Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 102

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 the Company's ownership entitles it to sell. Liabilities are recorded for imbalances greater than the Company’s proportionate share of remaining estimated natural gas reserves. The Company recorded no imbalances as of March 31, 2025 or December 31, 2024.

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Joint interest billing receivables, net – The Company also has joint interest billing receivables. Joint interest billing receivables are collateralized by the pro rata revenue attributable to the joint interest holders and further by the interest itself. Receivables from joint interest owners outstanding longer than the contractual payment terms are considered past due. The following table indicates the Company's provisions for credit loss expense associated with its joint interest billing receivables during the three months ended March 31, 2025 and March 31, 2024.For the Three Months EndedMarch 31, 2025March 31, 2024Credit loss expense$17,917 $163,840 The following table reflects the Company's joint interest billing receivables and allowance for credit losses as of March 31, 2025 and December 31, 2024. March 31, 2025December 31, 2024Joint interest billing receivables$2,320,685 $1,264,897 Allowance for credit losses(199,650)(181,733)Joint interest billing receivables, net$2,121,035 $1,083,164 The increase of $17,917 in the allowance for credit losses during the three months ended March 31, 2025 was for owner settlements considered uncollectible with no offsetting revenues held in suspense.

Cash and Cash Equivalents – The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At March 31, 2025 and December 31, 2024, the Company had no such investments.

Inventory – The full balance of the Company's inventory consists of materials and supplies for its operations, with no work in process or finished goods inventory balances. Inventory is added to the books upon the purchase of supplies (inclusive of freight and sales tax costs) to use on well sites, and inventory is reduced by material transfers for inventory usage based on the initial invoiced value. The Company reports the balance of its inventory at the lower of cost or net realizable value. Inventory balances are excluded from the Company's calculation of depletion.

Oil and Natural Gas Properties – The Company