Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 115

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 the Company does not intend to continue to lease this equipment for more than 12 months. The lease costs associated with these leases is reflected in the short-term lease costs within Lease operating expenses, shown below.The Company has financing leases for vehicles. These leases have an initial term of 36 months at the end of which the Company owns the vehicles. These vehicles are generally sold at the end of their term and the proceeds are settled in cash or applied to a new vehicle.Future lease payments associated with these operating and financing leases as of March 31, 2025 are as follows:20252026202720282029Other Future YearsTotalOperating lease payments (1)$547,077 $636,649 $460,497 $250,606 $149,628 $— $2,044,457 Financing lease payments (2)749,113 647,580 262,333 17,609 — — 1,676,635 (1)The weighted average annual discount rate as of March 31, 2025 for operating leases was 4.50%. Based on this rate, the future lease payments above include imputed interest of $148,280. The weighted average remaining term of operating leases was 3.25 years.(2)The weighted average annual discount rate as of March 31, 2025 for financing leases was 7.45%. Based on this rate, the future lease payments above include imputed interest of $121,951. The weighted average remaining term of financing leases was 1.87 years. The following table represents a reconciliation between the undiscounted future cash flows in the table above and the operating and financing lease liabilities disclosed in the Condensed Balance Sheets:

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As ofMarch 31, 2025December 31, 2024Operating lease liability, current portion$661,487 $648,204 Operating lease liability, non-current portion1,234,690 1,405,837 Operating lease liability, total$1,896,177 $2,054,041 Total undiscounted future cash flows (sum of future operating lease payments)2,044,457 2,224,840 Imputed interest148,280 170,799 Undiscounted future cash flows less imputed interest$1,896,177 $2,054,041 Financing lease liability, current portion$846,380 $906,119 Financing lease liability