UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB  (Mark One)  [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period ended March 31, 2008  [   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from _____ to _______  Commission file number: 000-30065  INTREPID TECHNOLOGY & RESOURCES, INC., AND SUBSIDIARIES (Exact name of registrant as specified in its charter)  Idaho82-0230842(State or other jurisdiction of
incorporation or organization)(IRS Employer
Identification No.)  501 West Broadway, Suite 200, 
Idaho Falls, Idaho 82304 (Address of principal executive offices)  (208) 529-5337 
(Issuer's telephone number)  Idaho  (State or other jurisdiction of incorporation or organization) Registrant's telephone number, including area code:  Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes X No __  State the number of shares outstanding of each of the issuer's classes of common equity, as of the last practicable date:  3,837,087 shares of common stock, $0.005 par value per share, as of May 14, 2008.  Transitional Small Business Disclosure Format (check one): Yes __ No X    TABLE OF CONTENTS  Part I - FINANCIAL INFORMATION  Item1.Financial StatementsConsolidated Balance Sheets.............3Unaudited Consolidated Statements of Operations....4Unaudited Consolidated Statements of Cash Flows...5Notes to Unaudited Consolidated Financial Statements.....6  Item2.Managements Discussion and Analysis12Results of Operations..12Capital Resources and Liquidity.....15Item3.Controls and Procedures.....17  Part II - OTHER INFORMATION  Item1.Legal Proceedings...18Item2.Changes in Securities..18Item3.Defaults Upon Senior Securities.18Item4.Submission of Matters to a Vote of Security Holders18Item5.Other Information...18Item6.Exhibits. .19Signature Page................................20  2   PART I.  FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS  INTREPID TECHNOLOGY AND RESOURCES, INC.CONSOLIDATED BALANCE SHEETSMarch 31June 3020082007ASSETS(Unaudited)(Audited)Current assets:Cash$374,397$1,414,831Restricted cash21,0331,003,290Accounts receivable, net204,39618,546Inventories45,50024,647Prepaid expenses33,81711,483Other assets3,6263,380Total current assets682,7692,476,177Property, plant, and equipment, net11,059,67410,354,972Debt issuance costs, net1,316,0341,379,157Restricted cash764,000764,000Other assets42,30042,300Total assets$13,864,777$15,016,606LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current liabilities:Accounts payable$2,187,125$1,866,109Accrued expenses843,743621,337Total current liabilities3,030,8682,487,446Long-term liabilities:Accrued interest payable298,93569,904Long-term debt9,490,6228,149,163Embedded derivative liability2,856,2043,073,004Total long-term liabilities12,645,76111,292,071Total liabilities15,676,62913,779,517Commitments and contingenciesStockholders' equity (deficit):Common stock, $.005 par value; 25,000,000 shares15,80412,224authorized, 3,160,765 and 2,444,823 sharesissued and outstanding, respectively.Additional paid-in capital11,959,18811,005,508Stock subscription receivable(226,200)(16,200)Accumulated deficit(13,560,644)(9,764,443)Total stockholders' equity (deficit)(1,811,852)1,237,089Total liabilities and stockholders' equity (deficit)$13,864,777$15,016,606The accompanying notes are an integral part of these financial statements.  3     INTREPID TECHNOLOGY AND RESOURCES, INC.UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONSThree Months EndedNine Months EndedMarch 31,March 31,2008200720082007Revenues, net$13,43248,43762,251245,000Costs of revenues588,59013,3701,466,995102,766Gross profit (loss)(575,158)35,067(1,404,744)142,234Operating expenses:General and administrative120,13376,905567,065968,937Research and development-20,986-84,839Loss from operations(695,291)(62,824)(1,971,809)(911,542)Other income (expense):Interest income4,3613,96837,03111,546Interest expense(624,397)(46,123)(1,712,495)(59,124)Loss on disposition of assets(114,988)-(114,738)-Loss on embedded derivative liability(939,014)(384,252)(34,190)(384,252)Loss before provision forincome taxes(2,369,329)(489,231)(3,796,201)(1,343,372)Provision for income taxes----Net loss$(2,369,329)(489,231)(3,796,201)(1,343,372)Net loss per common share -basic and diluted$(0.84)(0.20)(1.47)(0.56)Weighted average commonshares - basic and diluted2,809,0002,435,0002,587,0002,411,000The accompanying notes are an integral part of these financial statements.   4     INTREPID TECHNOLOGY AND RESOURCES, INC.UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWSNine Months Ended March 31, 2008 and 200720082007Cash flows from operating activities:Net loss$(3,796,201)$(1,343,372)Adjustments to reconcile net loss to net cash used inoperating activities:Stock compensation expense129,498150,031Depreciation390,81033,454Loss on disposal of assets114,738-Amortization of debt issuance costs205,91434,446Accretion-debenture interest expense762,77018,265Common stock warrants-interest expense112,415-Loss on embedded derivative liability34,190384,252(Increase) decrease in:Accounts receivable(10,850)19,892Inventories(20,853)-Prepaid expenses1,416(9,860)Other assets(246)(1,135)Increase (decrease) in:Accounts payable208,287(24,774)Accrued expenses380,381212,569Net cash used in operating activities(1,487,731)(526,232)Cash flows from investing activities:Purchases of property and equipment(446,397)(3,569,098)Proceeds from sale of property and equipment3,772-Net cash used in investing activities(442,625)(3,569,098)Cash flows from financing activities:Proceeds from long-term debt585,00010,140,000Payments on note payable-(1,434,498)Debt issuance costs(94,359)(1,180,686)Payments on accounts payable(631,817)-Reduction of accounts payable related to debt issuance costs(101,159)-Issuance of common stock150,000503,976Common stock offering costs-(24,500)Net cash provided by (used in) financing activities(92,335)8,004,292Net increase (decrease) in cash(2,022,691)3,908,962Cash, beginning of period3,182,121716,203Cash, end of period$1,159,430$4,625,165The accompanying notes are an integral part of these financial statements.  5   INTREPID TECHNOLOGY AND RESOURCES, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2008    Note 1 - Summary of Significant Accounting Policies  Basis of Presentation  The accompanying unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and with instructions to Form 10-QSB of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from estimates. In the opinion of management, all adjustments, which consist of normal and recurring adjustments necessary for fair presentation, have been included. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's 2007 Annual Report on Form 10-KSB for the year ended June 30, 2007, as filed with the Securities and Exchange Commission.  Stock-Based Compensation  The Company has stock-based employee compensation plans, which authorize the grant of stock options to eligible employees and directors. Effective July 1, 2006, the Company adopted Statement of Financial Accounting Standards (SFAS) 123R, Share-Based Payment, using the modified prospective method. The statement requires the Company to recognize compensation cost based on the grant date fair value of options granted to employees and directors. There were no option grants during the nine months ended March 31, 2008 and 2007. Prior to July 1, 2006, the Company accounted for its stock-based employee compensation plans under the recognition and measurement principles of APB Opinion 25, Accounting for Stock Issued to Employees, and related Interpretations, and had adopted the disclosure-only provisions of SFAS 123, Accounting for Stock-Based Compensation. Accordingly, no compensation cost was recognized in the financial statements prior to 2007 for options granted to employees, as all options granted under those plans had exercise prices equal to or greater than the market value of the underlying common stock on the date of grant.  Principles of Consolidation  The consolidated financial statements include the accounts of Intrepid Technology and Resources, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.   Note 2  Going Concern  As of March 31, 2008, the Company has incurred a loss and has an accumulated deficit. These factors raise substantial doubt about the Companys ability to continue as a going concern.  While activities continue to obtain additional financing, there can be no full assurance that such funds will be available to the Company or that these efforts will be successful.  6    Note 3  Restricted Cash  Cash restricted in accordance with bond covenants is as follows:  March 31June 3020082007Undistributed funds held for construction costs$21,033$-Debt service reserve764,000764,000Interest coverage reserve-278,290Operating coverage reserve-725,000785,0331,767,290Less current portion(21,033)(1,003,290)$764,000$764,000   Note 4  Long-term Debt  Long-term debt consists of the following:  March 31June 3020082007Solid Waste Disposal Revenue Bonds issued through the Industrial Development Corporation of Gooding County, Idaho. The bonds total $7,640,000, accrue interest at 7.5%, are secured by all assets of ITR Biogas, LLC, and are due on November 1, 2024.$7,640,000$7,640,000Convertible debenture payable to YA Global Investors, L.P. of $3,075,500 and $3,500,000, respectively bearing interest at 9% due on May 22, 2010, net of warrants discount of $0 and $594,722, respectively, and embedded derivative discount of $1,524,257 and $2,396,115, respectively.1,551,243509,163Convertible debenture payable to YA Global Investors, L.P. of $585,000 and $0, respectively bearing interest at 11% due on March 28, 2010, net of warrants discount of $31,868 and $0, respectively, and embedded derivative discount of $253,753 and $0, respectively.299,379-9,490,6228,149,163Less current portion of long-term debt--$9,490,622$8,149,163   7    Note 5  Convertible Debenture, Warrant, and Embedded Derivative to YA Global Investments, L.P. (f/k/a Cornell Capital Partners, L.P.)  On March 28, 2008, the Company issued a Convertible Debenture (the Debenture) to YA Global Investments, L.P. The Debenture accrues interest at 11%, is due on March 28, 2010, and is convertible into a variable number of shares (limited to no more than 4.99% of the Companys issued and outstanding common stock). The per share conversion rate is defined as the lesser of (a) $1.50, or (b) ninety percent of the lowest volume weighted average price during the thirty trading days immediately preceding the conversion date. In connection with the Debenture, the Company also issued a warrant to purchase 1,400,000 shares of the Companys common stock with an exercise price of $1.50 per share, a warrant to purchase 1,400,000 shares of the Companys common stock with an exercise price of $2.50 per share, and a warrant to purchase 1,400,000 shares of the Companys common stock with an exercise price of $3.50 per share. The warrants expire on March 28, 2013.  The Company analyzed the Debenture and warrants based on the provisions of EITF 00-19 and determined that the conversion option of the Debenture qualifies as an embedded derivative and the warrants qualify for equity classification. Information related to the recognition of the warrants and embedded derivative are as follows:  Warrant  The fair and assigned values of the warrants were determined to be $32,000. The fair value was calculated using the Black-Scholes option pricing model with the following factors, assumptions and methodologies:  · The fair value of the Companys common stock was calculated to be $1.00 per share on March 28, 2008. · A volatility of 125% was calculated by using the Companys closing stock prices since March 2003. · The exercise price was $1.50, $2.50, and $3.50 for the three 1,400,000 warrants. · The estimated life was determined to be 5 years, which is equal to the contractual lives of the warrants. · The risk free interest rate was determined to be 2.51% based on the 5-year treasury rate.  Embedded Derivative  The initial fair value of the embedded derivative was determined to be $254,800 and was recorded as an embedded derivative liability. The embedded derivative is revalued at the end of each reporting period and any resulting gain or loss is recognized as a current period charge to the statement of operations. The fair value of the Companys common stock was calculated to be $1.00 per share at the inception of the Debenture. The fair value was calculated using the Black-Scholes option pricing model with the following factors, assumptions and methodologies:  · A volatility of 92% was calculated by using the Companys closing stock prices since April 2004. · The exercise price was $1.09. This amount was determined based on the lesser of the fixed conversion price of $1.50, or 90% of the lowest daily volume weighted average trading price per share of the Companys common stock during the 30 trading days immediately preceding March 28, 2008. · The estimated life was determined to be 2 years, which is equal to the contractual life of the embedded derivate. · The risk free interest rate was determined to be 1.67% based on the 2-year treasury rate.  Accretion expense related to the Companys warrant and embedded derivative discounts at March 31, 2008 is as follows:  Warrant $ 117,879 Embedded derivatives 644,891  $ 762,770   8   Note 5  Convertible Debenture, Warrant, and Embedded Derivative to YA Global Investments, L.P. (f/k/a Cornell Capital Partners, L.P.) (continued)  The embedded derivative liability consists of the following:  Fair value at June 30, 2007 $ 3,073,004 Fair value at inception of new embedded derivative 254,800 Reduction due to conversion of debt (263,679) Reduction due to exercise of warrants (242,111) Loss on period end revaluation 34,190  $ 2,856,204   Note 6  Supplemental Cash Flow Information  Actual amounts paid for interest and income taxes are approximately as follows:  2008 2007  Interest $ 297,162 58,684  Income taxes $ - -   During the nine months ended March 31, 2008, the Company:  · Acquired property, plant, and equipment in exchange for an increase in accounts payable of $846,709.  · Increased debt issuance costs in exchange for accounts payable of $48,432.  · Capitalized accrued interest of $114,116.  · Sold property, plant, and equipment in exchange for accounts receivable of $175,000 and a reduction of accounts payable of $18,200.  · Issued 44,916 shares of common stock for a reduction in accounts payable of $2,979 and a reduction in accrued expenses of $43,060.  · Issued 12,500 shares of common stock for an increase in prepaid expenses of $23,750.  · Issued 293,329 shares of common stock due to the conversion of $424,500 of convertible debenture. As a result of the conversion, additional paid-in capital was increased by $35,533. The embedded derivative liability was decreased by $263,679 and the embedded derivative discount was decreased by $228,146.  · Issued 150,000 shares of common stock due to the exercise of warrants. As a result of the exercise, additional paid-in capital was decreased by $234,732. The embedded derivative liability was decreased by $242,111 and the embedded derivative discount was decreased by $476,843.  · Recorded an embedded derivative liability and discount on a convertible debenture of $254,800.  · Recorded additional paid-in capital and a discount on a convertible debenture of $32,000 as a result of the issuance of common stock warrants.  · Issued 171,640 shares of common stock in exchange for a reduction of accounts payable of $28,257, and an increase in stock subscription receivable of $210,000.  9    Note 6  Supplemental Cash Flow Information (continued)  During the nine months ended March 31, 2007, the Company:  · Reclassified $57,000 of prepaid expense to property, plant and equipment.  · Acquired property, plant, and equipment in exchange for an increase in the note payable of $878,234.  · Acquired property, plant, and equipment in exchange for an increase in accounts payable of $1,278,399.  · Capitalized accrued interest of $238,750.  · Issued 2,500 shares of common stock in exchange for debt issuance costs of $14,500.  · Recorded additional paid-in capital and a discount on the convertible debenture of $654,000 as a result of the issuance of a common stock warrant.  · Recorded an embedded derivative liability of $2,350,188, recorded a discount on the convertible debenture of $1,846,000, and recognized a loss on the embedded derivative liability of $504,188.  · Decreased the value of the embedded derivative liability and recognized a gain on the embedded derivative liability of $119,936.   Note 7  Capital Stock  Preferred Stock  Effective March 31, 2008, the Company amended its articles of incorporation to eliminate the previously authorized shares of preferred stock, none of which were issued or outstanding.  Authorized Common Stock  Effective March 31, 2008, the Company amended its articles of incorporation to reduce the number of authorized shares of common stock to 25,000,000 shares.   Note 8  Reverse Stock Split  Effective March 31, 2008, the Company approved a 1-for-100 reverse stock split. All common share amounts and per share information have been retroactively adjusted to reflect this reverse common stock split in the accompanying financial statements.   Note 9  Recent Accounting Pronouncements  In March 2008, the FASB issued SFAS 161 which amends and expands the disclosure requirements of SFAS 133 to provide an enhanced understanding of an entitys use of derivative instruments, how they are accounted for under SFAS 133 and their effect on the entitys financial position, financial performance and cash flows. The provisions of SFAS 161 are effective for the period beginning after November 15, 2008. The Company is currently reviewing the effect that the adoption of this statement will have on our financials statements.    10   Note 10  Subsequent Events  On May 1, 2008, an interest payment in the amount of $286,500 came due on the Solid Waste Industrial Bonds. Due to insufficient working capital, the Company was unable to pay that amount to the Trustee. As a violation of Section 4.1 of the Loan Agreement, this constitutes an Event of Default under both the Loan Agreement and the Indenture. Section 514 of the Loan Agreement provides for interest and/or principal to be paid from the Debt Service Reserve Fund when there are insufficient deposits to make each payment in full. The Bond Trustee transferred $286,500 from the Debt Service Reserve Fund to the Bond Fund and paid the interest due as of May 1, 2008.  The Debt Service Reserve Fund is required to be replenished with equal monthly payments not to exceed twelve months.    11    ITEM 2.     MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  The following discussion contains forward-looking statements that involve known and unknown risks and uncertainties which may cause actual results in future periods to differ materially from those indicated herein as a result of a number of factors, including, but not limited to, those set forth under Legal Proceedings, and the discussion below.  When the Company uses words like "may," "believes," "expects," "anticipates," "should," "estimate," "project," "plan," their opposites and similar expressions, the Company is making forward-looking statements. These expressions are most often used in statements relating to business plans, strategies, anticipated benefits or projections about the anticipated revenues, earnings or other aspects of our operating results. We make these statements in an effort to keep stockholders and the public informed about our business and have based them on our current expectations about future events. Such statements should be viewed with caution. These statements are not guarantees of future performance or events. As noted elsewhere in this report, all phases of our business are subject to uncertainties, risks and other influences, many of which the Company has no control over. Additionally, any of these factors, either alone or taken together, could have a material adverse effect on the Company and could change whether any forward-looking statement ultimately turns out to be true. The Company undertakes no obligation to publicly release updates or revisions to these statements.  The following discussion should be read in conjunction with audited consolidated financial statements and the notes filed thereto on Form 10-KSB with the U.S. Securities and Exchange Commission for the year ending June 30, 2007.   RESULTS OF OPERATIONS  Revenue  Revenue for the quarter ended March 31, 2008, decreased 72% to $13,432 compared to $48,437 for the same period in 2007. Revenue for the nine months ended March 31, 2008 decreased 75% to $62,251 from $245,000 for the same nine months ended March 31, 2007.  This decrease was mainly the result of decreased sales of contracted work for others over the corresponding periods of one year ago. Also, the nine months ending March 31, 2007 included a $50,000 grant from the Idaho Department of Water Resources.  The Companys first biogas plant in Rupert, Idaho, is producing 99+% purity natural gas on a consistent basis; and the independent, third party gas sample testing phase was completed in December.  The second plant in Wendell, Idaho, is in the start-up phase and will produce gas of the same quality and approximately 30% more volume than the Rupert facility. The Company has a 15-year Supply and Purchase Agreement in place with the local gas utility for the balance of gas being produced at the plants.  The utility is currently making necessary arrangements to receive this gas into their distribution system for commercial sale.  Direct Operating Costs  Direct operating costs for the three months ending March 31, 2008 and 2007 were $588,590 and $13,370, respectively. Direct operating costs for the nine months ending March 31, 2008 and 2007 were $1,466,995 and $102,766, respectively. The direct operating costs increased due to costs for operating the Company-owned plants.  Revenue and operating costs will both increase (though operating costs will decrease as a percentage of revenue) once the Company is able to consistently deliver gas, horticultural fiber, and carbon offset credits to the marketplace.   Gas sales revenues started in the 3rd fiscal quarter of FYE 2008, and should significantly increase during the 4th quarter as both plants achieve higher production.  Gross Profit  The Company had a gross profit (loss) of ($575,158) for the quarter ended March 31, 2008, compared to a gain of $35,067 the prior year.  For the nine months ended March 31, 2008, the Company had a gross profit (loss) of ($1,404,744) compared to a gain of $142,234 for the same period in the prior year.  The decrease in gross profit resulted from the direct operating costs associated with start-up of Company-owned production plants without corresponding revenues.   12   General and Administrative and Research and Development Expenses  For the three months ended March 31, 2008 and 2007, General & Administrative and Research & Development expenses were $120,133 and $97,891, respectively.  For the nine months ended March 31, 2008 and 2007 General & Administrative and Research & Development expenses were $567,065 and $1,053,776, respectively.  Over the last two fiscal years, the Company incurred large costs for the construction, start-up, and operations of the Companys Whitesides Biogas Plant; and over the last fiscal year for the design, permitting, and construction of the new WestPoint Biogas Plant.  Only those costs allowed by generally accepted accounting principles have been capitalized in that effort.  All other costs have been expensed for establishing the biogas business operating plan, including research in the biofuels markets, development of operations, maintenance procedures, process improvement measures, and seeking investment capital and source financing. Research and development costs have reduced significantly as we have shifted from R&D and construction to plant operations.  Interest Income  For the three months ended March 31, 2008 and 2007, the Company received interest income of $4,361 and $3,968, respectively.  For the nine months ended March 31, 2008 and 2007, the Company received interest income of $37,031 and $11,546, respectively. Most of the interest income was on restricted cash bond funds.  Interest Expense  For the three months ended March 31, 2008 and 2007, the Company had interest expense of $624,397 and $46,123, respectively. For the nine months ended March 31, 2008 and 2007, the Company incurred interest expense of $1,712,495 and $59,124, respectively. Of the expense for the nine months ended March 31, 2008, $910,710 is amortization of historical costs and will not involve future cash outlays. The 2008 expense was for interest accrued on the bond and the YA Global debentures.  Loss on Embedded Derivative Liability  For the three months ended March 31, 2008 and 2007, the Company recognized net losses on the YA Global Embedded Derivative Liability of $939,014 and $384,252, respectively. For the nine months ended March 31, 2008 and 2007 the Company recognized net losses of $34,190 and 384,252, respectively.  Net Loss  For the three months ended March 31, 2008 and 2007, the Company had net losses of $2,369,329 and $489,231, respectively. For the nine months ended March 31, 2008 and 2007 the Company had net losses of $3,796,201 and $1,343,372, respectively. The change is due to start-up plant operating costs without corresponding revenue and increased interest expense.   MANAGEMENT'S PLAN OF OPERATION  In the past, providing engineering and technical services has been the primary source of revenue.  The Company expects to continue providing such services in the future, but with a shift in emphasis toward providing consulting services to 3rd party developers of biofuels projects.  In FYE 2008, the Company will expand its efforts to become a significant producer and distributor of biogas products and a facilities service provider. The following discussion provides an overview of our progress in making the transition.  13   The fundamental aspects of the Company's business model are:  ·
Utilize cutting edge, but established, technology for the production of biogas from large animal operations;·
Maintain equity positions in biogas projects;·
Begin operations in known territory (Idaho), and expand into other western states as resources permit;·
Maximize the utilization of our public company status in the financing of our projects;·
Market biogas products to local gas utilities, industrial users, and transportation users;·
Team with experienced companies for the marketing and distribution of biogas products.   DEVELOPMENT PLAN  The Company will design, construct, own (and in select situations, co-own), and operate production facilities consistent with the business model described above.  The centerpiece of this development plan is digestion technology that produces biogas with a higher concentration of methane than competing processes.  This technology has a successful 7-year operational history and has been demonstrated with both cow and swine waste.  Our goal is to become the premier biogas company in the United States.  Our approach is to use superior technology and know-how to convert manure waste from dairy and feedlot operations into high BTU biogas and high quality horticultural-grade fiber.  The biogas is further processed to produce (1) pipeline quality gas for sale to a gas utility, marketing and distribution company, or industrial end user; (2) combustion gas to fuel boilers for processing materials; (3) liquid natural gas for transportation fuel, peaking, and/or remote community service; and, eventually, (4) hydrogen to energize fuel cells for transportation and distributed or non-distributed energy sources.  Our range of services include:  · designing, building, and operating biofuels facilities; · performing value-added processing of raw biogas and residual products of digestion for various applications; · marketing, transportation and sales of those co-products.  The Rupert plant recently underwent a 5-fold expansion to accommodate a corresponding expansion of the diary upon which it is located and has been designed with special features that allow it to serve as a test platform for the Company to continue its research and development activities.  The gas from both plants is under contract for sale to the local gas utility via a 15-year Supply and Purchase Agreement.  A small portion of the gas is used on-site for plant process heating and for heating water for dairy operations.  The Development Plan involves discrete projects that will ultimately bring 250,000 Magic Valley dairy cows under production to create the Magic Valley Biogas Field in the Magic Valley area of south-central Idaho.  The first project is essentially complete with the two plants described above.  The total combined capital investment for this first phase of the project was $11.5 million and was financed via a combination of 50% debt (tax-exempt municipal revenue bond) and 50% equity (public shareholder).  The second phase of the project will be phased and ultimately involve 60,000 cows.  Future projects will be financed through a combination of debt and equity.  As with our first project, we anticipate that the debt portion will be financed through the sale of bonds.  The equity will come from equity partners that will include dairymen, equity capital group(s), or other private investors and from retained earnings generated through building biogas plants for third parties.  These funds will provide for anaerobic digester plants constructed at participating dairies, gas conditioning clean-up equipment for processing the raw biogas to pipeline quality standards, and a supporting gas line gathering system to transport the clean gas to the gas utility distribution system.  A majority of the costs (approximately 70%) is for construction of the digesters.   14   Additional Information  The Company plans to increase sales and expand its engineering and scientific services into the biofuels area.   Revenue generated will be used to meet cash flow requirements with any excess being used to support and develop the Companys biofuels production initiatives.  At the present time the Company does not anticipate paying dividends, cash or otherwise, on its Common Stock in the foreseeable future. Future dividends will depend on earnings, if any, of the Company, its financial requirements and other factors.  The Company believes that the terms of the Settlement Agreement relative to divestiture of its mining and mineral rights of the Garnett mine in Montana have the potential to provide moderate future working capital. The Company was able to successfully obtain bond financing under a State of Idaho approved bond inducement resolution during the past eighteen months; conclusively demonstrating its ability to attract outside investment capital.  The Company continues to seek other investment capital to support future projects and the existing and ongoing Company operations.   CAPITAL RESOURCES AND LIQUIDITY  As the Company expands into the biofuels business, it will face continuing challenges to finance growth.  This is particularly true of further development of the Magic Valley bio-gas field.  In addition to capital expenditures for the first two digester facilities, financing resources are needed to support operations.  The Company has made reasonable efforts to meet cash flow demands from ongoing operations but the Company may not always be able to obtain sufficient funds to satisfy the Companys working capital or other capital needs.  The Company finished the nine months ended March 31, 2008 with available cash of $374,397 and restricted cash of $785,033 compared to available cash of $1,414,831 and restricted cash of $1,767,290 at June 30, 2007.  The Company believes that it will be necessary to continue to supplement the cash flow from operations with the use of outside resources such as investment capital by issuance of debenture notes and stock.  The Company plans to use any additional funding to cover operating and developments costs.  As of March 31, 2008, the Company had negative working capital of ($2,348,099) and a current ratio of 0.23:1 compared to a deficit of ($11,269) and a current ratio of 0.99:1 as of June 30, 2007.  During the nine months ended March 31, 2008 and 2007 the Company used net cash of $1,487,731 and $526,232, respectively, for operating activities.  During the nine months ended March 31, 2008 and 2007 the Company used $1,074,442 and $3,569,098, respectively, in investing activities, primarily in biogas generating facility construction costs.  During the nine months ended March 31, 2008 and 2007 financing activities provided $539,482 and $8,004,292, respectively.  Seasonal Changes.  The Companys operating revenue is generally not affected by seasonal changes.   RECENT ACCOUNTING PRONOUNCEMENTS  In March 2008, the FASB issued SFAS 161 which amends and expands the disclosure requirements of SFAS 133 to provide an enhanced understanding of an entitys use of derivative instruments, how they are accounted for under SFAS 133 and their effect on the entitys financial position, financial performance and cash flows. The provisions of SFAS 161 are effective for the period beginning after November 15, 2008. The Company is currently reviewing the effect that the adoption of this statement will have on our financials statements.       15   RISK FACTORS  The Companys current and primary focus is obtaining permits and developing favorable properties for alternative and renewable energy production, and providing the associated engineering design and construction management services required to support the construction and operation of related facilities, and cannot provide any guarantees of profitability at this time.  The Company will continue to expand its engineering services base, work for others to generate additional revenue to augment working capital requirements in support of its alternative and renewable energy efforts.  The realization of profits is dependent upon successful execution of new business opportunities and the development of prototype digester models and implementation of the digester project for renewable energy.  The Company is dependent upon inducing larger companies or private investors to purchase these turn-key alternative renewable energy generation and production facilities.  These projects when developed and depending on their success will be the future of the Company.  The Company may not be successful in these efforts.  Our operating results are difficult to predict in advance and may fluctuate significantly, and a failure to meet the expectations of analysts or our stockholders would likely result in a substantial decline in our stock price.  Factors that are likely to cause our results to fluctuate include the following:  · the gain or loss of significant customers or significant changes in engineering services market; · the amount and timing of our operating expenses and capital expenditures; · the success or failure of the biofuels projects currently underway; · the timing, rescheduling or cancellation of engineering customers work orders; · our ability to develop, complete, introduce and market biofuels and bring them to volume production in a timely manner; · the rate of adoption and acceptance of new industry standards in our target markets; · any other unforeseen activities or issues.  There is a limited public market for our common stock. Our common stock is listed on the OTC Bulletin Board, and there is a limited volume of sales, thus providing a limited liquidity into the market for our shares. As a result of the foregoing, stockholders may be unable to liquidate their shares.  We are subject to various risks associated with the development of the biofuels and alternative energy market place and if we do not succeed our business will be adversely affected.  Our success will largely depend on our ability to develop and implement the anaerobic digester biogas projects and generate energy and gas for sale.  We will respond to technological advances and emerging industry standards and practices on a timely and cost-effective basis. However, we cannot predict if we will be effective or succeed in the development of the biofuels and renewable energy markets.  If we are unable for technical, legal, financial, or other reasons, to adapt in a timely manner to develop and operate in the biofuels market, our business, results of operations and financial condition could be materially adversely affected.  If needed, we may not be able to raise further financing, or it may only be available on terms unfavorable to us or to our stockholders.  Available cash resources may not be sufficient to meet our anticipated working capital and capital expenditure requirements if the biogas facilities do not produce sufficient revenues for at least 12 months. It may become necessary to raise additional funds to respond to business contingencies, which could include the need to:  · fund additional project expansion for the biofuels production; · fund additional marketing expenditures; · develop additional biofuels projects; · enhance our operating infrastructure; · hire additional personnel; · acquire other complementary businesses or technologies.    16   If we raise additional funds through the issuance of equity or convertible debt securities, the ownership of our current stockholders would be diluted, and these newly issued securities might have rights, preferences or privileges senior to those of existing stockholders. Additional financing might not be available on terms favorable to us, or at all. If adequate funds were not available or were not available on acceptable terms, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our products or otherwise respond to competitive pressures would be significantly limited.   ITEM 3.  CONTROLS AND PROCEDURES  (a) Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-14(c) promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act), as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed in our filings under the Securities and Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and to ensure that information required to be disclosed by us in the reports we file or submit under the Securities and Exchange Act is accumulated and communicated to management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosures.  (b) There have been no changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls over financial reporting during the last fiscal year that have has materially affected or could materially affect these internal controls over financial reporting.     17   PART II OTHER INFORMATION  ITEM 1. LEGAL PROCEEDINGS. None.  ITEM 2. CHANGES IN SECURITIES.  Preferred Stock  Effective March 31, 2008, the Company amended its articles of incorporation to eliminate the previously authorized shares of preferred stock, none of which were issued or outstanding.  Authorized Common Stock  Effective March 31, 2008, the Company amended its articles of incorporation to reduce the number of authorized shares of common stock to 25,000,000 shares.  Reverse Stock Split  Effective March 31, 2008, the Company approved a 1-for-100 reverse stock split. All common share amounts and per share information have been retroactively adjusted to reflect this reverse common stock split in the accompanying financial statements.  ITEM 3. DEFAULTS UPON SENIOR SECURITIES. On May 1, 2008, an interest payment in the amount of $286,500 came due on the Solid Waste Industrial Bonds. Due to insufficient working capital, the Company was unable to pay that amount to the Trustee in violation of Section 4.1 of the Loan Agreement. This constitutes an Event of Default under both the Loan Agreement and the Indenture. Section 514 of the Loan Agreement provides for interest and/or principal to be paid from the Debt Service Reserve Fund when there are insufficient deposits to make each payment in full. The Bond Trustee transferred $286,500 from the Debt Service Reserve Fund to the Bond Fund and paid the interest due as of May 1, 2008.  The Debt Service Reserve Fund is required to be replenished with equal monthly payments not to exceed twelve months.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. None during the third quarter ending March 31, 2008.   ITEM 5. OTHER INFORMATION. None   18   ITEM 6. EXHIBITS  Exhibit No.DescriptionIncorporated by Reference from Registrant's31.1Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer31.2Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer, Secretary and Treasurer32Certification pursuant to 18 U.S.C. SECTION 1350by Chief Executive Officer, and Secretary/TreasurerAnnual report for year end June 30, 2007Form 10-KSB September 21, 2007Pre-effective amendment #2 to SB-2 registration filing with YA Global Investments, L.P.Form SB-2/A October 2, 2007Notice of Effectiveness pre-effective amendment #2 to SB-2 registration filing with YA Global Investments, L.P.Form EFFECT October 16, 2007Entry into a material definitive agreement with YA Global Investments, L.P.Form 8-K October 16, 2007ProspectusForm 424B3 October 16, 2007Preliminary 14A Proxy StatementForm Pre14A October 19, 2007Definitive 14A Proxy StatementForm Def 14A October 30, 2007Appointment of a new director to the boardForm 8-K November 6, 2007Resignation of CEOForm 8-K November 7, 2007Quarterly report for three months ended September 30, 2007Form 10-QSB November 11, 2007Appointment and change in principal officersFrom 8-K December 19, 2007Entry into a material definitive agreement with YA Global Investments, L.P.Form 8-K  January 4, 2008Entry into a material definitive agreement with YA Global Investments, L.P.Form 8-K January 4, 2008Prospectus Supplement No. 1Form 424-b3 January 4, 2008Quarterly report for six months ended December 31, 2007Form 10-QSB February 14, 2008Prospectus Supplement No. 2Form 424B3 February 14, 2008Resignation of Director and Appointment of DirectorForm 8-K March 3, 2008Resignation of DirectorForm 8-K March 21, 2008Registration of 2008 Consultants Compensation PlanForm S-8 March 25, 2008Articles of Amendment and Ticker Symbol ChangeForm 8-K March 31, 2008Entry into a material definitive agreement with YA Global Investments, L.P.Form 8-K April 3, 2008Appointment of CEOForm 8-K April 9, 2008Auto-Generated Paper DocumentREGDEX April 17, 2008  19   SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  INTREPID TECHNOLOGY & RESOURCES, INC.(Registrant)Date: May 15, 2008By:  /s/ John D. Haffey,Chief Executive OfficerDate: May 15, 2008By:  /s/ Dr. Jacob D. Dustin,President  &
Acting Chief Financial OfficerDate: May 15, 2008By:  /s/ Robert V. Searcy,Controller, Secretary & Treasurer    20