Intrepid Potash, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors Intrepid Potash, Inc.: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting We have audited the accompanying consolidated balance sheets of Intrepid Potash, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes and financial statement schedule II (collectively, the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. 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 company; 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. 76 Table of Contents Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters 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) relates 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 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 As discussed in Notes 2 and 14 to the consolidated financial statements, the Company records a valuation allowance if it is deemed more likely than not deferred tax assets will not be realized in full. The ultimate realization of deferred tax assets is dependent upon the generation of certain types of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, the Company considers the scheduled reversal of deferred tax liabilities, their ability to carry back the deferred tax assets, projected future taxable income, and tax planning strategies. The Company analyzes its valuation allowance using historical and projected future operating results. As of December 31, 2025, the Company recorded a full valuation allowance of $198.9 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. This evaluation required especially challenging auditor judgment to assess the Company’s estimated future taxable income over the period in which the deferred tax assets will generally reverse. Specifically, the Company’s assumptions of projected future taxable income were based primarily on prices for products subject to market volatility and forecasted sales volumes. Changes in these assumptions could impact the realization of the Company’s deferred tax assets and the amount of the valuation allowance. 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 income tax process. This included controls related to the development of assumptions in determining the projected future taxable income, including the development of prices for products and forecasted sales volumes. We reviewed the reasonableness of management’s projections of future profitability, including the prices and forecasted sales volumes, considering the historical profitability of the company. /s/ KPMG LLP We have served as the Company's auditor since 2007. Denver, Colorado March 5, 2026 77 Table of Contents INTREPID POTASH, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) December 31, 2025 2024 ASSETS Cash and cash equivalents $ 83,537 $ 41,309 Short-term investments — 989 Accounts receivable: Trade, net 33,776 22,465 Other receivables, net 159 763 Inventory, net 112,305 112,968 Other current assets 5,355 5,269 Total current assets 235,132 183,763 Property, plant, equipment, and mineral properties, net 334,773 344,338 Water rights 19,184 19,184 Long-term parts inventory, net 31,506 33,775 Long-term investments 179 3,571 Other assets, net 11,405 9,889 Total Assets $ 632,179 $ 594,520 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 9,844 $ 8,616 Accrued liabilities 10,596 9,483 Accrued employee compensation and benefits 12,651 9,842 Other current liabilities 20,564 10,062 Total current liabilities 53,655 38,003 Asset retirement obligation 38,841 32,354 Operating lease liabilities 1,550 780 Finance lease liabilities 1,741 1,838 Deferred other income, long-term 43,233 45,489 Other non-current liabilities 1,730 1,664 Total Liabilities 140,750 120,128 Commitments and Contingencies Common stock, $ 0.001 par value; 40,000,000 shares authorized: and 13,131,663 and 12,908,078 shares outstanding at December 31, 2025 and 2024, respectively 14 14 Additional paid-in capital 674,297 668,445 Accumulated deficit ( 160,870 ) ( 172,055 ) Less treasury stock, at cost ( 22,012 ) ( 22,012 ) Total Stockholders' Equity 491,429 474,392 Total Liabilities and Stockholders' Equity $ 632,179 $ 594,520 See accompanying notes to these consolidated financial statements. 78 Table of Contents INTREPID POTASH, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) Year Ended December 31, 2025 2024 2023 Sales $ 298,328 $ 254,694 $ 279,083 Less: Freight costs 48,277 38,765 37,635 Warehousing and handling costs 12,215 11,475 10,832 Cost of goods sold 178,578 171,415 187,278 Lower of cost or net realizable value inventory adjustments 4,442 3,957 6,492 Gross Margin 54,816 29,082 36,846 Selling and administrative 36,705 32,966 32,423 Accretion of asset retirement obligation 2,603 2,489 2,140 Impairment of long-lived assets 1,866 10,708 43,288 (Gain) loss on sale or disposal of assets ( 1,175 ) 1,952 807 Other operating income ( 4,811 ) ( 5,215 ) ( 1,329 ) Other operating expense 8,963 6,040 3,486 Operating Income (Loss) 10,665 ( 19,858 ) ( 43,969 ) Other Income (Expense) Equity in loss of unconsolidated entities ( 374 ) ( 299 ) ( 486 ) Interest expense, net ( 232 ) ( 112 ) — Interest income 2,432 1,712 298 Other (expense) income ( 762 ) 45 95 Income (Loss) Before Income Taxes 11,729 ( 18,512 ) ( 44,062 ) Income Tax (Expense) Benefit ( 544 ) ( 194,333 ) 8,389 Net Income (Loss) $ 11,185 $ ( 212,845 ) $ ( 35,673 ) Weighted Average Shares Outstanding: Basic 13,014,205 12,880,026 12,760,937 Diluted 13,174,001 12,880,026 12,760,937 Earnings (Loss) Per Share: Basic $ 0.86 $ ( 16.53 ) $ ( 2.80 ) Diluted $ 0.85 $ ( 16.53 ) $ ( 2.80 ) See accompanying notes to these consolidated financial statements. 79 Table of Contents INTREPID POTASH, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (In thousands, except share amounts) Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings (Accumulated) Deficit Total Stockholders' Equity Shares Amount Balance, December 31, 2022 12,687,822 $ 13 $ ( 22,012 ) $ 660,614 $ 76,463 $ 715,078 Net loss — — — — ( 35,673 ) ( 35,673 ) Stock-based compensation — — — 6,534 — 6,534 Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting 119,494 — — ( 1,511 ) — ( 1,511 ) Balance, December 31, 2023 12,807,316 13 ( 22,012 ) 665,637 40,790 684,428 Net loss — — — — ( 212,845 ) ( 212,845 ) Stock-based compensation — — — 3,583 — 3,583 Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting 100,762 1 — ( 775 ) — ( 774 ) Balance, December 31, 2024 12,908,078 14 ( 22,012 ) 668,445 ( 172,055 ) 474,392 Net income — — — — 11,185 11,185 Stock-based compensation — — — 5,085 — 5,085 Vesting of restricted shares, net of common stock used to fund employee income tax withholding due upon vesting 107,592 — — ( 1,075 ) — ( 1,075 ) Exercise of stock options 115,993 — — 1,842 — 1,842 Balance, December 31, 2025 13,131,663 $ 14 $ ( 22,012 ) $ 674,297 $ ( 160,870 ) $ 491,429 See accompanying notes to these consolidated financial statements. 80 Table of Contents INTREPID POTASH, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2025 2024 2023 Cash Flows from Operating Activities: Adjustments to reconcile net income (loss) to net cash provided by operating activities: Net income (loss) $ 11,185 $ ( 212,845 ) $ ( 35,673 ) Depreciation, depletion, and amortization 40,241 37,361 39,078 Amortization of intangible assets 328 328 322 Accretion of asset retirement obligation 2,603 2,489 2,140 Amortization of deferred financing costs 301 301 301 Stock-based compensation 5,085 3,583 6,534 Reserve for obsolescence 2,422 1,843 509 Allowance for doubtful accounts 62 120 110 Impairment of long-lived assets 1,866 10,708 43,288 (Gain) loss on sale or disposal of assets ( 1,175 ) 1,952 807 Loss on equity investment 888 266 — Equity in earnings of unconsolidated entities 374 299 486 Distribution of earnings from unconsolidated entities — — 452 Lower of cost or net realizable value inventory adjustments 4,442 3,957 6,492 Changes in operating assets and liabilities: Trade accounts receivable, net ( 11,373 ) ( 508 ) 4,550 Other receivables, net 593 642 ( 701 ) Inventory, net ( 3,932 ) ( 10,833 ) ( 11,861 ) Other current assets ( 2,214 ) ( 362 ) ( 3,857 ) Deferred tax assets, net — 194,223 ( 8,471 ) Accounts payable, accrued liabilities, and accrued employee compensation and benefits 4,724 ( 3,519 ) ( 3,716 ) Operating lease liabilities ( 1,111 ) ( 1,419 ) ( 1,735 ) Deferred other income ( 2,256 ) 42,744 5,000 Other liabilities 2,726 1,165 ( 826 ) Net cash provided by operating activities 55,779 72,495 43,229 Cash Flows from Investing Activities: Additions to property, plant, equipment, mineral properties and other assets ( 30,239 ) ( 38,706 ) ( 65,060 ) Deposit received 8,000 — — Additions to intangible assets — ( 200 ) — Proceeds from sale of property, plant, equipment, and mineral properties 5,844 4,839 125 Purchase of investments — — ( 1,415 ) Proceeds from redemptions/maturities of investments 1,000 3,000 6,000 Other investing, net 2,129 1,536 796 Net cash used in investing activities ( 13,266 ) ( 29,531 ) ( 59,554 ) Cash Flows from Financing Activities: Proceeds from borrowings on credit facility — — 9,000 Repayments of borrowings on credit facility — ( 4,000 ) ( 5,000 ) Payments of financing leases ( 1,043 ) ( 942 ) ( 597 ) Employee tax withholding paid for restricted shares upon vesting ( 1,075 ) ( 775 ) ( 1,511 ) Proceeds from exercise of stock options 1,842 — — Net cash (used in) provided by financing activities ( 276 ) ( 5,717 ) 1,892 Net Change in Cash, Cash Equivalents, and Restricted Cash 42,237 37,247 ( 14,433 ) Cash, Cash Equivalents, and Restricted Cash, beginning of period 41,898 4,651 19,084 Cash, Cash Equivalents, and Restricted Cash, end of period $ 84,135 $ 41,898 $ 4,651 Supplemental disclosure of cash flow information Net cash paid during the period for: Interest $ 463 $ 503 $ 411 Income taxes $ 487 $ 9 $ 179 Accrued purchases for property, plant, equipment, and mineral properties $ 2,304 $ 1,877 $ 4,578 See accompanying notes to these consolidated financial statements. 81 Table of Contents INTREPID POTASH, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS "Intrepid," "our," "we," or "us" means Intrepid Potash, Inc. and its consolidated subsidiaries. Note 1 — COMPANY BACKGROUND We are a diversified mineral company that delivers potassium, magnesium, sulfur, salt, and water products essential for customer success in agriculture, animal feed and the oil and gas industry. We are the only U.S. producer of muriate of potash (sometimes referred to as potassium chloride or potash), which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, we produce a specialty fertilizer, Trio ® , which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle. We also provide water, magnesium chloride, brine and various oilfield products and services. Our extraction and production operations are conducted entirely in the continental U.S. We produce potash from three solution mining facilities: our HB solution mine in Carlsbad, New Mexico, our solution mine in Moab, Utah, and our brine recovery mine in Wendover, Utah. We also operate our North compaction facility in Carlsbad, New Mexico, which compacts and granulates product from the HB mine. We produce Trio ® from our conventional underground East mine in Carlsbad, New Mexico. We have permitted, licensed, declared and partially adjudicated water rights in New Mexico. We sell a portion of water from these water rights to support oil and gas development in the Permian Basin. 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. We have three segments: potash, Trio ® , and oilfield solutions. We account for the sales of byproducts as revenue in the potash or Trio ® segment, based on which segment generates the byproduct. For each of the years ended December 31, 2025, 2024, and 2023, a majority of our byproduct sales were accounted for in the potash segment. We manage sales and marketing operations centrally. This allows us to evaluate the product needs of our customers and then centrally determine which of our production facilities to use to fill customer orders in a manner designed to realize the highest average net realized sales price per ton. Average net realized sales price per ton is a non-GAAP measure that we calculate for each of potash and Trio ® as segment sales less segment byproduct sales and segment freight costs, divided by the number of tons of product sold in the period. We also monitor product inventory levels and overall production costs centrally. Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — Our consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates — The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions. Significant estimates include, but are not limited to, those for proven and probable mineral reserves, the related present value of estimated future net cash flows, useful lives of plant assets, asset retirement obligations, normal inventory production levels, inventory valuations, the valuation of equity awards, revenue from products we sell to customers where the price is variable, the valuation of receivables, estimated future net cash flows used in long-lived assets impairment analysis, the related valuation of our long-lived assets, valuation of our deferred tax assets and estimated blended income tax rates utilized in the current and deferred income tax calculations. 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 82 Table of Contents 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. Revenue Recognition — We account for revenue in accordance with Accounting Standards Codification ("ASC") Topic 606 Revenue from Contracts with Customers ("ASC 606"). Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. Performance Obligations: A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. The contract's transaction price is allocated to the performance obligations and recognized as revenue when the performance obligations are satisfied. Substantially all our contracts are of a short-term nature and contain a single performance obligation because the sale is for one type of product and shipping and handling charges are accounted for as a fulfillment cost and are not considered to be a separate performance obligation. The performance obligation is satisfied when control of the product is transferred to the customer, which typically occurs when we ship mineral products or deliver water from our facility to the customer. We account for substantially all of our revenue from sales to customers at a single point in time. Contract Estimates: In certain circumstances, we may sell products to customers where the sales price is variable. For variable consideration sales, we estimate the sales price we expect to realize at contract inception based on the facts and circumstances for each sale, including historical experience, and recognize revenue to the extent it is probable that a subsequent change in estimate will not result in a significant revenue reversal compared to the cumulative revenue recognized once the uncertainty is resolved. We update variable consideration estimates at each reporting date for any changes in facts and circumstances and adjust financial information as necessary in the period the change is identified. Contract Balances: The timing of revenue recognition, billings, and cash collection may result in contract assets or contract liabilities. For certain contracts, the customer has agreed to pay us before we have satisfied our performance obligations. Customer payments received before we have satisfied our performance obligations are accounted for as a contract liability. Disaggregation of Revenue: We present disaggregation of revenue by products which we believe best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions. Inventory and Long-Term Parts Inventory — Inventory consists of product and byproduct stocks that are ready for sale; mined ore; potash in evaporation ponds, which is considered work-in-process; and parts and supplies inventory. Product and byproduct inventory cost is determined using the lower of weighted average cost or estimated net realizable value and includes direct costs, maintenance, operational overhead, depreciation, depletion, and equipment lease costs applicable to the production process. Direct costs, maintenance, and operational overhead include labor and associated benefits. We evaluate our production levels and costs to determine if any should be deemed abnormal and therefore excluded from inventory costs and expensed directly during the applicable period. The assessment of normal production levels is judgmental and unique to each period. We model normal production levels and evaluate historical ranges of production by operating plant in assessing what is deemed to be normal. Each production operation typically shuts down periodically for planned maintenance activities. The costs of maintenance turnarounds at our facilities are considered part of production costs and are absorbed into inventory in the period incurred. Parts inventory, including critical spares not expected to be used within a period of one year, is classified as non-current. Parts and supply inventory cost is determined using the lower of average acquisition cost or net realizable value. Detailed reviews are performed related to the net realizable value of parts inventory, giving consideration to quality, slow-moving items, obsolescence, excessive levels, and other factors. Parts inventories that have not turned over in more than a year, excluding parts classified as critical spares, are reviewed for obsolescence and, if deemed appropriate, are included in the determination of an allowance for obsolescence. Property, Plant, Equipment, Mineral Properties, and Development Costs — Property, plant, and equipment are stated at historical cost. Expenditures for property, plant, and equipment relating to new assets or improvements are capitalized, provided the expenditure extends the useful life of an asset or extends the asset's functionality. Property, plant, and equipment are depreciated under the straight-line method using estimated useful lives. 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. 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 83 Table of Contents 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. Exploration costs include geological and geophysical work performed on areas that do not yet have proven and probable reserves declared. These costs are expensed as incurred. Depletion of mineral properties is calculated using the units-of-production method over the estimated product tons in the relevant ore body. The lives of reserves used for accounting purposes are shorter than current reserve life determinations due to uncertainties inherent in long-term estimates. These reserve life estimates have been prepared by us and reviewed and independently determined by mine consultants. Tons of potash and langbeinite in the proven and probable reserves are expressed in terms of expected finished tons of product to be realized, net of estimated losses. Market price fluctuations of potash or Trio ® , as well as increased production costs or reduced recovery rates, could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves. In addition, the provisions of our mineral leases, including royalty provisions, are subject to periodic readjustment by the state and federal government, which could affect the economics of our reserve estimates. Significant changes in the estimated reserves could have a material impact on our results of operations and financial position. Recoverability of Long-Lived Assets — We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amount may not be recoverable. An impairment is potentially considered to exist if an asset group's total estimated net future cash flows on an undiscounted basis are less than the carrying amount of the related asset. An impairment loss is measured and recorded based on the excess of the carrying amount of long-lived assets over its estimated fair value. Changes in significant assumptions underlying future cash flow estimates or fair values of asset groups may have a material effect on our financial position and results of operations. Sales price is a significant element of any cash flow estimate, particularly for higher cost operations. Other assumptions we estimate include, among other things, the economic life of the asset, sales volume, inflation, raw materials costs, cost of capital, tax rates, and capital spending. Factors we generally will consider important and which could trigger an impairment review of the carrying value of long-lived assets include the following: • significant underperformance relative to expected operating results or operating losses • significant changes in the manner of use of assets or the strategy for our overall business • the denial or delay of necessary permits or approvals that would affect the utilization of our tangible assets • underutilization of our tangible assets • discontinuance of certain products by us or our customers • a decrease in estimated mineral reserves • significant negative industry or economic trends Intangible Assets — Water rights are accounted for as indefinite-lived intangible assets. We test indefinite-lived intangible assets for impairment at least annually on October 1, and more frequently if circumstances require. We use a qualitative assessment to determine whether it is more likely than not that the fair value of the unamortized intangible asset is less than its carrying value. If our qualitative assessment indicates it is more likely than not that the fair value of the unamortized assets is less than its carrying value, we estimate the fair value of the unamortized asset and record an impairment loss based on the excess of the carrying amount of the unamortized intangible asset over its estimated fair value. Fair value is estimated using quoted market prices, if available. If quoted market prices are not available, the estimated fair value is based on various valuation techniques, including the discounted value of estimated future cash flows. Changes in significant assumptions underlying fair value estimates may have a material effect on our financial position and results of operations. We also have finite-lived intangible assets consisting of contractual agreements. These intangible assets are amortized over the period of estimated benefit using the straight-line method. No significant residual value is estimated for our finite-lived intangible assets. We estimate the useful life of intangible assets considering various factors, including but not limited to, the expected use of the asset, the expected life of other assets the intangible asset may relate, any legal, regulatory, contractual provisions, or relevant economic factors that may limit the use of the intangible asset. We evaluate the remaining useful lives of intangible assets each reporting period to determine if a revision to the asset's remaining life is necessary. Changes in significant assumptions underlying useful lives may have a material effect on our financial position and results of operations. 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 84 Table of Contents 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. The accretion of this discounted liability is recognized as expense over the life of the related assets, and the liability is periodically adjusted to reflect changes in the estimates of either the timing or amount of the reclamation and abandonment costs. Leases — We determine if an arrangement is a lease or contains a lease at inception. Operating and finance lease liabilities are recognized based on the present value of the remaining lease payments, discounted using the discount rate for the lease at the commencement date. If readily determinable, we use the implicit rate in the lease to determine the present value of future lease payments. If the implicit rate is not readily determinable, we use an incremental borrowing rate based on information available at the commencement date to determine the present value of future lease payments. Operating right-of-use ("ROU") assets and finance lease assets are generally recognized based on the amount of the initial measurement of the lease liability. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. For finance leases, interest expense is recognized on the lease liability and the ROU asset is amortized over the lease term. We account for lease and non-lease components as a single lease component, and we do not apply the requirements of ASC Topic 842 to short-term leases with a term of one year or less at inception. Income Taxes — We are a subchapter C corporation and, therefore, are subject to U.S. federal and state income taxes. We recognize income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. We record a valuation allowance if it is deemed more likely than not that our deferred income tax assets will not be realized in full. These determinations are subject to ongoing assessment. Cash and Cash Equivalents and Investments — Cash and cash equivalents consist of cash and liquid investments with an original maturity of three months or less. We classify our investments in debt securities, which include U.S treasury and government agency obligations, and corporate bonds and notes, as held-to-maturity investments because we have the intent and ability to hold these investments to maturity. Our held to maturity investments are carried at amortized cost. We use the equity method of accounting for investments in limited partnerships where we own more than 3% of the limited partnership, as required by the Securities and Exchange Commission. Under this method of accounting, we record our share of the net earnings or losses of the investee in the "Other Income (Expense)" section of our Consolidated Statements of Operations. We record equity investments without a readily determinable fair value using the measurement alternative of cost, with adjustments for observable changes in prices resulting from orderly transactions for the identical or similar investments of the same issuer, or impairment. Fair Value of Financial Instruments — Our financial instruments include cash and cash equivalents, restricted cash, accounts receivable, refundable income taxes, accounts payable and current accrued liabilities. These instruments are carried at cost, which approximates fair value due to the short-term maturities of the instruments. Allowances for doubtful accounts are recorded against the accounts receivable balance to estimate net realizable value. Amounts outstanding under our secured credit facility are carried at cost, which approximates fair value, due to the short-term nature of the borrowings. Earnings per Share — Basic net income or loss per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average basic common shares outstanding for the respective period. Diluted net income per common share of stock is calculated by dividing net income or loss available to common stockholders by the weighted average diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings or loss per share calculation consist of awards of restricted shares, performance units, and non‑qualified stock options. The dilutive effect of stock-based compensation arrangements is computed using the treasury‑stock method. Following the lapse of the vesting period of restricted shares, the shares are considered issued and therefore are included in the number of issued and outstanding shares for purposes of these calculations. When we report a net loss, all potentially dilutive securities are considered anti-dilutive and are excluded from the dilutive loss per share calculation. Treasury Stock — Repurchases of our common stock are accounted for at cost and are recorded as treasury stock. 85 Table of Contents Stock‑Based Compensation — We account for stock-based compensation by recording expense using the fair value of the awards at the time of grant. We have recorded compensation expense associated with the issuance of restricted shares, performance units, and non-qualified stock options, all of which are subject to service conditions and in some cases subject to operational performance or market-based conditions. We recognize expense associated with such awards over the service period associated with each grant. For awards with service only conditions we recognize expense using the straight-line recognition method over the requisite service period of the award, which is generally the vesting period of the award. We recognize expense for awards with service and operational performance conditions using the accelerated recognition method over the requisite service period of the award, which is generally the vesting period of the award. 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 December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures , which requires that an entity, on an annual basis, disclose additional income tax information, including more detailed breakdowns of the effective tax rate to the statutory rate and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively and is effective for calendar year-end public business entities in the 2025 annual period and in 2026 for interim periods with early adoption permitted. We adopted the standard in our fiscal year 2025 annual financial statements prospectively. For additional information, refer to Note 14 Income Taxes, in our Consolidated Financial Statements. 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 July 2025, the FASB issued ASU 2025-05, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"). ASU 2025 amends the guidance in ASC 326 to simplify the estimation of credit losses on current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The amendments allow all entities to elect a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets. Entities are required to disclose their practical expedient and accounting policy elections. The amendments are effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. We are currently evaluating the guidance but do not expect adoption of ASU 2025-05 will have a material impact on our consolidated financial statements. 86 Table of Contents Note 3 — EARNINGS PER SHARE Basic earnings per share is computed by dividing net income or loss by the weighted-average number of shares of common stock outstanding during the period. For purposes of determining diluted earnings per share, basic weighted-average common shares outstanding is adjusted to include potentially dilutive securities, including restricted stock, stock options, and performance units. The treasury-stock method is used to measure the dilutive impact of potentially dilutive shares. 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): Year Ended December 31, 2025 2024 2023 Net income (loss) $ 11,185 $ ( 212,845 ) $ ( 35,673 ) Basic weighted average common shares outstanding 13,014 12,880 12,761 Add: Dilutive effect restricted common stock 120 — — Add: Dilutive effect of stock options outstanding 38 — — Add: Dilutive effect of performance units 2 — — Diluted weighted average common shares outstanding 13,174 12,880 12,761 Earnings (loss) per share: Basic $ 0.86 $ ( 16.53 ) $ ( 2.80 ) Diluted $ 0.85 $ ( 16.53 ) $ ( 2.80 ) The following table shows anti-dilutive shares excluded from the calculation of diluted earnings (loss) per share (in thousands): Year Ended December 31, 2025 2024 2023 Anti-dilutive effect of restricted shares and units 186 287 348 Anti-dilutive effect of stock options outstanding 117 273 273 87 Table of Contents Note 4 — CASH, CASH EQUIVALENTS AND RESTRICTED CASH Total cash, cash equivalents and restricted cash, as shown on the consolidated statements of cash flows are included in the following accounts at December 31, 2025, 2024, and 2023 (in thousands): Year Ended December 31, 2025 2024 2023 Cash and cash equivalents $ 83,537 $ 41,309 $ 4,071 Restricted cash included in "Other current assets" 25 25 25 Restricted cash included in "Other assets, net" 573 564 555 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 84,135 $ 41,898 $ 4,651 Restricted cash included in "Other assets, net" on the balance sheet at December 31, 2025, 2024, and 2023 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, 2025, 2024, and 2023 represents cash deposits with supply vendors. In December 2025, we received an $ 8.0 million cash deposit related to the potential sale of the majority of the assets of Intrepid South. As consideration for this deposit, we entered into an exclusivity agreement with the potential buyer. This deposit would be credited against the purchase price of the Intrepid South assets if a transaction is consummated. In the event we are unable to reach a definitive agreement or the buyer is unable to close in a timely manner, we may retain the deposit after the exclusivity period expires. There is no guarantee we will be successful in negotiating definitive agreements or that the transaction will be completed. If we are successful in negotiating definitive agreements, we expect this transaction would close in the first half of 2026. This potential transaction remains subject to approval by our Board of Directors. The $ 8.0 million deposit received is included in "Cash and cash equivalents" and in "Other current liabilities" on the Consolidated Balance Sheet at December 31, 2025. 88 Table of Contents Note 5 — INVENTORY AND LONG-TERM PARTS INVENTORY The following summarizes our inventory, recorded at the lower of weighted average cost or estimated net realizable value as of December 31, 2025, and 2024, respectively (in thousands): December 31, 2025 2024 Finished goods product inventory $ 63,893 $ 68,197 In-process inventory 32,858 28,329 Total product inventory 96,751 96,526 Current parts inventory, net 15,554 16,442 Total current inventory, net 112,305 112,968 Long-term parts inventory, net 31,506 33,775 Total inventory, net $ 143,811 $ 146,743 During the year ended December 31, 2025, we recorded $ 4.4 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, 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 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. Parts inventories are shown net of any required allowances. During the years ended December 31, 2025, 2024, and 2023, we recorded reserves for obsolete parts inventory of $ 2.4 million, $ 1.8 million, and $ 0.5 million, respectively. 89 Table of Contents Note 6 — PROPERTY, PLANT, EQUIPMENT, AND MINERAL PROPERTIES " Property, plant, equipment, and mineral properties, net" were comprised of the following (in thousands): December 31, 2025 2024 Land $ 24,032 $ 24,136 Ponds and land improvements 98,639 95,787 Mineral properties and development costs 159,892 161,826 Buildings and plant 97,987 95,439 Machinery and equipment 331,545 318,545 Vehicles 8,885 8,152 Office equipment and leasehold improvements 10,164 10,613 Operating lease ROU assets 3,181 4,571 Breeding stock 223 277 Construction in progress 14,003 6,423 Total property, plant, equipment, and mineral properties, gross $ 748,551 $ 725,769 Less: accumulated depreciation, depletion, and amortization ( 413,778 ) ( 381,431 ) Total property, plant, equipment, and mineral properties, net $ 334,773 $ 344,338 We incurred the following expenses for depreciation, depletion, and amortization of ROU assets, including expenses capitalized into inventory, for the following periods (in thousands): Year Ended December 31, 2025 2024 2023 Depreciation $ 33,938 $ 31,390 $ 34,307 Depletion 5,035 4,627 3,190 Amortization of ROU assets 1,268 1,344 1,581 Total incurred $ 40,241 $ 37,361 $ 39,078 During the years ended December 31, 2025, 2024, and 2023, we recorded total impairment charges of $ 1.9 million, $ 10.7 million, and $ 43.3 million in impairment charges, respectively, as discussed in more detail below. In the fourth quarter of 2023, given the decrease in our gross margin for our Trio ® segment we determined that sufficient indicators of potential impairment of our Trio ® segment long-lived assets existed. We performed a recoverability test and determined that the carrying value of our Trio ® segment long-lived assets was not recoverable. We engaged a third-party valuation firm to determine the fair value of our Trio ® segment assets. 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 during the fourth quarter of 2023. For any Trio ® segment capital spending during 2025 and 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 $ 1.9 million and $ 4.4 million, respectively. Our long-lived assets at our West facility have been in care and maintenance since July 2016. Given the length of time since the assets were placed in care and maintenance, we engaged a third-party valuation firm to determine if the fair value of the West assets supports the carrying value of those assets. The fair value of the West assets was determined using the expected proceeds received in an orderly sale of the individual assets. 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. 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 90 Table of Contents 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 We determine if an arrangement is a lease or contains a lease at inception. We have operating leases for mining equipment, trucks, rail cars, and office space. Our operating leases have remaining lease terms ranging from less than one year to six years. Our finance leases have remaining terms ranging from less than one year to seven years. Leases recorded on the balance sheet consist of the following (amounts in thousands): Leases Classification on the Balance Sheet Balance, December 31, 2025 Balance, December 31, 2024 Assets Operating lease ROU assets, net Property, plant, equipment, and mineral properties, net $ 2,245 $ 1,437 Finance lease ROU assets, net Property, plant, equipment, and mineral properties, net $ 3,435 $ 2,934 Liabilities Current operating lease liabilities Other current liabilities $ 983 $ 679 Current finance lease liability Other current liabilities $ 1,035 $ 951 Non-current operating lease liabilities Operating lease liabilities $ 1,550 $ 780 Non-current finance lease liabilities Finance lease liabilities $ 1,741 $ 1,838 Other information related to lease term and discount rate is as follows: December 31, 2025 2024 Weighted average remaining lease term - operating leases 3.0 years 3.9 years Weighted average remaining lease term - finance leases 3.7 years 3.0 years Weighted average discount rate - operating leases 7.6 % 7.0 % Weighted average discount rate - finance leases 7.8 % 7.6 % The components of lease expense are as follows (amounts in thousands): Year Ended December 31, 2025 2024 2023 Operating lease expense $ 1,468 $ 1,443 $ 1,667 Short-term lease expense 82 79 122 Total lease expense $ 1,550 $ 1,522 $ 1,789 Supplemental cash flow information related to leases was as follows (amounts in thousands): 91 Table of Contents Year Ended December 31, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,582 $ 1,516 Operating cash flows from finance leases 220 185 Financing cash flows from finance leases 1,043 942 Right-of-Use Assets exchanged for new operating lease liabilities 2,185 751 Right-of-Use Assets exchanged for new finance lease liabilities 1,380 1,562 As of December 31, 2025, maturities of lease liabilities are summarized as follows (amounts in thousands): Years Ending December 31, Operating Leases Finance Leases Total 2026 $ 1,141 $ 1,203 $ 2,344 2027 1,068 628 1,696 2028 255 604 859 2029 150 376 526 2030 139 165 304 Thereafter 92 248 340 Total future minimum lease payments $ 2,845 3,224 6,069 Less - amount representing interest 312 448 760 Present value of future minimum lease payments $ 2,533 2,776 5,309 Less - current lease obligations 983 1,035 2,018 Long-term lease obligations $ 1,550 $ 1,741 $ 3,291 92 Table of Contents Note 8 — INTANGIBLE ASSETS We have water rights, recorded at $ 19.2 million at December 31, 2025, and 2024. Our water rights have indefinite lives and are not amortized. 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 $ 6.6 million and $ 6.6 million as of December 31, 2025, and 2024, 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. As of December 31, 2025, the weighted-average remaining amortization period for the other intangible assets was 13.6 years. These intangible assets are included in "Other assets, net" on the Consolidated Balance Sheets. As of December 31, 2025, and December 31, 2024, we have the following amounts recorded for intangible assets (amounts in thousands): December 31, 2025 December 31, 2024 Finite-lived intangible assets: Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Produced water disposal royalty agreements $ 2,694 $ ( 900 ) $ 2,694 $ ( 765 ) Surface damage and easement agreements 3,723 ( 1,245 ) 3,723 ( 1,058 ) Other intangibles 200 ( 13 ) 200 ( 7 ) Total $ 6,617 $ ( 2,158 ) $ 6,617 $ ( 1,830 ) Indefinite-lived intangible assets: Water rights $ 19,184 $ 19,184 Total amortization of intangible assets for the years ended December 31, 2025, 2024, and 2023 was $ 0.3 million. We estimate the annual amortization expense of intangible assets will be $ 0.3 million for each of the next five years. 93 Table of Contents 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 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, 2025, and 2024, we recorded other operating income of $ 4.5 million and $ 4.5 million from the Amendment, respectively. Because we have not yet been paid the Access Fee included in the transaction price, we recorded a long-term receivable as of December 31, 2025 and 2024 of $ 4.5 million and $ 2.3 million, respectively, for the amount of the Access Fee that we earned during the years ended December 31, 2025, and 2024, 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, 2025, and 2024, we reduced the "Deferred other income, long-term" liability recorded on our Consolidated Balance Sheets. As of December 31, 2025, we had $ 2.3 million recorded in "Other current liabilities," and $ 43.2 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, 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. 94 Table of Contents Note 10 — DEBT Credit Facility —In August 2022, we and certain of our subsidiaries entered into the Second Amended and Restated Credit Agreement with a syndicate of lenders with the Bank of Montreal, as administrative agent, which provides for a revolving credit facility. The agreement amended our existing revolving credit facility to, among other things, increase the amount available under the facility from $ 75 million to $ 150 million, extend the maturity date to August 4, 2027, and transition from LIBOR (London Interbank Offered Rate) to SOFR (Secured Overnight Financing Rate) as a reference rate for borrowings under the credit agreement. Borrowings under the amended credit facility bear interest at SOFR plus an applicable margin of 1.50 % to 2.25 % per annum, based on our leverage ratio as calculated in accordance with the amended agreement governing the revolving credit facility. Borrowings under the revolving credit facility are secured by substantially all of our current and non-current assets, and the obligations under the credit facility are unconditionally guaranteed by several of our subsidiaries. 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, 2025, we made no borrowings and made no repayments under the facility. 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 repayments under the facility. As of December 31, 2025, we had no borrowings outstanding and no outstanding letters of credit 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. We had $ 150.0 million available under the facility as of December 31, 2025. We were in compliance with the applicable covenants under the facility as of December 31, 2025. Interest Expense —Interest expense is recorded net of any capitalized interest associated with investments in capital projects. We incurred gross interest expense of $ 0.8 million, $ 0.7 million, and $ 0.8 million for the years ended December 31, 2025, 2024, and 2023, respectively. Amounts included in interest expense for the years ended December 31, 2025, 2024, and 2023 (in thousands) are as follows: Year ended December 31, 2025 2024 2023 Interest expense on borrowings $ 230 $ 182 $ 275 Commitment fee on unused credit facility 228 229 226 Amortization of deferred financing costs 301 301 301 Gross interest expense 759 712 802 Less capitalized interest 527 600 802 Interest expense, net $ 232 $ 112 $ — Note 11 — ASSET RETIREMENT OBLIGATION We recognize an estimated liability for future costs associated with the closure and reclamation of our mining properties. A liability for the fair value of an asset retirement obligation and a corresponding increase to the carrying value of the related long-lived asset are recorded as the mining operations occur or the assets are acquired. Our asset retirement obligation is based on the estimated cost to close and reclaim the mining operations, the economic life of the properties, and federal and state regulatory requirements. The liability is discounted using credit adjusted risk-free rate estimates at the time the liability is incurred or when there are upward revisions to estimated costs. The credit adjusted risk-free rates used to discount our abandonment liabilities range from 6.9 % to 12.0 %. Revisions to the liability occur due to construction of new or expanded facilities, changes in estimated abandonment costs or economic lives, changes in the estimated timing of the reclamation activities or if federal or state regulators enact new requirements regarding the abandonment or reclamation of mines. Following is a table of the changes to our asset retirement obligations for the following periods (in thousands): 95 Table of Contents Year Ended December 31, 2025 2024 2023 Asset retirement obligation, at beginning of period $ 32,949 $ 30,359 $ 26,864 Liabilities settled ( 48 ) — ( 197 ) Liabilities incurred — 524 — Changes in estimated obligations 3,337 ( 423 ) 1,552 Accretion of discount 2,603 2,489 2,140 Total asset retirement obligation, at end of period $ 38,841 $ 32,949 $ 30,359 Less current portion of asset retirement obligation $ — $ ( 595 ) $ ( 282 ) Long-term portion of asset retirement obligation $ 38,841 $ 32,354 $ 30,077 We estimate approximately $ 11.5 million in asset retirement payments may occur in the next five years . 96 Table of Contents Note 12 — REVENUE Revenue Recognition —Under ASC 606, we recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services. Contract Balances — As of December 31, 2025, and 2024, we had $ 2.5 million and $ 2.4 million of contract liabilities, respectively, of which $ 0.8 million and $ 0.8 million were current as of December 31, 2025, and 2024, respectively, and included in "Other current liabilities" on the Consolidated Balance Sheets. Customer advances received before we have satisfied our performance obligations are accounted for as a contract liability (sometimes referred to in practice as deferred revenue). Our contract liability activity for the years ended December 31, 2025, 2024, and 2023 is shown below (in thousands): Year Ended December 31, 2025 2024 2023 Beginning balance $ 2,431 $ 2,303 $ 2,374 Additions 1,345 1,701 1,030 Recognized as revenue during period from the beginning balance ( 1,292 ) ( 1,573 ) ( 1,101 ) Ending balance $ 2,484 $ 2,431 $ 2,303 Disaggregation of Revenue — The table below shows the disaggregation of revenue by product and reconciles disaggregated revenue to segment revenue for the years ended December 31, 2025, 2024, and 2023. We believe the disaggregation of revenue by products best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic conditions (in thousands): Year Ended December 31, 2025 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 115,003 $ — $ — $ ( 158 ) $ 114,845 Trio ® — 143,966 — — 143,966 Water — — 3,173 — 3,173 Salt 11,657 497 — — 12,154 Magnesium Chloride 6,191 — — — 6,191 Brines 6,732 — 4,316 — 11,048 Other — — 6,951 — 6,951 Total Revenue $ 139,583 $ 144,463 $ 14,440 $ ( 158 ) $ 298,328 97 Table of Contents Year Ended December 31, 2024 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 100,199 $ — $ — $ ( 252 ) $ 99,947 Trio ® — 104,773 — — 104,773 Water — — 13,602 — 13,602 Salt 12,378 655 — — 13,033 Magnesium Chloride 5,324 — — — 5,324 Brines 6,932 — 4,204 — 11,136 Other — — 6,879 — 6,879 Total Revenue $ 124,833 $ 105,428 $ 24,685 $ ( 252 ) $ 254,694 Year Ended December 31, 2023 Product Potash Segment Trio ® Segment Oilfield Solutions Segment Intersegment Eliminations Total Potash $ 131,206 $ — $ — $ ( 329 ) $ 130,877 Trio ® — 96,344 — — 96,344 Water 297 5,316 9,569 — 15,182 Salt 11,973 522 — — 12,495 Magnesium Chloride 8,161 — — — 8,161 Brines 4,283 — 4,056 — 8,339 Other — — 7,685 — 7,685 Total Revenue $ 155,920 $ 102,182 $ 21,310 $ ( 329 ) $ 279,083 98 Table of Contents Note 13 — COMPENSATION PLANS Cash Bonus Programs —We use cash bonus programs under which our employees may be eligible to receive cash bonuses based on corporate, department, location, or individual performance or other events or accomplishments. We accrue cash bonus expense related to the current year's performance and we expect to pay in March 2026 a cash bonus to our employees under our 2025 bonus program. We met certain performance metrics related to our 2024 cash bonus program and paid a cash bonus in March 2025. We met certain performance metrics related to our 2023 cash bonus program and paid a cash bonus in March 2024. Equity Incentive Compensation Plan —Our Board of Directors ("Board') and stockholders adopted a long-term incentive compensation plan called the Intrepid Potash, Inc. Amended and Restated Equity Incentive Plan (the "Plan"). The Plan was most recently amended and restated in May 2022. We have issued common stock, restricted shares, restricted stock units, and non-qualified stock option awards under the Plan. Restricted stock units ("RSUs") represent the contingent right to receive one share of our common stock upon satisfaction of applicable vesting conditions. RSUs do not have any of the rights available to holders of common stock until vesting and settlement of RSUs in shares of common stock. Restricted share awards ("RSAs") contain service-based conditions and in some instances contain both service-based and market-based conditions. Certain RSU awards contain service-based and operational performance conditions (referred to as "operational performance-based RSUs") and certain RSU awards contain service-based and market-based conditions (referred to as "market-based RSUs"). We record stock-based compensation expense associated with the issuance of RSAs, non-qualified stock options, operational performance-based RSUs, and market-based RSUs by recognizing expense over the service period associated with each grant, based on the fair value of the grant on the grant date. For service-based awards, grant date fair value is based on the closing share price of our common stock on the grant date and expense is recognized on a straight-line basis over the required service period of the award, which is generally the vesting period of the award. For operational performance-based awards grant date fair value is based on the closing share price of our common stock on the grant date and the probable number of shares expected to vest and expense is recognized using the accelerated recognition method over the required service period, which is generally the vesting period of the award. The probable number of shares expected to vest is updated each reporting period and we record a cumulative catch-up adjustment to expense for changes to the probability assessment. For RSA and RSU awards that contain both service-based and market-based conditions, grant date fair value is estimated using a Monte Carlo simulation valuation model and expense is recognized using the accelerated recognition method over the required service period, which is the longer of the explicit service period or the derived service period. The derived service period is generally the expected date the market condition is estimated to be achieved. As of December 31, 2025, 287,345 restricted shares, 195,586 restricted stock units, and options to purchase 1,395 shares of common stock were outstanding. Total compensation expense related to the Plan was $ 5.1 million, $ 3.6 million, and $ 6.5 million, for the years ended December 31, 2025, 2024, and 2023, respectively. As of December 31, 2025, there was $ 7.2 million of total remaining unrecognized compensation expense that is expected to be recognized over a weighted-average period of 1.5 years. When restricted shares and performance units vest and when stock options are exercised, new shares are issued and considered outstanding for financial statement purposes. As of December 31, 2025, approximately 0.8 million shares of common stock remained available for issuance under the Plan. Restricted Shares During 2025, the Compensation Committee of the Board (the "Compensation Committee") granted restricted shares of common stock to non-employee members of the Board of Directors ("Board"), executive officers, and other key employees. All restricted shares granted by the Compensation Committee during 2025 contain only service-vesting requirements. In January 2025, the Board increased the size of the Board from seven members to eight members and the Board appointed an additional independent director to fill the vacancy created by the expansion of the Board. In connection with appointing an additional independent director, the Compensation Committee granted the new independent director 1,040 restricted shares that vested on May 16, 2025. In May 2025, the Compensation Committee granted an aggregate of 16,016 restricted shares to non-employee members as part of their annual compensation and these restricted shares vest one year after the date of the grant, subject to continued service. In March 2025, the Compensation Committee granted an aggregate of 118,773 restricted shares to executives and key employees as part of our annual equity award program. The restricted shares vest over three years from the grant date subject to continued employment or service. 99 Table of Contents During 2024, the Compensation Committee granted restricted shares of common stock to non-employee directors, executive officers and other key employees. The Compensation Committee granted an aggregate of 20,739 shares of restricted shares to non-employee directors as part of their annual compensation, which vest in one year after the grant date. In September 2024, the Compensation Committee granted special one-time grants of an aggregate of 6,282 restricted shares to non-employee directors which vested on May 25, 2025. The special one-time grants were awarded because of additional Board meetings held during 2024, as a result of the medical leave of absence taken by our former Chief Executive Officer during 2024. During 2024, the Compensation Committee granted an aggregate of 196,809 restricted shares to employees as part of either our annual equity award program to new employees or to employees who assumed additional responsibilities during the year. These awards contain only service-vesting requirements and vest over three years from the grant date subject to continued employment or service. During 2024, the Compensation Committee granted an aggregate of 32,299 restricted shares to certain members of executive management that contain both service- and market-conditions. 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 were met during 2025, and the first tranche of restricted shares vested during 2025, and the remaining unvested restricted shares will vest on the grant date anniversary in 2026, and 2027, subject to continued employment. During 2023, the Compensation Committee granted restricted shares of common stock to non-employee directors, executive offices and other key employees. The Compensation Committee granted an aggregate of 22,226 shares of restricted shares to non-employee directors as part of their annual compensation, which vested one year after the grant date. During 2023, the Compensation Committee granted an aggregate of 130,975 restricted shares of common stock to employees as part of our annual equity award program. The awards contain only service-vesting requirements and vest over three years from the grant date subject to continued employment. During 2023, the Compensation Committee granted an aggregate of 22,220 restricted shares of common stock with both 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 were met during 2025 and the first two tranches vested during 2025 and the third tranche will vest in 2026, subject to continued employment. During 2023, the Compensation Committee granted 71,922 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 former chief executive officer resigned from all positions with the Company and its subsidiaries and affiliates. None of the market-condition price achieve targets were met as of September 30, 2024, and all unvested restricted shares were cancelled. The table below shows the restricted share activity and the restricted shares outstanding for the years ended December 31, 2025, 2024 and 2023. 100 Table of Contents Restricted Shares Weighted Average Grant Date Fair Value Outstanding December 31, 2022 300,268 $ 40.25 Granted 247,343 $ 25.05 Vested ( 177,771 ) $ 24.98 Forfeited ( 28,916 ) $ 42.63 Outstanding December 31, 2023 340,924 $ 36.98 Granted 256,129 $ 21.88 Vested ( 138,668 ) $ 29.22 Forfeited ( 139,350 ) $ 30.10 Outstanding December 31, 2024 319,035 $ 31.23 Granted 135,829 $ 30.10 Vested ( 142,160 ) $ 25.52 Forfeited ( 25,359 ) $ 23.81 Outstanding December 31, 2025 287,345 $ 27.01 We used a Monte Carlo simulation valuation model to estimate the fair value of restricted stock awards that contain a market condition. The weighted-average grant date fair value per share of restricted shares with service and market conditions issued in 2024, and 2023 was $ 17.80 , and $ 24.96 , respectively. No restricted stock awards containing market conditions were granted during 2025. Valuation models require the input of highly subjective assumptions, including the expected volatility of the price of the underlying stock. We used the following assumptions to compute the weighted-average grant date fair market value of restricted stock with service and market conditions granted in 2024, and 2023: 2024 2023 Closing stock price on grant date $ 19.37 $ 26.05 Risk free interest rate 4.5 % 3.6 % Dividend yield — % — % Estimated volatility 67.6 % 82.9 % Expected life 3.0 years 3.8 years Restricted Stock Units During 2025, the Compensation Committee granted restricted stock performance unit ("PSU") awards to executive officers and certain key employees that are eligible to vest based on potash production cost per ton for the 2027 calendar year. An aggregate of 22,577 target number of PSUs were granted and based upon potash production cost per ton for the 2027 calendar year, between 0 % and 200 % of the target number of PSUs may be earned. During 2025, the Compensation Committee granted restricted stock unit ("RSU") awards to executive officers and certain key employees that contain an absolute total stockholder return ("TSR") market condition (referred to as the "aTSR" awards). Under the terms of the aTSR award, up to 26,858 RSUs can be earned based on the achievement of certain TSR hurdles on or prior to March 17, 2029. Once a TSR hurdle is achieved, one-half of the total RSUs earned will vest immediately and one-half of the total RSUs earned will vest on the one-year anniversary of the date the TSR hurdle was achieved. Any RSUs that have not achieved any TSR hurdles on or prior to March 17, 2029, shall be forfeited. During 2025, the Compensation Committee granted RSU awards to executive officers and certain key employees that contain a relative TSR market condition (referred to as the "rTSR" awards). Under the terms of the rTSR award, RSUs may be earned based on the Company's TSR percentile rank compared to each company included in the Russell 2000 Index as of March 17, 2025. The period under which the relative performance is measured is from March 17, 2025, through March 17, 2028 (the "Performance Period"). If the Company's TSR percentile rank is in the 20 th percentile or below, no RSUs will 101 Table of Contents vest. If the Company's TSR percentile rank is in the 90 th percentile or above, up to 36,304 RSUs are eligible to vest, subject to a negative TSR cap and a maximum cap payout value. If the Company's TSR is negative during the Performance Period, then, irrespective of the Company relative TSR rank, the maximum number of RSUs that may be earned is 18,152 RSUs. The fair market value of the shares of common stock issuable in respect of RSUs vesting for each grantee, as measured on the date of vesting, may not exceed 500 % of the grantee's total grant date fair value of the rTSR award. In November 2024, 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 20 th percentile rank or below, no RSUs will vest. If the Company’s TSR percentile rank is in the 90 th 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. 102 Table of Contents The table below shows the RSU activity and the RSUs outstanding for the years ended December 31, 2025, and 2024. We did not issue any RSUs during the year ended December 31, 2023. Restricted Stock Units Weighted Average Grant Date Fair Value Outstanding December 31, 2023 — $ — Granted 111,285 $ 16.25 Vested — $ — Forfeited — $ — Outstanding December 31, 2024 111,285 $ 16.25 Granted 94,586 $ 23.53 Vested ( 4,064 ) $ 24.72 Forfeited ( 6,221 ) $ 23.53 Outstanding December 31, 2025 195,586 $ 19.36 . 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 2025 was $ 24.53 and $ 20.11 , respectively. 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 2025 and 2024: Granted in 2025 Granted in 2024 Absolute TSR RSU Award Relative TSR RSU Award Absolute TSR RSU Award Relative TSR RSU Award Closing stock price on grant date $ 29.18 $ 30.74 $ 27.39 $ 27.39 Risk free interest rate 4.03 % 3.97 % 4.05 % 4.07 % Dividend yield — % — % — % — % Estimated volatility 62.7 % 58.1 % 67.8 % 62.2 % Expected life 4.0 years 3.0 years 4.1 years 3.1 years 103 Table of Contents Non-Qualified Stock Option Activity We have not granted any non-qualified stock options to our employees since 2018. A summary of all stock option activity for the year ended December 31, 2025, is as follows: Shares Weighted Average Exercise Price Aggregate Intrinsic Value 1 Weighted Average Remaining Contractual Life Outstanding non-qualified stock options, beginning of period 273,206 $ 29.04 Granted — $ — Exercised ( 115,993 ) $ 15.88 Forfeited ( 155,818 ) $ 39.00 Expired — $ — Outstanding non-qualified stock options, end of period 1,395 $ 10.30 $ 24,315 0.3 Vested or expected to vest, end of period 1,395 $ 10.30 $ 24,315 0.3 Exercisable non-qualified stock options, end of period 1,395 $ 10.30 $ 24,315 0.3 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. The total intrinsic value of stock options exercised during 2025 was $ 1.5 million. No stock options were exercised during 2024 and 2023. Note 14 — INCOME TAX We account for income taxes in accordance with ASC Topic 740, Income Taxes . This standard requires the recognition of deferred tax assets and liabilities for the tax effect of temporary differences between the financial statement and tax basis of recorded assets and liabilities at enacted tax rates in effect when the related taxes are expected to be settled or realized. We recognize income taxes in each of the tax jurisdictions where we conduct business. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A summary of the provision for income taxes is as follows (in thousands): Year Ended December 31, 2025 2024 2023 Current portion of income tax expense (benefit): Federal $ — $ — $ — State 544 110 82 Deferred portion of income tax expense (benefit): Federal — 146,457 ( 8,538 ) State — 47,766 67 Total income tax expense (benefit) $ 544 $ 194,333 $ ( 8,389 ) 104 Table of Contents As described in Note 2, Summary of Significant Accounting Policies, we have elected to prospectively adopt the guidance in ASU 2023-09, Improvement to Income Tax Disclosures. The following table is a reconciliation of the federal statutory income tax rate of 21 % to our effective rate for the year ended December 31, 2025, in accordance with the guidance in ASU 2023-09 (in thousands, except percentages): Year Ended December 31, 2025 Tax Amount Tax Rate Federal tax at statutory rate $ 2,463 21.0 % State taxes, net of federal benefit 544 4.6 % Change in valuation allowance ( 2,521 ) ( 21.5 ) % Non-deductible items: Officers' compensation 519 4.4 % Fines and penalties 457 3.9 % Meals and entertainment 38 0.3 % Other non-deductible items 26 0.2 % Other Percentage depletion ( 1,068 ) ( 9.1 ) % Stock compensation ( 49 ) ( 0.4 ) % Federal effect of changes to state tax rates 89 0.8 % Other 46 0.4 % Net expense as calculated $ 544 4.6 % The following table is a reconciliation of the U.S. federal statutory rate of 21 % to our effective tax rate for the years ended December 31, 2024, and 2023, in accordance with the guidance prior to the adoption of ASU 2023-09 (in thousands, except percentages): 2024 2023 Federal taxes at statutory rate $ ( 3,888 ) $ ( 9,253 ) Add: State taxes, net of federal benefit ( 1,536 ) ( 1,274 ) Change in valuation allowance 199,006 1,121 Change in federal and state tax rates 159 238 Officers' compensation 760 848 Percentage depletion ( 465 ) ( 282 ) Other 297 213 Net expense (benefit) as calculated $ 194,333 $ ( 8,389 ) Effective tax rate ( 1,049.8 ) % 19.0 % Our effective tax rate for the years ended December 31, 2025, 2024, and 2023 differs from the U.S. federal statutory rate primarily due to the change in our valuation allowance. As of December 31, 2025, and 2024, we had gross deferred tax assets of $ 198.9 million and $ 202.2 million, respectively. During the year ended December 31, 2025, our deferred tax assets decreased primarily from decreases in the amounts of our federal and state net operating loss carryforwards. Included in gross deferred tax assets as of December 31, 2025, were approximately $ 171.1 million of federal net operating loss carryforwards, which expire beginning in 2035, and approximately $ 252.2 million of state net operating loss carryforwards, the majority of which begin to expire in 2034. Also 105 Table of Contents 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 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): December 31, 2025 2024 Deferred tax assets (liabilities): Property, plant, equipment and mineral properties, net $ 121,092 $ 121,172 Federal and state net operating loss carryforwards 48,136 60,278 Asset retirement obligation 9,961 8,468 Deferred revenue 12,302 1,330 Other 5,535 9,042 Federal R&D credits 1,870 1,870 Total deferred tax assets 198,896 202,160 Valuation allowance ( 198,896 ) ( 202,160 ) Deferred tax asset, net $ — $ — In assessing the need for a valuation allowance, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We evaluate our ability to realize the tax benefits associated with deferred tax assets by analyzing the relative impact of all the available positive and negative evidence regarding our forecasted taxable income using both historical and projected future operating results, the reversal of existing taxable temporary differences, taxable income in prior carryback years, as permitted by regulation, and the availability of tax planning strategies. In determining how much of a valuation allowance to recognize we primarily consider our projections of future taxable income. All available evidence, both positive and negative, that may affect the realizability of deferred tax assets is identified and considered in determining the appropriate amount of the valuation allowance. The ultimate realization of deferred tax assets is dependent upon the generation of certain types of future taxable income during the periods in which those temporary differences become deductible. Assumptions of expected future taxable income are based primarily on prices and forecasted sales volumes which are subject to market volatility. 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, 2025, and 2024, we have a full valuation allowance against our deferred tax assets because we do not believe it is more likely than not that we will fully realize the benefit of the deferred tax assets. During 2025, our valuation allowance decreased $ 3.3 million. The decrease was mainly due to reversals of deferred tax assets related to net operating losses. Our deferred tax assets, net of the valuation allowance, at both December 31, 2025, and 2024, is zero . The estimated statutory income tax rates that are applied to our current and deferred income tax calculations are impacted most significantly by the tax jurisdictions in which we conduct business. Changing business conditions for normal business transactions and operations, as well as changes to state tax rates and apportionment laws, potentially alter the apportionment of income among the states for income tax purposes. These changes to apportionment laws result in changes in the calculation of our current and deferred income taxes, including the valuation of our deferred tax assets and liabilities. The effects of any such changes are recorded in the period of the adjustment. Such adjustments can increase or decrease the net deferred tax asset on the balance sheet and impact the corresponding deferred tax benefit or deferred tax expense on the statement of operations. A decrease of our state tax rate decreases the value of its deferred tax asset, resulting in additional deferred tax expense being recorded on the income statement. Conversely, an increase in our state income tax rate would increase the value of the deferred tax asset, resulting in an increase in our deferred tax benefit. Because of the magnitude of the temporary differences between our book and tax basis in the assets, relatively small changes in the state tax rate may have a pronounced impact on the value of our net deferred tax asset. Each quarter we evaluate the need for a liability for uncertain tax positions. At December 31, 2025, and 2024, we had no items that required disclosure in accordance with FASB guidance on accounting for uncertainty in income taxes. 106 Table of Contents We operate, and accordingly file income tax returns, in the U.S. federal jurisdiction and various U.S. state jurisdictions. With few exceptions, we are no longer subject to income tax audits that could result in an assessment for years prior to 2022. The following table presents income tax paid (refunded) for the year ended December 31, 2025: 2025 2024 2023 New Mexico $ 206,723 $ ( 46,772 ) — Oregon 190,784 10,000 104,090 Texas 41,760 51,812 69,412 Alabama 23,966 — ( 27,210 ) Pennsylvania 14,299 — — Montana 2,650 ( 9,461 ) — New Jersey — 6,000 20,842 Massachusetts — — 9,000 California — — ( 42,200 ) Other 7,672 ( 2,562 ) 44,730 Income Taxes Paid $ 487,854 $ 9,017 $ 178,664 — The amount of income taxes paid during the year does not meet the five percent disaggregation threshold. Note 15 — COMMITMENTS AND CONTINGENCIES Reclamation Deposits and Surety Bonds —As of December 31, 2025, and 2024, we had $ 30.1 million and $ 27.0 million, respectively, of security placed principally with the states of Utah and New Mexico and the Bureau of Land Management for eventual reclamation of our various facilities. Of this total requirement, as of December 31, 2025, and 2024, $ 0.6 million and $ 0.6 million, respectively, consisted of long-term restricted cash deposits reflected in "Other" long-term assets on the Consolidated Balance Sheets, and $ 29.5 million and $ 26.4 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. We may be required to post additional security to fund future reclamation obligations as reclamation plans are updated or as governmental entities change requirements. Legal —We are subject to claims and legal actions in the ordinary course of business. We expense legal costs as incurred. 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. Water Rights In 2017 and 2018, the New Mexico Office of the State Engineer ("OSE") granted us preliminary and emergency authorizations to sell approximately 5,700 acre-feet of water per year from our Pecos River water rights. The preliminary and emergency authorizations allowed for water sales to begin immediately, subject to repayment if the underlying water rights were ultimately found to be invalid. On March 17, 2022, following a trial to determine the validity of our Pecos River water rights, 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 fee per annum 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. On November 17, 2023, we filed a request for the New Mexico Supreme Court ("NMSC") to reconsider and review the NMCA's decision to affirm the Order's abandonment determination. The NMSC agreed to review the NMCA's abandonment determination, and on July 5, 2025, issued a decision upholding the NMCA’s findings. The NMSC’s decision renders the Order final. Given the NMSC’s decision, we will have to repay for the water sold under preliminary and emergency authorizations. The OSE has indicated they are seeking repayment of approximately 9,600 acre-feet of water. Repayment is customarily made in-kind over a period of time but can take other forms including cash repayment. If we are not able to repay 107 Table of Contents 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. Because of the uncertainty surrounding the timing and the form of repayment, 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. Class Action Claim On November 6, 2024, we were served with a class action lawsuit filed in federal district court in New Mexico. The suit alleged that Intrepid and Intrepid Potash – New Mexico, LLC violated the New Mexico Minimum Wage Act by failing to properly compensate certain New Mexico underground mine and surface mine workers overtime for specific activities, including putting on and removing personal protective equipment from 2009 to the present. The complaint sought all unpaid wages for these activities for all class members, which was alleged to exceed $ 5.0 million. In December 2025, we agreed to pay $ 4.0 million to settle the matter and to dismiss all current and future claims arising from this matter against us. We have recorded an estimated liability of $ 4.0 million as of December 31, 2025. The settlement remains subject to customary conditions, including final approval by the court following notice to the putative class and a fairness hearing. There can be no assurance that the court will grant final approval or that appeals will not be filed. Other Contingent Liabilities In May 2025, we reported to the State of New Mexico that we had an unpermitted discharge of brine at our HB facility. We have recorded an estimated liability of $ 2.2 million related to the potential penalties we may incur related to this unpermitted discharge. The State of New Mexico may require us to perform remediation activities related to this incident. Given the nature and location of the discharge, we have recorded an estimated environmental liability of $ 0.1 million for any required environmental remediation activities based on our estimate of the costs associated with expected required environmental remediation activities. However, our estimate of any required remediation costs related to the unpermitted discharge could change significantly and could have a material adverse effect on our financial condition, results of operations, or cash flows, if we are required to perform more substantial and costly remediation activities than we currently expect to perform. In 2019, the U.S. Department of the Interior Office of Natural Resources Revenue ("ONRR") completed an audit of federal royalties at our New Mexico facilities covering the years 2012 through 2016 (the "audit period") and issued a "Perform Restructured Accounting and Pay Order" (the "Order"). The most significant of the ONRR's findings related to instances in which adequate supporting documentation was not provided to them for various items ONRR tested during the audit. Since the Order was issued, we worked with the ONRR to address the issues noted from the audit and, in the third quarter of 2025, we paid $ 3.5 million to the ONRR and the ONRR closed the Order. As of December 31, 2025, we have estimated contingent liabilities recorded in "Other current liabilities" on the Consolidated Balance Sheets of $ 7.3 million, mainly related to a proposed settlement for an employment class action lawsuit and to potential penalties related to an unpermitted discharge at our HB facility. As of December 31, 2024, we had 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 to the U.S. Department of the Interior Office of Natural Resources Revenue ("ONRR") in 2012 to 2016. Note 16 — FAIR VALUE MEASUREMENTS We measure our financial assets and liabilities in accordance with Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The topic establishes market or observable inputs as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. The topic also establishes a hierarchy for grouping these assets and liabilities based upon the lowest level of input that is significant to the fair value measurement. The definition of each input is described below: • Level 1—Quoted prices in active markets for identical assets and liabilities. • Level 2—Quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active, and model‑derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3—Significant inputs to the valuation model that are unobservable. 108 Table of Contents The classification of fair value measurement within the hierarchy is based upon the lowest level of input that is significant to the measurement. Other financial instruments consist primarily of cash equivalents, accounts receivable, refundable income taxes, accounts payable, accrued liabilities, and, if any, advances under our credit facility. With the exception of investment securities, we believe cost approximates fair value for our financial instruments because of the short-term nature of these instruments. Cash Equivalents —As of December 31, 2025, and December 31, 2024, we had cash equivalents of $ 5.9 million and $ 2.6 million, respectively. Held-to-Maturity Investments —During the three months ended June 30, 2025, all of our held-to-maturity debt investments matured and as of December 31, 2025, we did not own any debt investment securities. As of December 31, 2024, we owned debt investment securities classified as held-to-maturity because we had the intent and ability to hold these investments to maturity. These held-to-maturity debt investment securities were carried at amortized cost, were recorded in "Short-term investments" on the Consolidated Balance Sheets, and consisted of the following (amounts in thousands): As of December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term Corporate bonds $ — $ — $ — $ — Government bonds 989 — — 989 Total $ 989 $ — $ — $ 989 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 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. 109 Table of Contents As required by Accounting Standards Codification ("ASC") Topic 321 - Investments-Equity Securities ("ASC 321"), equity securities were valued at fair value in the Consolidated Balance Sheet and unrealized gains and losses for investments in equity securities were included in "Other (expense) income" on the Consolidated Statement of Operations. At December 31, 2024, the fair value of our investment in NESR equity securities was $ 3.0 million and was included in "Long-term investments" on the Consolidated Balance Sheet at December 31, 2024, and the unrealized loss of $ 0.3 million was included in "Other (expense) income" on the Consolidated Statement of Operations for the year ended December 31, 2024. In May 2025, we sold all shares of NESR we owned and received proceeds of $ 2.1 million. When the NESR shares were sold, the fair value of the shares was $ 2.5 million, and we recorded a realized loss of $ 0.4 million during the three months ended June 30, 2025. For the year ended December 31, 2025, the total loss (unrealized losses plus realized losses) related to this investment was $ 0.9 million, which is included in "Other (expense) income" on the Consolidated Statement of Operations. Equity Method Investments —We are a limited partner with a 16 % interest in PEP Ovation, LP ("Ovation") as of December 31, 2025, and 2024. 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 Consolidated Balance Sheets. For the years ended December 31, 2025, and 2024, our proportional share of Ovation's net loss was $ 0.4 million and $ 0.3 million, respectively. Note 17 — EMPLOYEE BENEFITS 401(k) Plan We maintain a savings plan qualified under Internal Revenue Code Sections 401(a) and 401(k). The 401(k) Plan is available to eligible employees of our consolidated entities. Employees may contribute amounts as allowed by the U.S. Internal Revenue Service to the 401(k) Plan (subject to certain restrictions) in before-tax contributions. In January 2018, we increased the matching contributions on a dollar-for-dollar basis up to a maximum of 5 % of the employee's base compensation. Our contributions to the 401(k) Plan in the following periods were (in thousands): Contributions Year Ended December 31, 2025 $ 2,219 Year Ended December 31, 2024 $ 2,066 Year Ended December 31, 2023 $ 2,057 Note 18 — BUSINESS SEGMENTS Our operations are organized into three segments: potash, Trio ® , and oilfield solutions. 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. Intersegment sales prices are market-based and are eliminated in the "Other" column. Information for each segment is provided in the tables that follow (in thousands). 110 Table of Contents Year Ended December 31, 2025 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 139,583 $ 144,463 $ 14,440 $ ( 158 ) $ 298,328 Less: Freight costs 15,617 32,818 — ( 158 ) 48,277 Warehousing and handling costs 6,530 5,685 — — 12,215 Cost of goods sold 94,776 72,574 11,228 — 178,578 Lower of cost or NRV inventory adjustments 4,442 — — — 4,442 Gross Margin $ 18,218 $ 33,386 $ 3,212 $ — $ 54,816 Depreciation, depletion, and amortization incurred 2 $ 31,478 $ 3,353 $ 3,813 $ 1,925 $ 40,569 Year Ended December 31, 2024 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 124,833 $ 105,428 $ 24,685 $ ( 252 ) $ 254,694 Less: Freight costs 13,176 25,841 — ( 252 ) 38,765 Warehousing and handling costs 6,306 5,169 — — 11,475 Cost of goods sold 83,974 69,980 17,461 — 171,415 Lower of cost or NRV inventory adjustments 3,957 — — — 3,957 Gross Margin $ 17,420 $ 4,438 $ 7,224 $ — $ 29,082 Depreciation, depletion, and amortization incurred 2 $ 27,955 $ 3,500 $ 4,431 $ 1,803 $ 37,689 Year Ended December 31, 2023 Potash Trio ® Oilfield Solutions Other Consolidated Sales 1 $ 155,920 $ 102,182 $ 21,310 $ ( 329 ) $ 279,083 Less: Freight costs 14,753 23,211 — ( 329 ) 37,635 Warehousing and handling costs 5,957 4,875 — — 10,832 Cost of goods sold 97,452 74,308 15,518 — 187,278 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 $ 28,378 $ 6,288 $ 3,849 $ 885 $ 39,400 1 Segment sales include the sales of byproducts generated during the production of potash and Trio ® . 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: 111 Table of Contents Year Ended December 31, 2025 Potash Trio ® Oilfield Solutions Total Labor and benefits $ 29,838 $ 30,965 $ 4,821 $ 65,624 Maintenance 7,346 9,959 597 17,902 Utilities and fuel 7,564 4,752 788 13,104 Operating supplies 6,159 10,674 227 17,060 Depreciation 25,292 3,353 3,901 32,546 Other 1 18,577 12,871 894 32,342 Total cost of goods sold $ 94,776 $ 72,574 $ 11,228 $ 178,578 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 Other 1 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 Other 1 18,362 10,883 4,017 33,262 Total cost of goods sold $ 97,452 $ 74,308 $ 15,518 $ 187,278 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): 112 Table of Contents Year Ended December 31, 2025 2024 2023 Total sales for reportable segments $ 298,486 $ 254,946 $ 279,412 Elimination of intersegment sales ( 158 ) ( 252 ) ( 329 ) Total consolidated sales $ 298,328 $ 254,694 $ 279,083 Total gross margin for reportable segments 54,816 29,082 36,846 Elimination of intersegment sales ( 158 ) ( 252 ) ( 329 ) Elimination of intersegment expenses 158 252 329 Unallocated amounts: Selling and administrative 36,705 32,966 32,423 Impairment of long-lived assets 1,866 10,708 43,288 (Gain) loss on disposal of assets ( 1,175 ) 1,952 807 Accretion of asset retirement obligation 2,603 2,489 2,140 Other operating income ( 4,811 ) ( 5,215 ) ( 1,329 ) Other operating expense 8,963 6,040 3,486 Equity in loss/(earnings) of unconsolidated entities 374 299 486 Interest expense, net 232 112 — Interest income ( 2,432 ) ( 1,712 ) ( 298 ) Other non-operating expense (income) 762 ( 45 ) ( 95 ) Income (loss) before income taxes $ 11,729 $ ( 18,512 ) $ ( 44,062 ) In each of the last three years ended December 31, 2025, 2024, and 2023, 93 %, 94 %, and 95 %, 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. Note 19 — CONCENTRATION OF CREDIT RISK Credit risk represents the loss that would be recognized at the reporting date if counterparties failed completely to perform as contracted. Concentrations of credit risk, whether on- or off-balance sheet, that arise from financial instruments exist for counterparties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. Our products are marketed for sale into three primary markets. These markets are the agricultural market as a fertilizer, the industrial market as a component in drilling fluids for oil and gas exploration, and the animal feed market as a nutrient. Credit risks associated with the collection of accounts receivable are primarily related to the impact of external factors on our customers. Our customers are distributors and end-users whose creditworthiness and ability to meet their payment obligations will be affected by factors in their industries and markets. Those factors include soil nutrient levels, crop prices, weather, the type of crops planted, changes in diets, growth in population, the amount of land under cultivation, fuel prices and consumption, oil and gas drilling and completion activity, the demand for biofuels, government policy, and the relative value of currencies. Our industrial sales are significantly influenced by oil and gas drilling activity. In 2025, no customer accounted for 10% or more of our total consolidated revenues. In 2024, and 2023, we had one customer in our potash and Trio ® segments that accounted for approximately $ 25.6 million, and $ 33.4 million of our total consolidated revenues, respectively. See Item 1A. "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." We maintain cash accounts with several financial institutions. At times, the balances in the accounts may exceed the $250,000 balance insured by the Federal Deposit Insurance Corporation. 113 Table of Contents Note 20 — 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. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. 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, 2025, 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, 2025, we have approximately $ 13.0 million of remaining availability under the share repurchase program. 114 Table of Contents SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year For the Year Ended December 31, 2023 Allowances deducted from assets Deferred tax assets - valuation allowance 2,033 1,121 — 3,154 Reserve for parts inventory obsolescence 1,262 509 ( 856 ) 915 Allowance for doubtful accounts and other receivables 555 110 — 665 Total allowances deducted from assets $ 3,850 $ 1,740 $ ( 856 ) $ 4,734 For the Year Ended December 31, 2024 Allowances deducted from assets Deferred tax assets - valuation allowance 3,154 199,006 — 202,160 Reserve for parts inventory obsolescence 915 1,843 ( 1,521 ) 1,237 Allowance for doubtful accounts and other receivables 665 120 ( 630 ) 155 Total allowances deducted from assets $ 4,734 $ 200,969 $ ( 2,151 ) $ 203,552 For the Year Ended December 31, 2025 Allowances deducted from assets Deferred tax assets - valuation allowance 202,160 — ( 3,264 ) 198,896 Reserve for parts inventory obsolescence 1,237 2,422 ( 2,153 ) 1,506 Allowance for doubtful accounts and other receivables 155 62 ( 67 ) 150 Total allowances deducted from assets $ 203,552 $ 2,484 $ ( 5,484 ) $ 200,552 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.