Company: PED
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013092
Chunk: 85

Company: PEDEVCO CORP
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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 rate. Accordingly, the Company is required to use its incremental borrowing rate in determining the present value of lease payments based on the information available at the commencement date. The Company’s incremental borrowing rate would reflect the estimated rate of interest that it would pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. However, at the time of implementation the Company maintained no debt, and in order to apply an appropriate discount rate, the Company used a borrowing rate obtained from a financial institution at which it maintains banking accounts.In December 2022, the Company entered into a lease agreement for approximately 5,200 square feet of office space in Houston, Texas, that commenced on September 1, 2023, which expires on February 28, 2027. The remaining monthly payments are approximately $15,800 through February 2026 and increase to approximately $16,000 through the end of the lease. The Company paid a security deposit of $14,700.Supplemental cash flow information related to the Company’s operating office lease is included in the table below (in thousands):   Nine Months Ended    September 30, 2025 Cash paid for amounts included in the measurement of lease liabilities $122 

 12Table of Contents

 Supplemental balance sheet information related to operating leases is included in the table below (in thousands):   September 30, 2025 Operating lease – right-of-use asset $256      Operating lease liabilities - current $178 Operating lease liabilities - long-term  79 Total lease liability $257  The weighted-average remaining lease term for the Company’s operating lease is 1.4 years as of September 30, 2025, with a weighted-average discount rate of 7.90%. Lease liability with enforceable contract terms that have greater than one-year terms are as follows (in thousands): Remainder of 2025 $47 2026  191 Thereafter  32 Total lease payments  270 Less imputed interest  (13)Total lease liability $257  Leasehold Drilling Commitments The Company’s oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production or otherwise exercise options to extend such leases, if available, in exchange for payment of additional cash consideration. In the D-J