# EDGAR Filing Document

**Accession Number:** 0001001115
**File Stem:** 0001437749-25-036009
**Filing Date:** 2025-11
**Character Count:** 323779
**Document Hash:** 3f065c3e935dbb9f45b931c9a6a04df4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-036009.hdr.sgml**: 20251121

**ACCESSION NUMBER**: 0001437749-25-036009

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 122

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251121

**DATE AS OF CHANGE**: 20251121

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** GEOSPACE TECHNOLOGIES CORP
- **CENTRAL INDEX KEY:** 0001001115
- **STANDARD INDUSTRIAL CLASSIFICATION:** MEASURING & CONTROLLING DEVICES, NEC [3829]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 760447780
- **STATE OF INCORPORATION:** TX
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-13601
- **FILM NUMBER:** 251508517

**BUSINESS ADDRESS:**
- **STREET 1:** 7007 PINEMONT DR.
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77040
- **BUSINESS PHONE:** 7139864444

**MAIL ADDRESS:**
- **STREET 1:** 7007 PINEMONT DR.
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77040

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** OYO GEOSPACE CORP
- **DATE OF NAME CHANGE:** 19950919

?xml version='1.0' encoding='ASCII'? geos20250930_10k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM 10-K**

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**☒&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended September 30, 2025**

**OR**

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**☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Commission file number 001-13601**

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**GEOSPACE TECHNOLOGIES CORPORATION**

**(Exact Name of Registrant as Specified in Its Charter)**

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| | |
|:---|:---|
| **Texas** | **76-0447780** |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(I.R.S. Employer**<br> **Identification No.)** |

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**7007 Pinemont Drive**

**Houston, Texas 77040-6601**

**(Address of Principal Executive Offices)**

**(713) 986-4444**

**(Registrant**'**s telephone number, including area code)**

Securities Registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol(s)** | **Name of Each Exchange on Which Registered** |
| **Common Stock** | **GEOS** | **The NASDAQ Global Select Market** |

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Securities Registered pursuant to Section 12(g) of the Act:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NONE

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Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | | |
|:---|:---|:---|:---|:---|
| Large accelerated filer ☐ | Accelerated filer ☒ | &nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer ☐ | Smaller reporting company ☒  | Emerging growth company ☐ |

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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. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 12,820,702 shares of the Registrant's Common Stock outstanding as of the close of business on October 31, 2025. As of March 31, 2025, the aggregate market value of the Registrant's Common Stock held by non-affiliates was approximately $90 million (based upon the closing price of $7.21 on March 31, 2025, as reported by The NASDAQ Global Select Market).

**DOCUMENTS INCORPORATED BY REFERENCE** 

Portions of the definitive proxy statement for the Registrant's 2026 Annual Meeting of Stockholders are incorporated by reference into Part III of this report.

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| | | |
|:---|:---|:---|
| Auditor Firm Id: 49 | Auditor Name: RSM US LLP | Auditor Location: Houston, Texas, USA |

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**PART I**

**Item 1. Business** 

**Business Overview**

Unless otherwise specified, the discussion in this Annual Report on Form 10-K refers to Geospace Technologies Corporation and its subsidiaries. We design and manufacture sophisticated technology solutions for applications in smart water management, energy exploration, as well as industrial and Internet of Things. Our seismic equipment and services are marketed to the energy industry and used to locate, characterize and monitor hydrocarbon producing reservoirs. We also market our seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. We design and manufacture other products of a non-seismic nature, including Hydroconn® connector cables, imaging equipment, remote shutoff water valves and Internet of Things ("IoT") platform. Additionally, we provide specialized contract manufacturing services, which leverage our capabilities and manufacturing resources. In recent years, the revenue contribution from our non-energy related products has grown to represent nearly half of our total revenue. Our business diversification strategy has centered largely on translating expertise in ruggedized engineering and technology manufacturing into expanded customer markets. We report and categorize our customers and products into three different segments: Smart Water, Energy Solutions and Intelligent Industrial. In recent years, the revenue contribution from our Smart Water segment has grown to represent nearly half of our total revenue. This revenue growth in this segment is largely attributable to the rise in water utility modernization which includes our waterproof meter connector cable series of products. Demand for our seismic products targeted at customers in our Energy Solutions segment has been, and will likely continue to be, vulnerable to downturns in the economy and the oil and gas industry in general. For more information, please refer to the risks discussed under the heading "Risk Factors".

**Segment and Geographical Information**

Effective October 1, 2024, the Company changed the composition of its three operating business segments and changed its methodology for allocating manufacturing costs including overhead and other costs of revenue to the segments. The business segments are now comprised of the following: Smart Water, Energy Solutions and Intelligent Industrial. The change methodology for allocating manufacturing costs affected each segment's operating income (loss) but had no effect on consolidated operating income (loss). For a discussion of the products sold and markets served by each of our segments, see "Products and Product Development" below. For a discussion of financial information by segment and geographic area, see Note 21 to the consolidated financial statements contained in this Annual Report on Form 10-K.

**Products and Product Development**

**Smart Water**

Our Smart Water segment emphasizes our targeted approach to growing its footprint in the water management industry. This business segment contains the highly successful Hydroconn® smart water connectivity offerings along with the Aquana products.

The adoption of advanced technology in water management has been bolstered by U.S. Federal funding programs such as Water Infrastructure Finance Act funding, which provides $7.5 billion for water-related infrastructure projects.

Over the last decade, we have seen an increase of over 400% in sales volume of our Hydroconn® connector cables used in Automated Meter Reading (AMR) applications. These cables play a role in Advanced Metering Infrastructure (AMI) by enabling remote collection of usage data from utility meters, thereby eliminating the need for manual meter reading.

Our remote disconnect values and water IoT platform allows customers that manage multi-family and commercial properties to monitor their properties for leak and burst events, with real-time notifications, complimented with our remote-shut off to stop water damage. These products also allow water utilities to re-claim non-revenue water at a lower energy and field service cost through remote control of water service without placing their employees in potential harm or danger.

**Energy Solutions**

Our Energy Solutions business segment has historically accounted for the majority of our revenue. Geoscientists use seismic data primarily in connection with the exploration, development and production of oil and gas reserves to map potential and known hydrocarbon bearing formations and the geologic structures that surround them. This segment's products include wireless seismic data acquisition systems, reservoir characterization products and services, and traditional seismic exploration products such as geophones, hydrophones, leader wire, connectors, cables and various other seismic products. We believe our Energy Solutions products are among the most technologically advanced instruments and equipment available for seismic data acquisition.

Our seismic sensor, cable and connector products are compatible with most major competitive seismic data acquisition systems currently in use. Revenue from these products results primarily from seismic contractors purchasing our products as components of new seismic data acquisition systems or to repair and replace components of seismic data acquisition systems already in use.

We have developed multiple versions of a land-based wireless (or nodal) seismic data acquisition system including our most recent launch of the Pioneer™, an ultralight wireless sensor product. We believe our wireless sensor systems allow our customers to operate more effectively and efficiently because of their reduced environmental impact, lower weight, ease of operation and less maintenance requirements.

We have also developed an ocean bottom seismic data acquisition system called the OBX, and recently released Mariner® and Mariner Deep®. Similar to our land-based wireless systems, these ocean bottom systems may be deployed in virtually unlimited channel configurations and do not require interconnecting cables between each station. The Mariner® is a continuous, cable-free, four channel autonomous, shallow water ocean bottom recorder designed for extended duration seabed ocean bottom seismic data acquisition. Mariner™ is the next generation node designed for extended duration seabed ocean bottom seismic data acquisition. The slim profile nodes, which are part of our shallow water stations, are ideally deployed as deep as 750 meters. The device continuously records for up to 70 days and offers more rapid recharging times. Its slim profile creates space savings on seismic survey vessels, allowing contractors to fit up to 25% more nodes into a download/charge container. Mariner Deep® is a deepwater, wireless seismic acquisition node capable of operating for 200 days in water as deep as 3,450 meters.

Additionally, we have developed high-definition permanent reservoir monitoring systems ("PRM") for land and ocean-bottom applications in producing oil and gas fields. Our primary offering, OptoSeis® fiber optic sensing technology, provides high-definition seismic data acquisition systems with a flexible architecture allowing them to be configured as a subsurface system for both land and marine reservoir-monitoring projects.

We also have a derivative of the OptoSeis® technology for high temperature downhole applications. The product, known as Insight by OptoSeis offers a passive, all-optical downhole sensor network - no electronics downhole - resulting in years long operational lifetime at 150°C.

We also produce seismic borehole acquisition systems that employ a fiber optic augmented wireline capable of very high data transmission rates. These systems are used for several reservoir monitoring applications, including an application pioneered by us allowing operators and service companies to monitor and measure the results of hydraulic fracturing operations.

Our SADAR® technology provides energy companies real-time monitoring of seismic data.

**Intelligent Industrial**

Our Intelligent Industrial segment consists of industrial sensors, electronic pre-press solutions and specialized contract manufacturing. The growing defense and security applications offered by Quantum and Heartbeat Detector® will also be reflected in this segment.

Our robust manufacturing capabilities have allowed us to provide specialized contract manufacturing services for printed circuit board manufacturing, cabling and harnesses, machining, injection molding and electronic system assembly.

Our seismic sensors provide unique high definition, low frequency sensing that allows for vibration monitoring in industrial machinery, mine safety and earthquake detection.

*Imaging Products*

Our imaging products include electronic pre-press products that employ direct thermal imaging, direct-to-screen printing systems, and digital inkjet printing technologies targeted at the commercial graphics, industrial graphics, textile and flexographic printing industries.

*Defense and Security*

Our Quantum product line includes SADAR®, a proprietary detection system which detects, locates and tracks items of interest in real-time. Using the SADAR® technology, Quantum designs and sells products used for border and perimeter security surveillance, cross-border tunneling detection and other products targeted at movement monitoring, intrusion detection and situational awareness. Quantum's customers include various agencies of the U.S. government including the Department of Defense, Department of Energy, Department of Homeland Security and other agencies.

In August 2025, we acquired Heartbeat Detector® by purchasing all the of the outstanding common stock of Geovox Securities, Inc. ("Geovox"). Heartbeat Detector® is a heartbeat detection security technology developed by the United States Department of Energy's Oak Ridge National Laboratory which bolsters our perimeter security and surveillance offerings. Used in more than a dozen countries to address human trafficking and prison security, the Heartbeat Detector® uses proprietary sensors to rapidly identify people hidden in vehicles, providing a modern, user-friendly interface in as little as 10 seconds. The product, which relies on geophones we manufacture, has been proven 99% effective by Oak Ridge, Sandia and Thunder Mountain national laboratories.

The acquisition purchase price for Geovox consisted of (i) cash of $1.7 million, which included $1.5 million paid at closing and $0.2 million to be paid June 1, 2027, and (ii) contingent earn-out payments of up to $3.3 million over a four-year period. The contingent payments, if any, will be derived from certain eligible revenue that may be generated during the four-year period.

**Business Strategy**

We have adopted what we think is a conservative and prudent business strategy which places a focus on sound financial management practices, as outlined below. We have not changed our primary focus on continued investment in product research and development, selective acquisitions and joint ventures. In the long term we are seeking to grow our recurring revenue offerings through internal development or acquisition, and expand the majority of our revenue in our business segments not associated or dependent on the cyclical nature historically seen in the energy industry.

● *Continue Investment in Product Research and Development* – Prior to our plan for diversification, past periods of revenue growth were primarily driven through our internal development of new products for the energy industry. In more recent years, product innovations included the introduction of IoT values, Pioneer™, and Mariner®. These innovative technologies are the result of our unceasing investment in research and development initiatives. A majority of our product research and development cost relates to our engineers. Our engineering staff have been key to our past success, and we intend to continue our tradition of retaining and attracting quality engineering staff by providing appropriate compensation and benefits. Going forward, we intend to continue significant investments in product research and development for all of our business segments in order to diversify and grow our revenue base.

● *Selectively Pursue Acquisitions of Businesses with Technological and Engineering Overlap* – Historically, the oil and gas industry periodically experiences volatile business cycles requiring us to rapidly increase and decrease our business activities to meet the industry's demand for our products, resulting in our plan for diversification through acquisitions. Our primary growth initiative is to seek out other business opportunities in our smart water and intelligent industrial markets which complement our existing products, engineering and manufacturing capabilities, company-wide culture, and are immediately accretive to our existing revenue stream. In order to diversify our revenue base and expose us to different markets with different business cycles, with recurring revenue streams, we have directed these efforts toward businesses outside the energy industry, as seen with our acquisitions of Quantum, Aquana and Geovox.

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● *Financial Management* – Due to the cyclicality of our core business, we have historically managed our financial risk by limiting or eliminating debt leverage in our balance sheet. While we are not opposed to moderate amounts of short-term debt during favorable business cycles, we choose to minimize our exposure to long-term debt obligations which, in our view, restrict our ability to operate during periodic difficult business cycles. We believe this strategy has allowed us to continue operations through difficult business cycles without disruption for debt and equity restructuring as has been seen among our peers, many of whom have significant long-term debt burdens. In addition, we have limited our investments in capital assets and have liquidated, and made appropriate reserves for, significant amounts of our inventories and rental fleet assets. We also believe that the value of our common shares outstanding will be best served in the long-term by retaining our cash to fund future cash outflows as they become necessary. In this regard, we do not anticipate paying any cash dividends in the foreseeable future, however, since fiscal year 2021 we have repurchased 1,558,260 shares of our common stock in open market transactions under stock-buy-back programs authorized by our Board of Directors.

**Competition**

*Smart Water Products*

Our smart water products face competition in both the real estate and utilities markets. Real estate competition consists of companies such as Water Hero, Moen, and Watercop who offer similar products and services but don't offer a full turn-key solution to real estate asset protection, operational efficiency and modular product combinations.

For the utility market, our products face competitors such as Mueller, Sensus, and Badger who offer AMI/AMR network valve/meter combinations. However, our smart valves are more versatile, accommodating multiple valve sizes and valve positions while supporting connections to mechanical, ultrasonic and pulse or encoded water meters.

*Energy Solutions Products*

We are one of the world's largest designers and manufacturers of seismic products used in the oil and gas industry. The principal competitors for many of our traditional seismic products are Sercel (a division of Viridien, formerly a division of CGG), Dynamic Technologies, and INOVA. Furthermore, entities in China affiliated with Sercel, as well as other Chinese manufacturers produce low-cost oil and gas seismic products, which compete with our traditional seismic products.

The primary competitors for our land wireless data acquisition systems are SmartSolo, Sercel, INOVA, STRYDE, Geophysical Technology, and numerous smaller entities who have introduced similar versions of wireless data acquisition systems. We believe the primary competitors for our ocean bottom data acquisition systems are Sercel and InApril AS (which merged with SAExploration in September 2024), each of whom utilizes their own proprietary nodal technology.

Most oil and gas seismic products are price sensitive, so the ability to manufacture these products at a low cost is essential to maintain market share. While price is an important factor in a customer's decision to purchase a land or marine wireless data acquisition system, we believe customers also place a high value on a product's historical performance and the ongoing engineering and field support provided by the product's manufacturer.

The principal keys for success in the seismic instruments and equipment market are technological superiority, product durability under harsh field conditions, reliability, size, weight and customer support. Product deliverability is always an important consideration for our customers.

In general, most customers prefer to standardize data acquisition systems, particularly if they are used by seismic companies that have multiple crews which are able to support each other. This standardization makes it difficult for competitive manufacturers to gain market share from other manufacturers with existing customer relationships.

Our primary competitor for our seabed PRM systems is Alcatel-Lucent. Our primary competitors for high-definition borehole seismic data acquisition systems are Avalon Sciences Ltd and Sercel.

Our primary competitors for the new energy or energy transition market are Microseismic, Inc., Namometrics, ISTI and ESG.

*Intelligent Industrial Products*

Our industrial and imaging products face competition from numerous domestic and international specialty product manufacturers.

The border and perimeter security marketplace is dominated by large integrated system providers such as Boeing, General Dynamics, Lockheed Martin, Raytheon, Elbit Systems and others. Systems provided by these competitors are generally multifaceted and may include numerous integrated surveillance technologies, including the geophysical sensor and software systems that we have developed. Our sensing technology does not rely on line-of-sight motion detection, which is required by cameras and other visual and radio frequency technologies, and thus enables motion-sensing such devices would miss. Competitive geophysical technologies utilizing fiber optic sensing techniques are provided by OptaSense, Fibersensys, Future Fiber Technologies, and other specialty sensor manufacturing firms.

Our primary competition for the Heartbeat Detector® is Ensco. Ensco's MicroSearch system directly competes with the Heartbeat Detector® in the human-presence detection market. Both offerings detect concealed humans by analyzing micro-vibrations from heartbeats. However, Heartbeat Detector offers a more modern, efficient and flexible approach – delivering reliable detection in under a minute, with fewer setup components and enhanced adaptability across vehicle, container, and structural applications.

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**Suppliers**

We purchase raw materials from a variety of suppliers located in various countries. We typically have multiple suppliers for our critical materials. In our Energy Solutions business segment, certain models of our land and marine wireless nodes are purchased from two single source suppliers. In the event a change in one or both of these suppliers is necessary, significant engineering design efforts would be required by us. In our Intelligent Industrial business segment, we purchase all of our thermal imaging film from a single supplier. Beyond this film supplier, we know of no other source for thermal film that performs as well in our imaging equipment. For a discussion of the risks related to our reliance on these suppliers, see "Risk Factors – We Rely on Key Suppliers for Certain Components Used in Our Products."

Our supply chain frequently experiences disruption, resulting in longer lead times in materials available from suppliers and extending the shipping time for these materials to reach our facilities. These disruptions could constrain our ability to provide products to our customers in the time frame they require.

**Product Manufacturing and Assembly**

Our manufacturing and product assembly operations consist of machining, molding or cabling the necessary component parts, configuring these parts along with components received from various vendors and assembling a final product. We manufacture many of our products to the specifications required by our customers and upon order. Consistent with industry practice, we normally manufacture our products based on firm customer orders, anticipated customer orders and historical product demand.

**Markets and Customers**

Our smart water connectivity customers include municipalities, water utilities, water meter manufacturing companies as well as asset management firms such as multifamily property owners. Our principal customers for our seismic products are seismic contractors and, to a lesser extent, major independent and government-owned oil and gas companies that either operate their own seismic crews or specify seismic instrument and equipment preferences to contractors. For our PRM products, our customers are generally large international oil and gas companies that operate long-term offshore oil and gas producing properties. We also provide oil and gas companies with real-time monitoring of seismic data with our SADAR® technology. Our industrial product customers consist of specialty manufacturers, research institutions and industrial product distributors. Our imaging customers primarily consist of direct users of our equipment as well as specialized resellers that focus on the screen-printing and flexographic printing industries. Our border and perimeter security customers are primarily government agencies.

Two customers comprised 19.1% and 16.2% of our revenue during fiscal year 2025. Two customers comprised 27.4% and 16.0% of our revenue during fiscal year 2024. The following table describes our revenue by product type (in thousands):

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| | | |
|:---|:---|:---|
|  | **YEAR ENDED SEPTEMBER 30,** | **YEAR ENDED SEPTEMBER 30,** |
|  | **2025** | **2024** |
| Smart Water | $35816 | $32434 |
| Energy Solutions | 50706 | 77977 |
| Intelligent Industrial | 23960 | 24891 |
| Corporate | 321 | 296 |
| Total revenue | $110803 | $135598 |

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**Intellectual Property**

We seek to protect our intellectual property by means of patents, trademarks, trade secrets and other measures. We hold patents on geophones, micro-geophones, piezo-electric sensors, seismic data acquisition, our Hydroconn® water meter connectors, and we have pending applications on related technology. We do not consider any single patent essential to our success. Our patents are scheduled to expire at various dates through 2042. We are not able to predict the effect of any patent expiration. We protect our proprietary rights to our technology through a variety of methods, including confidentiality agreements and proprietary information agreements with suppliers, employees, consultants and others who may have access to proprietary information.

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**Research and Development**

We incur significant research and development expenditures. These efforts are primarily aimed at the development of additional products for each of our business segments. The majority of our product research and development costs relate to the Company's engineers. The Company's engineering staff have been key to our past success. Research and development expense includes personnel costs of the Company's engineers, project expenditures, on-going product maintenance and improvements to our existing products, as well as general and administrative expenses associated with the engineering department. We have incurred company-sponsored research and development expenses of $18.9 million and $16.3 million during the fiscal years ended September 30, 2025 and 2024, respectively.

**Human Capital, Environmental and Social** 

In order to continue to produce the most technologically advanced instruments and equipment available for the industrial, border and perimeter security and seismic data acquisition markets, it is crucial that we continue to attract and retain top talent. To attract and retain talented employees, we strive to make Geospace Technologies Corporation a diverse and safe workplace, with opportunities for our employees to receive educational benefits and cross-function skill-development to grow and develop their careers, all supported by competitive compensation and benefits.

*Workforce Composition -* At September 30, 2025, we employed 519 people predominantly on a full-time basis, of which 502 were employed in the United States and the remainder in the United Kingdom, Canada and Colombia. Our professional staff includes geoscientists, electrical and mechanical engineers, accountants, computer and data scientists, and marketing and human resource professionals. 58% of our global workforce is employed in manufacturing, 19% in engineering, 5% in field services and 18% in sales and administration. Our employees are not unionized. We have never experienced a work stoppage.

As a global manufacturer of high-tech offerings, we believe that a diverse workforce benefits everyone, from our skilled workforce, to our valued clients, our trusted shareholders and our society. Our domestic workforce make-up includes 29% white, 33% Asian, 25% Hispanic or Latino, 9% Black or African American, and 4% two or more races. Women in managerial roles represent 3% of our domestic workforce. We proudly employ veterans of the US Armed Forces, who make up 5% of our domestic workforce.

*Health, Safety and Wellness -* The success of our business is fundamentally connected to the well-being of our people. Accordingly, we are committed to the health and safety of our employees. We provide our full-time employees and their families with access to healthcare programs.

*Compensation and Benefits -* ****We provide competitive compensation and benefits programs to help meet the needs of our employees. In addition to salaries, these programs (which vary by country/region and employment classification) include an incentive compensation plan, a 401(k) Plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave, tuition assistance and on-site services, among others. We use targeted equity-based grants with vesting conditions to facilitate retention of personnel, particularly those with critical skills and experience.

*Talent Development -* ****We invest resources to develop the talent needed to remain a leading manufacturer and developer of industrial, border and perimeter security and seismic data acquisition products. We provide our employees with training opportunities and educational benefits to assist in career and skill development. We focus on continuous learning and provide feedback to assist in the development of talent.

*Company Culture* – Our Board of Directors established a Code of Business Conduct applicable to all our employees, directors and officers and a Supplemental Code of Ethics for our CEO and Senior Financial Officers in accordance with applicable U.S. federal securities laws and the NASDAQ Listed Company Manual. The Code of Business Conduct provides guidance on corporate policies such as anti-harassment, anti-corruption, substance abuse, anti-trust, conflict minerals compliance, international trade restrictions as well as policies against insider trading, conflict of interest and hedging of our common stock. We offer a Whistle Blower program designed to protect any employee who reports valid suspicions related to our financial accounting, internal controls, or like matters to management without fear of termination or similar repercussions.

*Human Rights* – We have established a Human Rights Policy Statement which demonstrates our commitment to supporting and promoting human rights that benefit all our stakeholders, including our customers, employees, shareholders, investors, and the communities in which we live and operate. Our approach is applied in our business operations, across our supply chain and through ethical business conduct. This policy statement promotes a safe and healthy workplace, diversity and inclusion, non-discrimination and anti-harassment as well as addresses forced labor, human trafficking, and child labor. The Human Rights Policy Statement is adhered to through our Business Code of Conduct and through responsible sourcing practices.

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Our values and ethics serve as the guiding force through which we proactively maintain the highest standards of business conduct. Our Core Values guide our corporate policies and practices and promote ethical business conduct and compliance with the law. Our employees understand the importance of applying our Core Values toward their daily best practices. Annually, we hold an internal Core Values survey to inform leadership on the values in action and opportunities to improve.

*Governance* – We pride ourselves on the highly ethical and transparent standards through the governance under our Board of Directors.

*Board Composition -* Our Board of Directors is chaired by a highly experienced, independent Director whose position is wholly separate and divided from the role of the Chief Executive Officer. Unlike organizations where the two leadership roles are intertwined, this distinction helps ensure varying viewpoints designed to deliver improved returns for the shareholders we serve and the communities in which we operate.

*Board Charter Reviews -* Every twelve-months, we conduct a Board and Board Committee assessment review to evalute and ensure that the highest quality standards are met.

*Executive Sessions Without Management* - In order to ensure original and independent thought, non-management Board members meet throughout the year.

*Audit Policies* – Our Audit Committee is comprised of trusted members who ensure the integrity of our financial statements, internal controls, compliance with legal and regulatory requirements, as well as the performance of our independent auditor.

*Enterprise Risk Management* ("ERM") – Our Board of Directors takes an enterprise-wide approach to reviewing each of our business segments, which encompass our Smart Water, Energy Solutions and Intelligent Industrial operations, which include our Security & Surveillance sector. Board members meet regularly to oversee and ensure that company objectives are met, shareholder concerns are addressed and ERM policies are maintained.

*Environmental* – We are committed to zero harm to people, property and the environment. We have an ISO 14001 certified environmental management system, employed over many health, safety and environmental programs. We do not exist in isolation. We strive to pursue a strategy of responsibility that not only encompasses all our activities but addresses the needs of our employees, customers, suppliers and our stakeholders. We operate in communities which have placed their trust in us. In doing this, we aim to better our impact on the environment and society, not only of our business but all businesses and organizations with whom we interact. We integrate responsible and sustainable practices throughout our organization. Our products are designed to not harm individuals, communities or the environment. We pledge to conduct ourselves in a most responsible manner in each community.

As a manufacturer, we have a responsibility to reuse or recycle waste materials from our operations. Over the last three years, we have recycled approximately 600 tons of recyclable materials. Year to date 2025, we have recycled over 80 tons of manufacturing waste materials. This includes production recyclable materials (aluminum, brass, copper, stainless steel, steel, and titanium as well as armored cable, film, lithium batteries, PCB boards and solder paste) plus paper, plastic, cardboard and e-waste (electronics).

**Financial Information by Segment and Geographic Area**

For a discussion of financial information by segment and geographic area, see Note 21 to the consolidated financial statements contained in this Annual Report on Form 10-K. For a description of risks attendant to our foreign operations, please see "Risk Factors - Our Foreign Subsidiaries and Foreign Marketing Efforts Are Subject to Additional Political, Economic, Legal and Other Uncertainties Not Generally Associated with Domestic Operations".

**Available Information**

We file annual, quarterly and special reports, proxy statements and other information with the Securities and Exchange Commission ("SEC"). Our SEC filings are available to the public over the internet at the SEC's website at www.sec.gov. Our SEC filings are also available to the public free of charge on our website at www.geospace.com. Please note that information contained on our website, whether currently posted or posted in the future, is not a part of this Annual Report on Form 10-K or the documents incorporated by reference in this Annual Report on Form 10-K.

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**Item 1A. Risk Factors**

*In evaluating the Company*'*s business, you should consider the following discussion of risk factors, in addition to other information contained in this report and in the Company*'*s other public filings with the U.S. Securities and Exchange Commission. Any such risks could materially and adversely affect our business, financial condition, results of operations, cash flow and prospects. However, the risks described below are not the only risks facing us. Additional risks and uncertainties not currently known to us or those we currently view to be immaterial may also materially and adversely affect our business, financial condition, results of operations, cash flow and prospects.*

**<u>External Factors that Could Adversely Affect Us</u>**

***Oil Commodity Price Levels Could Affect Demand for Our Oil and Gas Products, Which Could Materially and Adversely Affect Our Results of Operations and Liquidity.***

Demand for many of our products and the profitability of our operations depend primarily on the level of worldwide oil and gas exploration activity. Prevailing oil and gas prices, with an emphasis on crude oil prices, and market expectations regarding potential changes in such prices significantly affect the level of worldwide oil and gas exploration activity. During periods of improved energy commodity prices, the capital spending budgets of oil and natural gas operators tend to expand, which results in increased demand for our customers' services leading to increased demand in our products. Conversely, in periods when these energy commodity prices deteriorate, capital spending budgets of oil and natural gas operators tend to contract causing demand for our products to weaken. Historically, the markets for oil and gas have been volatile and are subject to wide fluctuations in response to changes in the supply of and demand for oil and gas, market uncertainty and a variety of additional factors that are beyond our control. These factors include the level of consumer demand, regional and international economic conditions, weather conditions, domestic and foreign governmental regulations (including those related to climate change), price and availability of alternative fuels, political conditions, the war between Russia and Ukraine, instability and hostilities in the Middle East and other significant oil-producing regions, increases and decreases in the supply of oil and gas, the effect of worldwide energy conservation measures and the ability of the Organization of Petroleum Exporting Countries ("OPEC") to set and maintain production levels and prices of foreign imports.

Any material changes in oil and gas prices or other market trends, like slowing growth of the global economy, could adversely impact seismic exploration activity and would likely affect the demand for the Company's products and could materially and adversely affect its results of operations and liquidity. Generally, imbalances in the supply and demand for oil and gas will affect oil and gas prices and, in such circumstances, demand for our oil and gas products may be adversely affected when world supplies exceed demand.

***The Ongoing Armed Conflict Between Russia and Ukraine Could Adversely Affect Our Business and Results of Operations.***

In February 2022, the Russian Federation launched a full-scale military invasion of Ukraine, and Russia and Ukraine continue to engage in active and armed conflict as of November 2024. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. As a result of the invasion, the governments of several western nations, including the U.S., Canada, the United Kingdom and the European Union, implemented new and/or expanded economic sanctions and export restrictions against Russia, Russian-backed separatist regions in Ukraine, certain banks, companies, government officials, and other individuals in Russia and Belarus.

A portion of our oil and gas product manufacturing was conducted through our wholly-owned subsidiary Geospace Technologies Eurasia LLC ("GTE") in the Russian Federation. In August 2024, we sold these operations to a group of former employees of GTE. We have continued to purchase products from the new ownership and expect to continue to do so for the foreseeable future. However, the rapid changes in rules and implementation of new rules on imports and exports of goods involving Russia has also led to serious delays in getting goods to or from Russia as port authorities struggle to keep up with the changing environment. If imports of these products from the Russian Federation are restricted by government regulation, we may be forced to find other sources for the manufacturing of these products at potentially higher costs. The risk of doing business in the Russian Federation and other economically or politically volatile areas could adversely affect our operations and earnings.

We have no way to predict the duration, progress, or outcome of the military conflict in Ukraine. The extent and duration of the military action, sanctions, and resulting market disruptions could be significant and could potentially have substantial impact on the global economy and our business for an unknown period of time.

***Our Foreign Subsidiaries and Foreign Marketing Efforts Are Subject to Additional Political, Economic, Legal and Other Uncertainties Not Generally Associated with Domestic Operations.***

Based on customer billing data, revenue to customers outside the United States accounted for approximately 37% of our revenue during fiscal year 2025; however, we believe the percentage of revenue outside the United States is likely higher since many of our products are first delivered to a domestic location and ultimately shipped to a foreign location. We again expect revenue outside of the United States to represent a substantial portion of our revenue for fiscal year 2026 and subsequent years.

Foreign revenue is subject to special risks inherent in doing business outside of the United States including the risk of war, terrorist activities, civil disturbances, embargo and government activities, shifting foreign attitudes about conducting business activities with the United States, restrictions of the movement and exchange of funds, inhibitions of our ability to collect accounts receivable or repossess our rental equipment, international sanctions, expropriation and nationalization of our assets or those of our customers, currency fluctuations, devaluations and conversion restrictions, confiscatory taxation or other adverse tax policies and governmental actions that may result in the deprivation of our contractual rights, all of which may disrupt markets or our operations.

Foreign revenue is also generally subject to the risk of compliance with additional laws, including tariff regulations and import and export restrictions. International revenue transactions for our products containing hydrophones require prior U.S. government approval in the form of an export license, which may be withheld by the U.S. government based upon factors which we cannot predict.

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***Increases in Tariffs, Trade Restrictions or Taxes on our Products Could Have an Adverse Impact on our Operations.***

Approximately 37% of our revenue for fiscal year 2025 was generated from customers outside of the U.S. We also purchase a portion of our raw materials from suppliers in China and other foreign countries. The commerce we conduct in the international marketplace makes us subject to tariffs, trade restrictions and other taxes when the raw materials we purchase, and the products we ship, cross international borders. Trade tensions between the United States and China, as well as those between the U.S. and Canada, Mexico, and other countries have been escalating in recent years. In addition, the current presidential administration is utilizing tariffs to fortify domestic tax revenue which could further impact our business and operations, due to potential trade wars as a result of the implementation of tariffs or otherwise. Historically, trade tensions have led to a series of tariffs imposed by the U.S. on imports from China, as well as retaliatory tariffs imposed by China on imports from the U.S. If the U.S. and China are able to negotiate the issues to restore a mutually advantageous and fair trading regime, the increased tariffs could be eliminated. Certain raw materials we purchase from China are subject to these tariffs which has increased our manufacturing costs. Products we sell into certain foreign markets could also become subject to similar retaliatory tariffs making the products we sell uncompetitive to similar products not subjected to such import tariffs. Further changes in U.S. trade policies, tariffs, taxes, export restrictions or other trade barriers, or restrictions on raw materials including rare earth minerals, may limit our ability to produce products, increase our manufacturing costs, decrease our profit margins, reduce the competitiveness of our products, or inhibit our ability to sell products or purchase raw materials, which could have a material adverse effect on our business, results of operations or financial conditions. It remains unclear as to the tariff related impact of the future geopolitical climate will bring to our operations.

***Climate Change and Legislation Designed to Reduce Climate Change***

The physical and regulatory effects of climate change could have a negative impact on our operations, our customers' operations and the overall demand for our customers' products and, accordingly, our services. There is an increasing focus of local, state, regional, national and international regulatory bodies on Greenhouse Gas ("GHG") emissions and climate change issues. Legislation to regulate GHG emissions has periodically been introduced in the U.S. Congress, and there has been a wide-ranging policy debate, both in the United States and internationally, regarding the impact of these gases and possible means for their regulation. These efforts have included consideration of cap-and-trade programs, carbon taxes, and GHG reporting and tracking programs and regulations that directly limit GHG emissions from certain sources. Some of the proposals would require industries to meet stringent new standards that would require substantial reductions in carbon emissions. Those reductions could be costly and difficult to implement. In the absence of federal GHG-limiting legislation, the EPA has determined that GHG emissions present a danger to public health and the environment and has adopted regulations that, among other things, establish construction and operating permit reviews for GHG emissions from certain large stationary sources, require the monitoring and annual reporting of GHG emissions from certain oil and natural gas system sources, implement Clean Air Act emission standards directing the reduction of methane emissions from certain new, modified, or reconstructed facilities in the oil and natural gas sector, and together with the DOT, implement GHG emissions limits on vehicles manufactured for operation in the United States.

In April 2016, the United States signed the Paris Agreement, which requires countries to review and "represent a progression" in their nationally determined contributions, which set emissions reduction goals, every five years. Under the Paris Agreement, the United States has committed to reducing its greenhouse gas emissions by 50-52% by 2030 from its 2005 levels. However, the United States is currently scheduled to end its participation in the Paris Agreement in January 2026. In November 2021, the Unites States and other countries entered the Glasgow Climate Pact, which includes a range of measures designed to address climate change, including but not limited to the phase-out of fossil fuel subsidies, reducing methane emissions 30% by 2030, and cooperating toward the advancement of the development of clean energy. Several states and geographic regions in the United States have also adopted legislation and regulations to reduce emissions of GHGs, including cap and trade regimes and commitments to contribute to meeting the goals of the Paris Agreement.

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It is not possible at this time to predict the timing and effects of climate change or whether additional climate-related legislation, regulations or other measures will be adopted at the local, state, regional, national and international levels. However, continued efforts by governments and non-governmental organizations to reduce GHG emissions appear likely, and additional legislation, regulation or other measures that control or limit GHG emissions or otherwise seek to address climate change could adversely affect our customers and our business. Because our business depends on the level of oil exploration, existing or future laws or regulations related to GHGs and climate change, including incentives to conserve energy or use alternative energy sources, could negatively impacted our business if such laws or regulations reduce demand for our customers' products and, accordingly, our services.

These risks may result in our customers restricting or cancelling exploration or production activities which also could reduce demand for our products and services. In addition to regulatory impacts, the occurrence of weather events caused or exacerbated by climate change could impact local, national or global commodity demand or availability in ways that could be material to our business and/or the businesses of our customers.

***We Operate in Highly Competitive Markets, and Our Competitors May Be Able to Provide Newer or Better Products Than We Are Able to Provide.***

The markets for most of our products are highly competitive. Many of our existing and potential competitors have substantially greater marketing, financial and technical resources than we do. Some competitors currently offer a broader range of instruments and equipment for sale than we do and may offer financing arrangements to customers on terms that we may not be able to match. In addition, new competitors may enter the market and competition could intensify.

Revenue from our products may not continue at current volumes or prices if current competitors or new market entrants introduce new products with better features, performance, price or other characteristics than our products. Competitive pressures or other factors may also result in significant price competition that could have a material adverse effect on our results of operations.

***A General Downturn in the Economy in Future Periods May Adversely Affect Our Business.***

Economic slowdowns, currently or in the future, in the United States, China or India, could adversely affect our business in ways that we cannot predict. During times of economic slowdown, our customers may reduce their capital expenditures and defer or cancel pending projects and product orders. Such developments occur even among customers that are not experiencing financial difficulties. During times of economic slowdowns, some of our customers have (and other customers may have) undergone restructuring or bankruptcy that has or could adversely impact our revenues and profitability. Any economic downturn may adversely affect the demand for oil and gas generally or cause volatility in oil and gas commodity prices and, therefore, adversely affect the demand for delivery of our oil and gas products. It could also adversely affect the demand for consumer and industrial products, which could in turn adversely affect our Adjacent Markets business segment. To the extent these factors adversely affect other companies in the industries we serve, there could be an oversupply of products and services and downward pressure on pricing for our products and services, which could adversely affect us. Additionally, bankruptcies or financial difficulties among our oil and gas customers could reduce our cash flow and adversely impact our liquidity and profitability. For a discussion of the customers of our oil and gas products, see "The Limited Market for Our Oil and Gas Products Can Affect Our Revenue," below.

**<u>Risks Associated with Our Business Strategy and Operations</u>**

***Our New Products Require a Substantial Investment by Us in Research and Development Expense and May Not Achieve Market Acceptance.***

Our outlook and assumptions are based on various macro-economic factors and internal assessments, and actual market conditions could vary materially from those assumed. In recent years, we have incurred significant expenditures to fund our research and development efforts, and we intend to continue those expenditures in the future. However, research and development is by its nature speculative, and we cannot assure you that these expenditures will result in the development of new products or services or that any new products and services we have developed recently or may develop in the future will be commercially marketable or profitable to us. In particular, we have incurred substantial expenditures to develop our ocean bottom nodal seismic data acquisition systems, as well as other products for PRM applications. In addition, we try to use some of our capabilities to supply products to smart water and intelligent industrial products. We cannot assure you that we will realize our expectations regarding acceptance of and revenue generated by our new products and services in existing or new markets.

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***The Short-Term Nature of Our Order Backlog for Sales of Our Oil and Gas Products and Delayed or Canceled Customer Orders May Cause Us to Experience Fluctuations in Quarterly Results of Operations.***

Historically, the rate of new orders for the sale of our oil and gas products has varied substantially from quarter to quarter. Moreover, we typically operate, and expect to continue operating, on the basis of orders in-hand for our products before we commence substantial manufacturing "runs." The short-term nature of our order backlog for most of our oil and gas products generally does not allow us to predict with any accuracy demand for our products more than approximately three months in advance. Thus, our ability to replenish orders and the completion of orders, particularly large orders for deep water PRM projects, can significantly impact our operating results and cash flow for any quarter, and results of operations for any one quarter may not be indicative of results of operations for future quarters.

Additionally, customers can delay or even cancel orders and rental contracts before product delivery occurs. For larger orders which generally require us to make a substantial capital investment in our inventories or rental fleet, we attempt to negotiate for a non-refundable deposit or cancellation penalties depending on our relationship with the customer. However, such deposits or penalties, even when obtained, may not fully compensate us for our inventory investment and forgone profits if the order is ultimately cancelled.

These periodic fluctuations in our operating results and the impact of any order delays/cancellations could adversely affect our stock price.

***Our Credit Risk Could Increase and We May Incur Credit Loss Write-Offs If Our Customers Continue to Face Difficult Economic Circumstances.***

While we believe that our allowance for credit losses is adequate in light of known circumstances, additional amounts attributable to uncollectible accounts and notes receivable and credit loss write-offs may have a material adverse effect on our future results of operations. Many of our oil and gas customers are not well capitalized and as a result cannot always pay our invoices when due. We have in the past incurred write-offs in our accounts and notes receivable due to customer credit problems. We have found it necessary from time to time to extend trade credit, including promissory notes, to long-term customers and others where some risks of non-payment exist. Many of our oil and gas customers continue to experience significant liquidity difficulties, which increase those credit risks, due to prolonged periods of low crude oil prices. An increase in the level of credit losses and any deterioration in our credit risk could adversely affect the price of our stock. In addition, we rent equipment to our oil and gas customers who utilize such equipment in various countries around the world. If these customers experience financial difficulties, it could be difficult or impossible to retrieve our rental equipment from foreign countries.

***The Industries in Which We Operate are Characterized by Rapid Technological Development and Product Obsolescence, Which May Affect Our Ability to Provide Product Enhancements or New Products on a Timely and Cost-Effective Basis.***

Our instruments and equipment are constantly undergoing rapid technological improvement. Our future success depends on our ability to continue to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;improve our existing product lines,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;address the increasingly sophisticated needs of our customers,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;maintain a reputation for technological leadership,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;maintain market acceptance of our products,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;anticipate changes in technology and industry standards,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;respond to technological developments on a timely basis and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;develop new markets for our products and capabilities.

Current competitors or new market entrants may develop new technologies, products or standards that could render our products obsolete. We cannot assure you that we will be successful in developing and marketing, on a timely and cost-effective basis, product enhancements or new products that respond to technological developments, that are accepted in the marketplace or that comply with new industry standards. Additionally, in anticipation of customer product orders, from time to time we acquire substantial quantities of inventories, which if not sold or integrated into products within a reasonable period of time could become obsolete. In such case, we would be required to impair the value of such inventories on our balance sheet.

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***The Limited Market for Oil and Gas Products and Border and Perimeter Security Products Can Affect Our Revenue.***

We generally market many of our oil and gas products to seismic service contractors. We estimate that fewer than 30 oil and gas seismic contracting companies are currently operating in countries other than those operating in the Russian Federation and the former Soviet Union, India, the People's Republic of China and certain Eastern European countries, where such information is difficult to verify. We estimate that fewer than 15 seismic contractors are engaged in marine seismic exploration activities. Due to these market factors, a relatively small number of customers, some of whom are experiencing financial difficulties, account for most of our oil and gas product revenue. From time to time, these contractors have sought to vertically integrate and acquire our competitors, which has influenced their supplier decisions before and after such transactions. In addition, consolidation among our customers may further concentrate our business to a limited number of customers and expose us to increased risks related to dependence on a small number of customers. We market our seabed PRM systems' products to large oil and gas companies. During the third quarter of fiscal year 2025, we entered into large-scale seabed PRM system contract, our first since 2014. Our border and perimeter products are sold to a small number of agencies within the U.S. government. The loss of a small number of these customers, and particularly our oil and gas customers, could materially and adversely impact our future revenues.

***We Cannot Be Certain of the Effectiveness of Patent Protection on Our Products.***

We hold and from time to time apply for certain patents relating to some of our products. We cannot assure you that our patents will prove enforceable or free of challenge, that any patents will be issued for which we have applied or that competitors will not develop functionally similar technology outside the protection of any patents we have or may obtain.

***Our Strategy of Renting Our Oil and Gas Seismic Products Exposes Us to Additional Risks Relating to Equipment Recovery, Rental Renewals, Technological Obsolescence and Impairment of Assets.***

Our rental fleet of oil and gas seismic equipment represents a significant portion of our assets and accounts for a significant portion of our revenue. Equipment we rent to our customers is frequently located in foreign countries where retrieval of the equipment after the termination of the rental agreement is difficult or impossible if the customer does not return the equipment. The costs associated with retrieving this equipment or the loss of equipment that is not retrieved could be significant and could adversely affect our operations and earnings.

The advancement of seismic technology having a significant competitive advantage over the equipment in our rental fleet could have an adverse effect on our ability to profitably rent and/or sell this equipment. Significant improvements in technology may also require us to record asset impairment charges to write down the value of our rental fleet investment and to invest significant sums to upgrade or replace our rental fleet with newer equipment demanded by our customers. In addition, rental contracts may not be renewed for equipment in our rental fleet. Significant technological improvements by our competitors could have an adverse effect on our results of operations and earnings.

Our equipment rental business has high fixed costs, which primarily consist of depreciation expenses. In periods of declining rental revenue, these fixed costs generally do not decline. As a result, any significant decline in rental revenue caused by reduced demand could adversely affect our results of operations.

***Our Diversification Strategy Using both Organic Expansion and Acquisitions May Not Be Successful.***

We seek to grow our business through a combination of organic initiatives and strategic acquisitions. Our ability to achieve organic growth depends on factors such as customer retention, market demand, product innovation, and our ability to attract and retain key personnel. There can be no assurance that our efforts will result in increased revenues or profitability.

In addition, we may pursue acquisitions to expand our market presence, product offerings, or geographic reach. Acquisitions involve numerous risks, including difficulties in identifying suitable targets, integrating operations, realizing anticipated synergies, retaining key employees, and managing increased operational complexity. We may also face unforeseen liabilities or costs associated with acquired businesses.

If we are unable to successfully execute our organic growth initiatives or effectively integrate and manage acquired businesses, our business, financial condition, and results of operations could be adversely affected.

***We Rely on Key Suppliers for Certain Components Used in Our Products.***

Certain electronic components used in our land and marine wireless products are purchased from two single source suppliers. In the event a change in one or both suppliers is necessary, significant engineering efforts would be required by us, which could adversely affect our financial performance.

For our imaging products, we purchase all of our thermal film from one manufacturer. Except for the film sold to us by this manufacturer, we know of no other source for thermal film that performs as well in our imaging equipment. If the manufacturer were to discontinue producing thermal film, were to become unwilling to contract with us on competitive terms, or were unable to supply thermal film in sufficient quantities to meet our requirements, our ability to compete in the direct thermal imaging marketplace could be impaired, which could adversely affect our financial performance.

***Our Success Depends Upon a Limited Number of Key Personnel.***

Our success depends on attracting and retaining highly skilled professionals. A number of our employees are highly-skilled engineers and other professionals. In addition, our success depends to a significant extent upon the abilities and efforts of the members of our senior management team. If we fail to continue to attract and retain such professionals, our ability to compete in the industry could be adversely affected.

***We Have a Minimal Disaster Recovery Program at Our Houston Facilities.***

Due to its proximity to the Texas Gulf Coast, our facilities in Houston, Texas are annually subject to the threat of hurricanes and the aftermath that follows. Hurricanes may cause, among other types of damage, the loss of electrical power for extended periods of time. If we lost electrical power at our Pinemont facility, or if a fire or other natural disaster occurred, we would be unable to continue our manufacturing operations during the power outage because we do not own a generator or any other back-up power source large enough to provide for our manufacturing power consumption needs. Additionally, we do not have an alternative manufacturing or operating location in the United States. Therefore, a significant disruption in our manufacturing operations could materially and adversely affect our business operations during an extended period of a power outage, fire or other natural disaster. We have a back-up generator to provide power for our information technology operations. We store our back-up data offsite and we replicate our mission critical data to an alternative cloud-based data center on a real-time basis. In the event of a major service interruption in our data center, we believe we would be able to activate our mission critical applications within less than 24 hours.

***Our Storage of Lithium Batteries is a Fire Hazard.***

We use lithium batteries in several of our products which are stored at our Pinemont facility. These batteries are known to pose significant fire hazards. Should a fire occur, it could result in personal injuries, damage to our facility and likely interruptions to our manufacturing operations. Such an event could materially and adversely affect our business operations. We currently are evaluating our fire suppression system in an effort further to mitigate this risk.

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***Our Credit Agreement Imposes Restrictions on Our Business.***

We and several of our subsidiaries domiciled in the United States are parties to a credit agreement. Borrowings under the credit agreement will be secured by substantially all of our domestic assets, except for certain excluded property. The credit agreement limits the incurrence of additional indebtedness, contains covenants that require us to maintain (i) a certain amount of consolidated tangible net worth and liquidity and (ii) minimum asset and interest coverage ratios. The credit agreement also contains other covenants customary in agreements of this type. Our ability to comply with these restrictions may be affected by events beyond our control, including, but not limited to, prevailing economic, financial and industry conditions and continuing declines in our product revenue. The breach of any of these covenants or restrictions, as well as any failure to make a payment of interest or principal when due, could result in a default under the credit agreement. Such a default would permit our lender to declare any amount borrowed from it to be due and payable, together with accrued and unpaid interest, and our ability to borrow under the credit agreement could be terminated. If we are unable to repay any debts owed to our lender, the lender could proceed against the collateral securing such debt. While we intend to seek alternative sources of cash in such a situation, there is no guarantee that any alternative cash source would be available or would be available on terms favorable to us.

***Reliance on Third Party Subcontractors Could Adversely Affect Our Results of Operations and Reputation.***

We may rely on subcontractors to complete certain projects. The quality and timing of production and services by our subcontractors is not totally under our control. Reliance on subcontractors gives us less control over a project and exposes us to significant risks, including late delivery, substandard quality and high costs. The failure of our subcontractors to deliver quality products or services in a timely manner could adversely affect our profitability and reputation.

***The High Fixed Costs of Our Operations Could Adversely Affect Our Results of Operations.***

We have a high fixed cost structure primarily consisting of (i) depreciation expenses associated with our rental equipment and (ii) fixed manufacturing costs including salaries and benefits, taxes, insurance, maintenance, depreciation and other fixed manufacturing costs. In regards to our rental equipment, large declines in the demand for rental equipment could result in substantial operating losses due to the on-going fixed nature of rental equipment depreciation expense. Concerning our product manufacturing costs, in periods of low product demand our fixed costs generally do not decline or may decline only in modest increments. Therefore, lower demand for our rental equipment and manufactured products could adversely affect our results of operations.

**<u>Legal and Compliance Risks</u>**

***Our Global Operations Expose Us to Risks Associated with Conducting Business Internationally, Including Failure to Comply with U.S. Laws Which Apply to International Operations, Such as the Foreign Corrupt Practices Act and U.S. Export Control Laws, as Well as the Laws of Other Countries.***

We have offices in Brazil, Colombia, Canada and the United Kingdom, in addition to our offices in the United States. In addition to the risks that are inherent in conducting business internationally, we are also liable for compliance with international and U.S. laws and regulations that apply to our international operations. These laws and regulations include data privacy requirements, labor relations laws, tax laws, anti-competition regulations, import and trade restrictions, export control laws, U.S. laws such as the Foreign Corrupt Practices Act and similar laws in other countries which also prohibit certain payments to governmental officials or certain payments or remunerations to customers. Many of our products are subject to U.S. export law restrictions that limit the destinations and types of customers to which our products may be sold, or require an export license in connection with revenue transactions outside the United States. Given the high level of complexity of these laws, there is a risk that some provisions may be inadvertently breached, for examples through the negligent or the unauthorized intentional behavior of individual employees, or our failure to comply with certain formal documentation requirements or otherwise. Additionally, we may be held liable for actions taken by our local dealers and partners. Violations of these laws and regulations could result in fines, criminal sanctions against us, our officers or our employees, and prohibitions on the conduct of our business. Any such violations could include prohibitions on our ability to offer our products in one or more countries and could materially damage our reputation, our brands, our international expansion efforts, our ability to attract and retain employees, and our business and operating results.

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***Because We Have No Plans to Pay Any Dividends for the Foreseeable Future, Investors Must Look Solely to Stock Appreciation for a Return on Their Investment in Us.***

We have not paid cash dividends on our common stock since our incorporation and do not anticipate paying any cash dividends in the foreseeable future. Any payment of cash dividends in the future will be dependent on the amount of funds legally available, our financial condition, capital requirements, loan covenants and other factors that our Board of Directors may deem relevant. Accordingly, investors must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.

***We Have a Relatively Small Public Float, and Our Stock Price May be Volatile.***

At September 30, 2025, we have approximately 12.6 million shares outstanding held by non-affiliates. This limited number of shares outstanding results in a relatively limited market for our common stock. Our daily trading volume for the year ended September 30, 2025 averaged approximately 122,000 shares. Our small float and daily trading volumes have in the past caused, and may in the future result in, significant volatility in our stock price.

**<u>Financial and Accounting Risks</u>**

***Unfavorable Currency Exchange Rate Fluctuations Could Adversely Affect Our Results of Operations.***

Substantially all of our third-party revenue from the United States is invoiced in U.S. dollars, though from time to time we may invoice revenue transactions in foreign currencies including intercompany sales. As a result, we may be subject to foreign currency fluctuations on our revenue. The reporting currency for our financial statements is the U.S. dollar. However, the assets, liabilities, revenue and costs of our Canadian and United Kingdom subsidiaries and our Brazilian and Colombian branch offices are denominated in currencies other than U.S. dollars. To prepare our consolidated financial statements, we must translate those assets, liabilities, revenue and expenses into U.S. dollars at then-applicable exchange rates. Consequently, increases and decreases in the value of the U.S. dollar versus these other currencies will affect the amount of these items in our consolidated financial statements, even if their value has not changed in their original currency. These translations could result in significant changes to our results of operations from period to period. For the fiscal year ended September 30, 2025, approximately 4% of our consolidated revenue was related to the operations of our foreign subsidiaries and branches.

***Our Long-Lived Assets May be Subject to Impairment.***

We periodically assess our long-lived assets for impairment. Significant sustained future decreases in crude oil and natural gas prices may require us to write down the value of our long-lived assets in our Energy Solutions business segment, including our manufacturing facilities, manufacturing equipment and rental equipment if future cash flows anticipated to be generated from these assets fall below the asset's net book value. Furthermore, we may be required to write down the value of other intangible assets related to our acquisition of the OptoSeis® fiber optic sensing technology or the goodwill and other intangible assets related to our Aquana or Geovox acquisitions if sufficient cash flows are not generated to recover the carrying value of such assets. If we are forced to write down the value of our long-lived assets, these non-cash asset impairments could adversely affect our results of operations.

***Should We Fail to Maintain an Effective System of Internal Control Over Financial Reporting, We May Not Be Able to Accurately Report Our Financial Results and Prevent Material Fraud, Which Could Adversely Affect the Value of Our Common Stock.***

Effective internal control over financial reporting is necessary for us to provide reliable financial reports and effectively prevent and detect material fraud. If we cannot provide reliable financial reports or prevent or detect material fraud, our operating results could be misstated. There can be no assurances that we will be able to prevent control deficiencies from occurring, which could cause us to incur unforeseen costs, negatively impact our results of operations, cause the market price of our common stock to decline, or have other potential adverse consequences.

**Item 1B. Unresolved Staff Comments**

None.

**Item *1C.* Cybersecurity**

***Cybersecurity Breaches and Other Disruptions of Our Information Technology Network and Systems Could Adversely Affect Our Business.***

Our Senior Vice President of Information Technology manages our security program. Oversight of the program occurs via IT metrics-based updates provided to an Information Technology Steering team (consisting of the executive officers and other key employees of the Company) on a quarterly basis. Additionally, multiple elements of our cybersecurity security program are tested internally and externally on a bi-yearly basis in alignment with our Sarbanes-Oxley information security controls, and we engage independent third parties annually to assess the risks associated with our information technology assets. Our cybersecurity program is part of our enterprise risk management strategy and includes policies and procedures designed to safeguard the confidentiality, integrity, and availability of our information assets. Lastly, a cybersecurity risk assessment is provided to our Board of Directors on an annual basis which includes metrics, security incidents, key risk indicators, and risk mitigation plans as well as on the status of material risks, mitigation measures, and incidents related to such risks. Our Board of Directors has overall responsibility for risk oversight, with the Information Technology Steering team assisting the Board in performing this function based on its respective areas of expertise. As such, the Information Technology Steering team performs materiality determinations of cyber incidents and advises the Board of Directors accordingly.

We maintain a comprehensive cybersecurity risk management program that aligns to the National Institute of Standards and Technology (NIST) Cyber Security Framework and adopts a variety of cybersecurity best practices across the enterprise. We leverage industry-leading cybersecurity vendors that provide the following capabilities: Managed Detection and Response (MDR); a Security Operations Center (SOC) that monitors the Company's IT assets on a *24x7x365* basis; tools to interdict emails with phishing links and malware payloads; data leak protection tools that provide real-time interdiction of data transfers outside of normal business usage; vulnerability detection and automated patching tools; firewalls and instruction detection systems; multi-factor authentication mechanisms; mobile device management systems; penetration testing; and various *third*-party assessments. Our critical IP data is maintained on segmented, access-controlled data stores. We utilize a variety of backup mechanisms for its data including both warm and cold storage solutions. Lastly, we utilize token-based technologies to support Payment Card Industry Data Security Standard (PCI DSS) compliance safe handling and protection of credit card data.

We have a defined security policy that is reviewed on an annual basis. We have established response procedures for cyber-security incidents and test the procedures on a periodic basis. We provide robust computer-based cybersecurity and wire fraud / phishing awareness training to all new employees as well as training to existing employees on an annual basis. We have *not* experienced material information security incidents in the last *three* years nor have we incurred any material expenses related to penalties and/or settlements related to a material breach nor have we been materially affected or reasonably likely to have had a material adverse effect on us, our business strategy, results of operations, or financial condition. Nevertheless, we do carry a cybersecurity insurance policy.

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**Item 2. Properties**

As of September 30, 2025, our operations included the following locations:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Location** | **Owned/Leased** | **Approximate Square Footage/Acreage** | **Use** | **Segment (see notes below)** |
| Houston, Texas | Owned | 387000 | See Note 1 below | 4,5 and 6 |
| Houston, Texas | Leased | 30000 | See Note 2 below | 4,5 and 6 |
| Austin, Texas | Leased | 9000 | See Note 3 below | 5 |
| Calgary, Alberta, Canada | Owned | 45000 | Manufacturing, sales and service | 5 and 6 |
| Luton, Bedfordshire, England | Owned | 8000 | Sales and service | 6 |
| Bogotá, Colombia | Owned | 19000 | Sales and service | 5 |

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(1) This property is located at 7007 Pinemont Drive in Houston, Texas (the "Pinemont Facility"). The Pinemont Facility contains substantially all manufacturing activities and all engineering, selling, marketing and administrative activities for us in the United States. The Pinemont Facility also serves as our international corporate headquarters.

(2) This property is located at 13430 Northwest Freeway, Suite 1050, in Houston, Texas. This facility supports the majority of research and development and engineering operations.

(3) This property is located at 8701 Cross Park Drive, Suite 100, in Austin, Texas. This facility supports the majority of our OptoSeis® research and development and engineering operations.

(4) Smart Water.

(5) Energy Solutions.

(6) Intelligent Industrial.

**Item 3. Legal Proceedings**

We are involved in various pending legal actions in the ordinary course of our business. Management is unable to predict the ultimate outcome of these actions because of the inherent uncertainty of litigation. However, management believes that the most probable, ultimate resolution of currently pending matters will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

**Item 4. Mine Safety Disclosures**

None.

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**PART II**

**Item 5. Market for Registrant**'**s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities**

**Holders of Record**

Our common stock is traded on The NASDAQ Global Select Market under the symbol "GEOS". On October 31, 2025, there were approximately 143 holders of record of our common stock, and the closing price per share on such date was $25.34 as quoted by The NASDAQ Global Select Market.

**Market Information for Common Stock**

The following table shows the high and low per share sales prices for our common stock reported on The NASDAQ Global Select Market.

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| | | |
|:---|:---|:---|
| **Year Ended September 30, 2025:** | **Low** | **High** |
| Fourth Quarter | $10.22 | $21.90 |
| Third Quarter | 5.51 | 18.99 |
| Second Quarter | 7.02 | 10.46 |
| First Quarter | 9.68 | 13.79 |
| **Year Ended September 30, 2024:** |  |  |
| &nbsp;&nbsp;&nbsp; Fourth Quarter | $8.09 | $10.81 |
| &nbsp;&nbsp;&nbsp; Third Quarter | 8.49 | 14.83 |
| &nbsp;&nbsp;&nbsp; Second Quarter | 11.40 | 17.09 |
| &nbsp;&nbsp;&nbsp; First Quarter | 10.35 | 13.74 |

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**Dividends**

Since our initial public offering in 1997, we have not paid dividends, and we do not intend to pay cash dividends on our common stock in the foreseeable future. We presently intend to retain our earnings for use in our business, with any future decision to pay cash dividends dependent upon our growth, profitability, financial condition and other factors our Board of Directors may deem relevant.

**Securities Authorized for Issuance under Equity Compensation Plans**

The following equity plan information is provided as of September 30, 2025:

<u>Equity Compensation Plan Information</u>

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| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (a)** | **Weighted-average Exercise Price of Outstanding Options, Warrants and Rights (b)** | **Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a)) (c)** |
|  | **(In shares)** | **(In dollars per share)** | **(In shares)** |
| Equity Compensation Plans Approved by Security Holders (1) | 332693 | N/A | 682071 |
| Equity Compensation Plans Not Approved by Security Holders |  |  |  |
| Total | 332693 | N/A | 682071 |

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(1) The number of securities shown in column (c) represents number of securities remaining available for issuance under the Company's 2014 Long Term Incentive Plan, as amended (the "2014 Plan"). The 2014 Plan allows for the issuance of restricted stock awards, performance stock awards, performance stock unit awards, restricted stock unit awards (the foregoing, "Full Value Awards"), stock options and stock appreciation rights. For purposes of calculating the number of securities remaining under the 2014 Plan in column (c), Full Value Awards are counted as 1.5 shares for each share awarded. The number of securities shown in column (a) of the table above represents restricted stock unit awards outstanding under the 2014 Plan. Column (b) excludes restricted stock unit awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19

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**Recent Sales of Unregistered Securities and Use of Proceeds**

None.

**Purchases of Equity Securities by the Issuer and Affiliated Purchasers**

None.

**Item 6. [Reserved]**

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**Item 7. Management**'**s Discussion and Analysis of Financial Condition and Results of Operations**

The following is management's discussion and analysis of the major elements of our consolidated financial statements. You should read this discussion and analysis together with our consolidated financial statements, including the accompanying notes, and other detailed information appearing elsewhere in this Annual Report on Form 10-K, including under the heading "Risk Factors." The discussion of our financial condition and results of operations includes various forward-looking statements about our markets, the demand for our products and services and our future plans and results. These statements are based on assumptions that we consider to be reasonable but that could prove to be incorrect. For more information regarding our assumptions, you should refer to the section entitled "Cautionary Note Regarding Forward-Looking Statements and Assumptions" below.

**Cautionary Note Regarding Forward-Looking Statements and Assumptions**

This Annual Report on Form 10-K and the documents incorporated by reference herein, if any, contain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "may", "will", "should", "intend", "expect", "plan", "budget", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "continue", "evaluating" or similar words. Statements that contain these words should be read carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward-looking statements include, among others, statements that we make regarding our expected operating results, the adoption, results and success of our rollout of our Aquana smart water valves and cloud-based control platform, future demand for our Quantum security solutions, the adoption and sale of our products in various geographic regions, potential tenders for PRM systems, sales or rentals for ocean bottom nodes, the adoption of Quantum's SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our Pioneer™ system, the fulfillment of customer payment obligations, the impact of the current armed conflict between Russia and Ukraine, our ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefor, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption "Risk Factors", as well as cautionary language in this Annual Report on Form 10-K, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of our acquisitions to yield positive operating results and decreases in commodity price levels which could reduce demand for our products, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, inability to collect on promissory notes, lack of further orders for our ocean bottom rental equipment, failure of our Quantum products to be adopted by the border and perimeter security market, or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in this Annual Report on Form 10-K could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise.

**Background**

We design and manufacture seismic instruments and equipment and primarily market these products to the oil and gas industry to locate, characterize and monitor hydrocarbon producing reservoirs. We also market our seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. We design and manufacture Hydroconn® water meter connector products, IoT water values, imaging equipment and provide contract manufacturing services. For further information on the nature of our operations, see the information under the heading "Business" in this Annual Report on Form 10-K.

**Consolidated Results of Operations**

As we have reported in the past, our revenue and operating profits have varied significantly from quarter-to-quarter, and even year-to-year, and are expected to continue that trend in the future, especially when our quarterly or annual financial results are impacted by the presence or absence of relatively large, but somewhat unpredictable, sales of our oil and gas PRM systems and/or wireless seismic data acquisition systems for land and marine applications.

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We report and evaluate financial information for three segments: Smart Water, Energy Solutions and Intelligent Industrial. Summary financial data by business segment follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **YEAR ENDED SEPTEMBER 30,** | **YEAR ENDED SEPTEMBER 30,** |
|  | **2025** | **2024** |
| **Smart Water** |  |  |
| &nbsp;&nbsp;&nbsp; Product revenue | $35816 | $32434 |
| Income from operations | 5663 | 9215 |
| **Energy Solutions** |  |  |
| Product revenue | 44600 | 58878 |
| Rental revenue | 6106 | 19099 |
| &nbsp;&nbsp;&nbsp; Total revenue | 50706 | 77977 |
| Income from operations | 388 | 18570 |
| **Intelligent Industrial** |  |  |
| Product revenue | 23788 | 24724 |
| Rental revenue | 172 | 167 |
| &nbsp;&nbsp;&nbsp; Total revenue | 23960 | 24891 |
| Loss from operations | (4329) | (6691) |
| **Corporate** |  |  |
| &nbsp;&nbsp;&nbsp; Revenue | 321 | 296 |
| Loss from operations | (13006) | (13977) |
| **Consolidated Totals** |  |  |
| &nbsp;&nbsp;&nbsp; Revenue | 110803 | 135598 |
| Income (loss) from operations | (11284) | 7117 |

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**Overview**

Growing industry acceptance of our water meter cables and connectors provides a strong enabler for additional revenue from our Smart Water segment. Automatic meter reading efficiencies in operations and improved customer service has begun to be understood by the municipalities of the United States. We expect this portion of our business to continue to grow for the foreseeable future. Additionally, we anticipate this segment to see revenue contributions from our Aquana smart water valve and IoT technology products as market traction and increased sales backlog continues to gather. Given the well-known and often extreme volatility experienced in our Energy Solutions segment, careful expansion of products and market diversity in our Smart Water and Intelligent Industrial segments has been a longstanding part of our strategic vision and reflects our on-going diversification efforts.

Our Energy Solution segment saw a shift from rentals of our ocean bottom nodes to purchases of the equipment in fiscal years 2024 and 2025. This shift signifies our customer's recognition of future backlog to justify ownership versus renting the nodes. We do not expect significant expansion of the ocean bottom nodal market, because we expect the market is saturable and future rental fleet use will come from our customers' need to temporarily expand their nodal fleet. We expect our Energy Solutions segment to provide a significant portion of our revenue for years to come, but in diminishing portion to our other segments. During the third quarter of fiscal year 2025, we entered into a PRM contract. The duration of the contract is expected to be approximately 18 months. Revenue will be recognized in our Energy Solutions segment over the duration of the contract.

We continue to maintain a strong balance sheet with no debt. Our current liquidity enables our ability to seek out business acquisitions and allows us to continue investments in capital assets and product research and development, which have historically driven revenue growth.

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*Fiscal Year 2025 Compared to Fiscal Year 2024*

Consolidated revenue for fiscal year 2025 was $110.8 million, a decrease of $24.8 million, or 18.3%, from fiscal year 2024. The decrease in revenue was primarily due to lower product revenue from our Energy Solutions segment. Revenue for fiscal year 2025 included a $17 million sale of ocean bottom nodes structured as a sales-type lease. However, in comparison, revenue for fiscal year 2024 included a $30 million sale of our Mariner® shallow water ocean bottom nodes. The decrease was also attributable to a decrease in our wireless marine rental revenue. The decrease in consolidated revenue for fiscal year 2025 was partially offset by an increase in demand for our Hydroconn® cable and connector products from our Smart Water segment.

Consolidated gross profit for fiscal year 2025 was $32.9 million, a decrease of $19.7 million, or 37.4%, from fiscal year 2024. The decrease in gross profit was primarily due to a decrease in ocean bottom nodes product revenue and a lower utilization of our rental fleet, and the operating costs of our rental fleet are primarily depreciation expense, which is not variable with revenue. The decrease in gross profit was also attributable to low gross margins on sales of our land-based wireless products due to very strong price competition on these products and due to an increase in tariffs on the raw materials we purchase.

Consolidated operating expenses for fiscal year 2025 were $48.8 million, an increase of $3.3 million, or 7.3%, from fiscal year 2024. The increase was primarily due to (i) higher personnel costs, including severance costs and acceleration of stock-based compensation expense and (ii) an increase in sales and marketing costs. The increase was partially offset by a $2.8 million impairment charge on intangible assets in the prior year.

In June 2025, we sold our real property located at 4318 Northfield Lane Houston, Texas. The 17.3-acre property served as additional property for our main campus and contained legacy structures used to support our manufacturing and warehousing operations We recognized a gain on disposal of property of $4.6 million during the third quarter of fiscal year 2025. The gain is included as a component of income (loss) from operations in the accompanying statements of operations.

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**Segment Results of Operations**

*Fiscal Year 2025 Compared to Fiscal Year 2024*

**Smart Water**

*Revenue*

Revenue from our Smart Water products for fiscal year 2025 increased $3.4 million, or 10.4%, from the prior fiscal year. The increase was primarily due to an increase in demand for our Hydroconn® cable and connector products.

*Operating Income* 

Operating income from our Smart Water products for fiscal year 2025 decreased $3.6 million, or 38.5%, from the prior fiscal year. The decrease was primarily due to an increase in sales and marketing and research and development costs associated with our increase in revenue. The decrease was also attributable to lower gross margins due to changes in the mix of products sold proportionally affecting the allocation of manufacturing overhead and other costs of revenue to our business segments.

**Energy Solutions**

*Revenue*

Revenue from our Energy Solutions products for fiscal year 2025 decreased $27.3 million, or 35.0%, from fiscal year 2024. The components of this decrease were as follows:

● *<u>Product Revenue</u>* – Product revenue decreased $14.3 million, or 24.3%, from the prior fiscal year. The decrease was primarily due to lower demand for our ocean bottom nodes. Revenue for fiscal year 2025 included a $17 million sale of ocean bottom nodes and $11 million in sales of our wireless land-based Pioneer™. However, in comparison, revenue for fiscal year 2024 included a $30 million sale of our Mariner® shallow water ocean bottom nodes and an $11 million sale of our shallow water OBX 750E nodes. 

● *<u>Rental Revenue</u>* – Rental revenue decreased $13.0 million, or 68.0%, from the prior fiscal year. The decrease was due to lower utilization of our ocean bottom nodes rental fleet. The decrease for fiscal year 2025 was also attributable to the reversal of a $2.2 million receivable from a rental customer against rental revenue during the second quarter of fiscal year 2025. We determined the collectability of this receivable was less than probable. Any future cash received from this customer will be recognized as rental revenue.

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*Operating Income*

Operating income associated with our Energy Solutions products for fiscal year 2025 decreased $18.2 million, or 97.9%, from the prior fiscal year. The decrease was primarily due to (i) the decrease in revenues and related gross profits and (ii) higher research and development expenses, primarily personnel costs.

**Intelligent Industrial**

*Revenue*

Revenue from our Intelligent Industrial products for fiscal year 2025 decreased $0.9 million, or 3.7%, from the prior fiscal year. The decrease was primarily due to (i) revenue recognized for fiscal year 2024 on a government contract completed in the fourth quarter of fiscal year 2024 and (ii) lower demand for our imaging products. The decrease was partially offset by an increase in demand for our sensor products and contract manufacturing services.

*Operating Loss*

Operating loss from our Intelligent Industrial products for fiscal year 2025 decreased $2.4 million, or 35.3%, from the prior fiscal year. The decrease in operating loss was primarily due to a $2.8 million non-cash impairment of intangible assets recorded in the prior fiscal year. The decrease in operating loss for fiscal year 2025 was partially offset by (i) the decrease in revenue and (ii) lower gross margins due to changes in the mix of products sold proportionally affecting the allocation of manufacturing overhead and other costs of revenue to our business segments.

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**Liquidity and Capital Resources**

At September 30, 2025, we had $26.3 in cash and cash equivalents. For fiscal year 2025, we used $22.2 million of cash from operating activities. Uses of cash included (i) our net loss of $9.7 million, offset by non-cash charges of $14.6 million resulting from deferred income taxes, depreciation, amortization, accretion, inventory obsolescence, stock-based compensation and provision for credit losses, (ii) a $7.6 million increase in inventories for the strategic purchase of long lead-time components needed for use in wireless products, valves and contract manufacturing, (iii) $4.2 million increase in trade accounts and notes receivable due to timing of collections from customers and (iv) $1.3 million increase in other assets, primarily due to prepaid product purchases. These uses of cash were partially offset by a i) $4.8 increase in other liabilities primarily related to customer deposits and (ii) $2.4 million increase in trade accounts payable due to timing of payments to our suppliers.

For fiscal year 2025, we generated cash of $42.7 million in investing activities. Sources of cash consisted of (i) $30.4 million from the sale of short-term investments, (ii) $8.7 million of proceeds from the sale of property, plant and equipment and (iii) $14.2 million in proceeds from the sale of rental equipment. These sources of cash were partially offset by (i) $8.0 million for additions to our property, plant and equipment, (ii) $1.1 million for additions to our equipment rental fleet and (iii) $1.8 million paid for our Geovox acquisition. We expect fiscal year 2026 cash investments in property, plant and equipment will be approximately $7 million. Our capital expenditures are expected to be funded from our cash on hand and internal cash flows or, if necessary, borrowings under our new credit agreement.

For fiscal year 2025, we used $1.0 million from financing activities which consisted of (i) $0.4 million in debt issuance costs related the renewal of our credit agreement and (ii) $0.6 million for the purchase of treasury stock pursuant to a stock buy-back program authorized by our board of directors. The program authorized us to repurchase up to $7 million of our common stock in open market transactions. The program was completed in the second quarter of fiscal year 2025.

On August 29, 2025, we amended our credit agreement ("the Agreement") with Woodforest National Bank. The Agreement extended our revolving loan agreement, dated as of July 26, 2023, with Woodforest. The Agreement is for a three-year term and provides a revolving credit facility with a maximum availability of $25 million. Interest shall accrue on outstanding borrowings at 30 Day Term SOFR plus a margin equal to 2.75% per annum. We are required to make monthly interest payments on borrowed funds. The Agreement is secured by substantially all of our assets, except for certain excluded property. The Agreement requires us to maintain (i) a minimum consolidated tangible net worth of $85 million, (ii) minimum liquidity of $10 million, and (iii) a minimum asset coverage ratio of 2.00 to 1.00. The Agreement also requires us to maintain a springing minimum interest coverage ratio of at least 1.50 to 1.00, tested quarterly whenever (a) there is an outstanding balance on the revolving credit facility or (b) have letter of credit exposure greater than $1 million.

At September 30, 2025, we were in compliance with all covenants under the Agreement. At September 30, 2025, we could borrow approximately $8 million without violating any debt covenants. At September 30, 2025, we had no outstanding borrowings under the Agreement. We do not currently anticipate the need to borrow under the Agreement; however, we may decide to do so in the future, if needed.

Our available cash and cash equivalents was $26.3 million at September 30, 2025, which included $0.8 million of cash and cash equivalents held by our foreign subsidiaries and branch offices. In the absence of future profitable results of operations, we may need to rely on other sources of liquidity to fund our future operations, including executed rental contracts, available borrowings under the Agreement through its expiration in July 2028, sales or leveraging real estate assets, sales of rental assets and other liquidity sources which may be available to us. We currently believe that our cash will be sufficient to finance any future operating losses and planned capital expenditures through the next twelve months.

We do not have any obligations which meet the definition of an off-balance sheet arrangement, and which have or are reasonably likely to have a current or future effect on our financial statements or the items contained therein that are material to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26

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**Contractual Obligations**

*Contingent Consideration*

In August 2025, we acquired Geovox. In connection with the acquisition, we recorded an initial contingent earn-out liability of $2.5 million. Contingent payments, if any, will be based on eligible revenue generated during a four-year earn-out period. The maximum amount of contingent payments is $3.3 million.

In July 2021, we acquired Aquana. Pursuant to the merger agreement with Aquana, as amended ("the Merger Agreement"), the Company is subject to additional contingent cash payments to the former members of Aquana over a seven-year earn-out period. The contingent payments, if any, will be derived from certain eligible revenue generated during the earn-out period from products and services sold by Aquana. There is no maximum limit to the contingent cash payments that could be made. The Merger Agreement requires the continued employment of a certain key employee and former member of Aquana for the first five years of the seven-year earn-out period in order for any of Aquana's former members to be eligible for any earn-out payments. Due to the continued employment requirement, no liability has been recorded for the estimated fair value of earn-out payments for this transaction. Earn-outs achieved are recorded as compensation expense when incurred.

See Note 19 to our consolidated financial statements in this Annual Report on Form 10-K for more information on our contractual contingencies.

**Critical Accounting Estimates**

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We consider many factors in selecting appropriate operational and financial accounting policies and controls and in developing the estimates and assumptions that are used in the preparation of these financial statements. We continually evaluate our estimates, including those related to rental revenue recognition, bad debt reserves, inventory obsolescence reserves, business acquisitions and contingent earn-out liabilities. We base our estimates on historical experience and various other factors, including the impact from the current economic conditions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different conditions or assumptions.

Our normal credit terms for trade receivables are 30 days. In certain situations, credit terms for trade receivables may be extended to 60 days or longer and such receivables generally do not require collateral. Additionally, we provide long-term financing in the form of promissory notes and sales-type leases when competitive conditions require such financing and, in such cases, we may require collateral. We perform ongoing credit evaluations of our accounts and financing receivables, and allowances are recognized for potential credit losses.

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We record a write-down of our inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or net realizable value. Cost is determined on a first-in, first-out method, except that our subsidiary in the United Kingdom uses an average cost method to value its inventories.

We periodically review the composition of our inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder our ability to recover our investment in such inventories. Management's assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of our inventory investment will not be realized in our operating activities.

The value of our inventories not expected to be realized in cash, sold or consumed during our next operating cycle are classified as non-current assets in our consolidated balance sheets.

We accounted for our Geovox acquisition under the acquisition method of accounting. The total value of the consideration paid was allocated to the underlying net assets acquired, based on their respective estimated fair values. We utilized the excess earnings method to determine the fair value of assets and liabilities acquired, including discounted cash flows, external market values, valuations on recent transactions or a combination thereof, and believe that we used the most appropriate measure to value each asset or liability. The Company recognizes measurement-period adjustments in the reporting period in which the adjustment amounts, if any, are determined.

We established an earn-out liability in connection with our acquisition of Geovox in the fourth quarter of fiscal year 2025. We engaged the services of a valuation firm to measure the fair value of the liability. The valuation technique used to measure the fair value of the liability was a Monte Carlo simulation. The primary inputs included revenue forecast, risk free rate, revenue volatility, revenue discount rate and payment discount rate. We will review and assess the value of the liability on a quarterly basis. Adjustments, if any, will be included as a component of earnings in the consolidated statements of operations.

We recognize rental revenue in accordance with ASC Topic 842, *Leases*. In the event collectability of lease payments is not probable at the lease commencement date, we recognize revenue when payments are received. We regularly evaluate the collectability of our lease receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer, historical trends of the customer and current economic conditions. We suspend the recognition of rental revenue when the collectability of amounts due are no longer probable and record a direct write-off of the lease receivable to rental revenue.

**Recent Accounting Pronouncements**

Please refer to Note 1 of our consolidated financial statements contained in this Annual Report on Form 10-K for a discussion of recent accounting pronouncements.

**Management**'**s Current Outlook and Assumptions**

Regarding our Energy Solutions business segment, demand for our products is subject to volatile fluctuations in crude oil prices. As a result of substantial declines in crude oil prices in recent years, oil and gas exploration and production companies experienced a significant reduction in cash flows resulting in sharp reductions in their capital spending budgets for oil and gas exploration-focused activities including seismic data acquisition activities. While we experienced stronger wireless land product sales in fiscal year 2025, the need for new seismic equipment, particularly traditional land-based equipment, remains restrained due to our customers' (i) limited capital resources, (ii) lack of visibility into future demand for their seismic services and (iii) in some cases, under-utilized legacy equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28

------

The vast majority of our Energy Solutions business segment revenue in fiscal year 2025 was derived from wireless product sales. We believe our wireless product sales will moderately increase in fiscal year 2026 over 2025 levels, primarily driven by our recent introduction of our Pioneer™ land-based wireless system and our Mariner® wireless system, but we can make no assurance in this regard.

We expect that fiscal year 2026 revenue from our Energy Solutions reservoir products will increase significantly over fiscal year 2025 levels due to the PRM contract we entered into in the third quarter of 2025. The duration of the contract is expected to be approximately 18 months. Revenue will be recognized over the duration of the contract.

We expect fiscal year 2026 revenue from our Smart Water business segment products to increase slightly over fiscal year 2025 levels due in part to the continued increase in demand for our Hydroconn® products and growth in market acceptance in our Aquana products.

We expect fiscal year 2026 revenue from our Intelligent Industrial business segment products to increase over fiscal year 2025 levels due to our recent acquisition of Geovox's Heartbeat Detector® as well as optimism that demand for our surveillance and defense products and our contract manufacturing services will increase.

We are aggressively marketing our SADAR® technologies to both our security and oil and gas industry customers. While marked acceptance of SADAR® as an effective analytical tool for categorizing seismic data, we continue to believe acceptance will occur.

**Item 7A. Quantitative and Qualitative Disclosures about Market Risk**

Not required.

**Item 8. Financial Statements and Supplementary Data**

Our consolidated financial statements, including the reports thereon, the notes thereto and supplementary data begin at page F-1 of this Annual Report on Form 10-K and are incorporated herein by reference.

**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure**

None.

**Item 9A. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

As of the end of the period covered by this Annual Report on Form 10-K, we conducted an evaluation, under supervision and with the participation of management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended (Exchange Act). Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures are effective at a reasonable assurance level. Disclosure controls and procedures are defined by Rules 13a-15(e) and 15d-15(e) of the Exchange Act as controls and other procedures that are designed to ensure that information required to be disclosed by us in reports filed with the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

**Management**'**s Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining effective internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of September 30, 2025. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in *Internal Control Integrated Framework (2013)*. Based on this assessment, our management concluded that, as of September 30, 2025, our internal control over financial reporting is effective based on those criteria.

Our independent registered public accounting firm, RSM US LLP, has audited the effectiveness of our internal controls over financial reporting, as stated in their attestation report included in this Annual Report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 29

------

**Changes in Internal Control Over Financial Reporting**

There have not been any other changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the fiscal quarter ended September 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item *9B.* Other Information**

*None.*

**Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30

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**PART III**

**Item *10.* Directors, Executive Officers and Corporate Governance**

The information required by this Item is contained in our definitive Proxy Statement to be distributed within *120* days of *September 30, 2025*, in connection with our *2026* Annual Meeting of Stockholders under the captions "Election of Directors," "Executive Officers and Compensation," "Section *16*(a) Beneficial Ownership Reporting Compliance" and "Code of Ethics" and is incorporated herein by reference.

**Item *11.* Executive Compensation**

The information required by this Item is contained in our definitive Proxy Statement to be distributed within *120* days of *September 30, 2025*, in connection with our *2026* Annual Meeting of Stockholders under the caption "Executive Officers and Compensation" and is incorporated herein by reference.

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters**

The information required by this Item is contained in our definitive Proxy Statement to be distributed within 120 days of September 30, 2025, in connection with our 2026 Annual Meeting of Stockholders under the caption "Security Ownership of Certain Beneficial Owners and Management" and is incorporated herein by reference, and in Item 5, "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities," contained in Part II hereof.

**Item 13. Certain Relationships and Related Transactions and Director Independence**

The information required by this Item is contained in our definitive Proxy Statement to be distributed within 120 days of September 30, 2025, in connection with our 2026 Annual Meeting of Stockholders under the caption "Certain Relationships and Related Transactions" and is incorporated herein by reference.

**Item 14. Principal Accountant Fees and Services**

The information required by this Item is contained in our definitive Proxy Statement to be distributed within 120 days of September 30, 2025, in connection with our 2026 Annual Meeting of Stockholders under the caption "Independent Public Accountants" and is incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 31

------

**PART IV**

**Item 15. Exhibits**

**Financial Statements**

The financial statements listed on the accompanying Index to Financial Statements (see page F-1) are filed as part of this Annual Report on Form 10-K.

**Exhibits** 

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | **Description of Documents** |
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [<u>Amended and Restated Certificate of Formation of Geospace Technologies Corporation (incorporated by reference to Exhibit 3.1 to the Registrant</u><u>'</u><u>s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed May 8, 2015).</u>](http://www.sec.gov/Archives/edgar/data/1001115/000156459015003680/geos-ex31_2015033195.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [<u>Amended and Restated Bylaws of Geospace Technologies Corporation (incorporated by reference to Exhibit 3.2 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed August 8, 2019).</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312517291415/d453261dex32.htm) |
| 10.1 | [<u>Employment Agreement dated as of August 1, 1997, between the Company and Michael J. Sheen (incorporated by reference to the Registrant</u><u>'</u><u>s Registration Statement on Form S-1 filed September 30, 1997 (Registration No. 333-36727)).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/0000950129-97-004010.txt)  |
| 10.2 | [Employment Termination and Consulting Agreement dated June 30, 2023 between the Company and Michael J. Sheen (incorporated by reference to Exhibit 10.21 to the Registrant's Annual Report on Form 10-K for the year ended September 30, 2023 filed November 17, 2023).\*](http://www.sec.gov/Archives/edgar/data/1001115/000143774923032446/ex_593159.htm) |
| 10.3 | [<u>Employment Agreement effective as of January 1, 2012, by and between OYO Geospace Corporation and Walter R. Wheeler (incorporated by reference to Exhibit 99.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed December 9, 2011).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000118143111059624/rrd327591_36674.htm) |
| 10.4 | [<u>Employment Agreement effective as of January 1, 2012, by and between OYO Geospace Corporation and Robbin B. Adams (incorporated by reference to Exhibit 99.2 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed December 9, 2011).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000118143111059624/rrd327591_36675.htm) |
| 10.5 | [Employee Termination Agreement dated January 1, 2025 between the Company and Walter R. Wheeler (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, filed February 6, 2025).\*](http://www.sec.gov/Archives/edgar/data/1001115/000143774925003000/ex_772345.htm) |
| 10.6 | [Employment Agreement dated April 29, 2024 between the Company and Richard J. Kelley (incorporated by reference to Exhibit 10.5 to the Registrant's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed November 22, 2024).\*](http://www.sec.gov/Archives/edgar/data/1001115/000143774924036050/ex_740997.htm) |
| 10.7 | [Employment Agreement effective January 1, 2025, between the Company and Richard J. Kelley (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed March 4, 2025).\*](http://www.sec.gov/Archives/edgar/data/1001115/000143774925006029/ex_785505.htm) |
| 10.8 | [Employment Agreement effective January 1, 2025, between the Company and Robert Louis Curda (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed March 4, 2025).\*](http://www.sec.gov/Archives/edgar/data/1001115/000143774925006029/ex_785506.htm) |
| 10.9 | [Employment Agreement effective January 1, 2025, between the Company and Ronald Todd Bushey.\* \*\*](ex_879996.htm) |
| 10.10 | [<u>Geospace Technologies Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Appendix A to the Company</u><u>'</u><u>s Proxy Statement on Schedule 14A filed December 11, 2013).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312513469869/d640279ddef14a.htm) |
| 10.11 | [<u>First Amendment to the Geospace Technologies Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Appendix A to the Company</u><u>'</u><u>s Proxy Statement on Schedule 14A filed December 30, 2020).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312520329435/d14821ddef14a.htm) |
| 10.12 | [<u>Form of Employee Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex101.htm) |
| 10.13 | [<u>Form of Employee Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed November 26, 2018).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312518334017/d652116dex101.htm) |
| 10.14 | [<u>Form of Employee Incentive Stock Option Award Agreement (incorporated by reference to Exhibit 10.2 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex102.htm) |
| 10.15 | [<u>Form of Employee Non-Qualified Stock Option Award Agreement (incorporated by reference to Exhibit 10.3 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex103.htm) |
| 10.16 | [<u>Form of Performance Option Agreement (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed November 20, 2015).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312515383701/d43908dex101.htm) |
| 10.17 | [<u>Form of Consultant Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.4 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex104.htm) |
| 10.18 | [<u>Form of Consultant Stock Option Award Agreement (incorporated by reference to Exhibit 10.5 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex105.htm) |
| 10.19 | [<u>Form of Director Stock Option Award Agreement (incorporated by reference to Exhibit 10.6 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex106.htm) |
| 10.20 | [<u>Form of Director Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.7 to the Registrant</u><u>'</u><u>s Form S-8 filed May 21, 2014).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312514208368/d729644dex107.htm) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 32

------

---

| | |
|:---|:---|
| 10.21 | [<u>Form of Director Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Form 10-Q filed May 3, 2019).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000156459019015534/geos-ex101_13.htm) |
| 10.22 | [<u>Form of Employee Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed November 26, 2018).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312518334017/d652116dex101.htm) |
| 10.23 | [<u>Form of Amended and Restated Indemnity Agreement (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed May 26, 2015).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312515200111/d931117dex101.htm) |
| 10.24 | [<u>Geospace Technologies Corporation Annual Bonus Program (incorporated by reference to Exhibit 10.23 to the Registrant</u><u>'</u><u>s Annual Report on Form 10-K for the year ended September 30, 2017 filed December 1, 2017).\*</u>](http://www.sec.gov/Archives/edgar/data/1001115/000156459017024421/geos-ex1023_735.htm)  |
| 10.25 | [<u>Credit Agreement dated July 26, 2023 among the Company, and each other person from time to time party thereto as a borrower, and Woodforest National Bank, as lender</u>](http://www.sec.gov/Archives/edgar/data/1001115/000143774923021331/ex_552347.htm)[<u>(incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed August 1, 2023).</u>](http://www.sec.gov/Archives/edgar/data/1001115/000143774923021331/ex_552347.htm) |
| 10.26 | [First Amended and Restated Credit Agreement dated August 29, 2025 among the Company and each other person from time to time party thereto as a borrower, and Woodforest National Bank, as lender (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed September 4, 2025).](http://www.sec.gov/Archives/edgar/data/1001115/000100111525000003/ex_859168.htm) |
| 10.27 | [<u>Commercial Contract</u> <u>–</u> <u>Improved Property, dated June 3, 2019 by and between GTC, Inc. and Harmony Public Schools (incorporated by reference to Exhibit 10.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed June 3, 2019).</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312519164568/d722275dex101.htm) |
| 14.1 | [<u>General Code of Business Conduct and Supplemental Code of Ethics for CEO and Senior Financial Officers (incorporated by reference to Exhibit 14.1 to the Registrant</u><u>'</u><u>s Current Report on Form 8-K filed February 6, 2019).</u>](http://www.sec.gov/Archives/edgar/data/1001115/000119312519032376/d701295dex141.htm) |
| 19.1 | [Insider Trading Policy for Employees, Officers and Directors (incorporated by reference to the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed November 22, 2024).](http://www.sec.gov/Archives/edgar/data/1001115/000143774924036050/ex_740998.htm) |
| 21.1 | [Subsidiaries of the Registrant.\*\*](ex_860202.htm) |
| 23.1 | [Consent of RSM US LLP.\*\*](ex_860203.htm) |
| 31.1 | [Certification of the Company's Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\*\*](ex_860204.htm) |
| 31.2 | [Certification of the Company's Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\*\*](ex_860205.htm) |
| 32.1 | [Certification of the Company's Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\*\*](ex_860206.htm) |
| 32.2 | [Certification of the Company's Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\*\*](ex_860207.htm) |
| 97.1 | [Executive Compensation Clawback Policy (incorporated by reference to the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed November 22, 2024).](http://www.sec.gov/Archives/edgar/data/1001115/000143774924036050/ex_740999.htm) |
| 101 | The following financial information from the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets as of September 30, 2025 and September 30, 2024, (ii) the Consolidated Statements of Operations for the years ended September 30, 2025 and 2024, (iii) the Consolidated Statements of Comprehensive Income (Loss) for the years ended September 30, 2025 and 2024, (iv) the Consolidated Statements of Stockholders' Equity for the years ended September 30, 2025 and 2024, (v) the Consolidated Statements of Cash Flows for the years ended September 30, 2025 and 2024 and (vi) Notes to Consolidated Financial Statements.\*\* |
| 104 | The cover page from the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2025 formatted in iXBRL. \*\* |

---

------

\* This exhibit is a management contract or a compensatory plan or arrangement.

\*\* Filed herewith.

**Item 16. Form 10-K Summary**

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 33

------

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **GEOSPACE TECHNOLOGIES CORPORATION** | **GEOSPACE TECHNOLOGIES CORPORATION** |
| By: | /s/ **RICHARD J. KELLEY** |
|  | Richard J. Kelley, Director and Principal Executive Officer |
|  | November 21, 2025 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| **/s/ RICHARD J. KELLEY** | Director and Principal Executive Officer | November 21, 2025 |
| Richard J. Kelley |  |  |
| **/s/ ROBERT L. CURDA** | Executive Vice President, Chief Financial Officer and Secretary | November 21, 2025 |
| Robert L. Curda | (Principal Financial Officer and Principal Accounting Officer) |  |
| **/s/ STEPHEN C. JUMPER** | Chairman of the Board | November 21, 2025 |
| Stephen C. Jumper |  |  |
| **/s/ MARGARET S. ASHWORTH** | Director | November 21, 2025 |
| Margaret S. Ashworth |  |  |
| **/s/ THOMAS L. DAVIS** | Director | November 21, 2025 |
| Thomas L. Davis |  |  |
| **/s/ EDGAR R. GIESINGER, JR.** | Director | November 21, 2025 |
| Edgar R. Giesinger, Jr. |  |  |
| **/s/ RICHARD F. MILES** | Director | November 21, 2025 |
| Richard F. Miles |  |  |
| **/s/ WALTER R. WHEELER** | Director | November 21, 2025 |
| Walter R. Wheeler |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34

------

**GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| [<u>Reports of Independent Registered Public Accounting Firm</u>](#reports)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [F-2](#reports) |
| [<u>Consolidated Balance Sheets as of September 30, 2025 and 2024</u>](#bs) | [F-5](#bs) |
| [<u>Consolidated Statements of Operations for the Years Ended September 30, 2025 and 2024</u>](#ops) | [F-6](#ops) |
| [<u>Consolidated Statements of Comprehensive Income (Loss) for the Years Ended September 30, 2025 and 2024</u>](#comp) | [F-7](#comp) |
| [<u>Consolidated Statements of Stockholders</u><u>'</u> <u>Equity for the Years Ended September 30, 2025 and 2024</u>](#se) | [F-8](#se) |
| [<u>Consolidated Statements of Cash Flows for the Years Ended September 30, 2025 and 2024</u>](#cf) | [F-9](#cf) |
| [<u>Notes to Consolidated Financial Statements</u>](#notes)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  | [F-10](#notes) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-1

------

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors of Geospace Technologies Corporation

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Geospace Technologies Corporation and its subsidiaries (the Company) as of September 30, 2025 and 2024, the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the two years in the period ended September 30, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended September 30, 2025, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of September 30, 2025, based on criteria established in *Internal Control*—*Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated November 21, 2025 expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-2

------

***Inventory Valuation***

As described in Note 1 to the financial statements, the Company's carrying value of inventories, net, which is stated at lower of cost or net realizable value, was $48 million as of September 30, 2025. The valuation of inventories is based on the Company's periodic review of the composition of its inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder its ability to recover its investment in such inventories. The Company's assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of the Company's investment will not be realized in its operating activities.

We identified the valuation of inventories at the lower of cost or net realizable value as a critical audit matter due to the significant judgment and estimates required by management. Determining whether a decline in value has occurred requires management to make complex judgments related to (i) historical and estimated future product demand in relation to quantities on hand and (ii) obsolescence of certain products based on changes in technology and demand. Auditing these judgments is especially challenging and involved significant auditor judgment due to fluctuations in sales trends and evolving customer demands.

Our audit procedures related to the Company's valuation of inventory included the following, among others:

● We obtained an understanding of the relevant controls related to inventory valuation reserve and tested such controls for design and operating effectiveness.

● We evaluated management's calculation of the inventory valuation reserve by testing the mathematical accuracy of the calculation.

● We tested the completeness, accuracy, and relevance of the reports and inputs used in the Company's analysis.

● We evaluated the appropriateness and consistency of management's methods and assumptions used in developing their estimate of the inventory valuation reserve, which included consideration of recent changes in historical usage information.

● We evaluated management's process for subsequent adjustments to net realizable value by performing a retrospective review on an individual item basis to test for subsequent changes in the inventory values after the net realizable value had been established.

● We compared actual purchases and sales data on an individual item basis for selected inventory items and aggregated to perform an independent assessment of the net realizable value of inventory.

/s/ RSM US LLP

We have served as the Company's auditor since 2018.

Houston, Texas

November 21, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-3

------

**Report of Independent Registered Public Accounting Firm**

To the Stockholders and the Board of Directors of Geospace Technologies Corporation

**Opinion on the Internal Control Over Financial Reporting**

We have audited Geospace Technologies Corporation's (the Company) internal control over financial reporting as of September 30, 2025, based on criteria established in *Internal Control*—*Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2025, based on criteria established in *Internal Control*—*Integrated Framework* issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements of the Company and our report dated November 21, 2025, expressed an unqualified opinion.

**Basis for Opinion**

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

**Definition and Limitations of Internal Control Over Financial Reporting**

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ RSM US LLP

Houston, Texas

November 21, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-4

------

**Geospace Technologies Corporation and Subsidiaries**

**Consolidated Balance Sheets**

**(In thousands, except share amounts)**

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalents | $26338 | $6895 |
| &nbsp;&nbsp;&nbsp; Short-term investments |  | 30227 |
| &nbsp;&nbsp;&nbsp; Trade accounts and financing receivables, net | 28009 | 21868 |
| &nbsp;&nbsp;&nbsp; Inventories, net | 30901 | 26222 |
| &nbsp;&nbsp;&nbsp; Assets held for sale |  | 1841 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 3252 | 2313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 88500 | 89366 |
| Non-current inventories, net | 17113 | 18031 |
| Rental equipment, net | 8120 | 14186 |
| Property, plant and equipment, net | 23244 | 21083 |
| Non-current trade accounts and financing receivables, net | 8190 | 6375 |
| Operating right-of-use assets | 915 | 464 |
| Goodwill | 1258 | 736 |
| Other intangible assets, net | 5155 | 1649 |
| Other non-current assets | 542 | 304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $153037 | $152194 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accounts payable trade | $10369 | $8003 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities | 420 | 173 |
| &nbsp;&nbsp;&nbsp; Other current liabilities | 13641 | 9021 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 24430 | 17197 |
| Contingent consideration | 2540 |  |
| Non-current operating lease liabilities | 554 | 339 |
| Deferred tax liabilities, net | 4 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 27528 | 17570 |
| Commitments and contingencies (See Note 19) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp; Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp; Common stock, $.01 par value, 20,000,000 shares authorized, 14,378,962 and 14,206,082 shares issued, respectively; and 12,820,702 and 12,709,381 shares outstanding, respectively | 144 | 142 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 98845 | 97342 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 45558 | 55282 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (4538) | (4257) |
| &nbsp;&nbsp;&nbsp; Treasury stock, at cost, 1,558,260 and 1,496,701 shares, respectively | (14500) | (13885) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 125509 | 134624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $153037 | $152194 |

---

The accompanying notes are an integral part of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-5

------

**Geospace Technologies Corporation and Subsidiaries**

**Consolidated Statements of Operations**

**(In thousands, except share and per share amounts)**

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Revenue: |  |  |
| Products | $104204 | $116036 |
| Rental equipment | 6599 | 19562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue | 110803 | 135598 |
| Cost of revenue: |  |  |
| Products | 68079 | 69318 |
| Rental equipment | 9827 | 13707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cost of revenue | 77906 | 83025 |
| Gross profit | 32897 | 52573 |
| Operating expenses: |  |  |
| Selling, general and administrative | 29815 | 26554 |
| Research and development | 18916 | 16251 |
| Other intangible asset impairment |  | 2761 |
| Provision for (recovery of) credit losses | 66 | (110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 48797 | 45456 |
| Gain on disposal of property | 4616 |  |
| Income (loss) from operations | (11284) | 7117 |
| Other income (expense): |  |  |
| Loss on sale of subsidiary |  | (14539) |
| Interest expense | (169) | (187) |
| Interest income | 2537 | 1558 |
| Foreign currency transaction losses, net | (275) | (270) |
| Other, net | (145) | (143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense), net | 1948 | (13581) |
| Loss before income taxes | (9336) | (6464) |
| Income tax expense | 388 | 114 |
| &nbsp;&nbsp;&nbsp; Net loss | $(9724) | $(6578) |
| Loss per common share: |  |  |
| Basic | $(0.76) | $(0.50) |
| Diluted | $(0.76) | $(0.50) |
| Weighted average common shares outstanding: |  |  |
| Basic | 12793075 | 13151600 |
| Diluted | 12793075 | 13151600 |

---

The accompanying notes are an integral part of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-6

------

**Geospace Technologies Corporation and Subsidiaries**

**Consolidated Statements of Comprehensive Income (Loss)**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Net loss | $(9724) | $(6578) |
| Other comprehensive income (loss): |  |  |
| Recognition of cumulative translation adjustments due to sale of foreign entity |  | 13083 |
| Foreign currency translation adjustments | (224) | 417 |
| Change in unrealized gains (losses) on available-for-sale securities, net of tax | (57) | 67 |
| Total other comprehensive income (loss), net | (281) | 13567 |
| Total comprehensive income (loss) | $(10005) | $6989 |

---

The accompanying notes are an integral part of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-7

------

**Geospace Technologies Corporation and Subsidiaries**

**Consolidated Statements of Stockholders**' **Equity**

**For the years ended September 30, 2025 and 2024**

**(In thousands, except share amounts)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Common Stock*** | ***Common Stock*** |  |  | ***Accumulated*** |  |  |
|  | ***Shares*** | ***Amount*** | ***Additional Paid-In Capital*** | ***Retained Earnings*** | ***Other Comprehensive Loss*** | ***Treasury Stock*** | ***Total*** |
| Balance at October 1, 2023 | 13188489 | $140 | $96040 | $61860 | $(17824) | $(7500) | $132716 |
| Net loss | *—* |  |  | (6578) |  |  | (6578) |
| Other comprehensive income | *—* |  |  |  | 13567 |  | 13567 |
| Issuance of common stock pursuant to the vesting of restricted stock units | 175601 | 2 | (2) |  |  |  |  |
| Purchase of treasury stock | (654709) |  |  |  |  | (6385) | (6385) |
| Stock-based compensation | *—* |  | 1304 |  |  |  | 1304 |
| Balance at September 30, 2024 | 12709381 | 142 | 97342 | 55282 | (4257) | (13885) | 134624 |
| Net loss | *—* |  |  | (9724) |  |  | (9724) |
| Other comprehensive loss | *—* |  |  |  | (281) |  | (281) |
| Issuance of common stock pursuant to the vesting of restricted stock units | 172880 | 2 | (2) |  |  |  |  |
| Purchase of treasury stock | (61559) |  |  |  |  | (615) | (615) |
| Stock-based compensation | *—* |  | 1505 |  |  |  | 1505 |
| Balance at September 30, 2025 | 12820702 | $144 | $98845 | $45558 | $(4538) | $(14500) | $125509 |

---

The accompanying notes are an integral part of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-8

------

**Geospace Technologies Corporation and Subsidiaries**

**Consolidated Statements of Cash Flows**

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Net loss | $(9724) | $(6578) |
| &nbsp;&nbsp;&nbsp; Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax expense (benefit) | (31) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental equipment depreciation | 6176 | 10859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property, plant and equipment depreciation | 3752 | 3512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 218 | 395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets impairment expense |  | 2761 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of discounts on short-term investments | (171) | (566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense | 1505 | 1304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for (recovery of) credit losses | 66 | (110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory obsolescence expense | 3071 | 589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on sale of subsidiary |  | 14539 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit from sale of rental equipment | (16402) | (30998) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property, plant and equipment | (4679) | 16 |
| Realized gain on investments | (9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effects of changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trade accounts and notes receivable | (4244) | 6593 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (7571) | (10985) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | (1345) | (199) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable trade | 2353 | 2746 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 4803 | (2979) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in operating activities | (22232) | (9083) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property, plant and equipment | (7973) | (3857) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment in rental equipment | (1091) | (8321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of property, plant and equipment | 8675 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of rental equipment | 14171 | 31964 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of short-term investments |  | (32078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from the sale of short-term investments | 30407 | 17338 |
| Payment for business acquisition | (1750) |  |
| Payments received on note receivable related to sale of subsidiary | 253 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash disposed from sale of subsidiary |  | (1231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by investing activities | 42692 | 3824 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt issuance costs | (398) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of treasury stock | (615) | (6385) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities | (1013) | (6385) |
| Effect of exchange rate changes on cash | (4) | (264) |
| Increase (decrease) in cash and cash equivalents | 19443 | (11908) |
| Cash and cash equivalents, beginning of fiscal year | 6895 | 18803 |
| Cash and cash equivalents, end of fiscal year | $26338 | $6895 |

---

The accompanying notes are an integral part of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-9

------

**Geospace Technologies Corporation and Subsidiaries** 

**Notes to Consolidated Financial Statements**

***1.* Summary of Significant Accounting Policies**

*The Company*

Geospace Technologies Corporation and its subsidiaries are referred to collectively as the "Company". The Company designs and manufactures sophisticated technology solutions for applications in energy exploration, smart water management, as well as industrial and Internet of Things ("IoT"). The Company's seismic equipment and services are marketed to the energy exploration industry and used to locate, characterize and monitor hydrocarbon producing reservoirs. The Company also markets its seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. The Company designs and manufacture other products of a non-seismic nature, including water meter connector cables, imaging equipment, remote shutoff water valves and ("IoT") platform. Additionally, the Company provides specialized contract manufacturing services. In recent years, the revenue contribution from our non-energy related products has grown to represent nearly half of our total revenue. Its business diversification strategy has centered largely on translating expertise in ruggedized engineering and technology manufacturing into expanded customer markets.

*Basis of Presentation*

The accompanying financial statements present the consolidated financial position, results of operations and cash flows of the Company in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All significant intercompany balances and transactions have been eliminated.

*Use of Estimates*

The preparation of financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company considers many factors in selecting appropriate operational and financial accounting policies and controls and in developing the estimates and assumptions that are used in the preparation of these financial statements. The Company continually evaluates its estimates, including those related to revenue recognition, credit loss, collectability of rental revenue, inventory obsolescence reserves, self-insurance reserves, product warranty reserves, useful lives of long-lived assets, impairment of long-lived assets, impairment of goodwill and other intangible assets and deferred income tax assets. The Company bases its estimates on historical experience and various other factors that are believed to be reasonable under the circumstances. While management believes current estimates are reasonable and appropriate, actual results *may* differ from these estimates under different conditions or assumptions.

*Cash and Cash Equivalents*

The Company considers all highly liquid investments purchased with an original or remaining maturity at the time of purchase of *three* months or less to be cash equivalents. At *September 30, 2025*, cash and cash equivalents included $0.8 million held by the Company's foreign subsidiaries and branch offices.

*Concentrations of Risk*

<u>Credit</u>

The Company maintains its cash in bank deposit accounts that, at times, exceed federally insured limits. Management of the Company believes that the financial strength of the financial institutions holding such deposits minimizes the credit risk of such deposits.

The Company sells products to customers throughout the United States and various foreign countries. The Company's normal credit terms for trade receivables are 30 days. In certain situations, credit terms *may* be extended to 60 days or longer. The Company performs ongoing credit evaluations of its customers and generally does *not* require collateral for its trade receivables. Additionally, the Company provides long-term financing in the form of promissory notes and sales-type leases when competitive conditions require such financing. In such cases, the Company *may* require collateral. Allowances are recognized immediately for expected credit losses. The Company determines the allowance for credit losses through a review of several factors, including historical collection experience, customer credit worthiness, current aging of customer accounts and current financial conditions of its customers. Receivables are charged off against the allowance whenever it is probable that the balance will *not* be recoverable.

Two customers each comprised 19.1% and 16.2% of the Company's revenue during fiscal year *2025*. At *September 30, 2025*, the Company had trade accounts and financing receivables from these customers of $7.3 million and $2.2 million, respectively. Two customers each comprised 27.4% and 16.0% of the Company's revenue during fiscal year *2024*. At *September 30, 2024*, the Company had trade accounts and financing receivables from these customers of $4.1 million and $9.5 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *10*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

<u>Suppliers</u>

The Company purchases certain electronic components used in its land and marine wireless nodes from *two* single source suppliers. In the event a change in *one* or both suppliers is necessary, significant engineering design efforts would be required by the Company.

The Company purchases all of its thermal film from *one* manufacturer for its imaging products. Except for the film sold to the Company by this manufacturer, the Company knows of *no* other source for thermal film that performs as well in its imaging equipment. If the manufacturer were to discontinue producing thermal film, were to become unwilling to contract with the Company on competitive terms or were unable to supply thermal film in sufficient quantities to meet its requirements, the Company's ability to compete in the direct thermal imaging marketplace could be impaired, which could adversely affect its financial performance. Thermal film sales represented approximately 7% and 5% of the Company's revenue for fiscal years *2025* and *2024,* respectively.

*Short-term Investments*

The Company classifies its short-term investments as available-for-sale debt securities which have maturities of less than *one* year. These securities are carried at fair market value with net unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity. Credit losses are recorded as an allowance rather than a reduction of the amortized cost basis for debt securities determined to be impaired for which there is neither an intent nor a more-likely-than-*not* requirement to sell. Reversals of credit losses are recorded in current period income as they occur. The Company had no short-term investments at *September 30, 2025.*

*Inventories*

The Company records a write-down of its inventories when the cost basis of any manufactured product, including any estimated future costs to complete the manufacturing process, exceeds its net realizable value. Inventories are stated at the lower of cost or net realizable value. Cost is determined on the *first*-in, *first*-out method, except that certain of the Company's foreign subsidiaries use an average cost method to value their inventories.

The Company periodically reviews the composition of its inventories to determine if market demand, product modifications, technology changes, excessive quantities on-hand and other factors hinder our ability to recover its investment in such inventories. The Company's assessment is based upon historical product demand, estimated future product demand and various other judgments and estimates. Inventory obsolescence reserves are recorded when such assessments reveal that portions or components of the Company's inventory investment will *not* be realized in its operating activities.

The Company reviews its inventories for classification purposes. The value of inventories *not* expected to be realized in cash, sold or consumed during its next operating cycle are classified as non-current assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *11*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

*Property, Plant and Equipment and Rental Equipment*

Property, plant and equipment and rental equipment are stated at cost. Depreciation expense is calculated using the straight-line method over the following estimated useful lives:

---

| | | |
|:---|:---|:---|
|  | **Years** | **Years** |
| Rental equipment |  | 2 - 5 |
| Property, plant and equipment: |  |  |
| &nbsp;&nbsp;&nbsp; Machinery and equipment |  | 3 - 15 |
| &nbsp;&nbsp;&nbsp; Buildings and building improvements |  | 10 - 50 |
| &nbsp;&nbsp;&nbsp; Other |  | 5 - 10 |

---

Expenditures for renewals and betterments are capitalized. Repairs and maintenance expenditures are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss thereon is reflected in the statements of operations.

*Business Acquisitions*

The Company accounts for its business acquisitions under the acquisition method of accounting. The total value of the consideration paid for acquisitions is allocated to the underlying net assets acquired, based on their respective estimated fair values. The Company uses a number of valuation methods to determine the fair value of assets and liabilities acquired, including discounted cash flows, external market values, valuations on recent transactions or a combination thereof, and believes that it uses the most appropriate measure or a combination of measures to value each asset or liability. The Company utilized the excess earnings method to value its *fourth* quarter fiscal year *2025* acquisition of Geovox Securities, Inc. ("Geovox"). The Company recognizes measurement-period adjustments in the reporting period in which the adjustment amounts are determined.

*Contingent Consideration*

The Company established an earn-out liability in connection with its acquisition of Geovox in the *fourth* quarter of fiscal year *2025.* The Company engaged the services of a valuation firm to measure the fair value of the liability. The valuation technique used to measure the fair value of the liability was a Monte Carlo simulation. The primary inputs included revenue forcast, risk free rate, revenue volatility, revenue discount rate and payment discount rate. Company reviews and assesses the value of the liability on a quarterly basis. Adjustments, if any, will be included as a component of earnings in the consolidated statements of operations.

*Impairment of Long-lived Assets*

The Company's long-lived assets are reviewed for impairment whenever an event or change in circumstances indicates the carrying amount of an asset or group of assets *may not* be recoverable. The impairment review, if necessary, includes a comparison of expected future cash flows (undiscounted and without interest charges) to be generated by an asset group with the associated carrying value of the related assets. If the carrying value of the asset group exceeds the expected future cash flows, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value.

At *September 30, 2024,* in light of the Company's historical losses and continued delays in obtaining additional contracts from the U.S. Customs and Border Protection and other customers on its Emerging Markets segment (now a component of the Company's Intelligent Industrial segment), the Company performed a recoverability assessment on the long-lived assets of its Emerging Markets asset group in which its carrying value was compared to estimated undiscounted cash flows over the remaining useful life of the asset group's primary asset, which is its developed technology. The carrying value of the asset group was in excess of the estimated undiscounted future cash flows. Accordingly, a fair value analysis was performed. Based on the assessment, the Company determined the fair value of the asset was less than its carrying value. The Company used an excess earnings approach to value the asset. Key assumptions used in the analysis include revenue, gross margin and cash flow projections. As a result of the assessment, the Company recorded an impairment charge of $2.8 million on this asset group, which impaired its developed technology intangible asset in its entirety.

*Goodwill* 

The Company conducts its evaluation of goodwill at the reporting unit level on an annual basis as of *September 30* and more frequently if events or circumstances indicate that the carrying value of a reporting unit exceeds its fair value. The Company *first* assesses qualitative factors to determine if the fair value of a reporting unit exceeds its carrying amount. If, based on the qualitative assessment of events or circumstances, the Company determines it is more likely than *not* that the fair value of a reporting unit is more than its carrying amount then it does *not* perform a quantitative assessment. However, if the Company concludes otherwise, then it performs a quantitative assessment. If, based on the quantitative assessment, the Company determines that the fair value of a reporting unit is less that its carrying amount, a goodwill impairment is recognized equal to the difference between the carrying amount of the reporting unit and its fair value, *not* to exceed the carrying amount of the goodwill.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *12*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

*Other Intangible Assets* 

Intangible assets are carried at cost, net of accumulated amortization. The estimated useful life of the Company's other intangible assets are evaluated each reporting period to determine whether events or circumstances warrant a revision to the remaining amortization period. If the estimate of an intangible asset's remaining useful life is changed, the amortization period should be changed prospectively. Amortization expense is calculated using the straight-line method over the following estimated useful lives:

---

| | | |
|:---|:---|:---|
|  | ***Years*** | ***Years*** |
| Developed technology |  | 10 - 18 |
| Trade names |  | 5 |
| Customer relationships |  | 4 |
| Non-compete agreements |  | 4 |

---

*Revenue Recognition* 

See Note *2* to these consolidated financial statements.

*Research and Development Costs*

The Company expenses research and development costs as incurred. Research and development costs include salaries, employee benefit costs, department supplies, direct project costs and other related costs.

*Product Warranties*

Most of the Company's products do *not* require installation assistance or sophisticated instructions. The Company offers a standard product warranty obligating it to repair or replace equipment with manufacturing defects. The Company maintains a reserve for future warranty costs based on historical experience or, in the absence of historical product experience, management's estimates. Reserves for future warranty costs are included within other current liabilities on the consolidated balance sheets.

Changes in the product warranty reserve are reflected in the following table (in thousands):

---

| | |
|:---|:---|
| Balance at October 1, 2023 | $658 |
| Accruals for warranties issued during the year | 2331 |
| Settlements made (in cash or in kind) during the year | (1738) |
| Balance at September 30, 2024 | 1251 |
| Accruals for warranties issued during the year | 1365 |
| Settlements made (in cash or in kind) during the year | (1153) |
| Balance at September 30, 2025 | $1463 |

---

*Stock-Based Compensation*

The Company accounts for stock-based compensation, including grants of restricted awards and unqualified stock options in accordance with Accounting Standards Codification Topic *718,* which requires that all share-based payments (to the extent that they are compensatory) be recognized as an expense in the Company's consolidated statements of operations based on their fair values on the award date and the estimated number of shares it ultimately expects to vest.

The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period of the award. The Company's stock-based compensation plan and awards are more fully described in Note *16* to these consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *13*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

*Foreign Currency Gains and Losses*

The assets and liabilities of the Company's foreign subsidiaries and branch offices that have a foreign currency as their functional currency have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations have been translated using the average exchange rates during the year. Resulting translation adjustments have been recorded as a component of accumulated other comprehensive losses in stockholders' equity. Foreign currency transaction gains and losses are included in the statements of operations as they occur. Transaction gains and losses on intra-entity foreign currency transactions and balances, including advances and demand notes payable on which settlement is *not* planned or anticipated in the foreseeable future, are recorded in "accumulated other comprehensive loss" on our consolidated balance sheets.

*Fair Value*

Fair value is the price that would be received to sell an asset or the amount paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. U.S. GAAP has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into *three* levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Level *1* represents unadjusted quoted prices in active markets for identical assets and liabilities. Level *2* represents quoted prices for similar assets and liabilities in active markets (other than those included in Level *1*) which are observable, either directly or indirectly. Level *3* represents valuations derived from valuation techniques in which *one* or more significant inputs or significant value drivers are unobservable. Also see Note *6* to these consolidated financial statements.

*Income Taxes*

Income taxes are presented in accordance with the Accounting Standards Codification Topic *740* ("Topic *740"*) guidance for accounting for income taxes. The estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the accompanying consolidated balance sheets, as well as operating loss and tax credit carrybacks and carryforwards are recorded. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities (temporary differences) and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company periodically reviews the recoverability of tax assets recorded on the balance sheet and provides valuation allowances if it is more likely than *not* that such assets will *not* be realized.

The Company follows the guidance of Topic *740* to analyze all tax positions that are less than certain. Topic *740* prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In accordance with Topic *740,* the Company recognizes in its financial statements the impact of a tax position if that position is "more likely than *not"* to be sustained on audit, based on the technical merits of the position. The Company's estimate of the potential outcome of any uncertain tax issue is subject to management's assessment of relevant risks, facts, and circumstances existing at that time. The Company classifies interest and penalties associated with the payment of income taxes, if any, in the Other Income (Expense) section of its consolidated statements of operations.

*Recently Adopted Accounting Pronouncements*

In *November 2023,* the Financial Accounting Standards Board (the "FASB") issued guidance which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after *December 15, 2023,* and for interim periods within fiscal years beginning after *December 15, 2024.* Early adoption is permitted. The guidance shall be applied retrospectively to all prior periods presented in the financial statements. The Company adopted this guidance in the *fourth* quarter of fiscal year *2024* and is reflected in Note *21.* The adoption of this guidance did *not* have a material impact on the Company's consolidated financial statements.

*Recently Issued Accounting Pronouncements*

In *November 2024,* the FASB, as further amended in *January 2025,* issued guidance requiring enhanced disclosures in financial statements by requiring detailed disclosures of specific expenses like inventory purchases, employee compensation, depreciation, and intangible assets amortization. The guidance is effective for fiscal years beginning after *December 15, 2026,* and interim periods within fiscal years beginning after *December 31, 2027.* Early adoption is permitted. The Company does *not* expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In *December 2023,* the FASB issued guidance regarding improvements in income tax disclosure which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The guidance will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt this guidance in its *fourth* quarter of fiscal year *2026.* The guidance allows for adoption using either a prospective or retrospective transition method. The adoption of this guidance is *not* expected to have any material impact on its consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *14*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***2.* Revenue Recognition**

In accordance with ASC Topic *606, Revenue from Contracts with Customers* ("ASC *606"*), the Company recognizes revenue when performances of contractual obligations are satisfied, generally when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

The Company primarily derives product revenue from the sale of its manufactured products. Revenue from these product sales, including the sale of used rental equipment, is recognized when obligations under the terms of a contract are satisfied, control is transferred and collectability of the sales price is probable. The Company records deferred revenue when customer funds are received prior to shipment or delivery or hen performance has *not* yet occurred. The Company assesses collectability during the contract assessment phase. In situations where collectability of the sales price is *not* probable, the Company recognizes revenue when it determines that collectability is probable or when non-refundable cash is received from its customers and there is *not* a significant right of return. Transfer of control generally occurs with shipment or delivery, depending on the terms of the underlying contract. The Company's products are generally sold without any customer acceptance provisions, and the Company's standard terms of sale do *not* allow customers to return products for credit.

Revenue from engineering services is recognized as services are rendered over the duration of a project, or as billed on a per hour basis. Field service revenue is recognized when services are rendered and is generally priced on a per day rate.

The Company also generates revenue from short-term rentals under operating leases of its manufactured products. Rentals of the Company's equipment generally range from daily rentals to minimum rental periods of up to *one* year. Rental revenue is recognized within the scope of ASC *842, Leases* ("ASC *842"*). The Company regularly evaluates the collectability of its lease receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer, historical trends of the customer and current economic conditions. In accordance with ASC *842,* rental revenue is recognized as earned over the rental period if collectability of the rent is reasonably assured. When collectability of amounts are *no* longer probable the Company records a direct write-off of the rent receivable to rental revenue and limits future rental revenue recognition to cash received. During the *second* quarter of fiscal year *2025,* the Company determined that the collectability of receivables from a rental customer was less than probable. As a result of this determination, the rent receivable balance due from this customer of $2.2 million was reversed against rental revenue. Any future cash received from this customer will be recognized as rental revenue.

As permissible under ASC *606,* sales taxes and transaction-based taxes are excluded from revenue. The Company does *not* disclose the value of unsatisfied performance obligations for contracts with an original expected duration of *one* year or less. Additionally, the Company expenses costs incurred to obtain contracts when incurred because the amortization period would have been *one* year or less. These costs are recorded in selling, general and administrative expenses.

The Company has elected to treat shipping and handling activities in a sales transaction after the customer obtains control of the goods as a fulfillment cost and *not* as a promised service. Accordingly, fulfillment costs related to the shipping and handling of goods are accrued at the time of shipment. Amounts billed to a customer in a sales transaction related to reimbursable shipping and handling costs are included in revenue, and the associated costs incurred by the Company for reimbursable shipping and handling expenses are reported in cost of revenue. The Company incurred shipping and handling expenses of $0.3 million for each of the fiscal years ended *September 30, 2025* and *2024*, respectively.

At *September 30, 2025* and *2024,* the Company had no deferred contract liabilities and no deferred contract costs. At *October 1, 2023,* the Company had deferred contract liabilities of $0.7 million and no deferred contract costs. For the fiscal years ended *September 30, 2025* and *2024,* revenue of zero and $0.7 million, respectively, was recognized from deferred contract liabilities. For each of the fiscal years ended *September 30, 2025* and *2024,* no cost of revenue was recognized from deferred contract costs. At *September 30, 2025, October 1, 2024* and *October 1, 2023,* the Company had accounts receivable from contracts with customers of $11.4 million, $12.6 million and $11.2 million, respectively. Accounts receivable from contracts with customers excludes accounts receivable from rental contracts.

For the fiscal years ended *September 30, 2025* and *2024*, revenue of $1.8 million and $1.3 million, respectively, was recognized from contracts with customers satisfied over-time. Revenue satisfied over-time for the fiscal year ended *September 30, 2025* was from the Company's Energy Solutions operating segment. Revenue satisfied over-time for the fiscal year ended *September 30, 2024* was from the Company's Intelligent Industrial operating segment. All other revenue from contracts with customers for the fiscal years ended *September 30, 2025* and *2024* was recognized at a point-in-time.

At *September 30, 2025,* the aggregate amount of transaction price allocation to unsatisfied performance obligations on contracts with a duration in excess of *one* year was approximately $92 million. These unsatisfied performance obligations are expected to be fulfilled over the next *18* months. The majority of the revenue will be recognized over-time over the duration of the contracts. All other revenue from contracts with customers is being recognized at a point-in time and have a duration of *one* year or less. For each of the Company's operating segments, the following table presents revenue (in thousands) only from the sale of products and the performance of services under contracts with customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *15*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

For each of the Company's operating segments, the following table presents revenue only from the sale of products and the performance of services under contracts with customers (in thousands). Therefore, the table excludes all revenue earned from rental contracts.

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Smart Water | $35816 | $32434 |
| Energy Solutions | 44600 | 58878 |
| Intelligent Industrial | 23788 | 24724 |
| **Total** | $104204 | $116036 |

---

See Note *21* for more information on the Company's operating segments.

For each of the geographic areas where the Company operates, the following table presents revenue from the sale of products and performance of services under contracts with customers (in thousands). Therefore, the table excludes all revenue earned from rental contracts.

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Asia (including Russian Federation) | $24986 | $43831 |
| Canada | 2529 | 1578 |
| Europe | 4864 | 6430 |
| Mexico | 2746 | 1959 |
| South America | 843 | 384 |
| United States | 67311 | 61009 |
| Other | 925 | 845 |
|  | $104204 | $116036 |

---

Revenue is attributable to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is *not* known, revenue is attributable to countries based on the geographic location of the initial shipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *16*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***3.* Business Acquisition**

On *August 1, 2025,* the Company acquired all the outstanding stock of Geovox. Geovox's Heartbeat Detector® is a heartbeat detection security technology developed by the United States Department of Energy's Oak Ridge National Laboratory. It is used in more than a dozen countries to address human trafficking and prison security. The Heartbeat Detector® uses proprietary sensors to rapidly identify people hidden in vehicles, providing a modern, user-friendly interface in as little as *10* seconds. The Heartbeat Detector® relies on geophones the Company manufactures and aligns with the Company's current perimeter security and surveillance offerings in its Intelligent Industrial segment.

The Geovox acquisition was accounted for under the acquisition method of accounting. The total value of the consideration paid for acquisitions was allocated to the underlying net assets acquired, based on their respective estimated fair values. The Company utilized the excess earnings method to determine the fair value of assets and liabilities acquired, including discounted cash flows, external market values, valuations on recent transactions or a combination thereof, and believes that it used the most appropriate measure to value each asset or liability. The Company will recognize measurement-period adjustments, if any, in the reporting period in which the adjustment amount is determined.

The acquisition purchase price for Geovox consisted of (i) cash of $1.7 million, which included $1.5 million paid at closing and $0.2 million to be paid *June 1, 2027,* and (ii) contingent earn-out payments of up to $3.3 million over a four-year period. The contingent payments, if any, will be derived from certain eligible revenue that *may* be generated during the *four*-year period. In connection with the acquisition the Company recorded goodwill of $0.5 million, other intangible assets of $3.7 million, and an initial contingent earn-out liability of $2.5 million. Also see Notes *6* and *12.*

Legal and professional costs of $35,000 related to the acquisition are included in selling, general and administrative expenses for the fiscal year ended *September 30, 2025.* 

***4.* Sale of Subsidiary**

On *August 30, 2024,* the Company sold its oil and gas product manufacturing operations based in the Russian Federation. The sale was consummated pursuant to a stock purchase agreement between the Company and a group of former employees based in the Russian Federation ("the Buyer"). Consideration to the Company consisted of a $1.0 million cash payment due from the buyer within *90* days of the sale and a $3.5 million promissory note. The note is for a 10-year term and bears interest at 5% per annum. Principal and interest installments of $37,000 are due monthly. The Company recorded a loss on sale in connection with the transaction of $14.5 million, of which $13.1 million was related to the impact of cumulative foreign currency translation losses previously included in accumulated comprehensive loss. Based on a fair value analysis performed on the promissory note as of the sale date, the Company recorded a $0.9 million discount to fair value on the note receivable. The note receivable is included as components of current and non-current trade accounts and financing receivables, net, on the consolidated balance sheet as of *September 30, 2024.* The sale did *not* have a material effect on the Company's consolidated net assets and is *not* expected to have a material effect on the Company's future revenue, profits or losses. Also see Note *6.*

The Company has determined that the Buyer's legal entity is a variable interest entity ("VIE") due to the nature of the financing for the transaction. A VIE is an entity in which equity investors lack the characteristics of a controlling financial interest or do *not* have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. VIEs are consolidated by the primary beneficiary, which is the party who has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and who has an obligation to absorb losses of the entity or a right to receive benefits from the entity that could potentially be significant to the entity. The Company determines whether it is the primary beneficiary of a VIE upon initial involvement with a VIE and reassesses whether it is the primary beneficiary of a VIE on an ongoing basis. The determination of whether an entity is a VIE and whether it is primary beneficiary of a VIE is based upon the facts and circumstances for the VIE and requires significant judgments such as whether the entity's interest in a VIE is a variable interest, whether it controls the activities that most significantly impact the economic performance of the VIE, and whether it has the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the VIE. A VIE is consolidated if management determines it is the primary beneficiary of the VIE.

While the debt represents a direct obligation to absorb significant losses of the VIE, the debt does *not* establish the right and power to direct activities that most significantly impact the economic performance of the entity. The Company retained *no* equity or voting interest, has *no* employees that are directors or advisors of the new ownership group, and has *no* direct influence on the day-to-day decisions in operations or affects on the VIE's ability to generate profits or losses. As such, the Company has determined it is *not* the primary beneficiary of the VIE. The Company's maximum exposure to loss at *September 30, 2025* due to its involvement with the VIE is the carrying value of our note receivable from the sale of our former subsidiary, which was $3.2 million.

***5.* Short-term Investments**

The Company classifies its short-term investments as available-for-sale debt securities. These securities are carried at fair market value with net unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders' equity. The Company had no short-term investments as of *September 30, 2025.* The Company's short-term investments as of *September 30, 2024* were composed of the following (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30, 2024*** | ***AS OF SEPTEMBER 30, 2024*** | ***AS OF SEPTEMBER 30, 2024*** | ***AS OF SEPTEMBER 30, 2024*** |
|  | ***Amortized Cost*** | ***Unrealized Gains*** | ***Unrealized Losses*** | ***Estimated Fair Value*** |
| Short-term investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Corporate bonds | $21814 | $35 | $— | $21849 |
| U.S. treasury securities and securities of U.S. government-sponsored agency | 8356 | 22 |  | 8378 |
| &nbsp;&nbsp;&nbsp; Total | $30170 | $57 | $— | $30227 |

---

At *September 30, 2024,* accrued interest receivable related to these short-term investments was $0.3 million, which is included as a component of prepaid expenses and other current assets.

The Company has no debt securities in a material unrealized loss position at *September 30, 2024* and does *not* believe the unrealized losses associated with these debt securities represent credit losses based on the evaluation of evidence, which includes an assessment of whether it is more likely than *not* it will be required to sell or intend to sell the investment before recovery of the investments amortized cost basis. A gain of $9,000 was realized from the sale of short-term investments for the fiscal year ended *September 30, 2025.* No gains or losses were realized from the sale of short-term investments for the fiscal year ended *September 30, 2024.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *17*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***6.* Fair Value of Financial Instruments**

The Company's financial instruments generally include cash and cash equivalents, short-term investments, trade accounts and financing receivables and accounts payable. Due to the short-term maturities of cash and cash equivalents, trade accounts receivable and accounts payable, the carrying amounts approximate fair value on the respective balance sheet dates.

The Company measures its contingent consideration and short-term investments at fair value on a recurring basis.

The following tables present the fair value of the Company's continent consideration, short-term investments and note receivable on sale of subsidiary by valuation hierarchy and input (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **AS OF SEPTEMBER 30, 2025** | **AS OF SEPTEMBER 30, 2025** | **AS OF SEPTEMBER 30, 2025** | **AS OF SEPTEMBER 30, 2025** |
|  | **(Level 1)** | **(Level 2)** | **(Level 3)** | **Totals** |
| **Recurring:** |  |  |  |  |
| Contingent consideration | $— |  | $(2540) | $(2540) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30, 2024*** | ***AS OF SEPTEMBER 30, 2024*** | ***AS OF SEPTEMBER 30, 2024*** | ***AS OF SEPTEMBER 30, 2024*** |
|  | ***(Level 1)*** | ***(Level 2)*** | ***(Level 3)*** | ***Totals*** |
| Recurring: |  |  |  |  |
| Short-term investments |  | . |  |  |
| &nbsp;&nbsp;&nbsp; Corporate bonds | $— | $21849 | $— | $21849 |
| U.S. treasury securities and securities of U.S. government-sponsored agency | *—* | 8378 | *—* | 8378 |
| &nbsp;&nbsp;&nbsp; Total recurring | $— | $30227 | $— | $30227 |
| Nonrecurring: |  |  |  |  |
| Note receivable on sale of subsidiary | $— | $— | $2600 | $2600 |

---

*Assets and Liabilities Measured on a Nonrecurring Basis*

The Company performed a fair value analysis of the $3.5 million promissory note obtained in connection with its subsidiary sale as of the *August 2024* transaction date. The measurements utilized to determine the implied fair value of the note receivable obtained represented significant unobservable inputs (Level *3*). The derivation of discount rate utilized in the analysis was based on comparable market yields. Based on the analysis, the Company recorded a $0.9 million discount to fair value on this note receivable. Also see Note *4* to these consolidated financial statements.

At *September 30, 2024,* the Company performed a recoverability assessment on its long-lived assets of its Intelligent Industrial asset group (formerly Emerging Markets) in which its carrying value was compared to the estimated undiscounted cash flows over the remaining useful life of the asset group's primary asset, which is its developed technology. Accordingly, a fair value analysis was performed. Based on the assessment, the Company determined the fair value of the asset was less than its carrying value and recorded an impairment charge of $2.8 million on this asset group, which impaired its intangible assets in their entirety. The Company determined the fair value of this asset group to be approximately zero. The measurements utilized to determine the implied fair value represented significant unobservable inputs (Level *3*). See Note *12* for more information.

In connection with the Company's acquisition of Geovox in *August 2025,* it recorded an initial contingent earn-out liability of $2.5 million. The Company engaged the services of a valuation firm to measure the fair value of the liability. The primary inputs included revenue forcast, risk free rate, revenue volatility, revenue discount rate and payment discount rate (Level *3*). Contingent payments, if any, will be based on eligible revenue generated during a *four*-year earn-out period. The maximum amount of contingent payments is $3.3 million. The following table summarizes the changes in the fair value of the contingent consideration for the fiscal year *September 30, 2025:*

---

| | |
|:---|:---|
| Balance at October 1, 2024 | $— |
| Contingent consideration pursuant to acquisition | 2540 |
| Fair value adjustments |  |
| Payment of contingent consideration |  |
| Balance at September 30, 2025 | $2540 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *18*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***7.* Accumulated Other Comprehensive Loss**

Accumulated other comprehensive loss consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | ***Unrealized Gains (Losses) on Available-for-Sale Securities*** | ***Foreign Currency Translation Adjustments*** | ***Total*** |
| Balance at October 1, 2023 | $(11) | $(17813) | $(17824) |
| Other comprehensive income | 67 | 13500 | 13567 |
| Balance at September 30, 2024 | $56 | (4313) | (4257) |
| Other comprehensive loss | (57) | (224) | (281) |
| Balance at September 30, 2025 | $(1) | $(4537) | $(4538) |

---

***8.* Trade Accounts and Financing Receivables**

Trade accounts receivable, net (excluding financing receivables) are reflected in the following table (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Trade accounts receivable | $12725 | $16151 |
| Allowance for credit losses | (63) | (4) |
| Total | 12662 | 16147 |
| Less current portion | (12662) | (14637) |
| Non-current trade accounts receivable | $— | $1510 |

---

Allowances for credit losses related to trade accounts receivable are reflected in the following table (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Allowance for credit losses: |  |  |
| **Beginning of period** | 4 | 125 |
| Provision for credit losses | 69 | 65 |
| Recoveries | (3) | (175) |
| Charge offs, net | (6) | (11) |
| Currency translation | (1) |  |
| **End of period** | $63 | $4 |

---

Trade accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will *not* be recoverable.

Financing receivables are reflected in the following table (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Promissory notes | $19149 | $12996 |
| Sales-type lease | 5302 |  |
| Total financing receivables | 24451 | 12996 |
| Discount to fair value and unearned income | (914) | (900) |
| Total financing receivables, net | 23537 | 12096 |
| Less current portion | (15347) | (7231) |
| Non-current financing receivables | $8190 | $4865 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *19*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

In *September 2025,* the Company entered into a $3.9 million promissory note with a customer related to a product sale. The note bears interest at 8.75% per annum and matures in *September 2028.* Principal and interest installments of $0.1 million are due monthly beginning in *October 2025.* The note is collateralized by the product sold.

In *August 2025,* the Company entered into a $3.6 million promissory note with a customer related to a product sale. The note bears interest at 8.75% per annum and matures in *August 2028.* Principal and interest installments of $0.1 million are due monthly beginning in *September 2025.* The note is collateralized by the product sold.

In *November 2024,* the Company entered into a sales-type lease with a customer on wireless seismic equipment from its rental fleet. The lease matures in *October 2025.* Interest income of $0.6 million was recognized on the lease for the fiscal year ended *September 30, 2025.* Ownership of the equipment will transfer to the customer at the end of the lease term.

In *August 2024,* the Company entered into a $9.4 million promissory note with a customer related to a product sale. The note bears interest at 9.5% per annum and matures in *December 2025.* Principal and interest installments of $0.9 million are due monthly beginning in *January 2025.* The note is collateralized by the product sold.

In *August 2024,* the Company entered into a $3.5 million promissory note with the buyer of its Russian subsidiary. The note is bears interest at 5% per annum and is for a 10-year term. Principal and interest installments of $37,000 are due monthly beginning in *November 2024.* Based on a fair value analysis performed at the date of sale, a discount to fair value of $0.9 million was placed on the note. Interest income on the amortization of the discount will be recognized under the effective interest method.

Credit quality indicators used for the non-current portion of trade accounts and notes receivable consisted of historical collection experience, internal credit risk grades and collateral. The Company determines the allowance for credit losses through a review of several factors, including historical collection experience, customer credit worthiness, current aging of customer accounts and current financial conditions of its customers.

***9.* Inventories**

Inventories consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Finished goods | $24180 | $18099 |
| Work in process | 6408 | 3626 |
| Raw materials | 27245 | 30941 |
| Obsolescence reserve (net realizable value adjustment) | (9819) | (8413) |
|  | 48014 | 44253 |
| Less current portion | 30901 | 26222 |
| Non-current portion | $17113 | $18031 |

---

Inventory obsolescence expense totaled $3.1 million and $0.6 million during fiscal years *2025* and *2024*, respectively. Raw materials include semi-finished goods and component parts that totaled approximately $9.1 million and $8.6 million at *September 30, 2025* and *2024*, respectively.

***10.* Leases**

<u>As Lessee</u>

The Company has elected *not* to record operating right-of-use assets or operating lease liabilities on its consolidated balance sheet for leases having a minimum term of *12* months or less. Such leases are expensed on a straight-line basis over the lease term. Variable lease payments are excluded from the measurement of operating right-of-use assets and operating liabilities and recognized in the period in which the obligation for those payments is incurred. As of *September 30, 2025*, the Company has two operating right-of use assets related to leased facilities in Austin, Texas and Melbourne, Florida.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *20*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

Maturities of the operating lease liabilities as of *September 30, 2025* were as follows (in thousands):

---

| | |
|:---|:---|
| For fiscal years ending September 30, |  |
| 2026 | $465 |
| 2027 | 483 |
| 2028 | 90 |
| Future minimum lease payments | $1038 |
| Less interest | (64) |
| Present value of minimum lease payments | $974 |
| Less current portion | (420) |
| Long-term portion | $554 |

---

Lease costs recognized in the consolidated statements of operations for the fiscal years ended *September 30, 2025* and *2024* is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Right-of-use operating lease costs | $198 | $271 |
| Short-term lease costs | 121 | 123 |
| Total | $319 | $394 |

---

Right-of-use operating lease costs and short-term lease costs are included as a component of total operating expenses.

Other information related to operating leases is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Cash paid for amounts included in the measurement of lease liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Operating cash flows from operating leases | $126 | $278 |
| Weighted average remaining lease term | 2.9 years | 3.4 years |
| Weighted average discount rate | 5.93% | 3.25% |

---

The discount rate used on the operating right-of-use assets represented the Company's incremental borrowing rate at lease inception.

<u>As Lessor</u>

*Equipment*

The Company leases equipment to customers which generally range from daily rentals to minimum rental periods of up to one year. All of the Company's current leasing arrangements, with the Company acting as lessor, are classified as operating leases. The majority of the Company's rental revenue is generated from its marine-based wireless seismic data acquisition system.

The Company regularly evaluates the collectability of its lease receivables on a lease-by-lease basis. The evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer, historical trends of the customer and current economic conditions. The Company suspends revenue recognition when the collectability of amounts due are *no* longer probable and concurrently records a direct write-off of the lease receivable to rental revenue to limit rental revenue recognized to the cash collections received. As of *September 30, 2025* and *2024,* the Company's trade accounts receivables included lease receivables of $1.0 million and $1.0 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *21*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

Rental revenue related to leased equipment for fiscal years *2025* and *2024* were $6.3 million and $19.3 million, respectively.

Future minimum lease obligations due from the Company's leasing customers as of *September 30, 2025* were $0.4 million, all of which is due within the next *12* months.

In *November 2024,* the Company entered into a sales-type lease with a customer on wireless seismic equipment from its rental fleet. The lease matures in *October 2025.* Interest income of $0.6 million was recognized on the lease for the fiscal year ended *September 30, 2025.* Ownership of the equipment will transfer to the customer at the end of the lease term. Also see Note *8.*

Rental equipment consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Rental equipment, primarily wireless recording equipment | $45289 | $63111 |
| Accumulated depreciation and impairment | (37169) | (48925) |
|  | $8120 | $14186 |

---

Rental equipment depreciation expense was $6.2 million and $10.9 million in fiscal years *2025* and *2024*, respectively.

*Property*

During fiscal year *2022,* the Company leased a portion of its property located in Calgary, Alberta, Canada and fully leased its warehouse in Bogotá, Colombia. The lease in Canada commenced in *November 2021* and is for a five-year term. The lease on the warehouse in Bogotá commenced in *December 2021* and is currently on a month-to-month basis.

Rental revenue related to these two properties for each of the fiscal years ended *September 30, 2025* and *2024* was $0.3 million.

Future minimum lease payments due to the Company as of *September 30, 2025* were as follows (in thousands):

---

| | |
|:---|:---|
| For fiscal years ending September 30, |  |
| 2026 | $132.0 |
| 2027 | 11.0 |
|  | $143.0 |

---

***11.* Property, Plant and Equipment**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

In *June 2025,* the Company sold its property located at *4318* Northfield Lane in Houston, Texas. The 17.3-acre property served as additional parking for the main campus and contained legacy structures used to support the Company's manufacturing and warehousing operations. The Company recognized a gain on disposal of property of $4.6 million during the *third* quarter of fiscal year *2025.* The gain is included as a component of loss from operations on the Company's consolidated statements of operations.

Property, plant and equipment consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Land and land improvements | $2960 | $4869 |
| Building and building improvements | 24089 | 21312 |
| Machinery and equipment | 48647 | 49860 |
| Furniture and fixtures | 1032 | 1470 |
| Tools and molds | 3928 | 3628 |
| Construction in progress | 2856 | 392 |
| Transportation equipment | 41 | 75 |
|  | 83553 | 81606 |
| Accumulated depreciation and impairment | (60309) | (60523) |
|  | $23244 | $21083 |

---

Property, plant and equipment depreciation expense was $3.8 million and $3.5 million for the fiscal years ended *September 30, 2025* and *2024*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *22*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***12.* Goodwill and Other Intangible Assets**

In *August 2025,* in connection with the Company's acquisition of Geovox, it recorded goodwill of $0.5 million (deductible for tax purposes) and other intangible assets of $3.7 million. The operations of Geovox are included as a component of the Company's Intelligent Industrial reporting unit.

At *September 30, 2025,* the Company had goodwill of $0.5 million and other intangible assets, net of $3.7 million attributable to its Intelligent Industrial reporting unit, goodwill of $0.7 million and other intangible assets, net of $0.4 million attributable to its Smart Water reporting unit and other intangible assets, net of $1.1 million attributable to its Energy Solutions reporting unit. Goodwill represents the excess cost of a business acquired over the fair market value of identifiable net assets at the date of acquisition.

At *September 30, 2024,* in light of the Company's historical losses and continued delays in obtaining additional contracts from the U.S. Customs and Border Protection and other customers on its Industrial Intelligent segment, the Company performed a recoverability assessment on the long-lived assets of its Intelligent Industrial asset group (formerly a part of the Company's Emerging Markets asset group) in which its carrying value was compared to estimated undiscounted cash flows over the remaining useful life of the asset group's primary asset, which is its developed technology. Accordingly, a fair value analysis was performed. Based on the assessment, the Company determined the fair value of the asset was less than its carrying value. The Company used an excess earnings approach to value the asset. Key assumptions used in the analysis include revenue, gross margin and cash flow projections. As a result of the assessment, the Company recorded an impairment charge of $2.8 million on this asset group, which impaired its intangible assets in their entirety.

The Company's consolidated goodwill and other intangible assets consisted of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
|  | ***Weighted-Average Remaining Useful Lives (in years)*** | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  |  | ***2025*** | ***2024*** |
| Goodwill: |  |  |  |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial |  | $4858 | $4336 |
| Smart Water |  | 736 | 736 |
| Total goodwill |  | 5594 | 5072 |
| Accumulated impairment losses |  | (4336) | (4336) |
|  |  | $1258 | $736 |
| Other intangible assets: |  |  |  |
| Developed technology | 6.1 | $5575 | $2275 |
| Customer relationships | 0.1 | 3955 | 3900 |
| Trade names | 0.7 | 2332 | 2022 |
| Non-compete agreements | 0.9 | 245 | 186 |
| Total other intangible assets | 3.8 | 12107 | 8383 |
| Accumulated amortization |  | (6952) | (6734) |
|  |  | $5155 | $1649 |

---

Other intangible assets amortization expense for fiscal years *2025* and *2024* was $0.2 million and $0.4 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *23*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

As of *September 30, 2025*, fiscal year future estimated amortization expense of other intangible assets is as follows (in thousands):

---

| | |
|:---|:---|
| 2026 | 561 |
| 2027 | 547 |
| 2028 | 547 |
| 2029 | 542 |
| 2030 | 508 |
| Thereafter | 2450 |
|  | $5155 |

---

***13.* Long-Term Debt**

The Company had no long-term debt outstanding at *September 30, 2025* or *2024*.

On *August 29, 2025,* the Company amended its credit agreement ("the Agreement") with Woodforest National Bank. The Agreement extended the Company's revolving loan agreement, dated as of *July 26, 2023,* with Woodforest. The Agreement is for a *three*-year term and provides a revolving credit facility with a maximum availability of $25 million. Interest shall accrue on outstanding borrowings at *30* Day Term SOFR plus a margin equal to 2.75% per annum. The Company is required to make monthly interest payments on borrowed funds. The Agreement is secured by substantially all of the Company's assets, except for certain excluded property. The Agreement requires the Company to maintain (i) a minimum consolidated tangible net worth of $85 million, (ii) minimum liquidity of $10 million, and (iii) a minimum asset coverage ratio of 2.00 to *1.00.* The Agreement also requires the Company to maintain a springing minimum interest coverage ratio of at least 1.50 to *1.00,* tested quarterly whenever (a) there is an outstanding balance on the revolving credit facility or (b) has letter of credit exposure greater than $1 million.

At *September 30, 2025*, the Company was in compliance with all covenants under the Agreement. At *September 30, 2025*, the Company could borrow approximately $8 million under the Agreement without violating any debt covenants.

Debt issuance costs of $0.4 million were incurred in connection with the Agreement. These costs were capitalized in other non-current assets on the consolidated balance sheet and are being amortized to interest expense over the term of the Agreement.

***14.* Other Current Liabilities**

Other current liabilities consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Customer deposits and deferred revenue | $5733 | $1427 |
| Employee bonuses | 497 | 1050 |
| Compensated absences | 1935 | 1821 |
| Payroll | 553 | 426 |
| Property and sales taxes | 1013 | 1062 |
| Legal and professional fees | 764 | 355 |
| Medical claims | 695 | 538 |
| Agent commissions | 185 | 329 |
| Product warranty | 1463 | 1251 |
| Income taxes | 26 | 17 |
| Other | 777 | 745 |
|  | $13641 | $9021 |

---

The Company is self-insured for certain losses related to employee medical claims. The Company has purchased stop-loss coverage for individual claims in excess of $0.2 million per claimant per year in order to limit its exposure to any significant levels of employee medical claims. Self-insured losses are accrued based on the Company's historical experience and on estimates of aggregate liability for uninsured claims incurred using certain actuarial assumptions followed in the insurance industry.

***15.* Employee Benefits**

The Company's United States employees are participants in the Geospace Technologies Corporation's Employee's *401*(k) Retirement Plan (the "Plan"), which covers substantially all eligible employees in the United States. The Plan is a qualified salary reduction plan in which all eligible participants *may* elect to have a percentage of their compensation contributed to the Plan, subject to certain guidelines issued by the Internal Revenue Service. The Company's share of discretionary matching contributions was $1.2 million and $1.1 million in fiscal years *2025* and *2024*, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *24*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

The Company's stock incentive plans in which key employees *may* participate are discussed in Note *16* to these consolidated financial statements.

***16.* Stockholders**' **Equity**

In *February 2014,* the board of directors and stockholders approved the *2014* Long Term Incentive Plan, as amended (the *"2014* Plan"). Under the *2014* Plan, an aggregate of 3,000,000 shares of common stock *may* be issued. The Company is authorized to issue nonqualified and incentive stock options to purchase common stock, restricted stock awards ("RSAs") and restricted stock units ("RSUs") to key employees, directors and consultants under the *2014* Plan. Options have a term *not* to exceed ten years, with the exception of incentive stock options granted to employees owning ten percent or more of the outstanding shares of common stock, which have a term *not* to exceed five years. The exercise price of any option *may not* be less than the fair market value of the common stock on the date of grant. In the case of incentive stock options granted to an employee owning ten percent or more of the outstanding shares of common stock, the exercise price of such option *may not* be less than 110% of the fair market value of the common stock on the date of grant. An RSU represents a contingent right to receive *one* share of the common stock upon vesting. Under the *2014* Plan, the Company *may* issue RSAs and RSUs to employees for *no* payment by the employee or for a payment below the fair market value on the date of grant. The RSAs and RSUs are subject to certain restrictions described in the *2014* Plan. No RSA's have been issued since *2019.*

At *September 30, 2025*, an aggregate of 682,071 shares of common stock were available for issuance under the *2014* Plan.

The following table summarizes the combined activity under the equity incentive plans for the indicated periods:

---

| | | |
|:---|:---|:---|
|  | **Number of RSUs** | **Weighted Average Grant-date Fair Value per Unit** |
| Outstanding at October 1, 2023 | 377549 | $6.46 |
| Granted | 233200 | 12.26 |
| Forfeited | (26253) | 6.47 |
| Vested | (175601) | 7.08 |
| Outstanding at September 30, 2024 | 408895 | $9.50 |
| Granted | 194700 | 12.09 |
| Forfeited | (98022) | 11.72 |
| Vested | (172880) | 8.84 |
| Outstanding at September 30, 2025 | 332693 | $10.70 |

---

During fiscal years *2025* and *2024*, the Company issued 194,700 and 233,200 RSUs, respectively, to certain of its employees, executive officers and directors under the *2014* Plan. The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU issued for fiscal years *2025* and *2024* was $12.09 and $12.26 per unit, respectively. The total grant date fair value of all RSUs issued for fiscal years *2025* and *2024* was $2.4 million and $2.9 million, respectively, which will be charged to expense over the next 1-4 years as the restrictions lapse. Compensation expense for RSUs was determined based on the closing market price of the Company's stock on the date of grant applied to the total number of units that are anticipated to fully vest. All RSUs outstanding at *September 30, 2025* and *2024* were issued from the *2014* Plan.

Stock-based compensation expense recognized for the fiscal years ended *September 30, 2025* and *2024* was $1.5 million and $1.3 million, respectively. The Company accounts for forfeitures as they occur and records compensation costs under the assumption that the holder will complete the requisite service period. As of *September 30, 2025*, the Company had unrecognized compensation expense of $2.0 million relating to RSUs which is expected to be recognized over the next 1-4 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *25*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***17.* Income Taxes:** 

Components of loss before income taxes were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **YEAR ENDED SEPTEMBER 30,** | **YEAR ENDED SEPTEMBER 30,** |
|  | **2025** | **2024** |
| United States | $(8941) | $(6930) |
| Foreign | (395) | 466 |
|  | $(9336) | $(6464) |

---

The provision for income taxes consisted of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **YEAR ENDED SEPTEMBER 30,** | **YEAR ENDED SEPTEMBER 30,** |
|  | **2025** | **2024** |
| Current |  |  |
| Federal | $— | $— |
| Foreign | 361 | 55 |
| State | 58 | 41 |
|  | 419 | 96 |
| Deferred: |  |  |
| Federal |  |  |
| Foreign | (31) | 18 |
|  | (31) | 18 |
|  | $388 | $114 |

---

The difference between the effective tax rate reflected in the provision for income taxes and the U.S. federal statutory rate were as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30, 2025*** | ***YEAR ENDED SEPTEMBER 30, 2025*** | ***YEAR ENDED SEPTEMBER 30, 2024*** | ***YEAR ENDED SEPTEMBER 30, 2024*** |
|  | ***Amount*** | ***Percent*** | ***Amount*** | ***Percent*** |
| Benefit for U.S. federal income tax at statutory rate | $(1961) | 21.0% | $(1357) | 21.0% |
| Research and experimentation tax credit | (585) | 6.3% | (572) | 8.8% |
| State income taxes, net of federal income tax benefit | 46 | (0.5)% | 32 | (0.5)% |
| Change in valuation allowance | 2930 | (31.4)% | 1934 | (29.9)% |
| Foreign earnings tax | 169 | (1.8)% | 125 | (1.9)% |
| Stock compensation | (111) | 1.2% | (210) | 3.2% |
| Impact due to foreign currency translation | 171 | (1.8)% | (44) | 0.7% |
| Other items | (271) | 2.9% | 206 | (3.2)% |
| Total tax expense and effective tax rate | $388 | (4.1)% | $114 | (1.8)% |

---

The income tax expense for fiscal years *2025* and *2024* primarily reflects tax accrual for U.S. state, U.K. income tax and foreign withholding tax on U.S. companies. Texas contributed to the majority of the state tax expense for fiscal years *2025* and *2024.* The Company is currently unable to record any tax benefits for its tax loss in Canada due to the uncertainty surrounding its ability to utilize such losses in the future to offset taxable income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *26*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's net deferred income tax assets (liabilities) were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Deferred income tax assets: |  |  |
| Inventories | $4684 | $5447 |
| Loss and tax credit carryforwards | 34129 | 31850 |
| Accrued compensation | 652 | 733 |
| R&D expenditure capitalization | 4366 | 3064 |
| Intangible assets | 245 | 290 |
| Property and equipment | 321 | 331 |
| Other reserves | 590 | 456 |
| Subtotal deferred income tax assets | 44987 | 42171 |
| Valuation allowance | (43781) | (40851) |
| Net deferred income tax assets | 1206 | 1320 |
| Deferred income tax liabilities: |  |  |
| Property and equipment | (1210) | (1249) |
| Other |  | (105) |
| Total deferred income tax liabilities | (1210) | (1354) |
| Net deferred income tax liabilities | $(4) | $(34) |

---

The financial reporting basis of investments in foreign subsidiaries exceed their tax basis. A deferred tax liability is *not* recorded for this temporary difference because the investment is deemed to be permanent. A reversal of the Company's plans to permanently invest in these foreign operations would cause the excess to become taxable. At *September 30, 2025*, the Company had $0.8 million of cash and cash equivalents held by its foreign subsidiaries. At *September 30, 2025* and *2024*, the temporary difference related to undistributed earnings for which *no* deferred taxes have been provided was approximately $0.8 million and $1.2 million, respectively.

The Company is subject to taxation in the United States as well as various states and foreign jurisdictions. Tax years that remain subject to examination by significant tax jurisdictions are the United States for tax years ending after 2016, the United Kingdom for tax years ending after *2023,* and Canada for tax years ending after *2021.*

At *September 30, 2025*, the Company had net operating loss ("NOL") carry-forwards of approximately $92.4 million in the United States and $19.2 million in Canada which are available to offset future taxable income in those jurisdictions. The NOL carry-forward for Canada will begin to expire in *2033.* The NOL carry-forward for the United States which originated prior to the *2017* Tax Act of $32.4 million begins to expire in *2029* and those originating after the *2017* Tax Act of $60.0 million do *not* expire.

Management of the Company has concluded that it was *not* more-likely-than-*not* that its U.S. and Canadian net deferred tax assets will be realized in accordance with U.S. GAAP. On *September 30, 2025* and *September 30, 2024*, the Company had a valuation allowance against its U.S. net deferred tax assets of $39.0 million and $36.1 million, respectively. At *September 30, 2025* and *September 30, 2024*, the Company had a valuation allowance against its Canadian net deferred tax assets of $4.7 million and $4.8 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *27*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***18.* Loss Per Common Share**

Basic loss per share is computed by dividing net loss available to common stockholders by the weighted average number of common shares used in basic loss per share during the period. Diluted loss per share is determined on the assumption that outstanding RSUs have been exchanged for common stock and outstanding dilutive stock options have been exercised and the aggregate proceeds as defined were used to reacquire common stock using the average price of such common stock for the period.

The following table summarizes the calculation of net loss and weighted average common shares and common equivalent shares outstanding for purposes of the computation of loss per share (in thousands, except share and per share amounts):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Net loss | $(9724) | $(6578) |
| Less: loss allocable to unvested restricted stock |  |  |
| Loss attributable to common shareholders for diluted loss per share | $(9724) | $(6578) |
| Weighted average number of common share equivalents: |  |  |
| &nbsp;&nbsp;&nbsp; Common shares used in basic loss per share | 12793075 | 13151600 |
| Common share equivalents outstanding related to RSUs |  |  |
| Total weighted average common shares and common share equivalents used in diluted loss per share | 12793075 | 13151600 |
| Loss per share: |  |  |
| &nbsp;&nbsp;&nbsp; Basic | $(0.76) | $(0.50) |
| &nbsp;&nbsp;&nbsp; Diluted | $(0.76) | $(0.50) |

---

For the calculation of diluted loss per share for fiscal years *2025* and *2024*, RSUs of 332,693 and 408,895, respectively, were excluded in the calculation of weighted average shares outstanding as a result of their impact being antidilutive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *28*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***19.* Commitments and Contingencies**

*Contingent Consideration*

In *August 2025,* the Company acquired Geovox. In connection with the acquisition, the Company recorded an initial contingent earn-out liability of $2.5 million. Contingent payments, if any, will be based on eligible revenue generated during a *four*-year earn-out period. The maximum amount of contingent payments is $3.3 million.

In connection with the acquisition of Aquana in *2021,* the Company is subject to additional contingent cash payments to the former members of Aquana over a seven-year earn-out period. The contingent payments, if any, will be derived from certain eligible revenue generated during the earn-out period from products and services sold by Aquana. There is *no* maximum limit to the contingent cash payments that could be made. The merger agreement with Aquana requires the continued employment of a certain key employee and former member of Aquana for the *first* five years of the *six* year earn-out period in order for any of Aquana's former members to be eligible to any earn-out payments. Due to the continued employment requirement, *no* liability has been recorded for the estimated fair value of contingent earn-out payments for this transaction. Earn-outs achieved, are recorded as compensation expense when incurred. Eligible revenue earned for the fiscal years ended *September 30, 2025* and *2024* was $0.1 million and $17,000, respectively.

*Legal Proceedings*

The Company is involved in various pending legal actions in the ordinary course of its business. Management is unable to predict the ultimate outcome of these actions, because of the inherent uncertainty of such actions. However, management believes that the most probable, ultimate resolution of current pending matters will *not* have a material adverse effect on the Company's consolidated financial position, results of operations or cash flows.

***20.* Supplemental Cash Flow Information**

Supplemental cash flow information is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Cash paid for income taxes | $409 | $164 |
| Non-cash investing and financing activities: |  |  |
| Inventory transferred to rental equipment | 2558 | 5954 |
| Note and account receivable related to sale of subsidiary |  | 3600 |
| Financing receivables and accrued interest related to sale of rental equipment | 6498 | 9496 |
| Account receivable related to sale of rental equipment |  | 1510 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *29*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

***21***. **Segment and Geographic Information**

Effective *October 1, 2024,* the Company changed the composition of its three operating business segments and changed its methodology for allocating manufacturing costs including overhead and other costs of revenue to the segments.

The Company's business segments are now comprised of: Smart Water, Energy Solutions and Intelligent Industrial. The Smart Water segment emphasizes the Company's targeted approach in the water management industry. This business segment contains the Hydroconn® smart water connectivity offerings and the Company's Aquana products. The Energy Solutions segment encompasses the Company's traditional business in oil and gas land and marine exploration products, reservoir monitoring solutions, and will additionally incorporate emerging energy solutions and microseismic monitoring. This segment will include energy-related business from Quantum's SADAR® products and associated analytics. The Intelligent Industrial segment includes seismic sensor products used for vibration monitoring geotechnical applications such as mine safety applications and earthquake detection, seismic products targeted at the border and perimeter security markets, imaging products, as well as providing contract manufacturing services. The change in methodology for allocating manufacturing costs affected each business segment's operating income (loss) but had *no* effect on consolidated operating income (loss).

The Company defines its segments as those operations our chief operating decision maker ("CODM") regularly reviews to analyze performance and allocate resources. The Company's CODM is the Chief Executive Officer. The CODM regularly reviews revenue, gross profit, operating expenses and operating income (loss) by segment as the primary measures of segment performance. The CODM reviews revenue as a primary indicator of operational performance, assessing how much revenue is brought in from core business activities, which reflects demand and execution of each segment's strategy. Gross profit is reviewed by the CODM as a diagnostic metric, particularly useful in evaluating margin trends. Operating income is the key profitability metric used to assess performance across segments and make decisions related to resource allocation, including capital expenditures, headcount, and other investment initiatives. Each of these metrics is considered in budgeting, forecasting, and operational planning decisions.

For financial reporting purposes, we are organized into these reportable segments and "Corporate", which includes the remainder of our businesses. The following table summarizes the Company's segment information (in thousands). Segment information for the fiscal year ended *September 30, 2024* has been recast for comparability.

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water | $35816 | $32434 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 50706 | 77977 |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial | 23960 | 24891 |
| &nbsp;&nbsp;&nbsp; Corporate | 321 | 296 |
|  | 110803 | 135598 |
| Cost of revenue: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water | 21106 | 16653 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 36580 | 46922 |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial | 20082 | 19335 |
| &nbsp;&nbsp;&nbsp; Corporate | 138 | 115 |
|  | 77906 | 83025 |
| Gross profit: |  |  |
| Smart Water | 14710 | 15781 |
| Energy Solutions | 14126 | 31055 |
| Intelligent Industrial | 3878 | 5556 |
| Corporate | 183 | 181 |
|  | 32897 | 52573 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water | 9047 | 6566 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 13738 | 12485 |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial | 8207 | 12247 |
| &nbsp;&nbsp;&nbsp; Corporate | 17805 | 14158 |
|  | 48797 | 45456 |
| Gain on disposal of property: |  |  |
| &nbsp;&nbsp;&nbsp; Corporate | 4616 |  |
| Income (loss) from operations: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water | 5663 | 9215 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 388 | 18570 |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial | (4329) | (6691) |
| &nbsp;&nbsp;&nbsp; Corporate | (13006) | (13977) |
|  | (11284) | 7117 |
| Other segment disclosures: |  |  |
| Interest income: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water |  | 315 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 1694 |  |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial |  |  |
| &nbsp;&nbsp;&nbsp; Corporate | 843 | 1243 |
|  | 2537 | 1558 |
| Interest expense: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water |  | 17 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 23 |  |
| &nbsp;&nbsp;&nbsp; Corporate | 146 | 170 |
|  | 169 | 187 |
| Depreciation and amortization expenses: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water | 1145 | 482 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 7333 | 13243 |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial | 1049 | 653 |
| &nbsp;&nbsp;&nbsp; Corporate | 619 | 388 |
|  | 10146 | 14766 |
| Impairment, inventory obsolescence and stock-based compensation expenses: |  |  |
| &nbsp;&nbsp;&nbsp; Smart Water | 31 | 189 |
| &nbsp;&nbsp;&nbsp; Energy Solutions | 2618 | 993 |
| &nbsp;&nbsp;&nbsp; Intelligent Industrial | 907 | 2830 |
| &nbsp;&nbsp;&nbsp; Corporate | 1020 | 642 |
|  | 4576 | 4654 |

---

------

The Company's manufacturing operations for its business segments are combined. Therefore, the Company does *not* segregate and report separate balance sheet accounts for each of its segments and, therefore, *no* such segment balance sheet information is presented in the table above.

"Corporate" expense from operations primarily consists of the Company's Houston headquarters general and administrative expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *30*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Geospace Technologies Corporation and Subsidiaries

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Consolidated Financial Statements—(Continued)

The Company generates revenue from product sales, product rentals and services from its subsidiaries located in the United States, Canada, Colombia, the Russian Federation (sold in *August 2024)* and the United Kingdom. Revenue generated by the Company's subsidiaries is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| United States | $106603 | $127488 |
| Canada | 1552 | 1777 |
| Russian Federation |  | 3487 |
| United Kingdom | 2648 | 2846 |
|  | $110803 | $135598 |

---

A summary of revenue by geographic area is as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***YEAR ENDED SEPTEMBER 30,*** | ***YEAR ENDED SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| Asia (including Russian Federation) | $26552 | $51103 |
| Canada | 2931 | 2015 |
| Europe | 5067 | 13817 |
| Mexico | 2746 | 1959 |
| South America | 3146 | 2798 |
| United States | 69291 | 63061 |
| Other | 1070 | 845 |
|  | $110803 | $135598 |

---

Revenue is attributed to countries based on the ultimate destination of the product sold, if known. If the ultimate destination is *not* known, revenue is attributed to countries based on the geographic location of the initial shipment.

Long-lived asset balances are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | ***AS OF SEPTEMBER 30,*** | ***AS OF SEPTEMBER 30,*** |
|  | ***2025*** | ***2024*** |
| United States | $63332 | $61487 |
| Canada | 366 | 414 |
| Colombia | 392 | 399 |
| United Kingdom | 447 | 528 |
|  | $64537 | $62828 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F- *31*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; F-32

## Exhibit 21.1

**Exhibit 21.1**

**Subsidiaries of**

**Geospace Technologies Corporation**

GTC, Inc., a Texas corporation

Geospace Technologies Canada, Inc., an Alberta corporation

Exile Technologies Limited, a United Kingdom company

Geospace Technologies, Sucursal Sudamericana LLC, a Texas limited liability company

Geospace Technologies Sucursal Sudamericana, a Colombia Branch Office

Geospace Brasil Equipmentos Sismicos EIRELI, a Brazilian company

Aquana LLC, a Vermont limited liability company

Quantum Technology Sciences, Inc., a Florida corporation

Geovox Securities, Inc., a Texas Corporation

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the Registration Statement (No. 333-259131) on Form S-8 of Geospace Technologies Corporation of our reports dated November 21, 2025, relating to the consolidated financial statements and the effectiveness of internal control over financing reporting of Geospace Technologies Corporation, appearing in this Annual Report on Form 10-K of Geospace Technologies Corporation for the year ended September 30, 2025.

/s/ RSM US LLP

Houston, Texas

&nbsp;&nbsp;&nbsp;&nbsp;November 21, 2025

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATIONS**

I, Richard J. Kelley, certify that:

1. I have reviewed this annual report on Form 10-K of Geospace Technologies Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 21, 2025

---

| | |
|:---|:---|
| /s/ Richard J. Kelley | /s/ Richard J. Kelley |
| Name: | Richard J. Kelley |
| Title: | Director and Principal Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATIONS**

I, Robert L. Curda, certify that:

1. I have reviewed this annual report on Form 10-K of Geospace Technologies Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

November 21, 2025

---

| | |
|:---|:---|
| /s/ Robert L. Curda | /s/ Robert L. Curda |
| Name: | Robert L. Curda |
| Title: | Executive Vice President, Chief Financial Officer and Secretary |

---

## Exhibit 32.1

**Exhibit 32.1**

**Informational Addendum to Report on Form 10-K**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

***<u>Not Filed Pursuant to the Securities Exchange Act of 1934</u>***

The undersigned Director and Principal Executive Officer of Geospace Technologies Corporation does hereby certify as follows:

Solely for the purpose of meeting the requirements of Section 906 of the Sarbanes-Oxley Act of 2002, and solely to the extent this certification may be applicable to this Report on Form 10-K, the undersigned hereby certifies that this Report on Form 10-K fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in this Report on Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Geospace Technologies Corporation.

---

| | |
|:---|:---|
| /s/ Richard J. Kelley | /s/ Richard J. Kelley |
| Name: | Richard J. Kelley |
| Title: | Director and Principal Executive Officer |
| November 21, 2025 | November 21, 2025 |

---

## Exhibit 32.2

**Exhibit 32.2**

**Informational Addendum to Report on Form 10-K**

**Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

***<u>Not Filed Pursuant to the Securities Exchange Act of 1934</u>***

The undersigned Vice President, Chief Financial Officer and Secretary of Geospace Technologies Corporation does hereby certify as follows:

Solely for the purpose of meeting the requirements of Section 906 of the Sarbanes-Oxley Act of 2002, and solely to the extent this certification may be applicable to this Report on Form 10-K, the undersigned hereby certifies that this Report on Form 10-K fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in this Report on Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Geospace Technologies Corporation.

---

| | |
|:---|:---|
| /s/ Robert L. Curda | /s/ Robert L. Curda |
| Name: | Robert L. Curda |
| Title: | Execuitve Vice President, Chief Financial Officer and Secretary |
| November 21, 2025 | November 21, 2025 |

---

## Exhibit 10.9

**Exhibit 10.9**

![ex_879996img001.jpg](ex_879996img001.jpg)

**EMPLOYMENT AGREEMENT**

THIS EMPLOYMENT AGREEMENT (this "*Agreement*") is made effective as of January 1, 2025 (the "*Effective Date*") between Geospace Technologies Corporation, a Texas corporation (the "*Company*") and **Ronald Todd Bushey** ("*Employee*"), having a mailing address at **20 Mockingbird Hill Road, Windham, New Hampshire, 03087**. Each of Company and Employee is referred to as a "Party" and together, as the "Parties".

WHEREAS, the Company considers the establishment and maintenance of a sound and vital management to be essential to protecting and enhancing the best interests of the Company and its stockholders;

WHEREAS, in order to induce Employee to remain an employee of the Company under the terms as set forth herein and in connection with the Employee performing in the position of **Chief Technology Officer**, the Company is willing to agree to provide certain severance benefits to Employee in the event Employee's employment is terminated under the circumstances described below;

WHEREAS, information regarding Employee's job duties, compensation and other benefits during the term of this Agreement has been provided to Employee and may also be obtained by Employee directly from the Company; and

NOW, THEREFORE, in consideration of the mutual promises and conditions contained herein, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. TERM

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. <u>Agreement Term</u>. This Agreement shall commence on the Effective Date hereof and shall continue for a period of 24 months from the Effective Date, or until **December 31, 2027** ("Termination Date"), whichever is earlier. Unless earlier terminated in accordance with Section 2 of this Agreement, the Agreement will automatically terminate at the end of the Term, unless both parties agree to extend, renew or enter into a new agreement in writing prior to the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. <u>Consideration by Employee</u>. In consideration of the Company's entering into this Agreement, Employee hereby agrees during the period commencing on the date hereof and extending through the end of the term of this Agreement that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Employee will not voluntarily terminate employment with the Company without the Company's consent to such termination, except in the event of a termination by Employee for "Good Reason" (as defined in Section 2.3) in accordance with Section 2.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Employee hereby agrees to the restrictions set forth in Section 4 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Employee shall, subject to the other terms of this Agreement, perform the "Employee's Duties and Responsibilities" of his position with the Company or its subsidiaries, as required by the Company as enumerated below, and such other duties and responsibilities on behalf of the Company and the Company's subsidiaries as reasonably may be designated from time to time by the officers of the Company or by its designees as are agreed in writing between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) In performing "Employee's Duties and Responsibilities", Employee shall operate from facilities provided by the Company in Houston, Texas, where principal operations of the Company are performed.

*"Employee*'*s Duties and Responsibilities*" shall mean providing, as directed by the Chief Executive Officer, executive leadership and oversight functions, that without limitation envelop the Company's business development, customer relations, and operational management directed toward the design, development, manufacture, marketing, and sales of the Company's products and services for any and all of its designated market segments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Employee shall devote their full business time and their best efforts, business judgment, skill and knowledge exclusively to the advancement of the business and interests of the Company and its subsidiaries and to the discharge of their duties and responsibilities hereunder. Employee shall not engage in any other business activity or serve in any industry, trade, professional, governmental or academic position during the term of this Agreement, except as maybe expressly approved in advance by the Company in writing, which approval shall not be unreasonably delayed, conditioned, or withheld; provided, however, that Employee may without advance consent participate in charitable activities, including service on the board of directors or advisory board of one or more non-profit organizations to the extent it does not interfere with their duties hereunder, and passive personal investment activities, provided that such activities do not, individually or in the aggregate, interfere with the performance of Employee's duties under this Agreement, are not in conflict with the business interests of the Company or any of its subsidiaries and do not otherwise violate this Agreement, including Sections 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Employee shall make reasonable efforts to comply with all Company policies, practices, and procedures and all codes of ethics or business conduct applicable to Employee's position, as in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. TERMINATION OF EMPLOYMENT

Employee shall be entitled to the benefits provided in Section 3.4 hereof upon the termination of their employment, unless such termination is (a) because of their death or "Disability" (as defined in Section 2.1 below), (b) by the Company for "Cause" (as defined in Section 2.2 below), or (c) by Employee other than for "Good Reason" (as defined in Section 2.3 hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. <u>Disability</u>. If, as a result of Employee's incapacity due to physical or mental illness, Employee shall have been absent from their duties on a full-time basis for 90 consecutive business days, and within 30 days after Notice of Termination (as defined in Section 2.4) is given Employee shall not have returned to the full-time performance of their duties, the Company may terminate their employment for "*Disability*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. <u>Cause</u>. The Company may terminate Employee's employment for "*Cause*." For the purposes of this Agreement, the Company shall have Cause to terminate Employee's employment hereunder upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The willful and continued failure by Employee to perform their Duties and Responsibilities with the Company (other than any such failure resulting from incapacity due to physical or mental illness), however, the Company may terminate Employee pursuant to this clause (A) only if Employee fails to cure any alleged failure after having had a reasonable opportunity to do so, which reasonable opportunity shall not be less than thirty (60) days after receiving such written notice which specifically identifies the manner in which the Company believes that they have not substantially performed their duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Employee's breach of any obligations under this Agreement or any other agreement with Company (or any subsidiary thereof); it being agreed that any breach of Section 4 or Section 6 by Employee shall be deemed a material breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Any breach of Employee's duty of loyalty or fiduciary duties to Company or any subsidiary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) Use of alcohol or other drugs in a manner which affects the performance of Employee's duties, responsibilities and obligations to Company or any subsidiary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) Conviction of Employee, or a plea of nolo contendere for a felony or of any crime involving theft, misrepresentation, fraud, or moral turpitude;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) Commission by Employee of any other willful or intentional act which could reasonably be expected to injure the reputation, business or business relationships of Company or any subsidiary thereof and/or Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) The existence of any court order or settlement agreement prohibiting Employee's continued employment with Company or any subsidiary thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H) Engaging by Employee in gross misconduct.

For purposes of this paragraph, "*willful*" shall mean an act, or failure to act, on Employee's part that was done, or omitted to be done, without reasonable belief that Employee's action or omission was in the best interest of the Company or any subsidiary thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. <u>Good Reason</u>. Employee may terminate their employment for Good Reason, after notice to the Company by Employee of at least thirty (30) days and a cure period for the Company of at least forty-five (45) days. For purposes of this Agreement, "*Good Reason*" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. An involuntary material reduction (a reduction that exceeds 10%) in Employee's Base Salary as in effect on the date hereof or as the same may be increased from time to time (the "*Base Salary*");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. An involuntary relocation of the Employees principal place of performance of Employee's duties and responsibilities as an employee of the Company to a location more than one hundred (100) miles from the place of employment, notwithstanding required travel for the Company's, or any of its subsidiaries' businesses, as the Company may from time to time be engaged in, unless consented to by Employee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. Any failure of the Company to obtain the assumption of (unless such assumption occurs by merger, equity purchase, or otherwise operation of law), or the agreement to perform (unless such performance is required to occur by merger, equity purchase, or otherwise operation of law), this Agreement by any successor as contemplated in Section 5 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4. Any termination of Employee's employment by the Company other than terminations pursuant to Section 2.1 or Section 2.2 above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. <u>Notice of Termination</u>. Any termination by the Company or Employee of Employee's employment (other than any such termination occurring by reason of Employee's death) shall be communicated by written Notice of Termination to the other party hereto. In the event that Employee seeks to terminate their employment pursuant to Section 2.3 above, the Employee must communicate their written Notice of Termination to the Company within 90 days of being notified of such action or actions (or failure or failures to act) by the Company which constitute Good Reason, otherwise Employee waives their right to terminate for Good Reason based on such action or actions (or failure or failures to act). The Employee's Notice of Termination shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee's employment for Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. <u>Date of Termination</u>. "*Date of Termination*" shall mean (i) if this Agreement is terminated for Disability, 30 days after Notice of Termination is given (provided that Employee shall not have returned to the performance of their duties on a full-time basis during such 30 day period); (ii) if this Agreement is terminated because of Employee's death, the date of their death; and (iii) if Employee's employment is terminated for any other reason, the date on which a Notice of Termination is given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. COMPENSATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. <u>Compensation</u>. Employee's compensation shall consist of 1) an annual cash salary("*Base Salary*"), beginning in the first year of employment at **Three Hundred Fifty Thousand, USD ($350,000.00 USD)**, or the equivalent thereof if paid in any other currency, prorated in the first year for that portion of the year Employee is employed with the Company from the Start Date and prorated for the number of days employed during any other partial year, 2) an annual bonus opportunity ("*Bonus*"), the amount determined in accordance with the Company's annual performance bonus plan as approved by the Board of Directors, and 3) periodic awards of shares of the Company's common stock, options, restricted stock units or performance stock units, the amount of such periodic awards to be determined in accordance with the Company's executive compensation plan as approved by the Board of Directors.

<u>Disability</u>. During any period that Employee fails to perform their duties hereunder as a result of incapacity due to physical or mental illness, Employee shall continue to receive their full Base Salary at the rate then in effect and any installments of deferred portions of awards under any incentive, bonus, or other compensation plan paid during such period until this Agreement is terminated pursuant to Section 2 hereof. Thereafter, Employee's benefits shall be determined in accordance with the Company's long term disability income insurance plan, or a substitute plan then in effect. For the avoidance of doubt, in the event of disability this employee agreement is intended to be in adherence to all terms and conditions covered in the Employee Restricted Stock Unit Award agreement.

<u>Death.</u> For the avoidance of doubt, in the event of death this employee agreement is intended to be in adherence to all terms and conditions covered in the Employee Restricted Stock Unit Award agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. <u>Termination for Cause, Due to Death or by Employee Without Good Reason</u>. If Employee's employment shall be terminated because of Employee's death, by the Company for Cause, or by Employee for no reason or any reason other than Good Reason, (i) the Company shall pay Employee their full Base Salary through the Date of Termination at the rate in effect at the time of their death or at the time Notice of Termination is given, as applicable, and shall also pay cash amount equal to accrued but unused vacation pay but only to the extent required by applicable law, and (ii) the Company shall have no further obligations to Employee under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. <u>Termination Without Cause</u>. If (a) if this Agreement terminates because it is not renewed and the Company terminates the Employee without Cause within six months after such termination due to nonrenewal, or (b) during the term of this Agreement, the Company shall terminate Employee's employment other than pursuant to Sections 2.1 or 2.2 hereof or if Employee shall terminate their employment for Good Reason, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1. Company shall pay to Employee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1.1. Employee's full base salary through the Date of Termination at the rate in effect at the time the Notice of Termination is given, and at the time provided under the Company's normal payroll practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.1.2. as severance, and in lieu of any further payments to Employee for periods subsequent to the Date of Termination, an amount equal to twelve months of the Employee's Base Salary, such severance payment to be paid in a lump sum on the 60<sup>th</sup> day following Employee's Separation From Service (as that term is defined in Section 3.7) provided that Employee timely signs and returns to the Company, within 45 days of the effective date of Employee's Separation from Service, an effective, valid and enforceable general release of claims (the "*Release*") in such form as is reasonably requested by the Company and does not thereafter revoke the Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.2. Notwithstanding any other provision of the Agreement, upon termination all remaining Forfeiture Restrictions then applicable to Restricted Stock Units shall immediately lapse on the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.3. Provided that the Employee, shall not violate the provisions of Section 6, the Company shall maintain in full force and effect for the continued benefit of Employee, for a period of one year after the Date of Termination, all employee benefit plans and programs or arrangements providing life insurance, medical, dental, health, hospital, accident, disability and similar benefits in which Employee was entitled to participate immediately prior to the Date of Termination provided that Employee's continued participation is possible under the general terms and provisions of such plans, programs or arrangements and does not require increased expense to the Company or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4. <u>Certain Tax Matters</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.1. Notwithstanding any other provision of this Agreement to the contrary, if any payment or benefit by or from the Company or any of its affiliates to or for the benefit of Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise would be subject to the Excise Tax (as hereinafter defined) (all such payments and benefits being collectively referred to herein as the "*Payments*"), then except as otherwise provided in Section 3.4.3.2, the Payments shall be reduced (but not below zero) or eliminated (as further provided for in Section 3.4.3.3) to the extent the Independent Tax Advisor (as hereinafter defined) shall reasonably determine is necessary so that no portion of the Payments shall be subject to the Excise Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.2. Notwithstanding the provisions of Section 3.4.3.1, if the Independent Tax Advisor reasonably determines that Employee would receive, in the aggregate, a greater amount of the Payments on an after-tax basis (including all applicable federal, state, and local income, employment and other applicable taxes and the Excise Tax) if the Payments were not reduced or eliminated pursuant to Section 3.4.3.1, then no such reduction shall be made notwithstanding that all or any portion of the Payments may be subject to the Excise Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.3. For purposes of determining which of Section 3.4.3.1 and Section 3.4.3.2 shall be given effect, the determination of which Payments shall be reduced or eliminated to avoid the Excise Tax shall be made by the Independent Tax Advisor, provided that the Independent Tax Advisor shall reduce or eliminate, as the case may be, the Payments in the following order (and within the category described in each of the following Sections 3.4.3.3.1 through 3.4.3.3.4, in reverse order beginning with the Payments which are to be paid farthest in time except as otherwise provided in Section 3.4.3.3.3):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.3.1. by first reducing or eliminating the portion of the Payments otherwise due which are not payable in cash (other than that portion of the Payments subject to Sections 3.4.3.3.3 and 3.4.3.3.4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.3.2. then by reducing or eliminating the portion of the Payments otherwise due and which are payable in cash (other than that portion of the Payments subject to Sections 3.4.3.3.3 and 3.4.3.3.4);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.3.3. then by reducing or eliminating the portion of the Payments otherwise due that represent equity-based compensation, such reduction or elimination to be made in reverse chronological order with the most recent equity-based compensation awards reduced first; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.3.4. then by reducing or eliminating the portion of the Payments otherwise due under Section 3.4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.4. The Independent Tax Advisor shall provide its determinations, together with detailed supporting calculations and documentation, to the Company and Employee for their review no later than ten days after the Date of Termination. The determinations of the Independent Tax Advisor under this Section 3.4.1.2 shall, after due consideration of the Company's and Employee's comments with respect to such determinations and the interpretation and application of this Section 3.4.1.2, be final and binding on all parties hereto absent manifest error. The Company and Employee shall furnish to the Independent Tax Advisor such information and documents as the Independent Tax Advisor may reasonably request in order to make the determinations required under this Section 3.4.1.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.5. For purposes of this Section 3.4.1.2, "*Independent Tax Advisor*" shall mean a lawyer with a nationally recognized law firm, a certified public accountant with a nationally recognized accounting firm, or a compensation consultant with a nationally recognized actuarial and benefits consulting firm, in each case with expertise in the area of executive compensation tax law, who shall be selected by the Company and shall be acceptable to Employee (Employee's acceptance not to be unreasonably withheld), and all of whose fees and disbursements shall be paid by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.4.6. As used in this Agreement, the term "*Excise Tax*" means, collectively, the excise tax imposed by Section 4999 of the Code, together with any interest thereon, any penalties, additions to tax, or additional amounts with respect to such excise tax, and any interest in respect of such penalties, additions to tax or additional amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3.5. For clarity, the compensation stated in this Section 3.4 is the exclusive compensation that Employee will receive upon termination other than pursuant to Sections 2.1 or 2.2 hereof or if Employee shall terminate his employment for Good Reason. Under no circumstances will Employee be paid out the remainder of Base Salary for any portion of the Term remaining after the Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. <u>Late Payments</u>. In the event any amount to be paid to Employee hereunder is not paid by the date specified herein, such amount shall bear interest at a rate equal to the rate of interest per annum quoted in the "Money Rates" column of The Wall Street Journal from time to time and designated in such column as the "Prime Rate"; *provided*, however, in no event shall an amount be paid later than the later of end of the calendar year in which date specified herein occurs or 2½ months following such date specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. <u>Determination of Base Salary</u>. In the event Employee terminates this Agreement pursuant to Section 2.3.1 hereof, Employee's base salary for purposes of determining benefits pursuant to this Section 3 shall be Employee's base salary in effect prior to its reduction by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6. <u>Section 409A</u>. It is intended that the severance payment payable under Section 3.4.1.2 of this Agreement be exempt from the requirements of Section 409A of the Code ("*Section 409A*") under the involuntary separation pay provisions in Treasury Regulation §l.409A- 1(b)(9)(iii), and this Agreement shall be construed and administered accordingly. Notwithstanding any provisions of the Agreement to the contrary, if any part of the payment payable under Section 3.4.1.2 of this Agreement does not so qualify as involuntary separation pay described in Treasury Regulation §1.409A-l(b)(9)(iii) such amount shall only be paid after the amount that does so qualify has been paid and, if Employee is a "*specified employee*" within the meaning of Section 409A at the time of their Separation From Service, then the portion of the payment payable under Section 3.4.1.2 of this Agreement that does not qualify as involuntary separation pay described in Treasury Regulation §1.409A-l(b)(9)(iii) will be paid on the first business day following the six month anniversary of Employee's date of Separation From Service as required, and to the extent permitted, under Section 409A(a)(2)(B) of the Code, to the extent that earlier payment would result in adverse tax consequences under Section 409A. The term "*Separation From Service*" means "separation from service" within the meaning of Section 409A (using the default rules thereunder). For purposes of the severance payment payable under Section 3.4.1.2 of this Agreement the term "termination of employment" means Employee's Separation From Service with the Company and all of its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. INTELLECTUAL PROPERTY – CONFIDENTIALITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. <u>Definitions</u>. As used in this Section 4, the following words or phrases shall have the following definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1. The term "*Business Entity*" shall mean any corporation, partnership, joint venture, proprietorship, or other incorporated or unincorporated organization, association or entity, including any division or business operated by any of the foregoing under a trade or assumed name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2. The term "*Subsidiaries*" shall mean and include any Business Entities in which the Company owns an interest, directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3. The term "*Company*" shall mean and include Geospace Technologies Corporation, their successors and assigns, their Subsidiaries, parent companies, and any of the foregoing operating under a trade or assumed name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.4. The term "*Employee of the Company*" shall mean any person employed by the Company in any capacity at any time during the term of this Agreement, or any renewal or extension thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.5. The term "*Customer*" shall mean any person or Business Entity which has, in the past or at any time during the term of this Agreement or any renewal or extension hereof, contracted, including by purchase order, with the Company for the development, manufacture, lease, repair, sale or purchase of any Product or the license from the Company of any Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.6. The term "*Product*" shall mean any and all equipment, machine, service, software, algorithm, publication, component, tool, instrument, system, or assembly researched, developed, conceived, manufactured, assembled, represented, distributed, or sold by the Company at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.7. The term "*Intellectual Property*" shall mean all methods, patents, formulae, inventions, designs, systems, processes, software, trade secrets, copyrights, know-how, proprietary information, rights, trademarks, and trade names relating to any Product conceived, developed, completed or established by the Company, or by Employee (whether solely or jointly with others) during the term of this Agreement (including any renewal or extension hereof) (i) at the Company's expense, (ii) at the Company's request, (iii) using the Company's time, data, facilities and/or materials, or (iv) based upon knowledge or information obtained from the Company, and shall include all modifications and improvements thereof made at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. <u>Intellectual Property of the Company</u>. Employee agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1. That all Intellectual Property, and all notes, drawings, software, prototypes or other objects, information or writings relating thereto are the sole property of Company, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2. To communicate and explain to the Company, promptly and fully, all Intellectual Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.3. To execute and deliver to Company such assignments or other documents may be reasonably required to evidence or confirm the ownership of all Intellectual Property by the Company, which obligation shall survive the termination of Employee's employment with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.4. To perform such acts and execute such documents as may be reasonably required to allow the Company to prosecute an application for patent or registration of copyright or trademark on any such Intellectual Property, from the United States and from any other government, and to cooperate fully with the Company in the prosecution of any such application or registration, which obligation shall survive the termination of Employee's employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.5. All intellectual property, if any, patented or unpatented, which Employee has conceived or made or first reduced to practice or has any rights in prior to this employment by the Company are described on Exhibit A. All Intellectual Property other than those items specifically described on Exhibit A shall constitute the sole property of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1. Employee acknowledges that the Company's continued operations and success in the development, manufacture, leasing, repair, and sale of its Products is dependent upon (i) certain processes, formulae, specifications, designs, systems, and confidential information of the Company which are valuable, special and unique assets and (ii) the Company's continuing relationship with, and knowledge about, Customers and prospective Customers and the goodwill these relationships create. Employee acknowledges that all of the following information is confidential and a valuable, special, and unique trade secret of the Company's business: (i) the names, addresses and telephone numbers of Customers, their employees, and their representatives,(ii) the nature of the business and operations of any Customer, (iii) the amount, nature, volume, and other information regarding any Products purchased, leased or otherwise acquired by any Customer or required by any Customer; (iv) the nature of the internal business operations of the Company; (v) the methods, processes, formulae, specifications, designs, systems, and know-how used, developed, or acquired by the Company for the development, manufacture, and/or repair of any Product; (vi) the Company's prices or charges to Customers for its Products; (vii) the Intellectual Property, and (viii) information regarding the salaries, bonuses or other compensation paid by the Company to its employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2. Employee acknowledges that all of the information described in Section 4.3.1 is "*Confidential Information*," which together with the Intellectual Property is the sole and exclusive property of the Company. Employee acknowledges that all Confidential Information and the Intellectual Property is revealed to Employee in trust, based solely upon the confidential relationship existing between the Company and Employee. Employee agrees: (i) that all writings or other records concerning Confidential Information and the Intellectual Property are the sole and exclusive property of the Company; (ii) that all manuals, forms, and supplies furnished to or used by Employee and all data or information placed thereon by Employee or any other person are the Company's sole and exclusive property, (iii) that, upon termination of this Agreement howsoever such termination is brought about, or upon request of the Company at any time, Employee shall deliver to the Company all such writings, records, forms, manuals, and supplies and all copies of such writings; (iv) that Employee will not make or retain any copies of such writings for their own or personal use, or take the originals or copies of any such writings from the offices of the Company upon termination of this Agreement; and (v) that Employee will not, either during or after the term of this Agreement, publish, distribute or deliver any of such writings or records to any other person or entity, or disclose to any person or entity the contents of such records or writings or any of the Confidential Information nor any information regarding the Intellectual Property, and will keep such writings and records in a reasonably secure manner and not permit other persons or entities to access them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. <u>Intellectual Property of Others</u>. Employee recognizes that the Company has a longstanding policy to not knowingly violate the valid intellectual property rights, including patents, trade secrets and copyrights, of other persons. In order to comply with such policy, Employee covenants that the will comply with such policy and that their willful breach of this covenant could constitute "Cause" within the meaning of Section 2.2 hereof. Employee covenants, represents and warrants in these regards as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1. Exhibit B hereto contains a true, complete and accurate list of all intellectual property of Employee that have been made or conceived or first reduced to practice by Employee alone or jointly with others, or to which Employee has any rights prior to the employment of Employee by the Company. If disclosure of any such inventions on Exhibit B would cause Employee to violate any prior confidentiality agreement, Employee understands that such intellectual property is not to be listed on Exhibit B but agrees to inform the Company that all such intellectual property has not been listed for that reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2. Employee's performance of all of the duties and obligations of employment at the Company does not and will not breach any agreement or duty to keep in confidence confidential information acquired by Employee in confidence or in trust prior to the employment of Employee by the Company. During Employee's work with the Company, Employee will not improperly use or disclose any confidential information or trade secrets of any former employer or any other person to whom Employee has an obligation of confidentiality, and Employee will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom Employee has an obligation of confidentiality unless consented to in writing by that former employer or person. Employee will use in the performance of duties only information which is generally known and used by persons with training and experience comparable to Employee's, which is common knowledge in the industry or otherwise legally in the public domain, which is or was developed by Employee free of any obligation of confidentiality to former employers or other persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3. Employee is not restricted from being employed by the Company or entering into this Agreement. Employee has not entered into, and agrees not to enter into, any agreement either written or oral in conflict herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.4. Employee represents and warrants that, other than as set forth on Exhibit B hereto, Employee has not brought to the Company and covenants that Employee will not bring to the Company or use in the performance of Employee's responsibilities any confidential information, materials or documents of any former employers or other persons that are not generally available to the public, unless Employee has obtained prior written authorization from the former employers or other persons. Employee hereby covenants that Employee shall not breach any obligation of confidentiality or duty that Employee may have to former employers or other persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. SUCCESSORS. The Company shall require any successor to all or substantially all of the business and/or assets of the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place (except to the extent such assumption occurs as a result of a merger, equity purchase, or otherwise by operation of law). Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle Employee to compensation from the Company in the same amount and on the same terms as Employee would be entitled hereunder if Employee terminated their employment for Good Reason, except that for purposes or implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this Agreement, and except as otherwise defined in Section 4.1.3 for purposes of Section 4, "Company" shall mean the Company as defined in the preamble of this Agreement and any successor to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 5 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. NON-COMPETITION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. <u>Definitions</u>. As used in this Section 6, the following words or phrases shall have the following definitions:(A) "*Business*" means any business that (i) is involved with or competes with the business of the Company (or any of its subsidiaries) and (ii) is conducted within the United States, Canada, Israel, Mexico, or any other state or country where the Company (or any of its subsidiaries) is doing business or has done business on or prior to the Effective Date.(B) "*Person*" means any natural person, firm, partnership, association, corporation, company, limited liability company, general partnership, limited partnership, proprietorship, joint venture, trust, business trust, governmental authority or other entity. (C) "*Affiliate*" means, with respect to any Person, a natural person or entity who controls, is controlled by or is under common control with such Person. A Person is deemed to control an entity via contractual right to appoint a majority of members of its governing board or beneficial ownership of more than 50 percent of the entity's voting equity securities. A Person is the beneficial owner of securities if such Person is authorized to vote or dispose of the securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. During the Term of this Agreement, and for a period of one year thereafter, Employee shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) directly or indirectly, whether as an owner, director, officer, employee, contractor, representative or agent of any kind: engage or invest in, own, manage, operate, finance, control or participate in the ownership, management, operation, financing or control of, be employed by, associated with or in any manner connected with, render services, advice, or other aid to or guarantee any obligation of, any Person engaged in or planning to become engaged in any Business (for the avoidance of doubt, with respect to organizations engaged in multiple lines of business, Employee shall not be prevented by this Agreement from being employed by an organization that is engaged in the Business so long as Employee provides such organization with a copy of this Agreement and does not provide any services or support of any kind in connection with such organization's engagement in the Business, including creating any intellectual property that may be used in such organization's engagement in the Business);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) cause, induce or attempt to cause or induce any customer, supplier, subcontractor, licensee, developer, service provider, consultant or other business relation of the Company or its subsidiaries to cease or avoid doing business (including the Business) with the Company or its subsidiaries (or any Affiliate thereof), or in any way interfere with the relationship between any such entity and the Company, on the one hand, and the business (including the Business) of the Company or its subsidiaries (or any Affiliate thereof), on the other hand, or to deal with any competitor of the Company or its subsidiaries (or any Affiliate thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) hire, induce, or attempt to induce any former employee of the Company or its subsidiaries (or any Affiliate there) who accepts a position of employment with or is employed by the Company or its subsidiaries (or any Affiliate thereof) to leave such employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) disparage the Company or its subsidiaries (or any Affiliate thereof).

Notwithstanding the foregoing or any other provision contained in this Agreement to the contrary, Employee shall not be prohibited from purchasing or otherwise acquiring up to 2% of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended. ted from purchasing or otherwise acquiring up to 2% of any class of securities of any enterprise (but without otherwise participating in the activities of such enterprise) if such securities are listed on any national or regional securities exchange or have been registered under Section 12(g) of the Securities Exchange Act of 1934, as amended. Furthermore, in the event that Company terminates the Employee's employment with the Company without Cause, the provisions of Section 6(A) shall terminate six months after the Date of Termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. NOTICE. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally or by commercial delivery service, or mailed by registered or certified mail (return receipt requested) or sent via email (with confirmation sent by any of the other methods mentioned previously) to the parties hereto at the following address (or at such other address for a party as shall be specified by like notice); provided that all notices to the Company shall be directed to the attention of the Chief Executive Officer of the Company with a copy to the Secretary of the Company, and provided further that notices of change of address shall be effective only upon receipt.

If to Employee:

Ronald Todd Bushey

20 Mockingbird Hill Road

Windham, NH 03807

Telephone: (603) 475-3999

Email: r.todd.bushey@icloud.com

If to Company:

Geospace Technologies Corporation<br> 7007 Pinemont Drive<br> Houston, Texas 77040

Telephone: +1 (713) 986-4444

Attention: rkelley@geospace.com and rcurda@geospace.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in a writing signed by Employee and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or of such condition or provision at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. "Including" has used herein means "including, without limitation." The recitals above shall be given full weight when interpreting the terms of this Agreement, and are hereby incorporated in this Agreement by references such that they form an enforcement part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. VALIDITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. GOVERNING LAW. This Agreement shall be governed by and construed under the laws of the State of Texas without giving effect to a choice or conflict of law provision or rule of such state.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. ARBITRATION. Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in Houston, Texas (in accordance with the rules of the American Arbitration Association then in effect). Notwithstanding the pendency of any such dispute or controversy, the Company will continue to pay Employee their full compensation in effect when the notice giving rise to the dispute was given and continue Employee as a participant in all compensation, benefit and insurance plans in which they were participating when the notice giving rise to the dispute was given, until the dispute is finally resolved. Judgment may be entered on the arbitrator's award in any court having jurisdiction; provided, however, that Employee shall be entitled to seek specific performance of their right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ENFORCEABILITY. If, at the time of enforcement of this Agreement, a court or arbitrator holds that the restrictions stated herein are unreasonable under the circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. REMEDIES. The parties hereto acknowledge that money damages would be an inadequate remedy for any breach of this Agreement. Therefore, in the event of a breach or threatened breach of this Agreement, the non-breaching party or its successors or assigns will be entitled to seek injunctive relief, in addition to other rights and remedies existing in their favor, in order to enforce, or prevent any violations of, the provisions of this Agreement (without posting a bond or other security and without the necessity of proving actual damages).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. CAPTIONS AND GENDER. The use of captions and Section headings herein is for the purpose of convenience only and shall not affect the interpretation or substance of any provision contained herein. Similarly, the use of the masculine gender with respect to pronouns in this Agreement is for the purpose of convenience and includes either sex who may be a signatory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. PRIOR AGREEMENTS. This Agreement supersedes all prior agreements entered into between the Company and Employee with regard to the subject matter set forth herein.

[*Signature Pages Follow*]

IN WITNESS WHEREOF, the parties hereof have signed this Agreement effective as of the date first set forth above.

**EMPLOYEE**:

/s/ Ronald Todd Bushey

___________________________________

Name: Ronald Todd Bushey

**GEOSPACE TECHNOLOGIES CORPORATION**

/s/ Richard Kelley

By: ______________________________

Name: Richard Kelley

Title: Chief Executive Officer

**EXHIBIT A**

Does not apply

**EXHIBIT B**

Does not apply