Company: ZNOG
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001437749-25-009623
Chunk: 603

Company: ZION OIL & GAS INC
Filing Date: 2025-03-27
Form: 10-K
Item: Item 3
Chunk 603
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 interest at the rate of 12.9% per annum, are due each month for 11 months commencing on  December 16, 2024. As of  December 31, 2024, the outstanding balance was approximately $51.000. This policy was capitalized under Unproved Oil and Gas asset.
    
   Effective  December 3, 2024 the Company renewed its Control of well (“COW”) insurance policy in Israel with total premiums, taxes and fees for approximately $84,000. A cash payment of approximately $84,000 was paid on  December 3, 2024. This policy was capitalized under Unproved Oil and Gas asset.
    
   Effective  December 28, 2024, the Company renewed its D&O insurance policy with total premiums, taxes and fees for approximately $430,000. A cash down payment of approximately $41,000 was paid on  January 2, 2025. Under the terms of the insurance financing, payments of approximately $39,000, which include interest at the rate of 12.9% per annum, are due each month for 10 months commencing on  January 28, 2025. As of  December 31, 2024, the outstanding balance was approximately $430.000.
    
   As of  December 31, 2024 and 2023, the Company had contractual obligations to pay for various lines of insurance, including directors and officers, rig and third party liability. The balances for insurance financing were $490,000 and $432,000, respectively.
    
   H. Bank Guarantees
    
   As of  December 31, 2024, the Company provided Israeli-required bank guarantees to various governmental bodies (approximately $972,000) and others (approximately $93,000) with respect to its drilling operation in an aggregate amount of approximately $1,065,000. The (cash) funds backing these guarantees are held in restricted interest-bearing accounts and are reported on the Company’s balance sheets as cash and cash equivalent – restricted.
    
   I. Vendor concentration
    
   The Company’s financial instruments that are exposed to a concentration of credit risk are accounts payable. There are three suppliers in 2024 and three suppliers in 2023 that represent 10% or more of the Company’s accounts payable outstanding balance, respectively.
    
   J. Recent Market Conditions – Coronavirus, Israel