$KLNG

Deep Down, Inc.

CIK:0001110607|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 9,229	$ 5,183	$ 17,404	$ 10,433
Costs and expenses
Cost of sales	6,248	3,454	11,810	7,052
Selling, general and administrative	2,303	1,964	4,648	3,693
Total costs and expenses	8,551	5,418	16,458	10,745
Operating income (loss)	678	(235)	946	(312)
Interest income (expense), net	(14)	2	(8)	16
Other income, net	10	291	5	331
Gain on sale of property, plant and equipment	0	11	1	12
Income before income tax expense	674	69	944	47
Income tax expense	22	8	51	15
Net income	$ 652	$ 61	$ 893	$ 32
Net income per share:
Basic	$ 0.05	$ 0.01	$ 0.07	$ 0.00
Fully diluted	$ 0.05	$ 0.00	$ 0.07	$ 0.00
Weighted-average shares outstanding:
Basic	12,256	12,088	12,227	12,088
Fully diluted	12,795	12,474	12,749	12,489

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 893	$ 32
Adjustments to reconcile net income to net cash used in operating activities:
Share-based compensation	305	149
Depreciation and amortization	359	303
Gain on sale of property, plant and equipment	(1)	(12)
Non-cash lease (income) expense	(22)	65
Changes in operating assets and liabilities:
Accounts receivable, net	(2,478)	(2,461)
Contract assets	(32)	1,918
Inventory	(365)	(64)
Prepaid expenses and other current assets	(95)	(124)
Other assets, net	17	129
Accounts payable and accrued expenses	783	(428)
Contract liabilities	(80)	87
Other liabilities	12	(2)
Net cash (used in) operating activities	(704)	(408)
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	1	12
Capitalized software development costs	(89)	(118)
Patent acquisitions, net of write-offs	(14)	0
Purchases of property, plant and equipment	(1,570)	(714)
Capitalized patent cost	(78)	0
Net cash (used in) investing activities	(1,750)	(820)
Cash flows from financing activities:
Principal payments under finance lease obligations	(3)	(1)
Proceeds from factoring arrangement	375	0
Payments on factoring arrangement	(916)	0
Borrowings under revolving credit facility	4,563	0
Payments on revolving credit facility	(2,163)	0
Net cash provided by (used in) financing activities	1,856	(1)
Effect of exchange rate changes on cash	(15)	0
Change in cash	(613)	(1,229)
Cash, beginning of period	1,535	3,422
Cash, end of period	922	2,193
Supplemental disclosure of non-cash investing activities:
Property, plant and equipment acquired via debt	733	137
Operating lease - right-of-use assets obtained in exchange for lease liabilities	0	1,159
Finance lease - right-of-use assets obtained in exchange for lease liabilities	0	53
Cash paid during period for:
Interest	27	8
Taxes	$ 50	$ 9

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash	$ 922	$ 1,535
Accounts receivable, net of allowance for credit losses of $569 as of June 30, 2026 and December 31, 2025	7,276	4,796
Inventory	719	354
Contract assets	2,890	2,857
Prepaid expenses and other current assets	498	403
Total current assets	12,305	9,945
Property, plant and equipment, net	5,634	3,642
Intangibles, net	456	306
Right-of-use operating lease assets	5,405	5,770
Right-of-use finance lease assets	43	53
Other assets	80	98
Total assets	23,923	19,814
Current liabilities:
Accounts payable and accrued expenses	4,565	3,050
Contract liabilities	206	172
Deferred revenue	201	315
Borrowing under factoring arrangement	0	541
Borrowings under credit facilities	2,400
Other liabilities	160	143
Current operating lease liabilities	957	899
Current finance lease liabilities	20	20
Total current liabilities	8,509	5,140
Other liabilities, long-term	22	24
Operating lease liability, long-term	5,206	5,658
Finance lease liability, long-term	25	29
Total liabilities	13,762	10,851
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock, 24,500,000 shares authorized at $0.001 par value, 16,506,010 and 16,206,010 issued at June 30, 2026 and December 31, 2025, respectively	16	16
Additional paid-in capital	74,901	74,618
Treasury stock, 3,989,036 and 4,017,808 shares at June 30, 2026 and December 31, 2025 respectively, at cost	(3,113)	(3,135)
Accumulated other comprehensive income loss	(15)	(15)
Accumulated deficit	(61,628)	(62,521)
Total stockholders' equity	10,161	8,963
Total liabilities and stockholders' equity	$ 23,923	$ 19,814