Company: REI
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0001628280-25-010585
Chunk: 110

Company: RING ENERGY, INC.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 110
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 in the future lease payments schedule below. The Company has month to month leases for office equipment and compressors used in its operations on which the Company has elected to apply ASU 2016-02 (i.e. to not capitalize). The office equipment and compressors are not subject to ASU 2016-02 based on the agreement and nature of use. These leases are for terms that are less than 12 months and 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 applied to a new vehicle.Future lease payments associated with these operating and financing leases as of December 31, 2024 are as follows:20252026202720282029ThereafterTotalOperating lease payments (1)$727,460 $636,649 $460,497 $250,606 $149,628 $— $2,224,840 Financing lease payments (2)986,950 533,030 147,783 — — — 1,667,763 (1)The weighted average annual discount rate as of December 31, 2024 for operating leases was 4.50%. Based on this rate, the future lease payments above include imputed interest of $170,799. The weighted average remaining term of operating leases was 3.45 years.(2)The weighted average annual discount rate as of December 31, 2024 for financing leases was 7.31%. Based on this rate, the future lease payments above include imputed interest of $114,566. The weighted average remaining term of financing leases was 1.85 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 Balance Sheets:

F-19

As of December 31, 20242023Operating lease liability, current portion648,204 568,176 Operating lease liability, non-current portion1,405,837 2,054,041 Operating lease liability, total2,054,041 2,622,217 Total undiscounted future cash flows (sum of future operating lease payments)