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COMMITMENTS AND CONTINGENCIES
6 Months Ended
Jun. 30, 2016
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

 

7. COMMITMENTS AND CONTINGENCIES

 

From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. Although the Company cannot predict the outcomes of any such legal proceedings, management believes that the resolution of pending legal actions will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity as the Company believes it is adequately indemnified and insured.

 

The Company experiences contractual disputes with its clients from time to time regarding the payment of invoices or other matters. While the Company seeks to minimize these disputes and maintain good relations with its clients, the Company has in the past experienced, and may in the future experience, disputes that could affect its revenues and results of operations in any period.

 

The Company has non-cancelable operating leases for office space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta.

 

On June 15, 2016, flash flooding occurred in Oklahoma, in which two of the Company’s data acquisition crews were operating. The flood waters destroyed some of the Company’s equipment. Although the Company cannot currently estimate the extent of the damage, the Company believes its insurance coverage is adequate to cover losses related to the flooding.