Company: REI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-023254
Chunk: 98

Company: RING ENERGY, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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926,520 Cash paid (refunded) for income taxes(72,213)— Noncash Investing and Financing ActivitiesAsset retirement obligation incurred during development$16,867 $168,848 Asset retirement obligation acquired2,587,179 — Financing lease assets obtained in exchange for new financing lease liability, net (1)269,498 254,855 Change in capitalized expenditures attributable to drilling projects financed through current liabilities714,648 (3,120,789)Lime Rock Acquisition Supplemental ScheduleInvesting Activities - Cash PaidCash paid to Lime Rock on closing$63,599,939 $— Escrow deposit released at closing5,000,000 — Direct transaction costs2,294,105 — Cash paid for fixed assets acquired(34,275)— Payments for the Lime Rock Acquisition$70,859,769 $— Investing Activities - NoncashAssumption of suspense liability$561,977 $— Assumption of asset retirement obligation2,587,179 — Deferred cash payment at fair value9,415,066 — Financing Activities - NoncashCommon stock issued for acquisition$7,420,811 $— 

(1) Included within the financing lease assets obtained in exchange for new financing lease liability, net is  $37,381 of finance lease asset terminations for the three months ended March 31, 2025.

The accompanying notes are an integral part of these unaudited condensed financial statements.

10

Table of Contents

RING ENERGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

Index to the Notes to the Condensed Financial StatementsNote 1 — Basis of Presentation & Significant Accounting PoliciesNote 8 — Revolving Line of CreditNote 2 — Revenue RecognitionNote 9 — Asset Retirement ObligationNote 3 — LeasesNote 10 — Stockholders' EquityNote 4 — Earnings Per Share InformationNote 11 — Employee Stock Options and Restricted Stock UnitsNote 5 — Acquisitions and DivestituresNote 12 — Commitments and ContingenciesNote 6 — Derivative Financial InstrumentsNote 13 — Subsequent EventsNote 7 — Fair Value Measurements

NOTE 1 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Condensed Financial Statements – The accompanying condensed financial statements prepared by Ring Energy, Inc., a Nevada corporation (the “Company,” "Ring Energy," “Ring