Company: NINE
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001532286-25-000011
Chunk: 64

Company: Nine Energy Service, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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Revaluation adjustments25 Payments(223)Balance at March 31, 2025$521 Balance at December 31, 2023$1,219 Revaluation adjustments(74)Payments(159)Balance at March 31, 2024$986 

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All contingent liabilities that relate to contingent consideration are reported at fair value, based on a Monte Carlo simulation model. Significant inputs used in the fair value measurement include forecasted sales of the plugs, terms of the agreement, a risk-adjusted discount factor (of 4.3%), and a credit-adjusted rate (ranging from 11.5% to 11.6%). Contingent liabilities include $0.5 million and $0.6 million reported in “Accrued expenses” at March 31, 2025 and December 31, 2024, respectively, and $0.0 million and $0.1 million reported in “Other long-term liabilities” at March 31, 2025 and December 31, 2024, respectively, in the Company’s Condensed Consolidated Balance Sheets. The impact of the revaluation adjustments is included in the Company’s Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

11. Taxes

The Company’s provision (benefit) for income taxes included in its Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) was as follows:Three Months Ended March 31, 20252024(in thousands, except percentages)Provision for income taxes$115 $154 Effective tax rate(1.7)%(1.9)%The Company’s provision for income taxes for the three months ended March 31, 2025 was primarily attributed to state and non-U.S. income taxes. At March 31, 2025, the Company continued to record a full valuation allowance against its net deferred tax asset positions in the U.S. and Canada.

12. Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is based on the weighted average number of shares outstanding for the period, including the dilutive effect of equity awards.Basic and diluted earnings (loss) per share of common stock was computed as follows:  Three Months Ended March 31, 2025Three Months Ended March