Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 1788

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 5
Chunk 1788
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ations. Share-based compensation is utilized for the purpose of conserving cash resources for use in field development activities and operations.

Loss on Sale of Oil and Gas Properties, net. The Company completed three oil and gas property sales transactions during the year ended December 31, 2024, for a total net loss on the sale of oil and gas properties of $76,000, as follows:  (i) the Company sold 30 gross (5.1 net) non-operated legacy well-bores in its D-J Basin Asset for net cash proceeds of $90,000 during 2024, resulting in the Company recognizing a loss on sale of oil and gas properties of $865,000 for these non-core assets, while noting.  the Company still retained the corresponding acreage related to the sale for any potential future development; (ii) the Company sold a legacy well-bore assignment for net cash proceeds of $25,000 and recognized a gain on sale of oil and gas properties of $29,000; and (iii)  the Company sold leasehold rights to 320 net acres located in the D-J Basin for net cash proceeds of $750,000 and recognized a corresponding gain on sale of oil and gas properties of $735,000, as the leasehold costs had been fully depleted. In the prior period, the Company sold its then-wholly-owned subsidiary EOR Operating Company and related assets in the November 2023 Milnesand Sale and recognized the corresponding loss of $4.3 million. (see “Item 8. Financial Statements and Supplementary Data” - “Note 7 - Oil and Gas Properties”).

Interest Income and Other (Expense) Income. Includes interest earned from our interest-bearing cash accounts, for which interest rates have remained relatively flat in the current period, compared to the prior period, and interest on our note receivable. Other expense in the current period primarily relates to the subsequent disposition of a cash escrow bank balance related to the Milnesand Sale. Other income in the prior period is primarily related to the sale of used pipe.

Gain on Sale of Fixed Asset. Relates to the sale of a vehicle and the subsequent purchase of another vehicle in the current period.

Liquidity and Capital Resources

The primary sources of cash for the Company during the year ended December 31, 2024 were from $39.6 million in sales of crude oil and natural gas. The primary uses of cash were funds used for drilling, completion, acquisition and operating costs.

Working Capital