What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2025-03-04 compared with 2024-03-07 · 231 added, 211 removed, 860 unchanged (34% of the section changed)

26 unchanged sentences

A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

2 unchanged sentences

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that:

(1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Realizability of deferred tax assets

3 unchanged sentences

The Company analyzes its valuation allowance using historical and projected future operating results.

As of December 31, 2023, the Company had gross deferred tax assets of $197.4 million and a related valuation allowance of $3.2 million.

As of December 31, 2024, the Company recorded a full valuation allowance of $202.2 million against their deferred tax assets.

We identified the evaluation of the realizability of the Company’s deferred tax assets as a critical audit matter.

7 unchanged sentences

We compared the forecasted sales volumes to historical sales volumes, and we compared the Company’s historical forecasted sales volumes to actual sales volumes to assess the Company’s ability to accurately forecast.

Impairment of long-lived assets

As discussed in Note 2 to the consolidated financial statements, the Company evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable.

As discussed in Note 6, during the fourth quarter of 2023, the gross margin of the Trio ® segment decreased and the Company determined that sufficient indicators of potential impairment of the Trio ® segment long-lived assets existed.

The Company engaged a third-party valuation firm to determine the fair value of the Trio ® segment assets.

The carrying value of the Trio ® segment asset group exceeded its fair value, and the Company recognized impairment charges of $31.9 million.

Additionally, given the length of time since the West facility had been placed in care and maintenance, the Company engaged a third-party valuation firm to determine the fair value of the West assets.

The carrying value of the West asset group exceeded its fair value, and the Company recognized impairment charges of $9.9 million.

The fair value of the Trio ® segment assets and the West assets were determined primarily using the expected proceeds received in an orderly sale of individual assets.

We identified the evaluation of the fair value of certain assets included in the impairment of the Trio ® segment and West assets as a critical audit matter.

Challenging and subjective auditor judgment was required in assessing the liquidation factors used to develop the orderly liquidation values as there is not a liquid secondary market for certain specialized assets.

The evaluation of the liquidation factors required specialized skills and knowledge.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s long-lived asset impairment process.

This included a control related to the Company’s determination of the liquidation factors used to develop the orderly

liquidation values for certain assets.

We involved valuation professionals with specialized skills and knowledge, who assisted in:

• evaluating whether the valuation techniques used by the Company to develop the fair value for certain assets were reasonable and consistent with common valuation practice given the nature of the assets

• assessing the Company’s orderly liquidation values by developing independent estimates of the orderly liquidation values using third-party data and independently developed liquidation factors and comparing the amounts to the Company’s estimates.

We have served as the Company's auditor since 2007.

21 unchanged sentences

Accounts payable $ 8,616 $ 12,848

Income taxes payable 40 8

Accrued liabilities 9,483 14,061

6 unchanged sentences

Finance lease liabilities 1,838 1,451

Deferred other income, long-term 45,489 —

Other non-current liabilities 1,664 1,309

6 unchanged sentences

Additional paid-in capital 668,445 665,637

Retained earnings 40,790 76,463

(Accumulated deficit) retained earnings ( 172,055 ) 40,790

Less treasury stock, at cost ( 22,012 ) ( 22,012 )

12 unchanged sentences

Lower of cost or net realizable value inventory adjustments 3,957 6,492 —

Costs associated with abnormal production — — 5,973

Gross Margin 29,082 36,846 141,408

2 unchanged sentences

Impairment of long-lived assets 10,708 43,288 —

Loss (gain) on sale or disposal of assets 807 7,470 ( 2,542 )

Loss on sale or disposal of assets 1,952 807 7,470

Other operating income ( 5,215 ) ( 1,329 ) ( 1,465 )

Other operating expense 6,040 3,486 6,203

1 unchanged sentence

Other Income (Expense)

Equity in earnings of unconsolidated entities ( 486 ) 689 —

Equity in (loss) earnings of unconsolidated entities ( 299 ) ( 486 ) 689

Interest expense, net ( 112 ) — ( 101 )

1 unchanged sentence

Other income 45 95 305

Gain on extinguishment of debt

(Loss) Income Before Income Taxes ( 18,512 ) ( 44,062 ) 96,509

Income Tax Benefit (Expense) 8,389 ( 24,289 ) 208,869

Income Tax (Expense) Benefit ( 194,333 ) 8,389 ( 24,289 )

Net (Loss) Income $ ( 212,845 ) $ ( 35,673 ) $ 72,220

14 unchanged sentences

Stock-based compensation — — — 6,152 — 6,152

Purchase of treasury stock ( 608,657 ) — ( 22,012 ) — — ( 22,012 )

Vesting of restricted shares, net of common stock

3 unchanged sentences

Balance, December 31, 2022 12,687,822 13 ( 22,012 ) 660,614 76,463 715,078

Net income — — — — 72,220 72,220

Net loss — — — — ( 35,673 ) ( 35,673 )

Stock-based compensation — — — 6,534 — 6,534

Purchase of treasury stock ( 608,657 ) — ( 22,012 ) — — ( 22,012 )

Vesting of restricted shares, net of common stock

1 unchanged sentence

due upon vesting 119,494 — — ( 1,511 ) — ( 1,511 )

Exercise of stock options 10,718 — — 110 — 110

Balance, December 31, 2023 12,807,316 13 ( 22,012 ) 665,637 40,790 684,428

22 unchanged sentences

Impairment of long-lived assets 10,708 43,288 —

Loss (gain) on disposal of assets 807 7,470 ( 2,542 )

Loss on disposal of assets 1,952 807 7,470

Unrealized loss on equity investment 266 — —

Equity in earnings of unconsolidated entities 299 486 ( 689 )

Distribution of earnings from unconsolidated entities — 452 —

Gain on extinguishment of debt — — ( 10,113 )

Lower of cost or net realizable value inventory adjustments 3,957 6,492 —

7 unchanged sentences

compensation and benefits ( 3,519 ) ( 3,716 ) ( 3,596 )

Income tax payable 32 ( 33 ) 42

Operating lease liabilities ( 1,419 ) ( 1,735 ) ( 2,025 )

Deferred other income 42,744 5,000 —

Other liabilities 1,165 ( 826 ) ( 28,764 )

2 unchanged sentences

Additions to property, plant, equipment, mineral properties and other assets ( 38,706 ) ( 65,060 ) ( 68,696 )

Additions to intangible assets ( 200 ) — —

Proceeds from sale of property, plant, equipment, and mineral properties 4,839 125 58

4 unchanged sentences

Cash Flows from Financing Activities:

Repayment of long-term debt — — ( 15,000 )

Debt prepayment costs — — ( 505 )

Proceeds from borrowings on credit facility — 9,000 —

Repayments of borrowings on credit facility ( 4,000 ) ( 5,000 ) —

Payments of financing lease ( 597 ) — ( 1,258 )

Payments of financing leases ( 942 ) ( 597 ) —

Capitalized debt costs — — ( 1,007 )

2 unchanged sentences

Proceeds from exercise of stock options — — 110

Net cash provided by (used in) financing activities 1,892 ( 27,704 ) ( 47,282 )

Net cash (used in) provided by financing activities ( 5,717 ) 1,892 ( 27,704 )

Net Change in Cash, Cash Equivalents, and Restricted Cash 37,247 ( 14,433 ) ( 18,062 )

24 unchanged sentences

We sell a portion of water from these water rights to support oil and gas development in the Permian Basin.

We continually work to expand water sales.

In May 2019, we acquired certain land, water rights, federal and state grazing leases for cattle, and other related assets from Dinwiddie Cattle Company.

We also have certain land, water rights, federal grazing leases, and other related assets in southeast New Mexico.

We refer to these assets and operations as "Intrepid South." Due to the strategic location of Intrepid South, part of our long-term operating strategy is selling small parcels of land, including restricted use agreements of surface or subsurface rights, to customers, where such sales provide a solution to a customer's operations in the oil and gas industry.

15 unchanged sentences

There are numerous uncertainties inherent in estimating quantities of proven and probable reserves, projecting future rates of production, and the timing of development expenditures.

Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of

future operating costs.

The estimate of proven and probable mineral reserves, the related present value of estimated future cash flows, and useful lives of plant assets can affect various other items including depletion, the net carrying value of our mineral properties, the useful lives of related property, plant, and equipment, depreciation expense, and estimates associated with recoverability of long-lived assets and asset retirement obligations.

Future mineral prices may vary significantly from the prices in effect at the time the estimates are made, as may estimates of future operating costs.

mineral properties, the useful lives of related property, plant, and equipment, depreciation expense, and estimates associated with recoverability of long-lived assets and asset retirement obligations.

Specific to income tax items, we experience fluctuations in the valuation of the deferred tax assets and liabilities due to changing income tax rates and the blend of state tax rates.

35 unchanged sentences

The estimated useful lives of property, plant, and equipment are evaluated periodically as changes in estimates occur.

No depreciation is taken on assets

classified as construction in progress until the asset is placed into service.

No depreciation is taken on assets classified as construction in progress until the asset is placed into service.

Gains and losses are recorded upon retirement, sale, or disposal of assets.

Maintenance and repair costs are recognized as period costs when incurred.

Capitalized interest, to the extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress.

Capitalized interest, to the

extent of debt outstanding, is calculated and capitalized on assets that are being constructed, drilled, or built or that are otherwise classified as construction in progress.

Mineral properties and development costs, which are referred to collectively as mineral properties, include acquisition costs, the cost of drilling production wells, and the cost of other development work, all of which are capitalized.

36 unchanged sentences

We evaluate our finite-lived intangible assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable.

Such circumstances may include but are not limited to (1) significant adverse changes in the manner the asset is used, or (2) significant adverse changes in legal factors or economic conditions, including adverse actions by regulatory authorities.

Such circumstances may include but are not limited to (1) significant

adverse changes in the manner the asset is used, or (2) significant adverse changes in legal factors or economic conditions, including adverse actions by regulatory authorities.

Asset Retirement Obligations — Reclamation costs are initially recorded as a liability associated with the asset to be reclaimed or abandoned, based on applicable inflation assumptions and discount rates.

38 unchanged sentences

We recognize expense associated with awards that contain both a service condition and a market condition using the accelerated recognition method over the requisite service period of the award, which is generally the longer of the explicit service period or the derived service period (expected date the market condition is estimated to be achieved).

Recently Adopted Accounting Standards — In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2016-13, as amended by ASU No.

2019-04 and ASU No.

2019-10, Financial Instruments - (Topic 326):

Measurement of Credit Losses on Financial Instruments ("ASC Topic 326"), which we adopted on January 1, 2020.

ASC Topic 326 changed the way entities recognized impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life.

Because our trade receivables are short-term in nature, the adoption of this new standard did not have a material impact on our consolidated financial statements.

Recently Adopted Accounting Standards — In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" ("ASU 2023-07").

This new guidance:

(i) introduces a requirement to disclose significant segment expenses regularly provided to the chief operating decision maker ("CODM"), (ii) extends certain annual disclosures to interim periods, (iii) clarifies disclosure requirements for single reportable segment entities, (iv) permits more than one measure of segment profit or loss to be reported under certain conditions, and (v) requires disclosure of the title and position of the CODM.

The adoption of this standard did not have an impact on our results of operations, cash flows and financial condition, but resulted in additional disclosures for our reportable segments.

Pronouncements Issued But Not Yet Adopted — In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)" (ASU 2024-03").

ASU 2024-03 requires additional disclosures about the nature of expenses included in the income statement, such as purchases of inventory, employee compensation and depreciation.

ASU 2024-03 is effective for public business entities for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

We are currently evaluating the guidance and expect it to only impact disclosures with no impact to results of operations, cash flows and financial condition.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application.

The adoption of this standard did not have a material impact on our consolidated financial statements.

Pronouncements Issued But Not Yet Adopted —In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures" ("ASU 2023-09").

2 unchanged sentences

We are currently evaluating the guidance and expect it to only impact disclosures with no impact to results of operations, cash flows and financial condition.

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" ("ASU 2023-07").

This new guidance:

The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

The guidance applies retrospectively to all periods presented in the financial statements.

We are currently evaluating the guidance and expect it to only impact disclosures with no impact to results of operations, cash flows and financial condition.

Reclassifications of Prior Period Presentation — Certain prior period amounts have been reclassified in order to conform to the current period presentation.

These reclassifications had no effect on the reported results of operations.

Note 3 — EARNINGS PER SHARE

3 unchanged sentences

Potentially dilutive shares are excluded from the diluted weighted-average shares outstanding computation in periods in which they have an anti-dilutive effect.

The following table shows the calculation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):

The following table shows the calculation of basic and diluted (loss) earnings per share (in thousands, except per share amounts):

Year Ended December 31,

11 unchanged sentences

2024 2023 2022

Anti-dilutive effect of restricted shares 348 63 57

Anti-dilutive effect of restricted shares and units 287 348 63

Anti-dilutive effect of stock options outstanding 273 273 —

7 unchanged sentences

Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 41,898 $ 4,651 $ 19,084

Restricted cash included in "Other assets, net" on the balance sheet at December 31, 2023, 2022, and 2021 represents amounts whose use is restricted by contractual agreements with the BLM or the State of Utah as security to fund future reclamation obligations at our sites.

Restricted cash included in "Other current assets" on the balance sheet at December 31, 2023 and 2022 represents cash deposits with supply vendors.

Restricted cash included in "Other assets, net" on the balance sheet at December 31, 2024, 2023, and 2022 represents amounts whose use is restricted by contractual agreements with the BLM or the states of Utah and New Mexico as security to fund future reclamation obligations at our sites.

Restricted cash included in "Other current assets" on the Consolidated Balance Sheets at December 31, 2024, 2023, and 2022 represents cash deposits with supply vendors.

Note 5 — INVENTORY AND LONG-TERM PARTS INVENTORY

8 unchanged sentences

During the year ended December 31, 2024, we recorded $ 4.0 million in charges for lower of weighted average cost or estimated net realizable value on our finished goods product inventory.

During the years ended December 31, 2022 and 2021, we recorded no charges for lower of weighted average cost or estimated net realizable value on our finished goods product inventory.

During the year ended December 31, 2023, we recorded $ 6.5 million in charges for lower of weighted average cost or estimated net realizable value on our finished goods product inventory.

During the year ended December 31, 2022, we recorded no charges for lower of weighted average cost or estimated net realizable value on our finished goods product inventory.

Parts inventories are shown net of any required allowances.

22 unchanged sentences

Total incurred $ 37,361 $ 39,078 $ 34,711

During the year ended December 31, 2023, we recorded total impairment charges of $ 43.3 million, as discussed in more detail below.

During the years ended December 31, 2024, and 2023, we recorded total impairment charges of $ 10.7 million and $ 43.3 million, respectively, as discussed in more detail below.

During the year ended December 31, 2022, we recorded no impairment charges.

3 unchanged sentences

The fair value of our Trio ® segment assets was primarily determined using the expected proceeds received in an orderly sale of the individual assets.

The carrying value of our Trio ® segment asset group exceeded its fair value, and we recorded an impairment charge of $ 31.9 million.

The carrying value of our Trio ® segment asset group exceeded its fair value, and we recorded an impairment charge of $ 31.9 million during the fourth quarter of 2023.

For any Trio ® segment capital spending during 2024, we also estimated the fair value of those assets using the expected proceeds received in an orderly sale of those new assets and recorded an impairment of $ 4.4 million.

Our long-lived assets at our West facility have been in care and maintenance since July 2016.

2 unchanged sentences

The carrying value of the West assets exceeded the fair value and we recorded an impairment charge of $ 9.9 million during the fourth quarter of 2023.

Finally, during 2023, we recorded impairment charges of $ 1.5 million related to certain assets in our Oilfield Solutions Segment, specifically certain water recycling equipment and an investment in a non-operating interest in an oil and gas investment.

In 2024, in our Oilfield Solutions Segment we recorded impairment charges of $6.4 million mainly related to our frac sand opportunity and other oilfield related equipment based on an expected selling price of the assets.

Although we still hold the necessary permits for the sand operation, it is unlikely we will continue to pursue this opportunity as we focus on our core business.

During 2023, we recorded impairment charges of $ 1.5 million related to certain assets in our Oilfield Solutions Segment, specifically certain water recycling equipment and an investment in a non-operating interest in an oil and gas investment.

Note 7 — LEASES

1 unchanged sentence

We have operating leases for mining equipment, trucks, rail cars, and office space.

Our operating leases have remaining leases terms ranging from less than one year to four years.

Our finance leases have remaining terms ranging from less than one year to five years.

Our operating leases have remaining leases terms ranging from less than one year to seven years.

Our finance leases have remaining terms ranging from two years to five years.

Leases recorded on the balance sheet consist of the following (amounts in thousands):

7 unchanged sentences

Other information related to lease term and discount rate is as follows:

December 31, 2023 December 31, 2022

Weighted average remaining lease term - operating leases 3.9 years 1.7 years

3 unchanged sentences

The components of lease expense are as follows (amounts in thousands):

For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 For the Year Ended December 31, 2021

Year Ended December 31,

2024 2023 2022

Operating lease expense $ 1,443 $ 1,667 $ 1,904

2 unchanged sentences

Supplemental cash flow information related to leases was as follows (amounts in thousands):

For the Year Ended December 31, 2023 For the Year Ended December 31, 2022

Year Ended December 31,

Cash paid for amounts included in the measurement of lease liabilities

10 unchanged sentences

2028 138 413 551

2029 138 159 297

Thereafter 230 — 230

Total future minimum lease payments $ 1,692 3,158 4,850

7 unchanged sentences

We evaluate our water rights at least annually as of October 1 for impairment, or more frequently if circumstances require.

We have other intangible assets recorded at $ 6.4 million as of December 31, 2023 and 2022.

We have other intangible assets recorded at $ 6.6 million and $ 6.4 million as of December 31, 2024, and 2023, respectively.

We account for the other intangible assets as finite-lived intangible assets and amortize those intangible assets over the period of estimated benefit, using the straight-line method.

9 unchanged sentences

3,723 ( 1,058 ) 3,723 ( 871 )

Other intangibles 200 ( 7 ) — —

$ 6,617 $ ( 1,830 ) $ 6,417 $ ( 1,501 )

3 unchanged sentences

We estimate the annual amortization expense of intangible assets will be $ 0.3 million for each of the next five years.

Note 9 — OTHER LONG-TERM DEFERRED INCOME

Cooperative Development Agreement —In December 2023, we entered into the Third Amendment of Cooperative Development Agreement (the "Amendment") with XTO Holdings, LLC ("XTO Holdings") and XTO Delaware Basin LLC, as successors in interest to BOPCO, L.P.

("XTO Delaware Basin," and together with XTO Holdings, "XTO"), with an effective date of January 1, 2024 ("Amendment Date").

The Amendment further amends that certain Cooperative Development Agreement, by and between us, BOPCO, L.P.

and the other parties thereto, effective as of February 28, 2011 (as amended, including by the Amendment, the "CDA"), which was executed for the purpose of pursuing the cooperative development of potassium and oil and gas on certain lands.

The CDA restricts and limits the rights of Intrepid and XTO, as successors in interest to BOPCO, L.P., to explore and develop their respective interests, including limitations on the locations of wells.

Intrepid and XTO entered into the Amendment in an effort to further the cooperation, remove the restrictions and limitations, and allow for the efficient co-development of resources within the Designated Potash Area ("DPA") consistent with the United States Secretary of the Interior Order 3324.

Pursuant to the Amendment, among other things, we agreed to provide support to XTO for development and operation of XTO's oil and gas interests within the DPA.

As consideration under the Amendment, XTO agreed to pay us an initial fee of $ 50.0 million (the "Initial Fee").

We received a partial payment of $ 5.0 million of the Initial Fee in December 2023, and we received payment of the remaining $ 45.0 million from XTO in January 2024.

The Amendment further provides that we shall receive an additional one-time payment equal to $ 50.0 million (the "Access Fee"), which XTO will pay within 90 days upon the earlier occurrence of (i) the approval of the first new or expanded drilling island within a specific area to be used by XTO or (ii) within seven years of the anniversary of the Amendment Date.

XTO is also required to pay additional amounts to Intrepid as an "Access Realization Fee," up to a maximum of $ 100.0 million, (the "Access Realization Fee") in the event of certain additional drilling activities by XTO.

Because the cooperative development support we are providing under the CDA is not an output of our ordinary business activities, ASC Topic 606, Revenue from Contracts with Customers ("ASC 606") does not apply to the CDA.

However, we apply the principles in ASC 606 by analogy to determine amounts of other income to recognize.

Under ASC 606, we are required to identify the performance obligations in the CDA and to determine the transaction price.

The transaction price may include fixed consideration, variable consideration, or both.

Variable consideration may only be included in the transaction price if it is probable that a significant reversal of amounts recognized will not occur (referred to as the variable consideration constraint).

The Access Realization Fee is considered variable consideration.

Our performance obligation under the Amendment is to "stand-ready" to provide support to XTO, when and as needed, during the term of the Amendment.

We estimate the transaction price to be $ 100.0 million, which is comprised of the $ 50.0 million Initial Fee and the $ 50.0 million Access Fee.

We are not including any amounts of the Access Realization Fee in the transaction price because of the variable consideration constraint.

Since our performance obligation is a "stand-ready" obligation, we are recognizing the transaction price on a straight-line basis over the term of the Amendment which ends on February 28, 2046.

For the year ended December 31, 2024, we recorded other operating income of $ 4.5 million from the Amendment.

Because we have not yet been paid the Access Fee included in the transaction price, we recorded a long-term receivable for the amount of the Access Fee that we earned during the year ended December 31, 2024 of $ 2.3 million, which is included in "Other Assets" on the Consolidated Balance Sheets.

For the amount of the Initial Fee we earned during the year ended December 31, 2024, we reduced the "Deferred other income, long-term" liability recorded on our Consolidated Balance Sheets.

As of December 31, 2024, we had $ 2.3 million recorded in "Other current liabilities," and $ 45.5 million recorded in "Deferred other income, long-term" on the Consolidated Balance Sheets for the unearned portion of the Initial Fee.

As of December 31, 2023, we had $ 5.0 million recorded in "Other current liabilities," and zero recorded in "Deferred other income, long-term" on the Consolidated Balance Sheets.

Note 10 — DEBT

4 unchanged sentences

We occasionally borrow and repay amounts under the facility for near-term working capital needs or other purposes and may do so in the future.

For the year ended December 31, 2024, we made no borrowings and made $ 4.0 million in repayments under the facility.

For the year ended December 31, 2023, we made $ 9.0 million in borrowings and made $ 5.0 million in repayments under the facility.

For the year ended December 31, 2022, we made no borrowings and made no repayments under the facility.

For the year ended December 31, 2021, we made no borrowings and made $ 29.8 million in repayments under the facility.

As of December 31, 2024, we had no borrowings outstanding and no outstanding letters of credit under the facility.

As of December 31, 2023, we had $ 4.0 million in borrowings outstanding and no outstanding letters of credit under the facility.

As of December 31, 2022, and 2021, we had no borrowings outstanding and $ 1.0 million in an outstanding letter of credit under the facility.

As of December 31, 2022, we had no borrowings outstanding and $ 1.0 million in an outstanding letter of credit under the facility.

We had $ 150.0 million available under the facility as of December 31, 2024.

We were in compliance with the applicable covenants under the facility as of December 31, 2024.

PPP Loan —In April 2020, we received a $ 10 million loan under the CARES Act Paycheck Protection Program (the "PPP").

We submitted our application for forgiveness of the full amount of the loan in November 2020.

In June 2021, we received notice that the SBA had remitted funds to our bank to fully repay our PPP loan and accrued interest.

Accordingly, we recognized a gain of $ 10.1 million related to the forgiveness of the PPP loan and the associated accrued interest on the loan.

Senior Notes —In June 2021 we repaid the remaining $ 15.0 million of principal outstanding on our Series B Senior Notes and satisfied all obligations under the related Note Purchase Agreement.

In connection with this repayment, the Company paid in aggregate approximately $ 15.6 million, which consisted of (i) $ 15.0 million of remaining aggregate principal amount of Series B Senior Notes, (ii) approximately $ 0.1 million of accrued interest and (iii) a "make-whole" premium of $ 0.5 million.

As a result of the repayment, the Note Purchase Agreement was terminated.

Interest Expense —Interest expense is recorded net of any capitalized interest associated with investments in capital projects.

5 unchanged sentences

Commitment fee on unused credit facility 229 226 155

Make-whole payments — — 505

Amortization of deferred financing costs 301 301 265

27 unchanged sentences

In August 2022, our customer notified us that they were terminating the water sales agreement and in September 2022 we refunded the customer's prepayment balance of $ 32.6 million.

See Note 14 — Commitments and Contingencies below for additional information regarding our water rights and repayment of the customer's prepayment balance.

Our contract liability activity for the years ended December 31, 2024, 2023, and 2022 is shown below (in thousands):

44 unchanged sentences

We accrue cash bonus expense related to the current year's performance and we expect to pay in March 2025 a cash bonus to our employees under our 2024 bonus program.

We met our performance metrics related to our 2022 cash bonus program and paid a cash bonus in March 2023.

We met our performance metrics related to our 2021 cash bonus program and paid a cash bonus in March 2022.

We met certain performance metrics related to our 2023 cash bonus program and paid a cash bonus in March 2024.

We met certain performance metrics related to our 2022 cash bonus program and paid a cash bonus in March 2023.

Equity Incentive Compensation Plan —Our Board of Directors and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc.

Amended and Restated Equity Incentive Plan (the "Plan").

We have issued restricted shares, common stock, performance units, and non-qualified stock option awards under the Plan.

As of December 31, 2023, 340,924 restricted shares and options to purchase 273,206 shares of common stock were outstanding.

We have issued restricted shares, common stock, restricted stock units, and non-qualified stock option awards under the Plan.

As of December 31, 2024, 319,035 restricted shares, 111,285 restricted stock units, and options to purchase 273,206 shares of common stock were outstanding.

As of December 31, 2024, approximately 0.8 million shares of common stock remained available for issuance under the Plan.

6 unchanged sentences

The restricted shares provide voting and regular dividend rights to the holders of the awards.

In 2024, the Compensation Committee granted an aggregate of 196,809 restricted shares to executives and key employees under the Plan as part of either our annual equity award program, to new employees or to employees that assumed additional responsibilities during the year.

The awards vest over three years , subject to continued service.

In May 2024, the Compensation Committee granted an aggregate of 20,739 shares of restricted shares to non-employee members of the Board of Directors.

The restricted shares vest one year after the date of the grant, subject to continued service.

In September 2024, the Compensation Committee granted special one-time grants of an aggregate of 6,282 shares of restricted stock to non-employee directors as additional compensation, which will vest on the earlier of the date a member of the Board resigns, May 25, 2025, or the day before the 2025 Annual Meeting of Stockholders.

In 2023, the Compensation Committee granted 130,975 restricted shares to executives and key employees under the Plan as part of our annual equity award program.

The awards vest over three years , subject to continued employment or service.

In 2023, the Compensation Committee granted 22,226 restricted shares to non-employee members of the Board of Directors.

The Compensation Committee granted an aggregate 22,226 restricted shares to non-employee members of the Board of Directors in 2023.

The restricted shares vest one year after the date of grant, subject to continued service.

In 2022, the Compensation Committee granted in aggregate 53,202 restricted shares to executives and key employees under the Plan as part of our annual equity award program.

The awards vest over three years , subject to continued service.

The Compensation Committee also granted an aggregate 6,635 restricted shares to non-employee members of the Board of Directors in 2022.

The restricted shares vest one year after the date of grant, subject to continued service.

We use the closing price of our common stock on the grant date as the grant date fair value for these awards.

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• Restricted Shares with Service and Market Conditions — Under the Plan in March 2024, the Compensation Committee granted restricted shares of common stock with service and market conditions to certain members of our executive team as part of their annual compensation package.

The grants vest over three years from the grant date if the volume-weighted average share closing price for 20 consecutive days has met one of the applicable price achievement targets;

provided, however, that no vesting would occur if the volume-weighted average closing price for 20 consecutive days has not met one or more applicable price achievement goals on or before March 17, 2026.

The share price achievement goals of these awards have not been met as of December 31, 2023.

Under the Plan in March 2023, the Compensation Committee also granted restricted shares of common stock with service and market conditions to another member of our executive team as part of his annual compensation package.

This grant vests over two years from the quarter ended in which the volume-weighted average share closing price for 20 consecutive trading days has met one of the applicable price achievement targets;

provided, however, that no vesting would occur if the volume-weighted average closing price for 20 consecutive trading days has not met one or more applicable price achievement goals on or before March 17, 2027.

The share price achievement goal for this award has not been met as of December 31, 2023.

Under the Plan in March 2022, the Compensation Committee granted restricted shares of common stock with service and market conditions to certain members of our executive team as part of their annual compensation

The grants vest over three years from the grant date if the average share closing price for 20 consecutive days has met one of the

applicable price achievement targets;

provided, however, that no vesting would occur if the average closing share price for 20 consecutive days has not met one or more applicable price achievement goals on or before March 17, 2027.

All share price achievement goals for these awards have been met as of December 31, 2024, and the shares will vest on the grant date anniversary in 2025, 2026, and 2027.

Under the Plan in March 2023, the Compensation Committee granted restricted shares of common stock with service and market conditions to certain members of our executive team as part of their annual compensation package.

The grants vest over three years from the grant date if the average share closing price for 20 consecutive days has met one of the applicable price achievement targets;

provided, however, that no vesting would occur if the average closing share price for 20 consecutive days has not met one or more applicable price achievement goals on or before March 17, 2026.

The share price achievement goals for these awards have not been met as of December 31, 2024.

Under the Plan in March 2023, the Compensation Committee also granted restricted shares of common stock with service and market conditions to our former chief executive officer as part of his annual compensation package.

On September 30, 2024, our chief executive officer resigned from all positions with the Company and its subsidiaries and affiliates, and all unvested shares of restricted stock of common stock granted under this award were forfeited.

The grants vest over three years from the quarter ended in which the volume-weighted average share closing price for 20 consecutive days has met one of the applicable price achievement targets;

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The share price achievement goals of these awards were met in 2022, and 1,737 shares vested in 2024.

Under the Plan in March 2022, the Compensation Committee granted restricted shares of common stock with service and market conditions to a member of our executive team as part of his annual compensation package.

The share price achievement goals of these awards were met in 2022, and 14,512 shares vested in 2023.

Under the Plan in March 2021, the Compensation Committee granted restricted shares of common stock with service and market conditions to certain members of our executive team as part of their annual compensation package.

The grants vest over three years on the grant date anniversary;

Under the Plan in March 2022, the Compensation Committee granted restricted shares of common stock with service and market conditions to our former chief executive officer as part of his annual compensation package.

This grant vested over two years from the quarter ended in which the volume-weighted average share closing price for 20 consecutive trading days has met one of the applicable price achievement targets;

The share price achievement goals of these awards were met in 2021, and 886 shares vested in 2023.

Under the plan in 2021, the Compensation Committee granted restricted shares of common stock with service and market conditions to a member of our executive team as part of his annual compensation package.

The 2021 grant vests over two years from the quarter ended in which the volume weighted average share closing price for 20 consecutive trading days has met one of the applicable price achievement targets;

The market conditions for this award were met in 2022, and 24,152 shares vested during 2023.

During 2023, share price achievement targets were met for shares granted to a member of the executive team in 2020 and 47,259 shares vested in 2023.

The share price achievement goals of these awards were met in 2022, and 14,513 shares vested in June 2024.

We used a Monte Carlo simulation valuation model to estimate the fair value of these awards on the grant date.

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Restricted shares of common stock, end of period 319,035 $ 31.23

Restricted Stock Units with Service and Market Conditions

In November 2024, the Board of Directors (the "Board") appointed a new chief executive officer and in connection with that appointment, in December 2024, the new chief executive officer was granted two restricted stock unit (“RSU”) awards.

Both of the RSU awards contain a service condition and a market condition, with one RSU award containing an absolute total stockholder return (“TSR”) market condition (referred to as the “aTSR") and the other RSU award containing a relative TSR market condition (referred to as the “rTSR”).

Under both the aTSR and rTSR awards, any RSUs that vest shall be settled through the issuance of an equal number of shares of our common stock as soon as administratively practicable.

Under the terms of the aTSR award, up to 19,575 RSUs may be earned based on the achievement of certain absolute TSR hurdles on or prior to December 31, 2028.

If a TSR hurdle is achieved on or before the one-year anniversary of the grant date, the RSUs earned will vest in three equal installments on the one-, two-, and three-year anniversaries of the grant date.

If any TSR hurdles are achieved after the one-year anniversary of the grant date but before the two-year anniversary of the grant date, one-third of the RSUs earned will vest immediately and the remaining earned RSUs will vest equally on the two- and three-year anniversaries of grant date.

For any TSR hurdles met after the two-year anniversary of the grant date, two-thirds of the RSU's earned will vest immediately and one third will vest on the third-year anniversary of the grant date.

If a TSR hurdle is achieved after the three-year anniversary of the grant date and on or prior to December 31, 2028, the RSUs earned will vest immediately.

Any RSUs that have not been earned as of December 31, 2028, are forfeited.

RSUs under the aTSR award do not have any stockholder rights of holders of shares of common stock.

Under the terms of the rTSR, RSUs may be earned based on the Company’s TSR percentile rank compared to each company included in the Russell 2000 Index as of January 1, 2025.

The period under which the relative performance is measured is from January 1, 2025, through December 31, 2027 (the “Performance Period”).

If the Company’s TSR percentile rank is in the 20th percentile rank or below, no RSUs will vest.

If the Company’s TSR percentile rank is in the 90th percentile or above, up to 91,710 RSUs are eligible to vest, subject to a negative TSR cap and a max payout cap.

If the Company’s TSR is negative, then, irrespective of the Company’s relative TSR percentile rank, the maximum number of RSUs that may be earned is 45,855 .

Under the max payout cap, the total fair market value of the shares of common stock issuable may not be greater than $ 6.6 million.

The grantee is entitled to receive an additional amount in cash equal to the value of all dividends and distributions made during the Performance Period for any vested RSUs.

The RSUs do not have any other stockholder rights of holders of shares of common stock.

We used a Monte Carlo simulation valuation model to estimate the fair value of the aTSR and rTSR awards on the grant date.

We record compensation expense monthly using the accelerated recognition method over the longer of the explicit or derived service period of the award.

The weighted-average grant date fair value per share using the maximum number of shares that can be earned under the aTSR and rTSR awards issued in 2024 was $ 22.63 and $ 14.89 , respectively.

We used the following assumptions to compute the weighted-average grant date fair market value of RSUs granted with service and market conditions granted in 2024:

Absolute TSR RSU Award Relative TSR RSU Award

Closing stock price on grant date $ 27.39 $ 27.39

Risk free interest rate 4.1 % 4.1 %

Dividend yield — % — %

Estimated volatility 67.8 % 62.2 %

Expected life 4.1 years 3.1 years

Non-Qualified Stock Option Activity

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1 The intrinsic value of a stock option is the amount by which the market value exceeds the exercise price as of the end of the period presented.

No stock options were exercised during 2023.

No stock options were exercised during 2024 and 2023.

The total intrinsic value of exercised options to purchase stock during 2022 was $ 0.6 million.

The total intrinsic value of exercised options to purchase stock during 2021 was immaterial.

Note 13 — INCOME TAXES

Note 14 — INCOME TAX

We account for income taxes in accordance with ASC Topic 740, Income Taxes .

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State 47,766 67 3,893

Total income tax (benefit) expense $ ( 8,389 ) $ 24,289 $ ( 208,869 )

Total income tax expense (benefit) $ 194,333 $ ( 8,389 ) $ 24,289

A reconciliation of the federal statutory income tax rate of 21 % to our effective rate is as follows (in thousands, except percentages):

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Change in valuation allowance 199,006 1,121 —

PPP loan forgiveness — — ( 2,115 )

Change in federal and state tax rates 159 238 ( 125 )

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Other 297 213 ( 978 )

Net (benefit) expense as calculated $ ( 8,389 ) $ 24,289 $ ( 208,869 )

Net expense (benefit) as calculated $ 194,333 $ ( 8,389 ) $ 24,289

Effective tax rate ( 1,049.8 ) % 19.0 % 25.2 %

Our effective tax rate for the years ended December 31, 2023, differs from the U.S.

Our effective tax rate for the year ended December 31, 2024, differs from the U.S.

federal statutory rate due to the change in our valuation allowance.

Our effective tax rates for the years ended December 31, 2022, and 2021, differs from the U.S.

federal statutory rate due to state income taxes and the change in our valuation allowance, respectively.

Our effective tax rate for the year ended December 31, 2023, differs from the U.S.

federal statutory rate due to the change in our valuation allowance.

Our effective tax rate for the year ended December 31, 2022, differs from the U.S.

federal statutory rate due to state income taxes.

As of December 31, 2024, and 2023, we had gross deferred tax assets of $ 202.2 million and $ 197.4 million, respectively.

During the year ended December 31, 2023, our deferred tax assets increased primarily from impairments booked against our property, plant, equipment, and mineral properties.

During the year ended December 31, 2024, our deferred tax assets increased primarily from increases in the amounts of our federal and state net operating loss carryforwards.

Included in gross deferred tax assets as of December 31, 2024, were approximately $ 221.0 million of federal net operating loss carryforwards, which expire beginning in 2034, and approximately $ 289.1 million of state net operating loss carryforwards, the majority of which begin to expire in 2033.

Also included are $ 1.9 million of federal research and development credits which begin to expire in 2031.

The federal loss carryforward could be subject to examination by the tax authorities within three years after the carryforward is utilized, while the state net operating loss carryforwards could be subject to examination by the tax authorities generally within three and four years after the carryforward is utilized, depending on jurisdiction.

The federal loss carryforward could be subject to examination by the tax authorities within three years after the carryforward is utilized, while the state net operating loss carryforwards could be subject to examination by the tax authorities generally within three or four years after the carryforward is utilized, depending on jurisdiction.

Significant components of our deferred tax assets and liabilities were as follows (in thousands):

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In making this assessment, we consider the scheduled reversal of deferred tax liabilities, our ability to carry back the deferred tax asset, projected future taxable income, and tax planning strategies.

As of December 31, 2023, we were in a cumulative three-year income position.

The cumulative three-year income position is significant positive evidence when evaluating the realizability of our deferred tax assets.

Additionally, industry trends and forecasts as well as internal forecasts of future business show sustained amounts of taxable income.

Thus, we have concluded that it is more likely than not that most of our $ 197.4 million of deferred tax assets will be realized.

During 2023, our valuation allowance increased as our forecast changed regarding the amount of state net operating losses that will be used before expiration.

As of December 31, 2024, we were in a cumulative three-year income position as a result of income generated during the year ended December 31, 2022.

Since the 2022 income year will cease to be part of the cumulative three-year test in the next twelve months, we forecast that by the end of 2025, we will be in a three-year cumulative loss position which is significant negative evidence that is difficult to overcome when evaluating the realizability of our deferred tax assets.

We have concluded that it is more likely than not that our $ 202.2 million of deferred tax assets will not be realized and we recorded an additional valuation allowance against our deferred tax assets of $ 199.0 million in the fourth quarter of 2024.

Our deferred tax assets, net of the valuation allowance at December 31, 2024, and 2023, were $ 0.0 million and $ 194.2 million, respectively.

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Note 15 — COMMITMENTS AND CONTINGENCIES

Reclamation Deposits and Surety Bonds —As of December 31, 2023, and 2022, we had $ 26.8 million and $ 24.6 million, respectively, of security placed principally with the State of Utah and the Bureau of Land Management for eventual reclamation of its various facilities.

Of this total requirement, as of December 31, 2023, and 2022, $ 0.5 million consisted of long-term restricted cash deposits reflected in "Other" long-term assets on the balance sheet, and $ 26.3 million and $ 24.1 million, respectively, was secured by surety bonds issued by an insurer.

Reclamation Deposits and Surety Bonds —As of December 31, 2024, and 2023, we had $ 27.0 million and $ 26.8 million, respectively, of security placed principally with the states of Utah and New Mexico and the Bureau of Land Management for eventual reclamation of its various facilities.

Of this total requirement, as of December 31, 2024, and 2023, $ 0.6 million and $ 0.5 million, respectively, consisted of long-term restricted cash deposits reflected in "Other" long-term assets on the balance sheet, and $ 26.4 million and $ 26.3 million, respectively, was secured by surety bonds issued by an insurer.

The surety bonds are held in place by an annual fee paid to the issuer.

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While there are uncertainties in predicting the outcome of any claim or legal action, except as noted below, we believe the ultimate resolution of these claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows.

In March 17, 2022, following an expedited inter se proceeding, a court entered a subfile order and partial final judgment and decree ("Order") determining the validity of our claim to 20,000 acre feet of Pecos River surface water rights.

The Order found that our predecessors in interest had forfeited all but approximately 5,800 acre feet of water per year, and that of the remaining 5,800 acre feet of water that had not been forfeited, all but 150 acre feet of water had been abandoned prior to 2017.

The Order limited our right to 150 acre fee per annum of water for industrial-salt processing use.

On March 17, 2022, the Fifth Judicial District Court in New Mexico entered an order that found that of the 20,000 acre feet of water per year we claimed, our predecessors in interest had forfeited all but approximately 5,800 acre feet of water per year, and that of the remaining 5,800 acre-feet of water that had not been forfeited, all but 150 acre feet of water had been abandoned prior to 2017 (the “Order”).

The Order limited our right to 150 acre feet per year of water for industrial-salt processing use.

We appealed the Order to the New Mexico Court of Appeals ("NMCA"), which, on July 7, 2023, affirmed the Order.

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The NMSC agreed to review the NMCA's abandonment determination on February 7, 2024.

In 2017 and 2018 the New Mexico Office of the State Engineer (“OSE”) had granted us preliminary authorizations to sell approximately 5,700 acre feet of water per year from our Pecos River water rights.

The preliminary authorizations allowed for water sales to begin immediately, subject to repayment if the underlying water rights are ultimately found to be invalid.

If our appeal of the adjudication court's ruling is unsuccessful, we may have to repay for the water we sold under the preliminary authorizations.

The case is fully briefed, and we are awaiting a decision from the NMSC, which we expect to receive in the first half of 2025.

In 2017 and 2018 the New Mexico Office of the State Engineer (“OSE”) granted us preliminary authorizations to sell approximately 5,700 acre feet of water per year from our Pecos River water rights.

The preliminary authorizations allowed water sales to begin immediately, subject to repayment if the underlying water rights were ultimately found to be invalid.

If our appeal to the NMSC is unsuccessful, we may have to repay for the water we sold under the preliminary authorizations.

Repayment of this water can be up to two times the amount of water removed from the river.

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If we are not able to repay in-kind due to the lack of remaining water rights or logistical constraints, we may need to purchase water to meet this repayment or be subject to a cash repayment.

We cannot reasonably estimate the potential volume, timing, or form of repayment, if any, and have not recorded a loss contingency in our statement of operations related to this legal matter.

In March 2021, we received notice from a customer of a default under the terms of a long-term sales contract because we have not been able to deliver water to diversion points specified in the contract.

We had relied primarily upon our Pecos River water rights to deliver water under this contract, the majority of which are currently unavailable due to the factors discussed above.

Under this contract we have received quarterly installments of approximately $ 3.9 million for the future delivery of water to the customer.

In April 2021, we agreed to suspend the second quarter and future quarterly installments due from the customer as we continued to work to resolve the issue.

In December 2021, we amended our long-term sales agreement with the customer due to our inability to deliver water.

In the amendment, we agreed to suspend all rights and obligations of both parties under the agreement until July 1, 2022.

During the suspension period, we had no obligation to deliver water and our customer has no obligation to take water, if available, or make quarterly payments to us.

In August 2022, the customer notified us that they were terminating the long-term sales contract and in September 2022, we refunded the $ 32.6 million outstanding contract liability we had with this customer.

See Note 11—Revenue above for additional information.

In August 2021, NGL Energy Partners (NGL), our partner in the Joint Marketing Agreement (“JMA”) that was entered into in May 2019, filed suit against us alleging, amongst other items, we overcharged the JMA for various operating costs and that we used third party water to service certain fracs when JMA water should have been used in those fracs.

On June 22, 2022, the parties entered into a settlement agreement and the lawsuit was dismissed with prejudice on June 29, 2022.

The settlement did not have a material impact on our results of operations and the JMA was terminated effective May 1, 2022.

As of December 31, 2023, we have estimated contingent liabilities recorded in "Other current liabilities" on the consolidated balance sheets of $ 3.4 million, mainly related to the potential underpayment of royalties in 2012 to 2016 and potential royalties on water revenues in 2019 to 2022.

As of December 31, 2022 we had estimated contingent liabilities recorded in "Other current liabilities" on the consolidated balance sheets of $ 4.2 million, mainly related to a trespass issue at Intrepid South and the potential underpayment of royalties in 2012 to 2016.

We are subject to other claims and legal actions in the ordinary course of business.

Legal costs are expensed as incurred.

While there are uncertainties in predicting the outcome of any claim or legal action, we believe that the ultimate resolution of these other claims or actions is not reasonably likely to have a material adverse effect on our financial condition, results of operations, or cash flows.

Because of the uncertainty surrounding the potential volume of water we may have to repay, the timing and the form of repayment, if any, we cannot reasonably estimate the amount of the potential liability and have not recorded a loss contingency in our statement of operations related to this legal matter.

Other Contingent Liabilities

As of December 31, 2024, we have estimated contingent liabilities recorded in "Other current liabilities" on the consolidated balance sheets of $ 4.8 million, mainly related to the potential underpayment of royalties in 2012 to 2016.

As of December 31, 2023, we had estimated contingent liabilities recorded in "Other current liabilities" on the consolidated balance sheets of $ 3.4 million, mainly related to the potential underpayment of royalties in 2012 to 2016 and potential royalties on water revenues in 2019 to 2022.

Note 16 — FAIR VALUE MEASUREMENTS

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Held-to-Maturity Investments —As of December 31, 2024, and 2023, we owned debt investment securities classified as held-to-maturity because we have the intent and ability to hold these investments to maturity.

Our held-to-maturity debt investment securities consist of investment grade corporate bonds and U.S.

Our held-to-maturity debt investment securities consisted of investment grade corporate bonds and U.S.

government issued bonds.

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Total $ 954 $ 1 $ ( 4 ) $ 951

Equity Investments without a Readily Determinable Fair Value —As of December 31, 2023, 2022, and 2021, we had a $ 3.5 million non-controlling interest in W.D.

Von Gonten Laboratories ("WDVGL").

This investment is an equity investment without a readily determinable fair value and is recorded at cost with adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer, or impairment (a Level 3 input), and is included in "Other assets, net" on the Consolidated Balance Sheets.

We did not record any adjustments to the $ 3.5 million carrying value of the investment during 2023, 2022 or 2021.

In July 2022, WDVGL entered into a purchase agreement with another company (“Acquiror”), a foreign issuer whose shares are traded on the Nasdaq Capital Market (“Nasdaq”).

Under the terms of the purchase agreement, WDVGL would be combined with the consulting business owned by W.D.

Investments in Equity Securities —In May 2020, we acquired a non-controlling equity investment in W.D.

Von Gonten Laboratories ("WDVGL") for $ 3.5 million.

We initially accounted for this investment as an equity investment without a readily determinable fair value and elected to measure our investment, as permitted by GAAP, at cost plus or minus any adjustments for observable changes in prices resulting from orderly transactions for the identical or a similar investment of the same issuer or impairment.

In July 2022, WDVGL entered into an agreement (the “Purchase Agreement”) with National Energy Services Reunited Corporation (“NESR”), a British Virgin Islands corporation headquartered in Houston, Texas.

Under the terms of the Purchase Agreement, WDVGL was combined with the consulting business owned by W.D.

Von Gonten (“Consulting”) to form a new entity, W.D.

Von Gonten Engineering, LLC (“Engineering”), and Acquiror would then purchase Engineering in a majority stock transaction at an agreed upon selling price.

Stock received from the sale of Engineering would be distributed to investors in WDVGL and Consulting.

Acquiror delivered equity shares and a nominal amount of cash to WDVGL for purchase of Engineering in July 2022, with the number of shares equal to the selling price divided by an assumed $ 10 share price.

At the time the purchase agreement was signed, the Acquiror was working to file restated financial statements for the fiscal years ending December 31, 2018, 2019 and 2020.

On A pril 27, 2023, Acquiror disclosed it had not been able to file its Annual Report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC by April 25, 2023, which was the deadline set by the Nasdaq Hearings Panel in connection with a delisting proceeding, and Acquiror's shares were subsequently delisted from Nasdaq.

Acquiror also disclosed on April 27, 2023 that it has shifted its focus to filing audited financial statements with the SEC for the fiscal years ended December 31, 2020, 2021 and 2022 to regain compliance with Nasdaq listing standards before the end of 2023.

Pursuant to the purchase agreement with Engineering, if the Acquiror did not file current financial statements with the SEC by June 30, 2023, Engineering had the option to terminate the purchase agreement, beginning on July 1, 2023.

Although Acquiror did not file current financial statements by June 30, 2023, Engineering agreed to proceed with the purchase agreement to allow Acquiror additional time to file updated financial statements.

On December 29, 2023, Acquiror disclosed it had filed its audited financial statements for the years ended December 31, 2022, 2021, and 2020, with the SEC.

We have not impaired our investment in WDVGL because our share of the estimated selling price of Engineering exceeds the carrying value of our investment in WDVGL.

We continue to monitor the investment for impairment.

If the purchase transaction is not finalized, we may need to impair our investment in WDVGL.

Equity Method Investments —We have committed to invest $ 4.0 million in cash as a limited partner for a 16 % interest in PEP Ovation, LP ("Ovation"), of which we had invested $ 2.0 million, $ 3.2 million and $ 1.1 million of cash as of December 31, 2023, 2022, and 2021, respectively.

This investment is accounted for under the equity method whereby we recognize our proportional share of the income or loss from our investment in Ovation on a one-quarter lag and is included in "Long-term investments" on the Condensed Consolidated Balance Sheets.

For the year ended December 31, 2023, our proportional share of Ovation's net loss was $ 0.5 million.

Von Gonten Engineering, LLC (“Engineering”), and NESR purchased Engineering in a majority stock transaction at an agreed upon selling price.

NESR stock received from the sale of Engineering was distributed to investors in WDVGL and Consulting in August 2024.

In February 2023, we received $ 0.2 million in cash for our investment in WDVGL.

Initially, we recorded that cash received as a liability because we were required to return the cash to WDVGL if the sale of Engineering to NESR was not finalized.

The sale of Engineering to NESR has since been finalized and the recorded value of our investment in WDVG was reduced to $ 3.3 million, which is the aggregate cost basis of the 336,773 shares of NESR stock we received in August 2024 related to the sale of WDVGL.

NESR trades on the over-the-counter “Pink Market.” As required by Accounting Standards Codification ("ASC") Topic 321 - Investments-Equity Securities ("ASC 321"), equity securities are valued at fair value in the Consolidated Balance Sheet at December 31, 2024, and unrealized gains and losses for investments in equity securities are included in the Consolidated Statement of Operations.

At December 31, 2024, the fair value of our investment in NESR equity securities is $ 3.0 million, and is included in "Long-term investments" on the Consolidated Balance Sheet at December 31, 2024, and the unrealized loss of $ 0.3 million is included in "Other income" on the Consolidated Statement of Operations for the year ended December 31, 2024.

Equity Method Investments —We are a limited partner with a 16 % interest in PEP Ovation, LP ("Ovation") as of December 31, 2024, and 2023.

For the years ended December 31, 2024, and 2023, our proportional share of Ovation's net loss was $ 0.3 million and $ 0.5 million, respectively.

Note 17 — EMPLOYEE BENEFITS

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The reportable segments are determined by management based on several factors including the types of products and services sold, production processes, markets served and the financial information available for our chief operating decision maker.

We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative

expenses, among others, to the respective segments.

We evaluate performance based on the gross margins of the respective business segments and do not allocate corporate selling and administrative expenses, among others, to the respective segments.

Intersegment sales prices are market-based and are eliminated in the "Other" column.

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3,957 — — — 3,957

Gross Margin (Deficit) $ 35,049 $ ( 3,995 ) $ 5,792 $ — $ 36,846

Gross Margin $ 17,420 $ 4,438 $ 7,224 $ — $ 29,082

Depreciation, depletion, and amortization incurred 2

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97,452 74,308 15,518 — 187,278

Gross Margin $ 94,769 $ 39,123 $ 7,516 $ — $ 141,408

Lower of cost or NRV inventory adjustments

2,709 3,783 — — 6,492

Gross Margin (Deficit) $ 35,049 $ ( 3,995 ) $ 5,792 $ — $ 36,846

Depreciation, depletion, and amortization incurred 2

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76,524 54,600 21,152 — 152,276

Costs associated with abnormal production and other

5,973 — — — 5,973

Gross Margin (Deficit) $ 35,845 $ 16,442 $ 3,477 $ — $ 55,764

Gross Margin $ 94,769 $ 39,123 $ 7,516 $ — $ 141,408

Depreciation, depletion, and amortization incurred 2

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2 Depreciation, depletion, and amortization incurred for potash and Trio ® excludes depreciation, depletion, and amortization absorbed in or (relieved from) inventory.

Our Chief Executive Officer is our chief operating decision maker who uses segment gross margins to assess the performance of each segment.

Significant components of cost of goods sold are also provided to the chief operating decision maker to further evaluate segment performance and are shown below:

Year Ended December 31, 2024 Potash Trio ®

Oilfield Solutions Total

Labor and benefits $ 25,827 $ 31,626 $ 4,260 $ 61,713

Maintenance 5,861 8,224 1,029 15,114

Utilities and fuel 7,916 4,555 865 13,336

Operating supplies 5,969 8,952 295 15,216

Depreciation 21,808 4,488 4,499 30,795

16,593 12,135 6,513 35,241

Total cost of goods sold $ 83,974 $ 69,980 $ 17,461 $ 171,415

Year Ended December 31, 2023 Potash Trio ®

Oilfield Solutions Total

Labor and benefits $ 29,174 $ 36,441 $ 5,162 $ 70,777

Maintenance 7,041 7,719 881 15,641

Utilities and fuel 9,627 7,117 1,085 17,829

Operating supplies 6,977 7,407 494 14,878

Depreciation 26,271 4,741 3,879 34,891

18,362 10,883 4,017 33,262

Total cost of goods sold $ 97,452 $ 74,308 $ 15,518 $ 187,278

Year Ended December 31, 2022 Potash Trio ®

Oilfield Solutions Total

Labor and benefits $ 21,773 $ 24,562 $ 4,399 $ 50,734

Maintenance 5,105 6,663 771 12,539

Utilities and fuel 7,569 4,671 1,503 13,743

Operating supplies 5,211 5,579 349 11,139

Depreciation 20,444 3,607 3,241 27,292

16,422 9,518 10,889 36,829

Total cost of goods sold $ 76,524 $ 54,600 $ 21,152 $ 152,276

1 Other expense includes property taxes, insurance, royalties, and other miscellaneous expenses.

The following table shows the reconciliation of reportable segment sales to consolidated sales and the reconciliation of segment gross margins to consolidated income before taxes (in thousands):

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Impairment of long-lived assets 10,708 43,288 —

Loss (gain) on disposal of assets 807 7,470 ( 2,542 )

Loss on disposal of assets 1,952 807 7,470

Accretion of asset retirement obligation 2,489 2,140 1,961

Other operating income ( 5,215 ) ( 1,329 ) ( 1,465 )

Other operating expense 6,040 3,486 6,203

1 unchanged sentence

Interest expense, net 112 — 101

Gain on extinguishment of debt — — ( 10,113 )

Interest income ( 1,712 ) ( 298 ) ( 176 )

1 unchanged sentence

(Loss) income before income taxes $ ( 18,512 ) $ ( 44,062 ) $ 96,509

In each of the last three years ended December 31, 2024, 2023, and 2022, 94 %, 95 %, and 94 %, respectively, of our total sales were sold to customers located in the U.S.

All of our long-lived assets are located in the U.S.

Total assets are not presented for each reportable segment as they are not reviewed by, nor otherwise regularly provided to, the chief operating decision maker.

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Our industrial sales are significantly influenced by oil and gas drilling activity.

In 2023 and 2022, we had one customer in our potash and Trio ® segments that accounted for approximately $ 33.4 million and $ 35.0 million of our total consolidated revenues, respectively.

In 2024, 2023, and 2022, we had one customer in our potash and Trio ® segments that accounted for approximately $ 25.6 million, $ 33.4 million, and $ 35.0 million of our total consolidated revenues, respectively.

"Risks Related to Financial Position, Indebtedness and Additional Capital Needs - The loss or substantial decline in revenue from larger customers or certain industries could have a material adverse effect on our revenues, profitability, and liquidity."

In 2021, no customer accounted for more than 10% of our sales.

In each of the last three years ended December 31, 2023, 2022, and 2021, 95 %, 94 %, and 97 %, respectively, of our total sales were sold to customers located in the U.S.

All of our long-lived assets are located in the U.S.

We maintain cash accounts with several financial institutions.

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Note 21 — SHARE REPURCHASE PROGRAM

In February of 2022, our Board of Directors approved a $ 35 million share repurchase program.

In February 2022, our Board of Directors approved a $ 35 million share repurchase program.

Under the share repurchase program, we may repurchase shares from time to time in the open market or in privately negotiated transactions.

1 unchanged sentence

We may suspend or discontinue the share repurchase program at any time.

We made no repurchases of shares of our common stock for the twelve months ended December 31, 2023.

We made no repurchases of shares of our common stock for the twelve months ended December 31, 2024, and 2023.

In 2022, we repurchased 608,657 shares of our common stock and paid $ 22.0 million under the share repurchase program.

As of December 31, 2024, we have approximately $ 13.0 million of remaining availability under the share repurchase program.

— SUBSEQUENT EVENT

On December 12, 2023, we entered into the Third Amendment of Cooperative Development Agreement (the “Amendment”) with XTO Holdings, LLC (“XTO Holdings”) and XTO Delaware Basin, LLC, as successors in interest to BOPCO, L.P.

(“XTO Delaware Basin,” and together with XTO Holdings, “XTO”).

The Amendment had an effective date of January 1, 2024 (“Amendment Date”).

The Amendment further amends that certain Cooperative Development Agreement, by and between us, BOPCO, L.P.

and the other parties thereto, effective as of February 28, 2011 (as amended, including by the Amendment, the “CDA”), which was executed for the purpose of cooperative development of certain lands for potassium and oil and gas.

The Cooperative Development Agreement restricts and limits the rights of us and XTO, as successors in interest to BOPCO, L.P.

to explore and develop their respective interests, including limitations on the location of wells.

We and XTO entered into the Amendment in an effort to further the cooperation, remove the restrictions and limitations, and allow for the efficient co-development of resources within the Designated Potash Area (“DPA”) consistent with the United States Secretary of the Interior Order 3324.

Pursuant to the Amendment, among other things, we agree to support and not oppose XTO’s development and operation of XTO’s oil and gas interests within the DPA.

As consideration under the Amendment, on December 12, 2023 we received an initial payment of $ 5.0 million, which is included in "Accrued liabilities" on the December 31, 2023 Consolidated Balance Sheet.

On January 2, 2024, we received an additional $ 45.0 million initial payment from XTO.

The Amendment also provides that we shall receive an additional one-time payment equal to $ 50.0 million as an “Access Fee,” which XTO will pay within 90 days upon the earlier occurrence of (i) the approval of the first new or expanded drilling island within a specific area to be used by XTO or (ii) within seven ( 7 ) years of the anniversary of the Amendment Date.

XTO is also required to pay additional amounts to Intrepid as an “Access Realization Fee,” up to a maximum amount of $ 100.0 million, in the event of certain additional drilling activities by XTO.

The CDA also contains other customary representations, warranties, covenants, and dispute resolution provisions.

For the twelve months ended December 31, 2023, we have recorded no revenue associated with the Amendment.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

22 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data