Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 1220

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1B
Chunk 1220
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 order) to plug additional wells over the next several years, which increased accretion expense in Q4 2024 by approximately $0.4 million.

 79Table of Contents

General and Administrative Expenses (excluding share-based compensation). The increase of $0.6 million in general and administrative expenses (excluding share-based compensation) was primarily due to increased contract and full time staff related to increased activity, an increase in accrued bonuses, which were subsequently paid in January 2025, software licensing fees and general increases in accounting and professional services when comparing the prior period to the current period.

Share-Based Compensation. Share-based compensation, which is included in general and administrative expenses in the Statements of Operations, decreased nominally due to the forfeiture of certain employee stock-based options due to certain voluntary employee terminations. Share-based compensation is utilized for the purpose of conserving cash resources for use in field development activities and operations.

Loss on Sale of Oil and Gas Properties, net. The Company completed three oil and gas property sales transactions during the year ended December 31, 2024, for a total net loss on the sale of oil and gas properties of $76,000, as follows:  (i) the Company sold 30 gross (5.1 net) non-operated legacy well-bores in its D-J Basin Asset for net cash proceeds of $90,000 during 2024, resulting in the Company recognizing a loss on sale of oil and gas properties of $865,000 for these non-core assets, while noting.  the Company still retained the corresponding acreage related to the sale for any potential future development; (ii) the Company sold a legacy well-bore assignment for net cash proceeds of $25,000 and recognized a gain on sale of oil and gas properties of $29,000; and (iii)  the Company sold leasehold rights to 320 net acres located in the D-J Basin for net cash proceeds of $750,000 and recognized a corresponding gain on sale of oil and gas properties of $735,000, as the leasehold costs had been fully depleted. In the prior period, the Company sold its then-wholly-owned subsidiary EOR Operating Company and related assets in the November 2023 Milnesand Sale and recognized the corresponding loss of $4.3 million. (see “Item 8. Financial Statements and Supplementary Data” - “Note 7 - Oil and Gas Properties”).

Interest Income and Other (Expense) Income. Includes interest earned from our interest-bearing cash accounts