Company: PED
Filing Date: 2025-10-29
Form Type: 10-K/A
Source: 0001654954-25-012328
Chunk: 155

Company: PEDEVCO CORP
Filing Date: 2025-10-29
Form: 10-K/A
Chunk 155
---
 (see Note 6 above), the Company entered into a five-year secured promissory note (the “Note”) with Tilloo, bearing interest at % per annum, with no payments due until January 8, 2025, and fully-amortized payments due monthly over the remaining four years of the term thereafter until maturity. The Note contains customary events of default and is secured by 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 December 31, 2024, the Company recognized $ of the Note in Current Assets, with the remaining balance of $ (including $ of accrued interest) in Other Assets on the Company’s balance sheetTilloo failed to make the initial installment payment due under the Tilloo Note on January 8, 2025. 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 December 31, 2024.

NOTE 9 – ASSET RETIREMENT OBLIGATION

Activity related to the Company’s asset retirement obligations is as follows for the year ended December 31, 2024 (in thousands):

|                                            |     | 2024 |       |   |
|:-------------------------------------------|:----|:-----|------:|:--|
| Balance at the beginning of the period (1) |     | $    | 2,313 |   |
| Accretion expense                          |     |      |   965 |   |
| Disposition of liabilities                 |     |      |  (160 | ) |
| Liabilities settled                        |     |      |  (248 | ) |
| Changes in estimates                       |     |      | 3,501 |   |
| Balance at end of period (2)               |     | $    | 6,371 |   |

| (1) | Includes $147,000 of current asset retirement obligations