GEOS Geospace Technologies Corporation

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share amounts)

(unaudited)

 

 

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

 

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

 

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

 

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

(unaudited)

 

 

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

 

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE three months ended December 31, 2024 and 2023

(in thousands, except share amounts)

(unaudited)

 

 

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

 

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

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

 

 

GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

1. Significant Accounting Policies

 

Basis of Presentation

 

The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at  September 30, 2024, was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at  December 31, 2024 and the consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for the three months ended December 31, 2024 and 2023 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All significant intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2024, are not necessarily indicative of the operating results for a full year or of future operations.

 

Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2024.

 

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 December 31, 2024 and September 30, 2024, cash and cash equivalents included $0.9 million and $1.1 million, respectively, held by the Company’s foreign subsidiaries and branch offices.

 

Concentration of Credit Risk

 

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 financial conditions of its customers.  Receivables are charged off against the allowance whenever it is probable that the balance will not be recoverable.

 

The Company had trade accounts and financing receivables from one customer of $22.5 million at December 31, 2024.  During the three months ended December 31, 2024 and 2023, the Company recognized revenue from this customer of $18.7 million and $31.7 million, respectively.

 

Impairment of Long-lived Assets

 

The Company's long-lived assets are reviewed for impairment whenever an event or circumstance indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of the 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.  During the quarter ended December 31, 2024, no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable.

 

Recently Issued Accounting Pronouncements

 

In November 2023, 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 is currently evaluating the provisions of this guidance and the impact on its consolidated financial statements. 

 

In December 2023, the FASB issued guidance improvements on 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 consolidation financial statements.

 

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 asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.  Early adoption is permitted. The Company is currently evaluating the provisions of this guidance and the impact on its consolidated financial statements. 

 

All other new accounting pronouncements that have been issued, but not yet effective, are currently being evaluated and at this time are not expected to have a material impact on the Company's financial position or results of operations.

 

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2. Revenue Recognition

 

In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when performance 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 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. Rental revenue is recognized as earned over the rental period if collectability of the rent is reasonably assured. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to one year. The Company has determined that ASC 606 does not apply to rental contracts, which are within the scope of ASC Topic 842, Leases.

 

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.

 

At December 31, 2024 and September 30, 2024, the Company had no deferred contract liabilities and no deferred contract costs.  During the three months ended December 31, 2024, no revenue was recognized from deferred contract liabilities and no cost of revenue was recognized from deferred contract costs.  During the three months ended December 31, 2023, revenue of $45,000 was recognized from deferred contract liabilities and no cost of revenue was recorded from deferred contract costs.  At December 31, 2024, all contracts had an original expected duration of one year or less.  At December 31, 2024 and October 1 2024, the Company had accounts receivable from contracts of $12.0 million and $13.4 million, respectively. At December 31, 2023 and October 1, 2023, the Company had accounts receivable from contracts of $37.6 million and $10.9 million, respectively.

 

For the three months ended December 31, 2024, no revenue recognized from contracts with customers satisfied over-time.  For the three months ended December 31, 2023, revenue from contracts with customers satisfied over-time was $45,000, which was from the Company's Intelligent Industrial segment.  All other revenue from contracts with customers was recognized at a point-in time.  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.  Therefore, the table excludes all revenue earned from rental contracts.

 

		Three Months Ended
		December 31, 2024				December 31, 2023
Smart Water		$	7,288			$	4,234
Energy Solutions			19,826				33,706
Intelligent Industrial			5,531				5,774
Total		$	32,645			$	43,714

 

See Note 12 for more information on the Company’s operating business segments.

 

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

 

		Three Months Ended
		December 31, 2024				December 31, 2023
Asia (including Russian Federation)		$	18,057			$	32,216
Canada			369				1,226
Europe			1,398				1,378
Mexico			1,281				166
United States			11,423				8,418
Other			117				310
Total		$	32,645			$	43,714

 

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.

 

3. Short-term Investments

 

The Company classifies its short-term investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity. 

 

The Company’s short-term investments were composed of the following (in thousands):

 

		As of December 31, 2024
		Amortized Cost				Unrealized Gains				Unrealized Losses				Estimated Fair Value
Short-term investments:
Corporate bonds		$	16,899			$	7			$	—			$	16,906
U.S. treasury securities and securities of U.S. government-sponsored agency			3,742				7				—				3,749
Total		$	20,641			$	14			$	—			$	20,655

  

		As of September 30, 2024
		Amortized Cost				Unrealized Gains				Unrealized Losses				Estimated Fair Value
Short-term investments:
Corporate bonds		$	21,814			$	35			$	—			$	21,849
U.S. treasury securities and securities of U.S. government-sponsored agency			8,356				22				—				8,378
Total		$	30,170			$	57			$	—			$	30,227

 

The Company had no securities in a material unrealized loss position at  December 31, 2024 and  September 30, 2024 and does not believe the unrealized losses associated with these 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 $10,000 was realized during the three months ended December 31, 2024 from the sale of short-term investments. No gains or losses were recognized during the three months ended December 31, 2023 from the sale of short-term investments.

 

4. 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 of these financial instruments are deemed to approximate their fair value on the respective balance sheet dates.   The Company measures its short-term investments at fair value on a recurring basis.

 

The following tables present the fair value of the Company’s short-term investments, note receivable on sale of subsidiary and Emerging Markets asset group intangible assets by valuation hierarchy and input (in thousands):

 

		As of December 31, 2024
		(Level 1)				(Level 2)				(Level 3)				Totals
Short-term investments:
Corporate bonds		$	—			$	16,906			$	—			$	16,906
U.S. treasury securities and securities of U.S. government-sponsored agency			—				3,749				—				3,749
Total		$	—			$	20,655			$	—			$	20,655

  

		As of September 30, 2024
		(Level 1)				(Level 2)				(Level 3)				Totals
Recurring:
Short-term investments:
Corporate bonds		$	—			$	21,849			$	—			$	21,849
U.S. treasury securities and securities of U.S. government-sponsored agency			—				8,378				—				8,378
Total		$	—			$	30,227			$	—			$	30,227
Nonrecurring:
Note receivable on sale of subsidiary		$	—			$	—			$	2,600			$	2,600
Emerging Markets asset group intangible assets			—				—				—				—
Total		$	—			$	—			$	2,600			$	2,600

     

Assets and liabilities Measured on a Nonrecurring basis

 

In August 2024, the Company performed a fair value analysis on its $3.5 million promissory note obtained in connection with its subsidiary sale as of the transaction date.  The measurements utilized to determine the implied fair value of the note receivable obtained 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 5 for more information.

 

At September 30, 2024, the Company performed a recoverability assessment on its long-lived assets of it Emerging Markets asset group in which its carrying value was compared to the estimated undiscounted cash flows over the remaining useful life of the asset group's primarily asset, 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). 

 

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5. Trade Accounts and Financing Receivables

 

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

 

		December 31, 2024				September 30, 2024
Trade accounts receivable		$	19,510			$	16,151
Allowance for credit losses			(4	)			(4	)
Total			19,506				16,147
Less current portion			(19,506	)			(14,637	)
Non-current trade accounts receivable		$	—			$	1,510

 

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

 

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

 

		Three Months Ended
		December 31, 2024				December 31, 2023
Allowance for credit losses:
Beginning of period			4				125
Provision for credit losses			—				43
Recoveries			—				(72	)
Write-offs			—				(7	)
Currency translation			—				3
End of period		$	4			$	92

 

 

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.  Future minimum payments required under the lease at December 31, 2024, were $16.7 including $0.6 million of unearned income.  Interest income of $0.1 million was recognized for the three months ended December 31, 2024.  The 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.  Pursuant to an amendment in the first quarter of fiscal year 2025, the maturity of the note was extended from December 2025 to June 2026.  The note bears interest at 9.5% per annum. 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 bears interest at 5% per annum and is for a 10-year term.  Principal and interest payments of $37,000 are due monthly.  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 is being recognized under the effective interest method.

 

Credit quality indicators used for the financing receivables consisted of historical collection experience, internal credit risk grades and collateral.  The Company determined 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.

 

6. Inventories

                                                                                                                                                                                                                                                                              

Inventories consist of the following (in thousands):  

 

		December 31, 2024				September 30, 2024
Finished goods		$	18,692			$	18,099
Work in process			5,506				3,626
Raw materials			31,975				30,941
Obsolescence reserve (net realizable value adjustment)			(9,510	)			(8,413	)
Total			46,663				44,253
Less current portion			27,921				26,222
Non-current portion		$	18,742			$	18,031

 

Inventory obsolescence expense for the three months ended December 31, 2024 and 2023, was $506,000 and $20,000, respectively.  Raw materials include semi-finished goods and component parts that totaled approximately $10.6 million and $8.6 million at December 31, 2024 and September 30, 2024, respectively. 

 

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7. Rental 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 for which the Company acts as lessor, are classified as operating leases, except for one sales-type lease. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition systems.

 

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 and limits future rental revenue recognition to cash received. As of December 31, 2024, the Company’s trade accounts receivable included lease receivables of $4.7 million.

 

Rental revenue related to leased equipment for the three months ended December 31, 2024 and 2023 was $4.5 million and $6.2 million, respectively.

 

Future minimum lease obligations due from the Company’s leasing customers on operating leases executed as of  December 31, 2024, were $0.8 million, all of which is expected to be due within the next 12 months.

 

Rental equipment consisted of the following (in thousands):

 

		December 31, 2024				September 30, 2024
Rental equipment, primarily wireless recording equipment		$	49,220			$	63,111
Accumulated depreciation			(36,740	)			(48,925	)
		$	12,480			$	14,186

 

 

8. Long-Term Debt

 

On July 26, 2023, the Company entered into a credit agreement (“the Agreement”) with Woodforest National Bank, as sole lender.  The Agreement refinanced the Company's credit agreement dated May 6, 2022, with Amerisource Funding, Inc., as administrative agent and as a lender, and Woodforest National Bank, as a lender. The Agreement provides a revolving credit facility with a maximum availability of $15 million.  Availability under the Agreement is determined based upon a borrowing base comprised of certain of the Company’s domestic assets which include (i) 80% of eligible accounts, plus (ii) 90% of eligible foreign insured accounts, plus (iii) 25% of eligible inventory plus (iv) 50% of the orderly liquidation value of eligible equipment, in each case subject to certain limitations and adjustments.  Interest shall accrue on outstanding borrowings at a rate equal to Term SOFR (Secured Overnight Financing Rate) plus a margin equal to 3.25% per annum (7.75% at December 31, 2024).  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 a minimum (i) consolidated tangible net worth of $100 million, (ii) liquidity of $5 million, and (iii) current ratio no less than 2.00 to 1.00, in each case tested quarterly. The Agreement also requires the Company to maintain a springing minimum interest coverage ratio of 1.50 to 1.00, tested quarterly whenever there is an outstanding balance on the revolving credit facility. The Agreement expires in July 2025.  At December 31, 2024, the Company's borrowing availability under the Agreement was $12.1 million after consideration of a $0.1 million outstanding letter of credit.  At December 31, 2024, the Company was in compliance with all covenants under the Agreement. The Company had no borrowings outstanding under the Agreement at December 31, 2024, and September 30, 2024.

 

 

9. Stock-Based Compensation

 

During the three months ended December 31, 2024, the Company issued 143,500 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended. The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU was $13.29 per unit. The grant date fair value of the RSUs was $1.9 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for the 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. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting.  As of December 31, 2024, there were 359,215 RSUs outstanding.

 

For the three months ended December 31, 2024 and 2023, stock-based compensation expense was $0.3 million and $0.4 million, respectively.  As of December 31, 2024, the Company had unrecognized compensation expense of $3.4 million relating to RSUs that is expected to be recognized over the next four years.

 

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10. Earnings Per Common Share

 

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

 

		Three Months Ended
		December 31, 2024				December 31, 2023
Net income		$	8,376			$	12,679
Weighted average number of common share equivalents:
Common shares used in basic earnings per share			12,753,378				13,251,360
Common share equivalents outstanding related to RSUs			124,009				209,156
Total weighted average common shares and common share equivalents used in diluted earnings per share			12,877,387				13,460,516
Earnings per share:
Basic		$	0.66			$	0.96
Diluted		$	0.65			$	0.94

 

           For the calculation of diluted earnings per share for the three months ended December 31, 2024 and 2023, there were 235,206 and 212,217 non-vested RSUs, respectively, excluded from the calculation of weighted average shares outstanding since their impact on diluted earnings per share were antidilutive.

 

11. Commitments and Contingencies

 

Contingent Compensation Costs

 

In connection with the acquisition of Aquana, LLC (“Aquana”) in July 2021, the Company is subject to additional contingent cash payments to the former members of Aquana over a six-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 four years of the six 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. 

 

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.

 

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12. Segment 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 encompass' 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, designs seismic products targeted at the border and perimeter security markets, imaging products, as well as providing contract manufacturing services. The change methodology for allocating manufacturing costs affected each business segment's operating income (loss) but had no effect on consolidated operating income.  

 

The following table summarizes the Company’s segment information (in thousands).  Segment information for the three months ended December 31, 2024 and 2023, has been recast for comparability.

 

		Three Months Ended
		December 31, 2024				December 31, 2023
Revenue:
Smart Water		$	7,288			$	4,234
Energy Solutions			24,282				39,911
Intelligent Industrial			5,577				5,813
Corporate			76				74
Total		$	37,223			$	50,032
Income (loss) from operations:
Smart Water		$	370			$	1,095
Energy Solutions			13,282				15,068
Intelligent Industrial			(940	)			(191	)
Corporate			(4,877	)			(3,135	)
Total		$	7,835			$	12,837

 

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

 

13. Income Taxes

 

Consolidated income tax expense for the each of the three months ended December 31, 2024 and 2023, was $0.1 million.  The primary difference between the Company's effective tax rate and the statutory rate is adjustments to the valuation allowance against deferred tax assets.

       

Item 2. 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 Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended September 30, 2024.        

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q and the documents incorporated by reference herein 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 (the “Exchange Act”). These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “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 timing, 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 permanent reservoir monitoring systems, future demand for OBX rental equipment, the adoption of Quantum's SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our GCL 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” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024, as well as other cautionary language in such Annual Report and this Quarterly Report on Form 10-Q, 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 the Quantum and OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels,  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, credit losses associated with customer accounts, inability to collect on financing receivables, lack of further orders for our OBX rental equipment, failure of our Quantum products to be adopted by the border and security perimeter 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 Quarterly Report on Form 10-Q 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.

 

Available Information

 

We file annual, quarterly and current 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 on our website at www.geospace.com. From time to time, we may post investor presentations on our website under the “Investor Relations” tab. Please note that information contained on our website, whether currently posted or posted in the future, is not a part of this Quarterly Report on Form 10-Q or the documents incorporated by reference in this Quarterly Report on Form 10-Q.

 

 

Overview

 

Unless otherwise specified, the discussion in this Quarterly Report on Form 10-Q refers to Geospace Technologies Corporation and its subsidiaries. We design and manufacture sophisticated technology solutions for applications in energy exploration, smart water management as well as industrial and Internet of Things. Our seismic equipment and services are marketed to the energy exploration 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 water meter connector cables, imaging equipment, remote shutoff water valves and Internet of Things ("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. Our business diversification strategy has centered largely on translating expertise in ruggedized engineering and technology manufacturing into expanded customer markets.

 

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: 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.  

 

Products and Product Development

 

Smart Water

 

Our Smart Water business segment comprises our market dominant water meter connector cable series known as Hydroconn®, and our Aquana branded remote shut-off water valves and cloud-based IoT Platform. In municipal and utility applications, our smart water products support the global smart meter connectivity water utility market. These products provide our customers with highly reliable automated meter-reading and automated meter infrastructure with our robust water-proof connectors. Our highly-ruggedized outdoor valves include the AquaFlex™ and AquaFlow™ remote shut off valves.

 

In commercial applications for multi-family and real estate property management, our remote sensing water valves offer asset managers the ability to gather accurate usage information, implement occupancy-based billing and submetering as well as guard against costly leak and burst events. The AquaSense remote disconnect valve and AquaControl smart water IoT platform allow 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 control and monitor water use remotely, discontinue or limit service without placing its 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, marine streamer retrieval and steering devices and various other seismic products.

 

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 allows our customers to operate more effectively and efficiently because of its reduced environmental impact, lower weight, ease of operation,  and which require less maintenance.

 

We have also developed a marine-based wireless seismic data acquisition system called the OBX, and recently released Mariner® and Mariner Deep™.  Similar to our land-based wireless systems, these marine wireless systems may be deployed in virtually unlimited channel configurations and do not require interconnecting cables between each station. Through December 31, 2024, we have sold 35,000 OBX stations and we currently have 13,000 OBX stations in our rental fleet.  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. Through December 31, 2024, we have sold 7,600 Mariner® nodes.

 

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 are in the process of responding to a large-scale seabed PRM tender from a major oil and gas producer.  The project is expected to be awarded in the third quarter of fiscal year 2025.  We have also entered into a contract for two Front-End Engineering and Design studies with this producer which is expected to be completed in the fourth quarter of fiscal year 2025.  We have not received any orders for a large-scale seabed PRM system since 2012.

 

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 a 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. 

 

Lastly, our SADAR® technology provides passive seismic real-time monitoring in emerging energy applications such as Carbon Capture and Storage (CCS) and geothermal energy. Our customers include various agencies of the U.S. government including the Department of Defense, Department of Energy, Department of Homeland Security and other agencies as well as energy companies needing real-time monitoring of seismic data.

 

 

Intelligent Industrial

 

Our Intelligent Industrial segment is comprised of diverse software and hardware solutions leveraging decades of sensor technologies for use by the U.S. Federal government, specialized contractors and academia. This segment also includes specialized contract manufacturing in the United States along with solutions for industrial screen printers.

 

For more than a decade our sensor products have been used for national security and homeland defense applications. More recently our SADAR® technology, has been used for border and perimeter security surveillance, cross-border tunneling detection and other products targeted at movement monitoring, intrusion detection and situational awareness. Our seismic sensors provide unique high definition, low frequency sensing that allows for vibration monitoring in industrial machinery, mine safety and earthquake detection.

 

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.

 

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. We are certified to the latest revisions of ISO9001, 14001, 13485, and AS9100 standards and are committed to quality manufacturing, document and process control, qualification, non-conformance handling as well as continuous improvement.  We maintain environmentally sound working conditions in all of our facilities.

 

 

 

Consolidated Results of Operations

 

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

 

		Three Months Ended
		December 31, 2024				December 31, 2023
Smart Water
Product revenue		$	7,288			$	4,234
Income from operations			370				1,095
Energy Solutions
Product revenue			19,826				33,706
Rental revenue			4,456				6,205
Total revenue			24,282				39,911
Income from operations			13,282				15,068
Intelligent Industrial
Product revenue			5,531				5,774
Rental revenue			46				39
Total revenue			5,577				5,813
Loss from operations			(940	)			(191	)
Corporate
Rental revenue			76				74
Loss from operations			(4,877	)			(3,135	)
Consolidated Totals
Product revenue			32,645				43,714
Rental revenue			4,578				6,318
Total revenue			37,223				50,032
Income from operations			7,835				12,837

 

Business 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 OBX marine wireless nodes to purchases of the equipment in fiscal year 2024, of which trend has continued into fiscal year 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, for we expect the market is saturable and future rental fleet use will come from our customer’s need to temporarily expand their nodal fleet. We expect our Energy Solutions segment to provide the majority of our revenue for years to come, but in diminishing portion to our other segments.  Demand for our seismic products has been, and will likely continue to be, vulnerable to downturns in the economy and the oil and gas industry in general.

 

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

 

 

Three months ended December 31, 2024, compared to the three months ended December 31, 2023

 

Consolidated revenue for the three months ended December 31, 2024, was $37.2 million, a decrease of $12.8 million, or 25.6%, from the corresponding period of the prior fiscal year.  The decrease was primarily due to lower revenue from our Energy Solutions segment.  Revenue for the three months ended December 31, 2024, included a $17 million OBX marine wireless product sale structured as a sales-type lease.  However, in comparison, revenue for the first quarter of the prior year included a $30 million sale of our Mariner™ shallow water ocean bottom nodes.  The decrease in revenue from our Energy Solutions segment was partially offset by higher revenue generated from our Smart Water segment attributable to an increase in demand for our water meter products.  

 

Consolidated gross profit for the three months ended December 31, 2024, was $20.1 million, a decrease of $2.1 million, or 9.4%, from the corresponding period of the prior fiscal year. The decrease in gross profit was primarily due to a decrease in wireless product revenue from our Energy Solutions segment.  This decrease was partially offset by a high gross profit margin on our $16 million wireless product sale in the first quarter of fiscal year 2025 and the increase in revenue from our Smart Water segment.

 

Consolidated operating expenses for the three months ended December 31, 2024, were $12.3 million, an increase of $2.9 million, or 31.0%, from the corresponding period of the prior fiscal year. The increase was due to higher personnel costs, including severance costs, higher professional fees and research and development project expenditures.

 

Consolidated other income was $0.6 million for the three months ended December 31, 2024, compared to a loss of $0.1 million from the corresponding period of the prior fiscal year.  The increase for the three months ended December 31, 2024 was principally due to higher interest income attributable to its short-term investments and financing receivables.

 

Segment Results of Operations

 

Smart Water

 

Revenue

 

Revenue from our Smart Water segment for the three months ended December 31, 2024, increased $3.1 million, or 72.1%, from the corresponding period of the prior fiscal year. The increase for the three months ended December 31, 2024, was primarily due to an increase in demand for our Hydroconn® cable and connector products.

 

Operating Income

 

Operating income from our Smart Water segment for the three months ended December 31, 2024, was $0.4 million, a decrease of $0.7 million, or 66.2%, from the corresponding period of the prior fiscal year. The decrease for the three months ended December 31, 2024, was primarily a result of the change in composition of our business segments.  This decrease was largely offset by the increase in revenue.

 

Energy Solutions

 

Revenue

 

Revenue from our Energy Solutions segment for the three months ended December 31, 2024, decreased $15.6 million, or 39.2%, from the corresponding period of the prior fiscal year.  The components of this decrease were as follows:

 

●

Product Revenue – For the three months ended December 31, 2024, product revenue decreased $13.9 million, or 41.2%, from the corresponding period of the prior fiscal year.  The decrease was primarily due to a decrease in demand for our wireless products.  Revenue for the three months ended December 31, 2024 included a $17 million OBX marine wireless product sale structured as a sales-type lease.  However, in comparison, revenue for the first quarter of the prior year included a $30 million sale of our Mariner™ shallow water ocean bottom nodes.

 

●

Rental Revenue – For the three months ended December 31, 2024, rental revenue from our wireless exploration products decreased $1.7 million, or 28.2%, from the corresponding period of the prior fiscal year.  The decrease was primarily due lower utilization of our OBX rental fleet.

 

Operating Income

 

Operating income associated with our Energy Solutions segment for the three months ended December 31, 2024, was $13.3 million, a decrease of $1.8 million from the corresponding period of the prior fiscal year. The decrease in operating income for the three months ended December 31, 2024, was primarily due to a decrease in wireless product revenue.  This decrease was largely offset by (i) a high profit margin on our $17 million product sale in the first quarter of fiscal year 2025 and (ii) the change in the composition of our business segments.

 

 

Intelligent Industrial

 

Revenue

 

Revenue from our Intelligent Industrial segment for three months ended December 31, 2024, decreased $0.2 million, or 4.1%, from the corresponding period of the prior fiscal year.  The decrease in revenue for the three months ended December 31, 2024, was primarily due to lower demand for our imaging products.  The decrease was partially offset by an increase in demand for our sensor products.

 

Operating Loss

 

Operating loss from our Intelligent Industrial segment for the three months ended December 31, 2024, was $0.9 million, an increase of $0.7 million from the corresponding period of the prior fiscal year. The increase in operating loss for the three months ended December 31, 2024, was primarily due (i) the decrease in revenue and (ii) the change in composition of our business segments.

 

Liquidity and Capital Resources

 

At December 31, 2024, we had $22.1 million in cash and cash equivalents and short-term investments.  For the three months ended December 31, 2024, we used $11.5 million of cash from operating activities.  Uses of cash included a (i) $3.0 million increase in inventories for the strategic purchase of long lead-time components needed for use in wireless products, valves and contract manufacturing, (ii) $3.6 million increase in trade accounts receivables due to timing of collections from customers and (iii) $0.7 million decrease in trade accounts payable due to timing of payments to our suppliers.  Uses of cash were partially off our net income of $8.4 million and non-cash charges of $3.5 million resulting from deferred income taxes, depreciation, amortization, accretion, inventory obsolescence, stock-based compensation and provision for recovery of credit losses. 

 

For the three months ended December 31, 2024, we generated cash of $6.3 million in investing activities. Sources of cash consisted of (i) $9.7 million from the sale of short-term investments and (ii) $0.1 million of proceeds from the sale of rental equipment.  These sources of cash were partially offset by (i) $3.2 million for additions to our property, plant and equipment and (ii) $0.4 million for additions to our equipment rental fleet. We expect fiscal year 2025 cash investments in property, plant and equipment will be approximately $6 million. We expect fiscal year 2025 cash investments into our rental fleet will be limited unless we experience an expansion of customer demand of our rental fleet.  Our capital expenditures are expected to be funded from our cash on hand, short-term investments, internal cash flows, cash flows from our rental contracts or, if necessary, borrowings under our new credit agreement.

 

For the three months ended December 31, 2024, we used million from financing activities for the purchase of treasury stock pursuant to a stock buy-back program authorized by our board of directors.  The program authorizes us to repurchase up to $7 million of our common stock in open market transactions.  At December 31, 2024, $0.4 million of our common stock remains available for repurchases under the program.

 

 

On July 26, 2023, we entered into a credit agreement (“the Agreement”) with Woodforest National Bank ("Woodforest"), as sole lender.  The Agreement refinanced our credit agreement dated May 6, 2022, with Amerisource Funding, Inc., as administrative agent and as a lender, and Woodforest, as a lender.  The Agreement provides a revolving credit facility with a maximum availability of $15 million.  Availability under the Agreement is determined based upon a borrowing base comprised of certain of our domestic assets which include (i) 80% of eligible accounts receivable, plus (ii) 90% of eligible foreign insured accounts, plus (iii) 25% of eligible inventory plus (iv) 50% of the orderly liquidation value of eligible equipment, in each case subject to certain limitations and adjustments.  Interest shall accrue on outstanding borrowings at a rate equal to Term SOFR (Secured Overnight Financing Rate) plus a margin equal to 3.25% per annum (7.75% at December 31, 2024).  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 a minimum (i) consolidated tangible net worth of $100 million, (ii) liquidity of $5 million, and (iii) current ratio no less than 2.00 to 1.00, in each case tested quarterly. The Agreement also requires us to maintain a springing minimum interest coverage ratio of 1.50 to 1.00, tested quarterly whenever there is an outstanding balance on the revolving credit facility.  The Agreement expires in July 2025.  We intend to begin negotiations with Woodforest for an extension in the second quarter of fiscal year 2025. 

 

At December 31, 2024 we had no outstanding borrowings under the Agreement and our borrowing base availability under the Agreement was $12.1 million after consideration of a $0.1 million outstanding letter of credit. We were in compliance with all covenants 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, cash equivalents and short-term investments was $22.1 million at December 31, 2024, which included $0.9 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 2025, 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 and short-term investments 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.

 

Contractual Obligations

 

Contingent Compensation Costs

 

In connection with the acquisition of Aquana in July 2021, we are subject to additional contingent cash payments to the former members of Aquana over a six-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 four years of the six year earn-out period for any of Aquana’s former members to be eligible to any earn-out payments. In accordance with ASC 805, Business Combinations, 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.

 

See Note 11 to our consolidated financial statements in this Quarterly Report on Form 10-Q for more information on our contractual contingencies.

 

Critical Accounting Estimates

 

During the three months ended December 31, 2024, there has been no material change to our critical accounting estimates discussed in Item 7 of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

 

Recent Accounting Pronouncements

 

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

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item, in accordance with Item 305(e) of Regulation S-K.

 

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedures

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified under the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Notwithstanding the foregoing, there can be no assurance that our disclosure controls and procedures will detect or uncover all failures of persons within our Company and consolidated subsidiaries to report material information otherwise required to be set forth in our reports.

 

In connection with the preparation of this Quarterly Report on Form 10-Q, we carried out an evaluation under the supervision and with the participation of our management, including the CEO and CFO, as of December 31, 2024, of the effectiveness of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on that evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2024.

 

Changes in Internal Control over Financial Reporting

 

There were no 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 December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

Item 1A.  Risk Factors

 

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

 

Approximately half of our revenue is 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 transition to a new presidential administration in the United States 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.  Moreover, the change in presidential administration, as well as a transition of control in the U.S. House of Representatives and U.S. Senate, creates regulatory uncertainty and it remains unclear as to the tariff related impact the future geopolitical climate will bring to our operations.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

The following table provides information with respect to purchases of common stock of the Company made during the three months ended December 31, 2024:

 

Period		Total Number of Shares Purchased (1)				Average Price Paid per Share				Total Number of Shares Purchased as Part of Publicly Announced Program				Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1)
October 1, 2024 through October 31, 2024			—			$	—				—			$	615,000
November 1, 2024 through November 30, 2024			—				—				—				615,000
December 1, 2024 through December 31, 2024			19,994				9.98				19,994				418,000

 

(1) On May 9, 2024, Company's Board of Directors (the "Board') authorized a stock repurchase program (the "Program") under which the Company may repurchase up to $5 million of its outstanding stock.  On August 8, 2024, the Board approved an extension to the Program increasing the dollar amount of shares allowed to be purchased to $7 million.  Under the Program, the Company may purchase shares of common stock on a discretionary basis from time to time through open market transactions through block trades, in privately negotiated transactions and pursuant to any trading plan that may be adopted by the Company’s management in accordance with Rule 10b5-1 of the Exchange Act, or otherwise. The timing and number of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The Program has no time limit, does not obligate the Company to acquire a specified number of shares and may be modified, suspended or discontinued at any time at the Company’s discretion.  The repurchase plan will be funded using existing cash or future cash flow.

 

Item 6. Exhibits

 

The following exhibits are filed with this Report on Form 10-Q or are incorporated by reference

 

10.1*		Employment Termination Agreement dated January 1, 2025 between the Company and Walter R. Wheeler.
3.1		Amended and Restated Certificate of Formation of Geospace Technologies Corporation (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, filed May 8, 2015).
3.2		Amended and Restated Bylaws of Geospace Technologies Corporation (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K filed August 8, 2019).
31.1*		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities and Exchange Act of 1934.
31.2*		Certification of the Chief Financial Officer pursuant Rule 13a-14(a) under the Securities and Exchange Act of 1934.
32.1**		Certification of the Chief Executive Officer pursuant 18 U.S.C. Section 1350.
32.2**		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101*		The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Consolidated Balance Sheets at December 31, 2024 and September 30, 2024 , (ii) the Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023, (iii) the Consolidated Statements of Comprehensive Income for the three months ended December 31, 2024 and 2023, (iv) the Consolidated Statements of Stockholders’ Equity for the three months ended December 31, 2024 and 2023, (v) the Consolidated Statements of Cash Flows for the three months ended December 31, 2024 and 2023 and (vi) Notes to Consolidated Financial Statements.
104*		The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 formatted in Inline XBRL and contained in Exhibit 101.

 

* Filed with this Quarterly Report on Form 10-Q

** Furnished with this Quarterly Report on Form 10-Q

 

 

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 thereunto duly authorized.

 

GEOSPACE TECHNOLOGIES CORPORATION

 

Date:		February 6, 2025	By:		/s/ Richard J. Kelley
					Richard J. Kelley, President
					and Chief Executive Officer
					(duly authorized officer)

 

Date:		February 6, 2025	By:		/s/ Robert L. Curda
					Robert L. Curda, Vice President,
					Chief Financial Officer and Secretary
					(principal financial officer)

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, Richard J. Kelley, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q 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:

 

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;

 

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;

 

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

 

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 the registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

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.

 

February 6, 2025
	/s/ Richard J. Kelley
	Name:	Richard J. Kelley
	Title:	President and Chief Executive Officer

 

Exhibit 31.2

 

CERTIFICATIONS

 

I, Robert L. Curda, certify that:

 

1.	I have reviewed this quarterly report on Form 10-Q 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:

 

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;

 

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;

 

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

 

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 the registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

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.

 

February 6, 2025
	/s/ Robert L. Curda
	Name:	Robert L. Curda
	Title:	Vice President, Chief Financial Officer & Secretary

 

Exhibit 32.1

 

Informational Addendum to Report on Form 10-Q

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

 

Not Filed Pursuant to the Securities Exchange Act of 1934

 

The undersigned President and Chief 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-Q, the undersigned hereby certifies that this Report on Form 10-Q 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-Q fairly presents, in all material respects, the financial condition and results of operations of Geospace Technologies Corporation.

 

	/s/ Richard J. Kelley
	Name:	Richard J. Kelley
	Title:	President and Chief Executive Officer
	February 6, 2025

 

Exhibit 32.2

 

Informational Addendum to Report on Form 10-Q

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

 

Not Filed Pursuant to the Securities Exchange Act of 1934

 

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-Q, the undersigned hereby certifies that this Report on Form 10-Q 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-Q fairly presents, in all material respects, the financial condition and results of operations of Geospace Technologies Corporation.

 

	/s/ Robert L. Curda
	Name:	Robert L. Curda
	Title:	Vice President, Chief Financial Officer & Secretary
	February 6, 2025

 

 

 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Exhibit 10.1

 

EMPLOYMENT TERMINATION AGREEMENT

 

This Employment Termination Agreement (this “Agreement”) is executed as of December 31^st 2024, and effective January 1, 2025 (the “Effective Date”), between Geospace Technologies Corporation (the “Company”) and Walter R. Wheeler (“Mr. Wheeler”). The Company and Mr. Wheeler are sometimes referred to herein individually as a “party” and collectively as the “parties.”

 

WHEREAS, Mr. Wheeler’s full-time employment with the Company, including as Chief Executive Officer of the Company, shall terminate effective at the close of business on December 31, 2024; and

 

WHEREAS, the Company desires to protect and preserve its confidential information, trade secrets, and business practices from revelation to any other person including but not limited to existing or potential competitors; and

 

WHEREAS, Mr. Wheeler agrees to hold such information in strict confidence and in accordance with the terms and conditions contained in this Agreement;

 

NOW, THEREFORE, for valuable consideration given and received, the receipt and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound, do hereby agree as follows:

 

I.         TERMINATION COMPENSATION.

 

Section 1.1         Termination Payment. In conjunction with Mr. Wheeler’s termination, the Company agrees to pay Mr. Wheeler an amount equal to his annual cash salary for 2024 as recorded in the Company’s payroll records. This amount shall be paid six-months after the date of his termination on July 1, 2025. Such payment shall be subject to “claw back” and repayment in full or in part to the Company should Mr. Wheeler breach any term or condition contained in this Agreement or any term or condition of any other agreement between Mr. Wheeler and the Company.

 

Section 1.2         Potential Bonus Payment. Given the timing of Mr. Wheeler’s termination of employment with the Company and the fact that he will be eligible to receive a bonus under the Company’s short-term bonus program based on the Company’s performance during calendar year 2024, Mr. Wheeler acknowledges that there will be no additional bonus due with respect to calendar year 2025.

 

II.         TREATMENT OF OUTSTANDING EQUITY AWARDS.

 

Section 2.1         Vesting of Outstanding Equity Awards. For purposes of the restricted stock and restricted stock unit awards set forth in Exhibit A hereto (the "Equity Awards") that were previously granted to Mr. Wheeler under the Geospace Technologies Corporation 2014 Long Term Incentive Plan (the “Plan”), the Company agrees to fully vest as of January 1, 2025 all remaining unvested shares in conjunction with Mr. Wheeler’s termination of employment.

 

 

III.         TERM; TERMINATION

 

Section 3.1         Term. This Agreement shall commence on the Effective Date and shall continue for one year.

 

Section 3.2         Termination. Notwithstanding the foregoing, the Company shall have the right to immediately terminate this Agreement for cause or discontinue any payments hereunder if Mr. Wheeler breaches any provision of this Agreement or any provision of any other agreement between Mr. Wheeler and the Company.

 

IV.         NO OTHER BENEFITS

 

Section 4.1         No Other Benefits. Except as provided in Section 1.1 (with respect to the termination payment) and Section 2.1 (with respect to previously granted and unvested awards under the Plan), from and after the Effective Date the parties acknowledge that Mr. Wheeler shall not be entitled to participate as an active employee in any insurance or other benefit programs of the Company which may be applicable to active employees of the Company. From and after the Effective Date the Company will not provide to Mr. Wheeler any additional health insurance, worker’s compensation insurance, unemployment insurance, retirement plans, or any other benefits as an active employee.

 

Section 4.2         No Vacation; Sick Leave. The Company shall pay Mr. Wheeler for no more than 160 hours of unused vacations, sick leave, or other leave not used prior to the Effective Date.

 

V.         TAX OBLIGATIONS

 

Section 5.1         Taxes.         For all payments made pursuant this Agreement, including vesting of any unvested Equity Awards under Section 2.1, whether made in cash or by vesting of equity awards, Mr. Wheeler acknowledges that the Company will be entitled to withhold any taxes the Company is required by applicable law to withhold from such payments as required by applicable law (including, for the avoidance of doubt, as provided in the Plan with respect to vesting of the Equity Awards). Mr. Wheeler accepts and acknowledges that he is responsible for all applicable city, state, federal, and other taxes as required pursuant to any law or governmental regulation or ruling for said payments made under this Agreement. The Company shall report all compensation paid to Mr. Wheeler hereunder on IRS Form W-2 as required by applicable tax law.

 

VI.         UNAUTHORIZED DISCLOSURE

 

Section 6.1         Unauthorized Disclosure. Mr. Wheeler acknowledges that during Mr. Wheeler’s history with the Company, Mr. Wheeler has been exposed to and has received information relating to the confidential affairs of the Company and its affiliates, including, without limitation, technical information, intellectual property, business and marketing plans, strategies, customer information, software, other information concerning the products, promotions, development, financing, expansion plans, business policies and practices of the Company and its affiliates and other forms of information considered by the Company and its affiliates to be confidential or in the nature of trade secrets (including, without limitation, ideas, research and development, know-how, formulas, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information and business and marketing plans and proposals) (collectively, the “Confidential Information”). Mr. Wheeler agrees that at all times during the term of this Agreement, Mr. Wheeler shall not disclose such Confidential Information, either directly or indirectly, to any individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof (each, a “Person”) without the express prior written consent of the Company and shall not use or attempt to use any such information in any manner unless required by applicable law to disclose such information, in which case Mr. Wheeler shall provide the Company with written notice of such requirement as far in advance of such anticipated disclosure as possible to the extent such disclosure may be made under applicable law. This confidentiality covenant has no temporal, geographical or territorial restriction. Mr. Wheeler acknowledges that prior to the Effective Date, to the extent requested by the Company, Mr. Wheeler has returned to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data and any other tangible product or document which has been produced by, received by or otherwise submitted to Mr. Wheeler during his employment with the Company and that belongs to or relates to the Company, and any copies thereof in his (or capable of being reduced to his) possession; provided, however, that Mr. Wheeler may retain his full rolodex or similar address and telephone directories.

 

VII.         RELEASE AND COVENANT NOT TO SUE.

 

Section 7.1         Mr. Wheeler, on behalf of himself and his heirs and representatives, hereby irrevocably and unconditionally releases, waives and forever discharges the Company, and its predecessors and successors, assigns, stockholders, subsidiaries, parents, affiliates, officers, directors, trustees, employees, agents and attorneys, past and present and in their respective capacities as such, and their heirs, administrators, estates, representatives, and beneficiaries, successors, and permitted assigns (the Company and each such person or entity is each referred to as a “Released Person”) from all existing, past and present, known and unknown claims, demands, and causes of action, damages and remedies of any nature, which have accrued or which may ever accrue to Mr. Wheeler, or to the Mr. Wheeler’s past, present, and future agents, heirs, executors, legal representatives, successors, or assigns, resulting from or relating to any act or omission occurring on or before the date of Mr. Wheeler’s execution of this Agreement (a) pertaining to Mr. Wheeler’s employment relationship with the Company and its affiliates; (b) concerning the terms and conditions of Mr. Wheeler’s employment with the Company; (c) concerning Mr. Wheeler’s conduct occurring in the course and scope of his employment with the Company; or (d) concerning Mr. Wheeler’s termination of employment with the Company, save and except as provided below. This release includes, but is not limited to, any and all claims of race discrimination, sexual discrimination, national origin discrimination, religious discrimination, disability discrimination, age discrimination and unlawful retaliation and any and all claims under the following: Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq.; Civil Rights Act of 1866, 42 U.S.C. § 1981 et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601, et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2010, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101, et seq.; the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, 29 U.S.C. § 621, et seq.; Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001, et seq.; Rehabilitation Act of 1973, 29 U.S.C. § 706, et seq.; Chapter 21 of the Texas Labor Code; Chapter 61 of the Texas Labor Code; Chapter 451 of the Texas Labor Code; any other state, municipal and other local anti-discrimination statutes; any and all claims for alleged breach of an express or implied contract; any and all tort claims including, but not limited to, alleged retaliation for assertion of workers’ compensation rights; any and all claims under workers’ compensation law; and any and all claims for attorney’s fees.

 

Section 7.2         Mr. Wheeler expressly represents that he has not filed a lawsuit or initiated any other administrative proceeding against a Released Person and that he has not assigned any claim against a Released Person. Mr. Wheeler further promises not to initiate a lawsuit or to bring any other claim against any Released Person arising out of or in any way related to his employment by the Company or the termination of that employment.

 

Section 7.3         Notwithstanding anything to the contrary in this Agreement, this release does not constitute a release or waiver of any claim by Mr. Wheeler (a) solely to enforce this Agreement, (b) for indemnity from the Company arising as a result of the Employee having been an officer, director or fiduciary of the Company, (c) to continue group health plan coverage under applicable law and the terms of the applicable group health plan or for unemployment or workers’ compensation, (d) for rights vested on the date he signs this Agreement under the Company’s employee benefit plans, or (e) that may arise after he signs this Agreement. Further, and notwithstanding anything to the contrary in this Agreement, this release does not constitute a release or waiver of Mr. Wheeler’s right to file a charge or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”) or any other state or federal governmental entity with jurisdiction to regulate employment conditions or relations; however, Mr. Wheeler does release and relinquish any right to receive any money, property, or any other thing of value, or any other financial benefit or award from any Released Person as a result of any proceeding of any kind or character initiated by the EEOC or any other state or federal governmental entity with jurisdiction to regulate employment conditions or relations. In addition, this release shall not affect the Employee’s rights under the Older Workers Benefit Protection Act to have a judicial determination of the validity of this release and waiver.

 

VIII.         MISCELLANEOUS

 

Section 8.1         Applicable Law, Jurisdiction and Mandatory Forum. This Agreement is entered into under, shall be construed and enforced in accordance with, and the rights and obligations of the parties shall be governed for all purposes by, the laws of the State of Texas, without giving effect to the conflicts of law principles thereof, and venue for any lawsuit with respect to the subject matter of this Agreement shall be fixed solely and exclusively in the courts located in Harris County, Texas.

 

Section 8.2         Successors/Assignment. Mr. Wheeler acknowledges and agrees that this Agreement shall be binding upon Mr. Wheeler and inure to the benefit of the Company. This Agreement is personal to Mr. Wheeler, who shall not be entitled to assign, transfer, or charge any of his rights or obligations under this Agreement.

 

Section 8.3         Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, by e-mail transmission (with evidence of transmission from the sender) or by registered or certified mail (postage prepaid, return receipt requested). Actual notice is sufficient to be notice hereunder. Such communications must be sent to the respective parties at the following addresses:

 

If to the Company to: Geospace Technologies Corporation

7007 Pinemont Drive

Houston, Texas 77040

Attn: Chairman of the Board

E-mail: sjumper@geospace.com

 

 

If to Mr. Wheeler to: The address set forth under Mr. Wheeler’s name on the signature page hereto

 

Any party hereto may change its address for the purpose of receiving notices, demands, and other communications as herein provided by a written notice given in the manner aforesaid to the other party hereto.

 

Section 8.4         No Waiver. No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall (i) be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time, or (ii) preclude insistence upon strict compliance in the future.

 

Section 8.5          Severability. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect.

 

Section 8.6         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 shall constitute one and the same Agreement.

 

Section 8.7         Headings. The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes.

 

Section 8.8         Affiliate. As used in this Agreement, “affiliate” shall mean any Person which directly or indirectly through one or more intermediaries owns or controls, is owned or controlled by, or is under common ownership or control with, the Company.

 

Section 8.9         Interpretations. For purposes of this Agreement, (a) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; (c) the word “days” means calendar days; (d) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole; (e) the word “any” means any and all; (f) references to any gender shall include each other gender as the context requires; (g) references to the Company are also to its permitted successors and assigns; and (f) all italics are used for emphasis only. Unless the context otherwise requires, any reference herein: (x) to Exhibit A means Exhibit A to this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. Exhibit A referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if it were set forth verbatim herein.

 

Section 8.10         Entire Agreement. This Agreement and the documents contemplated or referenced herein constitutes the entire agreement of the parties with respect to the subject of this Agreement.

 

Section 8.11         Modifications.          No modifications of this Agreement shall be effective unless in writing signed by both parties hereto.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the Effective Date.

 

[Signature Page Follows]         

 

 

Walter R. Wheeler

 

/s/ Walter R. Wheeler

_____________________

Walter R Wheeler

 

Address for Notice:

7626 Cicada, Dr.,

Missouri City, TX 77459

 

E-mail.

moturick@earthlink.net

 

 

 

GEOSPACE TECHNOLOGIES CORPORATION

 

    /s/ Stephen C. Jumper         

By: ____________________

Name: Stephen C. Jumper

Title:   Chairman of the Board

 

 

EXHIBIT A

 

LIST OF UNVESTED EQUITY AWARDS (as of December 31, 2024)

 

 

1.         November 2021  – RSU Grant         2,250

 

2.         November 2022  – RSU Grant         2,000

 

3.         November 2022  – PRSU Grant      7,500

 

4.         November 2023 – RSU Grant         3,000

 

Total                                            14,750

 

v3.25.0.1

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2024	Jan. 31, 2025
Document Information [Line Items]
Entity Central Index Key	0001001115
Entity Registrant Name	GEOSPACE TECHNOLOGIES CORP
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Entity File Number	001-13601
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	76-0447780
Entity Address, Address Line One	7007 Pinemont
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77040
City Area Code	713
Local Phone Number	986-4444
Title of 12(b) Security	Common Stock
Trading Symbol	GEOS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		12,776,752

v3.25.0.1

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Current assets:
Cash and cash equivalents	$ 1,410	$ 6,895
Short-term investments	20,655	30,227
Trade accounts and financing receivables, net	40,645	21,868
Inventories, net	27,921	26,222
Assets held for sale	1,841	1,841
Prepaid expenses and other current assets	2,613	2,313
Total current assets	95,085	89,366
Non-current inventories, net	18,742	18,031
Rental equipment, net	12,480	14,186
Property, plant and equipment, net	23,358	21,083
Non-current trade accounts and financing receivables	7,264	6,375
Operating right-of-use assets	400	464
Goodwill	736	736
Other intangible assets, net	1,611	1,649
Other non-current assets	263	304
Total assets	159,939	152,194
Current liabilities:
Accounts payable trade	7,312	8,003
Operating lease liabilities	130	173
Other current liabilities	9,446	9,021
Total current liabilities	16,888	17,197
Non-current operating lease liabilities	309	339
Deferred tax liabilities, net	32	34
Total liabilities	17,229	17,570
Commitments and contingencies (Note 11)
Stockholders’ equity:
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding	0	0
Common Stock, $.01 par value, 20,000,000 shares authorized; 14,315,262 and 14,206,082 shares issued, respectively; and 12,798,897 and 12,709,381 shares outstanding, respectively	143	142
Additional paid-in capital	97,690	97,342
Retained earnings	63,658	55,282
Accumulated other comprehensive loss	(4,699)	(4,257)
Treasury stock, at cost, 1,516,365 and 1,496,701 shares, respectively	(14,082)	(13,885)
Total stockholders’ equity	142,710	134,624
Total liabilities and stockholders’ equity	$ 159,939	$ 152,194

v3.25.0.1

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Dec. 31, 2024	Sep. 30, 2024
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	20,000,000	20,000,000
Common stock, issued (in shares)	14,315,262	14,206,082
Common stock, outstanding (in shares)	12,798,897	12,709,381
Treasury stock, shares (in shares)	1,516,365	1,496,701

v3.25.0.1

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Revenue:
Total revenue	$ 37,223	$ 50,032
Cost of revenue:
Total cost of revenue	17,074	27,796
Gross profit	20,149	22,236
Operating expenses:
Selling, general and administrative	7,420	5,826
Research and development	4,894	3,602
Provision for recovery of credit losses	0	(29)
Total operating expenses	12,314	9,399
Income from operations	7,835	12,837
Other income (expense):
Interest expense	(44)	(56)
Interest income	745	235
Foreign currency transaction gains (losses), net	(14)	(163)
Other, net	(33)	(74)
Total other income (loss), net	654	(58)
Income before income taxes	8,489	12,779
Income tax expense	113	100
Net income	$ 8,376	$ 12,679
Income per common share:
Basic (in dollars per share)	$ 0.66	$ 0.96
Diluted (in dollars per share)	$ 0.65	$ 0.94
Weighted average common shares outstanding:
Basic (in shares)	12,753,378	13,251,360
Diluted (in shares)	12,877,387	13,460,516
Product [Member]
Revenue:
Total revenue	$ 32,645	$ 43,714
Cost of revenue:
Total cost of revenue	14,269	23,842
Rental [Member]
Revenue:
Total revenue	4,578	6,318
Cost of revenue:
Total cost of revenue	$ 2,805	$ 3,954

v3.25.0.1

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Net income	$ 8,376	$ 12,679
Other comprehensive income (loss):
Change in unrealized gains (losses) on available-for-sale securities, net of tax	(43)	15
Foreign currency translation adjustments	(399)	491
Total other comprehensive income (loss)	(442)	506
Total comprehensive income	$ 7,934	$ 13,185

v3.25.0.1

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Common Stock Outstanding [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock, Common [Member]	Total
Balance (in shares) at Sep. 30, 2023	13,188,489
Balance at Sep. 30, 2023		$ 140	$ 96,040	$ 61,860	$ (17,824)	$ (7,500)	$ 132,716
Net income		0	0	12,679	0	0	12,679
Other comprehensive income (loss)		0	0	0	506	0	506
Issuance of common stock pursuant to the vesting of restricted stock units (in shares)	128,601
Issuance of common stock pursuant to the vesting of restricted stock units		2	(2)	0	0	0	0
Stock-based compensation		0	406	0	0	0	406
Balance (in shares) at Dec. 31, 2023	13,317,090
Balance at Dec. 31, 2023		142	96,444	74,539	(17,318)	(7,500)	146,307
Balance (in shares) at Sep. 30, 2024	12,709,381
Balance at Sep. 30, 2024		142	97,342	55,282	(4,257)	(13,885)	134,624
Net income		0	0	8,376	0	0	8,376
Other comprehensive income (loss)		0	0	0	(442)	0	(442)
Issuance of common stock pursuant to the vesting of restricted stock units (in shares)	109,180
Issuance of common stock pursuant to the vesting of restricted stock units		1	(1)	0	0	0	0
Purchase of treasury stock (in shares)	(19,664)
Purchase of treasury stock		0	0	0	0	(197)	(197)
Stock-based compensation		0	349	0	0	0	349
Balance (in shares) at Dec. 31, 2024	12,798,897
Balance at Dec. 31, 2024		$ 143	$ 97,690	$ 63,658	$ (4,699)	$ (14,082)	$ 142,710

v3.25.0.1

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 8,376,000	$ 12,679,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred income tax expense	0	8,000
Rental equipment depreciation	1,884,000	3,313,000
Property, plant and equipment depreciation	867,000	822,000
Amortization of intangible assets	37,000	109,000
Amortization of premiums (accretion of discounts) on short-term investments	(104,000)	(115,000)
Stock-based compensation expense	349,000	406,000
Provision for recovery of credit losses	0	(29,000)
Inventory obsolescence expense	506,000	20,000
Gross profit from sale of rental equipment	(15,978,000)	(19,350,000)
Gain on disposal of property, plant and equipment	(86,000)	0
Realized gain on investments	(10,000)	0
Effects of changes in operating assets and liabilities:
Trade accounts and financing receivables	(3,622,000)	8,001,000
Inventories	(2,988,000)	(4,059,000)
Other assets	(196,000)	179,000
Accounts payable trade	(690,000)	(478,000)
Other liabilities	146,000	1,146,000
Net cash provided by (used in) operating activities	(11,509,000)	2,652,000
Cash flows from investing activities:
Purchase of property, plant and equipment	(3,199,000)	(779,000)
Proceeds from the sale of property, plant and equipment	89,000	0
Investment in rental equipment	(373,000)	(2,558,000)
Proceeds from the sale of rental equipment	65,000	597,000
Proceeds from the sale of short-term investments	9,660,000	0
Payments received on note receivable related to sale of subsidiary	45,000	0
Net cash provided by (used in) investing activities	6,287,000	(2,740,000)
Cash flows from financing activities:
Purchase of treasury stock	(197,000)	0
Net cash used in financing activities	(197,000)	0
Effect of exchange rate changes on cash	(66,000)	192,000
Increase (decrease) in cash and cash equivalents	(5,485,000)	104,000
Cash and cash equivalents, beginning of period	6,895,000	18,803,000
Cash and cash equivalents, end of period	1,410,000	18,907,000
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	113,000	0
Accounts and financing receivables related to sale of rental equipment	16,112,000	30,048,000
Inventory transferred to rental equipment	$ 36,000	$ 593,000

v3.25.0.1

Note 1 - Significant Accounting Policies	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Significant Accounting Policies [Text Block]	1. Significant Accounting Policies   Basis of Presentation   The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at  September 30, 2024, was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at  December 31, 2024 and the consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for the three months ended December 31, 2024 and 2023 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All significant intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2024, are not necessarily indicative of the operating results for a full year or of future operations.   Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2024.   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 December 31, 2024 and September 30, 2024, cash and cash equivalents included $0.9 million and $1.1 million, respectively, held by the Company’s foreign subsidiaries and branch offices.   Concentration of Credit Risk   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 financial conditions of its customers.  Receivables are charged off against the allowance whenever it is probable that the balance will not be recoverable.   The Company had trade accounts and financing receivables from one customer of $22.5 million at December 31, 2024.  During the three months ended December 31, 2024 and 2023, the Company recognized revenue from this customer of $18.7 million and $31.7 million, respectively.   Impairment of Long-lived Assets   The Company's long-lived assets are reviewed for impairment whenever an event or circumstance indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of the 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.  During the quarter ended December 31, 2024, no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable.   Recently Issued Accounting Pronouncements   In November 2023, 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 is currently evaluating the provisions of this guidance and the impact on its consolidated financial statements.    In December 2023, the FASB issued guidance improvements on 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 consolidation financial statements.   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 asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.  Early adoption is permitted. The Company is currently evaluating the provisions of this guidance and the impact on its consolidated financial statements.    All other new accounting pronouncements that have been issued, but not yet effective, are currently being evaluated and at this time are not expected to have a material impact on the Company's financial position or results of operations.

v3.25.0.1

Note 2 - Revenue Recognition	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	2. Revenue Recognition   In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when performance 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 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. Rental revenue is recognized as earned over the rental period if collectability of the rent is reasonably assured. Rentals of the Company’s equipment generally range from daily rentals to minimum rental periods of up to one year. The Company has determined that ASC 606 does not apply to rental contracts, which are within the scope of ASC Topic 842, Leases.   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.   At December 31, 2024 and September 30, 2024, the Company had no deferred contract liabilities and no deferred contract costs.  During the three months ended December 31, 2024, no revenue was recognized from deferred contract liabilities and no cost of revenue was recognized from deferred contract costs.  During the three months ended December 31, 2023, revenue of $45,000 was recognized from deferred contract liabilities and no cost of revenue was recorded from deferred contract costs.  At December 31, 2024, all contracts had an original expected duration of one year or less.  At December 31, 2024 and October 1 2024, the Company had accounts receivable from contracts of $12.0 million and $13.4 million, respectively. At December 31, 2023 and October 1, 2023, the Company had accounts receivable from contracts of $37.6 million and $10.9 million, respectively.   For the three months ended December 31, 2024, no revenue recognized from contracts with customers satisfied over-time.  For the three months ended December 31, 2023, revenue from contracts with customers satisfied over-time was $45,000, which was from the Company's Intelligent Industrial segment.  All other revenue from contracts with customers was recognized at a point-in time.  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.  Therefore, the table excludes all revenue earned from rental contracts.       Three Months Ended       December 31, 2024     December 31, 2023   Smart Water   $ 7,288     $ 4,234   Energy Solutions     19,826       33,706   Intelligent Industrial     5,531       5,774   Total   $ 32,645     $ 43,714     See Note 12 for more information on the Company’s operating business segments.   For each of the geographic areas where the Company operates, the following table presents revenue (in thousands) from the sale of products and services under contracts with customers. The table excludes all revenue earned from rental contracts:       Three Months Ended       December 31, 2024     December 31, 2023   Asia (including Russian Federation)   $ 18,057     $ 32,216   Canada     369       1,226   Europe     1,398       1,378   Mexico     1,281       166   United States     11,423       8,418   Other     117       310   Total   $ 32,645     $ 43,714     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.

v3.25.0.1

Note 3 - Short-term Investments	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	3. Short-term Investments   The Company classifies its short-term investments as available-for-sale securities. Available-for-sale securities are carried at fair market value with net unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity.    The Company’s short-term investments were composed of the following (in thousands):       As of December 31, 2024       Amortized Cost     Unrealized Gains     Unrealized Losses     Estimated Fair Value   Short-term investments:                                 Corporate bonds   $ 16,899     $ 7     $ —     $ 16,906   U.S. treasury securities and securities of U.S. government-sponsored agency     3,742       7       —       3,749   Total   $ 20,641     $ 14     $ —     $ 20,655          As of September 30, 2024       Amortized Cost     Unrealized Gains     Unrealized Losses     Estimated Fair Value   Short-term investments:                                 Corporate bonds   $ 21,814     $ 35     $ —     $ 21,849   U.S. treasury securities and securities of U.S. government-sponsored agency     8,356       22       —       8,378   Total   $ 30,170     $ 57     $ —     $ 30,227     The Company had no securities in a material unrealized loss position at  December 31, 2024 and  September 30, 2024 and does not believe the unrealized losses associated with these 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 $10,000 was realized during the three months ended December 31, 2024 from the sale of short-term investments. No gains or losses were recognized during the three months ended December 31, 2023 from the sale of short-term investments.

v3.25.0.1

Note 4 - Fair Value of Financial Instruments	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Fair Value Disclosures [Text Block]	4. 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 of these financial instruments are deemed to approximate their fair value on the respective balance sheet dates.   The Company measures its short-term investments at fair value on a recurring basis.   The following tables present the fair value of the Company’s short-term investments, note receivable on sale of subsidiary and Emerging Markets asset group intangible assets by valuation hierarchy and input (in thousands):       As of December 31, 2024       (Level 1)     (Level 2)     (Level 3)     Totals   Short-term investments:                                 Corporate bonds   $ —     $ 16,906     $ —     $ 16,906   U.S. treasury securities and securities of U.S. government-sponsored agency     —       3,749       —       3,749   Total   $ —     $ 20,655     $ —     $ 20,655          As of September 30, 2024       (Level 1)     (Level 2)     (Level 3)     Totals   Recurring:                                 Short-term investments:                                 Corporate bonds   $ —     $ 21,849     $ —     $ 21,849   U.S. treasury securities and securities of U.S. government-sponsored agency     —       8,378       —       8,378   Total   $ —     $ 30,227     $ —     $ 30,227                                     Nonrecurring:                                 Note receivable on sale of subsidiary   $ —     $ —     $ 2,600     $ 2,600   Emerging Markets asset group intangible assets     —       —       —       —   Total   $ —     $ —     $ 2,600     $ 2,600         Assets and liabilities Measured on a Nonrecurring basis   In August 2024, the Company performed a fair value analysis on its $3.5 million promissory note obtained in connection with its subsidiary sale as of the transaction date.  The measurements utilized to determine the implied fair value of the note receivable obtained 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 5 for more information.   At September 30, 2024, the Company performed a recoverability assessment on its long-lived assets of it Emerging Markets asset group in which its carrying value was compared to the estimated undiscounted cash flows over the remaining useful life of the asset group's primarily asset, 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).

v3.25.0.1

Note 5 - Trade Accounts and Financing Receivables	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	5. Trade Accounts and Financing Receivables   Trade accounts receivable, net (excluding financing receivables) are reflected in the following table (in thousands):       December 31, 2024     September 30, 2024   Trade accounts receivable   $ 19,510     $ 16,151   Allowance for credit losses     (4 )     (4 ) Total     19,506       16,147   Less current portion     (19,506 )     (14,637 ) Non-current trade accounts receivable   $ —     $ 1,510     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. Trade accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable.   Allowance for credit losses related to trade accounts receivable are reflected in the following table (in thousands):       Three Months Ended       December 31, 2024     December 31, 2023   Allowance for credit losses:                 Beginning of period     4       125   Provision for credit losses     —       43   Recoveries     —       (72 ) Write-offs     —       (7 ) Currency translation     —       3   End of period   $ 4     $ 92       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.  Future minimum payments required under the lease at December 31, 2024, were $16.7 including $0.6 million of unearned income.  Interest income of $0.1 million was recognized for the three months ended December 31, 2024.  The 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.  Pursuant to an amendment in the first quarter of fiscal year 2025, the maturity of the note was extended from December 2025 to June 2026.  The note bears interest at 9.5% per annum. 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 bears interest at 5% per annum and is for a 10-year term.  Principal and interest payments of $37,000 are due monthly.  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 is being recognized under the effective interest method.   Credit quality indicators used for the financing receivables consisted of historical collection experience, internal credit risk grades and collateral.  The Company determined 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.

v3.25.0.1

Note 6 - Inventories	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	6. Inventories                                                                                                                                                                                                                                                                                Inventories consist of the following (in thousands):         December 31, 2024     September 30, 2024   Finished goods   $ 18,692     $ 18,099   Work in process     5,506       3,626   Raw materials     31,975       30,941   Obsolescence reserve (net realizable value adjustment)     (9,510 )     (8,413 ) Total     46,663       44,253   Less current portion     27,921       26,222   Non-current portion   $ 18,742     $ 18,031     Inventory obsolescence expense for the three months ended December 31, 2024 and 2023, was $506,000 and $20,000, respectively.  Raw materials include semi-finished goods and component parts that totaled approximately $10.6 million and $8.6 million at December 31, 2024 and September 30, 2024, respectively.

v3.25.0.1

Note 7 - Rental Equipment	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Leases Disclosure [Text Block]	7. Rental 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 for which the Company acts as lessor, are classified as operating leases, except for one sales-type lease. The majority of the Company’s rental revenue is generated from its marine-based wireless seismic data acquisition systems.   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 and limits future rental revenue recognition to cash received. As of December 31, 2024, the Company’s trade accounts receivable included lease receivables of $4.7 million.   Rental revenue related to leased equipment for the three months ended December 31, 2024 and 2023 was $4.5 million and $6.2 million, respectively.   Future minimum lease obligations due from the Company’s leasing customers on operating leases executed as of  December 31, 2024, were $0.8 million, all of which is expected to be due within the next 12 months.   Rental equipment consisted of the following (in thousands):       December 31, 2024     September 30, 2024   Rental equipment, primarily wireless recording equipment   $ 49,220     $ 63,111   Accumulated depreciation     (36,740 )     (48,925 )     $ 12,480     $ 14,186

v3.25.0.1

Note 8 - Long-term Debt	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	8. Long-Term Debt   On July 26, 2023, the Company entered into a credit agreement (“the Agreement”) with Woodforest National Bank, as sole lender.  The Agreement refinanced the Company's credit agreement dated May 6, 2022, with Amerisource Funding, Inc., as administrative agent and as a lender, and Woodforest National Bank, as a lender. The Agreement provides a revolving credit facility with a maximum availability of $15 million.  Availability under the Agreement is determined based upon a borrowing base comprised of certain of the Company’s domestic assets which include (i) 80% of eligible accounts, plus (ii) 90% of eligible foreign insured accounts, plus (iii) 25% of eligible inventory plus (iv) 50% of the orderly liquidation value of eligible equipment, in each case subject to certain limitations and adjustments.  Interest shall accrue on outstanding borrowings at a rate equal to Term SOFR (Secured Overnight Financing Rate) plus a margin equal to 3.25% per annum (7.75% at December 31, 2024).  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 a minimum (i) consolidated tangible net worth of $100 million, (ii) liquidity of $5 million, and (iii) current ratio no less than 2.00 to 1.00, in each case tested quarterly. The Agreement also requires the Company to maintain a springing minimum interest coverage ratio of 1.50 to 1.00, tested quarterly whenever there is an outstanding balance on the revolving credit facility. The Agreement expires in July 2025.  At December 31, 2024, the Company's borrowing availability under the Agreement was $12.1 million after consideration of a $0.1 million outstanding letter of credit.  At December 31, 2024, the Company was in compliance with all covenants under the Agreement. The Company had no borrowings outstanding under the Agreement at December 31, 2024, and September 30, 2024.

v3.25.0.1

Note 9 - Stock-based Compensation	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	9. Stock-Based Compensation   During the three months ended December 31, 2024, the Company issued 143,500 restricted stock units (“RSUs”) under its 2014 Long Term Incentive Plan, as amended. The RSUs issued include both time-based and performance-based vesting provisions. The weighted average grant date fair value of each RSU was $13.29 per unit. The grant date fair value of the RSUs was $1.9 million, which will be charged to expense over the next four years as the restrictions lapse. Compensation expense for the 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. Each RSU represents a contingent right to receive one share of the Company’s common stock upon vesting.  As of December 31, 2024, there were 359,215 RSUs outstanding.   For the three months ended December 31, 2024 and 2023, stock-based compensation expense was $0.3 million and $0.4 million, respectively.  As of December 31, 2024, the Company had unrecognized compensation expense of $3.4 million relating to RSUs that is expected to be recognized over the next four years.

v3.25.0.1

Note 10 - Earnings Per Common Share	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	10. Earnings Per Common Share   The following table summarizes the calculation of net earnings and weighted average common shares and common equivalent shares outstanding for purposes of the computation of earnings per share (in thousands, except share and per share data):       Three Months Ended       December 31, 2024     December 31, 2023   Net income   $ 8,376     $ 12,679   Weighted average number of common share equivalents:                 Common shares used in basic earnings per share     12,753,378       13,251,360   Common share equivalents outstanding related to RSUs     124,009       209,156   Total weighted average common shares and common share equivalents used in diluted earnings per share     12,877,387       13,460,516   Earnings per share:                 Basic   $ 0.66     $ 0.96   Diluted   $ 0.65     $ 0.94                For the calculation of diluted earnings per share for the three months ended December 31, 2024 and 2023, there were 235,206 and 212,217 non-vested RSUs, respectively, excluded from the calculation of weighted average shares outstanding since their impact on diluted earnings per share were antidilutive.

v3.25.0.1

Note 11 - Commitments and Contingencies	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	11. Commitments and Contingencies   Contingent Compensation Costs   In connection with the acquisition of Aquana, LLC (“Aquana”) in July 2021, the Company is subject to additional contingent cash payments to the former members of Aquana over a six-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 four years of the six 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.    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.

v3.25.0.1

Note 12 - Segment Information	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	12. Segment 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 encompass' 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, designs seismic products targeted at the border and perimeter security markets, imaging products, as well as providing contract manufacturing services. The change methodology for allocating manufacturing costs affected each business segment's operating income (loss) but had no effect on consolidated operating income.     The following table summarizes the Company’s segment information (in thousands).  Segment information for the three months ended December 31, 2024 and 2023, has been recast for comparability.       Three Months Ended       December 31, 2024     December 31, 2023   Revenue:                 Smart Water   $ 7,288     $ 4,234   Energy Solutions     24,282       39,911   Intelligent Industrial     5,577       5,813   Corporate     76       74   Total   $ 37,223     $ 50,032                     Income (loss) from operations:                 Smart Water   $ 370     $ 1,095   Energy Solutions     13,282       15,068   Intelligent Industrial     (940 )     (191 ) Corporate     (4,877 )     (3,135 ) Total   $ 7,835     $ 12,837     The Company's manufacturing operations for its operating business segments are combined.  Therefore, the Company does not segregate and report separate balance sheet accounts for each of its segments and therefore, no total asset information is presented in the table above.

v3.25.0.1

Note 13 - Income Taxes	3 Months Ended
	Dec. 31, 2024
Notes to Financial Statements
Income Tax Disclosure [Text Block]	13. Income Taxes   Consolidated income tax expense for the each of the three months ended December 31, 2024 and 2023, was $0.1 million.  The primary difference between the Company's effective tax rate and the statutory rate is adjustments to the valuation allowance against deferred tax assets.

v3.25.0.1

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Insider Trading Arr Line Items
Rule 10b5-1 Arrangement Terminated [Flag]	false
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false

v3.25.0.1

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation   The consolidated balance sheet of Geospace Technologies Corporation and its subsidiaries (the “Company”) at  September 30, 2024, was derived from the Company’s audited consolidated financial statements at that date. The consolidated balance sheet at  December 31, 2024 and the consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for the three months ended December 31, 2024 and 2023 were prepared by the Company without audit. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position, results of operations and cash flows were made. All significant intercompany balances and transactions have been eliminated. The results of operations for the three months ended December 31, 2024, are not necessarily indicative of the operating results for a full year or of future operations.   Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") were omitted pursuant to the rules of the Securities and Exchange Commission. The accompanying consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended September 30, 2024.
Use of Estimates, Policy [Policy Text Block]	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, Policy [Policy Text Block]	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 December 31, 2024 and September 30, 2024, cash and cash equivalents included $0.9 million and $1.1 million, respectively, held by the Company’s foreign subsidiaries and branch offices.
Concentration Risk, Credit Risk, Policy [Policy Text Block]	Concentration of Credit Risk   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 financial conditions of its customers.  Receivables are charged off against the allowance whenever it is probable that the balance will not be recoverable.   The Company had trade accounts and financing receivables from one customer of $22.5 million at December 31, 2024.  During the three months ended December 31, 2024 and 2023, the Company recognized revenue from this customer of $18.7 million and $31.7 million, respectively.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-lived Assets   The Company's long-lived assets are reviewed for impairment whenever an event or circumstance indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review, if necessary, includes a comparison of the 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.  During the quarter ended December 31, 2024, no events or changes in circumstances were identified indicating the carrying value of any of the Company's asset groups may not be recoverable.
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Issued Accounting Pronouncements   In November 2023, 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 is currently evaluating the provisions of this guidance and the impact on its consolidated financial statements.    In December 2023, the FASB issued guidance improvements on 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 consolidation financial statements.   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 asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.  Early adoption is permitted. The Company is currently evaluating the provisions of this guidance and the impact on its consolidated financial statements.    All other new accounting pronouncements that have been issued, but not yet effective, are currently being evaluated and at this time are not expected to have a material impact on the Company's financial position or results of operations.

v3.25.0.1

Note 2 - Revenue Recognition (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended       December 31, 2024     December 31, 2023   Smart Water   $ 7,288     $ 4,234   Energy Solutions     19,826       33,706   Intelligent Industrial     5,531       5,774   Total   $ 32,645     $ 43,714
Revenue from External Customers by Geographic Areas [Table Text Block]	Three Months Ended       December 31, 2024     December 31, 2023   Asia (including Russian Federation)   $ 18,057     $ 32,216   Canada     369       1,226   Europe     1,398       1,378   Mexico     1,281       166   United States     11,423       8,418   Other     117       310   Total   $ 32,645     $ 43,714

v3.25.0.1

Note 3 - Short-term Investments (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Schedule of Available-for-Sale Securities Reconciliation [Table Text Block]	As of December 31, 2024       Amortized Cost     Unrealized Gains     Unrealized Losses     Estimated Fair Value   Short-term investments:                                 Corporate bonds   $ 16,899     $ 7     $ —     $ 16,906   U.S. treasury securities and securities of U.S. government-sponsored agency     3,742       7       —       3,749   Total   $ 20,641     $ 14     $ —     $ 20,655       As of September 30, 2024       Amortized Cost     Unrealized Gains     Unrealized Losses     Estimated Fair Value   Short-term investments:                                 Corporate bonds   $ 21,814     $ 35     $ —     $ 21,849   U.S. treasury securities and securities of U.S. government-sponsored agency     8,356       22       —       8,378   Total   $ 30,170     $ 57     $ —     $ 30,227

v3.25.0.1

Note 4 - Fair Value of Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	As of December 31, 2024       (Level 1)     (Level 2)     (Level 3)     Totals   Short-term investments:                                 Corporate bonds   $ —     $ 16,906     $ —     $ 16,906   U.S. treasury securities and securities of U.S. government-sponsored agency     —       3,749       —       3,749   Total   $ —     $ 20,655     $ —     $ 20,655       As of September 30, 2024       (Level 1)     (Level 2)     (Level 3)     Totals   Recurring:                                 Short-term investments:                                 Corporate bonds   $ —     $ 21,849     $ —     $ 21,849   U.S. treasury securities and securities of U.S. government-sponsored agency     —       8,378       —       8,378   Total   $ —     $ 30,227     $ —     $ 30,227                                     Nonrecurring:                                 Note receivable on sale of subsidiary   $ —     $ —     $ 2,600     $ 2,600   Emerging Markets asset group intangible assets     —       —       —       —   Total   $ —     $ —     $ 2,600     $ 2,600

v3.25.0.1

Note 5 - Trade Accounts and Financing Receivables (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Schedule of Accounts Receivable [Table Text Block]	December 31, 2024     September 30, 2024   Trade accounts receivable   $ 19,510     $ 16,151   Allowance for credit losses     (4 )     (4 ) Total     19,506       16,147   Less current portion     (19,506 )     (14,637 ) Non-current trade accounts receivable   $ —     $ 1,510
Accounts Receivable, Allowance for Credit Loss [Table Text Block]	Three Months Ended       December 31, 2024     December 31, 2023   Allowance for credit losses:                 Beginning of period     4       125   Provision for credit losses     —       43   Recoveries     —       (72 ) Write-offs     —       (7 ) Currency translation     —       3   End of period   $ 4     $ 92

v3.25.0.1

Note 6 - Inventories (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Schedule of Inventory, Current and Noncurrent [Table Text Block]	December 31, 2024     September 30, 2024   Finished goods   $ 18,692     $ 18,099   Work in process     5,506       3,626   Raw materials     31,975       30,941   Obsolescence reserve (net realizable value adjustment)     (9,510 )     (8,413 ) Total     46,663       44,253   Less current portion     27,921       26,222   Non-current portion   $ 18,742     $ 18,031

v3.25.0.1

Note 7 - Rental Equipment (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Property, Plant, and Equipment, Lessor Asset under Lease [Table Text Block]	December 31, 2024     September 30, 2024   Rental equipment, primarily wireless recording equipment   $ 49,220     $ 63,111   Accumulated depreciation     (36,740 )     (48,925 )     $ 12,480     $ 14,186

v3.25.0.1

Note 10 - Earnings Per Common Share (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended       December 31, 2024     December 31, 2023   Net income   $ 8,376     $ 12,679   Weighted average number of common share equivalents:                 Common shares used in basic earnings per share     12,753,378       13,251,360   Common share equivalents outstanding related to RSUs     124,009       209,156   Total weighted average common shares and common share equivalents used in diluted earnings per share     12,877,387       13,460,516   Earnings per share:                 Basic   $ 0.66     $ 0.96   Diluted   $ 0.65     $ 0.94

v3.25.0.1

Note 12 - Segment Information (Tables)	3 Months Ended
	Dec. 31, 2024
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended       December 31, 2024     December 31, 2023   Revenue:                 Smart Water   $ 7,288     $ 4,234   Energy Solutions     24,282       39,911   Intelligent Industrial     5,577       5,813   Corporate     76       74   Total   $ 37,223     $ 50,032                     Income (loss) from operations:                 Smart Water   $ 370     $ 1,095   Energy Solutions     13,282       15,068   Intelligent Industrial     (940 )     (191 ) Corporate     (4,877 )     (3,135 ) Total   $ 7,835     $ 12,837

v3.25.0.1

Note 1 - Significant Accounting Policies (Details Textual) $ in Thousands	3 Months Ended
	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2024 USD ($)
Cash and Cash Equivalents, at Carrying Value	$ 1,410		$ 6,895
Credit Terms for Trade Receivables (Day)	30 days
Extended Credit Terms for Trade Receivables (Day)	60 days
Customer One [Member]
Accounts and Financing Receivable, after Allowance for Credit Loss	$ 22,500
Revenue from Contract with Customer, Including Assessed Tax	$ 18,700	$ 31,700
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Number of Major Customers	1
Revenue from Contract with Customer Benchmark [Member] | Customer Concentration Risk [Member]
Number of Major Customers	1
Subsidiaries [Member] | Non-US [Member]
Cash and Cash Equivalents, at Carrying Value	$ 900		$ 1,100

v3.25.0.1

Note 2 - Revenue Recognition (Details Textual) - USD ($)	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Oct. 01, 2024	Sep. 30, 2024	Oct. 01, 2023
Contract with Customer, Liability, Current	$ 0			$ 0
Capitalized Contract Cost, Net, Current	0			$ 0
Contract with Customer, Liability, Revenue Recognized, Including Balance	0	$ 45,000
Contract with Customer, Liability, Cost of Revenue Recognized	0	0
Contract with Customer, Receivable, after Allowance for Credit Loss	12,000,000	37,600,000	$ 13,400,000		$ 10,900,000
Transferred over Time [Member]
Contract with Customer, Liability, Revenue Recognized	$ 0	$ 45,000

v3.25.0.1

Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Total revenue	$ 37,223	$ 50,032
Product [Member]
Total revenue	32,645	43,714
Operating Segments [Member] | Smart Water [Member]
Total revenue	7,288	4,234
Operating Segments [Member] | Smart Water [Member] | Product [Member]
Total revenue	7,288	4,234
Operating Segments [Member] | Energy Solutions [Member]
Total revenue	24,282	39,911
Operating Segments [Member] | Energy Solutions [Member] | Product [Member]
Total revenue	19,826	33,706
Operating Segments [Member] | Intelligent Industrial [Member]
Total revenue	5,577	5,813
Operating Segments [Member] | Intelligent Industrial [Member] | Product [Member]
Total revenue	$ 5,531	$ 5,774

v3.25.0.1

Note 2 - Revenue Recognition - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Total revenue	$ 37,223	$ 50,032
Product [Member]
Total revenue	32,645	43,714
Asia [Member] | Product [Member]
Total revenue	18,057	32,216
CANADA | Product [Member]
Total revenue	369	1,226
Europe [Member] | Product [Member]
Total revenue	1,398	1,378
MEXICO | Product [Member]
Total revenue	1,281	166
UNITED STATES | Product [Member]
Total revenue	11,423	8,418
Other [Member] | Product [Member]
Total revenue	$ 117	$ 310

v3.25.0.1

Note 3 - Short-term Investments (Details Textual) Pure in Thousands	3 Months Ended
	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2024
Debt Securities, Available-for-Sale, Unrealized Loss Position, Number of Positions	0		0
Debt Securities, Realized Gain (Loss)	$ 10,000	$ 0

v3.25.0.1

Note 3 - Short-term Investments - Summary of Short-term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Investments, amortized cost	$ 20,641	$ 30,170
Investments, unrealized gains	14	57
Investments, unrealized losses	0	0
Investments, fair value	20,655	30,227
Corporate Debt Securities [Member]
Investments, amortized cost	16,899	21,814
Investments, unrealized gains	7	35
Investments, unrealized losses	0	0
Investments, fair value	16,906	21,849
US Treasury and Government Short-Term Debt Securities [Member]
Investments, amortized cost	3,742	8,356
Investments, unrealized gains	7	22
Investments, unrealized losses	0	0
Investments, fair value	$ 3,749	$ 8,378

v3.25.0.1

Note 4 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2024	Aug. 30, 2024
Emerging Markets [Member]
Impairment of Intangible Assets, Finite-Lived	$ 2.8
Promissory Note [Member] | Subsidiary, Oil and Gas Product Manufacturing Operations in the Russian Federation [Member] | Discontinued Operations, Disposed of by Sale [Member]
Financing Receivable, before Allowance for Credit Loss		$ 3.5
Financing Receivable, Allowance for Credit Loss		0.9
Promissory Note [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Subsidiary, Oil and Gas Product Manufacturing Operations in the Russian Federation [Member] | Discontinued Operations, Disposed of by Sale [Member]
Financing Receivable, before Allowance for Credit Loss		3.5
Financing Receivable, Allowance for Credit Loss		$ 0.9

v3.25.0.1

Note 4 - Fair Value of Financial Instruments - Fair Value by Hierarchy (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Fair Value, Recurring [Member]
Total	$ 20,655	$ 30,227
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Total	0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Total	20,655	30,227
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Total	0	0
Fair Value, Nonrecurring [Member]
Total		2,600
Note receivable on sale of subsidiary		2,600
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Total		0
Note receivable on sale of subsidiary		0
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Total		0
Note receivable on sale of subsidiary		0
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Total		2,600
Note receivable on sale of subsidiary		2,600
Corporate Debt Securities [Member] | Fair Value, Recurring [Member]
Short term investment	16,906	21,849
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Short term investment	0	0
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Short term investment	16,906	21,849
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Short term investment	0	0
US Treasury and Government Short-Term Debt Securities [Member] | Fair Value, Recurring [Member]
Short term investment	3,749	8,378
US Treasury and Government Short-Term Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Short term investment	0	0
US Treasury and Government Short-Term Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Short term investment	3,749	8,378
US Treasury and Government Short-Term Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Short term investment	$ 0	0
Emerging Markets [Member] | Fair Value, Nonrecurring [Member]
Emerging Markets asset group intangible assets		0
Emerging Markets [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Emerging Markets asset group intangible assets		0
Emerging Markets [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Emerging Markets asset group intangible assets		0
Emerging Markets [Member] | Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Emerging Markets asset group intangible assets		$ 0

v3.25.0.1

Note 5 - Trade Accounts and Financing Receivables (Details Textual) - USD ($)		3 Months Ended
	Aug. 30, 2024	Dec. 31, 2024	Aug. 31, 2024
Promissory Note for Sale of Product [Member]
Financing Receivable, before Allowance for Credit Loss			$ 9,400,000
Notes Receivable, Interest Rate, Stated Percentage		9.50%	9.50%
Promissory Note [Member] | Discontinued Operations, Disposed of by Sale [Member] | Subsidiary, Oil and Gas Product Manufacturing Operations in the Russian Federation [Member]
Financing Receivable, before Allowance for Credit Loss	$ 3,500,000
Notes Receivable, Interest Rate, Stated Percentage	5.00%
Notes Receivable, Term (Year)	10 years
Notes Receivable, Periodic Payment	$ 37,000
Financing Receivable, Allowance for Credit Loss	$ 900,000
Wireless Seismic Equipment Customer [Member]
Sales-Type and Direct Financing Leases, Payment to be Received		$ 16,700,000
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount		600,000
Sales-type Lease, Interest Income		$ 100,000

v3.25.0.1

Note 5 - Trade Accounts and Financing Receivables - Schedule of Trade Accounts and Notes Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Trade accounts receivable	$ 19,510	$ 16,151
Allowance for credit losses	(4)	(4)	$ (92)	$ (125)
Total	19,506	16,147
Less current portion	(19,506)	(14,637)
Non-current trade accounts receivable	$ 0	$ 1,510

v3.25.0.1

Note 5 - Trade Accounts and Financing Receivables - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Beginning of period	$ 4	$ 125
Provision for credit losses	0	43
Recoveries	0	(72)
Write-offs	0	(7)
Currency translation	0	3
End of period	$ 4	$ 92

v3.25.0.1

Note 6 - Inventories (Details Textual) - USD ($)	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Sep. 30, 2024
Inventory Write-down	$ 506,000	$ 20,000
Inventory, Raw Materials, Gross	31,975,000		$ 30,941,000
Semi-finished Goods and Component Parts [Member]
Inventory, Raw Materials, Gross	$ 10,600,000		$ 8,600,000

v3.25.0.1

Note 6 - Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Finished goods	$ 18,692	$ 18,099
Work in process	5,506	3,626
Raw materials	31,975	30,941
Obsolescence reserve (net realizable value adjustment)	(9,510)	(8,413)
Total	46,663	44,253
Less current portion	27,921	26,222
Non-current portion	$ 18,742	$ 18,031

v3.25.0.1

Note 7 - Rental Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Sep. 30, 2024
Accounts Receivable, after Allowance for Credit Loss, Current	$ 19,506		$ 14,637
Lease Receivable [Member]
Lease Income	4,500	$ 6,200
Lessor, Operating Lease, Payment to be Received, Next Rolling 12 Months	$ 800
Maximum [Member] | Equipment [Member]
Lessor, Operating Lease, Term of Contract (Year)	1 year
Accounts Receivable, after Allowance for Credit Loss, Current	$ 4,700

v3.25.0.1

Note 7 - Rental Equipment - Rental Equipment (Details) - Equipment [Member] - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Rental equipment, primarily wireless recording equipment	$ 49,220	$ 63,111
Accumulated depreciation	(36,740)	(48,925)
Property, Plant, and Equipment, Lessor Asset under Lease, after Accumulated Depreciation	$ 12,480	$ 14,186

v3.25.0.1

Note 8 - Long-term Debt (Details Textual) - Woodforest National Bank [Member] - USD ($) $ in Thousands	Dec. 31, 2024	Jul. 26, 2023	Sep. 30, 2024
Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 15,000
Line of Credit Facility, Borrowing Base as Percent of Certain Accounts Receivable		80.00%
Line of Credit Facility, Borrowing Base As Percent of Eligible Foreign Insured Accounts		90.00%
Line of Credit Facility, Borrowing Base as Percent of Eligible Inventory		25.00%
Line of Credit Facility, Borrowing Base as Percent of Forced Liquidation Value of Certain Inventory		50.00%
Debt Instrument, Basis Spread on Variable Rate	7.75%	3.25%
Debt Instrument, Covenant, Minimum Consolidated Tangible Net Worth		$ 100,000
Debt Instrument, Covenant, Minimum Liquidity		$ 5,000
Long-Term Line of Credit	$ 0		$ 0
Line of Credit [Member] | Minimum [Member]
Current Ratio		2
Interest Coverage Ratio		1.5
Letter of Credit [Member]
Line of Credit Facility, Current Borrowing Capacity	12,100
Long-Term Line of Credit	$ 100

v3.25.0.1

Note 9 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Share-Based Payment Arrangement, Expense	$ 0.3	$ 0.4
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	143,500
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 13.29
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Grant Date Fair Value	$ 1.9
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)	4 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares)	359,215
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 3.4
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	4 years

v3.25.0.1

Note 10 - Earnings Per Common Share (Details Textual) - shares	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	235,206	212,217

v3.25.0.1

Note 10 - Earnings Per Common Share - Computation of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Net income	$ 8,376	$ 12,679
Common shares used in basic earnings per share (in shares)	12,753,378	13,251,360
Common share equivalents outstanding related to RSUs (in shares)	124,009	209,156
Total weighted average common shares and common share equivalents used in diluted earnings per share (in shares)	12,877,387	13,460,516
Basic (in dollars per share)	$ 0.66	$ 0.96
Diluted (in dollars per share)	$ 0.65	$ 0.94

v3.25.0.1

Note 11 - Commitments and Contingencies (Details Textual) - Aquana, LLC [Member] - USD ($) $ in Thousands	1 Months Ended
	Jul. 31, 2021	Dec. 31, 2024
Business Combination, Contingent Consideration, Earn Out Period (Year)	6 years
Business Combination, Required Continued Employment of Key Employees, Period (Year)	4 years
Business Combination, Contingent Consideration, Liability, Total		$ 0

v3.25.0.1

Note 12 - Segment Information (Details Textual)	3 Months Ended
	Dec. 31, 2024
Number of Operating Segments	3

v3.25.0.1

Note 12 - Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Revenue	$ 37,223	$ 50,032
Income (loss) from operations	7,835	12,837
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]
Revenue	76	74
Income (loss) from operations	(4,877)	(3,135)
Smart Water [Member] | Operating Segments [Member]
Revenue	7,288	4,234
Income (loss) from operations	370	1,095
Energy Solutions [Member] | Operating Segments [Member]
Revenue	24,282	39,911
Income (loss) from operations	13,282	15,068
Intelligent Industrial [Member] | Operating Segments [Member]
Revenue	5,577	5,813
Income (loss) from operations	$ (940)	$ (191)

v3.25.0.1

Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Expense (Benefit)	$ 113	$ 100

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