DAWSON GEOPHYSICAL CO Debt Disclosure

7.           Debt

Equify Revolving Credit Note (related party)

On October 31, 2025, Dawson Geophysical Company (the “Company”) and Dawson Operating LLC, a Texas limited liability company and a wholly owned subsidiary of the Company (“Dawson Operating” and together with the Company, the “Borrowers”), entered into a Revolving Credit Note (the “Revolving Credit Note”) in favor of Equify Financial, as lender (the “Lender”). Dan Wilks and Farris Wilks, together with certain of their affiliates, collectively hold a controlling interest in the Company and in Equify.

Pursuant to the Revolving Credit Note, the Borrowers, jointly and severally, may, from time to time until November 20, 2028, request loans from the Lender for up to an aggregate principal amount of $5,035,032. The loans outstanding under the Revolving Credit Note are payable by the Borrowers in thirty-six (36) monthly installments of principal in the amount of $139,862, together with all accrued and unpaid interest on the outstanding principal balance thereunder, commencing on December 20, 2025, and continuing thereafter until the maturity date. The interest rate applicable to loans outstanding under the Revolving Credit Note is a rate per annum equal to 13%.

The maximum borrowing limit under the Revolving Credit Note is initially $5,035,032, and such amount is reduced by $139,862 on each monthly payment date. During the year ended December 31, 2025, the Company borrowed and repaid approximately $3.5 million on this revolving credit note. As of December 31, 2025 the Company accrued interest of $40,000 associated with this borrowing. As of December 31, 2025 the amount available to draw on this revolving credit note was approximately $4.9 million, and there were no amounts outstanding. The Borrowers may prepay up to 75% of the then outstanding principal and accrued but unpaid interest at any time without a prepayment fee.

The obligations under the Revolving Credit Note are secured by a lien on the Company’s vibrator energy source vehicles, pursuant to a Security Agreement by and between the Company and Equify, dated as of October 31, 2025.

Letters of Credit

As of December 31, 2025, the Company had one letter of credit in the amount of $370,000 to support insurance policies for the Company. The letter of credit is secured by a certificate of deposit with First Financial Bank.

Other Indebtedness

As of December 31, 2025 the Company has five Geospace notes payable related to equipment purchases discussed in Note 3, totaling $14.7 million.

As of December 31, 2025, the Company has two notes payable to finance companies for various insurance premiums totaling $258,000.

In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Consolidated Balance Sheets as of December 31, 2025 and 2024 include finance lease liabilities of $2.6 million and $2.4 million, respectively.

The company did not have any restricted cash during the year ended December 31, 2025. During the year ended December 31, 2024 the Company had a restricted cash deposit of $5 million that was released on May 2, 2024.

Maturities of Debt

The Company’s aggregate principal amount of outstanding notes payable and the interest rates and monthly payments as of December 31, 2025 and 2024 are as follows (in thousands):

​

​

The Company’s aggregate maturities of notes payable at December 31, 2025 are as follows (in thousands):

​

​

The Company’s aggregate maturities of finance leases at December 31, 2025 are as follows (in thousands):

​

Interest rates on these leases ranged from 4.86% to 8.74%.