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Supplemental Consolidated Financial Statement Information
12 Months Ended
Dec. 31, 2022
Supplemental Consolidated Financial Statement Information  
Supplemental Consolidated Financial Statement Information

5.           Supplemental Consolidated Financial Statement Information

Other Current Assets and Other Current Liabilities (in thousands)

Prepaid expenses and other current assets consist of the following at December 31, 2022 and 2021:

December 31, 

    

2022

    

2021

Contract assets

$

5,433

$

972

Prepaid expenses

2,252

1,101

Other assets

 

1,191

 

1,240

Other current assets

$

8,876

$

3,313

The Company did not have any specific account within other current liabilities that accounted for more than 5% of total current liabilities at December 31, 2022. The Company had accrued self-insurance reserves of approximately $599 and other accrued expenses and current liabilities of $739 at December 31, 2021.

Related Party Transactions (in thousands)

As of December 31, 2022, the Company had accounts receivable due from related parties of $121. This receivable is due from Breckenridge Geophysical, LLC, which is a wholly owned subsidiary of Wilks Brothers, LLC, the holder of approximately 74.46% of the Company’s outstanding common stock. This receivable is primarily related to rental of seismic equipment to Breckenridge. For the year ended December 31, 2022, the Company received approximately $2,200 of related party revenue from Breckenridge. All outstanding receivables from Breckenridge have been received as of the filing of this 10-K. During 2021, the Company did not have any related party revenue.

Disaggregated Revenues (in thousands)

The Company has one line of business, acquiring and processing seismic data in North America. Our chief operating decision maker (President and CEO) makes operating decisions and assesses performance based on the Company as a whole. Accordingly, the Company is considered to be in a single reportable segment. The following table presents the Company’s operating revenues disaggregated by geographic region:

Year Ended December 31, 

2022

2021

Operating Revenues

United States

 

$

22,202

 

$

17,772

Canada

 

15,278

 

6,923

Total

$

37,480

$

24,695

Deferred Costs (in thousands)

Deferred costs were $972 and $1,847 at January 1, 2022 and 2021, respectively. The Company’s prepaid expenses and other current assets at December 31, 2022 and 2021 included deferred costs incurred to fulfill contracts with customers of $5,433 and $972, respectively.

Deferred costs at December 31, 2022 compared to January 1, 2022 increased primarily as a result of new projects for clients with significant deferred fulfillment costs at December 31, 2022. Deferred costs at December 31, 2021 compared to January 1, 2021 decreased primarily as a result of the completion of several projects for clients with significant deferred fulfillment costs at the beginning of 2021.

The amount of total deferred costs amortized for the years ended December 31, 2022 and 2021 was $6,824 and $6,563, respectively. There were no material impairment losses incurred during these periods.

Deferred Revenue (in thousands)

Deferred revenue was $1,344 and $1,779 at January 1, 2022 and 2021, respectively. The Company’s deferred revenue at December 31, 2022 and 2021 was $7,199 and $1,344, respectively.

Deferred revenue at December 31, 2022 compared to January 1, 2022 increased primarily as a result of new projects for clients with large third party reimbursables where data has not yet been recorded. Deferred revenue at December 31, 2021 compared to January 1, 2021 decreased primarily as a result of completing multiple large projects for clients throughout 2021.

Revenue recognized for the year ended December 31, 2022 that was included in the contract liability balance at the beginning of 2022 was $1,092. Revenue recognized for the year ended December 31, 2021 that was included in the contract liability balance at the beginning of 2021 was $1,779. Deferred revenue not recognized during 2022 relates to projects that have not yet started or were cancelled.