Company: PED
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013092
Chunk: 50

Company: PEDEVCO CORP
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 (deduct)                Interest expense  102   -   102   - Income tax benefit  (164)  -   (578)  - Depreciation, depletion, amortization and accretion  4,010   3,055   11,213   10,782 EBITDA  3,623   5,970   8,876   17,151 Add (deduct)                Share-based compensation  537   464   1,486   1,401 Impairment of oil and gas properties  165   -   907   - Gain on sale of oil and gas properties  -   (735)  (1,021)  (735)Gain on sale of fixed asset  -   -   -   (12)Note receivable – credit loss  -   -   1,378   - Adjusted EBITDA $4,325  $5,699  $11,626  $17,805 

Critical Accounting Estimates

Our discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our most significant judgments and estimates used in preparation of our consolidated financial statements.

 36Table of Contents

Oil and Gas Properties, Successful Efforts Method. The successful efforts method of accounting is used for oil and gas exploration and production activities. Under this method, all costs for development wells, support equipment and facilities, and proved mineral interests in oil and gas properties are capitalized. Geological and geophysical costs are expensed when incurred. Costs of exploratory wells are capitalized as exploration and evaluation assets pending determination of whether the wells find proved oil and gas reserves. Proved oil and gas reserves are the estimated quantities of crude oil and natural gas