Epsilon Energy Ltd
For the period ended Jun 30, 2024. Filed Aug 13, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 13, 2024
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3. Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents include cash on hand and short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Restricted cash consists of amounts deposited to back bonds or letters of credit for potential well liabilities. The Company presents restricted cash with cash and cash equivalents in the Consolidated Statements of Cash Flows.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts in the Consolidated Statements of Cash Flows as of June 30, 2024 and December, 31 2023:
| | | | | | | |
|---|---|---|---|---|---|---|
| · June 30, · December 31, | ||||||
| · · 2024 · · 2023 | ||||||
| Cash and cash equivalents | | $8,581,484 | | $13,403,628 | ||
| Restricted cash included in other assets | | | 900,000 | | | 470,000 |
| Cash, cash equivalents, and restricted cash in the statement of cash flows | | $9,481,484 | | $13,873,628 | ||
During the six months ended June 30, 2024, the Company was in the process of transitioning financial institutions for its Letters of Credit (“LOCs”) tied to various bonds associated with Pennsylvania and New York operatorship. The transition caused a temporary increase in restricted cash until the new LOCs are deemed effective and until the previous LOCs can be canceled.
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