Company: PED
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001654954-25-009652
Chunk: 10

Company: PEDEVCO CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 written off the outstanding balance of the Note as of June 30, 2025. Accordingly, a $1,267,000 bad debt expense has been recognized in the consolidated statements of operations for the three and six months ended June 30, 2025. However, the Company continues to consider avenues and remedies available to collect on all amounts due and owing to the Company from Tilloo. Additionally, the Company has fully written off post-closing adjustments receivable due from Tilloo related to the sale of EOR in the amount of $111,000. These write-offs reflect the Company's decision that the carrying value of the Note and post-closing adjustments receivable are no longer recoverable. Taken together, the Company recognized a total of $1,378,000 in bad note receivable - credit loss in the consolidated statements of operations for the three and six months ended June 30, 2025.

 10Table of Contents

NOTE 8 – ASSET RETIREMENT OBLIGATIONS Activity related to the Company’s asset retirement obligations is as follows (in thousands):   Six Months Ended June 30, 2025 Balance at the beginning of the period (1) $6,371 Accretion expense  369 Liabilities settled  (297)Disposition of liabilities  (505)Changes in estimates, net  119 Balance at end of period (2) $6,057  (1) Includes $663,000 of current asset retirement obligations at December 31, 2024.  (2) Includes $580,000 of current asset retirement obligations at June 30, 2025.  In New Mexico, the Company, through its New Mexico operating subsidiary Ridgeway Arizona Oil Corp. (“RAZO”), has entered into a Stipulated Final Order (“SFO”) with Director of the Oil and Gas Conservation Division of New Mexico (the “OCD”) pursuant to which, among other things, RAZO agreed to reimburse the OCD for actual costs incurred by the OCD for plugging and abandoning approximately 299 inactive legacy wells in the Permian Basin Asset at a rate of $2.00 per gross barrel of oil sold by RAZO during any production reporting period, subject to a minimum payment of $30,000 per month by RAZO. RAZO has been timely paying each reimbursement invoice received from the OCD in accordance with the SFO and is in full compliance with