Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 47

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 47
---
 costs being amortized;4)less income tax effects related to differences between the book and tax basis of the properties.No impairments on oil and natural gas properties as a result of the ceiling test were recorded for the three months ended March 31, 2025 and 2024.

Land, Buildings, Equipment, Software, Leasehold Improvements, Automobiles, Buildings and Structures – Land, buildings, equipment, software, leasehold improvements, automobiles, buildings and structures are carried at historical cost, adjusted for impairment loss and accumulated depreciation (except for land). Historical costs include all direct costs associated with the acquisition of land, buildings, equipment, software, leasehold improvements, automobiles, buildings and structures and placing them in service. Upon sale or abandonment, the cost of the fixed asset(s) and related accumulated depreciation are removed from the accounts and any gain or loss is recognized.Depreciation of buildings, equipment, software, leasehold improvements, automobiles, buildings and structures is calculated using the straight-line method based upon the following estimated useful lives:Leasehold improvements3‑5 yearsOffice equipment and software3‑7 yearsEquipment5‑10 yearsAutomobiles4 yearsBuildings and structures7 yearsThe following table provides information on the Company's depreciation expense for the three months ended March 31, 2025 and 2024.For the Three Months EndedMarch 31, 2025March 31, 2024Depreciation$96,620 $101,937 

Notes Payable – At the end of May 2024, the Company renewed its control of well, general liability, pollution, umbrella, property, workers' compensation, auto, and D&O insurance policies, funding the premiums with a promissory note with a face value after down payments of $1,501,507. In November 2024, the Company renewed its cybersecurity insurance policy, and funded the premium with a promissory note with a face value after down payments of $58,773. The APR for both notes was 7.98%. As of March 31, 2025 and December 31, 2024, the notes payable balances included in current liabilities on the Condensed Balance Sheets were $0 and $496,397, respectively. 

14

The following table reflects the weighted average notes payable balances and the weighted average interest rate on the weighted average notes payable outstanding during the period as of and for the three months ended March 31, 2025 and 2024.Three Months Ended