Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 836

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 2
Chunk 836
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 295, 1211 Geneva 12, Switzerland. The purpose of the branch is to operate a foreign treasury center for the Company. As such, the Geneva branch is not expected to have taxable income in any future year.
    
   Reconciliation between the theoretical tax benefit on pre-tax reported (loss) and the actual income tax expense:

       Year ended    Year ended  
   December 31,    December 31,  
   2024    2023  
   US$    US$  
   thousands    thousands  
 Pre-tax loss as reported   (7,343)  (7,957)
         
 U.S. statutory tax rate   21%  21%
 Theoretical tax expense   (1,542)  (1,671)
         
 Increase in income tax expense resulting from:         
         
 Permanent differences   2   2 
 Change in valuation allowance   1,540   1,669 
 Income tax expense   -   - 

   The Company has no material unrecognized tax benefit which would favorably affect the effective income tax rate in future periods and does not believe there will be any significant increases or decreases within the next twelve months. No interest or penalties have been accrued.
    
   The Company has not received final tax assessments since incorporation. In accordance with the US tax regulations, the U.S. federal income tax returns remain subject to examination for the years beginning in 2021.
    
   The Israeli branch has not received final tax assessments since incorporation. In accordance with the Israeli tax regulations, tax returns submitted up to and including the 2019 tax year can be regarded as final.

        F-
       41

        Zion Oil & Gas, Inc.

        Notes to Consolidated Financial Statements

   Note 8 - Right of use leases assets and leases obligations 
    
   The Company is a lessee in several non-cancellable operating leases, primarily for transportation and office space.
    
   The table below presents the operating lease assets and liabilities recognized on the balance sheets as of  December 31, 2024 and 2023: 

       December 31,    December 31,  
   2024    2023  
   US$    US$  
   thousands    thousands  
 Operating lease assets  $759  $194 
         
 Operating lease liabilities: