Epsilon Energy Ltd.
For the period ended Mar 31, 2025. Filed May 14, 2025.
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Mar 31, 2025 · Filed May 14, 2025
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12. Leases
Under ASC 842, Leases, the Company recognized an operating lease related to its corporate office as of March 31, 2025 and December 31, 2024 as summarized in the following table:
| | | | | | | |
|---|---|---|---|---|---|---|
| · March 31, · December 31, | ||||||
| · · 2025 · · 2024 | ||||||
| Asset | | | | | | |
| Operating lease right-of-use assets, long term | | $318,604 | | $344,589 | ||
| Total operating lease right-of-use assets | | $318,604 | | $441,987 | ||
| | | | | | | |
| Liabilities | | | | | | |
| Operating lease liabilities | | $121,293 | | $121,135 | ||
| Operating lease liabilities, long term | | | 326,527 | | | 355,776 |
| Total operating lease liabilities | | $447,820 | | $476,911 | ||
| | | | | | | |
| Operating lease costs | | $60,349 | | $236,044 | ||
| | | | | | | |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | |
| Operating cash flows from operating leases | | $84,906 | | $214,230 | ||
| Weighted average remaining lease term (years) - operating lease | | | 2.40 | | | 2.50 |
| Weighted average discount rate (annualized) - operating lease | | | 8.25% | | | 8.25% |
On March 1, 2023, the Company commenced a new office lease with a 70 month lease term and future lease payments estimated to be approximately $0.85 million. There are no other pending leases, and no lease arrangements in which the Company is the lessor. Lease expense for operating leases was $0.06 million and $0.24 million for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively. This lease expense is presented in other general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income.
Future minimum lease payments as of March 31, 2025 are as follows:
| | | | |
|---|---|---|---|
| · · Operating Leases | |||
| 2025 | | $130,162 | |
| 2026 | | | 177,021 |
| 2027 | | | 180,492 |
| 2028 | | | 183,963 |
| Total minimum lease payments | | | 671,638 |
| Less: imputed interest | | | (223,818) |
| Present value of future minimum lease payments | | | 447,820 |
| Less: current obligations under leases | | | (121,293) |
| Long-term lease obligations | | $326,527 | |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.