Company: PED
Filing Date: 2025-10-29
Form Type: 10-K/A
Source: 0001654954-25-012328
Chunk: 164

Company: PEDEVCO CORP
Filing Date: 2025-10-29
Form: 10-K/A
Chunk 164
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 resources, and assessing operating performance. The Company operates in one reportable operating segment, oil and natural gas development, exploration and production. The Company’s oil and gas properties are managed as a whole rather than through discrete operating segments. Financial and operational information is tracked by geographic area; however, financial performance is assessed as a single enterprise and not on a geographic basis. Allocation of resources is made on a project basis across the Company’s entire portfolio without regard to geographic area, and considers among other things, return on investment, current market conditions, including commodity prices and market supply, availability of services and human resources, and contractual commitments. The Company’s Chief Executive Officer is its CODM.

The Company’s profitability measure is consolidated net income which is used to assess budgeted versus actual results and drives the Company’s operating cash flow. The CODM reviews significant consolidated forecasts and results of operations, including return on capital, operating expenses, and cash flow when making decisions such as the allocation of capital. The financial position, results of operations and cash flows of the Company’s reportable operating segment are consistent with the Company’s consolidated financial statements included herein.

NOTE 16 – SUBSEQUENT EVENTS

On January 23, 2025, the Company granted options to purchase an aggregate of shares of common stock to various Company employees at an exercise price of $ per share under the Company’s 2021 Plan. The options have a term of five years and fully vest in November 2027, , contingent upon the recipient’s continued service with the Company. The aggregate fair value of the options on the date of grant, using the Black-Scholes model, was $. Variables used in the Black-Scholes option-pricing model for the options issued include: (1) a discount rate of % based on the applicable US Treasury bill rate, (2) expected term of years, (3) expected volatility of % based on the trading history of the Company, and (4) zero expected dividends.

Additionally, on January 23, 2025, restricted stock awards were granted to officers and employees of the Company for an aggregate of shares of the Company’s restricted common stock, under the Company’s 2021 Plan. The grant for the shares of restricted common stock vest as follows: , contingent upon the recipient’s continued service with the Company. These shares have a total fair value of $ based on the market price on the grant date.

In addition, on January 23, 2025, after recommendation by the Compensation Committee of the Company’s Board of