v3.26.3
DISCONTINUED OPERATIONS (Tables)
 9 Months Ended
Sep. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
The table below presents the assets and liabilities held for sale (amounts in thousands):

December 31, 2025
Accounts receivable$1,797 
Inventory114 
Prepaid expenses and other current assets43 
Property, plant, equipment, and mineral properties, net36,017 
Water rights16,873 
Other long term assets4,310 
Assets held for sale$59,154 
Accounts payable$188 
Accrued liabilities140 
Accrued employee compensation and benefits170 
Contract liability - current portion753 
Asset retirement obligations389 
Long term contract liability1,730 
Liabilities held for sale$3,370 

The following table presents the results of discontinued operations for the three and nine months ended September 30, 2026, and 2025 (amounts in thousands):

Three Months Ended September 30,Nine Months Ended
September 30,
2026202520262025
Sales$— $2,412 $2,366 $9,581 
Less: cost of goods sold— 1,790 1,823 5,752 
Gross Margin— 622 543 3,829 
Selling and administrative— 8 — 56 
Accretion of asset retirement obligation— 8 9 24 
Gain on sale of assets— (2,241)(3)(2,275)
Other operating income— — — (1)
Gain on sale of discontinued operations— — (13,263)— 
Net income of discontinued operations before income tax— 2,847 13,800 6,025 
Income tax benefit (expense)— 169 (81)56 
Net income of discontinued operations, net of tax$— $3,016 $13,719 $6,081 
Contract Balances: Customers generally pay the total amount due under surface use agreements when the agreement is executed. Depending on the nature of the performance obligations in the various surface use agreements, revenue may be recognized at a point in time or over time. Our contract liabilities (sometimes referred to in practice as deferred revenue) represent the amount of cash we received from customers under surface use agreements at Intrepid South where the associated revenue is being recognized over time.
Under the terms of the Intrepid South sales agreement, we retained one-half of the $2.4 million contract liability balance as of March 31, 2026, which was included in the gain on the sale of Intrepid South. The remaining one-half of the contract liability balance was included as an adjustment to the final sales price.
As of December 31, 2025, we had total contract liabilities of $2.5 million, of which $0.8 million was current and included in "Liabilities held for sale" on the Condensed Consolidated Balance Sheets.
Deferred revenue activity during the three and nine months ended September 30, 2026, and 2025, and the ending contract liability balances at the end of each of those periods is shown below (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Beginning balance$— $2,590 $2,483 $2,431 
Additions— 172 123 1,044 
Recognized as revenue during period— (290)(229)(1,003)
Liability extinguished upon sale of discontinued operations— — (2,377)— 
Ending Balance$— $2,472 $— $2,472