Dawson(US:DWSN)2025-08-13 20:29Part I. FINANCIAL INFORMATION Financial Statements Unaudited Q2 2025 financials show increased assets and operating cash flow, with a net loss for the period Condensed Consolidated Balance Sheets Total assets reached $45.7 million by June 30, 2025, driven by cash and contract assets, and liabilities increased Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | $16,228 | $1,385 | +$14,843 | | Accounts receivable, net | $3,524 | $9,970 | -$6,446 | | Contract assets | $7,454 | $391 | +$7,063 | | Total current assets | $31,428 | $14,541 | +$16,887 | | Property and equipment, net | $11,330 | $12,979 | -$1,649 | | Total assets | $45,684 | $30,870 | +$14,814 | | Liabilities & Equity | | | | | Deferred revenue | $17,935 | $1,570 | +$16,365 | | Total current liabilities | $26,545 | $9,930 | +$16,615 | | Total liabilities | $29,271 | $13,589 | +$15,682 | | Total stockholders' equity | $16,413 | $17,281 | -$868 | Condensed Consolidated Statements of Operations Q2 2025 net loss was $2.3 million, an improvement, but YTD net loss was $1.4 million from reduced revenues Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $9,851 | $12,512 | $25,929 | $44,096 | | (Loss) Income from Operations | $(2,371) | $(3,769) | $(1,337) | $2,033 | | Net (Loss) Income | $(2,349) | $(3,546) | $(1,357) | $2,300 | | Basic (Loss) Income per Share | $(0.08) | $(0.12) | $(0.04) | $0.07 | Condensed Consolidated Statements of Cash Flows Net cash from operations significantly increased to $16.6 million for H1 2025, primarily due to deferred revenue Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $16,627 | $7,790 | | Net cash used in investing activities | $(305) | $(1,254) | | Net cash used in financing activities | $(1,497) | $(11,053) | | Net increase (decrease) in cash | $14,843 | $(4,614) | | Cash at beginning of period | $1,385 | $15,772 | | Cash at end of period | $16,228 | $11,158 | Notes to Condensed Consolidated Financial Statements Notes detail accounting policies, segment operations, and a $24.2 million equipment purchase from GTC - The company operates as a provider of North American onshore seismic data acquisition services for major and independent oil and gas companies18 - Revenue is recognized as services are performed, generally based on square miles of data recorded compared to the total anticipated for the contract31 - On August 8, 2025, the company entered into an agreement to purchase seismic equipment from GTC, Inc. for an aggregate price of approximately $24.2 million. The purchase is financed through a combination of cash and three 36-month promissory notes at an 8.75% interest rate7374 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses decreased Q2 and H1 2025 revenues, a $24.2 million equipment investment, and improved liquidity - The company made a significant capital investment by agreeing to purchase new single point node channels from GTC for approximately $24.2 million to meet increased demand for high-resolution surveys7980 Revenue by Segment (in thousands) | Segment & Period | Fee Revenue 2025 | Fee Revenue 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. Operations | | | | | Q2 | $8,404 | $8,321 | +1.0% | | YTD | $11,130 | $26,608 | -58.2% | | Canada Operations | | | | | Q2 | $331 | $5 | N/A | | YTD | $12,864 | $8,456 | +52.1% | - Net cash from operating activities increased to $16.6 million for the first six months of 2025, up from $7.8 million in the same period of 2024, mainly due to an increase in deferred revenue100 - The company's $5 million revolving credit facility with Dominion Bank was terminated on May 2, 2024, upon the release of the collateral deposit48108 Quantitative and Qualitative Disclosures about Market Risk No material change in market risk profile for Q2 2025, with risks from credit, interest rates, and foreign currency - There has been no material change in the company's market risk profile during the three months ended June 30, 2025118 - Primary market risks arise from credit risk concentration, interest rate changes, and foreign currency exchange risk related to Canadian business119 Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes - The President and Chief Executive Officer and the Chief Financial Officer concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective in all material respects120 - No material changes to the company's internal control over financial reporting occurred during the three and six months ended June 30, 2025121 Part II. OTHER INFORMATION Legal Proceedings Management expects no material adverse effect from ongoing legal proceedings on the company's financial condition - The company refers to Note 7 of the financial statements for discussion of legal proceedings, stating that management believes the resolution of pending actions will not have a material adverse effect55124 Risk Factors No material changes to significant risk factors since the Annual Report on Form 10-K for December 31, 2024 - No material changes in significant risk factors have occurred since the company's Annual Report on Form 10-K for the year ended December 31, 2024125 Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or use of proceeds reported during the period - None126 Exhibits Key exhibits include the Equipment Purchase Agreement with GTC, Inc. and related financing documents - Key exhibits filed include the Equipment Purchase Agreement with GTC, Inc. dated August 8, 2025, and related financing documents130