Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 227

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 9
Chunk 227
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 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:         
 Current operating lease liabilities  $107  $167 
 Non-current operating lease liabilities  $637  $24 
 Total operating lease liabilities  $744  $191 

   The depreciable lives of operating lease assets and leasehold improvements are limited by the expected lease term.
    
   The Company’s leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used incremental borrowing rates as of  January 1, 2019 for operating leases that commenced prior to that date.
    
   The Company’s field office in Caesarea, Israel is under lease