OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2026

5. OPERATING SEGMENTS

The Company’s chief operating decision maker (President and Chief Executive Officer) reviews the discrete segment financial information on a geographic basis for the U.S. operations and Canada Operations. As a result, our business has two reportable segments, US operations and Canada Operations. The revenue for both of the Company’s segments is generated by the same services, which utilize the

same type of equipment and personnel. The performance of our segments is evaluated primarily on Adjusted EBITDA. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income tax expense or benefit, (iii) depreciation and amortization and (iv) non-recurring and other charges, such as strategic transaction expenses or severance expenses.

Beginning in the year ended December 31, 2024, a portion of the management charges incurred by the U.S. segment were allocated to the Canadian segment based upon an activity level determined to be appropriate by management. These charges totaled approximately $138,000 and $160,000 for the three months ended March 31, 2026 and 2025, respectively.

The following tables present the Company’s income statements by operating segment (in thousands):


	Three Months Ended March 31, 2026
	USA Operations		Canada Operations		Consolidated
Operating revenues
Fee revenue	$	20,865	$	11,643	$	32,508
Reimbursable revenue		4,008		183		4,191
		24,873		11,826		36,699

Operating costs:
Fee operating expenses		13,882		5,548		19,430
Reimbursable operating expenses		4,008		183		4,191
Operating expenses		17,890		5,731		23,621
General and administrative		2,476		465		2,941
Depreciation and amortization		1,766		231		1,997
		22,132		6,427		28,559

Income from operations		2,741		5,399		8,140

Other income (expense):
Interest income		6		3		9
Interest expense		(484)		(17)		(501)
Other income (expense), net		23		—		23
Income before income tax		2,286		5,385		7,671
Income tax expense		(10)		—		(10)
Net income	$	2,276	$	5,385	$	7,661
Other Comprehensive loss:
Net unrealized loss on foreign exchange rate translation		-		(186)		(186)
Comprehensive income	$	2,276	$	5,199	$	7,475

Adjusted EBITDA	$	5,225	$	5,630	$	10,855


	Three Months Ended March 31, 2025
	USA Operations		Canada Operations		Consolidated
Operating revenues
Fee revenue	$	2,726	$	12,533	$	15,259
Reimbursable revenue		570		249		819
		3,296		12,782		16,078

Operating costs:
Fee operating expenses		4,615		6,345		10,960
Reimbursable operating expenses		570		249		819
Operating expenses		5,185		6,594		11,779
General and administrative		1,555		439		1,994
Depreciation and amortization		1,077		194		1,271
		7,817		7,227		15,044

(Loss) income from operations		(4,521)		5,555		1,034

Other income (expense):
Interest income		—		4		4
Interest expense		(63)		(13)		(76)
Other income (expense), net		41		(8)		33
(Loss) income before income tax		(4,543)		5,538		995
Income tax expense		(3)		—		(3)
Net (loss) income	$	(4,546)	$	5,538	$	992
Other Comprehensive loss:
Net unrealized loss on foreign exchange rate translation		—		(30)		(30)
Comprehensive (loss) income	$	(4,546)	$	5,508	$	962

Adjusted EBITDA	$	(3,403)	$	5,741	$	2,338

The following tables present the Company’s total assets, net property and equipment, capital expenditures and operating right of use assets disaggregated by operating segment (in thousands):


		March 31,		December 31,
		2026		2025
Total Assets
United States		$	48,650	$	48,577
Canada			15,746		7,433
Total Assets		$	64,396	$	56,010



		March 31,		December 31,
		2026		2025
Net Property and Equipment
United States		$	31,399	$	28,683
Canada			1,848		2,092
Total		$	33,247	$	30,775


		March 31,		March 31,
		2026		2025
Capital Expenditures
United States		$	4,484	$	—
Canada			8		—
Total Capital Expenditures		$	4,492	$	—


		March 31,		December 31,
		2026		2025
Net Operating Right-of-use Assets
United States		$	2,068	$	2,093
Canada			871		943
Total		$	2,939	$	3,036

The reconciliation of the Company’s Adjusted EBITDA to net income (loss) which are the most directly comparable GAAP financial measures, are provided in the following tables (in thousands):


	Three Months Ended March 31,
	2026 US		2026 CA		2026 Consol.		2025 US		2025 CA		2025 Consol.
Net income (loss)	$	2,276	$	5,385	$	7,661	$	(4,546)	$	5,538	$	992
Depreciation and amortization		1,766		231		1,997		1,077		194		1,271
Interest expense (income), net		478		14		492		63		9		72
Income tax expense		10		—		10		3		—		3
EBITDA		4,530		5,630		10,160		(3,403)		5,741		2,338
Strategic transaction costs		695		—		695		—		—		—
Adjusted EBITDA	$	5,225	$	5,630	$	10,855	$	(3,403)	$	5,741	$	2,338


	Three Months Ended March 31,
	2026 US		2026 CA		2026 Consol.		2025 US		2025 CA		2025 Consol.
Net cash provided by (used in) operating activities	$	1,899	$	(2,364)	$	(465)	$	1,544	$	208	$	1,752
Changes in working capital and other items		2,809		8,054		10,863		(4,530)		5,587		1,057
Non-cash adjustments to net income (loss)		(178)		(60)		(238)		(417)		(54)		(471)
EBITDA		4,530		5,630		10,160		(3,403)		5,741		2,338
Strategic transaction costs		695		—		695		—		—		—
Adjusted EBITDA	$	5,225	$	5,630	$	10,855	$	(3,403)	$	5,741	$	2,338