Company: PED
Filing Date: 2025-10-29
Form Type: 10-K/A
Source: 0001654954-25-012328
Chunk: 163

Company: PEDEVCO CORP
Filing Date: 2025-10-29
Form: 10-K/A
Chunk 163
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 deferred tax assets of $ million and $ million, respectively, upon which the Company had a valuation allowance of $ and $ million, respectively. The net change in the valuation allowance of $ 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 $ million, which if not utilized, approximately $ 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 % 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 become deductible.

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Utilization of NOL and tax credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by the Internal Revenue Code (the “Code”), as amended, as well as similar state provisions. In general, an “ownership change” as defined by the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percent of the outstanding stock of a company by certain shareholders or public groups.

Based on the available objective evidence, the Company believes it is more likely than not that the net deferred tax assets will be fully realizable based on the Company's ability to generate income in future periods. Accordingly, the Company recorded no valuation allowance against its net deferred tax assets on December 31, 2024.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of December 31, 2024, and 2023, the Company did not have any significant uncertain tax positions or unrecognized tax benefits. The Company did not have associated accrued interest or penalties, nor was any interest expense or penalties recognized for the years ended December 31, 2023, and 2022.

The Company currently has tax returns open for examination by the Internal Revenue Service for all years, since 2019.

NOTE 15 — SEGMENT INFORMATION

Operating segments are defined as components of an enterprise for which separate financial information is available and regularly evaluated by the Chief Operating Decision Maker (“CODM”) for the purpose of making key operating decisions, allocating