Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 98

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 98
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 after down payments of $58,773. The APR for both notes was 7.98%.At the end of May 2023, the Company renewed its control of well, general liability, pollution, umbrella, property, workers' compensation, auto, and D&O (directors and officers) insurance policies, and funded the premiums with a promissory note with a total face value after down payments of $1,565,071. In November 2023, the Company renewed its cybersecurity insurance policy, and funded the premium with a promissory note with a total face value after down payments of $72,442. The annual percentage rate (APR) for both notes was 7.08%. As of December 31, 2024 and 2023, the notes payable balances included within current liabilities on the balance sheets were $496,397 and $533,734, respectively. The following table reflects the weighted average notes payable balances and the weighted average interest rate on the weighted average notes payable outstanding during the period as of and for the years ended December 31, 2024, 2023, and 2022.For the Years Ended December 31,202420232022Weighted average notes payable balance$651,789 $687,456 $593,766 Weighted average interest rate on weighted average notes payable8.63 %7.23 %4.31 %The following table shows interest paid related to notes payable for the years ended December 31, 2024, 2023, and 2022. This interest is  included within "Interest (expense)" in the Statements of Operations. For the Years Ended December 31,202420232022Interest paid for notes payable$56,261 $49,734 $25,579 

Revenue Recognition – In January 2018, the Company adopted Accounting Standards Update (“ASU”) 2014-09 Revenues from Contracts with Customers (Topic 606) (“ASU 2014-09”). The timing of recognizing revenue from the sale of produced crude oil and natural gas was not changed as a result of adopting ASU 2014-09. The Company predominantly derives its revenue from the sale of produced crude oil and natural gas. The contractual performance obligation is satisfied when the product is delivered to the purchaser. Revenue is recorded in the month the product is delivered to the purchaser. The Company receives payment from one to three months after delivery. The transaction price includes variable consideration