Company: DWSN
Filing Date: 2025-08-11
Form Type: 8-K
Source: 0001558370-25-010985
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Company: DAWSON GEOPHYSICAL CO
Filing Date: 2025-08-11
Form: 8-K
Item: Item 1.01
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1                                                            
  Item 1.01.      Entry Into a Material Definitive Agreement.  

On August 8, 2025, Dawson Operating LLC, a Texas limited liability company (“ Dawson Operating”) and wholly-owned subsidiary of Dawson Geophysical Company, a Texas corporation (the “ Company”), entered into an Equipment Purchase Agreement, dated as of August 8, 2025 (the “ Purchase Agreement”), with GTC, Inc., a Texas corporation (“ GTC”) and wholly-owned subsidiary of Geospace Technologies Corporation, a Texas corporation (“ Geospace”), pursuant to which, among other things, Dawson Operating agreed to acquire from GTC Pioneer™ single point node channels. Subject to the terms and conditions of the Purchase Agreement, the equipment is to be delivered in three shipments commencing in August 2025, with the final shipment scheduled for delivery by early January 2026.

The Purchase Agreement provides that, subject to the terms and conditions set forth therein, Dawson Operating will pay to GTC an aggregate purchase price of approximately $24.2 million, as follows: (i) approximately $4.8 million was paid in cash in connection with the execution of the Purchase Agreement; (ii) approximately $1.2 million will be payable in cash upon acceptance of the third and final delivery of the equipment; and (iii) approximately $18.2 million in the aggregate will be financed by the delivery of three separate promissory notes (each, a “ Note” and collectively, the “ Notes”) payable by Dawson Operating and the Company, jointly and severally, to GTC, with each Note to be issued in connection with Dawson Operating’s acceptance of one of the three equipment deliveries. The Purchase Agreement includes customary representations, warranties, indemnities and covenants consistent with a transaction of similar type and size.

The Notes will each have a term of thirty-six (36) months and bear interest at a fixed rate of 8.75% annually. The Notes may be prepaid, in whole or in part, at any time without penalty. The obligations under the Notes will be secured by: (i) a lien on all of the equipment purchased under the Purchase Agreement, all of Dawson Operating’s rights under certain intercompany leases, and all proceeds of the foregoing, pursuant to a Purchase Money Security Agreement by and between Dawson Operating and GTC, dated as of August 8, 2025; and (ii) liens on the Company’s real properties and land located in Midland, Texas, granted by the