# EDGAR Filing Document

**Accession Number:** 0000799165
**File Stem:** 0001104659-25-110404
**Filing Date:** 2025-11
**Character Count:** 31709
**Document Hash:** 9df1042eb4cf1e6f868ef4c7f354884c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-110404.hdr.sgml**: 20251112

**ACCESSION NUMBER**: 0001104659-25-110404

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20251112

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251112

**DATE AS OF CHANGE**: 20251112

**FILER**: 

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

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32472
- **FILM NUMBER:** 251473071

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

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

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

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 8-K**

**CURRENT REPORT**

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

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

**DAWSON GEOPHYSICAL COMPANY**

(Exact name of Registrant as specified in its charter)

---

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

---

**508 West Wall, Suite 800**

**Midland, Texas 79701**

(Address of principal executive offices) (Zip Code)

**(432) 684-3000**

(Registrant's telephone number, including area code)

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

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

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

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

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

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

---

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

---

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

Emerging growth company ☐

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

---

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

---

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

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

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

---

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

---

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

---

| | |
|:---|:---|
| &nbsp;&nbsp;EXHIBIT NUMBER | &nbsp;&nbsp;DESCRIPTION |
| &nbsp;&nbsp;[99.1](dwsn-20251112xex99d1.htm) | &nbsp;&nbsp;[Press release dated November 12, 2025](dwsn-20251112xex99d1.htm)  |
| &nbsp;&nbsp;104 | &nbsp;&nbsp;Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

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

---

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

---

## Exhibit 99.1

**Exhibit 99.1**

---

| | |
|:---|:---|
| **NEWS RELEASE**<br>Dawson Geophysical Company<br>508 W. Wall, Suite 800 <br>Midland, TX 79701  | ![Graphic](dwsn-20251112xex99d1001.gif) |

---

**Company contact:**

---

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

---

**DAWSON GEOPHYSICAL REPORTS**

**THIRD QUARTER 2025 RESULTS**

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

**Management Comment**

Tony Clark, Dawson's President and CEO, commented, "We received our first delivery of our new single node channels in mid-August and immediately deployed the new equipment on a small channel crew with promising results. Due to the high demand from our customers for this equipment, we have accelerated our delivery timeline and received two additional equipment deliveries, at the end of September and October. We expect that the increase in our channel count will allow us to continue to improve our top-line results as we continue to utilize our legacy equipment and deploy our new equipment. Currently we have over 180,000 channels of legacy and new equipment available to service the industry, and we are increasing our efforts on passive seismic monitoring with positive activity.

Our Canadian segment acquired several passive monitoring surveys in the third quarter while preparing for a robust winter season. We are incorporating the new single node channels in this market, with positive feedback from our customers.

Overall, we saw the potential that this new equipment can have in terms of our competitive position in the market, and our financial results. We expect to capitalize on that potential with our first large channel crew deployment of the single node channels in the fourth quarter."

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

For the third quarter ended September 30, 2025, the Company reported fee revenues of $14.9 million, an increase of 220% compared to $4.7 million for the comparable quarter ended September 30, 2024. Total revenue included reimbursable revenue of $7.8 million and $9.8 million for the quarters ended September 30, 2025, and September 30, 2024, respectively. Gross margin<sup>1</sup> for the quarter ended September 30, 2025, was 15% compared to negative 37% for the comparable quarter ended September 30, 2024, due to the increase in fee revenue and improved efficiencies in our operations.

We incurred a net loss of $1.2 million or $0.04 per common share compared to a net loss of $5.6 million or $0.18 per common share for the quarter ended September 30, 2024. During the quarter ended September 30, 2025, we generated EBITDA of $0.2 million, compared to negative EBITDA of $4.3 million in the quarter ended September 30, 2024.

Year-to-date, we incurred a net loss of $2.5 million or $0.08 per common share in 2025 compared to a net loss of $3.3 million or $0.11 per common share in 2024. We generated EBITDA of $1.4 million in the nine months ended September 30, 2025, compared to EBITDA of $0.9 million in the nine months ended September 30, 2024.

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

------

**Operations Update**

In the United States, we continued to operate one large channel crew throughout the third quarter utilizing our legacy channels. That crew is scheduled to complete that job in mid-November and immediately start another large channel job, utilizing the new single node channels, scheduled to end in April. Our seasonal operations in Canada resumed in October, and we expect them to ramp up into another successful season. We have multiple small channel crew jobs contracted in the fourth quarter in the United States and Canada and expect our revenue to continue to increase quarter-over-quarter.

**Capital Budget and Liquidity** 

Year-to-date, we have generated $11.9 million in cash flows from our operations, and increased our cash balance to $5.1 million at September 30, 2025, compared to $1.4 million at December 31, 2024. In October 2025, we entered into a revolving credit facility with a maximum lender commitment amount of $5 million. We believe that our cash on hand, operating cash flows and cash available under our revolving credit facility are sufficient to fund our cash flow requirements as well as our debt obligations.

**About Dawson**

Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States and Canada. Dawson acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators, as well as providers of multi-client data libraries. Carbon Capture Utilization and Storage ("CCUS") seismic monitoring continues to grow and be an intricate part of our business. Dawson has acquired several CCUS base surveys and plan to acquire more in the future.

**Non-GAAP Financial Measures**

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

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

· our operating performance over time in relation to other companies that own similar assets and that we believe calculate EBITDA in a similar manner; and

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

The Company also understands that such data are used by investors to assess our performance. However, the term EBITDA is not defined under generally accepted accounting principles ("GAAP"), and EBITDA is not a measure of operating income or operating performance presented in accordance with GAAP. When assessing the Company's operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since other companies may not calculate EBITDA in the same manner as the Company. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, depreciation and amortization, and other unusual items. For the three and nine months ended September 30, 2025, and 2024, there were no unusual items and therefore Adjusted EBITDA and EBITDA were equal, and only EBITDA is presented in the tables following the text of this press release.

------

**Forward-Looking Statements**

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect the Company's actual results of operations. Forward-looking statements generally relate to future events or the Company's future financial or operating performance and may be identified by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Such statements include, but are not limited to, statements about the Company's future financial or operating performance, statements of the Company's position in the marketplace; statements about the Company's growth potential and strategies for growth; statements about the Company's ability to realize the benefits expected from the new single node channels; and any indication that the Company may be able to sustain or increase its sales, earnings or earnings per share, or its sales, earnings or earnings per share growth rates. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These risks include, but are not limited to, the Company's status as a controlled public company, which exempts the Company from certain corporate governance requirements; the limited market for the Company's shares, which could result in the delisting of the Company's shares from Nasdaq and the Company no longer being required to make filings with the U.S. Securities and Exchange Commission (the "SEC"); the impact of general economic, industry, market or political conditions; dependence upon energy industry spending; changes in exploration and production spending by our customers and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers, particularly during extended periods of low prices for crude oil and natural gas; the volatility of oil and natural gas prices; changes in economic conditions; surplus in the supply of oil and the ability of the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+ to agree on and comply with supply limitations; the duration and magnitude of the unprecedented disruption in the oil and gas industry currently resulting from the impact of the foregoing factors, which is negatively impacting our business; the potential for contract delays; reductions or cancellations of service contracts; limited number of customers; credit risk related to our customers; reduced utilization; high fixed costs of operations and high capital requirements; industry competition; external factors affecting the Company's crews such as weather interruptions and inability to obtain land access rights of way; whether the Company enters into turnkey or day rate contracts; crew productivity; risks that the Company's cash reserves, liquidity or capital resources may be insufficient; risks related to our indebtedness and compliance with covenants contained in our revolving credit facility; the Company's ability to execute its business strategies and plans for growth; the failure to operationalize the new single node channels in a timely manner or at all; disruptions in the global economy, including export controls and financial and economic sanctions imposed on certain industry sectors and parties as a result of the developments in Ukraine and related activities, and whether or not a future transaction or other action occurs that causes the Company to be delisted from Nasdaq and no longer be required to make filings with the SEC. A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Annual Report on Form 10-K that was filed with the SEC on April 2, 2025. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

------

**DAWSON GEOPHYSICAL COMPANY**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| **Operating revenues:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fee Revenue | $14942 | $4663 | $38936 | $39727 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable Revenue | 7804 | 9758 | 9739 | 18790 |
|  | 22746 | 14421 | 48675 | 58517 |
| **Operating costs:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee operating expenses | 12655 | 6393 | 31216 | 31712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable operating expenses | 7804 | 9758 | 9739 | 18790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 20459 | 16151 | 40955 | 50502 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 2110 | 2630 | 6435 | 7347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1349 | 1388 | 3794 | 4383 |
|  | 23918 | 20169 | 51184 | 62232 |
| **Loss from operations** | (1172) | (5748) | (2509) | (3715) |
| **Other income (expense):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 59 | 72 | 98 | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (71) | (35) | (205) | (120) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 41 | 59 | 112 | 264 |
| **Loss before income tax** | (1143) | (5652) | (2504) | (3281) |
| **Income tax (expense) benefit** | (10) | 35 | (6) | (36) |
| **Net loss** | (1153) | (5617) | (2510) | (3317) |
| **Other comprehensive income (loss):** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized (loss) income on foreign exchange rate translation | (71) | 29 | 376 | (241) |
| **Comprehensive loss** | $(1224) | $(5588) | $(2134) | $(3558) |
| **Basic loss per share of common stock** | $(0.04) | $(0.18) | $(0.08) | $(0.11) |
| **Diluted loss per share of common stock** | $(0.04) | $(0.18) | $(0.08) | $(0.11) |
| **Weighted average equivalent common shares outstanding** | 31047801 | 30906777 | 31006304 | 30845076 |
| **Weighted average equivalent common shares outstanding - assuming dilution** | 31047801 | 30906777 | 31006304 | 30845076 |

---

------

**DAWSON GEOPHYSICAL COMPANY**

**CONSOLIDATED BALANCE SHEETS**

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

---

| | | |
|:---|:---|:---|
|  | **September 30,** <br>**2025** | **December 31,**<br>**2024** |
| **Assets** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5081 | $1385 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net  | 2171 | 9970 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 5934 | 3186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 13186 | 14541 |
| **Property and equipment** | 250374 | 238064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less accumulated depreciation | (226553) | (225085) |
| **Property and equipment, net** | 23821 | 12979 |
| **Operating lease right-of-use assets** | 3209 | 3002 |
| **Intangibles, net** | 359 | 348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $40575 | $30870 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $5698 | $3381 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll costs and other taxes | 1403 | 2014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 1052 | 830 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 3709 | 1570 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of notes payable and finance leases | 3598 | 1010 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of operating lease liabilities | 1075 | 1125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 16535 | 9930 |
| **Long-term liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable and finance leases, net of current maturities | 6545 | 1512 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, net of current maturities | 2290 | 2131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax liabilities, net | 16 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | 8851 | 3659 |
| **Commitments and contingencies** |  |  |
| **Stockholders' equity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock-par value $1.00 per share; 4,000,000 shares authorized, none outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock-par value $0.01 per share; 35,000,000 shares authorized, |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31,047,801 and 30,983,437 shares issued and outstanding at September 30, 2025  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and December 31, 2024, respectively | 310 | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 157115 | 157073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (140129) | (137619) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net | (2107) | (2483) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 15189 | 17281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $40575 | $30870 |

---

------

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

**(amounts in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net income (loss) | $60 | $(1213) | $(1153) | $(4423) | $(1194) | $(5617) |
| Depreciation and amortization | 1160 | 189 | 1349 | 1144 | 244 | 1388 |
| Interest expense (income), net | 11 | 1 | 12 | (34) | (3) | (37) |
| Income tax expense (benefit) | 10 |  | 10 | (35) |  | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $1241 | $(1023) | $218 | $(3348) | $(953) | $(4301) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net (loss) income | $(5783) | $3273 | $(2510) | $(4552) | $1235 | $(3317) |
| Depreciation and amortization | 3218 | 576 | 3794 | 3611 | 772 | 4383 |
| Interest expense (income), net | 94 | 13 | 107 | (157) | (13) | (170) |
| Income tax expense | 6 |  | 6 | 36 |  | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $(2465) | $3862 | $1397 | $(1062) | $1994 | $932 |

---

**Reconciliation of EBITDA to Net Cash (Used in) Provided By Operating Activities**

**(amounts in thousands)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  | **Three Months Ended September 30,**  |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net cash used in operating activities | $(4042) | $(694) | $(4736) | $(3331) | $(900) | $(4231) |
| Changes in working capital and other items | 5459 | (271) | 5188 | 252 | (2) | 250 |
| Non-cash adjustments to net income (loss) | (176) | (58) | (234) | (269) | (51) | (320) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $1241 | $(1023) | $218 | $(3348) | $(953) | $(4301) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  |
|  | **2025 US** | **2025 CA** | **2025 Consol.** | **2024 US** | **2024 CA** | **2024 Consol.** |
| Net cash provided by (used in) operating activities | $4244 | $7647 | $11891 | $(33) | $3592 | $3559 |
| Changes in working capital and other items | (5877) | (3615) | (9492) | (26) | (1446) | (1472) |
| Non-cash adjustments to net (loss) income | (832) | (170) | (1002) | (1003) | (152) | (1155) |
| &nbsp;&nbsp;&nbsp;&nbsp;EBITDA | $(2465) | $3862 | $1397 | $(1062) | $1994 | $932 |

---

------

**Statements of Operations by operating segment for the three and nine months ended September 30, 2025.**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
|  | **USA Operations** | **Canada Operations** | **Consolidated** | **USA Operations** | **Canada Operations** | **Consolidated** |
| **Operating revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fee revenue | $14776 | $166 | $14942 | $25906 | $13030 | $38936 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable revenue | 7803 | 1 | 7804 | 9489 | 250 | 9739 |
|  | 22579 | 167 | 22746 | 35395 | 13280 | 48675 |
| **Operating costs:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee operating expenses | 11729 | 926 | 12655 | 23086 | 8130 | 31216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable operating expenses | 7803 | 1 | 7804 | 9489 | 250 | 9739 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 19532 | 927 | 20459 | 32575 | 8380 | 40955 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 1839 | 271 | 2110 | 5392 | 1043 | 6435 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1160 | 189 | 1349 | 3218 | 576 | 3794 |
|  | 22531 | 1387 | 23918 | 41185 | 9999 | 51184 |
| **Income (loss) from operations** | 48 | (1220) | (1172) | (5790) | 3281 | (2509) |
| **Other income (expense):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 49 | 10 | 59 | 75 | 23 | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (60) | (11) | (71) | (169) | (36) | (205) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 33 | 8 | 41 | 107 | 5 | 112 |
| **Income (loss) before income tax** | 70 | (1213) | (1143) | (5777) | 3273 | (2504) |
| **Income tax expense** | (10) |  | (10) | (6) |  | (6) |
| **Net income (loss)** | $60 | $(1213) | $(1153) | $(5783) | $3273 | $(2510) |
| **Other Comprehensive income (loss):** |  |  |  |  |  |  |
| &nbsp;&nbsp;Net unrealized (loss) income on foreign exchange rate translation | - | (71) | (71) | - | 376 | 376 |
| **Comprehensive income (loss)** | $60 | $(1284) | $(1224) | $(5783) | $3649 | $(2134) |
| **EBITDA** | $1241 | $(1023) | $218 | $(2465) | $3862 | $1397 |

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**Statements of Operations by operating segment for the three and nine months ended September 30, 2024.**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
|  | **USA Operations** | **Canada Operations** | **Consolidated** | **USA Operations** | **Canada Operations** | **Consolidated** |
| **Operating revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fee revenue | $4652 | $11 | $4663 | $31260 | $8467 | $39727 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reimbursable revenue | 9758 |  | 9758 | 18753 | 37 | 18790 |
|  | 14410 | 11 | 14421 | 50013 | 8504 | 58517 |
| **Operating costs:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fee operating expenses | 5652 | 741 | 6393 | 26193 | 5519 | 31712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursable operating expenses | 9758 |  | 9758 | 18753 | 37 | 18790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 15410 | 741 | 16151 | 44946 | 5556 | 50502 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 2405 | 225 | 2630 | 6416 | 931 | 7347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1144 | 244 | 1388 | 3611 | 772 | 4383 |
|  | 18959 | 1210 | 20169 | 54973 | 7259 | 62232 |
| **(Loss) income from operations** | (4549) | (1199) | (5748) | (4960) | 1245 | (3715) |
| **Other income (expense):** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 58 | 14 | 72 | 246 | 44 | 290 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (24) | (11) | (35) | (89) | (31) | (120) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 57 | 2 | 59 | 287 | (23) | 264 |
| **(Loss) income before income tax** | (4458) | (1194) | (5652) | (4516) | 1235 | (3281) |
| **Income tax benefit (expense)** | 35 |  | 35 | (36) |  | (36) |
| **Net (loss) income** | $(4423) | $(1194) | $(5617) | $(4552) | $1235 | $(3317) |
| **Other Comprehensive income (loss):** |  |  |  |  |  |  |
| &nbsp;&nbsp;Net unrealized income (loss) on foreign exchange rate translation |  | 29 | 29 |  | (241) | (241) |
| **Comprehensive (loss) income** | $(4423) | $(1165) | $(5588) | $(4552) | $994 | $(3558) |
| **EBITDA** | $(3348) | $(953) | $(4301) | $(1062) | $1994 | $932 |

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