Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 125

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 125
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(647,828)Revision of estimate (1)53,826 Accretion expense1,425,686 Balance, December 31, 2023$28,248,084 Liabilities incurred695,553 Liabilities sold(3,219,651)Liabilities settled(855,561)Revision of estimate (1)133,794 Accretion expense1,380,298 Balance, December 31, 2024$26,382,517 (1)Several factors are considered in the annual review process, including current estimates for removal cost and estimated remaining useful life of the assets. The revisions recorded during the years ended December 31, 2024 and 2023 were related to shorter estimated useful lives, with regards to planned dates to plug and abandon such assets. The following table presents the Company's current and non-current asset retirement obligation balances as of the periods specified.December 31, 2024December 31, 2023Asset retirement obligations, current$517,674 $165,642 Asset retirement obligations, non-current25,864,843 28,082,442 Asset retirement obligations$26,382,517 $28,248,084 

NOTE 11 — STOCKHOLDERS' EQUITYThe Company was authorized to issue 225,000,000 shares of common stock, with a par value of $0.001 per share, and 50,000,000 shares of preferred stock with a par value per share of $0.001 per share. On May 25, 2023, at the Company's annual meeting of stockholders, the Company's stockholders approved an amendment (the "Charter Amendment") to the Articles of Incorporation of the Company to increase the authorized shares of common stock from 225,000,000 to 450,000,000.Issuance of equity instruments in public and private offerings – In October 2020, the Company closed on an underwritten public offering of (i) 9,575,800 shares of common stock, (ii) 13,428,500 Pre-Funded Warrants and (iii) 23,004,300 warrants to purchase common stock (the “Common Warrants”) at a combined purchase price of $0.70. This includes a partial exercise of the over-allotment. The Common Warrants have a term of five years ending in October 2025 and an exercise price of $0.80