# EDGAR Filing Document

**Accession Number:** 0000799165
**File Stem:** 0001558370-25-011231
**Filing Date:** 2025-8
**Character Count:** 33048
**Document Hash:** e5494b2d7cda4030863ca3d550cc00e1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-25-011231.hdr.sgml**: 20250812

**ACCESSION NUMBER**: 0001558370-25-011231

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250812

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250812

**DATE AS OF CHANGE**: 20250812

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DAWSON GEOPHYSICAL CO
- **CENTRAL INDEX KEY:** 0000799165
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL AND GAS FIELD EXPLORATION SERVICES [1382]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 742095844
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32472
- **FILM NUMBER:** 251207225

**BUSINESS ADDRESS:**
- **STREET 1:** 508 WEST WALL
- **STREET 2:** SUITE 800
- **CITY:** MIDLAND
- **STATE:** TX
- **ZIP:** 79701
- **BUSINESS PHONE:** 4326843000

**MAIL ADDRESS:**
- **STREET 1:** 508 WEST WALL
- **STREET 2:** SUITE 800
- **CITY:** MIDLAND
- **STATE:** TX
- **ZIP:** 79701

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TGC INDUSTRIES INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? DAWSON GEOPHYSICAL COMPANY_August 12, 2025

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 8-K**

**CURRENT REPORT**

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (date of earliest event reported): **August 12, 2025**

**DAWSON GEOPHYSICAL COMPANY**

(Exact name of Registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**texas** | &nbsp;&nbsp;**001-32472** | &nbsp;&nbsp;**74-2095844** |
| &nbsp;&nbsp;(State of incorporation<br>or organization) | &nbsp;&nbsp;(Commission file number) | &nbsp;&nbsp;(I.R.S. employer identification number) |

---

**508 West Wall, Suite 800**

**Midland, Texas 79701**

(Address of principal executive offices) (Zip Code)

**(432) 684-3000**

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp;Trading Symbol(s) | &nbsp;&nbsp;Name of each exchange on which<br>registered |
| &nbsp;&nbsp;**Common Stock, $0.01 par value** | &nbsp;&nbsp;**DWSN** | &nbsp;&nbsp;**The NASDAQ Stock Market** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

---

| | |
|:---|:---|
| **1**<br>|  |
| **2**<br>|  |
| **Item 2.02.** | **Results of Operations and Financial Condition.**<br>|

---

On August 12, 2025, Dawson Geophysical Company (the "Company") issued a press release reporting its preliminary and unaudited financial results for its second quarter ended June 30, 2025. A copy of the press release is furnished herewith as Exhibit 99.1.

***Limitation on Incorporation by Reference.*** The information furnished in this Item 2.02, including the press release attached hereto as Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

***Cautionary Note Regarding Forward-Looking Statements.*** Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements.

---

| | |
|:---|:---|
| 3<br>|  |
| **Item 9.01.** | **Financial Statements and Exhibits.**<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(d)** ***Exhibits.***

---

| | |
|:---|:---|
| &nbsp;&nbsp;EXHIBIT NUMBER | &nbsp;&nbsp;DESCRIPTION |
| &nbsp;&nbsp;[99.1](dwsn-20250812xex99d1.htm) | &nbsp;&nbsp;[Press release dated August 12, 2025](dwsn-20250812xex99d1.htm)  |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | DAWSON GEOPHYSICAL COMPANY | DAWSON GEOPHYSICAL COMPANY |
| Date: August 12, 2025 | By: | /s/ Ian Shaw |
|  |  | Ian Shaw |
|  |  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

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| | |
|:---|:---|
| **NEWS RELEASE**<br>Dawson Geophysical Company<br>508 W. Wall, Suite 800 <br>Midland, TX 79701  | ![Graphic](dwsn-20250812xex99d1001.gif) |

---

**Company contact:**

---

| |
|:---|
| Tony Clark, CEO and President |
| Ian Shaw, Chief Financial Officer |
| (800) 332-9766 |
| www.dawson3d.com |

---

**DAWSON GEOPHYSICAL REPORTS**

**SECOND QUARTER 2025 RESULTS**

MIDLAND, Texas, August 12, 2025/PR Newswire/Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its second quarter ended June 30, 2025.

**Management Comment**

Tony Clark, Dawson's President and CEO, commented, "Due to the observed increase in demand for large integrated high-resolution, high channel count surveys and improvement to our backlog, we made the decision to make a significant capital investment to purchase new single node channels from a wholly-owned subsidiary of Geospace Technologies. These new channels are a small, lightweight, single-component, autonomous land wireless seismic data acquisition solution. Each sub-1-pound wireless geophone (5 HZ), battery, 24-bit digitizer, and GPS receiver are enclosed in its sealed case, allowing for a more efficient and faster field deployment and retrieval operation, which we expect will significantly improve our operational efficiency. Increasing our channel count with this purchase coupled with our existing channels will allow us to be able to acquire higher and more intensive seismic surveys in North America, as well as be more competitive on the smaller 2D & 3D surveys.

We deployed one large channel crew at the beginning of April, which should keep that crew highly utilized throughout the end of the year. We continue to improve our backlog, and have multiple jobs contracted for quick deployment of our recently purchased equipment. We expect that this investment will improve our top line and bottom-line results as the equipment is deployed and we capitalize on the anticipated efficiencies."

**Second Quarter and Year-to-Date Results**

For the second quarter ended June 30, 2025, the Company reported fee revenues of $8.7 million, an increase of 5% compared to $8.3 million for the comparable quarter ended June 30, 2024. Total revenue included reimbursable revenue of $1.1 million and $4.2 million for the quarters ended June 30, 2025, and June 30, 2024, respectively. Gross margin<sup>1</sup> for the quarter ended June 30, 2025, was 13% compared to 1% for the comparable quarter ended June 30, 2024, due to improved efficiencies in our operations. Our revenues in the United States increased over 200% quarter over quarter due to improved crew utilization, and we expect our revenue to continue to increase in the third quarter due to our strong backlog.

We incurred a net loss of $2.3 million or $0.08 per common share compared to a net loss of $3.5 million or $0.12 per common share for the quarters ended June 30, 2025 and 2024, respectively. During the quarter ended June 30, 2025, we generated negative EBITDA of $1.2 million, compared to negative EBITDA of $2.3 million in the same quarter of 2024.

For the year to date ended June 30, 2025, we incurred a net loss of $1.4 million or $0.04 per common share compared to net income of $2.3 million or $0.07 per common share for the same period of 2024. For the year to date ended June 30, 2025, we generated EBITDA of $1.2 million, compared to EBITDA of $5.2 million in the same period of 2024.

<sup>1</sup>Defined as fee revenues less fee operating expenses, divided by fee revenues

------

**Operations Update**

We deployed one large channel crew at the beginning of April, which should keep that crew highly utilized throughout the remainder of the year in the United States. We continue to improve our backlog and have multiple small channel crew jobs contracted in the third quarter for quick deployment of our recently purchased equipment.

**Capital Budget and Liquidity** 

On August 8, 2025, Dawson Operating LLC, a wholly-owned subsidiary of the Company ("Dawson Operating"), entered into an Equipment Purchase Agreement, with GTC, Inc., a wholly-owned subsidiary of Geospace Technologies Corporation("GTC"), to acquire single point node channels (the "Purchase Agreement"). Under 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 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 thirty-six (36) month promissory notes each with a fixed interest rate of 8.75% (each, a "Note" and collectively, the "Geospace Notes") payable by Dawson Operating and the Company, jointly and severally, to GTC, with each Note to be issued in connection with the Dawson Operating's acceptance of one of the three equipment deliveries. We believe this investment will allow the Company to be a leader in the industry, giving us a competitive advantage for large integrated high-resolution, high channel count surveys currently demanded by the exploration & production efforts of our customers.

We increased our cash position to $16.2 million at June 30, 2025 and improved our positive working capital position to $4.9 million, compared to $1.4 million and $4.6 million, at December 31, 2024, respectively. We believe that our cash on hand and operating cash flows are sufficient to fund our operating and investing cash flow requirements as well as our obligations under the Geospace Notes.

**About Dawson**

Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States and Canada. Dawson acquires and processes 2-D, 3-D and multi-component 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. Carbon Capture Utilization and Storage ("CCUS") seismic monitoring continues to grow and be an intricate part of our business. Dawson has acquired several CCUS base surveys and plan to acquire more in the future.

**Non-GAAP Financial Measures**

In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. The Company defines EBITDA as net income (loss) plus interest expense, interest income, income taxes, depreciation and amortization expense. The Company uses EBITDA, further adjusted for other unusual items, when applicable, as a supplemental financial measure to assess:

· the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;

· its liquidity and operating performance over time in relation to other companies that own similar assets and that the Company believes calculate EBITDA in a similar manner; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

· the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.

The Company also understands that such data are used by investors to assess the Company's performance. However, the term EBITDA is not defined under GAAP, and EBITDA is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. When assessing the Company's operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's EBITDA may not be comparable to EBITDA or similar titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as the Company. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization. Reconciliations of the Company's EBITDA to its net loss and to net cash provided by operating activities is presented in the tables following the text of this press release.

**Forward-Looking Statements**

Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Forward-looking statements relate to future events or the Company's future financial or operating performance. These forward-looking statements include, among other things, statements regarding: expected utilization levels; the Company's; statements regarding the anticipated benefits of the transactions contemplated by the Purchase Agreement, including statements related to potential competitive advantages and improved efficiencies resulting from such transactions, and the benefits of the purchased single node channels are expected to deliver;; the Company's currently expected guidance regarding its planned operations levels and capital expenditures; the Company's strategies and plans for growth; the Company's positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; statements regarding the Company's liquidity; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company's outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, risks relating to the efficacy of the purchased single node channels; the risk that the delivery of the equipment may not be delivered in a timely manner or at all; the Company's ability to execute its business strategies and plans for growth; the failure to operationalize the acquired equipment in a timely manner or at all; risks associated with the Company's ability to finance the transaction contemplated by the Purchase Agreement; the Company's status as a controlled public company, which exempts the Company from certain corporate governance requirements; the limited market for the Company's shares; the impact of general economic, industry, market or political conditions, including tariffs; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices and markets; changes in economic conditions; surplus in the supply of oil and the ability of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+ to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; the potential for contract delays; reductions or cancellations of service contracts; limited number of customers; credit risk related to our customers; reduced utilization; high fixed costs of operations and high capital requirements; industry competition; external factors affecting the Company's crews such as weather interruptions and inability to obtain land access rights of way; whether the Company enters into turnkey or day rate contracts; crew productivity; the availability of capital resources; disruptions in the global economy, including export controls and financial and economic sanctions imposed on certain industry sectors and parties as a result of the developments in Ukraine and related activities, and whether or not a future transaction or other action occurs that causes the Company to be delisted from Nasdaq and no longer be required to make filings with the SEC. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Annual Report on Form 10-K that was filed with the SEC on April 2, 2025. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

------

**DAWSON GEOPHYSICAL COMPANY**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(unaudited and amounts in thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Six Months Ended June 30,**  | **Six Months Ended June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| **Operating revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fee Revenue | $8735 | $8326 | $23994 | $35064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable Revenue | 1116 | 4186 | 1935 | 9032 |
|  | 9851 | 12512 | 25929 | 44096 |
| **Operating costs:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee operating expenses | 7601 | 8205 | 18561 | 25319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable operating expenses | 1116 | 4186 | 1935 | 9032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 8717 | 12391 | 20496 | 34351 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 2331 | 2484 | 4325 | 4717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1174 | 1406 | 2445 | 2995 |
|  | 12222 | 16281 | 27266 | 42063 |
| **(Loss) income from operations** | (2371) | (3769) | (1337) | 2033 |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 35 | 105 | 39 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (58) | (39) | (134) | (85) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 38 | 26 | 71 | 205 |
| **(Loss) income before income tax** | (2356) | (3677) | (1361) | 2371 |
| **Income tax benefit (expense)** | 7 | 131 | 4 | (71) |
| **Net (loss) income** | (2349) | (3546) | (1357) | 2300 |
| **Other comprehensive income (loss):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized income (loss) on foreign exchange rate translation | 477 | (110) | 447 | (270) |
| **Comprehensive (loss) income** | $(1872) | $(3656) | $(910) | $2030 |
| **Basic (loss) income per share of common stock** | $(0.08) | $(0.12) | $(0.04) | $0.07 |
| **Diluted (loss) income per share of common stock** | $(0.08) | $(0.12) | $(0.04) | $0.07 |
| **Weighted average equivalent common shares outstanding** | 30986929 | 30815443 | 30985212 | 30813886 |
| **Weighted average equivalent common shares outstanding - assuming dilution** | 30986929 | 30815443 | 30985212 | 30813886 |

---

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**DAWSON GEOPHYSICAL COMPANY**

**CONSOLIDATED BALANCE SHEETS**

**(unaudited and amounts in thousands, except share data)**

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **December 31,**<br>**2024** |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $16228 | $1385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net  | 3524 | 9970 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | 7454 | 391 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 4222 | 2795 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 31428 | 14541 |
| **Property and equipment** | 237255 | 238064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | (225925) | (225085) |
| **Property and equipment, net** | 11330 | 12979 |
| **Operating lease right-of-use assets** | 2559 | 3002 |
| **Intangibles, net** | 367 | 348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $45684 | $30870 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $2991 | $3381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll costs and other taxes | 1786 | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 932 | 830 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 17935 | 1570 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of notes payable and finance leases | 1723 | 1010 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of operating lease liabilities | 1178 | 1125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 26545 | 9930 |
| **Long-term liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable and finance leases, net of current maturities | 1127 | 1512 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, net of current maturities | 1583 | 2131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities, net | 16 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 2726 | 3659 |
| **Commitments and contingencies** |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock-par value $0.01 per share; 35,000,000 shares authorized, |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,047,801 and 30,983,437 shares issued and outstanding at June 30, 2025  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and December 31, 2024, respectively | 310 | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 157115 | 157073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (138976) | (137619) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (2036) | (2483) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 16413 | 17281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $45684 | $30870 |

---

------

**Reconciliation of EBITDA to Net (Loss) Income** 

**(amounts in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net loss | $(1297) | $(1052) | $(2349) | $(2434) | $(1112) | $(3546) |
| Depreciation and amortization | 981 | 193 | 1174 | 1162 | 244 | 1406 |
| Interest expense (income), net | 20 | 3 | 23 | (60) | (6) | (66) |
| Income tax benefit | (7) |  | (7) | (131) |  | (131) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $(303) | $(856) | $(1159) | $(1463) | $(874) | $(2337) |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net (loss) income | $(5843) | $4486 | $(1357) | $(129) | $2429 | $2300 |
| Depreciation and amortization | 2058 | 387 | 2445 | 2467 | 528 | 2995 |
| Interest income, net | 83 | 12 | 95 | (123) | (10) | (133) |
| Income tax (benefit) expense | (4) |  | (4) | 71 |  | 71 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $(3706) | $4885 | $1179 | $2286 | $2947 | $5233 |

---

**Reconciliation of EBITDA to Net Cash Provided By Operating Activities**

**(amounts in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net cash provided by operating activities | $6742 | $8133 | $14875 | $1302 | $4618 | $5920 |
| Changes in working capital and other items | (6805) | (8932) | (15737) | (2251) | (5442) | (7693) |
| Non-cash adjustments to net loss | (240) | (57) | (297) | (514) | (50) | (564) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $(303) | $(856) | $(1159) | $(1463) | $(874) | $(2337) |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net cash provided by operating activities | $8286 | $8341 | $16627 | $3298 | $4492 | $7790 |
| Changes in working capital and other items | (11335) | (3345) | (14680) | (278) | (1444) | (1722) |
| Non-cash adjustments to net (loss) income | (657) | (111) | (768) | (734) | (101) | (835) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $(3706) | $4885 | $1179 | $2286 | $2947 | $5233 |

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**Statements of Operations by operating segment for the three and six months ended June 30, 2025, and 2024.**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
|  | **USA Operations** | **Canada Operations** | **Consolidated** | **USA Operations** | **Canada Operations** | **Consolidated** |
| **Operating revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fee revenue | $8404 | $331 | $8735 | $11130 | $12864 | $23994 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable revenue | 1116 |  | 1116 | 1686 | 249 | 1935 |
|  | 9520 | 331 | 9851 | 12816 | 13113 | 25929 |
| **Operating costs:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee operating expenses | 6742 | 859 | 7601 | 11357 | 7204 | 18561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable operating expenses | 1116 |  | 1116 | 1686 | 249 | 1935 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 7858 | 859 | 8717 | 13043 | 7453 | 20496 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 1998 | 333 | 2331 | 3553 | 772 | 4325 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 981 | 193 | 1174 | 2058 | 387 | 2445 |
|  | 10837 | 1385 | 12222 | 18654 | 8612 | 27266 |
| **(Loss) income from operations** | (1317) | (1054) | (2371) | (5838) | 4501 | (1337) |
| **Other income (expense):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 26 | 9 | 35 | 26 | 13 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (46) | (12) | (58) | (109) | (25) | (134) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 33 | 5 | 38 | 74 | (3) | 71 |
| **(Loss) income before income tax** | (1304) | (1052) | (2356) | (5847) | 4486 | (1361) |
| &nbsp;&nbsp;&nbsp;&nbsp;Current | 7 |  | 7 | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred |  |  |  |  |  |  |
| **Income tax benefit** | 7 |  | 7 | 4 |  | 4 |
| **Net (loss) income** | $(1297) | $(1052) | $(2349) | $(5843) | $4486 | $(1357) |
| **EBITDA** | $(303) | $(856) | $(1159) | $(3706) | $4885 | $1179 |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **USA Operations** | **Canada Operations** | **Consolidated** | **USA Operations** | **Canada Operations** | **Consolidated** |
| **Operating revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fee revenue | $8321 | $5 | $8326 | $26608 | $8456 | $35064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable revenue | 4186 |  | 4186 | 8995 | 37 | 9032 |
|  | 12507 | 5 | 12512 | 35603 | 8493 | 44096 |
| **Operating costs:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee operating expenses | 7648 | 557 | 8205 | 20541 | 4778 | 25319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable operating expenses | 4186 |  | 4186 | 8995 | 37 | 9032 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 11834 | 557 | 12391 | 29536 | 4815 | 34351 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 2181 | 303 | 2484 | 4011 | 706 | 4717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1162 | 244 | 1406 | 2467 | 528 | 2995 |
|  | 15177 | 1104 | 16281 | 36014 | 6049 | 42063 |
| **(loss) income from operations** | (2670) | (1099) | (3769) | (411) | 2444 | 2033 |
| **Other income (expense):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 89 | 16 | 105 | 188 | 30 | 218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (29) | (10) | (39) | (65) | (20) | (85) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 45 | (19) | 26 | 230 | (25) | 205 |
| **(Loss) income before income tax** | (2565) | (1112) | (3677) | (58) | 2429 | 2371 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current | 131 |  | 131 | (71) |  | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred |  |  |  |  |  |  |
| **Income tax benefit (expense)** | 131 |  | 131 | (71) |  | (71) |
| **Net (loss) income** | $(2434) | $(1112) | $(3546) | $(129) | $2429 | $2300 |
| **EBITDA** | $(1463) | $(874) | $(2337) | $2286 | $2947 | $5233 |

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