Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 2251

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2251
---
 During fiscal year 2024, the Company reimbursed the OCD $248,000 in plugging and abandoning costs related to the SFO.

NOTE 10 – COMMITMENTS AND CONTINGENCIES Lease Agreements Currently, the Company has one operating sublease for office space that requires Accounting Standards Codification (“ASC”) Topic 842 treatment, discussed below. The Company’s leases typically do not provide an implicit 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, the Company currently maintains 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. The Company had a lease for its corporate offices in Houston, Texas on approximately 5,200 square feet of office space that expired on August 31, 2023 and had a base monthly rent of approximately $10,000. In December 2022, the Company entered into a new lease agreement for its existing office space that commenced on September 1, 2023, which expires on February 28, 2027. The base monthly rent is approximately $9,200 for the first 18 months and increases to approximately $9,500 thereafter. The Company paid both a security deposit and prepaid rent for $14,700, respectively.

 103Table of Contents

Supplemental cash flow information related to the Company’s operating lease is included in the table below (in thousands):   Year Ended    December 31, 2024 Cash paid for amounts included in the measurement of lease liabilities $110  Supplemental balance sheet information related to operating leases is included in the table below (in thousands):   December 31, 2024 Operating lease – right-of-use asset $224      Operating lease liabilities – current $99 Operating lease liabilities – long-term  129 Total lease liability $228  The weighted-average remaining lease term for the Company’s operating lease is 2.2 years as of December 31, 2024, with a weighted-average discount rate of 7.90%. Lease liability with enforceable contract terms that have greater