Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 2339

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 2339
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, 2023. The depletion recorded for production on proved properties for the year ended December 31, 2024 and 2023, amounted to $14,911,000 and $8,830,000, respectively.

NOTE 8 – NOTE RECEIVABLE On November 9, 2023, in accordance with the sale of our wholly-owned subsidiary EOR to Tilloo (see Note 6 above), the Company entered into a five-year secured promissory note (the “Note”) with Tilloo, bearing interest at 10% per annum, with no payments due until January 8, 2025, and fully-amortized payments due monthly over the remaining four years of the term thereafter until maturity. The Note contains customary events of default and is secured by a lien over all the assets and capital shares of EOR created under a Security Agreement, a Security Agreement (Pledge of Corporate Securities), and a Mortgage entered into by and between the Company and Tilloo. As of December 31, 2024, the Company recognized $293,000 of the Note in Current Assets, with the remaining balance of $933,000 (including $104,000 of accrued interest) in Other Assets on the Company’s balance sheet.

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Tilloo failed to make the initial installment payment due under the Tilloo Note on January 8, 2025. The Company issued a notice of default under the Note to Tilloo in mid-January 2025, and the Company intends to pursue all available avenues and remedies, including potential foreclosure under the security agreement and mortgages securing the secured obligation, to resolve these matters. Tilloo may not timely pay the Note when due, if at all. However, as the Tilloo Note is fully-secured, the Company believes that should it pursue foreclosure under the security agreement and mortgages, that it would ultimately be made whole, so no reserve allowance is required as of December 31, 2024. 

NOTE 9 – ASSET RETIREMENT OBLIGATION Activity related to the Company’s asset retirement obligations is as follows for the year ended December 31, 2024 (in thousands):   2024 Balance at the beginning of the period (1) $2,313 Accretion expense  965 Disposition of liabilities  (160)Liabilities settled  (248)Changes in estimates  3,501 Balance at end