Drilling Tools International Corp

For the period ended Jun 30, 2024. Filed Aug 9, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 9, 2024

DTI$1.48-6.3%Stored close · as of Nov 10, 2026

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Contents

Condensed Consolidated Statements of Cash Flows

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
(In thousands)	2024	2023
Cash flows from operating activities:
Net income	$3,492	$6,638
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	11,047	9,732
Amortization of deferred financing costs	139	37
Non-cash lease expense	2,315	2,275
Provision for excess and obsolete inventory	—	19
Provision for excess and obsolete property and equipment	179	238
Provision for credit losses	(16)	418
Deferred tax expense	(400)	2,008
Gain on sale of property	(51)	(68)
Loss on asset disposal	9	—
Unrealized loss on interest rate swap	—	91
Unrealized gain on equity securities	(729)	(387)
Gross profit from sale of lost-in-hole equipment	(4,987)	(9,146)
Stock-based compensation expense	1,064	3,986
Changes in operating assets and liabilities:
Accounts receivable, net	(1,449)	(1,777)
Prepaid expenses and other current assets	1,958	(1,531)
Inventories, net	(49)	1,409
Operating lease liabilities	(2,226)	(2,179)
Accounts payable	(2,158)	1,982
Accrued expenses and other current liabilities	(3,745)	316
Net cash flows from operating activities	4,391	14,061
Cash flows from investing activities:
Acquisition of a business, net of cash acquired	(18,261)	—
Proceeds from sale of property and equipment	59	126
Purchase of property, plant, and equipment	(16,312)	(24,617)
Proceeds from sale of lost-in-hole equipment	7,786	11,103
Net cash from investing activities	(26,728)	(13,388)
Cash flows from financing activities:
Proceeds from Merger and PIPE Financing, net of transaction costs	—	23,162
Payment of deferred financing costs	(672)	(281)
Proceeds from revolving line of credit	1,469	71,646
Payments on revolving line of credit	(1,469)	(89,995)
Proceeds from Term Loan	25,000	—
Repayment of Term Loan	(833)	—
Payments to holders of DTIH redeemable convertible preferred stock in connection with retiring their DTI stock upon the Merger	—	(194)
Net cash from financing activities	23,495	4,338
Effect of changes in foreign exchange rates	(377)	(207)
Net change in cash	781	4,804
Cash at beginning of period	6,003	2,352
Cash at end of period	$6,784	$7,156
Supplemental cash flow information:
Cash paid for interest	$660	$851
Cash paid for income taxes	$256	$2,139
Non-cash investing and financing activities:
Fair value of CTG liabilities assumed in CTG Acquisition	$3,162	$—
ROU assets obtained in exchange for operating lease liabilities	$5,054	$2,635
Net exercise of stock options	$255	$—
Shares withheld from exercise of stock options for payment of taxes	$35	$—
Purchases of inventory included in accounts payable and accrued expenses and other current liabilities	$5,082	$4,076
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities	$1,402	$7,640
Deferred financing fees included in accounts payable	$49	$2
Non-cash directors and officers insurance	$—	$1,472
Non-cash Merger financing	$—	$2,000
Exchange of DTIH redeemable convertible preferred stock for DTIC Common Stock in connection with the Merger	$—	$7,193
Issuance of DTIC Common Stock to former holders of DTIH redeemable convertible preferred stock in connection with Exchange Agreements	$—	$10,805
Accretion of redeemable convertible preferred stock to redemption value	$—	$314

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