrease) in operating lease liabilities	(888)	(760)
Increase (decrease) in deferred revenue	(634)	2,481
Net cash provided by (used in) operating activities	2,462	(1,598)
Cash flows from investing activities:
Capital expenditures, net of non-cash capital expenditures summarized below (if applicable)	(2,623)	(637)
Acquisition of short-term investments	(1,000)	0
Proceeds from disposal of assets	173	304
Net cash provided by (used in) investing activities	(3,450)	(333)
Cash flows from financing activities:
Principal payments on notes payable	(521)	(1,103)
Principal payments on finance leases	(150)	(34)
Tax withholdings related to stock-based compensation awards		(79)
Cash settlement of RSUs		(301)
Sale of treasury stock		113
Breckenridge cash contributions (distributions) prior to acquisition	(3,055)	(928)
Net cash provided by (used in) financing activities	(3,726)	(2,332)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	2	(523)
Net increase (decrease) in cash and cash equivalents and restricted cash	(4,712)	(4,786)
Cash and cash equivalents and restricted cash at beginning of period	23,603	30,376
Cash and cash equivalents and restricted cash at end of period	18,891	25,590
Supplemental cash flow information:
Cash paid for interest	55	25
Cash received for income taxes		7
Non-cash operating, investing and financing activities:
Increase (decrease) in accrued purchases of property and equipment	(605)	0
Finance leases incurred	1,409	0
Increase in right-of-use assets and operating lease liabilities	283	598
Financed insurance premiums	440	944
Deemed distribution of Breckenridge net assets not acquired	2,329	0
Deemed contribution of Breckenridge net assets		(6,472)
Acquisition of net assets of Breckenridge	$ (1,335)	$ 0

DEBT (Tables)

9 Months Ended

Sep. 30, 2023

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 September 30, 2023 and December 31, 2022:

Schedule of aggregate maturities of finance leases

The aggregate maturities of finance leases as of September 30, 2023 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

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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

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+ Details

NET INCOME (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2023

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022 (as adjusted)		2023		2022 (as adjusted)
Net income (loss)	$	(5,198)	$	(6,912)	$	(10,041)	$	(15,876)
Weighted average common shares outstanding
Basic		26,137,648		25,000,564		25,383,757		24,904,495
Dilutive common stock options, restricted stock unit awards and restricted stock awards		—		—		—		—
Diluted		26,137,648		25,000,564		25,383,757		24,904,495
Basic income (loss) per share of common stock	$	(0.20)	$	(0.28)	$	(0.40)	$	(0.64)
Diluted income (loss) per share of common stock	$	(0.20)	$	(0.28)	$	(0.40)	$	(0.64)

Schedule of weighted average numbers of stock options, restricted stock unit awards, and restricted stock awards that have been excluded from the calculation of diluted loss per share of common stock

The following weighted average numbers of stock options, restricted stock unit awards and restricted stock awards have been excluded from the calculation of diluted loss per share of common stock, as their effect would be anti-dilutive for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022 (as adjusted)		2023		2022 (as adjusted)
Convertible Note		4,674,680		—		3,682,913		—
Restricted stock units		—		90,000		—		196,794
Restricted stock awards		—		—		—		—
Stock options		—		—		—		—
Total		4,674,680		90,000		3,682,913		196,794

DEBT - Maturities (Details)	Sep. 30, 2023 USD ($)
Aggregate maturities of finance leases
October 2023 - September 2024	$ 389,000
October 2024 - September 2025	414,000
October 2025 - September 2026	536,000
October 2026 - September 2027	188,000
Obligations under finance leases	$ 1,527,000
Minimum
Aggregate maturities of finance leases
Interest rate on leases	4.85%
Maximum
Aggregate maturities of finance leases
Interest rate on leases	8.74%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation. The condensed consolidated financial statements for the three and nine months ended September 30, 2023 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. Additionally, all transactions between the Company and Breckenridge for the year ended December 31, 2022 are retrospectively being eliminated on a combined, as pooled basis. For the year ended December 31, 2022, the Company recorded approximately $2,200,000 of related party revenue from Breckenridge. For the three and nine months ended September 30, 2022, the Company recorded related party revenue from Breckenridge of approximately $384,000 and $1,916,000, respectively.
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 September 30, 2023 and December 31, 2022.
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, the fair value of assets acquired in a business combination, or historical carrying value of assets acquired from Breckenridge 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 None.

DEBT (Details)		9 Months Ended
DEBT (Details)	Sep. 13, 2023 USD ($)	Sep. 30, 2023 USD ($) item	Dec. 31, 2022 USD ($)
DEBT
Deposit		$ 5,000,000	$ 5,000,000
Finance lease		$ 1,527,000
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]		Long-term Debt and Capital Lease Obligations, Long-term Debt and Capital Lease Obligations, Current
Dominion Loan Agreement
DEBT
Maximum borrowing capacity		$ 5,000,000
Deposit		5,000,000
Available for withdrawal		$ 5,000,000
Dominion Loan Agreement \| Minimum
DEBT
Interest rate (as a percent)		4.75%
Dominion Loan Agreement \| Maximum
DEBT
Interest rate (as a percent)		7.75%
Dominion Letters of Credit
DEBT
Number of letters of credit \| item		1
Amount of letter of credit		$ 265,000
Convertible Note
DEBT
Convertible note payable to controlling shareholder	$ 9,880,000
Number of shares on which convertible note may be converted	5,811,765
Interest charges		0
Notes payable to finance companies for insurance
DEBT
Aggregate principal amount outstanding		$ 123,000	$ 205,000
Interest rate (as a percent)		7.99%	7.99%
Number of notes payable \| item		1

DEBT - Aggregate principal amount and interest rates (Details) - Notes payable to finance companies for insurance - USD ($)	Sep. 30, 2023	Dec. 31, 2022
DEBT
Aggregate principal amount outstanding	$ 123,000	$ 205,000
Interest rate (as a percent)	7.99%	7.99%

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Historical Carrying Value of Assets Acquired (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Mar. 24, 2023	Jan. 01, 2023	Dec. 31, 2022	Sep. 30, 2022	Jan. 01, 2022
Asset Acquisition [Line Items]
Accounts receivable, net	$ 5,953			$ 7,972
Prepaid expenses and other current assets	7,507			8,951
Property and equipment, net	16,451			20,468
Other accrued liabilities	(1,064)			(1,280)
Deferred revenue	$ (6,748)		$ (7,380)	$ (7,380)	$ (4,378)	$ (1,344)
Breckenridge
Asset Acquisition [Line Items]
Accounts receivable, net		$ 67
Prepaid expenses and other current assets		56
Property and equipment, net		1,322
Other accrued liabilities		(16)
Deferred revenue		(94)
Acquisition of Breckenridge net assets		$ 1,335

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)			3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 13, 2023	Mar. 24, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Threshold period of past due (in days)					90 days
Allowance for doubtful accounts			$ 250,000		$ 250,000		$ 250,000
Maximum original expected duration of cancelable service contracts (in years)					1 year
Breckenridge Geophysical, LLC
Related party revenue				$ 384,000		$ 1,916,000	$ 2,200,000
Purchase Agreement
Number of shares issued		1,188,235	1,188,235	1,188,235	1,188,235	1,188,235
Number of shares to be issued under convertible notes payable		5,800,000
Convertible note	$ 9,880,000.50
Convertible note converted into shares	5,811,765

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Operating revenues	$ 22,961			$ 7,429			$ 72,588	$ 34,128
Operating costs:
Operating expenses	24,144			8,650			67,832	29,838
General and administrative	2,495			2,975			8,971	11,671
Depreciation and amortization	2,014			2,861			6,827	8,972
Total cost and expenses	28,653			14,486			83,630	50,481
Income (loss) from operations	(5,692)			(7,057)			(11,042)	(16,353)
Other income (expense):
Interest income	192			91			436	147
Interest expense	(22)			(4)			(53)	(24)
Other income (expense), net	327			42			522	354
Income (loss) before income tax	(5,195)			(6,928)			(10,137)	(15,876)
Income tax benefit (expense):	(3)			16			96
Net income (loss)	(5,198)	$ (4,430)	$ (413)	(6,912)	$ (7,579)	$ (1,385)	(10,041)	(15,876)
Other comprehensive income (loss):
Net unrealized income (loss) on foreign exchange rate translation	(218)			(566)			25	(1,238)
Comprehensive income (loss)	$ (5,416)			$ (7,478)			$ (10,016)	$ (17,114)
Basic income (loss) per share of common stock (in dollars per share)	$ (0.20)			$ (0.28)			$ (0.40)	$ (0.64)
Diluted income (loss) per share of common stock (in dollars per share)	$ (0.20)			$ (0.28)			$ (0.40)	$ (0.64)
Weighted average equivalent common shares outstanding (in shares)	26,137,648			25,000,564			25,383,757	24,904,495
Weighted average equivalent common shares outstanding - assuming dilution (in shares)	26,137,648			25,000,564			25,383,757	24,904,495

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Statement of cash flows (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income (loss)				$ (10,041)	$ (15,876)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	$ 2,014	$ 2,861		6,827	8,972
Operating lease cost				827	748
Non-cash compensation					413
(Gain) loss on disposal of assets				(72)	581
Remeasurement and other				(2)	(19)
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable				960	3,439
(Increase) decrease in prepaid expenses and other assets				1,882	(2,642)
Increase (decrease) in accounts payable				2,052	1,557
Increase (decrease) in accrued liabilities				(1,431)	(492)
Increase (decrease) in operating lease liabilities				(888)	(760)
Increase (decrease) in deferred revenue				(634)	2,481
Net cash provided by (used in) operating activities				2,462	(1,598)
Cash flows from investing activities:
Capital expenditures				(2,623)	(637)
Proceeds from disposal of assets				173	304
Net cash provided by (used in) investing activities				(3,450)	(333)
Cash flows from financing activities:
Principal payments on notes payable				(521)	(1,103)
Principal payments on finance leases				(150)	(34)
Tax withholdings related to stock-based compensation awards					(79)
Cash settlement of RSUs					(301)
Sale of treasury stock					113
Breckenridge cash contributions prior to acquisition				(3,055)	(928)
Net cash provided by (used in) financing activities				(3,726)	(2,332)
Effect of exchange rate changes on cash and cash equivalents and restricted cash				2	(523)
Net increase (decrease) in cash and cash equivalents and restricted cash				(4,712)	(4,786)
Cash and cash equivalents and restricted cash at beginning of period			$ 30,376	23,603	30,376
Cash and cash equivalents and restricted cash at end of period	$ 18,891	25,590		18,891	25,590
Supplemental cash flow information:
Cash paid for interest				55	25
Cash received for income taxes					7
Non-cash operating, investing and financing activities:
Increase (decrease) in right-of-use assets and operating lease liabilities				283	598
Financed insurance premiums				$ 440	944
Deemed contribution of Breckenridge net assets			(6,472)		(6,472)
Breckenridge Geophysical, LLC
Non-cash operating, investing and financing activities:
Deemed contribution of Breckenridge net assets					(6,472)
Previously reported
Cash flows from operating activities:
Net income (loss)					(17,672)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		2,373			7,458
Operating lease cost					748
Non-cash compensation					413
(Gain) loss on disposal of assets					(189)
Remeasurement and other					(19)
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable					4,428
(Increase) decrease in prepaid expenses and other assets					(2,643)
Increase (decrease) in accounts payable					1,366
Increase (decrease) in accrued liabilities					(733)
Increase (decrease) in operating lease liabilities					(760)
Increase (decrease) in deferred revenue					3,034
Net cash provided by (used in) operating activities					(4,569)
Cash flows from investing activities:
Capital expenditures					(470)
Proceeds from disposal of assets					189
Net cash provided by (used in) investing activities					(281)
Cash flows from financing activities:
Principal payments on notes payable					(1,103)
Principal payments on finance leases					(34)
Tax withholdings related to stock-based compensation awards					(79)
Cash settlement of RSUs					(301)
Sale of treasury stock					113
Net cash provided by (used in) financing activities					(1,404)
Effect of exchange rate changes on cash and cash equivalents and restricted cash					(523)
Net increase (decrease) in cash and cash equivalents and restricted cash					(6,777)
Cash and cash equivalents and restricted cash at beginning of period			$ 30,376		30,376
Cash and cash equivalents and restricted cash at end of period		23,599			23,599
Supplemental cash flow information:
Cash paid for interest					25
Cash received for income taxes					7
Non-cash operating, investing and financing activities:
Increase (decrease) in right-of-use assets and operating lease liabilities					598
Financed insurance premiums					944
Adjustment \| Breckenridge Geophysical, LLC
Cash flows from operating activities:
Net income (loss)					1,796
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		488			1,514
(Gain) loss on disposal of assets					770
Change in operating assets and liabilities:
(Increase) decrease in accounts receivable					(989)
(Increase) decrease in prepaid expenses and other assets					1
Increase (decrease) in accounts payable					191
Increase (decrease) in accrued liabilities					241
Increase (decrease) in deferred revenue					(553)
Net cash provided by (used in) operating activities					2,971
Cash flows from investing activities:
Capital expenditures					(167)
Proceeds from disposal of assets					115
Net cash provided by (used in) investing activities					(52)
Cash flows from financing activities:
Breckenridge cash contributions prior to acquisition					(928)
Net cash provided by (used in) financing activities					(928)
Net increase (decrease) in cash and cash equivalents and restricted cash					1,991
Cash and cash equivalents and restricted cash at end of period		$ 1,991			1,991
Non-cash operating, investing and financing activities:
Deemed contribution of Breckenridge net assets					$ (6,472)

NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2023

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

8. NET INCOME (LOSS) PER SHARE

Basic income (loss) per share is computed by dividing the net income (loss) by the weighted average shares outstanding. Diluted income (loss) per share is computed by dividing the net income (loss) by the weighted average diluted shares outstanding.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022 (as adjusted)		2023		2022 (as adjusted)
Net income (loss)	$	(5,198)	$	(6,912)	$	(10,041)	$	(15,876)
Weighted average common shares outstanding
Basic		26,137,648		25,000,564		25,383,757		24,904,495
Dilutive common stock options, restricted stock unit awards and restricted stock awards		—		—		—		—
Diluted		26,137,648		25,000,564		25,383,757		24,904,495
Basic income (loss) per share of common stock	$	(0.20)	$	(0.28)	$	(0.40)	$	(0.64)
Diluted income (loss) per share of common stock	$	(0.20)	$	(0.28)	$	(0.40)	$	(0.64)

The Company had a net loss for the three and nine months ended September 30, 2023 and 2022. 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 income (loss) per share of common stock for those periods. Basic and diluted weighted average shares outstanding for all periods reflect the issuance of 1,188,235 shares of our common stock to Wilks in relation to the Transaction as if such shares were issued on January 14, 2022.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022 (as adjusted)		2023		2022 (as adjusted)
Convertible Note		4,674,680		—		3,682,913		—
Restricted stock units		—		90,000		—		196,794
Restricted stock awards		—		—		—		—
Stock options		—		—		—		—
Total		4,674,680		90,000		3,682,913		196,794

SUPPLEMENTAL PURCHASE AGREEMENT TRANSACTION INFORMATION - Non-cash asset purchase items (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Asset Acquisition [Line Items]
Deemed distribution of Breckenridge net assets not acquired	$ 2,329		$ 2,329	$ 0
Deemed contribution of Breckenridge net assets		$ (6,472)		(6,472)
Breckenridge
Asset Acquisition [Line Items]
Deemed distribution (contribution) of short-term investments			1,000
Deemed distribution (contribution) of accounts receivable			1,015	(2,605)
Deemed distribution (contribution) of prepaids and other			1	(133)
Deemed distribution (contribution) of land and buildings			514	(4,726)
Deemed (distribution) contribution of accounts payable			(132)	196
Deemed (distribution) contribution of accrued liabilities			(69)	228
Deemed (distribution) contribution of deferred revenue				568
Deemed distribution of Breckenridge net assets not acquired			$ 2,329
Deemed contribution of Breckenridge net assets				$ (6,472)