Company: PED
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001654954-25-005762
Chunk: 41

Company: PEDEVCO CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 a lien over all the assets and capital shares of EOR created under a Security Agreement, a Security Agreement (Pledge of Corporate Securities), and a Mortgage entered into by and between the Company and Tilloo. As of March 31, 2025, the Company recognized $498,000 of the Note in Current Assets, with the remaining balance of $769,000 (including $145,000 of accrued interest) in Other Assets on the Company’s balance sheet. Tilloo failed to make the initial installment payment due under the Tilloo Note on January 8, 2025, and has not made any other monthly payments due to date. The Company issued a notice of default under the Note to Tilloo in mid-January 2025, and the Company intends to pursue all available avenues and remedies, including potential foreclosure under the security agreement and mortgages securing the secured obligation, to resolve these matters. Tilloo may not timely pay the Note when due, if at all. However, as the Tilloo Note is fully-secured, the Company believes that should it pursue foreclosure under the security agreement and mortgages, that it would ultimately be made whole, so no reserve allowance is required as of March 31, 2025.

 10Table of Contents

NOTE 8 – ASSET RETIREMENT OBLIGATIONS Activity related to the Company’s asset retirement obligations is as follows (in thousands):   Three Months Ended March 31, 2025 Balance at the beginning of the period (1) $6,371 Accretion expense  293 Liabilities settled  (226)Changes in estimates, net  1,085 Balance at end of period (2) $7,523  (1) Includes $663,000 of current asset retirement obligations at December 31, 2024.  (2) Includes $674,000 of current asset retirement obligations at March 31, 2025.  In New Mexico, the Company, through its New Mexico operating subsidiary Ridgeway Arizona Oil Corp. (“RAZO”), has entered into a Stipulated Final Order (“SFO”) with Director of the Oil and Gas Conservation Division of New Mexico (the “OCD”) pursuant to which, among other things, RAZO agreed to reimburse the OCD for actual costs incurred by the OCD for plugging and abandoning approximately 299 inactive legacy wells in the Permian Basin Asset at a rate of $2.