Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 317

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9A
Chunk 317
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 sum of the 39 payments, lease signing bonuses provided an initial $1,500 reduction of the lease cost on  November 14, 2023. The value at the end of the lease has a residual value of $14,011.40 per the terms of the lease agreement. Additionally, the Company must pay the Lessor $.25 cents per mile for each mile in excess of 20,000 annual miles. This lease is treated as an operating lease.
    
   At  December 31, 2024, and continuing through the date of this Form 10-K report, all payments have been paid on time to the Lessor, and the Company is in good standing with regard to this lease agreement.
    
   (iv) The Company’s field office in Caesarea, Israel is under lease for 6,566 square feet.
    
   The Company had an option to renew the lease for another five years from  February 1, 2024 to  January 31, 2029, provided it is not in breach of the agreement, where it is required as well to furnish a notice of intent to exercise the option six months prior to termination of lease, and it furnishes a bank guarantee and insurance confirmation prior to commencement of the option period. The Company exercised its option to renew the lease for another seven years from  February 1, 2024 through  January 31, 2031, when rent is to be paid on a monthly basis in the base amount of approximately NIS 46,500 per month (approximately $12,800) at the exchange rate in effect on the date of this report and is linked to an increase (but not a decrease) in the CPI.
    
   Under the lease agreement, the Company is authorized to further sublease part of the leased premises to a third party that is pre-approved by the sub-lessor. Rent and its related taxes, utilities, insurance and maintenance expenses for 2024 and 2023 were $397,000 and 400,000 respectively.

        F-
       44

        Zion Oil & Gas, Inc.

        Notes to Consolidated Financial Statements

   Note 9 - Commitments and Contingencies (cont’d)
    
   The future minimum lease payments as of  December 31, 2024, are as follows:

       US$  
   thousands  
 2025   157 
 2026   157 
 2027