Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 1146

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 1146
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 tax benefit primarily due to the release of the full valuation allowance recorded against deferred taxes in 2023.  Deferred income taxes are provided to reflect temporary differences in the tax basis of assets and liabilities and their reported amounts in the financial statements. The tax-effected temporary differences and net operating loss (“NOL”) carryforwards that comprise our deferred income as of December 31, 2024, and 2023 taxes are as follows (in thousands):   2024  2023      (As Restated) Deferred tax asset:      Net operating losses  19,470   31,168 Asset retirement obligations  1,566   610 Stock compensation  556   1,356 Right of use liability  56   82 Other  1   7 Deferred tax asset  21,649   33,223 Valuation allowance  -   (26,381)Deferred tax asset after valuation allowance  21,649   6,842          Deferred tax liabilities:                     Oil and gas properties   (8,843)    (6,754) Right of use asset  (55)  (87)Deferred tax liability  (8,898)  (6,842)         Net deferred tax asset / deferred tax liability   12,751   -  As of December 31, 2024, and 2023, the Company had deferred tax assets of $12.8 million and $26.4 million, respectively, upon which the Company had a valuation allowance of $0 and $26.4 million, respectively. The net change in the valuation allowance of $26.4 million is due to the release of the valuation allowance. As of December 31, 2024, the Company has federal net operating loss carryforwards of approximately $88.4 million, which if not utilized, approximately $10.6 million will begin expiring in 2025 and ending 2037, respectively.  The remaining net operating losses can be carried forward indefinitely and are subject to an 80% taxable income limitation. In assessing the realization of deferred tax assets, the Company considers whether it is more likely than not that some portion or all deferred assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences