Company: PED
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013092
Chunk: 77

Company: PEDEVCO CORP
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 been eliminated in consolidation. The Company’s future financial condition and liquidity will be impacted by, among other factors, the success of our drilling program, the number of commercially viable oil and natural gas discoveries made and the quantities of oil and natural gas discovered, the speed with which we can bring such discoveries to production, the actual cost of exploration, appraisal and development of our prospects, and the prevailing prices and demand for oil and natural gas. In connection with the preparation of the Company’s Consolidated Financial Statements as of and for the interim period ended September 30, 2025,  the Company discovered that it had not accurately calculated the income tax benefit upon release of its existing valuation against net deferred assets as of December 31, 2024. The error resulted in an overstatement of its tax benefit and deferred income taxes asset account of approximately $5,496,000 as of December 31, 2024. The error was primarily the result of the Company not appropriately applying an excess amount of prior period net operating losses (“NOLs”) in the tax benefit calculation. The error did not impact total revenue, cash flow from operations and cash balances for the fiscal year ended December 31, 2024. The consolidated balance sheet as of September 30, 2025 reflects the amounts from the December 31, 2024 consolidated financial statements that were corrected and restated based on the following (in thousands):    As of December 31, 2024 CORRECTED CONSOLIDATED BALANCE SHEET  As Previously Reported   Impact of Adjustment  As Restated Deferred income taxes $12,751  $(5,496) $7,255 Total assets  133,845   (5,496)  128,349 Accumulated deficit  (106,002)  (5,496)  (111,498)Total shareholders’ equity  121,100   (5,496)  115,604 Total liabilities and shareholders’ equity  133,845   (5,496)  128,349 

NOTE 2 – DESCRIPTION OF BUSINESS PEDEVCO is an oil and gas company focused on the development, acquisition and production of oil and natural gas assets where the latest in modern drilling and completion techniques and technologies have yet to be applied. In particular, the Company focuses on legacy proven properties where there is a long production history, well defined geology